PEKANBARU - Asian Agri, one of Indonesia’s largest palm oil producers, together with Apical, a global leader in vegetable oil processing, held a halal bihalal (post-Ramadan gathering) and media meet event. The occasion served as a platform to share the latest updates on the sustainability commitments of both companies through their respective initiatives, Asian Agri 2030 and Apical 2030, launched in 2022.

Prama Yudha Amdan, Head of Corporate Communications at Asian Agri and Apical, reaffirmed both companies’ strong commitment to sustainability, which aligns with the principles of the United Nations Sustainable Development Goals (UN SDGs).

This commitment is implemented through the Royal Golden Eagle (RGE) 5Cs philosophy: Good for Community, Country, Climate, Customer, and Company.Prama also emphasized the vital role of palm oil in Indonesia’s economy. In addition to being a major foreign exchange contributor, the palm oil industry plays a significant role in generating employment and improving the livelihoods of farmers, especially those involved in partnership and plasma programs.

“As producers and processors of Crude Palm Oil (CPO), Asian Agri and Apical are committed to conducting operations based on responsible sustainability principles, aiming to ensure every product delivers tangible benefits. CPO is used in a wide range of applications, from daily necessities like cooking oil to renewable energy summed up in our motto: #FromKitchenToJetFuel,” said Prama.

Asian Agri’s Four Sustainability PillarsAsian Agri reaffirms its sustainability commitment through four key pillars: Farmer Partnership, Inclusive Growth, Positive Climate, and Sustainable Responsible Production. Of these, the Farmer Partnership and Inclusive Growth pillars have shown promising progress, with several targets already achieved in the past three years.

Ivan Novrizaldie, Head of Sustainability at Asian Agri, stated that palm oil farmers play a crucial role in supporting the company’s sustainable operations. To this end, the company aims for all its partner farmers to be certified under the Indonesian Sustainable Palm Oil (ISPO) standard by 2025.

“In 2024 alone, we have helped 11 Village Unit Cooperatives (Koperasi Unit Desa/KUD) obtain ISPO certification. By the end of this year, we have reached 49% of our total ISPO certification target,” said Ivan.

With the spirit of #BetterPartnership, Asian Agri continues to encourage cooperatives to initiate the certification process, in line with the government’s policy mandating ISPO certification by 2025.

Under the Inclusive Growth pillar, the Asian Agri 2030 program has provided vocational training to over 1,700 individuals, achieving 34% of its target. The initiative also supports the establishment of Micro, Small, and Medium Enterprises (MSMEs) in 54 out of 159 villages located around its operational areas in North Sumatra, Riau, and Jambi.

Additionally, through the bag-to-school program, more than 1,300 educational supply packages have been distributed to elementary, junior high, and senior high school students, with the total target being 5,000 students.

Ivan affirmed that Asian Agri will continue running various programs and initiatives in collaboration with relevant stakeholders to ensure the successful achievement of its 2030 goals.

"We are confident we can meet all these targets within the next five years,” he concluded.

Apical Advances Inclusive and Responsible Supply Chain SustainabilityNow in its third year, the Apical 2030 initiative is showing substantial progress toward its set targets.Under the Inclusive Progress pillar, Apical has implemented the Sustainable Living Villages(SLV) program in 12 villages in Aceh Singkil, Aceh Province, and 3 villages in East Kutai, East Kalimantan Province, out of a total of 30 targeted villages.

The program focuses on community empowerment, poverty reduction, social inclusion, and the creation of alternative income sources for farmers. Notable initiatives include Trigona honey cultivation in Aceh and cocoa farming in East Kalimantan.

Hendra Hosea, Sustainability Manager at Apical, explained that through SLV, Apical supports independent farmers in adopting sustainable farming practices.

"We are committed to providing training that enables farmers to obtain their Cultivation Registration Certificate (Surat Tanda Daftar Budidaya/STDB) and leverage government development programs as a stepping stone toward ISPO and Roundtable on Sustainable Palm Oil (RSPO) certification,” Hendra said.

Apical has also made notable progress in its effort to support 5,000 independent farmers in achieving RSPO certification by 2030. As part of this initiative, Apical, in collaboration with Asian Agri and KAO, launched the SMILE (Smallholder Inclusion for Better Livelihood and Empowerment) program in 2020. This program aims to improve productivity, income, and certification achievements among farmers. To date, SMILE has engaged 3,489 independent farmers, with 1,373 of them successfully obtaining RSPO certification.

Implementation of Apical 2030 has reached 68% of its overall target. Under the Transformative Partnership pillar, which aims to achieve 100% compliance with the No Deforestation, No Peat, No Exploitation (NDPE) policy through collaboration with suppliers, Apical has achieved 93% compliance.

In the Climate Action pillar, Apical has reduced Greenhouse Gas (GHG) emissions by 21%, progressing toward the 50% reduction target set for 2030. Regarding the Green Innovation pillar, Apical has achieved approximately 87% of its target, with the remaining 13% currently in progress.

With these achievements, both Asian Agri and Apical remain firmly committed to promoting inclusive, environmentally friendly growth and to driving sustainable business development through continuous innovation and strategic collaboration. (Press Release)