Jakarta, 7 January 2021 – COVID-19’s impact continues to be felt, especially among vulnerable parts of in rural Indonesia where food security and income generation have been put at risk by the pandemic.
In response, leading palm oil-based agribusiness, Sinar Mar Agribusiness and Food, has increased focus on food security and livelihoods programmes to support communities where the company operates.
“During the COVID-19 pandemic, we saw that access to nutritious food was an even greater challenge for rural communities. Our Alternative Livelihood and Integrated Ecological Farming Programmes, have been helping communities plan, fund, and grow their own food, allowing them to be less reliant on supplies from outside the village. The programme helps farmers feed themselves, plus earn much needed extra income. As a bonus, improving farmer productivity in these communities reduces the need to open more land for farming, reducing the risk of deforestation,” said Anita Neville, Senior Vice President, Group Corporate Communications.
New farming techniques introduced to help farmers generate more income
Sinar Mas Agribusiness and Food collaborates with several partners, including world-renowned Wageningen University, to deliver its Alternative Livelihoods and Integrated Ecological Farming Programmes.
The programmes provide workshops for villagers in different communities to increase soil fertility using organic fertilizer, resulting in healthier crops.
Local farmers and smallholders are taught good agricultural practice and given access to modern agriculture experts. Farmers are also encouraged to sell in the local market to generate income and helping them fulfil their daily needs.
To date, the programmes have helped more than 40 communities in Sumatera and Kalimantan upgrade their agricultural practices and grow cash crops, ranging from organic vegetables to coffee. At the same time, reducing the risk to forests from deforestation to open up more cropland.
Sinar Mas Agribusiness and Food also focuses on environmental protection
Improving livelihoods and ensuring a stable food supply are not the only benefits of these programmes. Sinar Mas Agribusiness and Food is teaching rural communities, farmers and smallholders how to farm with sustainable practices in mind – reducing pressure on forest lands, eliminating the use of fire to open areas for cropping, focusing on water management and implementing regenerative agriculture techniques to maintain healthy soils.
“Rural and farming communities are uniquely reliant on the environment in which they live and work. A healthy environment, coupled with good techniques, equals a healthy harvest. This is an investment in their and our future,” said Anita.
Sinar Mas Agribusiness and Food also walks the talk with its significant conservation efforts. The company has conserved more than 178,000 hectares of forest area — 78,000 hectares of which are within Sinar Mas Agribusiness and Food’s own concessions. Through its community engagement programme, Desa Makmur Peduli Api, the company has also successfully prevented fire to only 0.5% area impacted in 2019.
“COVID-19 has shone a light on the vulnerabilities in the global food system. Sinar Mas Agribusiness and Food has been working for several years on building the resilience of the communities in which we work and will continue to do so,” concluded Anita.
Find out more about the company’s sustainability performance and initiatives in the Sinar Mas Agribusiness and Food’s latest Sustainability Report.
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.
For more information about Sinar Mas Agribusiness and Food, visit www.smart-tbk.com
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