Aceh, 8 April 2022 – Last week, palm oil majors Musim Mas Group and Sinar Mas Agribusiness and Food jointly hosted their second supplier workshop and Focus Group Discussion (FGD) in Langsa, and Kuala Simpang, Aceh, emphasising the importance of compliance with sustainability policies.
The second collaborative workshop was held for two days and attended by 55 participants, consisting of representatives of supplier mills, local traders and farmers, government officials, and civil society organizations (CSO).
Collaborative workshops allow palm oil companies to reach out to a wider group of suppliers beyond their supply chain. It is vital that all stakeholders, including farmers, local government, and civil society organisations, recognise and support such efforts. Partnerships in priority landscapes are essential to push for the industry’s transformation at scale.
The workshop covered three crucial topics – No Deforestation, No Peat, and No Exploitation (NDPE) compliance, Indonesia Sustainable Palm Oil (ISPO) certification, and Traceability to Plantation (TTP). Through the sessions, participants were able to gain insights into the importance of NDPE compliance and ISPO certification for the long-term sustainability of their business. The impact of NDPE compliance on the acceptance of Indonesian palm oil products in the global market was also discussed in the workshop. In addition, discussions revolved around building transparency and good communications to enable joint efforts towards NDPE compliance.
The first session introduced the NDPE Policy and its importance as a foundation for ISPO certification and how NDPE is a global requirement. The session also covered current deforestation monitoring systems and how grievances are managed.
In the second session, the focus was to introduce suppliers to the ISPO certification system and the benefits of ISPO certification for companies and smallholders and define the correlation between achieving ISPO certification and complying to NDPE Policy. ISPO certification is key to increasing access to the global market.
The last session underlined the importance of TTP to ensure NDPE compliance, allowing the identification of precise sourcing areas. The session also explains deforestation monitoring using satellite monitoring systems. Suppliers were encouraged to monitor deforestation on their own using publicly accessible platforms.
At the end of the workshop, Sinar Mas Agribusiness and Food and Musim Mas also sought better insights into Aceh suppliers’ perceptions and commitment to the NDPE Policy and their plan toward ISPO certification. Through an FGD session, participants shared their perspectives and found common agreement that all stakeholders – not limited to companies and smallholders – must work hand in hand to achieve the industry sustainable goals.
“The enthusiasm shown by the participants reflects how important it is to hold workshops in the production areas. Workshops are a key element of our “Aceh Strategy” of contributing to sustainable agricultural production in Aceh. Such workshops enable engagement on the NDPE concept and how it can translate into action by mills, local traders, and farmers. The discussions were very open and lively, which shows the trust built during the workshop. We were happy to work again with Sinar Mas Agribusiness and Food in the important landscape that is Aceh. We believe palm oil companies should collaborate for deforestation and exploitation-free supply chains.” – Olivier Tichit, Director of Sustainability, Musim Mas.
“The joint workshop with Musim Mas is manifestation of our commitment to support the palm oil industry transformation in sustainability. Not only were we able to socialise the NDPE requirements, but it is an opportunity for us to listen and engage our stakeholders to address their challenges in implementing sustainable practices. Our hope is that this activity can open up opportunities for further in-depth programmes to support our supply chain to implement Good Agronomy Practice (GAP), Best Management Practice (BMP), and acquiring certification both for companies and smallholders.” – Wahyu W. Wijayanti, Head of Traceable and Transparent Production, Sinar Mas Agribusiness and Food.
About Musim Mas
Headquartered in Singapore, Musim Mas is one of the world’s largest integrated palm oil corporations, with operations in every part of the supply chain across the Americas, Europe, and Asia. Our global workforce pursues innovative and sustainable developments, ensuring product quality, safety, and efficiency as the industry evolves.
As one of the most prominent players in the industry, it aspires to be a responsible leader in the industry’s evolution, driving a new era of sustainability with innovation. To that end, we take active steps to go beyond industry-recognized sustainability standards and will continue to step up in response to critical industry issues in our quest to contribute to a more sustainable industry and equitable world.
About Sinar Mas Agribusiness and Food
Sinar Mas Agribusiness and Food operates under Golden Agri-Resources (GAR), one of the leading palm oil plantation companies with a total planted area of 536,013 hectares (including plasma smallholders) as at 31 December 2021, located in Indonesia. Its integrated operations focus on the technology-driven production and distribution of an extensive portfolio of palm-based products.
Founded in 1996, GAR was listed on the Singapore Exchange in 1999 and has a market capitalisation of US$2.3 billion as at 31 December 2021. Flambo International Limited, an investment company, is currently GAR’s largest shareholder, with a 50.52 percent stake. GAR has several subsidiaries, including PT SMART Tbk which was listed on the Indonesia Stock Exchange in 1992.
As an integrated agribusiness, GAR delivers an efficient end-to-end supply chain, from responsible production to global delivery. 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; refining CPO into value-added products such as cooking oil, margarine, shortening, biodiesel and oleo-chemicals; as well as merchandising palm products globally. GAR’s products are delivered to a diversified customer base in over 70 countries through its global distribution network with shipping and logistics capabilities, destination marketing, on-shore refining and ex-tank operations in many countries. GAR also has complementary businesses such as soybean-based products in China, sunflower-based products in India, as well as sugar businesses.