Sukanto Tanoto and Asian Agri, The Leading Palm Oil Industry

Asian Agri is part of the Company incorporated in RGE group belonging to Sukanto Tanoto. Asian Agri is a manufacturer of CPO (Crude Palm Oil), which was established in 1979. Asian Agri has not CPO producing factories but also oil palm plantations. Currently, it has a plantation area of 160,000 hectares or as many 28 oil palm plantations and 19 palm oil mills. Asian Agri's production capacity has now reached 1 million tons per year.

Nearly all of the Asian Agri workers are from the families that followed the transmigration program. In 1987, the company became a pioneer in helping the government to run the program. Currently, the number of families who have participated in the program and work in Asian Agri is 29,000 families. These families manage 60,000 hectares of oil palm plantation of the total 100,000 hectares owned by the company. The families are spread throughout the plantations in Riau and Jambi. Currently, it has employed approximately 25,000 employees.

Sukanto Tanoto and environmental focus of Asian Agri

Asian Agri is part of the companies in RGE group that only focuses not only on gaining profit, but also on the surrounding environment. This is in accordance with their philosophy of 3P (People, Planet, Profit). The serious commitment of the philosophy is particularly shown from the awards and certificates related to the environment.

Seeing from the number of plantations, palm oil mills and employee owned by Sukanto Tanoto, Asian Agri has been made it one of Indonesia's largest palm oil companies. This company’s sensitivity to global issues delivers successes in getting various awards and certificates in the environmental field. This reinforces the company to become the leading palm oil producer.

Certification in environment-related aspects

In 2007, Asian Agri obtained ISO 14001 in the environmental aspect for the entire factory. While the Asian Agri Institute of Education in Pelawan, Riau obtained ISO 9001 certificate for quality. In 2012,  through PT Inti Indosawit Subur, the company became one of the largest palm oil producers that had been certified with ISCC (International Sustainability & Carbon Certification). This company’s core of Indosawit has a total production of 126.000MT CPO with the world palm oil price of US $ 20-US $ 30 per ton.

ISCC is the first international certification, which aims to prove the sustainability and efficiency of the company in producing all kinds of products from biomass in relation to the greenhouse effect. Obtaining this certification means that Asian Agri is able to produce CPO based on the EU Renewable Energy Directive Standards. Sukanto Tanoto has proved his commitment for the environment.

Sukanto Tanoto and International Business Expansion

SukantoTanoto undoubtedly has been expanding his businesses in Indonesia. However, it does not stop him to set higher targets to develop his business even more. He had had thought of bringing his business into broader reach in the international scale. He has seen many businesses and his instincts in business led him to go to Brazil. There, he expanded his business and worked hard until it resulted in a company called Sateri.

Sateri: Business Expansion in Brazil by Sukanto Tanoto

Sateri Holdings Limited is the manifestation of Sukanto Tanoto’s efforts to expand his business into international scale. Sateri is a company in Brazil that is specialized in manufacturing cellulose. Sateri produces products derived from pure pulp and staple fibers, which become the natural raw materials and the key ingredients of many everyday commercial products ranging from textiles, baby wipes, and glasses frames, ice cream softener, sausage cover, drugs, or industrial products such as tire fabric.

Sukanto Tanoto makes Sateri a vertically integrated business. The upstream business in Brazil is the renewable plantation of eucalyptus trees, which are planted on 150,000 hectares of area, and a processing factory that produces pure pulp. Meanwhile, the downstream business is located in China with a production facility to convert pure pulp into staple fibers. This downstream business is aimed at fulfilling the demands of the market’s rapid growth in China.

The pulp factory in Brazil has a production capacity of 485,000 metric tons per year. While the staple fiber factory in Jiangxi, China has a capacity of 160,000 metric tons per year. In addition to the two factories, Sateri also builds a staple fiber-processing factory in Fujian, China with a production capacity of 200,000 metric tons per year. This factory has been operating since late 2013 ago.

Similar priority toward environmental sustainability

Similar to the other companies owned by Sukanto Tanoto in Indonesia, Sateri has a high priority on the social responsibility to the environment. It is committed to the preservation and protection of the environment in any operational activities within Sateri factories. Its products are made from trees, which are renewable with re-plantation.

For further advancement of its business, Sateri has sold its shares on the stock exchange in Hong Kong. This makes Sateri a Go-Public company in the international trade. SukantoTanoto’s business expansion in Brazil, with Sateri Holdings Limited, is a seriously managed business. Reviewing from the achievement, this business runs with high commitment. In fact, it has been able to develop further to other countries, including China.

Sukanto Tanoto and RAPP for the Environment

Recently, Sukanto Tanoto through his Tanoto Foundation in cooperation with PT. Riau Andalan Pulp and Paper (RAPP) has conducted campaigns to preserve the environment. The campaign was carried out around the area of  Kuansing. The main agenda of the activity is to prepare trainers from every school to socialize the importance of having healthy and environmentally friendly school. The program was held for three days, from Tuesday, November 4, 2014 to Thursday November 6, 2014 at the Hall of Hotel Kuantan. The environmental awareness program is receiving pretty good appreciation from many parties and perceived to be a positive activity.

Sukanto Tanoto Raising Environmental Awareness

The event, which was in the form of sharing and discussion, aimed at improving the quality of trainers as well as enhancing their knowledge about the environment and the right way to treat it. These trainers are supposed to be the facilitators and pioneers to promote the environmental health awareness towards the community where they come from.

Sukanto Tanoto and RAPP have made some partnerships with the other related parties, such as the Department of Education, Badan Lingkungan Hidup (The Environment Agency), the Department of Health, and health centers. Some schools that had received the Adiwiyata Award and other healthy school awards were also invited to share their experiences to the 20 representatives from 10 different schools.

These schools are assisted under the supervision of Tanoto Foundation in Central Kuantan District, Benai, Kuantan Hilir and Inuman, and Kuantan Senggigi District. The event is expected to be a part of yearly program held by the RGE Group company in Riau Province. Thus, it will be a continuous program that will educate more and more people to love the environment.

Inspiring program for environmental preservation

The activity done by Sukanto Tanoto through his foundation and RAPP has an important role in inspiring the community to do the same thing for the environment. The Indonesia’s tycoon is quite well known for his cares to the social welfare as well to the environmental conservation. Therefore, the campaigns can be a trigger for the other positive programs from the community. This will then be expected to give broader influences with more and more people aware of conserving the environment.

Sukanto Tanoto is quite active in promoting the environment conservation. This is done not only though campaigns, but also in his businesses. He has encouraged the use of energy more efficiently and the creation of alternative energy for his business operation. This reflects his deep understanding about the relation between environment and business existence in the future.

 

Tanoto Foundation Held Training For Pre-School Teachers

The commitment of RGE founder, Sukanto Tanoto, toward education is unquestionable. This is evident from the focuses of Corporate Social Responsibility (CSR) programs in all of RGE’s member companies, including RAPP and Asian Agri. These companies collaborate with Tanoto Foundation to distribute the donations, hold skill trainings, and conduct the construction projects. Sukanto Tanoto realizes that education is the basis for improving the people’s standard of living. Therefore, he and his companies commit to be a steward to the community, particularly in the basic sectors such as education, health, and infrastructures.

Tanoto Foundation Collaborated with Asian Agri and RAPP

As reported in a local newspaper of Riau, namely Goriau.com, the foundation recently collaborated with RGE companies operating in Riau, namely RAPP and Asian Agri, to hold a 248-hour teacher training session for Pre-School Teacher (PAUD) in Pelalawan, Riau. This aims at improving the teacher competence and standardization of early education facilities and teaching methods. Teacher plays an essential role in shaping the pre-school kids’ character.

To hold this program, Tanoto Foundation also collaborated with the Directorate General of Early Education, the Ministry of Education and Culture as well as with local government institutions. The training was formally opened by the Regent’s wife, Hj. Ratna Nainar Harris. In her opening speech, she admitted that pre-school students rarely have the chance to enhance their competence. Therefore, the training session would be a useful means of improving their teaching skills.

As told by the representative of Tanoto Foundation, the training program is aimed at supporting the Local and Provincial Programs for early education designed by the Governor’s and Regent’s Wife to standardize the pre-school teachers’ competence. The company has social responsibilities for the surrounding community, particularly in Pelalawan, to comply with the National Education Standard as specified in the Indonesian Government Regulation No. 19/2005.

Tanoto Foundation donates educative games

During the opening session, Tanoto Foundation donated educative props to some Kindergarten in Pelalawan. Educative gaming equipment is expected to help the pre-school teachers in teaching the kids on how to live in a healthy and smart way. This way, the kindergarten schools are expected to generate high quality students, who will be ready for the next stage of education in their life. Children with optimum emotional, intellectual, and spiritual growth are valuable assets for this country.

The teacher training programs involved kindergarten and pre-school teachers from Riau, Jambi, and North Sumatra. The session included theoretical subjects related to early education and 48 hours of practice, in addition to independent assignments.