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Jakarta Post

Sinar Mas buys palm oil from other plantations

  • Apriadi Gunawan

    The Jakarta Post

Medan, North Sumatra   /   Tue, June 25, 2019   /   04:07 pm
Sinar Mas buys palm oil from other plantations Harvest time: A worker gathers oil palm fruit bunches at a plantation in Lampung. (The Jakarta Post/R. Berto Wedhatama)

Sinar Mas Agribusiness and Food downstream sustainability head Daniel Prakasa has said the company buys palm oil from other plantations to meet the raw materials needs of its food factories, in addition to palm oil from its own plantations.

He said the company bought around 7 million tons of palm oil from plantations annually.

“Around 60 percent of our palm oil for raw materials is purchased from people’s plantations.” Daniel told The Jakarta Post during a workshop in Medan last week, attended by 30 CPO suppliers and 18 sellers of palm oil fresh fruit bunches.

He assured that although palm oil plantations were managed by small farmers, the production process met the sustainable principles because the company had traced and would continue to trace the source of the fresh fruit bunches.

The tracing was important to ensure the palm oil was produced on legal plantations and the process didn’t violate any law, he said, adding that it was important to maintain the company’s credibility and consumers’ trust.

Sinar Mas Agribusiness and Food corporate communications head Wulan Suling said the total area of palm oil plantations managed by Sinar Mas as of March 31 was 500,202 hectares in Sumatra, Kalimantan and Papua.

Wulan said the company did not plan to add more plantation area in Indonesia due to land availability concerns and because the company could still rely on other plantations to boost food production.

Apart from operating in Indonesia, Sinar Mas Agribusiness and Food also expanded its business in China and India, she said, adding that the products included vegetable cooking oil and instant noodles. (bbn)