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
| 2024 Progress |
1.01x tons FFB/haThe average productivity of all our smallholders’ replanted plantations in 2024 reached 1.01x the baseline, equivalent to 15.19 tons FFB/ha, based on a baseline of 15 tons FFB/ha. One of the replanted KUDs has already achieved 1.87x tons FFB/ha at just five years old.The 2024 average productivity is lower than 2023, primary due to the inclusion of newly producing replanted areas aged between 2-4 years, which currently yield only 0.68x tons FFB/ha. These younger, lower-yielding areas have temporarily reduced the overall productivity for the year. |
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
| 2024 Progress |
Up to 31.5% CompletedSince the start of our replanting program in 2016, we have successfully replanted over 18,900 hectares of our scheme smallholders’ plantations — including 3,484 hectares in 2024 — representing 31.5% of our total target of 60,000 hectares. |
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
| 2024 Progress |
72% of Smallholder Cooperatives CertifiedIn 2024, 72% of our smallholder cooperatives (KUDs) obtained ISPO certification. Out of 76 KUDs, 55 have been certified in total, with 11 achieving certification in 2024 alone. |
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.
Performance
| 2024 Progress |
Up to 27% Independent Smallholders CertifiedIn 2024, an additional 534 independent smallholders managing 1,129 ha of plantation obtained RSPO certification, bringing the total to 1,373 independent smallholders managing 3,099 ha. This represents 27% of our target to achieve RSPO certification for 5,000 smallholders. |
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
| 2024 Progress |
35% AchievedIn 2024, we provided vocational training to 686 individuals, bringing our total to 1,736 trained since 2022. Our goal is to equip 5,000 people with essential livelihood skills. |
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
| 2024 Progress |
82% AchievedIn 2024, we supported the establishment of SME programs in 54 out of 159 villages across three provinces; 6 villages in North Sumatra, 7 villages in Riau, 6 villages in Jambi, covering 102,716 ha.In total, we have already covered 410,112 ha, or 82% of the 500,000 ha target. |
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
| 2024 Progress |
27% Education Packages DistributedIn 2024, through our Bag-to-School programme, we provided 678 education packages to elementary, secondary and high school students. In total, we have distributed 1,355 packages, or 27% of our goal to provide 5,000 packages to students. |
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
| 2024 Progress |
Upgraded/ Added 19 press machinesWe upgraded and/or added 19 full-EFB press machines in 12 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 Ecosystem program.
Performance
| 2024 Progress |
We continued to maintain the existing natural ecosystem and enrich the degraded area in concessionWe 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.
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
| 2024 Progress |
| In 2024, our GHG emissions intensity for Scope 1 and 2 was 3.36 tCPO2eq/MT CPO. We continue to avoid and reduce GHG emissions, while also pursuing projects like ecosystem restoration that enhance natural carbon sequestration. |
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 around 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
| 2024 Progress |
Methane Capture Maintained, More PlannedWe maintained our methane capture facilities in optimal condition, sustaining approximately 90% reduction in methane emissions. We are also exploring the possibility of adding new facilities. |
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
| 2024 Progress |
| In 2024, 97% of our energy needs were met through renewable sources. For the remaining fossil fuel use, we are actively exploring renewable alternatives, including the potential installation of solar PV systems. |
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.
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
| 2024 Progress |
Maintained 100% of Our Sustainability CertificationsWe consistently maintain 100% certification for all our plantations, including Indonesian Sustainable Palm Oil (ISPO), Roundtable on Sustainable Palm Oil (RSPO), International Sustainability and Carbon Certification (ISCC), Kosher, Good Manufacturing Practices+ (GMP+), Hazard Analysis and Critical Control Points (HACCP), and Green Gold Label (GGL). In addition, nearly 90% of our biogas output is used for power generation, contributing approximately 40% of our total electricity production. |
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
| 2024 Progress |
| We are committed to improving the circularity of our operations by recycling organic waste, such as using empty fruit bunches (EFB) as fertilizer and capturing methane from palm oil mill effluent (POME) to generate power. In 2024, we reused 58% of EFB and processed 54% of POME through our methane capture facilities. For us, circular economy implementation is an ongoing journey of continuous improvement. |
Reduce 50% pesticide usage.
We are working to reduce our chemical pesticide usage by 50%. 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
| 2024 Progress |
Pesticide Usage Reduced by 31%In 2024, we reduced pesticide use by up to 31% compared to the 2022 baseline. This reduction was achieved through integrated biological pest control methods, including the use of natural predators such as assassin bugs (Sycanus sp), the use of host plants, selective spraying, and drone-assisted pesticide application. |