15
INDOFOOD AGRI RESOURCES LTD
SUSTAINABILITY REPORT 2014
EDIBLE OILS AND FATS
IndoAgri’s downstream products mainly comprise of cooking
oils, margarine, shortening and by
-
products derived from oil
palm refining and fractionation. The Group owns and operates
five refineries, with a processing capacity of 1.4 million tonnes
of CPO per year.
In Indonesia, our cooking oils are sold under the leading brands
of Bimoli, Bimoli Spesial, Delima and Happy. Our consumer
margarine and shortening are marketed under the Palmia and
Amanda brands, while their industrial equivalents are branded
under Palmia, Simas, Amanda, Malinda and Delima.
RUBBER
The Group’s rubber estates are spread across North and South
Sumatra, East Kalimantan and Sulawesi. As at end 2014,
nucleus rubber estates occupied 21,697 hectares of land,
including 3,986 hectares that are immature. The average age
of our rubber trees is about 14 years.
Sheet rubber, crumb rubber and cup lump are our main
rubber products. In 2014, the Group produced 18,400
tonnes of rubber, of which 57% was exported to countries
such as Singapore, the US and UK, while the rest were sold
domestically.
SUGAR
Our sugar operations are located in Indonesia, Brazil and the
Philippines. In South Sumatra, we have a cane
-
planted acreage
of 13,062 hectares and a 8,000 tonnes of cane per day (TCD)
sugar mill and refinery with an annual processing capacity
of 1.4 million tonnes. For the year in review, we harvested
701,000 tonnes of sugar cane from our own estates, and
produced 53,500 tonnes of sugar for the domestic consumer
market.
In Central Java, we have a 4,000 TCD sugar mill and refinery
with an annual capacity of 720,000 tonnes. In 2014, we
processed 452,000 tonnes of sugar cane from 7,260 hectares
of sugar estates, including those belonging to plasma holders.
IndoAgri has an arrangement with these smallholders, where
credit is advanced for seed cane, planting costs and fertiliser
purchases, and then offset against their sales. In 2014, the
total sugar production from Central Java was 34,000 tonnes,
while the Group’s share of the sugar produced was 13,000
tonnes.
In Brazil, IndoAgri has access to 47,554 hectares of planted
sugar cane through CMAA. About 51% of this acreage is
company owned, while 49% belong to third parties. In 2014,
CMAA processed 3.5 million tonnes of harvested sugar cane,
and produced 224,000 tonnes of sugar, 145,000 m
3
of ethanol
and 375,000 Mwh of electricity.
We also have a 30% stake in FPNRL, which has a 34% interest
in RHI. In 2014, RHI processed 3.2 million tonnes of sugar
cane from third party suppliers, producing 312,000 tonnes
of sugar and 32,000 m
3
of ethanol. It also refined 103,000
tonnes of raw sugar.
CMAA achieved Bonsucro certification for 111,000 tonnes
of sustainable sugar cane production, representing 3%
of total sugar cane production. Like RSPO, Bonsucro is
a globally recognised standard, and a multi
-
stakeholder
non
-
profit organisation. It promotes measurable standards
that balance the environmental and social impact of sugar
cane production and primary processing with the economic
viability of business operation.
We will continue to review the techniques and technology
used in Brazil and the Philippines before establishing an
appropriate sustainability standard that will allow us to adopt
best agronomic practices in our Indonesian sugar plantations
and across our sugar supply chains.
