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In 2013, 11 task forces were formed to drive six core programmes that underscore IndoAgri's Sustainability Framework. The programmes span the entire value chain behind our agricultural and edible oil products.

Programme 1 : Growing Responsibility

Our Growing Responsibly Programme sets the policy framework for high standards of corporate governance and professional integrity. All our business interactions must be conducted in an ethical, honest, and accountable manner, in accordance with prevailing laws, rules and regulations. The Board evaluates how well we manage governance and integrity based on our Code of Conduct.

This programme also supports Sustainable Agriculture and Products programme by nurturing the capacity and competencies of our employees and plasma smallholders and encouraging stakeholder engagement. In collaboration with the Policy and Enterprise Risk Management department, it provides a policy framework for decision-making and good practices, and outlines key processes for improving corporate risk management, leadership and governance.

Programme 2 : Sustainable Agriculture and Products

Our Sustainable Agriculture and Products Programme drives the adoption of sustainable practices in crop cultivation and the operation of refineries and mills. This will be done through auditing the plantation, mills and refineries against the respective sustainability standards for our various agricultural crops and products.

See Certification and Standards section for more information.

Programme 3 : Safe and Traceable Products

Our Safe and Traceable Products Programme and the supporting quality assurance processes aim to ensure that all our products are traceable, safe, and beneficial for human consumption. It also ensures that CPO, the main ingredient used in our products, is sustainably sourced. We achieve this by complying with international and local food safety standards and certifications. The same level of food safety commitment is expected of our suppliers through our Sustainable Palm Oil Policy and Responsible Supplier Guidelines.

Our products are fortified with minerals and vitamins as required by legislation. Nutritional value is enhanced for certain products as an added health benefit to customers, and for product differentiation.

Traceability

Tracing the origins of the CPO, the primary raw material used in our edible oil refineries is an important priority. Today, we are able to trace all FFB that arrive at our oil palm mills to the nucleus and managed plasma plantation and field where it had been planted. As part of our Smallholder Programme, we have introduced a barcode tracking system so that we can trace the FFB shipments from our plasma farmers, and identify the Koperasi Unit Desa (KUD) or farming organisations to which individual farmers belong.

Each consumer product that leaves our refineries bears a batch number, which can be traced back to the production line, place of manufacture, CPO source and when it was produced.

We will continue to focus on and improve our product traceability along the whole supply chain, not just for CPO, but also for all other major raw materials.

Programme 4 : Smallholders

IndoAgri fully supports the Nucleus-Plasma Scheme that was created by the Indonesian government for plantation companies (nucleus) to develop oil palm plots near their plantations for smallholders (plasma). About 50% of our oil palm plasma smallholders are managed independently, the remaining half is managed by IndoAgri.

Our Smallholders Programme covers our efforts with the plasma and ex-plasma farmers, and supports the Nucleus- Plasma scheme through the development of inclusive supply chains. We have extended our sustainability efforts beyond our nucleus plantation operations to include our smallholders. As plasma smallholders are integral to our value chain, they have to be enrolled in the ISPO and RSPO certification schemes.

This programme also sets out practical guidelines on building good relations and engaging with our local communities. To alleviate conflicts relating to land rights and to cultivate strong social relationships, we actively engage with local landowners and community leaders. The benefits have been manifold, including the mitigation of theft, protests, roadblocks and other business disruptions.

Programme 5 : Work and Estate Living

Our Work and Estate Living Programme covers aspects relating to safety, health and wellbeing of our workers and their families, and to human rights. We aim to provide safe, hygienic and healthy work and living conditions for our employees, workers and their families living on the estates. We work closely with the local governments and hospitals to provide essential medical support, facilities and infrastructure for the people living on all our estates.

Currently, basic amenities such as accommodation, proper sanitation, clean water supply, waste collection, and electricity are provided on all our estates. We also develop common facilities for the employees and their families as follows.

  • Clinics and integrated health posts
  • Recreational and worship facilities
  • Schools and day care centres for employees' children
  • Service roads connecting to the main roads
  • Designated plots in the estates for employees to planttheir own vegetables and fruits

Programme 6 : Solidarity

We have initiated many community development activities through our Solidarity Programme, which seeks to improve the quality of life in the estates through capacity building, education and financial support.

To tailor our community programmes to the needs of each community and estate, we have started conducting Social Impact assessments through an external party at each of our estates and factories. We consider factors such as the cultural background, literacy rate, living condition and economic situation of the local community before tailoring a programme that suits the developmental need.

Over the years, we have provided support to our local communities in the following areas:
  1. Infrastructure development
  2. Disaster relief
  3. Preservation of culture, including religious activities
  4. Sports events
  5. Empowerment programmes, including training and financial support for local entrepreneurs
  6. Education,including scholarships for employees' children, incentives for teachers and renovation of school facilities
  7. Environmental conservation initiatives outside the estates
We have a flagship programme, IndoAgri Sehati, that consists of several initiatives that have been implemented in group wide level, among other things are:
  1. Community health programme
    We have developed maternity programmes to promote maternal and infant health by improving the effectiveness of the posyandu. We provide expectant mothers with free prenatal checks, immunisation, essential vitamins and minerals,and other gynaecological attention at the estates'integrated health posts, known locally as the posyandu. SIMP Group has also contributed to the public health infrastructure by building medical clinics and emergency care units for the local communities.
  2. Cataract Operation
    In Indonesia, cataract is a common ailment that is adversely affecting the vision of more than two million people across all age groups. To relieve the visual impairment for the local communities, we are working with doctors from the Indonesian Army to conduct on-site cataract operations for the locals living around our estates. Since 2014, 1,035 patients in Kalimantan, Sumatra and Sulawesi had their vision successfully restored under this programme.
  3. Cleft Lip Surgery
    Cleft lip is a common medical condition affecting many children in Indonesia. A lot of families are too poor to pay for a simple operation that can transform their children's lives. As our children are the future of Indonesia, SIMP Group has decided to fully sponsor the cleft lip surgeries for at least 1,000 children in Indonesia. Parents or legal guardians of these children can approach the estate management or contact Reni (+6282111018729) or Dina (+6281219678831) for assistance. The public is encouraged to share the programme with the parents and legal guardians of children with cleft palates. Details of the programme are available at www.simp.co.id/CSR/CSR.aspx. Up until 2015, we have sponsored 32 operations for 30 children under the cleft lip programme.

Sustainability