25 April 2016
Sime Darby Embarks on First Planting of Genome Select Oil Palm
Kuala Lumpur, 25 April 2016 – Seven years after successfully decoding the oil palm genome, Sime Darby Plantation commenced its first large scale planting of Genome Select high yielding oil palms, a major milestone that will allow the company to produce more oil with existing land.
Oil palms selected using genetic testing tools to deliver higher yield in the field will be planted at two 50ha sites located in the coastal and inland areas.
In 2009, Sime Darby was the first in the world to successfully use new (2nd generation) technology to sequence, assemble and annotate the complex sequence of 1.8 billion chemical units that make up the genetic code of the oil palm.
President & Group Chief Executive of Sime Darby, Tan Sri Dato’ Seri Mohd Bakke Salleh said: “The Genome Select palm will significantly deliver higher oil yields without having to increase our hectarage. This is in line with Sime Darby’s sustainability commitment to increase yields from the ground, thus minimising green and brown field expansions.
“Over the past seven years, we have applied our knowledge of the oil palm genome to our oil palm populations along with genetic testing and we are now able to select the best seedlings to plant and identify the best parental palms for seed production. Sime Darby has pioneered many innovations in the plantation industry and we are proud to continue this tradition with the genome project.”
The selected palms have the potential to produce at least 15% more oil than Sime Darby Plantation’s Calix 600, currently its best planting material. Under good growth conditions, the potential yield from the Genome Select palms can go above 11 MT oil/ha, resulting in average yields above 6.1 MT oil/ha across all environments in Sime Darby’s Malaysian plantations, compared to Calix 600 yields of 5.3 MT oil/ha. By 2023, Sime Darby Plantation will have enough genome materials to meet all of its Malaysian replanting requirements. The company has a replanting policy of 4%-5% of its land area in Malaysia annually.
Sime Darby Plantation Managing Director Datuk Franki Anthony Dass said the scientific breakthrough will help the company tackle major challenges in the plantation industry, namely securing new land.
“As the world’s biggest producer of sustainable palm oil, we can produce more oil from the land that we have now. Our achievement in 2009 was just the tip of the iceberg and we are seeing the results today. We will intensify our R&D efforts to produce palms that are not just high yielding but are also more resilient to weather conditions and more efficient in terms of nutrition and water use.”
According to Sime Darby Plantation’s Head in charge of Research and Development, Dr Harikrishna Kulaveerasingam, Sime Darby’s R&D team in Biotechnology and Breeding has sequenced over 200 oil palms which were carefully selected to represent the diversity of Sime Darby’s collection. These genetic codes were analysed with the help of Sime Darby Plantation’s palm breeding studies over the last 20 years, allowing the team to identify the traits of high yielding palms. The team was then able to produce a formula to predict the yield of an oil palm using a genetic test.
A genetic testing facility was established in 2015 at the Sime Darby Technology Centre where the 80,000 seedlings required for the Genome Select planting were sampled, labelled and analysed.
“The future has never been more exciting. As we move forward, we will be able to do this faster and more accurately, which in turn means that we can improve our field performance with better trees,” said Dr Harikrishna, one of the world’s leading research authority on oil palm.
27 July 2016
Sime Darby's Ulu Remis Palm Oil Mill Cleared for Operations
Kuala Lumpur, 27 July 2016 - Sime Darby Plantation yesterday received a letter from the Department of Environment, Johor, reinstating the license to operate its Ulu Remis Palm Oil Mill in Johor.
In the letter, based on the initiatives taken by Sime Darby Plantation as well as the Company’s commitment to implement improved control measures at its Mills, the Department cancelled the suspension notice allowing the Mill to resume its operations.
On 14 July 2016, Sime Darby Plantation’s Ulu Remis Palm Oil Mill received a Notice of 60-day Suspension of License. This was issued due to an overflow of treated POME in 1 out of 109 field furrows. Investigations showed that the effluent overflow traces were contained and captured by our field control trenches to ensure there were no spillages into any waterways.
On earlier reports of the Mill’s Palm Oil Mill Effluent (POME) contributing to the contamination of the river, we would like to clarify that tests on water samples from various points around our operations area at both Sungai Remis and Sungai Sayong (both lead into Sungai Johor) indicated that indeed there was no evidence the mill or the estate could be the cause of ammonia contamination.
Sime Darby Plantation is committed to protecting the environment and conserving biodiversity through sustainable development. This is a prime consideration in all aspects and stages of our plantation operations.
16 September 2016
Response to Mongabay Article
We refer to an article published on Mongabay on 14 September headlined Liberia land policy a ‘challenge to national development’. Sime Darby Plantation would like to categorically state that it is not involved in any ‘land grabs’. The company only develops land where it has the free, prior and informed consent (FPIC) of affected communities.
We would also like to clarify other inaccuracies in the article:
1. Statement: Sime Darby, a Malaysian oil company and citizens of Grand Cape Mount county have on several occasions had bitter disputes Actual situation:
2. Statement: the company has gone beyond the boundary as spelled out in the agreement
Actual situation:
3. Statement: the company is destroying their farmlands
Actual situation:
4. Statement: residents don’t know exactly how many hectares of land was granted to Sime Darby by the government
Actual situation:
5. Statement: the company expanding its plantation every year
Actual situation:
Year Planted | Oil Palm | Rubber | Oil Palm Rubber | |
Yearly | Accumulated | |||
2010/11 | 1567 | 1567 | 0 | 1567 |
2011/12 | 3351 | 4918 | 0 | 4918 |
2012/13 | 4387 | 9305 | 0 | 9305 |
2013/14 | 548 | 9853 | 107 | 9960 |
2014/15* | 477 | 10330 | 0 | 10437 |
2015/16 | 0 | 10330 | 0 | 10437 |
TOTAL PLANTED HECTARAGE |
| 10330 | 107 | 10437 |
*Land clearing and planting stopped due to Moratorium in September 2014
17 November 2022
02 February 2019
01 February 2019
08 November 2016
Statement on TUK Factsheet
Kuala Lumpur, 8 November 2016 – We refer to the factsheet issued by Transformasi untuk Keadilan (TUK) Indonesia on 7 November 2016 related to PT Mitra Austral Sejahtera (PT MAS). Sime Darby Plantation is committed to assisting the communities to resolve these issues.
We are sympathetic to the situation of the people and have agreed to assist in dialogues with the authorities. However, we are unable to accede to their demands at this point as it is against the terms of the contract signed with the government of Indonesia.
We would also like to address certain inaccuracies in the factsheet.
1. In 2012, PT MAS and the local communities agreed to set up a working team (TKPP) comprising local communities and the company, to discuss the 14 demands made by the community. There were representatives from 9 communities who were part of the working team. In October 2013, representatives from 2 communities, Kerunang & Entapang villages, withdrew from TKPP, alleging it was improperly formed, there were different understanding of the issues, and claiming that the facts of their case and the solutions therefore would be different from other communities.
Other villages that make up 80% of the local population, have continued to engage PT MAS through TKPP. As at end July 2015, 12 demands have been resolved with the communities, excluding Kerunang & Entapang. This is documented in our 7th progress report to the RSPO.
2. Simultaneously, PT MAS continues to engage with the communities of Kerunang and Entapang. We have met with representatives of both communities several times.
Sime Darby Plantation will continue to engage with the communities and offer all assistance to resolve these issues. We will also continue to report on our engagements in a transparent manner to the RSPO.
17 November 2022
02 February 2019
01 February 2019
08 November 2016
Agreement on Unified Approach to Implementing No Deforestation Commitments
Bangkok, 8 November 2016 - Following a year of intensive work, the HCS Convergence Working Group announced in Bangkok that they have reached agreement on convergence between the HCSA and HCS+ approaches. The Group has agreed on a single, coherent set of principles for implementation of companies’ commitments to “no deforestation” in their palm oil operations and supply chains. The members of the Group worked together constructively to develop recommendations that provide a roadmap forward for addressing the issues that remain in a collaborative and integrated way.
The agreement outlines:
The recommendations will be incorporated into the revised HCSA Toolkit and the members of the Group are committed to further the implementation of these recommendations and to address the important remaining issues through their engagement in the HCSA Steering Group. In addition, the agreement will be reflected in the policies and positions of the organizations endorsing this agreement and the revised HCSA toolkit will be implemented by the companies when it is issued in early 2017.
Organizations reaching agreement are:
This agreement has also been received and endorsed by Executive Committee of the HCSA.
Quotes from a number of the participating organizations:
“This is a significant milestone for the palm oil industry to enable us to meet our "no deforestation" commitments. This initiative is a clear demonstration of what is possible when all parties collaborate openly. While we recognise there are issues that need to be further addressed, such as balancing the socio-economic development needs in highly forested landscapes, we are committed to working through these with the other members of the HCS Steering Group,” said Datuk Franki Anthony Dass, Managing Director, Sime Darby Plantation.
"Agreeing a single approach to put No Deforestation into practice is a huge step forward for the palm oil sector and the environment. HCS convergence has not been an easy road but we got there in the end - this is a game changer for the forests and communities where oil palm is expanding in Asia and Africa," said Kiki Taufik, Global Head of Indonesian Forests, Greenpeace.
"The Agreement is a significant step in uniting the palm oil industry and all its stakeholders toward a common understanding about how to protect forests and peatlands. More importantly, it will lead to collaborative and concrete actions on the ground toward achieving this goal” said Dato' Lee's Yeow Chor, Group CEO, IOI Corporation Berhad.
Jeremy Goon, Chief Sustainability Officer, Wilmar said, “Recognising the importance of having a unified HCS methodology, in 2014 – 2015 Wilmar joined the HCS+ scientific study despite not being a signatory to the Palm Oil Manifesto (SPOM). Wilmar was already a member of the HCS Approach (HCSA) Steering Committee. With the intent of bridging the differences between the HCSA and HCS+, we actively contributed to the convergence process. Wilmar is very pleased that the efforts of stakeholders representing these two groups have now resulted in agreement and a unified approach to the application of No Deforestation commitments by palm oil companies. We look forward to having more plantation companies commit to zero deforestation and join us in making palm oil a sustainable, globally acceptable and competitive product.”
“Rainforest Action Network supports this foundation-laying agreement between the major players in the industry to finally break the link between palm oil and deforestation in Southeast Asia,” said Gemma Tillack, Agribusiness Campaign Director, Rainforest Action Network (RAN). “This new found consensus is a recognition by all parties of the urgent need to protect forests and peatlands while upholding community land rights. It’s now critical no more time is wasted turning these words into action.”
“As an early adopter of the HCS Approach Golden Agri-Resources is delighted to support this HCS convergence agreement and the development of a single pathway for the identification and protection of forests,” said Götz Martin, Head of Sustainability Implementation, Sinarmas Agribusiness.
Dhaval Buch, Chief Procurement Officer, Unilever said “Unilever supports the foundation work laid out in the HCS convergence agreement. We encourage all growers and users of palm oil to adopt this methodology and move to implementation. Unilever recognizes the next big challenges would be to ensure the application of HCS in high forest landscapes and with smallholders and support the industry to move swiftly to find a pathway forward for these issues.”
“It’s a historic day for forests, communities and for businesses”, says Bastien Sachet, CEO, TFT. “This agreement means there is now a single common practical tool that brings together those who want to conserve forests and develop responsibly, maximizing benefits for Nature and People”. “It’s the kind of win-win achievement that only high level mutual trust can bring and that we all need today to face climate change and a rising population.”
We welcome the agreement that the converged High Carbon Stock method will include Social Requirements to ensure that the rights and livelihoods of indigenous peoples, local communities, smallholders and workers are properly accommodated. Respect for customary rights, food security, community involvement in land use planning and free, prior and informed consent are critical building blocks to ensure sound development outcomes, alongside incentives and support, for both communities and planters, to maintain forests and high conservation values, said Marcus Colchester of the Forest Peoples Programme. Our next challenge is to develop credible systems to ensure high quality assessments, independent verification and means of redress, he added.
Dr. Petra Meekers, Director of Sustainable Development and CSR, Musim Mas said, “Musim Mas is pleased with the outcome of this important process. We believe that this outcome can be supported by the Roundtable on Sustainable Palm Oil (RSPO) as the HCS tool. It is also our aspiration to look at an inclusive pathway that will address the aspirations of local communities and the smallholders too.”
“This agreement is an important step towards defining what zero deforestation actually means on the ground. We need to make sure it is adopted far beyond the palm oil industry by the other sectors that have been driving deforestation around the world,” said Aditya Bayunanda, Forest Commodity Leader, WWF-Indonesia. “Now we have to fully integrate HCS and HCV and clearly define how they are applied beyond the fragmented moist tropical landscapes for which the approach was developed.”
09 January 2017
NBPOL Truck involved in accident
It is with great sadness that New Britain Palm Oil Limited would like to confirm that one of its trucks from Higaturu Oil Palms was involved in a road accident with a PMV on the main Oro Bay to Kokoda highway on the afternoon of Monday, 9 January 2017. At the time of the incident, the PMV was ferrying 29 passengers of whom 13 died and a number have been injured and are now under treatment at the Popondetta General Hospital.
Higaturu Oil Palms is cooperating fully with the police in its investigations.
NBPOL is committed and adheres to high safety standards. We are undertaking internal investigations to determine the cause of this accident.
The Company extends its deepest condolences to the families of those who died in the accident.
16 January 2017
Response to TUK
We refer to the letter from Transformasi Untuk Keadilan (TUK) Indonesia dated 16 January 2017 related to the activities of Sime Darby Plantation in Indonesia. TUK cited four areas under PT Mitra Austral Sejahtera (PT MAS), PT. Guthrie Pecconina Indonesia (GPI), PT. Swadaya Andika (SAA) and PT. Tamaco Graha Krida (TGK).
Sime Darby Plantation, as part of our commitment to transparency, good governance and disclosure, has provided regular updates on the operations of all these companies in keeping with the processes of the Roundtable on Sustainable Palm Oil (RSPO). These reports are in the public domain. We will continue to provide updates as we seek resolution for the issues in each of these areas (see below for more information).
We would like to thank TUK for recognising that Sime Darby Plantation has already instituted corrective actions for these issues. We will continue to seek full resolution for each and every issue raised, as we believe in working constructively with all our stakeholders, especially the communities in our areas of operations. We would also like to unequivocally state that we will continue to assist the communities of PT MAS as we have over the past several years.
In 2012, PT MAS and the local communities agreed to set up a working team (TKPP) comprising local communities and the company, to discuss the 14 demands made by the community. There were representatives from 9 communities who were part of the working team. In October 2013, representatives from 2 communities, Kerunang & Entapang villages, withdrew from TKPP, alleging it was improperly formed and that there was different understanding of the issues at hand. The representatives of these two communities further claimed that the facts of their case and the solutions should be different from the other 7 communities. Despite the withdrawal from the TKPP, Sime Darby Plantation continues to engage with the Kerunang and Entapang communities and their representatives.
Meanwhile, the other villages that make up 80% of the local population, have continued to engage PT MAS through TKPP. As at end July 2015, 12 demands have been resolved with these 7 communities.
As for PT GPI, PT SAA and PT TGK, all three companies are certified by the RSPO as mentioned in the reports cited by TUK. Sime Darby Plantation has been working to resolve all issues and we continue to disclose and update on our progress to the RSPO as part of the certification process.
While there are issues that remain unresolved, as we have already reported, we would like to clarify certain inaccuracies in the statement issued by TUK.
PT GPI
1. According to the statement issued by TUK: The company is operating illegally on more than 3,000ha
This is not true. In reality, and as mentioned in the auditor’s report, PT GPI has sought clarification from the National Land Agency on land measurements carried out on 12 October 2011 for 1,417.99ha. Meanwhile, the Plantation Services Department has informed PT GPI that another 1,843.73ha is awaiting the issuance of the land use title decree. The National Land Agency will process the land license once all requirements have been completed. Under Indonesia’s Peraturan Perkebunan (Plantation Regulation), companies can operate in an area with a Izin Usaha Perkebunan (IUP) (Plantation Business Permit). PT GPI has a valid IUP and is awaiting the issuance of the HGU.
2. TUK statement: It has been involved in land conflicts with local communities since 1998. In 2012, local communities have raised land claims in Karang Ringin Estate. Sime Darby Plantation is engaging with all relevant stakeholders.
PT SAA
3. TUK statement: Lack of land use titles. PT SAA operates in an area measuring a total of 10,361.18ha. It has land titles for all of this except 62.96ha in Randi Estate for which the request is still being processed.
4. Lack of agreements with local communities over the conservation of HCV areas. Sime Darby Plantation is pleased to report that actually the communities have agreed to conserve the HCV area. The management of PT SAA has engaged the local communities on the HCV requirements on 24 March 2016 in Lanting estate and on 9 November 2016 in Selabak estate.
PT TGK
5. TUK Statement: PT TGK is operating on land for which it has no licence
PT TGK has been granted the HGU by the National Land Agency or BPN. RSPO audit findings indicated that some planted areas are located outside the HGU. PT TGK had engaged BPN to re-measure and confirmed that some planted areas are outside the HGU. The areas have since been administered by the local government.
6. TUK statement: PT TGK sources from almost 3,000ha of smallholder areas, for which it does not have an EIA. The company has engaged with the District Environment Agency of Morowali where a field visit was conducted on 15 June 2016. PT TGK is now preparing an EIA Addendum for smallholder schemes in the Bungku Barat Sub-District, Bumi Raya Sub-District and Witaponda Sub-District, Morowali Regency, Central Sulawesi. This is part of our on- going efforts to assist smallholders who work with us to obtain certification.
7. TUK statement: There is lack of control over pesticide and fertilizer use, and the lack of protection of worker’s health.
Workers are provided with personal protective equipment and given regular training in the use of pesticide and fertilizer. Medical checks are carried out every six months.
Sime Darby Plantation will continue to engage with the communities and all other stakeholders and offer assistance where possible, to resolve these issues. We will also continue to report on our engagements in a transparent manner to the RSPO.
17 November 2022
02 February 2019
01 February 2019
25 April 2017
Sime Darby Plantation Expands Animal Feed Venture with PURAFEX
Superior feed ingredient from oil palm provides better value
Kuala Lumpur, 25 April 2017 – Sime Darby Plantation (SDP), the world’s largest producer of certified sustainable palm oil, today launched PURAFEX, a superior quality animal feed ingredient, laying the foundation for its foray into the animal feed business.
PURAFEX is made from palm kernel expellers (PKE), a by-product after palm kernels are crushed for their oil. SDP and the Malaysian Palm Oil Board (MPOB) developed a patented technology to produce PURAFEX.
Datuk Seri Mah Siew Keong, Minister of Plantation Industries and Commodities, officially launched PURAFEX at SDP’s Carey Island Kernel Crushing Plant. The plant also houses a new system to produce PURAFEX, which was built with full funding by MPOB.
“PURAFEX is a healthier and cost effective alternative for the animal feed industry. Our target was to produce an animal feed ingredient with the quality that would at least be on par with the current range available in the market. After a year of feed trials, careful assessment and comparison, I am proud to announce that PURAFEX has outperformed this expectation,” said Datuk Franki Anthony Dass, Managing Director of SDP.
Trials of feed containing PURAFEX have produced healthier chickens with much lower fat content. In addition, while the growth rate of the poultry fed with animal feed containing PURAFEX was comparable to other commercial feed, the mortality rate was shown to be lower than 3%, much lower than the industry standard of 4 to 5%.
The Carey Island Kernel Crushing Plant will be able to cater to 10 per cent of the total industry demand for chicken feed. SDP believes that demand for PURAFEX will grow in tandem with the growth in food demand based on the country’s increasing population. Malaysia’s population is projected to rise to more than 33 million in 2020.
“The versatility of palm oil has been well established with its usage in a wide variety of products and applications. Different parts of the oil palm fruit and tree, right down to its by-products offer tremendous commercial benefits. As part of our sustainability agenda, Sime Darby Plantation collaborated with MPOB and developed this palm kernel pre- cleaning system to further enhance the value of PKE as an animal feed ingredient for the poultry and aquaculture industries,” he added.
PURAFEX may prove to be significant for the national poultry industry where the cost of poultry feed accounts for 60 to 70% of total production cost, mainly due to the imported maize and soy used in chicken feed. Malaysia spends an average of RM5.6 billion on animal feed every year and about 55 per cent of that is spent on importing maize alone. The country is planning to reduce its feed corn imports by at least 50 per cent over the next few years*.
“PURAFEX can now be used to replace these imported ingredients. If PURAFEX accounts for 30% of the feed ingredient, this would deliver a minimum savings of more than 10% or around RM180 per tonne of chicken feed cost, depending on the prevailing market price,” explained Mohd Haris Mohd Arshad, Head of Downstream operations for SDP.
*(Source: Minister of Agriculture and Agro-based Industry interview with The Star, July 2016)
24 November 2017
Sime Darby Plantation Acquires Land in Kalimantan
Kuala Lumpur, 24 Nov 2017 - Sime Darby Plantation Berhad (SDP) would like to confirm a recent announcement that Mulligan International B.V (MIB), a wholly- owned subsidiary of the company, has on 24 November 2017, completed the acquisition of 90% equity interest in PT Tamiyang Sumber Rezeki (PT TSR) for a total cash consideration of IDR77.5 billion (equivalent to approximately RM23.6 million). Following the acquisition, PT TSR has become a 90%-owned subsidiary of Sime Darby Plantation.
PT TSR was incorporated in Indonesia in 2011 and has been granted with the Hak Izin Lokasi and the Izin Usaha Perkebunan on 20,000 hectares of land in Kabupaten Barito Timur, Kalimantan Tengah, Indonesia.
Plans are underway to develop the land and as part of its commitment in ensuring a balanced and sustainable development of its agricultural business wherever it operates, SDP has undertaken an internal High Carbon Stock Assessment (HCSA) which will be supplemented with RSPO’s New Planting Procedure(NPP) and a third- party external assessment prior to any planting.
SDP will also obtain Free, Prior and Informed Consent (FPIC) from the local communities prior to any development.
Sime Darby Plantation is strongly committed to sustainable development and this is manifested by the way it runs its business. As one of the founding members of the Roundtable on Sustainable Palm Oil (RSPO), Sime Darby Plantation has adopted best practices from the industry into its daily operations, and throughout the entire supply chain.
24 May 2017
Response to Foresthints.news
Kuala Lumpur, 24 May 2017 – We refer to the article titled “Sime Darby required to end any further HCS forest clearing” reported by foresthints.news on 23 May 2017.
It is correct that in 2012, Sime Darby Plantation (SDP) acquired PT ISLM, a 10,045 ha area with an approved “Izin Usaha Pemanfaatan Hasil Hutan Kayu Pada Hutan Tanaman Industri” from the government of Indonesia with a view to establishing rubber plantations.
PT ISLM was acquired from SLT Capital Pte Ltd and PT Entete Mining and not the Salim Group as reported.
It is correct that SDP has cleared land in the area, totalling 2,500 ha out of a total of 10,000 ha. An area of 1,800 ha has been planted. In accordance with our commitments under the Responsible Agriculture Charter (RAC), development of land for all crops, other than oil palm, will be in areas with low carbon stock from 2018. However land clearing in the Belitung area has already stopped.
The area in and around PT ISLM was logged over several years ago and there are ongoing illegal mining and timber extraction activities. There is also the issue of scattered encroachment for pepper and other food crops by the communities in the area.
Although the intended land use was for rubber plantations, SDP has applied assessment systems used by the Roundtable on Sustainable Palm Oil (RSPO) to ensure compliance with our internal sustainability policies and standards. These include:
SDP is closely monitoring developments at Belitung. Currently all HCV areas are being reassessed. Our internal teams are also conducting Land Use Change Analysis on the HCS areas and will submit our HCS assessments to the High Carbon Stock Secretariat for peer review and assessment.
SDP is also mindlful of the fact that 400 members of the local community are expecting to be gainfully employed by PT ISLM.
SDP will be pleased to engage further with all other interested stakeholders.
17 November 2022
02 February 2019
01 February 2019