Sustainability

Introduction

Astra Agro Lestari (‘AAL’) takes environmental and social stewardship very seriously and have been publicly reporting on our sustainability practices for many years.  We only develop land designated and granted by the Indonesian government for plantation use, always adhere to Indonesian laws, and engage certification agencies to ensure that we meet the required standards.


AAL provides extensive facilities to meet the needs of its 35,000 employees and has strong relationships with local communities, always striving to support the Astra Group’s philosophy of being a valuable asset to the Republic of Indonesia.  AAL has strategic partnerships with some 54,000 local oil palm farmers from whom we buy produce, giving training on production improvements and sustainable practices.  We also provide education and health programmes for our communities.


Palm oil is one of the world’s most used commodities with an extensive range of applications, and is a major contributor to the Indonesian economy.  Oil palm cultivation plays a significant role in the social and economic development of Indonesia and contributes to the uplifting of the livelihoods of smallholders in many rural communities.  AAL recognises the vital need to cultivate palm responsibly, which is why we take care to balance the interests of people, the environment and profitable economic sustainability.


Sustainability Policy

In September 2015, AAL published an updated Sustainability Policy (the 'Policy') that reflects the Company’s ongoing commitment to cultivate oil palms responsibly.  The Policy is designed to balance the interests of the environment, the community and profitable economic growth.  As palm oil plays a significant part in supporting the social and economic progress being made in Indonesia, and in doing so contributing to the livelihoods of many communities, AAL’s Policy is a demonstration of its support for the long-term sustainable development of the sector.


AAL has for many years implemented sound and efficient practices through the conservation of biodiversity, soil and water, and reductions in greenhouse gasses, while ensuring secure and stable conditions for employees and surrounding communities.  AAL’s new Policy extends these practices with the aim of promoting palm oil production that is deforestation free, respects human and community rights, and delivers shareholder value.


The Policy is effective immediately for all new plantation development.   "AAL has appointed the Consortium of Resource Experts (CORE), comprising PT Daemeter Consulting, Proforest, and the Rainforest Alliance, as technical consultants to advise on the development of Action Plan to implement the Policy effectively. AAL and the consultants will work with key stakeholders, including the Government and industry bodies, as well as NGOs and smallholders, to ensure a smooth implementation of the Policy".  In particular, AAL will maintain its ongoing support for the community with the provision of health and education programmes to its employees and the communities where its operations are based.  It will also continue to support the smallholders and provide them with training on production improvements and sustainable practices in their palm oil activities.


AAL President Commissioner and Astra International President Director, Prijono Sugiarto commented, “This is a significant initiative for AAL, which takes environmental stewardship seriously, and has the full support of Astra International in its long-term vision to contribute to the nation’s advancement and environmental sustainability.”

Indonesian Sustainable Palm Oil (ISPO)

The Company’s commitment in implementing good corporate governance is also realized by adopting agreements, principles as well as an external initiative applied nationally, the Indonesian Sustainable Palm Oil (ISPO).  

Indonesia Palm Oil Pledge (IPOP)

AAL supports the Indonesian Palm Oil Pledge (“IPOP”), designed to advance Indonesia’s sustainable palm sector.  IPOP was established in September, 2014 in pursuit of sustainable palm oil that is deforestation free, respects human and community rights and delivers shareholder value.   Following the publication of the Sustainability Policy, AAL will look to become a signatory of the Indonesian Palm Oil Pledge (“IPOP”) in the near future.

Indonesian Palm Oil Producer Association (GAPKI)

The Company is actively involved as a member of the Indonesian Palm Oil Producer Association (GAPKI). Through this organization, the Company actively develops good practices of oil palm cultivation and improved social responsibility implementation. Environment & Social Responsibility Director, Joko Supriyono, currently serves as a Secretary General of GAPKI.

Income Generating Activities (IGA)

As a professional entity, the Company has always been firmly independent in terms of political situation. We are not affiliated with any political power and do not give any form of political related assistance. The Company has never received any financial or other form of assistance from the Government. Instead, the Company always seeks to support the implementation of government programs, especially programs related to local communities’ income improvement, known as the Income Generating Activities (IGA).


Contact Us

For any enquiries relating to our Sustainability practices, [contact us.]