Sustainable Palm Oil Practices

At Sinarmas Agribusiness and Food

(GAR / PT. SMART Tbk)

Agus Purnomo
Managing Director of Sustainability and Strategic Stakeholders Engagement

May 2018
Overview of GAR

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Our Integrated Operations

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Our Global Positions

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GAR Social and Environmental Policy

ENVIRONMENTAL
MANAGEMENT

SOCIAL AND
COMMUNITY
ENGAGEMENT

WORK
ENVIRONMENT AND
INDUSTRIAL
RELATIONS

MARKETPLACE AND
SUPPLY CHAIN

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 Producing palm oil with low GHG
emission
900.00
800.00
700.00
600.00
760
500.00 kgCO2e/dry ton
CPO
400.00
300.00 390
kgCO2e/dry ton
200.00 CPO
100.00
0.00
Average
Average GHG
GHG without
without MC Average
Average GHG
GHG withwith MC
Methane
Methane Capture Capture

Emission Reduction Biogas Engine

Methane Capture Methane Capture Electricity generated
(tCO2 eq)
SRUF 89,737.0 RRMF 5,522,660 kwh
SMLF 96,792.6
PRDF 6,987,040 kwh
RRMF 70,985.7
PRDF 101,001.2 PLKF 5,905,324 kwh
PLKF 23,733.8
LIBF 5,756,200 kwh
LIBF 48,910.3
Total 431,160.6 Total 24,171,224 kwh Biogas Tank

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 Conserving Forest in Partnership with
Community

Participatory mapping is key in getting

community’s support to forest and
biodiversity conservation

Progress to date

GAR has completed:

• Participatory Mapping in 86 villages
• Participatory Conservation Plan for
further dialogue on conservation in 11
villages

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Collaboration with communities,
NGOs, and Government
 Increasing smallholder farmers’
income
Background: Approach:
1. Technical assistance: land
are managed through Good
Agricultural Practices
Poor agricultural 2. Financial incentives: loan
practices facility from Bank including
seeds, fertilizer, and living
allowance.
Smallholder Half of Smallholder
Farmers sustain Farmers only Photos:
42% of palm oil produce 2-3 tons
industry CPO/ha/year (low)

Before
Low quality seeds

Goal: Progress to date:

1. To increase productivity 1. Number of farmers and

into 5-6 tons replanted area: 430

After
farmers and 1,300 hectares
2. By 2020 to target 35,000 2. Total loan facility: 107
hectares billion from state owned
Bank

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 Tracable supply chain

Delivering UN SDGs:

Progress to date:

1. TTP for GAR owned mills: 45,000 hectares

Special workshops and training for suppliers
to help them with responsible practices
(15,000 farmers) are already mapped
2. Engagement with Koltiva: 22,000 hecatres
(11,000 farmers) are already mapped
3. Engagement with SPKS: 7 villages, 2,00
hecatres (900 farmers) are already mapped

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THANK YOU