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Handing Over of East Kutai Regent Decree on the Clustering of Oil Palm Plasma Estates for Smallholders

Posted: Feb 23, 2018 4 minute read SMART 246 views
  • This is the first pilot project on clustering of oil palm plantation plasma estates carried out with 12 cooperatives which team up with Sinar Mas Agribusiness and Food
  • Two smallholders-plasma cooperatives in Kalimantan managed to get their first ISPO certifications

East Kutai, February 23, 2018 – East Kutai Regent of East Kalimantan Province, Ismunandar handed over the Decree on the Clustering of Plasma Estates under partnership with Sinar Mas Agribusiness and Food which cover a total area of more than 7,726 hectares. This Decree divides areas under partnership with the Company into several quarters, in accord with the Minister of Agriculture Regulation No. 98/2013 requiring that plantation companies with an area of ≥ 250 hectares facilitate plantation estate development for the community.

Sinar Mas’ clustering of oil palm plantation plasma estates in East Kutai Regency represents a pilot project in setting up independent smallholdings regimentation as well as fulfilling the commitment to purchase fresh fruit bunches (FFBs) with permanent deals in East Kalimantan Province.

The CEO of Sinar Mas Agribusiness and Food for East Kalimantan Plantation, Suryanto Bun commented: “We welcome the issuance of the Bupati’s Decree on the clustering of oil palm plantation plasma estates. We believe this partnership will have tangible, positive impacts on the society. The partnership dated back to 2011 when we set out with a special unit within the Company’s structure. Such team made sure that the partnership programme worked well and now the partnership is already bearing visible fruits.”

The Bupati’s decree was handed over to Sinar Mas Agribusiness and Food for its 12 partner cooperatives on Thursday (22/2) before the Ministry of Agriculture’s Director General of Plantation Bambang, the Deputy Coordinating Minister of Economic Affairs for Coordination of Food and Agriculture Issues Musdhalifah Machmud, the Ministry of Agriculture’s Director of Perennial Plants Irmijati Nurbahar, the Head of the Indonesia Sustainable Palm Oil (ISPO) Secretariat Aziz Hidayat, East Kutai Regency Leaders Council (Muspika), local sub-district head, village heads, field agricultural extension officers, cooperative boards and farmers’ representatives as well as the President Director of Sinar Mas Agribusiness and Food Daud Dharsono accompanied by CEO Suryanto Bun.

By the end of 2017, Sinar Mas Agribusiness and Food Plantation of East Kalimantan had provided guidance for development of oil palm plantation plasma estates with a total area exceeding 6,880 hectares. In addition, the Company oversees independent plasma estates of more than 7,726 hectares, bringing the total plantation area to more than 14,600 hectares.

“Under an integrated partnership programme, the Company provides on-farm facilitation through ensuring guidance and mentoring by expert staff and on FFB processing; ensuring supplies of high quality seeds, fertiliser and herbicide; promoting mechanisation in estate management activities and ensuring sustainable palm oil management,” added Suryanto.

Further, independent smallholders are encouraged to engage in good and sustainable agronomic practices. This aligns with the Company’s commitment and principles of sustainability, one of them being to ensure agronomic practices that adhere to the ISPO standard criteria. Currently, two cooperatives under the Company’s guidance, i.e. Jasa Mutiara Kongbeng Cooperative managing an area of 623.51 hectares and Prima Pantun Cooperative having an area of 191.38 hectares, managed to pass the ISPO audit processes. These two cooperatives are the first independent plasma cooperatives that have secured ISPO certificates in Kalimantan region.

On the same occasion, the first harvest of independent oil palm plantation plasma estates owned by farmers in the village of Sri Pantun took place. This first harvest event was carried out together with the Ministry of Agriculture’s Director General of Plantation, the Deputy Coordinating Minister of Economic Affairs for Coordination of Food and Agriculture Issues, the Ministry of Agriculture’s Director of Perennial Plants, the Executive Director of the Plantation Fund Management Agency for Palm Oil (BPDP-KS), the President Director of Sinar Mas Agribusiness and Food and the CEO of Sinar Mas Agribusiness and Food Plantation of East Kalimantan Area.

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About Sinar Mas Agribusiness and Food

Sinar Mas Agribusiness and Food which operates under Golden-Agri Resources (GAR) is one of the leading palm oil plantation companies with a planted area of more than 486,000 hectares (including smallholders) as of 30 June 2017. The company has an integrated operation producing food made from raw vegetable oils.

Sinar Mas Agribusiness and Food is focused on sustainable palm oil production. In Indonesia, its primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil (CPO) and palm kernel; merchandising and refining CPO into value-added products such as cooking oil, margarine, shortening and biodiesel; as well as trading of palm oil products worldwide. It also has operations in China and India including a deep-sea port, oilseeds crushing plants, production capabilities for refined edible oil products as well as other food products such as noodles.

Founded in 1996, GAR was listed on the Singapore Exchange in 1999 with a market capitalisation of US$3.4 billion as at 30 June 2017. Flambo International Limited, an investment company, is currently GAR’s largest shareholder, with a 50.35 percent stake. GAR has several subsidiaries, including PT SMART Tbk which was listed on the Indonesia Stock Exchange in 1992.

For more information, please contact:
Wulan Suling
Head of Media & Event
[email protected] | +62 818 909 900

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