AGRICOM, JAKARTA – As one of Indonesia’s largest palm oil companies and a leading global vegetable oil processor, Asian Agri and Apical reaffirm their sustainability commitments through AsianAgri2030 and Apical2030, launched in 2022.
Through these initiatives, both companies aim to make a positive impact on the climate, environment, and society while driving sustainable business growth.
Johan Kurniawan, Director of Corporate Affairs at RGE Palm Business, emphasized that their sustainability commitment aligns with the United Nations Sustainable Development Goals (UNSDGs) and follows RGE’s 5Cs business philosophy—Good for the Community, Country, Climate, Customer, and Company.
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“As a palm oil producer and processor, Asian Agri and Apical operate with responsible sustainability principles, ensuring that their products bring real benefits—from household cooking oil to aviation fuel. Simply put, from the kitchen to jet fuel,” Johan stated during a media gathering and fast-breaking event attended by Palmoilmagazine.com.
The Strategic Role of Palm Oil in National Development
Johan highlighted that palm oil is a key driver of Indonesia’s economy, contributing to foreign exchange earnings and job creation. The industry plays a crucial role in improving the welfare of smallholder farmers, particularly those engaged in partnership programs.
To support a sustainable palm oil industry, Asian Agri has launched long-term strategies focusing on four main pillars:
- Partnerships with Farmers
- Inclusive Growth
- Climate-Positive Actions
- Responsible and Sustainable Production
After two years, Asian Agri has made significant progress, especially in farmer partnerships and inclusive growth. Several key targets under these pillars have advanced as expected.
Supporting Smallholder Farmers and Inclusive Growth
Leonardo Yapardi, Sustainability Manager at Asian Agri, stressed the importance of smallholder farmers in the company’s sustainability goals.
“Asian Agri is committed to certifying all its partner farmers under the Indonesian Sustainable Palm Oil (ISPO) certification by 2025. As of 2024, we have helped 11 farmer cooperatives (KUDs) obtain ISPO certification, covering 49% of our target,” he said.
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Through the #BermitraLebihBaik (Better Partnership) initiative, Asian Agri encourages KUDs to begin the certification process in line with Indonesia’s mandatory ISPO policy by 2025.
For the Inclusive Growth Pillar, Asian Agri 2030 has reached 34% of its target by providing vocational training to over 1,700 individuals and supporting the establishment of small businesses (UMKMs) in 54 out of 159 villages across North Sumatra, Riau, and Jambi. Additionally, the Bag-to-School program has distributed over 1,300 education kits to elementary, middle, and high school students, with a target of 5,000 beneficiaries.
Leo reaffirmed that Asian Agri will continue working with stakeholders to achieve its 2030 goals. “We are optimistic about reaching all our targets within the next five years,” he concluded.
Apical 2030: Empowering Villages and Farmers for a Sustainable Future
Entering its third year, Apical 2030 has made significant progress toward its sustainability targets. Under the Inclusive Progress Pillar, Apical has reached 12 villages in Aceh Singkil and 3 villages in East Kutai as part of its Sustainable Living Villages (SLV) program. This initiative aims to empower communities, reduce poverty, and promote financial inclusion. It also encourages farmers to adopt alternative income sources, such as Trigona honey farming in Aceh Singkil and cocoa cultivation in East Kutai.
Hendra Hosea, Sustainability Manager at Apical, explained, “Through the SLV program, we are committed to helping independent farmers achieve sustainable palm oil cultivation. This includes training them in sustainable farming practices to obtain Surat Tanda Daftar Budidaya (STDB) registration, which enables access to government development programs and serves as a foundation for ISPO and Roundtable on Sustainable Palm Oil (RSPO) certification.”
Apical has also made progress in supporting 5,000 independent farmers to obtain RSPO certification by 2030. To achieve this, Apical, in collaboration with Asian Agri and KAO, launched the SMILE (Smallholder Inclusion for Better Livelihood & Empowerment) program in 2020. The initiative focuses on improving productivity, increasing income, and facilitating RSPO certification. So far, 3,489 smallholder farmers have joined SMILE, with 1,373 already achieving RSPO certification.
Progress in Climate Action and Green Innovation
Apical 2030 remains on track to meet its key sustainability goals:
- Transformative Partnerships: 93% progress toward its target of 100% No Deforestation, No Peat, No Exploitation (NDPE) compliance among suppliers.
- Climate Action: Achieved a 21% reduction in greenhouse gas (GHG) emissions, aiming for a 50% reduction by 2030.
- Green Innovation: 87% of sustainability-driven innovations have been implemented, with 13% still in progress.
Hendra concluded, “We are committed to driving sustainable operations through innovation and collaboration. With steady progress, we are confident in achieving all our targets by 2030.” (P3)
