Apical Group and Business Principles for Sustainability

As the mainstay of economic activities in remote areas, agricultural sector becomes the focus of RGE group companies, including Apical Group. Yes, RGE group, which is owned by one of Indonesia’s tycoons, Sukanto Tanoto, focuses in various aspects of palm oil industry, including sourcing, crude palm oil (CPO) trading, refining, and merchandising distribution in Indonesia and China. Apical’s products are made into various end products used by people around the world in their daily life.

Apical Group and Business Principles

SukantoTanoto applies almost similar principles in all of the companies led by RGE Group. The same thing is true for Apical Group. It is one of the largest exporters of palm oil in Indonesia and controls wide spectrum of palm-relate business chain. The large business entity is built mainly upon three models, namely reliable and wide-ranging network of CPO sources, integration of assets in its primary and secondary refinery facilities, and efficient logistic channels. This way, the company ensures that the diversified buyers receive products in uniform quality.

The business model allows Apical Group to take control over the quality, to focus on sustainability and food safety, and to ensure efficiency and synergy in every step it takes within the business chain. This way, it is able to ensure profits for all shareholders. In addition, Sukanto Tanoto never underestimates the need for sustainable operation in his businesses, which mainly focus on natural resource exploration. He realizes that agricultural sector, such as oil palm cultivation, plays a significant role in the social economic development of the rural areas. Therefore, the business must be managed in a sustainable way to contribute to the economic improvements of all stakeholders in a sustainable way.

Apical Group and Sustainable Business Operation

To prove its commitment to the sustainable environment, Apical Group has made many efforts. They include collaboration with suppliers and stakeholders in building a transparent and appreciable supply chain of palm oil. Recently, it backed the New York Declaration of Forests during the United Nations Climate Summit, which was held in September 2014. In addition, it participates in Roundtable on Sustainable Palm Oil (RSPO) as an active member.

Apical Group attempts to improve its sustainable business principle from time to time. In 2014, for example, it signed Sustainable Palm Oil Manifesto, established Sustainable Palm Oil Policy, and published the policy statement in its website. The policy statement maintains its commitment to protect areas with high carbon stock and conservation value, protect peat land of any depth, and to drive socio-economic activities of the surrounding communities.