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Staying the Course: Sinar Mas Agribusiness and Food’s latest Sustainability Report highlights continued commitment to responsible production

Posted: Aug 04, 2020 4 minute read SMART 631 views

Jakarta, 4 August 2020 – Sinar Mas Agribusiness and Food (SMAF) latest Sustainability Report entitled “Staying the Course” details SMAF’s commitment to continued implementation of the GAR Social and Environmental Policy (GSEP). Published amidst the COVID-19 pandemic, the report also provides a snapshot of the company’s efforts to support employees and communities during the outbreak.

“Staying the Course, is a fitting description for the reality of working to achieve lasting sustainable practices within our own business and our wider supply chain. Major initiatives such as Traceability to the Plantation (TTP) and supply chain transformation, as well as continued work on delinking deforestation from production, are now showing significant traction and benefits, five years after we launched the GSEP,” said Agus Purnomo, Managing Director, Sustainability, Sinar Mas Agribusiness and Food.

“Industry-wide transformation, such as the palm oil sector has been undergoing, can only be achieved by daily on-the-ground effort. It requires the collaboration and support of all stakeholders – our employees, our suppliers, our financiers, our customers, and consumers. We have a shared responsibility to stay the course,” he continued.

Report highlights include:

The achievement of nearly 80 percent TTP for Sinar Mas Agribusiness and Food’s entire palm supply chain, putting it on track to achieve the target of full TTP by end-2020 (subject to unforeseen delays due to the COVID-19 pandemic). Supply chain transformation backed by traceability continues apace through SMAF’s various deep engagement and capacity-building programmes. Workshops on traceability, responsible labour practices, and implementation of Free, Prior and Informed Consent (FPIC) were amongst those organised for suppliers in 2019.

Effective resolution of supply chain grievances based on a structured engagement approach. Sinar Mas Agribusiness and Food was ranked by NGO Mighty Earth as the top ranking palm oil company in resolving grievances involving third-party suppliers.

Sinar Mas Agribusiness and Food supports, directly and indirectly, the conservation of 144,000 hectares of forest area. 72,000 hectares of which are within Sinar Mas Agribusiness and Food’s own concessions with the rest within third-party supplier concessions and community areas. Last year, it joined an industry initiative to fund and support the development of increased surveillance of deforestation in Indonesia through radar monitoring.

Continued support to 40 Alternative Livelihood projects in partnership with local communities across Indonesia. These projects which include growing organic vegetables and other cash crops like coffee help improve rural farming communities’ resilience and livelihoods, especially in times of crisis like the COVID-19 outbreak.

Other achievements include the reformulation of almost all consumer products like margarine and shortening to be free of trans fatty acids. To support its programme of yield improvement, Sinar Mas Agribusiness and Food has produced about 2.5 million clones of super high-yielding clonal stock, Eka 1 and Eka 2 for replanting as of end 2019. These new clonals are capable of producing over 10 tonnes/ha/year of CPO, about three times the current national average yield in Indonesia.

Looking forward, the Chairman and CEO of Sinar Mas Agribusiness and Food is confident the company is well-positioned to stay the course: “Sinar Mas Agribusiness and Food’s strong vertically integrated business model and sustainable operations provide resilience during industry volatility and disruption, including the current COVID-19 pandemic. With the momentum we have gained over the years, we remain hopeful that we will stay on track and continue to provide sustainably produced and superior quality palm oil products, while creating value for all our stakeholders.”

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. GAR is focused on responsible palm oil production.

For more information about Sinar Mas Agribusiness and Food, visit

For media enquiries, please contact:
Wulan Suling
[email protected]

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