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Apical Eyes Sustainability Certification for Palm Oil Smallholders

By March 25, 2022June 6th, 2023No Comments

Kuaro, 17 March 2022 – Dinas Perkebunan dan Peternakan of Paser Regency together with PT Kutai Refinery Nusantara (Apical Group) via the Earthworm Foundation, jointly facilitated the Memorandum of Understanding (MoU) signing for the Cooperative Partnership between PT Buana Wirasubur Sakti, one of the largest palm oil suppliers in East Kalimantan and KUD Tani Subur Rangan Village, Kuaro District.

In an effort to promote forest protection, community livelihood, palm oil traceability and legality, plantation companies are required to be certified under the Indonesian Sustainable Palm Oil (ISPO) scheme since 2011. The MOU signing will support 136 smallholder farmers of KUD Tani Subur Rangan Village, to seek certification.

The MoU is in line with the Ministry of Agriculture Regulation Number 01/Permentan/Kb.120/1/2018 concerning ‘Guidelines for Determining the Purchase Price of Bunches Fresh Fruit of Oil Palm Production by Smallholders’ and the ‘Regional Regulation of Paser Regency Number 9 of 2018’ concerning Trade Procedures and Restrictions on the Transportation of Palm Fruit, in Chapter III.

Since the commencement of the programme in October 2021, a number of activities have been implemented to help contribute to improving the livelihoods of smallholders throughout the supply chain. Activities that are currently in progress are as follows:

i. Train cooperatives on leadership best practices, ISPO certification and forest conservation;
ii. Conduct ISPO Gap Assessment and assistance to the cooperatives for ISPO certification;
iii. Facilitate in the sale and purchase of fresh fruit bunches and empty palm oil bunches; and
iv. Alternative livelihood programme for smallholders.

Djoko Bawono, the Head of Dinas Perkebunan dan Peternakan of Paser Regency witnessed the signing of MoU and expressed his appreciation to all parties involved in the realisation of the partnership. He added that the signing is also in line with the Vision and Mission of the Paser Regency which is to aid cooperatives form partnerships with oil palm companies.

This MoU signing strengthens Apical’s commitment to a sustainable supply chain and empowering smallholders by providing them with the necessary training that is essential to improve their yields and livelihoods.

The programme is aimed at helping smallholders increase yield productivity by ensuring that Good Agriculture Practices (GAP) are implemented across the supply chain and to help drive awareness of forest protection and legal requirements by providing assistance on managing plantations.

About Apical Group
Apical Group is a leading global palm oil processor. It owns a broad spectrum of the palm oil business value chain including downstream processing into oleochemicals, functional fats, and biodiesel among others for domestic use and international export. Its operations are located in Indonesia, China and Spain, and include eight refineries, four biodiesel plants, four oleochemical plants and two kernel crushing plants. Through its joint ventures, Apical also has processing and distribution operations in Dubai, India, Pakistan, Philippines, Vietnam, Myanmar, Brazil and USA.

Apical’s business is built on an extensive sourcing network in Indonesia with integrated refinery assets in strategic locations. This is reinforced by efficient logistics channels supported by Apical’s own infrastructure to deliver to local and international industrial clients comprising of food, feed and fuel brands among others. With its unique business model, Apical has been able to control product quality and address sustainability and food safety concerns, while running highly efficient operations in integrated world-class refineries and downstream processes.

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Media contact:
Corporate Communications, Apical Group