Overview 

Aceh Timur is home to parts of the Gunung Leuser National Park, a UNESCO-recognized ecosystem and biodiversity hotspot. The district boosts significant natural lowland and tropical peatland forest. It is also a critical habitat for highly charismatic megafauna, such as Sumatran orangutans, Sumatran elephants, and rhinos. The district has 546,000 hectares of natural forest cover. The wider Aceh Province has around 3 million hectares of forest, equating to 55% natural forest cover.   

Aceh Timur makes a significant contribution to Indonesia's agricultural production, primarily through palm oil and rice cultivation.  Palm oil is a critical commodity for regional revenue and livelihood, and rice supports food security. Natural rubber and cocoa are also important products. The largest type of plantation area in Aceh Timur is oil palm, spanning 68,127 hectares and covering 13% of land area. Palm oil expansion poses a significant deforestation threat to Aceh Timur. The Aceh Sustainable Palm Oil Roadmap, a provincial policy framework, aims to achieve a deforestation-free supply chain.  

About NISCOPS 

The National Initiative for Sustainable and Climate Smart Oil Palm Smallholders (NISCOPS) - a partnership between IDH and Solidaridad - brings together key stakeholders to sustainably manage the landscape.  The program supports smallholders to implement climate-smart agriculture - improving livelihoods, reducing greenhouse gas emissions from deforestation, and boosting climate change resilience.   

In Indonesia the program aims to create deforestation-free and inclusive palm oil supply chains - safeguarding the integrity of the world-acclaimed Leuser ecosystem while supporting sustainable development. 

Climate change and deforestation 

Forests in the landscape play a crucial role in carbon storage and climate regulation. Palm oil expansion in the district poses an increased threat of climate change and deforestation. The wider Aceh province is estimated to have lost just under 9,000 hectares of forest in 2023 whilst Aceh Timur lost 611 hectares during the same year.  Deforestation in the district increased significantly in 2024, with a total of 1.1kha hectares of forest loss, releasing significant amounts of CO2. Much of the deforestation is potentially linked to palm oil expansion by both concession and smallholders. Although these areas are legally permitted for development, many concessions contain High Conservation Value (HCV) areas. The Green Growth Plan is developing a policy framework to protect HCV areas.  The goal is to reduce deforestation rates in Aceh Timur by 30%. A deforestation monitoring and verification team has been established in the landscape. 

Sustainable land management 

Without intervention, deforestation could potentially escalate, driven by land clearing activities in twelve existing oil palm concessions near the Leuser Ecosystem. Many of these are not certified under the Roundtable on Sustainable Palm Oil (RSPO) scheme and many lack strong No Deforestation, No Development on Peat, No Exploitation (NDPE) commitments, exacerbating the deforestation challenges. 

NISCOPS aims to increase the productivity of oil palm plants and implement NDPE principles in the supply chain. A buffer zone management model is being developed to increase forest protection and regeneration, promote sustainable palm oil sourcing and improve livelihoods. The program aims to restore 1,000 hectares of forest through the enrichment of community-based native tree species and natural regeneration.  Engagement with oil palm estates and palm oil mills at high deforestation risk is ongoing.  

Improving livelihoods 

NISCOPS aims to integrate smallholders into a deforestation-free sustainable palm oil supply chain, whilst bridging the gap towards a living income. In 2024 smallholder farmers benefitted from training in Good Agricultural Practice (GAP) and were provided with access to finance, certification and markets, particularly in remote areas. Public-private partnerships, working with government, business and smallholders, support local farmers to achieve Roundtable on Sustainable Palm Oil (RSPO) and Indonesian Sustainable Palm Oil (ISPO) certification. These capacity-building activities help to improve smallholder productivity and harvest quality, whilst cutting production costs. . 

Summary of achievements 

All countries in the NISCOPS program report against three global impact areas: Improved Land Use, Better Incomes and Inclusive Markets.