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INDOFOOD AGRI RESOURCES LTD
SUSTAINABILITY REPORT 2014
STAKEHOLDER ENGAGEMENT
AND PARTNERSHIPS
(G4-24, G4-25, G4-26, G4-27)
IDENTIFYING OUR STAKEHOLDERS
Part of our corporate mission is to increase stakeholder value.
While meeting the growing demand for responsibly produced,
high quality palm oil, we endeavour to create employment
opportunities and drive economic and social developments
in communities where we operate. Multi
-
stakeholder
collaboration is crucial to sustainable palm oil production.
Our key stakeholder groups are employees, customers, investors,
government and civil organisations, and local communities. We
connect, engage and collaborate with them to strengthen our
mutual interests and establish common goals.
Each operational site maps its key stakeholders in order
to understand and improve the relationships with its local
community.
Our stakeholder engagement occurs via different channels
and at different levels of our organisation. We conduct Social
Impact assessment to define our stakeholders. We engage
the stakeholders individually and in groups, depending on the
relevance and complexity of the issue at hand. Some specific
examples are provided below.
CUSTOMER ENGAGEMENT
We engage with our customers to communicate our
commitment to safe and high quality products. Every year,
we conduct outreach programmes to educate consumers
about our cooking oil and margarine products. Events include
cooking roadshows and food bazaars held in several provinces.
We also connect with consumers through social media and
websites such as
For industrial customers,
we organise product demonstrations and provide a Bakery
Test Centre where they can experiment with new recipes and
consult with our in
-
house bakers.
In 2014, a factory visit to our Tanjung Priok refinery was
organised to educate our customers on the production and
proper use of cooking oil and margarine. We also responded to
consumer feedback and questions via our dedicated customer
service email and hotline.
COMMUNITY ENGAGEMENT
In assessing new development areas, Indonesia’s AMDAL
(Analisis Dampak Lingkungan – an environmental assessment
protocol) guides our process of community engagement. AMDAL
is used to evaluate the positive and negative environmental
consequences of a plan, policy, programme or project prior to its
implementation. We also conduct Social Impact assessments at
our estates on RSPO’s new plantation development procedures.
We engage with local communities and governments to discuss
land ownership and new developments based on the FPIC
principle. In line with this principle, IndoAgri has established
a land conflict resolution mechanism. Claims are investigated
through this mechanism by involving the local government,
village administrative team and community elders to re
-
assess
the areas of dispute. The local district government makes the
final decision.
A community development forum is held annually to discuss
important issues affecting the community and provides advice
to address their needs.
STRATEGIC PARTNERSHIPS AND MEMBERSHIPS
The United Nations has set eight Millennium Development
Goals (MDGs) to reduce poverty. IndoAgri supports the
MDG targets by providing healthcare and education facilities
to families living on its estates, and contributing to rural
development through its smallholder programme.
Our parent company, Indofood, has a partnership with the
Office of MDG to reduce mother and child mortality. We
support Indofood’s effort through our Work and Estate Living,
and Solidarity programmes.
Indofood is also one of the founding members of PISAgro,
whose objectives are based on World Economic Forum’s
20
-
20
-
20 vision to reduce poverty by 20%, increase yield by
20% and reduce CO
2
emission by 20% for every decade. Since
February 2014, IndoAgri has been involved in the palm oil
working group to share experiences with the industry on RSPO
certification for smallholders.
