T Nestlé Indonesia has won the silver award in the "Best Practice in Creating Shared Value" category in the 2024 Indonesia Corporate Sustainability Award, showcasing its commitment to creating shared benefits through partnerships with dairy farmers.
Held by Olahkarsa, the Indonesia Corporate Sustainability Award highlights companies, individuals and organizations that have demonstrated a commitment to implementing sustainability principles in business operations. The award process includes several stages of rigorous assessment, such as document evaluation and pitching sessions.
Olahkarsa Cofounder & CEO Unggul Ananta expressed his appreciation of the industry players’ enthusiasm in realizing sustainability in Indonesia.
"This award is a form of appreciation for PT Nestlé Indonesia's dedication to implementing sustainable business practices and creating positive contributions to the environment, society and superior governance. Hopefully, this award will be able to motivate more industry players to innovate and create a wider positive impact," he said.
Since its establishment as a food and beverage manufacturing company more than 52 years ago, Nestlé Indonesia has been committed to producing quality products by utilizing local resources and local raw materials, including through partnerships with cooperatives and dairy farmers in East Java since 1975. This is also done to support the development of dairy farming communities around Nestlé Indonesia's operational areas to be more resilient and prosperous through the implementation of regenerative farming practices.
Nestlé Indonesia Director of Corporate Affairs & Sustainability Sufintri Rahayu said the company is always committed to creating shared benefits for individuals, communities and the environment in its operational chain.
"The form of partnership that has been established for almost five decades with cooperatives and dairy farmers in East Java is one of our efforts to improve the welfare of the farming community, while supporting regional economic growth. Currently, PT Nestlé Indonesia is encouraging the implementation of sustainable agricultural practices by dairy farmers as part of preserving resources for future generations," she explained.
The collaboration between PT Nestlé Indonesia and the community of dairy farmers in East Java began with one of the fresh milk cooperatives in Pujon district, Malang, East Java to procure 160 liters of fresh milk per day for factory operational supplies. To date, this form of partnership has involved more than 27,000 dairy farmers and 32 milk cooperatives in East Java.
Along with improving the quality and productivity of fresh milk, Nestlé Indonesia also focuses on providing benefits to the community of dairy farmers and the wider ecosystem. Since 2022, the company has expanded its collaboration with dairy farmers in Central Java, where the fresh milk is absorbed by the Bandaraya Factory in Batang, Central Java.
Nestlé Indonesia’s Sustainable Agriculture Head Syahrudi said, “PT Nestlé Indonesia always strives and innovates to support the empowerment of community dairy farms in various aspects, such as providing facilities for dairy cows to produce optimal and high-quality fresh milk, training in good and sustainable dairy farming practices and encouragement to run a more environmentally friendly business.”
“This is in line with Nestlé's long-term mission to accelerate the transition to a regenerative food system, which not only protects but also restores the environment for future generations,” he added.
One of Nestlé Indonesia’s partners, dairy farmer H. Suloso of KUD (village cooperative unit) Argopuro Krucil expressed his gratitude for the support provided by Nestlé Indonesia with various local farmer empowerment programs.
“I receive this support not only in the form of technical assistance, but also financial assistance, which is certainly very much needed in order to improve our business. With this assistance, Insya Allah [God willing] we can increase the productivity and quality of fresh milk which of course has a good impact on the income for this business.”
Sufintri noted that for more than 52 years, Nestlé Indonesia has held fast to its commitment to creating shared value through the purchase of fresh milk from smallholder dairy farmers.
“This effort can certainly support the economic development and livelihoods of smallholder dairy farmers. This partnership is a concrete manifestation of our belief that to achieve long-term success, the surrounding communities where we operate must also prosper," she concluded.
Source : Nestle
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