Utrecht, 25 February 2021 – Agritech company Satelligence has partnered with Sinar Mas Agribusiness and Food (SMART), following a three month trial, to deliver near real-time deforestation risk monitoring of SMART’s full palm oil concessions and supply chain, covering all of Indonesia. Based on SMART’s previous experience with satellite monitoring of its own estates and in some parts of its supply chain, the company has chosen to consolidate its monitoring in one system to provide a holistic overview of its supply chain impacts. Satelligence pulls insights from supply chain asset data, satellite intelligence, and human resources to monitor on the ground risks.
As a leading integrated palm oil-based agribusiness, Sinar Mas Agribusiness and Food has also acted as a leader in the sustainability transformation underway in the sector. This effort is underpinned by the GAR Social and Environmental Policy which is the roadmap guiding its sustainability journey and informing how it collaborates with suppliers, smallholders and others to realise its vision of a sustainable palm oil industry.
Demand for sustainable palm oil is transforming the supply chain. In Indonesia, deforestation linked to palm oil has declined consistently since 2012 thanks to government conservation policies and corporate deforestation-free commitments. However, the supply chain is long and complex involving many small companies and farmers. Satellite technology enables industry actors to monitor and demonstrate the implementation of their no deforestation commitments.
Sinar Mas Agribusiness and Food Chief Operating Officer Tony Kettinger comments, “The efforts of Sinar Mas Agribusiness and Food and our suppliers to implement conservation commitments are having an impact, and reducing deforestation linked to palm oil production. Customers want the confidence that suppliers like Sinar Mas Agribusiness and Food are identifying and rapidly acting on any deforestation events in its supply chain. Satelligence’s technology allows us to provide that confidence through the use of a single system.”
There are a number of hurdles in the drive to managing sustainable supply chains, such as buyers and financial institutions burdening suppliers, a rise in biased reporting, and incorrect deforestation alerts from monitoring services. Satelligence’s satellite monitoring system and AI-driven dashboard tackles these problems ensuring transparent, trustworthy data on trends, patterns and anomalies in SMART’s supply chain.
Satelligence CEO Niels Wielaard says, “Our vision at Satelligence is to make deforestation-free commodities a reality. The majority of the global supply of palm oil comes from Indonesia, and so by partnering with businesses such as Sinar Mas Agribusiness and Food, achieving a more sustainable landscape is conceivable. By making deforestation risk monitoring more credible, less-time consuming and less costly, this partnership with Sinar Mas Agribusiness and Food aims to strengthen its efforts to delink palm oil to deforestation in Indonesia.”
Satelligence is a leading satellite-powered geodata analytics company providing daily insights into the global performance of agricultural production and supply chain risks, such as deforestation, forest fires and flooding. We help customers including Mondelez, Unilever, Bunge, WorldBank, Rabobank, Robeco, World Wildlife Fund, and the Ministry of Foreign Affairs of the Netherlands demonstrate progress towards zero deforestation, and make the right sourcing and investment decisions. Commodities covered include palm oil, cocoa, soy, rubber, beef, pulp and paper, biomass among others. Satelligence operates from offices in Indonesia, Ghana, Bolivia, and The Netherlands.
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 495,247 hectares (including plasma smallholders) as at 30 September 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$2.1 billion as at 30 September 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.
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Sinar Mas Agribusiness and Food