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By Devane Sharma

Musim Mas, Wilmar and Golden Agri joint suppliers workshop

Introduction

On 15 May 2024, Musim Mas, Golden Agri Resources (GAR), and Wilmar held a joint workshop to support their suppliers in abiding by deforestation-free palm oil production. This is also the third suppliers’ workshop in the region organized by Musim Mas. We partnered with GAR in the first and second workshops in March and November 2022, and Wilmar joined in 2024.

The third workshop, held in Subulussalam, Aceh, was attended by 105 participants from Aceh Selatan, Subulussalam, and Aceh Singkil, including representatives from supplier mills, local traders and farmers, government officials, and civil society organizations (CSO). This time the scope of the workshop is expanded to beyond suppliers.

This collaborative workshop reached out to a broader group of companies beyond their supply chain, including smaller upstream players. Partnerships in priority landscapes such as Aceh can potentially have a more significant impact on addressing deforestation by bringing together supply chain actors, the government, NGOs, and others.

Musim Mas and 13 other agricultural companies, including GAR and Wilmar, signed the Agriculture Sector Roadmap to 1.5 Degrees, convened by the Tropical Forest Alliance (TFA). The roadmap aims to halt commodity-linked deforestation and enhance smallholder livelihoods.

Prioritizing the High-Risk Aceh Landscape

Musim Mas is committed to sustainable sourcing based on No Deforestation, No Peat, and No Exploitation (NDPE) principles and supply chains in its key sourcing areas.

Implementing such policies is essential in regions such as the Aceh Province in Indonesia, renowned for its rich biodiversity and vital conservation areas such as the Rawa Singkil Wildlife Reserve and the Leuser Landscape. In 2020, Musim Mas launched its five-year Aceh Strategy and Roadmap, which details the group’s targets for implementing its NDPE policy in the region.

While Musim Mas has no operational presence in Aceh, and the province constitutes less than 10% of Musim Mas’ total supply base, we recognize Aceh as an important biodiversity hotspot. Musim Mas believes in the importance of collaborations in Aceh to ensure its supply is NDPE-compliant.

Growing A Platform for Collaborative Action

The primary objectives of the workshop were to:

  • Improve the understanding of local players on government regulations and management practices in the Southern Aceh Landscape.
  • Support sustainable palm oil practices and protect critical conservation areas such as the Rawa Singkil Wildlife Reserve Area.
  • Socialize good practices regarding due diligence, traceability to plantations (TTP), and complaint-handling mechanisms.
  • Share the sourcing policies of Musim Mas, GAR, and Wilmar.

Through the sessions, participants were able to learn the importance of NDPE compliance for the long-term sustainability of their business, as well as gain a better understanding of local laws and regulations. The impact of NDPE compliance on the acceptance of Indonesian palm oil products in the global market was also discussed in the workshop. In addition, discussions revolved around building transparency and good communication to enable joint efforts toward NDPE compliance.

This third workshop also emphasized dialogue, with attendees from different stakeholder groups encouraged to share their perspectives. Two suppliers, namely PT Samudera Sawit Nabati (PT SSN) and PT Runding Putra Persada (PT RPP), shared how they dealt with past grievances through engagement and verification.

Key Takeaways

No Deforestation, No Peat, No Exploitation (NDPE) Commitment

One of the critical aspects of the NDPE commitment is preventing deforestation. During the workshop, Musim Mas, GAR, and Wilmar representatives shared their deforestation monitoring and traceability systems. The multi-pronged approach by these companies helps identify and monitor areas at risk of deforestation, ensuring that palm oil is not sourced from illegally cleared lands. Among the methods used are satellite imagery and ground checks.

Collaborative Efforts and Stakeholder Engagement

A significant takeaway from the workshop was the emphasis on collaboration. Musim Mas, GAR, and Wilmar are not working in isolation; they constantly engage with various stakeholders, including government institutions, local NGOs, and technical experts. Such a multi-stakeholder platform allows for a more comprehensive approach to sustainability, incorporating diverse perspectives and expertise.

Government Collaboration

The involvement of government representatives, such as those from the Aceh Province Agriculture and Plantation Department, was crucial. Government regulations and support are essential for the enforcement of sustainable practices and the protection of conservation areas. The workshop facilitated a dialogue between companies and government agencies, aligning their efforts toward common sustainability goals. This includes understanding policies around the government’s Singkil Wildlife Reserve Management system (BKSDA).

Musim Mas’ Landscape Based Approach

This workshop is an initiative under Musim Mas’ landscape-based approach. This sustainability methodology involves engaging players in a geographical landscape, including those outside one’s supply chain. It aims to achieve sustainable land use by holistically addressing ecological, social, and economic factors.

Conclusion

This multi-stakeholder workshop in Subulussalam by Musim Mas, Golden Agri Resources, and Wilmar in Southern Aceh exemplifies the comprehensive strategy of these palm oil majors to achieve agricultural sustainability. By addressing the interconnected issues of deforestation, peatland degradation, and exploitation, these companies are setting a benchmark for sustainable palm oil production. The workshop highlighted the importance of collaboration and shared commitment among various stakeholders to protect the region’s valuable ecosystems and support sustainable development. The vision of a sustainable palm oil industry that respects the environment and local communities can be realized through continued efforts and engagement.