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Jakarta Post

Analysis: Indonesia: Reforming palm oil production (analysis)

  • Josh Franken

    Oxford Business Group

Jakarta   /   Mon, October 3 2011   /  08:00 am

Indonesia’s palm oil sector is looking to adopt more sustainable practices in a bid to alleviate growing environmental concerns while meeting rising global demand.

After having boycotted the products of palm oil giant Sinar Mas over concerns about deforestation and habitat erosion, several corporations have resumed or nearly resumed purchases after the company initiated a number of reforms. In September, Swiss food conglomerate Nestlé announced its intention to resume buying palm oil from Golden Agri Resources (GAR), which operates loosely under the trade name Sinar Mas, after it had dropped the company from its supply chain in March 2010 due to a Greenpeace report that accused the company of destroying the rain forest, endangering orangutans and contributing to climate change.

Sinar Mas has been working with environmental group The Forest Trust on the implementation o...