Apical Group subsidiaries Cemerlang Energi Perkasa and Kutai Refinery Nusantara announced their support for the government's decision to expand the use of biodiesel derived from crude palm oil. (Antara Photo/Akbar Tado)

Sinar Mas Agribusiness & Food Promotes Sustainability in Palm Oil Industry

JULY 18, 2018

Jakarta. Sinar Mas Agribusiness and Food held a media event to discuss its "Extraordinary Everyday" campaign to highlight the company's progress in achieving its goal of achieving 100 percent traceability to plantation for its palm oil.

Wulan Suling, head of corporate communications at Sinar Mas, said in a press release on Thursday (19/07) that the company recently launched the second phase of its campaign, aimed at raising awareness of the people behind palm oil production.

"Through the 'Extraordinary Everyday' campaign, we want to show the other side of the palm oil industry people rarely see; mainly the people involved in the production. The campaign tells an inspiring story of a farmer named Yatimin, a West Kalimantan teacher named Siti Musyaroh and Punjung Renjani, a food technology expert," Wulan said.

Daniel Prakarsa, head of downstream sustainability implementation at Sinar Mas, said the company reached 100 percent traceability to plantation (TTP) at 44 factories by the end of last year, making 39 percent of Sinar Mas's supply chain traceable. This means the company now has access to 70 suppliers that buy from 11,000 independent farmers managing 40,000 hectares of palm plantations.

"After completing TTP for our own factories in 2017, we still have a large hurdle ahead of us to map the supply chain from 247 other suppliers," Daniel said.

Following in the footsteps of parent company Golden Agri-Resources in including farmers and working closely with partners such as Koltiva, Geotraceability and Neste, Sinar Mas hopes to achieve its 100 percent TTP goal by 2020.

Koltiva, an information technology and software consulting firm, has helped Sinar Mas verify sustainable sources by signing up independent farmers online and through a mobile phone application. Kotiva field agents have identified 16 palm oil suppliers, mapped and verified 9,105 hectares of plantations owned or managed by 4,168 farmers, and given them information on how to increase their production while practicing responsible farming and providing them with access to the international supply chain.

Sinar Mas Agribusiness and Food has 500,345 hectares of palm oil plantations in Indonesia, including independently owned plantations.