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Riau, 28 January 2016 – Today, Asian Agri Group, a national palm oil company that is committed to preserving the environment, handed the 2014 premium sustainable palm oil, approximately Rp 2 billion, to its plasma smallholders located in Jambi and Riau provinces.

Managing Director Asian Agri Group, Kelvin Tio, stated, “The international market, especially European countries, are very interested in sustainable oil. Asian Agri supported its plasma smallholders in implementing the sustainable plantation practices, in order to obtain the certification which will bring certainty to market our smallholders’ palm oil.”

The premium was symbolically handed by Managing Director Asian Agri Group, Kelvin Tio, to 83 cooperative’s representatives from Riau and Jambi who have obtained international certifications (RSPO and ISCC).

At the ceremony held to hand the premium to plasma smallholders in Buatan Estate, Buana Bhakti Village (SP 2), Kerinci Kanan District, Siak Regency, Riau, Kelvin explained that the premium is an additional incentive for plasma smallholders who have obtained international certification. “Plantations and oil palm processing are key contributors to the the state revenue. Of the total 160,000 hectares of land managed by Asian Agri, 40 % or 60,000 hectares area managed by the Asian Agri’s smallholders. We assist farmers for improving productivity, environmental management and good business practices to ensure the smallholders’ sustainability.”

Deputy of Food and Agricultureof the Coordinating Ministry of Economic Affairs, Ir. Musdalifah Mahmud, MT was present to witness the premium sharing and lead a dialogue with Asian Agri’s smallholders.

The smallholders also met with senior officials from the Coordinating Ministry of Economic Affairs, Indonesian Oil Palm Estate Fund Agency ( BPDPS), Ministry of Trade, Ministry of Agriculture and the Ministry of Rural Development and Transmigration, as well as local authorities from Siak Regency and Riau Province.

“Oil palm plantations and processing are important in increasing Indonesia economy, since the palm oil export contributes significantly to the state revenue. Moreover, this sector also provides employment opportunities to millions of people in Indonesia. This premium sharing is one of the company’s commitment to continuously support sustainable oil palm industry,” said Musdalifah.

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About Asian Agri:

Asian Agri is one of the leading private companies in Indonesia producing crude palm oil (CPO) since 1979 and employs around 25,000 people today. Since 1987, Asian Agri has been a pioneer of the Indonesian government’s Trans-National Government Migration (PIR-Trans) program. Today, the company manages 100,000 Ha of land and partners 30,000 smallholder families in Riau and Jambi who operate 60,000 Ha of palm oil plantation.

Asian Agri’s success in becoming one of the leading CPO companies has been acknowledged internationally with the ISO 14001 certification for all of its operations. Its Learning Institute in Pelalawan, Riau, as well as its nursery research center in Kampar, Riau are ISO 9001 certified. In addition, Asian Agri’s R&D Center in Tebing Tinggi has also obtained certification by the International Plant-Analytical Exchange at the WEPAL lab at Wageningen University in The Netherlands, for its high standards.

Aside from its success in becoming a leading CPO producer with the most advanced technology, Asian Agri is also committed to preserving the environment.

More than 80% of both owned plantations in North Sumatra, Riau & Jambi provinces & scheme smallholder plantations in Riau & Jambi provinces have been RSPO certified.

All plantations have also been ISCC-certified (International Sustainability & Carbon Certification), including plantation owned by smallholders

Out of 13 mills have received certification from ISPO (Indonesian Sustainable Palm Oil where as the remaining mills have gone through stringent ISPO audit process. It is targeted to have both RSPO & ISPO certification completed by 2015

Asian Agri, guided by its triple-bottom line principles, is committed to be reliable, responsible and sustainable production of quality palm oil and its derivative products. We operate in an environment where the welfare of the surrounding community is crucial to the sustainability of our business operation.

In April 2014, we signed the Sustainable Palm Oil Manifesto and Indonesian Sustainable Palm Oil Pledge.

The Manifesto and Oil Palm Pledge both set out the standards and commitment for Asian Agri in relation to traceability and sustainable supply chain. The commitment includes the implementation of no-deforestation, protection of peat lands and contribution towards to the social-economic development of the local community.


For further information, please contact:

Elly Mahesa Jenar  
Corporate Communications Manager  
E-mail: Elly_Mahesa@asianagri.com  
DID: +68 230 1119  
Phone: +62 811 8776 729  

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