Bringing Benefits to Local Communities
The production of Palm Oil is a powerful engine for rural development and can raise millions out of poverty. In Indonesia where the bulk of our upstream operations are situated, the World Bank estimates that there are still 28 million* Indonesians living below the poverty line, despite significant economic progress over the last 15 years.
Socially responsible companies operating in a remote area offer tremendous opportunities in the fight against rural poverty, by providing jobs and basic amenities such as roads which provide access to facilities, medical services and education to the rural population. Modest investments in the poorest regions can make a huge difference.
The largest employer in Indonesia is the agricultural sector, which employs approximately 35% of the workforce. Indonesia is the world’s largest producer of Palm Oil . In comparison, the manufacturing sector accounts for 24% of the Gross Domestic Product (GDP) and employs 13% of the workforce.
Our integrated business straddles both the agricultural and manufacturing sectors, providing jobs for 37,000 people globally, especially in Indonesia where the bulk of our estates and manufacturing plants are located.
We are committed to a mutually beneficial growth that will incorporate the well-being of our workers and local communities, allowing all to reap the benefits from a sustainable model of oil palm development. We strive for sustained long-term partnerships with community organisations, which allows us to address issues important to the company and to the communities where we operate.
Free Prior and Informed Consent before Development
We adhere to the international norm of engaging with the local community when developing new areas, also known as Free, Prior and Informed Consent (FPIC). This means that the negotiations and compensation for lost benefits and/or relinquishing of rights are conducted in a non-coercive manner and agreed upon voluntarily by the communities.
All negotiations concerning compensation for loss of legal or Customary rights , or other complaints and grievances are fully documented.