STRENGTHENING THE EXISTENCE OF SUSTAINABLE PALM OIL, TWO ANJ SUBSIDIARIES IN PAPUA ACHIEVED RSPO CERTIFICATION

10 Jan 2022

 

Sorong, 10 Januari 2022 – Currently, palm oil is the largest sustainable vegetable oil in the world. Indonesia, the largest palm oil-producing country, continues boosting palm oil to meet global needs. Meanwhile, a few national palm oil producers have positively recognized the global demands for sustainable palm oil, such as that carried out by the ANJ Group.

PT Permata Putera Mandiri (PPM) and PT Putera Manunggal Perkasa (PMP), subsidiaries of PT Austindo Nusantara Jaya Tbk. (ANJ), recently received certification from the Roundtable on Sustainable Palm Oil (RSPO) as a form of compliance with the requirements for sustainable and responsible palm oil. The certification assessment was carried out by PT Mutuagung Lestari, an RSPO-accredited institution. The certificate for compliance with the RSPO Principles and Criteria was issued on 23 December 2021 and is valid for five years.

ANJ has been a member of the RSPO since February 2007, and the certification for the PMP and PPM mills as suppliers is the 5th palm oil subsidiary from ANJ to be certified by RSPO. This achievement demonstrates ANJ's commitment to managing sustainable palm oil by prioritizing responsible environmental development and supporting sustainable government programs.

The scope of this RSPO certification is for one unit of PMP's palm oil mill and four plantations managed by PMP and PPM. Two plantations managed by PMP, Cassowary Gardens, with a total area of ​​4,629.41 ha, and Cenderawasih Gardens, with an area of ​​6,670.95 ha, with a total of 11,300.36 ha (including the allocation of plasma plantations), are located in Aifat Selatan and Kais Districts, Maybrat, and South Sorong Regencies. Meanwhile, plantations managed by PPM, namely Gaina Gardens, covering an area of ​​2,769.44 ha in Kais District, South Sorong Regency, and Metamani gardens, covering an area of ​​6,298.12 ha with a total of 9,067.56 Ha (including the allocation of plasma plantations), are located in Metamani District, South Sorong Regency.

In 2020 and 2021, PPM produced 23,964 MT and 42,452 MT of Fresh Fruit Bunches (FFB), while PMP produced 40,620 MT and 62,938 MT of FFB, respectively. In addition, palm oil and palm kernel oil produced in 2021 were 22,152 MT and 1,080 MT, these numbers increased from 2020 with a total of 8,879 MT and 363 MT, respectively.

“In general, our RSPO-certified palm oil uses the Mass Balance method. However, currently, the PMP mill uses the Identity Preserved (IP) method as a supply chain model where all FFB is 100% certified,” said Geetha Govindan, Deputy Main Director of ANJ.

  

Geetha said that ANJ had become a sustainable palm oil plantation company because it obtained sustainable palm oil certification from RSPO, ISPO, and ISCC. For ISPO certification, the ANJ Group has obtained certificates for its four subsidiaries, namely PT Austindo Nusantara Jaya Agri Siais (ANJAS) and PT Sahabat Mewah dan Makmur (SMM), PT Austindo Nusantara Jaya Agri Binanga (ANJA), and PT Kayung Agro Lestari. (CAL). Meanwhile, ISPO certification for PMP is still in the process of submitting the audit results certification.

"Our operational activities consistently comply with all applicable laws and regulations. Our commitment to sustainability goes beyond regulatory compliance. We aim to certify all plasma programs and partnerships under our estates by the end of 2025. We are also committed to a new dimension of sustainable palm oil certification by extending the reach of certification to independent smallholders who supply FFB to our companies. ANJ encourages and facilitates independent smallholders to obtain sustainable palm oil certification," added Geetha.

The partnership between companies and smallholders is one of the answers to reduce deforestation and ensure international standard environmentally friendly management by oil palm smallholders in Indonesia. As a palm oil company, ANJ's sustainability commitments also apply to all suppliers that involve several external parties, most of whom are independent smallholders and cooperatives.

To increase organizational capacity, ANJ supports the formation of cooperatives to improve farmers’ management and financial capacity, as well as provide training on the best plantation management that pays attention to environmental, social, legal, labor, occupational health, safety, and other sustainability aspects. In addition, as part of the company's mission to promote sustainable practices in agribusiness, ANJ is investing in smallholders to ensure that they can meet RSPO certification and traceability requirements.

As of the end of December 2021, two of ANJ's subsidiaries, KAL and SMM, have provided training to more than 1,700 plasma farmers and partnerships with a land area of more than 3,000 Ha. In addition, by the end of 2021, the ANJ Group's seven oil palm smallholder cooperative partners have become RSPO-certified smallholders.

 

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