Asian Agri has strengthened its commitment to responsible sourcing for its supply chain, by implementing a policy that requires Asian Agri's independent smallholders and third-party palm oil suppliers to provide legal documentation of its Fresh Fruit Bunches (FFB) sources. This will ensure that the company's FFB supply comes from legal sources – preventing encroachment of natural forest and protected areas, stopping illegal cultivation activities, and establishing a sustainable supply chain.
"Asian Agri believes that this is a win-win solution for all parties and also encourages other independent smallholders to get certified and ensure that their FFB is acceptable in the international market," said Kelvin Tio, Managing Director of Asian Agri.
Asian Agri is committed to applying this policy, in order to remove illegal and unknown FFB sources from its supply chain and processing facilities in Indonesia. The company will be continuously refining its due diligence system, in verifying the FFB source, to ensure its compliance with applicable legal requirements.
One of the top Indonesian producers of crude palm oil (CPO), Asian Agri has operated in 3 provinces in the Sumatra Island since 1979. The company manages 100,000 Ha of land and partners 29,000 smallholder families in Riau and Jambi who operate 60,000 Ha of palm oil plantation. Asian Agri’s success in becoming one of the leading CPO companies has been acknowledged internationally with the ISO 14001 certification for all of its operations. As with all of the other companies owned by Sukanto Tanoto and RGE, Asian Agri is dedicated to employing sustainable development and manufacturing processes.
Asian Agri has long been a supporter in protecting the environment. The company has been a member of the RSPO since 2006 and will continue supporting its farmers in obtaining RSPO certification. The company is also one of the largest ISCC (International Sustainability and Carbon Certification) crude palm oil producers in Indonesia, in-line with the EU Renewable Energy Directive Standards.