Medan, Indonesia 20 June 2019 – Sinar Mas Agribusiness and Food is holding the fourth of eight Ksatria Sawit workshops, today in Medan, Indonesia, as part of company’s commitment to help its suppliers become more successful and sustainable palm oil producers.
Some 30 suppliers and dealers are expected to attend the workshop in Medan, which is the latest in a series being held across Sumatra. Workshops have already been held in Riau and Lampung, and are planned for Aceh, Jambi, North Sumatra and Bangka this year.
With a focus on how suppliers can achieve traceability to plantation (TTP) – a key plank in Sinar Mas Agribusiness and Food’s sustainability policy – the workshops aim to educate suppliers on the purpose of traceability, how to conduct traceability within their own operations and how to use the information gathered to improve their production practices to meet domestic and international market expectations.
Aptly named Kstaria Sawit (“palm oil warrior” in English), the name also stands for Kemamputelusuran Sawit Awal Transformasi Rantai pasok Independent (Petani Independen) dan Agen Sawit.
“We wanted a name that would inspire action and encourage our suppliers to work with us to stand up for the industry and demonstrate that Indonesian palm oil can be sustainably produced,” said Daniel Prakarsa, Head of Downstream Sustainability Implementation.
Sinar Mas Agribusiness and Food is committed through its sustainability policy to achieving 100 percent traceability to plantation (TTP) by 2020. Already the company, with the participation of suppliers, has achieved 62 percent TTP, and it aims to hit 85 percent by the end of the year.
The company believes traceability is an essential first step to engage suppliers in the transformation process. Supply chain mapping partner, and Indonesian enterprise, Koltiva, is supporting the workshops designed to educate suppliers and dealers in the process.
Sinar Mas Agribusiness and Food will also share its best practices and experience with suppliers to help create a more responsible and resilient industry.
“We’ve been working to create a traceable and sustainably managed supply chain over the last four years, starting with traceability to the mill and now moving to the farm level so we can map our fresh fruit bunch supply to origin,” Daniel Prakarsa continued.
In doing so, The Company has also identified capacity building, training and other support needs of our suppliers and are working with them to help them meet standards such as the Indonesian Sustainable Palm Oil standard or ISPO, and international expectations like RSPO.
“From some initial work helping suppliers trace their Fresh Fruit Bunch sources to farmers in 2018, we believe that we can expedite the process by extending support to supply chain actors at the tail end of the supply chain such as FFB collectors and farmers on carrying our data collection,” Daniel Prakarsa said.
Since Sinar Mas Agribusiness and Food’s parent company Golden Agri-Resources (GAR) introduced its GAR Social and Environmental Policy in 2015, traceability and increasing transparency of its own operations and its supply chain have been a core component of the company’s sustainability effort.
The company has been fully traceable to the mill since 2015, and achieved 100 percent TTP for all Sinar Mas Agribusiness and Food owned mills in 2017. The company is now working with more than 400 third-party suppliers to map their supply chains all the way back to origin. To date, over 50 thirdparty mills have reported full TTP with some 150 taking part in the TTP exercise.
About Sinar Mas Agribusiness and Food
In Indonesia, all Golden Agri-Resources’ (GAR’s) palm oil related businesses operate under the Sinar Mas Agribusiness and Food brand. Outside of Indonesia, the majority of GAR-owned entities operate under the GAR brand. When talking about GAR’s total business interests in Indonesia, Sinar Mas Agribusiness and Food is used.
Sinar Mas Agribusiness and Food operates with a total planting area in Indonesia reaching more than 500,202 hectares (including plasma smallholders) as at 31 March 2019, located in Indonesia. It has integrated operations focused on the production of palm-based edible oil and fat.
Focus on sustainable palm oil production, its primary activities in Indonesia include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil (CPO) and palm kernel; refining CPO into value-added products such as cooking oil, margarine, shortening, biodiesel and oleo-chemicals; as well as merchandising palm products throughout the world. It also has operations in China and India including a deep-sea port, oilseeds crushing plant, 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 and has a market capitalisation of US$2.6 billion as at 31 March 2019. 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. GAR is focused on responsible palm oil production.
For more information about Sinar Mas Agribusiness and Food, visit www.smart-tbk.com
For more information, please contact:
Sinar Mas Agribusiness and Food media team
[email protected] | +62 815 134 133 09