Engagement in Aceh
Supply Chain Base and the Leuser Ecosystem
We have approximately 25 supplier mills located near the Leuser Ecosystem (Kawasan Ekosistem Leuser (KEL)).
As can be seen on the map, an Aceh Tamiang supplier mill, PT Pati Sari (Pati Sari) is located on the boundary of the Leuser ecosystem. We have been engaging Pati Sari on policy commitment matters and they are currently complying with our policy commitments.
We have engaged nine suppliers on our sustainability commitments, including five mills which undertook assessments by independent auditors commissioned by Musim Mas.
From the engagement, some common issues were identified, including:
- Gaps in suppliers’ operational practices to baseline sustainability standards, such as in identifying HCV and HCS areas, traceability to third-party suppliers, Occupational Health and Safety management etc.
- Gaps in Smallholders ’ productivity which stem from limited knowledge on Good Agricultural Practices, compared to large Plantation companies.
- Legality uncertainty in supply sheds is common, especially related to plantations operating in the vicinity of the Leuser Ecosystem.
Solutions Based Approach
Understanding supplier challenges
Five mill assessments were conducted in Aceh, which covers approximately 20% of our third-party supply base across the landscapes. We have analysed the results of these assessments and developed an aggregated understanding of the issues. Our mill assessment efforts form the basis of the joint landscape work and our outreach programmes (see below).
Participative Collaboration on Landscape work - As the Leuser region supply chain links to multiple stakeholders, we are collaborating with industry peers and partners via the Areal Prioritas Transformasi (APT) coalition. Much of the work in coming months will involve supporting the regency/district level governments on spatial and land use planning efforts. The buy-in and support from the regency Bupatis will be instrumental to the success of landscape work.
Building Supplier Capacity
Supplier workshops - To create awareness, understanding, and acceptance of our Sustainability commitments we conducted broad-level engagement workshops and individual supplier workshops.
Independent Smallholders programmes - To improve the standards of our suppliers' supply chain (independent Smallholders ), we will be implementing our Extension Services Programme (ESP).
The ESP serves to elevate industry standards by supporting independent Smallholders with good agricultural practices and best practices, and improved access to finance and good farming materials (seeds and fertilisers).
We will also encourage and support the Smallholders to pursue ISPO/ RSPO certification, which in the long run would enable them to actively participate in the global marketplace.
Our supplier within proximity of the Leuser ecosystem, PT Pati Sari has agreed to the implementation of ESP to its supply chain. We are currently (December 2017) preparing for the project to this supply base.
Supplier specific support programmes - These are customised and catered to close the gaps for suppliers. We are discussing the implementation of traceability with mills (PT Ensem Sawita in collaboration with industry peer Golden Agri-Resources).
We are collaborating with an industry peer to assist Ensem Sawita with tits action plan for sustainability.
To read more, please click here.
We have identified the key risks within the supply base of Pati Sari, and the opportunities via practical and effective solutions for a sustainable supply chain.
To read more, please click here.
Lessons Learnt on Transformation
- Adopt an emphatic approach in the wider conservation dialogue. It is important to recognise and understand the reasons for apathy or inertia by suppliers, and work towards resolving issues.
- The common thread of the issues is a systemic one concerning the need for long-term spatial and land use planning. A systemic issue requires thoughtful planning to balance the socio-economic and environmental needs, adoption of a longer time horizon, and sensitivity in its handling.
- Public-Private Partnership (P3 framework) is critical to addressing the wider issues. Neither the public nor private sector can go alone. Collaboration between the different sectors is critical not just in terms of monetary resources and knowledge sharing, but more importantly, in terms of forging critical relationships and supporting the crafting of legislation/ regulation. The collaboration will also provide a consistent and conducive environment for pursuing the main agenda of conservation (environmental needs) and equitable development (socio-economic needs), and enhance accountability.
Priorities in 2018 in Aceh
We will implement field projects as a catalyst for positive changes on the ground, and plan to participate actively in initiatives in Aceh Tamiang, Aceh Singkil and Aceh Timur to make a difference. Specifically, we will engage the local governments through our work on the Areal Prioritas Transformasi (APT) platform to look into spatial and land use planning. Find out more about the project via our implementation partner, the Forest Trust's website here.
Based on a scoping exercise which confirmed the findings of our desktop analysis and risk assessments, we will run a High Carbon Stock (HCS) trial for Smallholders in collaboration with Cargill, supported by Proforest. We aim to develop a protection-production plan customised for the Smallholders . This would be done through participatory mapping of HCV-HCS areas, existing and potential expansion smallholder plots. We will compare the accuracy and time requirements against standard HCSA protocols for large-scale concession and simplify alternatives for Smallholders . The methodology would be presented to the HCSA smallholder working group as a pilot.
We are also exploring if we can conduct training on wildlife protection in the same landscape, via the PONGO Alliance.
Additionally, we will also be focusing on the Extension Services Programme (ESP) to directly elevate the sustainability standards of the sector, particularly targeted at building the capacity of independent Smallholders in our extended third-party supply chain.