Sustainable Products

SUSTAINABLE PALM OIL

The Company functions to produce the sustainable palm oil to suffice consumers’ need through domestic and international market. All palm oil production activities were conducted pursuant to the Indonesian Palm Oil Certification System as stipulated in Agricultural Minister’s Regulation Number: 11/Permentan/OT.140/3/2015 on Indonesian Sustainable Palm Oil Certification System in replacing the previous regulation, Agricultural Minister’s Regulation Number: 19/Permentan/OT.140/3/2011 dated March 29, 2011 on Guidelines on Indonesian Sustainable Palm Oil Plantation. The Agricultural Minister’s Regulation Number: 11/Permentan/OT.140/3/2015 regulates the implementation of Indonesian Sustainable Palm Oil Certification System as mandatory or voluntary.


The ISPO implementation is mandatory for: (1) Plantation companies having business in the cultivation of estate crops which is integrated with processing; (2) Plantation companies having business in the cultivation of estate crops; (3) Plantation companies having business in processing of plantation products.


The ISPO implementation is voluntarily for: (1) Plasma Plantation Business with lands originating from those as allocated by the Government, Plantation Companies, community plantation or farmers’ own lands receiving the plantation development facilities through Plantation Companies; (2) Self-reliant Plantation Business which the plantation is developed and/or managed by farmers themselves; (3) Plantation Companies producing palm oil for renewable energy by eligible Plantation Companies.


Principles and criteria of ISPO for Plantation Companies consist of:

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In 2015, seven subsidiaries received ISPO certificates, namely PT Astra Agro Lestari in Tabalong Regency, South Kalimantan Province, PT Borneo Indah Marjaya in Paser Regency, East Kalimantan Province, PT Sumber Kharisma Persada in Kutai Timur Regency, East Kalimantan Province, PT Pasangkayu in Mamuju Utara Regency, West Sulawesi Province, PT Karya Tanah Subur in West Aceh Regency, Aceh Province, PT Sawit Asahan Indah in Rokan Hulu Regency, Riau Province, PT Tunggal Perkasa Plantations in Indragiri Hulu Regency, Riau Province. Therefore, 16 subsidiaries have received ISPO certificates up to 2015. The ISPO implementation is assessed by Certification Agencies: PT Mutu Agung Lestari, PT TUV Rheinland Indonesia, PT SGS Indonesia, PT British Standard International – Indonesia, and PT Anglo Japanese American.


In addition, 11 subsidiaries also have participated in certification audits, namely PT Lestari Tani Teladan in Donggala Regency, Central Sulawesi Province, PT Agro Menara Rachmat, PT Gunung Sejahtera Yoli Makmur and PT Persadabina Nusantaraabadi in Kotawaringin Barat Regency, Central Kalimantan Province, PT Mamuang in Mamuju Utara Regency, West Sulawesi Province, PT Surya Raya Lestari 2 and PT Bhadra Sukses in Mamuju Tengah Regency, West Sulawesi Province, PT Sari Aditya Loka 2 in Bungo Regency, Jambi Province, PT Sari Lembah Subur in Pelalawan Regency, Riau Province, PT Sukses Tani Nusasubur in Penajam Paser Utara Regency, East Kalimantan Province, and PT Bhadra Cemerlang in Barito Timur Regency, Central Kalimantan Province. The certification audit for PT Bhadra Cemerlang was completed in December 2015 while the certification audit reports for other 10 subsidiaries have been submitted to the ISPO Secretariat/Commission and still under the evaluation process.


The surveillance to subsidiaries already obtained ISPO certificates in 2013 & 2014 has been undertaken by Certification Agencies to PT Sari Aditya Loka 1 in Merangin Regency, Jambi Province, PT Gunung Sejahtera Ibu Pertiwi, PT Gunung Sejahtera Dua Indah, PT Gunung Sejahtera Puti Pesona, and PT Suryaindah Nusantarapagi in Kotawaringin Barat Regency, Central Kalimantan Province, PT Kimia Tirta Utama in Siak Regency, Riau Province, PT Sari Lembah Subur in Pelalawan Regency, Riau Province, PT Letawa in Mamuju Utara Regency, West Sulawesi Province; all of them were stated as still pursuant of ISPO requirements on sustainable plantation management.


Sustainable Palm Oil Certification Systems Indonesia intended to regulate the management of the ISPO certification with the aim of ensuring palm oil plantation companies and oil palm Enterprises has implemented the principles and criteria of ISPO correctly and consistently in producing sustainable palm oil. The company has formed a Sustainability Division System who is specifically responsible for coordinating the fulfillment of the requirements and the ISPO certification process in all subsidiaries.


PRODUCING SAFE AND HEALTHY PALM OIL

The company produces palm oil utilize especially for food products and food supplies. The Company is committed to produce safe and healthy palm oil by implementing Security Systems Food (Hazard Analysis and Critical Control Point / HACCP) which has been applied in 23 palm oil mills which 21 are already getting the HACCP certificate. Application Food Safety System aims to increase security of consumers using palm oil. [G4-PR1]


The implementation of this system has been started in 2008. HACCP Systems is applied to the standard application of SNI CAC/RCP 1: 2011 Recommendations of the National Practical Code - General Principles of Food Hygiene (CAC / RCP 1-1969, Rev. 4-2003, IDT) which is the revised SNI 01-4852-1998. Principle of its application is to identify, evaluate and controlling a significant danger to the security food along the processing chain.


Maintenance of the application of HACCP system is done through Internal Auditor Team establishment, implementation of Management Meeting which regularly reviewed and implementation repeated viewing. Internal Auditor teams established in each subsidiary of the Company - with members of as many as six people in each subsidiary - with the specific task do regular monitoring of the implementation of the HACCP system. Companies implementing the Management Review Meeting at least once a year to assess the effectiveness and successful implementation of the HACCP system. The company also conduct surveillance periodically by the Institute Certification to ensure that the system is applied in accordance standard.


Implementation of HACCP system guarantee the security of the CPO from contamination as well as foster a clean and healthy culture for employees. This awareness is built continuously through training which is conducted every year, including for new employees before started to work at the company.


The Company operates a palm oil processing plant, PT Tanjung Sarana Lestari located in North Mamuju Regency in West Sulawesi province. At the factory, the company implements the ISO 22000: 2009, which refers to ISO 22000: 2009 Food Security Management System - Requirements for Organizations in the Food Chain. This standard includes the application of the food security management system which combines key elements such as: Interactive communication; Management System; Basic Program Requirements (PPD); HACCP principles. Applying ISO 22000 means that the fulfillment of global standards for food safety management in the food chain is more focused and Integrated beyond those required by law. PT Tanjung Sarana Lestari been certified ISO 22000 and HACCP certificate from TUV Certification Institute Rheinland on 19 November 2015. The ISO Certificate 22000 is valid for three years, with repeated viewing held once a year.


During 2015 there were no incidents of non-compliance regulatory and voluntary coda associated with health and safety impact of products and services. Company never got a warning, fines or penalties for non-compliance or for selling products.


The Company does not undertake labeling product produced and did not survey customers satisfaction, but open to input from customers and appropriately follow up. No complaints on violation of customer privacy. [G4-PR5, PR6, PR7, PR8, PR9]


PRODUCING HALAL OIL

The Company also implemented halal standards for oil manufactured in PT Tanjung Sarana Lestari, through the application of Halal Assurance System (HAS) to ensure that the raw materials, additional material and process conducted in oil processing are free of ingredients that are forbidden according to Islamic law. PT Tanjung Sarana Lestari already getting a halal certificate from the Indonesian Ulema Council (MUI) on September 16, 2015. Certificates halal valid for 2 years and periodically ie every 6 months PT Tanjung Sarana Lestari must report progress SJH application through the mechanism of internal audit to MUI. [G4-PR1]