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Golden Agri-Resources Launches Social and Community Engagement Policy

Posted: Nov 10, 2011 3 minute read GAR 0 Likes

Jakarta, Singapore, 10 November 2011

Golden Agri-Resources Limited (GAR) and its subsidiaries including PT SMART Tbk (SMART) announce today that they have launched a Social and Community Engagement Policy (SCEP) to ensure that their palm oil operations improve the lives of the communities they impact.

The SCEP builds on GAR’s Forest Conservation Policy (FCP) to ensure a holistic approach towards GAR’s sustainability commitments and will guide and shape GAR’s decisions in engaging with communities. Core to the SCEP is a commitment to ensure:

  • Free, Prior and Informed Consent of indigenous people and local communities
  • Responsible handling of complaints
  • Responsible resolution of conflicts
  • Open and constructive engagement with local, national and international stakeholders
  • Empowering community development programmes
  • Respecting human rights
  • Recognising, respecting and strengthening the rights of its workers; and
  • Compliance with all relevant laws and internationally accepted certification principles and criteria

GAR has committed to taking a multi-stakeholder approach toward developing and implementing the SCEP. The Company has engaged NGOs like The Forest Trust (TFT) and other stakeholders to provide inputs to the policy. The SCEP involved consultations with the Government of Indonesia and local stakeholders, like Yayasan Dian Desa, which were facilitated by Indonesian NGO, LINKS.

“GAR is a significant player in the palm oil industry and will continue to play our part in improving the way we engage the communities we impact. We will promote the SCEP across the palm oil industry and hope for stakeholders to come onboard to further strengthen this policy,” said Mr Daud Dharsono, President Director of SMART.

SMART also recently announced that it has received its first RSPO certification for some of its operations in North Sumatra. This is part of the plans by GAR to certify its palm oil operations as at 30 June 2010 by end 2015. GAR is also in the process of developing its Yield Improvement Policy through a multi-stakeholder approach.

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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 446,200 hectares (including smallholders) as at 30 June 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$6.7 billion as at 30 June 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
Cell: (65) 9185 0761 / (65) 9189 1039
Email: [email protected] / [email protected]

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