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Bogor, 21 July 2023 – Three Village Unit Cooperatives (KUD) partners of Asian Agri today signed a Cooperation Agreement (PKS) for the People’s Palm Oil Replanting Program (PSR) with the The Palm Oil Plantation Fund Management Agency  (BPDPKS) and the banking sector, as distributors of PSR funding assistance, which is located at the Ibis Styles Hotel, Bogor, West Java.

The three Asian Agri partner cooperatives are KUD Sumber Rezeki, Kampung Bukit Agung, Kerinci Kanan District, Siak Regency, Riau, which is replanting its 300 hectares of land, KUD Jaya Makmur, Kampung Kumbara Utama, Kerinci Kanan District, Siak Regency, Riau covering 172 hectares, and KUD Bukit Makmur, Sencano Jaya Village, Batang Peranap District, Indragiri Hulu Regency, Riau covering 306 hectares.

BPDPKS Director of Fund Collection, Sunari, said, “As is known that PSR is a national strategic program as part of the Government’s efforts to increase the productivity of national oil palm plantations. Therefore, through the signing of the cooperation agreement between the 3 parties in this X (ten) phase, it is hoped that synergies will be established between BPDPKS, banks, and Cooperatives or Smallholder Groups to be able to accelerate the target achievement of the PSR program”.

Asian Agri’s Head of Partnerships, Rudy Rismanto expresses his appreciation for the Government’s support through BPDPKS and the banking sector in supporting Asian Agri’s partner smallholders in funding this replanting program. The funds will be very beneficial for partner farmers who are ready to replant their oil palm plantations.

Rudy added that carrying out 100% of the partner smallholder replanting program is one of the first pillar targets in the Asian Agri 2030 sustainability commitment that Asian Agri has launched since February 2022.

“In achieving the Asian Agri 2030 target, we are always committed to providing assistance to partner smallholders, both providing knowledge about the best oil palm plantation practices, providing high-quality Topaz seeds to optimize productivity, assisting the loan process to finance the process of rejuvenating smallholders’ oil palm plantations, to assisting them to do other businesses outside of oil palm plantations as alternative income,” said Rudy.

Head of Jaya Makmur Cooperative, Sudiyono, thanked the company, BPDPKS, and banks so that the signing of the PKS regarding the PSR funds is finally possible. Sudiyono further said that the partnership with Asian Agri had brought the smallholders under the cooperative he led to achieve rapid progress.

“We are very grateful to the Government of Indonesia through BPDPKS and Asian Agri, partnered company that have provided support to us from the start. We have received intense assistance from the company since entering the replanting period for our plantations. All the necessary preparations and requirements, both in the replanting process in the field to alternative economic training while our plantations are immature. The smallholders who are members of the cooperative that I lead are no longer worried and are ready to carry out replanting,” added Sudiyono.

The Head of KUD Bukit Makmur, Irwan Ritonga, also expresses his appreciation to Asian Agri for assisting smallholders to replanting their plantation. “We are very grateful to all parties so that we can smoothly carry out this signing. Hopefully the replanting process will run smoothly so that the welfare of the smallholders can increase,” said Irwan.


About Asian Agri :

Asian Agri is one of Indonesia’s largest palm oil producers. Founded in 1979, the company today manages 100,000 hectares of plantation land and employs over 20,000 people. A pioneer of the Indonesian government’s Trans-National Government Migration (PIR-Trans) program, Asian Agri currently works with 30,000 Scheme smallholders in Riau and Jambi who operate 60,000 hectares of oil palm plantations, and independent smallholders who manage more than 39,000 hectares.

Implementing a strict “no burn” policy since 1994 and best practices in sustainable plantation management, Asian Agri has helped its smallholder partners improve productivity, yield and supply chain traceability, while assisting them obtain certifications. The company’s mills are technologically advanced and energy self-sufficient, minimizing greenhouse gas emissions.

All business units of Asian Agri has the Indonesian Sustainable Palm Oil (ISPO). Currently, all Asian Agri’s plantations in North Sumatra, Riau & Jambi provinces and Scheme smallholder plantations in Riau & Jambi provinces have been 100% RSPO (Roundtable on Sustainable Palm Oil) certified. In addition, ISCC (International Sustainability & Carbon Certification) has been achieved by all plantations owned by Asian Agri and the smallholders it supports.

The company’s operations (CPO mills and KCPs) are ISO 14001 certified, while its Learning Institute and nursery research center in Pelalawan, Riau province, Indonesia are both ISO 9001 certified. Asian Agri’s laboratory at the Center for Research and Development in Tebing Tinggi is accredited by the National Accreditation Committee under the ILAC Mutual Recognition Arrangement (ILAC MRA).


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