As one of Indonesia’s largest producers and processers of palm
oil derivative products, we are committed to conduct our business
with the objectives of maximising our economic contributions to
the society while minimising our impact on the environment and
local communities.
Since 2009, we have been auditing our plantations against the
RSPO guidelines. We are committed to have all our mills and
plantations including smallholders RSPO-certified by 2019. We
are currently developing a fully traceable value chain by including
our CPO suppliers to our refineries in our sustainability practices.
We are working closely with our suppliers to achieve compliance
as soon as reasonably practical.
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1. Produced from plantations and mills that comply with all
relevant Indonesian laws and regulations
2. Not originating from areas cleared of primary forest since 2011
3. Not from HCV areas
4. Not from peatland with peat soil deeper than 3 metres planted
after February 2009 in line with Indonesian government
regulations
5. From suppliers who support rural development and plasma
farmers in Indonesia in line with Indonesian government
regulations
We encourage our suppliers to practice Free, Prior and Informed
Consent. We will discuss with our suppliers a mechanism to verify
this practice. We further encourage our suppliers to stop planting
on peatland regardless of depth and involve their value chains
to follow this policy.
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1. Ensure all our suppliers understand and accept our Palm Oil
Sourcing Policy, along with our Responsible Supplier Guidelines.
2. Actively encourage our suppliers to adopt best practices and
work towards certifications by ISPO and additionally RSPO.
3. Set a baseline with our suppliers by completing our questionnaire
regarding the scope and nature of their operations, and
affirm their commitments to the Palm Oil Sourcing Policy and
Responsible Palm Oil Supplier Guidelines by December 2014.
4. Perform audits of our suppliers based on the results of the
questionnaire, and work with them on resolving areas of
concerns identified. We will also develop an audit process
together with our suppliers who have not been audited against
the Indonesian guideline of ISPO and International guideline
of RSPO but are committed to either of these supplier codes.
IndoAgri strives to achieve full traceability in its value chain. In
situations where our efforts to procure sustainable products are
constrained, we are confident that our plantations, smallholders,
supporting multi-stakeholder initiatives and supplier network will
enable us to overcome these limitations.
IndoAgri retains the rights to revise the Palm Oil Sourcing Policy
and Responsible Supplier Guidelines.
PALM OIL SOURCING POLICY
49
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