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INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2014
Sustainable Trade Initiative (IDH) to help our smallholders
achieve the required standards. Our target is to certify all our
oil palm estates, including those managed by smallholders, to
RSPO standards by 2019.
This year, I am pleased to announce the attainment of
Bonsucro certification by CMAA for 111,000 tonnes of
sustainable sugar cane production, amounting to 3% of its
total cane production in 2014. Like RSPO for sustainable
palm oil, Bonsucro is a globally recognised certification
scheme for the sugar cane sector. We are now working
with the Partnership for Indonesia Sustainable Agriculture
(PISAgro) to migrate best practices from other international
standards, such as RSPO and Bonsucro, in order to develop
general guidelines for sustainable cocoa, rubber and tea
farming in Indonesia.
LOCAL COMMUNITY DEVELOPMENT
We continue to champion community development
programmes, which remain a key part of our sustainability
agenda. Our efforts are focused on enhancing literacy rates,
improving health and living conditions, and providing various
essential services and basic amenities for our employees, their
families and the many who live on our estates.
In 2014, we launched a new initiative to tackle disfigurement
caused by cleft lip. As many families are unable to afford the
simple operation to treat this condition, we have, in 2014,
establishedaprogramme to fund the treatment cleft lipamongst
children from our estates and surrounding communities.
We will be expanding the programme progressively across
Indonesia to benefit more children and their families.
Cataracts are another common ailment in Indonesia, and to
relieve this visual impairment we are working with military
doctors to conduct on
-
site cataract operations in our
communities. In 2014, 263 cataract patients were treated under
this programme in Kalimantan and 201 in South Sumatra.
NURTURING TALENT AND LEADERSHIP
Employees are our most
-
valued assets and we invest in
competency building and talent grooming through initiatives
such as the Leadership Development Programme (LDP). In
2014, 25 managers and 23 supervisors attended the LDP,
which is a long
-
term capacity building programme to identify
and equip high performers with leadership attributes to take
on greater responsibilities.
The LDP underlies our future growth strategy, as it ensures
that we hire and train individuals with the right competencies
to support our strategies and grow the company.
OUTLOOK 2015
We expect demand for basic commodities like palm oil to
remain strong, underpinned by growing consumer markets
and a rising middleclass. Competition from other CPO
producers as well as competing products like soybean will be
intense, given the added impetus of high inventory caused
by lower demand for biodiesel with the fossil fuel price drop.
Being a low cost producer remains the key strategic focus for
the Group, given the volatility and uncertainty of future price
movements.
Therefore, IndoAgri will continue to manage its costs, and
explore areas such as data analytics to fine
-
tune our agronomic
practices to maximise yields. In anticipation of higher FFB
output, we will be increasing our milling capacities by building
two new mills in South Sumatra and three in Kalimantan,
of which three will be completed by 2016.
We are also looking to expand our downstream EOF activities
with an emphasis on high
-
end value added products that
target premium F&B outlets, and as a Group, continue to seize
opportunities to diversify, mitigate cyclical risk, and achieve
our growth potential.
APPRECIATION
To conclude, I would like to thank our Board of Directors for
their valued leadership and commitment. Most of all, I thank
our customers, business partners and employees, whose
continued confidence and support have been the driving force
for all of IndoAgri’s endeavours.
Mark Wakeford
Chief Executive Officer
