Smallholder Partnership
Intensive Engagement with Smallholders for Better Livelihoods
Doubling smallholders' income through replanting program.
Smallholders are central to our sustainable journey. As strategic business partners, we source substantially from them. We provide guidance on best agronomic practices as well as access to high-quality seeds, helping them increase yields and performance while simultaneously reducing costs.
By working hand-in-hand with them through our replanting program, we aim to improve their yields to 30 tonnes of FFB/ha, provide our smallholders the opportunity to improve their livelihoods.
Performance
| 2023 |
1.07x more productive, with an average of 16.05 tonnes of FFB/haThe average crop yield of our smallholders’ replanted plantation is 16 tonnes of FFB/ha, higher from the baseline of 15 tonnes FFB/ha. The lower performance compared to the 2022 yield is attributed to our expanding replanting programme, which temporarily lowers average yields due to the inclusion of newly planted trees. Notably, our mature replanted oil palm trees can yield up to 25 tonnes FFB/ha. We remain focused on achieving our goal of 30 tonnes FFB/ha by 2030. |
100% completion of smallholders’ replanting program.
As oil palm trees age, their yields decline. The majority of our smallholders’ oil palm plantations have entered the replanting phase. To address declining yields, we have made replanting a key priority through to 2030. We encourage our scheme smallholders to start the replanting program as early as possible.
We also help increase their productivity through sustainable intensification by introducing our Superior Topaz seeds, which have been tested and proven to produce high-yield Fresh Fruit Bunches. Additionally, we provide access to financing to assist the replanting process.
Performance
| 2023 |
29% CompletedSince the start of our replanting program in 2016, we have replanted more than 15,400 hectares of our scheme smallholders plantations. This represents 29% of the total 53,000 hectares that we aim to replant by 2030. |
100% ISPO certification for smallholders.
The Government of Indonesia requires all oil palm estates to obtain the Indonesian Sustainable Palm Oil (ISPO) certification by 2025. We achieved the first ISPO certification for our scheme smallholders in 2017.
Performance
| 2023 |
34% of smallholder cooperatives certifiedIn 2023, we helped 19 of our smallholder cooperatives (KUDs) obtain ISPO certification. In total, 26 out of 76 KUDs are ISPO certified. Additionally, 11 KUDs have undergone the audit process, and are awaiting certification. |
5,000 independent smallholders to be RSPO certified.
Following our success in achieving 100% Roundtable on Sustainable Palm Oil (RSPO) certification for all of our scheme smallholders in 2017, we began helping our independent smallholders through the SMallholder Inclusion for better Livelihood & Empowerment (SMILE) programme in 2020. The SMILE programme is a joint collaboration between Asian Agri, Apical, and KAO to certify 5,000 independent smallholders by 2030.
Performance
| 2023 |
839 Independent Smallholders are CertifiedIn 2023, an additional 449 independent smallholders managing 902 ha of plantation obtained RSPO certification, bringing the total to 839 independent smallholders managing 1,950 ha. This represents 17% of our target to achieve RSPO certification for 5,000 smallholders by 2030. |
Inclusive Growth
Encourage Strong Participation to Achieve Best Quality of Life
Zero extreme poverty surrounding our operational area.
The best way to alleviate poverty in surrounding communities is by providing training to equip people with the skills they need to improve their economic situation.
Performance
| 2023 |
21% achievedIn 2023, we provided vocational training to 595 individuals, bringing our total to 1,505 trained since 2022. Our goal is to equip 5,000 people with essential livelihood skills by 2030. |
Establishment of Small-Medium Enterprises that covers more than 500,000 ha.
In addition to training, we support local communities in establishing small and medium-sized enterprises (SMEs) by conducting entrepreneurship workshops, identifying the most suitable commodities to meet local demands and providing business strategy advice.
Performance
| 2023 |
61% AchievedIn 2023, we supported SME programs in 18 villages, covering a total area of 201,715 ha. In total, we have established SME programs in 35 out of 159 surrounding villages across three provinces; nine villages in North Sumatra, fourteen villages in Riau, and twelve villages in Jambi, which cover 307,396 ha, or 61% of 500,000 ha. |
Provide 5,000 sets of school essentials to children through our Bag-to-School programme
We believe one of the most effective ways to enhance economic development is through education. By motivating children to pursue their studies with fun and fervor, they will be encouraged to achieve better outcomes, and have better opportunity to lead better lives.
Performance
| 2023 |
677 Education Packages DistributedIn 2023, through our Bag-to-School programme, we provided 449 education packages to elementary, secondary and high school students. In total, we have distributed 677 packages, or 13 % of our goal to provide 5,000 packages to students.Note: We have revised the name of this pillar from “Provide Quality Education Access through 5,000 Scholarship Awards”. The objective of this program remains unchanged: to provide and support needy children with the essentials they need to continue their education. |
Optimize recovery of waste oil.
Our mills segregate Food Grade and Non-Food Grade Crude Palm Oil. This segregation ensures that our Food Grade oil is safe for human consumption by removing contaminants such as metallic elements and carcinogenic substances such as 3-MCPD and Glyceryl ester (GE).
The waste oil recovered from the clarification process, including juice extracted from Empty Fruit Bunches (EFB) and condensed water from the sterilization process, is segregated for our Non-Food Grade oil. This minimizes negative health impact for further downstream products.
Performance
| 2023 |
13 press machines Upgraded/ AddedWe upgraded and/or added 13 full-EFB press machines in 10 mills. These machines play a crucial role in sustainability efforts by promoting responsible waste management practices. By using these machines, we can achieve more efficient recovery of waste oil.Through optimizing these machines, we also contribute to reduce the distribution of non-food grade products in the market. |
Climate Positive
Promote Sustainable Palm Oil Through Best Management Practices
One to One commitment for restoration area.
As a plantation company, we believe that forest conservation is a key strategy to achieving positive impact on the climate. We aim to restore and conserve one hectare of degraded land for every hectare we plant under our One-to-One Restoration program.
Performance
| 2023 |
Ecosystem Restoration Concession Permit ObtainedWe have secured the necessary legal permits for Ecosystem Restoration Concession (ERC). We will revitalize the degraded areas within the ERC to enhance biodiversity and strengthen ecological resilience. |
Net Zero emissions from land use.
There are two ways to achieve net-zero emissions: carbon offsetting and insetting. Since the beginning of our sustainability journey, we have acknowledged our main sources of Greenhouse Gas (GHG) emissions and worked towards reducing, avoiding, and if possible, removing those sources. We have implemented several insetting projects, such as methane capture facilities, re-optimizing fertilizing methods, retrofitting and revamping machineries to minimize losses etc, in order to gradually lower our carbon footprint.
Performance
| 2023 |
| In 2023, our GHG emissions for Scope 1 and 2 was 3.09 tCO2eq/MT CPO produced. We continue to avoid and reduce GHG emissions, along with exploring projects such as ecosystem restoration, which can act as a carbon sink. |
Optimize methane capture facilities for all mills.
To further reduce Greenhouse Gas (GHG) emissions from our Palm Oil Mills, we have built biogas plants as methane capture facilities. These methane capture facilities can potentially reduce GHG emissions from our mill operations by 90%. Additionally, our gas engines provide green electricity to power our mills, kernel crushing plants, and housing complexes, reducing our dependency on fossil fuels.
Performance
| 2023 |
11 Biogas Plants |
100% renewable energy for our operations.
We continuously look for ways to reduce our dependency on fossil fuel for power generation. While all of our mills are already self-sufficient without using fossil fuel, there are still improvements we can aim for in locations where diesel is the main source of electricity.
Performance
| 2023 |
| In 2023, 97% of our energy needs were powered by renewable sources. For the remaining energy requirements supplied by fossil fuels, we continue to review the feasibility of utilizing renewable energy options, such as the installation of Solar PVs. |
Responsible & Sustainable Production
An Integrated Course of Actions to Establish Sustainable Product
No new land use change for plantations.
There has been no new land use change for plantations since 2003, and we remain fully committed to this pledge. We believe in the importance of adopting responsible and sustainable practices in palm oil production in order to protect the forest, prevent deforestation, and minimize biodiversity loss while achieving our productivity targets.
We are focusing on intensification of our plantations by planting the best material from our Research & Development Department and applying best management practices in every aspect of our operations.
Performance
| 2023 |
No land use change since 2003Committed to not opening up land for plantation. No land expansion has been our living commitment since 2003, and it will remain our commitment moving forward. |
Promote eco green for sustainable operations.
As a leading sustainable producer of palm oil, it is important for us to comply with international and national regulations by obtaining sustainability certifications.
Performance
| 2023 |
Maintained 100% of Our Sustainability CertificationsWe consistently maintain 100% of our certifications for our plantations: Indonesian Sustainable Palm Oil (ISPO), Roundtable on Sustainable Palm Oil (RSPO), International Sustainability and Carbon Certification (ISCC) certifications, Kosher, Good Manufacturing Practices + (GMP+), Hazard Analysis and Critical Control Points (HACCP), and Green Gold Label (GGL). |
Implementing circular economy best practices.
As a part of sustainable operations, we reuse and recycle waste generated from our operations as much as possible, such as Empty Fruit Bunches (EFB) and Palm Oil Mill Effluent (POME).
Performance
| 2023 |
| We are continuously improving the circularity of our operations, such as using EFB as fertilizer, or using methane gas from Palm Oil Mill Effluent (POME) to generate power. Residue oil collected from the POME is also collected as feedstock for biodiesel. |
Reduce 50% pesticide usage.
We are working to reduce our chemical pesticide usage by 50% by 2030. We implement an Integrated Pest Management (IPM) approach, using biological methods such as natural predators and traps to control pest growth.
In October 2022, we conducted preliminary research to reduce chemical pesticide usage. Through our Research & Development Department, we introduced the Drone Sprayer to perform chemical treatment for pest and disease in our plantation. Then, based on the ground validation, it was found to have achieved more than 95% effective rate.
Performance
| 2023 |
52% REDUCTION IN PESTICIDE USAGEBy implementing integrated biological pest control methods, we have successfully reduced pesticide usage by up to 52%. This is achieved though introducing natural predators such as assassin bug or Sycanus sp, utilizing host plants, installing traps, adopting selective spraying methods, and employing technologies such drones for spraying. The use of drone technology can also reduce the risk of worker exposure to chemicals and optimize the use of chemicals, resulting in better quality. |