Golden-Agri Resources and CIRAD Form Venture to Develop Indonesia Maritime Logistics

31 Mar 2017 --- As part of an Indonesian consortium, PT SMART Tbk (PT SMART), a subsidiary of Golden Agri-Resources (GAR), and the French Agricultural Research Centre for International Development (CIRAD), have signed an MOU to boost sustainability in the agri-business sector through the creation of a new regional platform that will deliver research-based training and enhance sustainability standards in major commodity chains including oil palm.

The Sustainable Agricultural Landscapes in Southeast Asia platform (SALSA) is a public-private partnership that integrates multi-stakeholder teams into research, training and development projects to support the growth of sustainable supply chains and protect the biodiversity of Southeast Asia. Specifically, the platform aims to strengthen sustainability standards, share knowledge and innovation, and increase the availability of plantation managers trained in sustainable practices and certification standards. Other signatories to the MOU are PT Riset Perkebunan Nusantara, the Asian and Pacific Coconut Community (APCC) and PT SOCFINDO.

President Director of PT SMART, Daud Dharsono, said “The CIRAD-PT SMART partnership dates back more than 20 years, training students, plantation professionals and researchers from around the globe, while benefitting the company, its suppliers and 50,000 smallholders through yield improvement and better agronomic practices; this R&D partnership has been so successful it was renewed for another 10 years in March 2016. As the world’s second largest vertically-integrated palm oil producer, we hope new learnings through the SALSA platform positively impact the industry as a whole in its journey towards sustainably produced palm oil.”

CIRAD’s Managing Director-General, Mr. Michel Eddi said, “Agri-business is a critical and growing part of the region’s economy, and CIRAD is fully committed to working with our partners in the SALSA initiative to improve the sustainability of their supply chains. We believe the answers to ending deforestation and achieving certified, sustainable production lie in capacity-building, and will continue to channel our resources and research and development efforts to these industries to attain this.”

The agreement builds on the significant progress GAR has made in developing a sustainable, traceable supply chain. Currently, 60% of its palm oil supply is RSPO-certified, and the company is on track to deliver 100% traceable and RSPO-certified palm oil by 2020. The company effectively delinked palm oil production from deforestation with the launch of its Forest Conservation Policy in 2011.

A separate MOU has also been signed between GAR and French shipowner Louis Dreyfus Armateurs Group to develop business opportunities in maritime logistics for the next five years, with planned acquisitions and investments amounting to around USD 100 million. The President of France, Francois Hollande, and the Minister of Marine Affairs and Fisheries, Susi Pudjiastuti were present for the announcement of the agreement.

France is one of Indonesia's most important trading partners in the European Union, with bilateral trade valued at more than $2.23 billion annually. President Hollande’s historic visit to Indonesia, the first of a French President in 30 years, signals stronger bilateral ties between the two countries as well as France’s support of the certified, sustainable development of plantation industries in the region through supportive measures.

The Sustainable Agricultural Landscapes in Southeast Asia platform (SALSA) is a public-private partnership that integrates multi-stakeholder teams into research, training and development projects to support the growth of sustainable supply chains and protect the biodiversity of Southeast Asia. Specifically, the platform aims to strengthen sustainability standards, share knowledge and innovation, and increase the availability of plantation managers trained in sustainable practices and certification standards. Other signatories to the MOU are PT Riset Perkebunan Nusantara, the Asian and Pacific Coconut Community (APCC) and PT SOCFINDO.

President Director of PT SMART, Daud Dharsono, said “The CIRAD-PT SMART partnership dates back more than 20 years, training students, plantation professionals and researchers from around the globe, while benefitting the company, its suppliers and 50,000 smallholders through yield improvement and better agronomic practices; this R&D partnership has been so successful it was renewed for another 10 years in March 2016. As the world’s second largest vertically-integrated palm oil producer, we hope new learnings through the SALSA platform positively impact the industry as a whole in its journey towards sustainably produced palm oil.”

CIRAD’s Managing Director-General, Mr. Michel Eddi said, “Agri-business is a critical and growing part of the region’s economy, and CIRAD is fully committed to working with our partners in the SALSA initiative to improve the sustainability of their supply chains. We believe the answers to ending deforestation and achieving certified, sustainable production lie in capacity-building, and will continue to channel our resources and research and development efforts to these industries to attain this.”

The agreement builds on the significant progress GAR has made in developing a sustainable, traceable supply chain. Currently, 60% of its palm oil supply is RSPO-certified, and the company is on track to deliver 100% traceable and RSPO-certified palm oil by 2020. The company effectively delinked palm oil production from deforestation with the launch of its Forest Conservation Policy in 2011.

A separate MOU has also been signed between GAR and French shipowner Louis Dreyfus Armateurs Group to develop business opportunities in maritime logistics for the next five years, with planned acquisitions and investments amounting to around USD 100 million. The President of France, Francois Hollande, and the Minister of Marine Affairs and Fisheries, Susi Pudjiastuti were present for the announcement of the agreement.

France is one of Indonesia's most important trading partners in the European Union, with bilateral trade valued at more than $2.23 billion annually. President Hollande’s historic visit to Indonesia, the first of a French President in 30 years, signals stronger bilateral ties between the two countries as well as France’s support of the certified, sustainable development of plantation industries in the region through supportive measures.

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