Hand in Hand: Under Sukanto Tanoto, Asian Agri works hand-in-hand with smallholders

Sukanto Tanoto is a billionaire entrepreneur renowned for his principles. Notably, he stands by the 5Cs philosophy: creating good for the Community, Country, Climate, Customer, and Company. He is unapologetically loyal to his philosophy too, to the point of insisting that the 5Cs be the compass for all his businesses. It is a decision that has, fortunately, worked out. Today Sukanto Tanoto is chairman of RGE, a resource industry behemoth that manages companies such as APRIL, Sateri, and Pacific Oil and Gas. With 60,000 people working under him and assets totalling 18 billion dollars, sticking to his philosophical guns has undoubtedly paid off.

Sukanto Tanoto’s philosophy, strategy, and way of life

Hand in Hand: Under Sukanto Tanoto, Asian Agri works hand-in-hand with smallholders

An important aspect of Sukanto Tanoto’s philosophy dictates that his companies do good for the community. To that end, he has continually worked towards ensuring his businesses continue to have good relations with local communities. More than that, Sukanto Tanoto has advocated a mindset that working for the community makes business sense as well. These efforts have, ultimately, resulted in a mutually-beneficial partnership with tangible results. Most recently, Asian Agri was hailed for its remarkable partnership with smallholders in Indonesia.

Asian Agri’s push to perfect harmony

To date Asian Agri, one of Indonesia’s largest palm oil producers, is working with self-employed farmers who have a total land area of almost 24,000 hectares. It is the result of a massive expansion of the partnership between Asian Agri and smallholders; five years ago, smallholders only accounted for 2,700 hectares of Asian Agri’s plantations. It is a phenomenal increase, driven in part by Sukanto Tanoto’s interest in doing good for the community.

The company’s partnership with self-employed farmers, including Indonesia’s plasma programme, currently stands at 60,000 hectares. Asian Agri hopes to bring that figure up to 100,000 hectares, which including its own core plantation of 100,000 hectares, would mean the company hits its 1:1 goal.

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