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Apical Eyes Sustainability Certification for Palm Oil Smallholders

By March 25, 2022No 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.

For more information, please visit www.apicalgroup.com

Media contact:
Corporate Communications, Apical Group
Email: corpcomms@apicalgroup.com

Di Apical Group, komitmen kami terhadap keberlanjutan didukung penuh dimulai dari jajaran managemen teratas. Presiden Apical didukung oleh Direktur Keberlanjutan bersama seluruh kepala bisnis, memastikan keberlanjutan terintegrasi dalam unit bisnis dan fungsional, dan tertanam dalam nilai dan inisiatif inti perusahaan.

Topik keberlanjutan dibahas pada rapat dewan yang diadakan setiap tiga bulan. Kami juga memiliki tim keberlanjutan yang berdedikasi berbasis di Kuala Lumpur; Malaysia, dan Indonesia; Pekanbaru, Dumai, Medan, Jakarta dan Balikpapan. Tim Keberlanjutan ditugaskan untuk menerapkan dan memantau komitmen kami melalui keterlibatan dan kolaborasi pemangku kepentingan yang konstruktif.

Selain itu, kami didukung penuh oleh departemen Sosial, Keamanan, dan Perizinan (SSL) khusus di setiap unit bisnis yang kami miliki, untuk menangani masalah sosial dan perizinan sesuai dengan peraturan nasional serta kebijakan keberlanjutan Apical. Tim juga mengawasi program Tanggung Jawab Sosial Perusahaan (CSR) untuk mendukung penghidupan yang lebih baik di masyarakat setempat.

Mencapai tujuan keberlanjutan membutuhkan lebih dari sekadar kolaborasi dengan pemangku kepentingan utama kami. Kolaborasi lintas industri dan perusahaan sejenis juga penting dan karenanya, kami terus mencari dan berpartisipasi dalam kemitraan baru, keanggotaan industri yang relevan, dan skema sertifikasi.

Kami berpartisipasi dalam skema keanggotaan dan sertifikasi industri seperti Tropical Forest Alliance 2020, Roundtable on Sustainable Palm Oil (RSPO), termasuk P&C Review Taskforce RSPO dan National Interpretation Working Group RSPO Indonesia, International Sustainability and Carbon Certification (ISCC), dan Indonesian Sustainable Palm Oil (ISPO).

Dato' Yeo How

PRESIDEN APICAL GROUP

At Apical Group, our commitment to sustainability stems right from the top. Apical’s President is supported by the Director of Sustainability and various business heads, to ensure sustainability is integrated within business and functional units, and embedded in the company’s core values and initiatives.

Sustainability topics are discussed at Board meetings held quarterly. We also have dedicated Sustainability teams based in Kuala Lumpur, Malaysia, and Pekanbaru, Dumai, Medan, Jakarta and Balikpapan in Indonesia. The Sustainability teams are tasked with implementing and monitoring our commitments through constructive stakeholder engagement and collaboration.

In addition, there is also a dedicated Social, Security and Licensing (SSL) department in each refinery we own, to handle social and licensing matters in compliance with national regulations as well as Apical Sustainability Policy. The team also oversees Corporate Social Responsibility (CSR) programmes to support better livelihoods in local communities.

Achieving sustainability goals requires more than just collaboration with our key stakeholders. Collaboration across industries and peer companies is also crucial and hence, we constantly look for and participate in new partnerships, relevant industry membership and certification schemes.

We participate in industry membership and certification schemes such as the Tropical Forest Alliance 2020, Roundtable on Sustainable Palm Oil (RSPO), including the RSPO P&C Review Taskforce and the RSPO Indonesia National Interpretation Working Group, the International Sustainability and Carbon Certification (ISCC), and the Indonesian Sustainable Palm Oil (ISPO)

Dato' Yeo How

APICAL GROUP PRESIDENT