T

he world’s second largest palm oil producer Golden Agri-Resources Ltd. (GAR) and its subsidiaries have pledged to produce sustainable palm oil while protecting carbon-rich forests and peat lands in Indonesia.

Daud Darsono, president director of GAR’s subsidiary, Sinar Mas Resources and Technology Tbk. (SMART), said on Wednesday that the new initiative was part of GAR’s commitment to reduce carbon-dioxide emissions and deforestation in the country.

The government is trying to cut carbon dioxide emissions by 26 percent unilaterally and 41 percent with international assistance by 2020.

“We want to restrain from deforestation in our palm oil production activities by not developing plantations in high carbon stock forests, high conservation value areas and peat lands,” Daud said before signing an agreement with Geneva-based non-profit organization The Forest Fund (TFT) to develop a forest conservation policy.

He added that under the agreement, the company would not develop plantations in areas containing more than 35 tons of carbon per hectare — the provisional threshold of high carbon forests until a fieldwork study is conducted in the first semester of this year.

According to Daud, the policy would be implemented in all plantations owned and managed by GAR. “With the policy, we also want to ensure that we can reach our target of getting certification from the RSPO [Roundtable on Sustainable Palm Oil] by 2015,” he said.

Currently, SMART is a member of the RSPO — an organization consisting of oil palm producers and buyers, and environmental groups. However, other GAR subsidiaries have not joined.

Last year, the RSPO censured SMART for breaching the organization’s principles, especially those related to environmental aspects.

Earlier in 2007, global environmental organization Greenpeace reported that SMART allegedly destroyed rich carbon forests, peat lands and habitats of orangutan for its plantation expansions.

Following the report, major buyers canceled their purchases from SMART, such as Unilever for delivery in 2009 and Nestle in 2010.

TFT executive director Scott Poynton expected the company’s new initiative could solve what he called the “oil palm dilemma”: While the oil palm industry contributes significantly to a country’s economy, such as the creation of much-needed jobs and services in remote as well as rural areas, it also causes deforestation and environmental degradation.

“The only way for us to find a sustainable, long-term solution to addressing this problem is to engage with the oil palm industry, local communities, civil society and the government of Indonesia,” he said.

Deputy Trade Minister Mahendra Siregar welcomed the initiative, saying that it would be a bold step in the development of the domestic palm oil industry — one of the largest contributors to the country’s economy. “We expect that other oil palm plantations in this country will follow suit such an initiative,” he said.

Meanwhile, Greenpeace forest campaign head Bustar Maitar said that GAR’s initiative was a major step to end its involvement in deforestation and a significant contribution to the government’s commitment to conserve forests and tackle the impacts of climate change.

“The government must support this initiative by ceasing giving licences for forest and peat land clearance, and reviewing activities in areas where licences have already been handed out,” he said. (lnd)