Asian Agri

Last updated
Asian Agri
Company type Private
Industry Palm Oil Plantation and Mill
Headquarters
Jl. Letjend MT Haryono No.A-1 Medan
,
Indonesia
ProductsCrude Palm Oil (CPO), Crude Palm Kernel Oil (CPKO), Palm Kernel Expeller (PKE), Palm Kernel Shell
Number of employees
More than 22,000
Website asianagri.com/en

Asian Agri is one of Asia's largest palm oil producers, with an annual production of 1 million tons of palm oil. [1] [2] Asian Agri is a member of the Royal Golden Eagle (RGE) group of companies.

Contents

Business

Founded in 1979, Asian Agri manages 30 palm oil plantations, 23 mills and 12 kernel-crushing plants in Sumatra, Indonesia. It has a total oil palm plantation area of 100,000 hectares, and partners with Plasma smallholders responsible for an additional 60,000 and independent smallholders responsible for 41,000 hectares. [3] [4] [5] [6] [7] [8] [9] It employs more than 22,000 employees. [10]

Partnerships

PIR-trans and plasma programs

Asian Agri was one of the first companies involved in Indonesia's PIR-Trans (Perkebunan Inti Rakyat-Transmigrasi) program in 1987. The program brought together plantation owners with transmigrated smallholders. Asian Agri developed and implemented the program in Riau and Jambi, Sumatra, facilitating plantation development, developing infrastructure and providing training in best agronomic practices. [11] The company also assisted smallholders in securing bank loans. [12] Smallholders now contribute to half of Asian Agri's total palm oil production.

The company has also assisted its partnered smallholders in receiving certification, such as RSPO, International Sustainability and Carbon Certification (ISCC), and Indonesian Sustainable Palm Oil (ISPO). [13] [14] [15] [16] [17] [18]

Independent smallholders

Asian Agri's partnership with smallholders extended to selected independent smallholders. Along with WWF Indonesia, RSPO and the government, the company helped established the Amanah Palm Oil Independent Smallholders Association in 2012. As of 2015, the Amanah Association comprised 349 smallholders managing 763 hectares of land. It is the first [19] independent smallholders cooperative in the country to be RSPO-certified. [20] [21]

In March 2016, the Indonesia Agriculture Ministry, the United Nations Development Programme and Asian Agri piloted a 3-month training program for 500 members of the Amanah Association in effective plantation management. SNV Netherlands Development Organisation facilitated the training and technical support. Participants were later independently assessed based on the Indonesian Sustainable Palm Oil (ISPO) standards, before being the pioneer batch of independent smallholders to receive ISPO certification. [22] [23]

In 2022 Asian Agri announced its Asian Agri 2030 sustainability targets, including assisting 100% of partner smallholders to achieve ISPO certification, and helping 5,000 smallholders earn RSPO certification. As of 2024 72% of Asian Agri’s partner smallholders were ISPO certified, and 1,373 were RSPO certified. [24] [25]

Sustainability

Certification

Asian Agri’s plantations are 100% certified by the Roundtable on Sustainable Palm Oil (RSPO), Indonesian Sustainable Palm Oil (ISPO), and International Sustainability & Carbon Certification (ISCC). [26] [27]

Fire prevention

Asian Agri implemented a zero burning policy across its operations in 1994 to prevent land by cleared by fire. [28] It became a founding member of the Fire-Free Alliance in early 2016. [29] The Alliance implements the Fire-Free Village Programme, which was pioneered by Asia Pacific Resources International Holdings. Implemented in collaboration with NGOs, government agencies and the police, the programme involves education, training, capacity-building, infrastructure development and incentivization for villages to adopt no-burn practices to land clearing. [30] [31]

In parallel with its implementation of the Fire-Free Village Programme, Asian Agri also engages communities through the Masyarakat Peduli Asap program, which similarly promotes fire prevention and best practices in fire management. [32] [33]

At the 2014 United Nations Climate Summit, Asian Agri was a signatory of the New York Declaration on Forests, which commits to halving the rate of deforestation by 2020, and end it by 2030. In parallel, the company also became a signatory of the Indonesian Palm Oil Pledge (IPOP) along with Golden Agri Resources (GAR), Wilmar and Cargill, committing to deforestation-free palm oil cultivation practices in their supply chains. [34] [35] IPOP disbanded on July 1, 2016. [36]

Asian Agri has had a commitment to zero deforestation since 2014. [37] [38]

In 2015, Asian Agri, along with Apical, partnered The Forest Trust to develop and improve its supply chain traceability. [39]

In 2017 Asian Agri achieved 100% traceability of fresh fruit bunches reaching its mills [40]

In 2018 Asian Agri became a founding member of The Sustainability Assurance and Innovation Alliance (SUSTAIN), a group of oil palm growers, palm oil processors, consumer goods manufacturers, not-for-profit organizations and technology companies who are using blockchain to improve palm oil traceability [41]

Biogas power plants

In 2015, Asian Agri announced plans to build 20 biogas power plants by 2020. The power plants will be powered by biogas produced from palm oil mill effluent. The company had 11 biogas power plants as of April 2025, [42] each of which can reduce GHG emissions from mill operations by 90%. [43] Asian Agri also sells renewable energy from one of the plants to Indonesia’s grid. [44]

References

  1. ↑ "Asian Agri aims output at 1m tons in 2015". The Jakarta Post. Retrieved 2016-11-10.
  2. ↑ "Asian Agri to involve more farmers in CPO production". The Jakarta Post. Retrieved 2016-11-10.
  3. ↑ "Asian Agri > About Us". www.asianagri.com. 14 September 2015. Retrieved 2016-11-10.
  4. ↑ "Improving livelihoods of smallholders through partnership". The Jakarta Post. Retrieved 2016-11-10.
  5. ↑ "Sepanjang 2018, Asian Agri Produksi 1,16 Juta Ton CPO". Sawit Indonesia. 1 February 2019. Retrieved 1 March 2019.
  6. ↑ "Asian Agri: A Case Study on Responsible Investment into Palm Oil in Indonesia". FAO. Retrieved 24 September 2025.
  7. ↑ "Kao, Apical and Asian Agri Launch SMILE Program to Help Oil Palm Smallholders Improve Yields, Acquire Certifications, and Secure Premiums". Wahana Riau. 15 October 2020. Retrieved 24 September 2025.
  8. ↑ "Asian Agri outlines progress toward 2030 sustainability targets". The Jakarta Post. 10 April 2025. Retrieved 24 September 2025.
  9. ↑ "Kao, Apical and Asian Agri Launch SMILE Program to Help Oil Palm Smallholders Improve Yields, Acquire Certifications, and Secure Premiums". Wahana Riau. 15 October 2020. Retrieved 24 September 2025.
  10. ↑ "About Us". Asian Agri. Retrieved 24 September 2025.
  11. ↑ "Smallholder Partnership". www.asianagri.com. Retrieved 2016-11-10.
  12. ↑ "Oil Palm Fund invests Rp 6.75 billion with smallholders". The Jakarta Post. Retrieved 2016-11-10.
  13. ↑ "Improving livelihoods of smallholders through partnership". The Jakarta Post. Retrieved 2016-11-10.
  14. ↑ "Asian Agri promotes best practices amongst smallholders". Inside RGE. 2015-10-07. Retrieved 2016-11-10.
  15. ↑ "Palm oil's big issue: Smallholders". Eco-Business. Retrieved 2016-11-10.
  16. ↑ Bovarnick, Andrew; Newport, Samantha; Uno, Tomoyuki (2015-05-13). "Multinationals cannot prevent palm oil deforestation on their own". The Guardian. ISSN   0261-3077 . Retrieved 2016-11-10.
  17. ↑ "Asian Agri Beri Insentif Rp 2,6 Miliar kepada KUD Petani Sawit". KOMPAS.com (in Indonesian). Retrieved 26 February 2019.
  18. ↑ "Asosiasi Amanah jadi Asosiasi Petani Swadaya Pertama Raih Sertifikat Ispo". Tribunnews.com (in Indonesian). Retrieved 26 February 2019.
  19. ↑ "In a First for Indonesia, Independent Smallholders Receive RSPO Certification". www.wwf.or.id. 2015-12-03. Retrieved 2017-01-03.
  20. ↑ "Asian Agri to partner more independent smallholders". Inside RGE. 2015-12-03. Retrieved 2016-11-10.
  21. ↑ "Improving livelihoods of smallholders through partnership". The Jakarta Post. Retrieved 2016-11-10.
  22. ↑ UNDP. "Ministry of Agriculture, UNDP & Asian Agri Partnership to Pave Way in Wide-Scale ISPO Certification of Independent Palm Oil Farmers". www.inpop.id. Archived from the original on 2016-11-04. Retrieved 2016-11-10.
  23. ↑ "Islands in focus: Farmers attend workshop for certification". The Jakarta Post. Retrieved 2016-11-10.
  24. ↑ "SMILE transforms the palm oil industry, one farmer at a time - Economy". The Jakarta Post. Retrieved 24 October 2025.
  25. ↑ "Asian Agri outlines progress toward 2030 sustainability targets - Economy". The Jakarta Post. Retrieved 24 October 2025.
  26. ↑ "Standards and Certifications, Roundtable of Sustainable Palm Oil (RSPO), ISPO, ISCC". Asian Agri. Retrieved 24 October 2025.
  27. ↑ "Asian Agri outlines progress toward 2030 sustainability targets - Economy". The Jakarta Post. Retrieved 24 October 2025.
  28. ↑ "2018, Asian Agri Targetkan Lahan Kemitraan 100.000 Ha". Agrofarm (in Indonesian). 24 October 2017. Archived from the original on 16 April 2019. Retrieved 26 February 2019.
  29. ↑ "Fire Free Alliance". Fire Free Alliance. Retrieved 24 September 2025.
  30. ↑ "Multi-Stakeholder Alliance Formed to Fight Fires in Indonesia | Jakarta Globe". Jakarta Globe. Archived from the original on 2016-11-04. Retrieved 2016-11-10.
  31. ↑ "A Decade of APRIL's Fire Free Village Program in Riau Province". The Jakarta Globe. 12 February 2024. Retrieved 24 September 2025.
  32. ↑ "Asian Agri provides haze relief and aid to affected communities". Inside RGE. 2015-12-14. Retrieved 2016-11-10.
  33. ↑ "Asian Agri Actively Conducts Fire Free Village Program Engagement to Prevent Fire and Haze". www.asianagri.com. Retrieved 2016-11-10.
  34. ↑ Clancy, Heather (2014-12-30). "2014 progress report: 5 positive signs for the world's forests". GreenBiz. Retrieved 2016-11-10.
  35. ↑ "Signing of Indonesia Palm Oil Pledge". U.S. Department of State. Retrieved 2016-11-10.
  36. ↑ "Indonesian Palm Oil Pledge disbands". Eco-Business. Retrieved 2016-11-10.
  37. ↑ "Single company page - Palm oil". SPOTT.org. Retrieved 24 October 2025.
  38. ↑ "Asian Agri: Three no's underscore drive to make palm oil more sustainable". AgTechNavigator.com. 6 March 2024. Retrieved 24 October 2025.
  39. ↑ "Asian Agri (AA) and Apical have joined TFT - TFT". TFT. Retrieved 2016-11-10.
  40. ↑ "Asian Agri Group". SPOTT.org. SPOTT.
  41. ↑ "Palm Oil Alliance Initiates Blockchain Solution to Drive Sustainable Practices". Jakarta Globe. 13 September 2018. Retrieved 19 February 2019.
  42. ↑ "Asian Agri outlines progress toward 2030 sustainability targets". The Jakarta Post. 10 April 2025. Retrieved 24 September 2025.
  43. ↑ "Asian Agri outlines progress toward 2030 sustainability targets - Economy". The Jakarta Post. Retrieved 24 October 2025.
  44. ↑ "Asian Agri and PLN ink renewable energy deal | Asian Power". asian-power.com. 27 August 2025. Retrieved 24 October 2025.
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