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SMART Implements Enhanced SOPs for Sustainable Palm Oil Production – by PT SMART Tbk

Posted: Jul 01, 2010 3 minute read GAR 259 views

Jakarta, 1 July 2010 – PT SMART Tbk (“SMART”) today implements its enhanced Standard Operating Procedures (SOPs) relating to sustainable palm oil production. This is part of the company’s revitalised strategy and strong commitment towards sustainability as announced to its business partners on 4 February 2010.

The SOPs implemented today focus on land acquisition, planning and development of plantation areas, cultivation practices and established a grievance handling department. SMART also announces the appointment of PT Bumi Hijau Cemerlang, who will audit the implementation of these commitments with specific terms of reference relating to operational activities.

These SOPs ensure that SMART continues to deliver on its earlier commitments which cover three areas. Firstly, in order to contribute to the reduction of Green House Gas emissions, SMART does not convert on land with high carbon stock and does not plant oil palm trees on peat land and primary forests. Secondly, in order to contribute to conserving biodiversity, SMART does not convert land with High Conservation Value. Lastly, in order to contribute to the increase in productivity of oil palm plantations in Indonesia, SMART will focus on the continuous yield improvement in its Nucleus and Plasma plantations, i.e., SMART and small holders plantations, respectively. In addition, the company is absolutely against burning and established a zero burning policy in 1997, ahead of the Indonesian government, which subsequently established the same policy in 1999. The commitments apply to all plantations owned and managed by SMART and its parent company Golden Agri-Resources Ltd (“GAR”).

“As a responsible business, SMART has been focused on conserving biodiversity and land with high carbon stock. Our revitalised SOPs implemented today are part of the company’s continuous effort in strengthening our sustainability commitments,” said Daud Dharsono, President Director of SMART. He added: “The verification exercise of the Greenpeace reports by the independent certification bodies is on schedule. We will be sharing the entire report in July.”

Earlier, SMART appointed Control Union Certification (“CUC”) and BSI Group (“BSI”), two of the world’s leading certification bodies to verify earlier claims made by Greenpeace. These agencies are Roundtable on Sustainable Palm Oil (“RSPO”) approved certification bodies and are assisted by two Indonesian experts, Prof. Dr. Bambang Hero Saharjo and Dr. Ir. H. Yanto Santosa, from the Bogor Agricultural Institute.

Palm oil is an important product and helps to alleviate poverty in Indonesia. The industry provides direct employment for approximately 4.5 million persons in the country. In 2005, palm oil accounted for US$ 3.8 billion of exports, or 6% of non oil and gas exports of the country. In 2009, it reached US$ 10.4 billion worth of exports or 11% of Indonesia’s non oil and gas exports. In addition, the product is a vital component in the food chain, allowing the world to meet its growing demand for food. The presence of palm oil makes a wide range of products – from food to cosmetics – affordable for households.

For further information please contact:

For Indonesia:

Fajar Reksoprodjo Corporate Affairs

Tel            : (62 – 21) 318 1388
Fax           : (62 – 21) 318 1390
Cell           : (62 – 881) 123 9513
Email: [email protected]

About PT SMART Tbk (“SMART”) 

SMART is one of the largest, publicly-listed, integrated palm-based consumer companies in Indonesia which is committed to sustainable palm oil production.

Founded in 1962, SMART’s palm plantations have a total coverage area of approximately 135,000 hectares (including small holders). SMART also operates 15 mills, four kernel crushing plants and three refineries. SMART listed its shares on the Indonesia Stock Exchange in 1992.

SMART’s primary activities are cultivating and harvesting of palm trees, processing of fresh fruit bunches 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 is a subsidiary of Golden Agri-Resources Ltd (“GAR”), one of the largest palm-based companies in the world which is listed on the Singapore Exchange. SMART also manages all oil palm plantations of GAR which has a total planted area of 430,200 hectares (including small holders) in Indonesia, as at 31 March 2010.

 

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.

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