The palm oil industry increasingly adopts sustainable practices to align with the Sustainable Development Goals (SDGs). One notable approach taken by Astra Agro Lestari Group is the reduction of pesticide use.
The company actively manages pests by minimizing pesticide application. Insect pests in plantations can lead to significant issues, including reduced productivity and crop damage. As of 2024, Astra Agro Lestari oversees a plantation area of 285,387 hectares.
Astra Agro Lestari has researched to combat pest infestations and enhance pollination success, boosting fresh fruit bunch (FFB) production. This initiative also supports both plasma and independent farmers by protecting them from pests that threaten their livelihoods.
CEO Santosa explained that the company is committed to using innovative pest management methods. By researching and digitising their pest control system, Astra Agro aims to prevent pest outbreaks, which can enhance crop productivity. He noted that using parasitoids for pest control can significantly lower pesticide costs.
According to the AALI 2023 Sustainability Report, the company has embraced a natural food chain approach to pest management by utilising biological control methods. This involves employing natural predators to keep pest populations in check, such as predatory insects for caterpillar pests and owls for rat control.
Astra Agro Lestari has also been developing crop areas and conservation sites to provide habitats for pest predators. The company increased its beneficial crop areas from 1.97 million m² in 2021 to 2.81 million m² by 2023. Likewise, conservation plots grew from 5,600 in 2021 to 10,600 by 2023.
Tempo and IDNFinancials recognised these sustainability efforts by awarding CEO Santosa as one of the best CEOs of 2024. He was awarded the Best CEO with Special Mention: The Most Consistent Listed Company in Efforts to Reduce Pesticide Use at the Top CEO Indonesia Awards 2024, held by Tempo-IDNFinancials in Bandung on November 15. Due to AALI’s impressive performance, Santosa was honoured as the Best CEO in Agriculture at the Top CEO Indonesia 2023 event in Bali.
Since joining Astra Agro Lestari, Santosa has emphasised the connection between oil palm cultivation and pest management. He recognises that chemical pesticides should no longer be the primary solution, mainly due to their negative environmental impact. In Astra Agro, chemical pesticides are now reserved as a last resort and are used only during the nursery stage or in critical pest outbreaks.
Despite facing challenges from fluctuating commodity prices, AALI has maintained consistent performance. As of September 2024, the company’s revenue grew by 3.8% year-over-year (yoy), while EBITDA increased by 11.1% annually, indicating a positive recovery after the previous year’s decline in palm oil prices.
Minister of Manpower Yassierli attended the award ceremony and expressed appreciation for all contributors to the nation’s progress. He congratulated those involved, stating, “Congratulations on organising this extraordinary event. Congratulations to the selected Indonesian CEOs.”
A Bandung Institute of Technology professor hoped that company leaders would collaborate to contribute to national development. Notably, President Prabowo Subianto is advocating for an eight percent economic growth target to achieve the vision of a Golden Indonesia by 2045. (*)
