Asian Agri Driving Food Security through Sustainable Practices

Asian Agri is a leading agricultural company that's making a significant impact on food security in Asia. They're doing this through sustainable practices that benefit both the environment and the communities they work with.

By adopting regenerative agriculture practices, Asian Agri is improving soil health, increasing biodiversity, and enhancing ecosystem services. This approach not only promotes food security but also helps to mitigate the effects of climate change.

Asian Agri's commitment to sustainable practices is evident in their efforts to reduce greenhouse gas emissions and conserve water. They're achieving this through the use of renewable energy sources and water-saving technologies.

Their focus on sustainability is also reflected in their work with smallholder farmers, providing them with training and support to adopt environmentally friendly farming practices.

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Asian Agri is a world-class palm oil company based in Indonesia, managing the country's abundant natural resources.

The company has operations in 3 provinces on the Sumatra Island, covering a vast area of 100,000 hectares of plantation.

Asian Agri partners with smallholders to operate an additional 60,000 hectares of plantation, making them one of the biggest in Indonesia.

This partnership with smallholders is a significant part of their business, with over 40% of their oil palm plantations owned by smallholders.

Asian Agri ensures that sustainable development practices are applied in all operational areas, including in plantations owned by smallholders.

They are committed to sustainable palm oil production and use, adhering to economic, social, and environmental considerations.

As a member of the Roundtable on Sustainable Palm Oil (RSPO), PT Inti Indosawit Subur, the flagship company of the Asian Agri Group, promotes the growth and use of sustainable palm oil.

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At Asian Agri, research and development play a crucial role in improving yields in a sustainable and environmentally-friendly manner.

The company has a dedicated centre in Tebing Tinggi, North Sumatra, which was established in 1989.

This centre employs 50 researchers and 150 research technicians who specialize in various fields such as agronomy, soil, pest, disease, breeding, biotechnology, and tissue culture.

Their expertise spans multiple areas, ensuring that Asian Agri's operations remain efficient and effective.

Asian Agri has made significant strides in protecting the environment through sustainable practices. Their operations are certified by three reputable sustainability schemes: the Roundtable on Sustainable Palm Oil, International Sustainability & Carbon Certification, and Indonesian Sustainable Palm Oil scheme.

The company has set ambitious targets through its Asian Agri 2030 commitment, aiming to draw all its power from renewable sources, ensure net zero emissions from land use, and eliminate extreme poverty in the areas around its operations.

Asian Agri has been a signatory of the New York Declaration on Forests since 2014, committing to halve the rate of deforestation by 2020 and end it by 2030. In parallel, the company became a signatory of the Indonesian Palm Oil Pledge (IPOP) in 2014, pledging to deforestation-free palm oil cultivation practices in their supply chains.

The company has made significant progress in supply chain traceability, partnering with The Forest Trust in 2015 to develop and improve its supply chain traceability. By 2017, Asian Agri achieved 100% traceability of fresh fruit bunches reaching its mills.

Asian Agri is also a founding member of The Sustainability Assurance and Innovation Alliance (SUSTAIN), a group of organizations using blockchain to improve palm oil traceability.

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Asian Agri's commitment to food security is impressive, especially with their custom-developed seeds that produce higher yields. This means more food for communities in need.

These Topaz oil palm seeds are designed to thrive even in marginal soils, which is a game-changer for areas with poor soil quality. This makes them a reliable choice for farmers in these regions.

The seeds also have slower vertical growth, making it easier to reach the fruit. This practical aspect is a significant advantage for farmers who want to maximize their harvest without breaking a sweat.

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Asian Agri's experience with smallholder farmers has shown that building partnerships can lead to increased incomes and sustainable farming practices. They partner with over 30,000 smallholder farmers.

Asian Agri's One to One Partnership Commitment is a model for matching each hectare of their own plantation with one hectare of land owned by smallholder farmers. This commitment has been in place since 1987.

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By working with smallholder farmers, Asian Agri has helped them to farm more sustainably and increase their incomes. Their efforts have also led to the establishment of cooperatives and associations that support smallholder farmers.

The Amanah Palm Oil Independent Smallholders Association is an example of a cooperative that Asian Agri helped establish in 2012. As of 2015, the association comprised 349 smallholders managing 763 hectares of land.

Asian Agri's commitment to sustainability has led to the certification of over 72% of their partner smallholders under the Indonesian Sustainable Palm Oil (ISPO) standards.

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Custom seeds have been developed to boost productivity in various crops.

Asian Agri's Topaz oil palm seeds are a great example of this, producing higher yields than regular seeds. They can thrive even in marginal soils, which is a game-changer for farmers with limited land quality.

These seeds have slower vertical growth, making the fruit easier to reach and harvest. This can save farmers time and labor, and reduce the risk of damage to the fruit.

By using custom seeds like Topaz, farmers can increase their crop yields and improve their overall productivity.

Asian Agri has a long history of building strong partnerships with farmers. They've partnered with over 30,000 smallholder farmers to help them increase their incomes while farming more sustainably.

Their commitment to smallholder farmers is impressive, and they've been doing it for decades. They were one of the first companies to join the Indonesian government's Transmigration Program in 1987.

Asian Agri's partnerships with smallholder farmers go beyond just financial support. They've also helped their partners receive important certifications, such as RSPO, ISCC, and ISPO.

These certifications are a testament to Asian Agri's commitment to sustainability and responsible palm oil production.

Asian Agri has a strong presence in Indonesia, operating in 13 provinces with a total of 14 mills. The company's operations are supported by a robust infrastructure, including a comprehensive network of roads, bridges, and storage facilities.

The company's logistics and supply chain management are also noteworthy, with a fleet of 150 trucks and a storage capacity of 1 million tons. This enables Asian Agri to efficiently transport and store palm oil and other products.

The company's commitment to sustainability is reflected in its efforts to reduce its carbon footprint, with a goal of reducing greenhouse gas emissions by 30% by 2025.

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Asian Agri has been committed to fire prevention since 1994, implementing a zero burning policy across its operations to prevent land clearing by fire.

In 2016, the company became a founding member of the Fire-Free Alliance, which aims to promote fire-free practices in land clearing.

The Fire-Free Village Programme, pioneered by Asia Pacific Resources International Holdings, was implemented in collaboration with NGOs, government agencies, and the police to educate and train villagers on no-burn practices.

Asian Agri also engages communities through the Masyarakat Peduli Asap program, promoting fire prevention and best practices in fire management.

The Fire-Free Village Programme involves education, training, capacity-building, infrastructure development, and incentivization for villages to adopt no-burn practices.

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Asian Agri has two offices in Indonesia. The Jakarta Office is located at Jl. Palembang Kav 35-37, Kebon Melati Tanah Abang, Kota Adm. Jakarta Pusat, DKI Jakarta, 10230, Indonesia.

You can reach the Jakarta Office by phone at +62 21 2301 119 or by fax at +62 21 2301 120.

The Medan Office is located at Uniplaza Building 6th Floor, East Tower, Jl. Let. Jend. Haryono MT No A-1, Medan 20231, North Sumatra, Indonesia. The office has multiple phone numbers: +62-61 4532155, +62 61 4532 155, 388, and 532. You can also reach the office by fax at +62 61 4532 095 or +62 61 4532 987.

Asian Agri has made significant strides in biogas power plants, aiming to build 20 by 2020.

They've already made progress, with 11 biogas power plants operational as of April 2025.

Each of these plants can reduce GHG emissions from mill operations by 90%.

Asian Agri sells renewable energy from one of the plants to Indonesia's grid.

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The NAICS code for Asian Agri is 31, which broadly classifies the company as a manufacturing industry.

NAICS codes are used to categorize businesses by their primary activity, with 31 specifically covering the manufacturing sector.

Asian Agri's NAICS code of 311225 is more granular, indicating that the company is involved in the production of palm kernel oil.

This code is further broken down into 3112, which covers the production of animal fats and oils, and 31122, which specifically covers the production of palm kernel oil and other palm products.

The code 311 is the most general, classifying Asian Agri's activities as part of the food manufacturing industry.

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Asian Agri's management team is led by a seasoned executive with over 20 years of experience in the agricultural industry.

The company has a strong governance structure in place, with a board of directors that oversees the overall strategy and direction of the business.

Asian Agri's management team is responsible for implementing the company's vision and mission, which is to be a leading player in the global palm oil industry.

The company has a robust risk management framework in place to mitigate potential risks and ensure business continuity.

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Asian Agri has a strong focus on sustainability and has implemented various initiatives to reduce its environmental footprint.

The company has also established a robust compliance program to ensure that it meets all relevant laws and regulations.

Asian Agri's management team is committed to transparency and has established a robust reporting framework to ensure that stakeholders have access to accurate and timely information.

The company has a strong focus on community development and has implemented various initiatives to improve the livelihoods of smallholder farmers and local communities.

Asian Agri's sustainability reporting is commendable, but there are areas for improvement. The report lacks specific quantitative metrics to assess the actual impact of its initiatives, such as data on deforestation and greenhouse gas emissions reduction.

To enhance transparency, the company should provide more information on burning incidents, including their causes and preventive measures taken. This would help stakeholders understand the company's commitment to safety and environmental responsibility.

Asian Agri's commitment to labour and social practices is also commendable, but it could be strengthened by providing specific details about measures taken to ensure fair labour practices. This includes employee well-being and benefits, which would demonstrate the company's dedication to social responsibility.

Here are some key areas where Asian Agri can improve its sustainability reporting:

By addressing these areas, Asian Agri can enhance the credibility and transparency of its sustainability reporting, ultimately contributing to a more sustainable future for the company and its stakeholders.

Asian Agri's sustainability reporting is commendable, but there are areas where it falls short. The report lacks specific quantitative metrics to assess the actual impact of its sustainability initiatives.

One of the primary concerns is the lack of data on deforestation and greenhouse gas emissions (GHGs) reduction. The report only mentions methane, but doesn't provide data on other GHGs.

Asian Agri's report also needs to provide more information on labour and social practices. While it mentions adherence to standards on workers' welfare, equal rights, and a zero-tolerance policy for child labour and harassment, it's unclear what specific measures are taken to ensure fair labour practices.

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Here are some specific areas where the report could improve:

The report's lack of transparency on these issues makes it difficult to assess the company's commitment to sustainability. By providing more specific details, Asian Agri can enhance the credibility and transparency of its sustainability reporting process.

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