Smallholders receive IDR 2.6 Billion from Tanoto’s Asian Agri in Palm Oil Partnership

Asian Agri, the major Palm Oil producer founded by businessman and entrepreneur, Sukanto Tanoto, recently concluded a 2.6 billion Indonesian Rupiah transaction with more than 29,000 grassroots partners at a Premium Sharing ceremony attended by the Indonesian Trade Minister.

Since its founding in 1979, Asian Agri has gone from strength to strength. Today, the company manages over 100 000 hectares of palm plantations, and has entered into partnerships with the Association of Village Unit Co-Operatives (KUD), in accordance with Mr Tanoto’s vision of community development.

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A Sukanto Tanoto philosophy, creating partners in sustainably managed plantations

KUD represents 29 000 smallhold farmers in Indonesia’s Riau and Jambu provinces who manage a total of 60 000 Ha of palm plantations. Through their hard work and entrepreneurial spirit, these small businesspeople have become important partners in the production of sustainable palm oil for export to markets across the globe.

Speaking at the Premium Sharing ceremony Indonesia’s Trade Minister, Enggartiasto Lukita, recognized the excellent partnership between small farmers and Asian Agri, which is one of the biggest players in the palm oil industry. The success of these partnerships is the realization of Sukanto Tanoto’s philosophy of a business that is good for country, climate, community and company.

Asian Agri director Freddy Widjaya attended the ceremony on the company’s behalf and presided over the completion of the large transaction that took place. Noting the enthusiasm for sustainably produced palm oil in the European market, he expressed his optimism about the future of this very successful partnership.

To find out more about this and other uplifting projects being undertaken by the RGE group of companies, please follow Mr Sukanto Tanoto via social media on Facebook, Twitter, Tumblr, About.me or LinkedIn.

A little less combustion, a lot more cooperation: How Sukanto Tanoto’s corporate philosophy doused the forest flames

People used to have poor impressions of companies dealing with natural resources – they would be accused of pillaging the environment, desecrating the lands, and leaving nature in a much worse shape than before. That might have been how it used to be, but not anymore. Under business giant Sukanto Tanoto’s corporate philosophy of the 4Cs –creating good for the community, country, climate, and the company – Mr Tanoto’s companies have set an example for the new way to go in natural resources management.

Working hand in hand: Making Riau fire-free, together.

Asian Agri, one of Asia’s leading palm oil producers with an annual palm oil production of one million tonnes, embraces Sukanto Tanoto’s 4Cs in their day to day operations. Asian Agri most recently showed their commitment to the climate and communities in which they operate, when they awarded 4 villages in Riau (where the Asian Agri group operates) for meeting the standards set out in the Fire Free Village Programme (FFVP). A total of seven villages took part in the programme, which meant that more than half the villages under the FFVP received an award. Under the programme, villages are encouraged to focus on aspects such as fire detection, suppression, awareness, and education.

A little less combustion, a little more cooperation: How Sukanto Tanoto’s guiding philosophy doused the forest flames

From a dream to reality: Commitment to the community, commitment to the climate.  

The FFVP, first initiated in July 2015, was pioneered by APRIL, one of the business groups managed by RGE. RGE – founded by philanthropist and entrepreneur Sukanto Tanoto – manages companies including Asian Agri, Bracell, and Sateri, amongst others; their operations span across the globe in locations such as Indonesia, China, Canada, and Singapore.

The reward awarded to the four villages for their sustainable and safe practices stood at Rp100,000,000 (approximately USD7,530) each, totalling Rp400,000,000 (approximately USD30,120) for this round – funds which will go into developing the infrastructure and community of these villages. Under Sukanto Tanoto’s leadership and vision, these rewards have gone, and will continue to go a long way in keeping RGE and its business groups’ longstanding commitment in ensuring that the environment and communities partnered are empowered economically and sustainably, for the long run.

Asian Agri’s Training Course for New Generation of Palm Oil Planters

Asian Agri

The production of palm oil makes up a large part of the Indonesian economy. Its many different uses make it an essential ingredient in a vast variety of everyday consumer products ranging from lipstick, to hold the colour, keep it from melting easily and to give its smooth appearance, to ice cream, which helps to make it smooth and creamy, to biodiesel, a renewable source of energy. Currently Indonesia is the world’s largest supplier of palm oil.

Asian Agri, founded by Indonesian businessman and entrepreneur Sukanto Tanoto, was established in 1979 as the palm oil branch of the global business group Royal Golden Eagle (RGE), founded by Sukanto Tanoto in 1972.

Asian Agri is one of Indonesia’s leading crude palm oil producers, with an annual production capacity of one million tons per annum. It manages 27 palm oil plantations and 20 palm oil mills, employing 25 000 workers throughout its operations.

The hard work and success of the company has led to it receiving ISO 14001 certification for each of its operations. The certification proves to stakeholders, consumers and staff that the company is aware of its environmental obligations and is constantly trying to reduce its environmental impact.

The Asian Agri Learning Centre and its training programme

Asian Agri Learning CentreIn 2002 Asian Agri launched the Asian Agri Learning Centre (AALI) to train new generations of palm oil planters in environmentally friendly practices and sustainable cultivation and operations.

These trainees come from various parts of the Riau, Jambi and North Sumatra provinces, and are put through a six month informative and systematic training programme which introduces them to the basics of palm oil cultivation. All trainees receive a salary from Asian Agri during the training programme.

The programme teaches those wanting to create a future in the thriving Indonesian palm oil business the skills and knowledge needed to do so in a sustainable and environmentally responsible way.

AALI takes in around 100 trainees on an annual basis, and has successfully trained 2200 graduates up until now.

For more information about Sukanto Tanoto and Asian Agri please visit:

https://www.youtube.com/watch?v=Q6DI2Tkk4Wk

http://www.aprilasia.com/en/sukanto-tanoto

http://sg.linkedin.com/in/sukantotanoto

Agri business founded by Sukanto Tanoto fights illness on Indonesia’s east coast

While the rains bring growth for crops in the village of Bukit Gajah, illnesses including influenza take their toll on the community – but Asian Agri, a company started by entrepreneur and pioneer Sukanto Tanoto that produces premium palm oil in the region, is determined to restore local residents to good health.

The Riau region has abundant rich soil and local farmers who are some of the world’s best oil palm cultivators, but the region suffers from periodic outbreaks of illness due to the wet conditions created by monsoon season. In order to change this situation for the better, PT Inti Indosawit Subur (a subsidiary of Asian Agri) has been sponsoring free medication for local residents since November 2016.

Tanoto Foundation’s vision and mission realized through sustainable development

Following the example of RGE founder Sukanto Tanoto and his focus on community health as a pillar of sustainable development, Asian Agri is actively giving back to the community that lives and works in the vicinity of its large palm oil farming operations.

The results of their efforts are already being felt by villagers like Roeta (55) who felt empowered to improve her health after a thorough medical consultation with visiting doctors. The project has also received the endorsement from Bambang Mujianto, local community leader and Village Secretary. In his words, The role of the company to improve the quality of community resources through a free inspection is very much needed”.

This kind of real impact and visible result is further proof that Mr. Tanoto and the Tanoto Foundation’s vision for a healthy, educated and economically empowered local community can be realized.

Find out more about this and other projects by following Mr. Sukanto Tanoto via social media on Facebook, Twitter, Tumblr, About.me or LinkedIn.

asian agri tanoto foundation

Sources:

http://www.inside-rge.com/corporate/help-time-rain/

Image Credit:

http://www.inside-rge.com/wp-content/uploads/2016/12/Periksa-Kesehatan-Gratis_Feature_Image.jpg

Asian Agri Practises Environmentally Sustainable Pest Control Methods

Asian Agri is one of the largest palm oil producers in the world, and forms part of the Royal Golden Eagle group of companies, founded by Sukanto Tanoto in 1973. Asian Agri manages 28 palm oil plantations, which cover a total area of 160 000 hectares, and 19 palm oil mills.

The company is focused on environmental sustainability throughout all their business ventures, and is aware of the important influence that nature and a healthy environment can have on a sustainable and productive plantation.

Various collaborative programs have been introduced to the areas surrounding the company’s plantations. They provide free medical care and health checks in rural villages, encourage smallholders in the palm oil business to expand their income through various types of agribusiness through the Training of Trainers program, team up with the Tanoto Foundation, founded by entrepreneur and philanthropist Sukanto Tanoto, to hand out scholarships to students of all ages and have initiated the Fire Free Village program in an effort to help stop deforestation.

When it comes to pest control on their palm oil plantations, Asian Agri has been increasing its efforts to avoid using chemicals by implementing Integrated Pest Management within their operations. By developing pest control solutions that are both sustainable and environmentally friendly, and in no way disturbs the existing eco system, as well as through careful monitoring of pest populations, they are mostly successful in eliminating the use of chemical pesticides.

Some of the most common pests found on the plantations are rhinoceros beetles, leaf eating caterpillars, woolly caterpillars, bunch moths, termites and rodents.

One of the solutions is to use owls to keep the rodent population in check. Rodents are natural prey for the owls, and it is said that one owl can eat up to four of them per night. In each plantation using this method of pest control, one owl house has been built per square hectare of plantation to combat the rodents.

Caterpillars are also a large concern in the palm oil plantations and to combat these pests without resorting to using chemicals, hibiscus flowers are planted amongst the palm trees to lure the caterpillars from eating the palm leaves.

asian agri sustainable pest control

Apical and Asian Agri Join to Help Smallholder Farmers Reach Improved Results

On May the 13th, at the second Singapore Dialogue of Sustainable World Resources, the main theme was “Commodities Outlook: Impact on Falling Prices” and four expert panelists were invited to talk about the impact of global commodity prices on the local plantation industry in Asia.

Among them were the president of Apical Group, Dato Yeo How, and the CEO of Idofood Agri Resources Ltd, Mark Wakefold.

The main highlight of the meeting was an introduction to a newfound partnership between Asian Agri and Apical Group, through a project that promises a 50% increase in the yields obtained by local smallholder farmers in the palm oil industry.

A Brand New Initiative from Asian Agri and Apical The two corporations have announced that they will be working together to distribute a new generation of oil palm seedlings that is expected to substantially increase yields, once smallholders replant their aging palm trees.

Asian Agri and Apical are two of the most important companies in the Indonesian palm oil industry, the latter being one of the largest exporters of palm oil in Indonesia, while the former is the main corporation that handles a large part of the natural palm oil resources throughout the entire country.

Dato Yeo has characterized this move as being one of the most vital initiatives for improving cost efficiency and productivity in the wake of diminishing international commodity prices. He maintains that the situation calls for an increased focus on improving yields in the areas where plantations already exist, rather than trying to expand planting efforts to a larger region.

This decision is considered to be a step forward towards better sustainability, particularly because Indonesia is a growing industrial country and the palm oil industry faces significant challenges, such as labor shortages and increased costs.

The New Generation Oil Palm Seedlings. The proposal for distributing a new generation of oil palm seedlings has been received with great interest at the Singapore Dialogue, particularly due to the remarkable potential for greater yields and increased profits.

Basically, we are looking at a widely increased level of land productivity in the next few years and the potential for a 200% increase in profits – owed largely to the years of research and development done by the Asian Agri Research Institute. The seedlings are to be planted in the place of older, aging palm trees, thus maintaining the possibility for a large enough harvest during the transition period,and the promise of a massive increase in yields for the next few years.

Asian Agri and Apical are both confident that this bold new move is a step in the right direction and it will continue to provide a foundation for expansion for the local palm oil industry.