SUPPORTING SUSTAINABLE OIL PALM FARMERS, SMM DISTRIBUTED PALM OIL PREMIUMS TO FIVE COOPERATIVES IN BELITUNG

01 Apr 2022

 

Belitung, 1 April 2022 – PT Sahabat Mewah dan Makmur (SMM), a subsidiary of PT Austindo Nusantara Jaya Tbk (ANJ), distributed premiums from the sale of certified palm oil worth Rp 157,281,394 to five cooperatives on Thursday (31/3) at the ANJ Learning Center in Belitung.

The five cooperatives that received premiums for sustainable palm oil are the Mitra Lestari Cooperative (KML), the Mitra Anugrah Cooperative (KMA), the Sambar Jaya Makmur Cooperative (KSJM), the Berimpun Prosperous Cooperative (KBS), and the Lindong Raya Cooperative (KLR) which houses 340 farmers on Belitung Island. Last year, SMM provided a premium of Rp 19,677,149 for three cooperatives, namely the Lestari Mitra Cooperative (KML), Anugrah Mitra Cooperative (KMA), and the Sambar Jaya Makmur Cooperative (KJSM).

Juli Wankara Purba, Resident Director of SMM, said that the CPO sales premium was given to partner farmers because they already have RSPO (Roundtable on Sustainable Palm Oil) certification. SMM's sustainable palm oil plantation practices help smallholders who are members of partner cooperatives to better understand the global palm oil requirements system. Through best and sustainable farming practices, this can lead to positive results.

“The distribution of premiums to smallholders aims to continue to motivate farmers in implementing best plantation practices for managing oil palm plantations so that they can continue to maintain the certifications obtained. In addition, the company's partnership with smallholders can be one of the answers to reduce deforestation and ensure international standard environmentally friendly management by oil palm farmers which is also in line with the company's ESG Ambition," said Geetha Govindan, Deputy Director of ANJ, who was also present to open the awarding ceremony for the sustainable palm oil premiums distribution.

SMM plantations are oil palm plantations that have received certification from the Roundtable on Sustainable Palm Oil (RSPO) with an area of ​​599.5 hectares of farmers' plantations receiving guidance. In addition to being RSPO certified, SMM's plantations have also received certification from Indonesian Sustainable Palm Oil (ISPO).

Heriadi Manoppo, Chairman of the Berhimpun Sejahtera Cooperative (KBS) said that the results from premium sustainable palm oil have motivated farmers to do better in managing their plantations.

“The cooperation with SMM that has been well established so far has produced positive results for the sustainability of the cooperative and our members. We will use the distribution of premium value as well as possible so that it is beneficial for the development of cooperatives in the future so that they are more sustainable," said Heriadi.

The awarding ceremony for sustainable palm oil premiums distribution was also attended by Marlina, a representative of the Head of the East Belitung Plantation and Food Service, who said that in addition to obtaining certification, managing plantations sustainably also allows farmers to get increased production and income, as well as contributing a positive impact on the environment.

Nina Agustini, a representative from the East Belitung Cooperatives and SMEs Service, was also present. “Partnership programs must be able to provide benefits. Not only for partners but also contributing to tangible benefits to the environment," said Nina.

Previously, on March 22, PT Kayung Agro Lestari (KAL), a subsidiary of ANJ located in Ketapang, West Kalimantan, had distributed sustainable palm oil premium of a total of Rp 480,336,648 to 642 farmers under the auspices of the Laman Mayang Sentosa Cooperative (LMS). The premium value distributed by KAL this year increased by 48% from the previous year.

As additional information, all of ANJ's palm oil products are processed according to sustainability standards that are guided by the RSPO principles and criteria. ANJ has a target to certify all plasma and partnership programs under ANJ's plantations by the end of 2025.

 

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