InfoSAWIT, JAKARTA – 2018 was the good moment for Sinar Mas Agribusiness and Food for the company achieved many things, such as, the traceability and supply change transformation, the landscape to conserve the forest and diversity.
Since the company itself got 100% traceability to the plantation (TPP) for the palm oil factories (POF) in 2017, now the company cooperates with the third sides to develop TPP to the suppliers’ POF.
The company’s commitment would always continue. In 2019 the company also helps the suppliers to be sustainable palm oil producers by making workshop “Ksatria Sawit”. The company gathered many suppliers, such as, the dealers and the factories to get training and development. It run in many provinces, such as, Riau, Lampung, North Sumatera, Aceh, Jambi, and Bangka.
“The traceability is the key to the wider efforts to help the suppliers to be better. Knowing the deeper involvement, we encouraged and trained them to increase and implement better practices. This would help the company to minimize the risk in the chain supply and make palm oil industries better, and more responsible,” Agus Purnomo, Managing Director SSSE, Sinar Mas Agribusiness and Food said in the Media Briefing Sustainability Report 2018, where InfoSAWIT attended, Tuesday (20/8/2019) in Jakarta.
He also mentioned that to encourage the suppliers to Sinar Mas Agribusines and Food (Sinar Mas), some of them could not fulfill the raw model that the company offered.. 7% of the suppliers could not fulfill the standard of traceability since 2015. “Few of the suppliers do not understand our standards to develop sustainable palm oil industries and we decided not to cooperate with them,” he said.
But the target to fulfill 100% traceability in 2020 for 449 POF (403 factories from the suppliers and 46 factories of Sinar Mas) keeps running. By the end of 2018, more than 50 suppliers fully reported the TTP achievement. If the numbers are combined with the POF of th company, it means that 60% of chain supply of the company have fully been traced up to where the fruit derived from.
It is planned that in 2019 the company would multiply about 20% to the factory suppliers to Sinar Mas and could fulfill the TTP and by the end of this year, it is hoped too, the factories could fulfill 80% of TTP while the rests or about 20% would be finished in 2020.
By the target of traceability, it is hoped to be the transparency of palm oil production that Sinar Mas produced and the evidence that palm oil could be sustainably managed and produced. “If the NGO reported the violation, we could provide the data and have debate,” Agus said.
The traceability has made better cooperation and the involvement of the third sides in the company is important to realize the chain supply transformation. The better cooperation with the suppliers showed the real outcome to support and conserve the forest reaching about 65 thousand hectares. (T2)