- The MOU creates a new platform – Sustainable Agricultural Landscapes in Southeast Asia platform (SALSA) – to build capacity in sustainable production through research and training across plantation economies in Indonesia and Malaysia
- Agreement with LDA signed under the patronage of French President Francois Hollande and Indonesian Minister of Maritime Affairs and Fisheries Susi Pudjiastuti
Jakarta, 29 March 2017 – As part of an Indonesian consortium, PT SMART Tbk (PT SMART), a subsidiary of Golden Agri-Resources (GAR), and the French Agricultural Research Centre for International Development (CIRAD), today signed an MOU to boost sustainability in the agri-business sector through the creation of a new regional platform that will deliver research-based training and enhance sustainability standards in major commodity chains including oil palm.
The Sustainable Agricultural Landscapes in Southeast Asia platform (SALSA) is a public-private partnership that integrates multi-stakeholder teams into research, training and development projects to support the growth of sustainable supply chains and protect the biodiversity of Southeast Asia. Specifically, the platform aims to strengthen sustainability standards, share knowledge and innovation, and increase the availability of plantation managers trained in sustainable practices and certification standards. Other signatories to the MOU are PT Riset Perkebunan Nusantara, the Asian and Pacific Coconut Community (APCC) and PT SOCFINDO.
President Director of PT SMART, Daud Dharsono, said “The CIRAD-PT SMART partnership dates back more than 20 years, training students, plantation professionals and researchers from around the globe, while benefitting the company, its suppliers and 50,000 smallholders through yield improvement and better agronomic practices; this R&D partnership has been so successful it was renewed for another 10 years in March 2016. As the world’s second largest vertically-integrated palm oil producer, we hope new learnings through the SALSA platform positively impact the industry as a whole in its journey towards sustainably produced palm oil.”
CIRAD’s Managing Director-General, Mr. Michel Eddi said, “Agri-business is a critical and growing part of the region’s economy, and CIRAD is fully committed to working with our partners in the SALSA initiative to improve the sustainability of their supply chains. We believe the answers to ending deforestation and achieving certified, sustainable production lie in capacity-building, and will continue to channel our resources and research and development efforts to these industries to attain this.”
The agreement builds on the significant progress GAR has made in developing a sustainable, traceable supply chain. Currently, 60% of its palm oil supply is RSPO-certified, and the company is on track to deliver 100% traceable and RSPO-certified palm oil by 2020. The company effectively delinked palm oil production from deforestation with the launch of its Forest Conservation Policy in 2011.
A separate MOU has also been signed between GAR and French shipowner Louis Dreyfus Armateurs Group to develop business opportunities in maritime logistics for the next five years, with planned acquisitions and investments amounting to around USD 100 million. The President of France, Francois Hollande, and the Minister of Marine Affairs and Fisheries, Susi Pudjiastuti were present for the announcement of the agreement.
France is one of Indonesia’s most important trading partners in the European Union, with bilateral trade valued at more than $2.23 billion annually. President Hollande’s historic visit to Indonesia, the first of a French President in 30 years, signals stronger bilateral ties between the two countries as well as France’s support of the certified, sustainable development of plantation industries in the region through supportive measures.
About Golden Agri-Resources
GAR is one of the leading palm oil plantation companies with a planted area of more than 480,000 hectares (including smallholders), located in Indonesia. It has integrated operations focused on the production of palm-based edible oil and fat.
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; merchandising and refining CPO into value-added products such as cooking oil, margarine and shortening. It also has operations in China and India including a deep-sea port, oilseeds crushing plants, production capabilities for refined edible oil products as well as other food products such as noodles. For more information visit: www.goldenagri.com.sg
About PT SMART Tbk
PT SMART Tbk is one of the largest, publicly-listed, integrated palm-based consumer companies in Indonesia committed to sustainable palm oil production.
Founded in 1962, SMART’s palm plantations have a total coverage area of approximately 138,700 hectares (including small holders). SMART also operates 16 mills, four kernel crushing plants and four refineries. SMART listed its shares on the Indonesia Stock Exchange in 1992.
PT 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 segment in Indonesia.
The company has a dedicated R&D team that continuously develops the latest technology and practices to support the company’s operational sustainability, including high-yielding seeds and planting materials, developing innovative best agricultural practices, measuring impact onto the environment for an ecological intensification of oil palm cultivation, as well as proposing innovative palm-based products for customers.
About Louis Dreyfus Armateurs Group
LOUIS DREYFUS ARMATEURS Group (LDA), founded more than 160 years ago, is a French family-owned Group active in maritime transportation and services. LDA is a fully integrated shipowner, offering all services, from ship design to maritime operations managed by its own crews. Offering a worldwide presence with over 1,600 staff and 60 vessels, LDA Group is organised around two core divisions:
- Bulk Division: dry bulk transportation with LD BULK; offshore transhipment and port logistics for bulk with LD PORTS & LOGISTICS, SLM (mainly in Indonesia) and ALBA (India).
- Marine Industrial Division: Fiber optic Cable laying and maintenance (partnership with ALCATEL-LUCENT SUBMARINE NETWORKS), power and communication cable installation/protection in shallow waters particularly for marine renewable energies with LOUIS DREYFUS TRAVOCEAN, transportation of heavy and specialised cargoes with LD Seaplane for AIRBUS; seismic
For more information, please contact:
Communications Team, Golden-Agri Resources
+65 9783 1944
Head, Media & Events, PT SMART Tbk
+62 818 909 900