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Observing Sustainable Palm Oil Practices at Sinar Mas Agribusiness and Food

Posted: Aug 24, 2018 3 minute read SMART 0 Likes

BELITUNG, August 24, 2018 – Sinar Mas Agribusiness and Food, global agro-business company with integrated palm oil business from upstream to downstream has the same commitment with the Indonesian Palm Oil Concession Association (GAPKI) to always build Sustainable Palm Oil Industries.

“We have commitment to implement sustainable and responsible palm oil plantation management practices in accordance with company policies that are contained in the GAR Social and Environmental Policy(KSLG),” said The Biao Ling, Managing Director of the Sinar Mas Agribusiness and Food Plantations in Belitung, Sumatra, Friday.

The Sinar Mas Agribusiness and Food plantations Sumatra region in Belitung have been implemented sustainable palm oil industry practices through the use of waste such as empty beds, liquid waste for land applications, and natural pest management efforts that are carried out with the help of owls. The company also provides guidance to plasma farmers who have experienced increased output with help from the company.

One of the important initiatives of Sinar Mas Agribusiness and Food in expediting the transformation of the palm oil industry is its efforts in Traceability to the Plantation or (TTP). This effort not only guarantees the source of the Company’s raw materials but also becomes an important starting point in its efforts to steer suppliers towards better change. By the end of 2017, the Company had reached 100% of TTP for 44 of the Company’s palm oil mills (PKS). For the second stage, suppliers work with third parties to actualize 100% TTP for the company’s supplier factories by the end of 2020.

At present the company is working with more than 420 third party suppliers to help realize TTP by the end of 2020. With this achievement, Sinar Mas Agribusiness and Food can guarantee the source of the company’s raw materials. This is in line with the efforts made by other parties in the palm oil sector, including key customers of the Company who continue to seek full transparency in their palm oil supply chains.

The effort to create sustainable palm oil is also fully supported by GAPKI. “We, together with palm oil companies in Indonesia such as Sinar Mas Agribusiness and Food, are committed to creating and implementing responsible and sustainable palm oil practices” said Joko Supriyono, General Chair of GAPKI.

The company believes that achieving full TTP will help it to share responsible practices with more palm oil agents, traders and farmers in its supply chain. Recorded progress in this area is in line with the United Nations Sustainable Development Goals (SDGs) 12 – Responsible Consumption and Production – along with the Company’s efforts to improve the livelihoods of suppliers, especially palm oil farmers, while ensuring sustainable production. (*)


About Sinar Mas Agribusiness and Food

Sinar Mas Agribusiness and Food, operating as part of Golden Agri-Resources (GAR), is a leading global agribusiness based on palm oil production, with a planted area of more than 500,345 hectares (including plasma smallholders) as at 31 March 2018. 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.

Its parent company, GAR was founded in 1996 and listed on the Singapore Exchange in 1999 with a market capitalization of US$3.4 billion as at 31 March 2018. 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
Sinar Mas Agribusiness and Food Media Team
Heru Widodo | +62 812 815 2464

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