The Palm Scribe

Asian Agri Affirms its Long-Term Sustainable Business Strategy

Asian Agri, one of the leading Indonesian palm oil companies and that is part of the Royal Golden Eagle (RGE) group, is affirming its long-term commitment to sustainability through its Asian Agri 2030 strategy.


“Asian Agri 2030 is our long-term strategy that will become the focus of the company based on the pillars and targets that we have set. This commitment is encouraging us to look at the sustainability of our operational and business activities in a in a more detailed way,” Omri Samosir, Head of Operations Asian Agri told journalist Tuesday (12/4).


In the Asian Agri 2030 document, Asian Agri Managing Director Kelvin Tio said that the sustainability strategy provides a road map for the next ten years and is based on targets that would provide positive impact on farmers, people and the environment, while at the same time ensuring a sustainable growth.


Bernard A. Riedo, Asian Agri Director of Sustainability & Stakeholder Relations who is also Project Leader of Asian Agri 2030 said that the strategy was to ensure the continuity of business while remaining in line with the 5Cs philosophy of the business groups – Good for Community, Country, Climate, Customer, and Company.


Speaking to journalists at the same occasion, Riedo said the strategy was based on four strategic pillars – Partnership with growers, inclusive growth, positive climate and responsible and sustainable production that is in line with the UN Sustainable Development Goals (SDGs) and the aims and vision of the company.


The aim and mission of Asian Agri is to improve on the quality of life through the development of sustainable resources through a series of programs and initiatives that can provide positive contributions.


Riedo said that the company’s partnership with farmers is aimed at doubling their income through replanting programs, meeting the replanting targets and getting these farmers certified under the Indonesia Sustainable Palm Oil (ISPO). Asian Agri is also targeting the certification of 5,000 smallholders under the Roundtable on Sustainable Palm Oil (RSPO) scheme.


To achieve inclusive growth, Asian Agri pushes for the eradication of extreme poverty around the operational areas of the company, and the development of micro, small and medium scale enterprises in villages within 500,000 hectares around the operations of the company.


Asian Agri also strives to provide access to quality education through the provision of 5,000 scholarships and also optimize the collection of residual oil.


The corporate positive climate pillar, Riedo explained, is aimed at promoting sustainable palm oil through best management practices. The targets of this pillar is the use of the one-on-one approach for ecosystem restoration areas, achieving neutral emission from land usage and optimizing the development of methane gas capturing facilities at the company’s palm oil processing plants.


Asian Agri also targets a 100 percent usage of renewable energy for its entire operation. “In 2030, we are targeting that our entire energy is generated from renewable sources, that we reach a zero emission from land usage and the eradication of extreme poverty in areas around our operations,” Tio said in the Asian Agri 2030 document.


To reach a responsible and sustainable production, the company sets four targets – not clearing new areas for oil palm plantations, implementing environment-friendly practices for a sustainable operation, as well as a circular economy through the best operational practices and halving the use of pesticide.


Bogor Agriculture Institute Lecturer Bayu Krisnamurthi speaking at the same event, hailed the Asian Agri 2030 commitment as a right step that needed to be appreciated. “Hopefully, there would be more companies following in the steps of Asian Agri,” he said.


Asian Agri currently manages 100,000 hectares of oil palm plantation and provides employments for more than 20,000 people. It also partners with some 30,000 smallholders operating a total of 60,000 hectares of oil palm plantations in the provinces of Riau and Jambi.


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