PT Hindoli Smallholders

Transcription

1 2013/SOM1/IEG/DIA/007 Session 2a-2 PT Hindoli Smallholders Submitted by: Cargill Public-Private Dialogue on Investment - Corporate Social Responsibility for Local Communities Jakarta, Indonesia 30 January 2013

2 PT Hindoli Smallholders Anthony Yeow President Director, PT Hindoli Cargill Tropical Palm 30 th January 2013 Certificate No. ID08/1122 Certificate No. GB08/75238 Certificate No. SPO Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services 2 1

3 In Asia-Pacific, we have a presence in 16 countries & territories China Locations: 52 Employees: 6,536 Japan Locations: 6 Employees: 336 Pakistan Locations: 1 Employees: 12 South Korea Locations: 9 Employees: 625 India Locations: 37 Employees: 2,070 Chinese Taipei Locations: 5 Employees: 207 Sri Lanka Locations: 1 Employees: 7 Hong Kong Locations: 1 Employees: 43 Thailand Locations: 9 Employees: 10,323 Philippines Locations: 17 Employees: 489 Malaysia Locations: 12 Employees: 741 Singapore Locations: 2 Employees: 494 Indonesia Locations: 28 Employees: 10,291 Australia Locations: 79 Employees: 964 Vietnam Locations: 15 Employees: 959 New Zealand Locations: 1 Employees: 2 with 34,000 employees* in over 250 locations 3 * as of 29 February 2012 We are active across a broad range of agricultural commodities Wheat Soybeans Soybean Oil Corn Canola (rape seed) Oil Palm* Barley Sunflower Oil Coconut Oil Sorghum Cottonseed Oil Protein Meals Cotton Sugar 4 * Palm commodities include Palm Oil, Palm Kernel Oil as well as Palm Kernel 2

4 Cargill in Indonesia: Country s largest US food and agriculture investor Medan Pontianak Manado Palembang Lampung Jakarta Semarang Surabaya Makassar Facilities / Offices Cargill Head Office Grains & Oilseeds Office Warehouse Crushing plant Tropical Oils Asia Palm oil plantations & mills Pandaan 28 Locations, 10,291 employees* Animal Nutrition Feed Mill & Office Cocoa Cocoa facility (origination) Starches and Sweeteners through our subsidiary Sorini Office Processing plant *as of 29 February About PT Hindoli PT Hindoli is a subsidiary of Cargill Tropical Palm Holdings (CTP), headquartered in Singapore CTP manages and oversees the management and operations of PT Hindoli in South Sumatra and PT Harapan Sawit Lestari (HSL) and PT Indo Sawit Kekal (ISK) in West Kalimantan, Indonesia PT Hindoli was acquired by Cargill in 1995 Company owned land totals almost 20,000 hectares; smallholders, 20,000 hectares Two crushing mills with a total capacity of 160 tonnes per hour Employs 3,400 workers 6 3

5 Commitment to sustainable palm oil PT Hindoli received Roundtable of Sustainable Palm Oil (RSPO) certification in 2009 PT Hindoli smallholders received RSPO certification in August 2010: o o 8,800 smallholders in 18 cooperatives World s first smallholder scheme certified under RSPO s Smallholder Principles & Criteria o Joint effort and achievement of Cargill with smallholders Award best plantation business partner 2012 by the South Sumatra government. Smallholder program accorded a platinum award at the national Indonesian CSR Awards 2011 Collaboration with World Wildlife Fund (WWF) to assess our palm oil suppliers in Indonesia to implement RSPO principles and criteria 7 Background: PT Hindoli Smallholders Transmigrants from Java Island moved to South Sumatra in the late 1980s and later became the Hindoli smallholders under PIR Trans scheme. 10,000 smallholders holding 20,000 hectares represented by 20 cooperatives. Oil palm planting occurred between 1991 and

6 Sustainable palm oil means sustainable business A smallholder kavling (plot) is their family business. Yield intensification is a precursor to smallholder economic well being. Sustainability represents longevity and ability to pass the business on to the next generation. Plantation companies and smallholders are both equally responsible for the success of the partnership. Average of Farmers income/year in 2006 Average of Farmers income/year in 2011 Average of Indonesians' income /year in 2011 (based on inaplas data) 26,000,000 80,000,000 30,000,000 9 The relationship between estate and smallholders Hindoli smallholder development team is made up of 31 full time professionals. Cooperatives look to Hindoli as an example. When Hindoli achieved RSPO certification, they too wanted to accomplish the same. Cargill markets smallholders RSPO certificates and shares premiums with the smallholders. 10 5

7 Working with smallholders 11 Working with smallholders 12 6

8 PT Hindoli Smallholders relentless pursuit of world class achievements RSPO certification obtained in 2010 proved that Indonesian smallholder farmers are capable of producing sustainable palm oil and even competing with established plantation companies. Smallholders continued to be motivated and prepared themselves for International Sustainable Carbon Certification (ISCC) to be truly sustainable for food and energy production. ISCC is a certification scheme approved by the EU to cover the EU Renewable Energy Directive (RED). It differs from RSPO certification in the tracking of greenhouse gas production from field to refinery. This requires a full supply chain certification. 13 PT Hindoli Smallholders relentless pursuit of world class achievements Hindoli Mukti Jaya with 1,900 members, was the first cooperative to start working towards ISCC Certification. One key challenge includes the need for all land owned by the farmer to be ISCC P&C compliant, in addition to land that is already earmarked for official ISCC audit. PT Hindoli s 11 strong Farmer Development team and Program Assurance Department guided the smallholders throughout the process. Hindoli Mukti Jaya achieved success in June 2012 with the receipt of ISCC EU certification. PT Hindoli continues working with and preparing remaining cooperatives to achieve ISCC certification before Smallholders achieved RSPO and ISCC certification through two independent bodies SGS for ISCC and BSi for RSPO. 14 7

9 PT Hindoli Smallholders relentless pursuit of world class achievements The partnership between PT Hindoli and the smallholder farmers is recognized for its success at district, provincial and national levels. Platinum Indonesian CSR Awards 2011 given to PT Hindoli in Nov 2011 Hindoli Cooperative received recognition from the President, Megawati in Platinum Musi Banyuasin CSR Awards 2012 given to PT Hindoli in October 2012 PT Hindoli Smallholders relentless pursuit of world class achievements 16 8

10 In summary Ways to motivate smallholders to sustainability : Help families create a long term business in oil palm production which can be passed down from one generation to the next. Foster an ongoing and enriching partnership with the Cargill owned company. Build a global reputation in sustainably produced palm oil for Indonesia and its smallholders. Be a truly viable means of fulfilling the world s increased demand for sustainably produced vegetable oils. 17 PT Hindoli Smallholders Anthony Yeow President Director, PT Hindoli Cargill Tropical Palm 30 th January Certificate No. ID08/1122 Certificate No. GB08/75238 Certificate No. SPO