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PT Astra Agro Lestari Tbk (AALI), a palm oil company, is dedicated to implementing a sustainable innovation program to foster long-term business growth.
Santosa, the President Director of Astra Agro Lestari, stated that the company has a longstanding commitment to sustainable practices directly linked to its operations. “Our commitment to sustainability has been evident since 2015 with the introduction of the NDPE policy, which was further strengthened in 2022 through the Astra Agro Sustainability Aspiration 2030 initiative. We are consistently implementing these programs, and many initiatives have already met their targets within just two years,” he said on Sunday, December 15, 2024.
This strategy is guided by the Triple-P Roadmap, which encompasses Portfolio, People, and Public Contribution, and is supported by Good Corporate Governance (GCG). The company aims to reduce greenhouse gas (GHG) emissions by 32% through various initiatives, including conservation efforts, peat management, prevention of land fires, integrated pest and disease control, energy efficiency, and improved waste and water management.
Santosa highlighted that 100% of plantation waste, such as empty fruit bunches, is repurposed as natural fertilizer. Additionally, Astra Agro operations utilize shells and fibers as a source of biomass energy. This approach helps the company meet its sustainability and business objectives.
Furthermore, the company is undergoing a digital transformation in its operations. One key element is the SISKA 2.0 information system, launched last year to streamline third-party fresh fruit bunch (FFB) transactions. This initiative aims to enhance transparency and efficiency in the business.
Launching Innovations
To combat pests, the company is focused on reducing pesticide use. Insect pests in plantations can lead to severe consequences, including decreased productivity and crop damage. According to Astra Agro Lestari, a series of research studies has been conducted to address pest issues and improve pollination success, ultimately increasing FFB production.
This strategy also protects both plasma and independent farmers from pest-related challenges that could threaten their livelihoods. The company claims that parasitoid pest control can significantly lower pesticide application costs.
Additionally, Astra Agro has introduced an organic fertilizer called Astemic, which reduces fertilization costs by 25-50%. This innovation not only lowers expenses but is also more environmentally friendly.
Santosa noted that the palm oil industry is vital to the national economy, especially for rural communities. “We are confident that with the right strategy and a focus on sustainability, Astra Agro will continue to lead the palm oil industry domestically and internationally,” he concluded.
Challenges in the Palm Oil Industry
Santosa acknowledged that the global palm oil industry currently faces significant challenges. However, he remains optimistic that the company will continue to grow through innovation, digitalization, and a commitment to sustainability.
Recently, PT Astra Agro Lestari Tbk (AALI) received the Best Literacy for Climate Resilience award from Investing on Climate. Ardian T. Gesuri, the Managing Director of Investing on Climate, stated that the prize recognizes Astra Agro Lestari’s contributions to achieving the Sustainability Development Goals (SDGs), specifically focusing on environmental development.
“By investing in climate resilience, companies can create substantial business opportunities and achieve cost savings. The future looks promising as consumers and investors increasingly demand environmentally friendly products,” he explained.
Echoing this sentiment, Risa E. Rustam, the Director of Finance, Human Resources, and General Affairs of the Indonesia Stock Exchange, remarked that the awardees tirelessly strive for a sustainable future. “They are pioneers in their fields, demonstrating that business and sustainability coexist. Their leadership inspires us all to take further action and increase investments in climate solutions,” she concluded.
