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GAR and SMART launch Yield Improvement Policy to reduce impact on land

Posted: Feb 16, 2012 4 minute read GAR 0 Likes

Jakarta, Singapore, 15 February 2012 – Golden Agri-Resources Limited (GAR) and its subsidiaries including PT SMART Tbk (SMART) today announce that they have launched a Yield Improvement Policy (YIP) which will leverage on technology and innovation to improve the Company’s CPO yield per hectare (ha). Increasing productivity will enable GAR to produce more palm oil from less land, reducing the impact of the palm oil industry on the environment. Higher yields will also help improve the livelihoods of smallholders and at the same time reduce the pressure on new land opening.

The YIP is jointly developed with The Forest Trust (TFT) and applies to GAR’s total cultivated area of 442,500 ha as at 31 Dec 2010, which includes 61,000 smallholders with a total of 90,300 ha. GAR has been leading the industry in palm oil productivity. By 2015, the Company aims to achieve an average CPO yield of 5.8 tonnes/ha and 5.6 tonnes/ha for its own plantations and smallholders respectively, from palm oil trees in the prime age of 7 – 18 years. This is a 12% increase from the average CPO yield achieved by GAR and its smallholders in 2010. The average CPO yields for the Indonesian industry and Indonesian smallholders in 2010 are 3.8 tonnes/ha and 3.4 tonnes/ha respectively.

The YIP focuses on the Company’s best practices in planting material, agronomical practices, plantation management and land suitability with the following aims:

  • Planting Material: Use high-yielding planting material to ensure improved yield per hectare
  • Agronomical Practices: Optimise the use of fertilisers, minimise the use of pesticides, mitigate the possible impact of pest control on the environment and continue to research and investigate to find ways to phase out the use of chemical fertilisers and pesticides
  • Plantation Management: Continue to push the frontiers of innovation to enhance the productivity of palm oil production in GAR estates as well as in smallholdings
  • Land Suitability: Prioritise the development on mineral soils with suitable climate and other standard agricultural practices

GAR is committed to taking a multi-stakeholder approach toward developing and implementing the YIP. This will include ongoing consultations with the Government of Indonesia, palm oil associations, academics, research institutions, civil society organisations, key players in the Indonesian palm oil industry and local stakeholders. The consultations are aimed at providing a platform for all stakeholders to share experiences and challenges with regard to increasing productivity in the palm oil industry in order to move the industry forward in sustainable palm oil production.

Daud Dharsono, President Director of SMART said: “We are committed to increasing the productivity of our palm oil, in order to use land more effectively. This is a key factor in ensuring the long-term growth of the palm oil industry and improving sustainability. By focusing on the common ground and an open process involving multi-stakeholders, we can ensure a constructive dialogue to develop solutions for sustainable palm oil production.”

The YIP is part of GAR’s holistic approach to sustainability which includes the launch of a Forest Conservation Policy (FCP) and a Social and Community Engagement Policy (SCEP) in 2011. The FCP was launched together with TFT to ensure a no-deforestation footprint and the conservation of High Carbon Stock (HCS) forests in GAR’s operations. Ultimately, the conserved HCS area can revert to its natural ecological function as a forest.

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About Golden Agri-Resources Ltd (“GAR”)

GAR is the world’s second largest palm oil plantation company with a total planted area of 448,900 hectares (including smallholders) as at 30 September 2011, located in Indonesia. It has integrated operations focused on the production of palm-based edible oil and fat.

Founded in 1996, GAR is listed on the Singapore Exchange since 1999 with a market capitalisation of US$5.8 billion as at 30 September 2011. Flambo International Ltd, an investment company, is GAR’s largest shareholder, with a 50% stake. GAR has several subsidiaries, including PT SMART Tbk which is listed on the Indonesia Stock Exchange since 1992.

GAR is focused on sustainable palm oil production. In Indonesia, its primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil (“CPO”) and palm kernel; and refining CPO into value-added products such as cooking oil, margarine and shortening. It also has integrated operations in China including a deep-sea port, oilseeds crushing plants, production capabilities for refined edible oil products as well as other food products such as noodles.

 

About PT SMART Tbk (“SMART”)

SMART is one of the largest, publicly-listed, integrated palm-based consumer companies in Indonesia with a total planted area of 138,100 hectares (including smallholders) as at 30 September 2011. It has integrated operations focused on the production of palm-based edible oil and fat.

Founded in 1962, SMART is listed on the Indonesia Stock Exchange since 1992. SMART is a subsidiary of Golden Agri-Resources Ltd (“GAR”), the world’s second largest palm oil plantation company which is listed on the Singapore Exchange.

SMART is focused on sustainable palm oil production. Its primary activities include cultivating and harvesting of oil palm trees, processing of fresh fruit bunch into crude palm oil (“CPO”) and palm kernel, and refining CPO into value-added products such as cooking oil, margarine and shortening.

Besides bulk and industrial oil, SMART’s refined products are also marketed under several brands such as Filma and Kunci Mas. Today, these brands have been recognised for their high quality and command significant market share in their respective segmentation in Indonesia.

SMART also manages all oil palm plantations of GAR. This relationship benefits SMART with its economies of scale in plantation management, information technology, research and development, sourcing of raw material, and access to a wide domestic and international marketing network.

 

For further information please contact:

For Indonesia/ Singapore:
Claire Yong/ Ang Shih-Huei Pelham Bell Pottinger Asia
Tel: (65) 6333 3449
Fax: (65) 6333 3446
Mobile: (65) 9185 0761 / (65) 9189 1039
Email: [email protected] / [email protected]

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