ASIAN AGRI 2030
Generating positive value to smallholders, community and the environment through business excellence grounded in a strong sustainability commitment.
PILLARS AND TARGETS
SMALLHOLDER PARTNERSHIP
Targets
Smallholders are the key players and strategic business partners in our sustainable journey, as most of our Fresh Fruit Bunches (FFB) are sourced directly from them. We provide guidance on best agronomic practices as well as access to high-quality seeds to help them increase their FFB yield, and performance while simultaneously reducing their costs. By working hand-in-hand with them in the replanting program, we give our smallholders the opportunity to increase their productivity and, ultimately, their livelihood.
2022 Performance
The replanting program raised the productivity of our smallholders’ land to 28,42 tonnes FFB/Ha. The use of Superior Topaz Seeds coupled with the implementation of Best management Practices enhance the productivity of FFB.
More information about Superior Topaz Seeds can be found here.
The majority of our smallholders’ oil palms are aging and their yields are declining, so we encourage them to start the replanting program as early as possible when the palms’ productivity starts to decline. We provide access to financial support and planting material to assist with the replanting process and increase their productivity through sustainable intensification, which means smallholders can improve production with the limited amount of land they own.
2022 Performance
By the end of 2022, there were 16,000 hectares of our smallholders’ area has been replanted.
The Indonesian Government requires all estates to obtain Indonesian Sustainable Palm Oil (ISPO) certification by 2025. We began guiding our smallholders to obtain this certification in 2017.
2022 Performance
By the end of 2022, 20 out of 76 of our smallholder cooperatives have been ISPO audited.
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) program in 2020. The program is a joint collaboration between Asian Agri, Apical, and KAO Japan to certify 5,000 independent smallholders.
2022 Performance
By the end of 2022, 390 independent smallholders with area of 1,068 hectares have been RSPO certified.
INCLUSIVE GROWTH
Encourage Strong Participation to Achieve Best Quality of Life.
Targets
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.
2022 Performance
In 2022, we trained 455 workers in our oil palm tree harvesting program.
In addition to training, we support local communities to establish small and medium-sized enterprises (SMEs) by holding entrepreneurship workshops, finding the best suited commodities to meet with local demands and providing business strategy advice.
2022 Performance
By the end of 2022, we had identified and trained people from 17 villages; four villages in North Sumatra, seven villages in Riau and six villages in Jambi which covers a total area of 105,681 hectares.
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 fervour, they will encouraged to achieve better outcomes, and have better opportunity to lead better lives.
2022 Performance
By December 2022, we provided scholarships to 228 students, consisting of 105 elementary students, 75 secondary students and 48 high school students.
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 3-MCPD.
The waste oil recovered from the clarification process, including juice extracted from Empty Fruit Bunches (EFB) and condensated water from the sterilization process is segregated for our Non-Food Grade oil. This minimizes negative health impact for further downstream products.
2022 Performance
In 2022, all of our Palm Oil Mills (POMs); in total of 22 POMs, have been equipped with EFB Press machine, as well as segregation of Food Grade and Non-Food Grade products.
CLIMATE POSITIVE
Promote Sustainable Palm Oil through Best Management Practices.
Targets
As a company whose main operation is cultivation, we are obliged to give back to nature, and we believe that forest conservation is a key strategy to achieve a 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.
2022 Performance
Currently, we are in a phase of licensing process from the government.
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 work towards reducing, avoiding, and if possible, removing those sources. We have done several insetting projects such as methane capture facilities, reoptimizing fertilizing methods, retrofitting and revamping machineries to avoid losses etc to gradually lower our carbon footprint.
2022 Performance
In 2022, we have collaborated with a Carbon Expert Consultant to calculate the total CO2 emissions from our operations by using Greenhouse Gas (GHG) Protocol Scope 1 and 2 for 2021-2022 activities. This is part of Asian Agri’s Carbon Roadmap.
To reduce Greenhouse Gas (GHG) emissions from our Palm Oil Mill Effluent (POME), we have built methane capture facilities in the form of biogas plants. While these methane capture facilities potentially reduce GHG emissions from our mill operations by 90%, our Gas Engines also provide Green Electricity to power our Mill, Kernel Crushing Plants and housing complexes, reducing our dependence on fossil fuels.
2022 Performance
As of 2022, Asian Agri operates 10 Biogas plants.
In the next 2-3 years, we will add 2 more Biogas Plants. Currently, this is under construction.
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.
2022 Performance
Our pilot project for this program will be for our on-site housing complexes with no direct access to the national grid. We already conducted feasibility studies in several potential locations. Currently, we are opening tender for selecting a contractor.
RESPONSIBLE & SUSTAINABLE PRODUCTION
An Integrated Course of Action to Establish Sustainable Product.
Targets
There has been no new land use change for plantations since 2003, and we remain fully committed to that. We believe in the importance of adopting responsible and sustainable practices in palm oil production in order to protect the forest and to prevent deforestation and loss of biodiversity 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.
2022 Performance
Our CPO yield /ha for prime palm trees has achieved 78% of our 2030 target.
In order for us to be one of the most sustainable producers of palm oil in the world, it is important for us to comply with international and national regulations by obtaining sustainability certifications.
2022 Performance
We consistently maintain 100% of our certifications for our plantations: Indonesian Sustainable Palm Oil (ISPO), Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability and Carbon Certification (ISCC) certifications, as well as other certifications such as Kosher, Good Manufacturing Practices + Hazard Analysis and Critical Control Points (GMP+) and Green Gold Label (GGL).
As a part of sustainable operations, we reuse and recycle waste generated from our operations as much as possible.
2022 Performance
We use palm fibers as biomass fuel for boilers in our mills, providing a source of renewable energy. We also use Empty Fruit Bunches (EFB) and Palm Oil Mill Effluent (POME) to complement and substitute chemical fertilizers for our estates. We liaise with third party contractors to manage our inorganic waste, which is recycled or disposed of based on government environmental regulations.
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.
Performance 2022
In October 2022, we had conducted preliminary research in order to reduce chemical pesticide. 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.
More optimization works are currently on-going with drone spraying application.
In addition, using this technology can also reduce the risk of worker exposure to the use of chemicals and can also optimize the use of chemicals with better quality.
Message from our leader
Asian Agri 2030 is our 10-year, target-driven roadmap to deliver a positive impact to smallholders, communities and the environment while ensuring sustainable growth. By 2030 we will draw all our power from renewable sources, ensure net zero emissions from land use, and eliminate extreme poverty in the areas around our operations.
Kelvin Tio
MANAGING DIRECTOR
OUR VALUED ENDORSErS
My highest appreciation for the Asian Agri 2030 initiative. It is imperative for leading companies to start creating a roadmap toward a sustainable company today and 2030 is an important year because that is the year when the 2030 SDGs are set to be achieved, even if only partially.
Bambang Brodjonegoro
FORMER Indonesian Minister of Research and Technology 2019-2021/Chairman of the National Research and Innovation Agency 2016-2019/Minister of Finance 2014-2016
Asian Agri 2030 is an excellent move to support the UNSDGs and deserves appreciation. Hopefully more companies will take a page out of Asian Agri’s book.
Bayu Krisnamurthi
Deputy Minister of Agriculture 2009-2011/Deputy Minister of Trade 2011-2014
For us, Asian Agri 2030 is a breakthrough. We hope that other companies will do the same.
Dr. Ir. Musdalifah Machmud, M.T.
Deputy II at the Ministry of Economic Affairs
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