Environmentally Friendly Oil Palm Plantation


The Company has committed to manage and conserve the environment for the sake of its business sustainability. The Company’s commitment has been accommodated in its Safety, Health, and Environment (LK3) Policy, which is compliant with laws and regulations, expanded to efforts inpreventing pollutions in a spirit of continuous improvement.

Targets of the LK3 policy are to:

Achieve a GREEN Rating based on PROPER and Astra Green Company (AGC) standards.
Prevent accidents at work (Zero Accident).
Prevent land fires (Zero Burning).
Implement a clean production concept and 5K2S (Order, Tidiness, Cleanliness, Discipline, Conservation, Work Spirit, and Safety).
Improve employees’ awareness toward a safety culture.


Astra Green Company is a management standard on Safety, Health, and Environment (SHE) implemented by any subsidiary within the Astra group. This standard represents the management system of Safety, Health, and Environment (SHE) covering ISO 14001 and OHSAS 18000 standards.

The Astra Green Company also contains an assessment of final results of management (end off pipe) and the number of accidents at work in a company. Astra Green Company is always evaluated, revised, and adjusted to the update conditions on Environment, Safety, and Health at Work.

As an evaluation system, AGC uses a colored rating with the following colors, namely: GOLD, GREEN, BLUE, RED, and BLACK. BLACK is the lowest rating, while GOLD is the highest rating. A company’s rating is determined by the lowest rating in satisfying scores for Management System, Critical Point, or Legal Compliance. If one out of the three factors is not satisfied, for example the Company does not comply with the law, or a fatal accident happened, the Company can only obtain RED or BLACK rating.

The Company also assessed periodically every subsidiary’s compliance with the AGC standard. In 2015, 22 subsidiaries obtained GREEN rating, an increased number compared to 20 subsidiaries in the previous year. A BLUE rating is obtained by 13 subsidiaries. There are subsidiaries having RED and BLACK ratings which are under an improving process.


PROPER (Performance Rate Assessment Program in Environmental Management) is a controlling instrument on environmental management conducted by the Ministry of Environment and Forestry (KLHK) toward industries in Indonesia. PROPER’s objective is to improve companies’ compliance with Laws and Government Regulations related to environmental management by using incentives and disincentives as its instrument. The incentive is by disseminating information to the public about the good reputation or image of a company showing good performance in managing the environment, marked by a BLUE, GREEN or GOLD label. The disincentive is by disseminating information to the public about the bad reputation or image of a company showing poor performance in managing the environment, marked by a RED or BLACK label.

Every year, KLHK conducts assessments to companies’ performance in managing environment and gives rating in colors, namely GOLD as the highest rating in the environmental management given to companies which have already performed consistently their environmental superiority in goods or service process, done ethical business, and shown social responsibility; GREEN rating given to companies which have already performed the environmental management beyond compliance by implementing the environmental management system, using resources efficiently, and showing good social responsibility; BLUE rating given to companies which have already performed the environmental management as required by provisions of applicable laws and regulations; RED rating given to companies which have not performed as required by provisions of applicable laws and regulations; and BLACK is the lowest rating given to companies which are assessed as intentionally made actions or negligence causing pollutions or damage to the environment and breached applicable laws and regulations or neglected administrative sanctions.

In 2015, the number of subsidiaries participating in PROPER increased to 26 compared to 23 in 2014. Achievements in the area of environment in 2015 are:

In 2015, PT Letawa obtained GREEN rating for the seventh time and by the Ministry of Environment and Forestry has been decided as a PROPER model of palm oil processing group together with PT Gunung Sejahtera Ibu Pertiwi, PT Gunung Sejahtera Dua Indah, PT Pasangkayu, PT Gunung Sejahtera Puti Pesona, and PT Suryaraya Lestari 1.


Some subsidiaries received awards from stakeholders having concern in the environmental and biodiversity conservation endeavors conducted in 2015.

PT Letawa received Indonesia Green Award 2015 for its effort in conserving biodiversity and initiated a mangrove ecotourism village program in Muara Jono Subvillage, Tikke Village, Tikke Raya District, Mamuju Utara Regency, West Sulawesi Province. This effort is successful in preventing abrasion, enriching the biodiversity, and creating business opportunities from tourists’ visits with specific interest in mangrove forests. [G4-EN11,EN12,EN13]

PT Gunung Sejahtera Puti Pesona in Kotawaringin Barat Regency, Central Kalimantan Province obtained Indonesia Green Award 2015 for its initiative in integrated waste management. This initiative encourages the plantation families to make home-scale composters for processing organic waste to compost. The compost as resulted from this activity is then used for horticultural farms to produce vegetables as needed by the plantation families. [G4-EN27]

PT Gunung Sejahtera Dua Indah in Kotawaringin Barat Regency, Central Kalimantan Province obtained Indonesia Green Award 2015 for its effort in developing new, renewable energy. The Company consumed the produced biodiesel as a mix of fuel for power generators and operations vehicles in

order to reduce the fossil fuel (diesel fuel) consumption by 20%. [G4-EN6]

PT Subur Agro Makmur in Hulu Sungai Selatan Regency, South Kalimantan Province received Indonesia Green Award 2015 for its effort in conserving biodiversity by developing protected areas within the oil palm plantation areas and developing a sustainable conservation management model in a protected area of swampy vegetation as large as 90 ha.[G4-EN11,EN12,EN13]

PT Suksestani Nusasubur in Penajam Paser Utara Regency, East Kalimantan Province received Indonesia Green Award 2015 for its initiative in conserving biodiversity by developing and protecting Rangkong bird (hornbill) habitat within oil palm plantation areas. [G4-EN11,EN12,EN13]


In general, the production process in the Company comprises: oil palm cultivation to produce oil palm fresh fruit bunches (FFB); processing of FFB in palm oil mills. The palm oil processing (refinery) in PT Tanjung Sarana Lestari, Mamuju Utara Regency, West Sulawesi Province.

Inputs applied in oil palm cultivation in the plantation are fertilizers and pesticides. The Company applied fertilizers which are bought from official producers and importers. Pesticides applied are those permitted to apply and registered with the Ministry of Agriculture.

Inputs for the production process of Crude Palm Oil (CPO) are oil palm fresh fruit bunches (FFB) and water. During 2015, the Company processed 8,046,907 tons of FFB by consuming 9,107,640 m3 of water. In the production process of Refined, Bleached, and Deodorized (RBD) Palm Olein, RBD Palm Stearin, and Palm Fatty Acid Distillate (PFAD), the Company consumed 597,693 tons of CPO. [G4-EN1]


The Company adheres to clean production principles and strives to prevent pollution by reducing waste and as far as possible using waste generated from the production process by considering aspects of environmental conservation, economic feasibility, and social acceptance in accordance with laws and regulations. [G4-EN27]

One of solutions to conserve the environment is to reuse waste in different processes. The Company uses the whole waste generated from CPO production process, namely solid and liquid waste. Solid waste consists of empty bunches, fibers, and shells of oil palm. The whole waste, both solid and liquid waste, was reused in the plantation and palm oil mills.

Use of Solid Waste

Solid waste generated from processing of the oil palm fresh fruit bunches consists of empty bunches of oil palm, fiber, and shells. Empty bunches of oil palm were used as mulch by piling them up in deadlocks, between rows of oil palms, and along the circular projection of tree canopies. Shells and fibers were used as fuel in oil palm oil mills so that reducing fossil fuel consumption.

Using empty bunches of oil palm as mulch is useful to: (1) enhance the soil cation exchange capacity; (2) maintain the soil moisture; (3) improve the effectiveness of fertilizer application and additional nutrient sources, especially potassium; (4) reduce evaporation; and (5) improve soil physical properties. The composition of nutrients in oil palm empty bunches is at least Nitrogen (N): 7.4-9.8 kg/ton; Phosphorous (P): 0.6-0.7 kg/ton; Potassium (K): 20.1-21.8 kg/ton, Calcium (Ca): 1.6-4 kg/ton, and Magnesium (Mg): 1.3-1.5 kg/ton.7 In 2015, oil palm empty bunches of 1,609,381 tons were used as mulch. [G4-EN23]

Use of fibers and shells

Fibers and shells as generated from the processing of oil palm fresh fruit bunches are used as fuel for boilers producing steam to boil the oil palm fresh fruit bunches and at the same time to drive the power generating turbines to meet the electricity demands of the mill, the office, and the housing compound in the surrounding of the mill. Thus, the palm oil mills were designed for both efficiency and environmental

friendly by implementing the waste reuse principle as fuel in order to reduce fossil fuel consumption. The amount of fibers and shells used in 2015 was 482,814 tons of shells and 1,046,098 tons of fibers. [G4-EN6, EN23]

Use of Liquid Waste

The Company used the liquid waste - generated from the processing FFB to CPO - as organic fertilizer. The liquid waste has high nutrient contents, with a Biological Oxygen Demand (BOD) of 3,500-5,000 mg/liter, contains elements of Nitrogen (N): 500-675 mg/l; Phosphorous (P): 90-110 mg/l; Potassium

(K): 1,000-1,850 mg/l, and Magnesium (Mg): 250-320 mg/l. (Tobing, 2002)

Using the liquid waste as organic fertilizer shall meet several requirements, among others: (a) BOD may not exceed 5,000 mg/liter; (b) pH between 6-9; (c) Not in peatlands; (d) In soils having permeability of >1,5 cm/hour and<15 cm/hour; (e) Not in lands having groundwater surface of <2 m deep; at least 2 km from settlement; and 5 km from the palm oil mill at maximum.

Results of analysis in an accredited laboratory show that quality of pH and BOD parameters meets the quality standard, namely pH between 6 and 9, and BOD of liquid waste applied of < 5,000 mg/liter. Liquid waste as generated from the processing of FFB to CPO is used as liquid fertilizer by land application. The amount of liquid waste used as organic fertilizer in 2015 was 5,632,835 m3. The Company implements a good waste management system and oversees it strictly. During 2015, there was no significant waste spill and no impact of sewage and water overflow to bodies of water or habitats. [G4-EN22,EN23, EN24, EN26]

Hazardous, Toxic Substance Waste Management

The hazardous, toxic substance (B3) waste generated from the production process in the oil palm plantations consists of liquid waste such as used lubricants; and solid waste such as used pesticide containers, used neon bulbs, used batteries, and used dust cloths. The Company provided a Temporary

Storage Facility (TPS) to collect B3 waste which has been licensed by the Regency Government. The whole B3 waste was taken by a user/collector licensed by the Ministry of the Environment and Forestry. The B3 waste was transported by a transporter licensed by the Ministry of the Environment and Forestry and the Transportation Office. [G4-EN23, EN25]

Throughout 2015, there was no spills of hazardous, toxic substance waste (B3), and the Company managed the B3 waste starting from their storage until transportation by a third party pursuant to applicable procedures and regulation as in the Government Regulation No. 101 of 2014 on Hazardous, Toxic Substance Waste Management. [G4-EN24]

The Company strives to reduce the quantity of B3 waste by the following efforts: [G4-EN25]

a. Replace neon bulbs with LED lights in order to reduce B3 waste of neon bulbs.

b. Improve housekeeping in order to reduce B3 waste of used/contaminated dust clothes.

c. Implement the integrated pest control in order to reduce the pesticide consumption all at once reduce pesticide packaging.

The Company also implemented a HACCP (Hazard Analysis Critical Control Point) system which includes efforts to prevent transportation impacts. Vehicles transporting oil palm fresh fruit bunches shall be dedicated or in the case to be used for other purposes, they need to be thoroughly washed first until clean according to washing procedures in the HACCP system. The same applies for transporting CPO

from the mill to consumers / ports, the CPO transporting vehicles must be ensured roadworthy, not contaminated, and safe. During the reporting period, no body of water or related habitat was significantly impacted by sewage and water overflow from the organization. The Company complies with all environmental laws and regulations. [G4-EN26, EN29, EN30]


Direct Energy Consumption

The Company used direct energy from fossil fuels (diesel fuel and gasoline) for operations of plantation mechanized equipment, vehicles transporting FFB from the plantation to the mills, as fuel to start-up the FFB processing in the mills, as fuel for vehicles transporting CPO from the mills to the ports or customers, and for the Company employees’ housing compounds. In 2015, the diesel fuel consumption

for plantation and for housing compounds was 36,493,994 liters, diesel fuel consumption for the mills and offices was 3,952,479 liters, and the gasoline consumption for plantation and mills was 1,493,727 liters. [G4-EN3]

Indirect Energy Consumption

Indirect power consumption in the plantation was the electricity consumption produced by steam - or solar – driven power generators. [G4-EN3]

Energy Savings

The Company made any effort to save energy. The consumption of fossil fuel (diesel fuel) in palm oil mills was limited only to start-up the processing, and then the mills were supplied with energy from the steam-driven power generator using fibers and shells as fuel. Electric energy produced by the steam-driven power generator was used for the production process in the mills, for electricity in offices and part of employees’ housing compounds. [G4-EN6,EN7]

The Company strives toward energy efficiency through technical engineering, use of fossil fuel substitutes, and use of energy-saving equipment. Efforts in making energy efficient in 2015 were as follows: [G4-EN6,EN7]

1. Technical Engineering

2. Use of Fossil Fuel Substitutes

a. Use fibers and shells as fuel for steam boilers to produce energy to support operations in palm oil mills, offices, and employees’ housing compounds.

b. Use part of the methane gas from liquid waste as an LPG substitute for welding and cutting iron bars in the mills’ workshops.

c. Use solar-driven power generators for lighting in some locations of the plantation to reduce fossil fuel consumption

3. Use of Energy Saving Facilities.

a. Replace neon bulbs with LED lights.

b. Use biomass in stoves that is the use oil palm shells in stoves as a substitute for fuel oil for household needs.

c. Use a Genset Gasifier, an additional part in the power generator using oil palm shells as fuel to reduce fossil fuel (diesel fuel) consumption.


The use of water in the production process in the plantations is mainly to irrigate seedlings in the nursery and the planted oil palms. Water for the nursery was taken from surface water, usually rivers, while water for the oil palms relied on rain water. The Company has been conserving water sources

and seeking efficiency in using water. The Company has been planting trees in barren lands, making terraces in hilly areas, planting legumes to keep soil humidity, and implementing a surface water management system. [G4-EN9]

Water requirement for the production process in the palm oil mills was sufficed by surface water which was channeled from rivers into a reservoir to be then used as needed. The Company implemented a water management system to ensure water availability in reservoirs. The surface water consumed in the

production process in the mills in 2015 totaled 9,107,640 m3. [G4-EN8]

Water Savings

The Company keeps on taking initiatives to save water consumption, including the followings in 2015: [G4-EN10]

The Company used the surface water for the production process in palm oil plantation and palm oil mills. The surface water comes from rivers or tributaries within the plantation areas. The Company is concerned with the surface water supply sustainability for the production process sustainability. The Company maintained sources of surface water, built reservoirs, and implemented the water management equipped with watergates to control the water discharge and the level of surface water. From field observations and during the reporting period, there is no indication of impacts or problems

to surface water sources. [G4-EN9]


Monitoring Emissions of NOx, SOx, and Other Particulates The Company measured the air quality standard in palm oil mills twice a year. These measurements were needed as the palm oil mills use fibers and shells as fuel. Parameters measured were among others SOx and NOx.

Pursuant to the Regulation of Minister of the Environment No.07 of 2007, it is stipulated that the quality standard of SOx is 600mg/m3 and of NOx, it is 800 mg/m3. The measurements show that NOx and SOx emissions were still below the quality standards permitted by the government. [G4-EN21]

Taken from 26 mills monitored

The commitment to become an environment-friendly Company was reflected in efforts to reduce emissions by among others:

• It replaced single-stage turbines with multi-stage turbines which are more efficient and have lower Specific Steam Consumption (SSC). This turbine replacement needs to be followed with the replacement of steam boilers with those of larger capacity. These efforts resulted in an emission reduction by 0.01 ton/year in each related mill. This reduced emission load originated from the reduced biomass burning.

• A preventive maintenance program was implemented using the multicyclone scheduled maintenance to minimize emissions in order to be still within the quality standard.