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2013/SOM1/IEG/DIA/007
Session 2a-2

PT Hindoli Smallholders
Submitted by: Cargill

Public-Private Dialogue on Investment Corporate Social Responsibility for Local

Communities
Jakarta, Indonesia
30 January 2013

1/31/2013

PTHindoli Smallholders

AnthonyYeow
PresidentDirector,PTHindoli CargillTropicalPalm
30th January2013

Certificate No. ID08/1122

Certificate No. GB08/75238

Certificate No. SPO537874

An Overview of PT Hindoli

Cargill is
an international producer and marketer of
food, agricultural, financial and industrial
products and services

An Overview of PT Hindoli

1/31/2013

In Asia-Pacific, we have a presence in 16 countries & territories

China
Locations: 52
Employees: 6,536

Japan
Locations: 6
Employees: 336
South Korea
Locations: 9
Employees: 625

Pakistan
Locations: 1
Employees: 12

Chinese Taipei
Locations: 5
Employees: 207

India
Locations: 37
Employees: 2,070

Hong Kong
Locations: 1
Employees: 43

Sri Lanka
Locations: 1
Employees: 7

Philippines
Locations: 17
Employees: 489

Thailand
Locations: 9
Employees: 10,323
Malaysia
Locations: 12
Employees: 741

Australia
Locations: 79
Employees: 964

Singapore
Locations: 2
Employees: 494

Indonesia
Locations: 28
Employees: 10,291

Vietnam
Locations: 15
Employees: 959
New Zealand
Locations: 1
Employees: 2

with 34,000 employees* in over 250 locations

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* as of 29 February 2012

An Overview of PT Hindoli

We are active across a

broad range of agricultural commodities
Wheat

Soybeans

Soybean Oil

Corn

Canola (rape seed) Oil

Palm*

Barley

Sunflower Oil

Coconut Oil

Sorghum

Cottonseed Oil

Protein Meals

Cotton

* Palm

Sugar

commodities include Palm Oil, Palm Kernel Oil as well as Palm Kernel
An Overview of PT Hindoli

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Cargill in Indonesia:
Countrys largest US food and agriculture investor
Medan

Manado
Pontianak
Palembang

Jakarta

Lampung

Surabaya

Makassar

Semarang
Pandaan

28 Locations, 10,291 employees*

Facilities / Offices
Cargill Head Office
Grains & Oilseeds
Office
Warehouse
Crushing plant
Tropical Oils Asia
Palm oil plantations & mills

Animal Nutrition
Feed Mill & Office
Cocoa
Cocoa facility (origination)
Starches and Sweeteners
through our subsidiary Sorini
Office
Processing plant
*as of 29 February 2012

An Overview of PT Hindoli

AboutPTHindoli

PTHindoli isasubsidiaryofCargillTropicalPalmHoldings(CTP),headquarteredin
Singapore

CTPmanagesandoverseesthemanagementandoperationsofPTHindoli inSouth
SumatraandPTHarapan Sawit Lestari(HSL)andPTIndoSawit Kekal (ISK)inWest
Kalimantan,Indonesia

PTHindoli wasacquiredbyCargillin1995

Companyownedlandtotalsalmost20,000hectares;smallholders,20,000hectares

Twocrushingmillswithatotalcapacityof160tonnes perhour

Employs3,400workers

An Overview of PT Hindoli

1/31/2013

Commitment to sustainable palm oil

PT Hindoli received Roundtable of Sustainable Palm Oil
(RSPO) certification in 2009
PT Hindoli smallholders received RSPO certification in
August 2010:
o

8,800 smallholders in 18 cooperatives

Worlds first smallholder scheme certified under

RSPOs Smallholder Principles & Criteria

Joint effort and achievement of Cargill with

smallholders

Award best plantation business partner 2012 by the

South Sumatra government. Smallholder program
accorded a platinum award at the national Indonesian
CSR Awards 2011
Collaboration with World Wildlife Fund (WWF) to assess
our palm oil suppliers in Indonesia to implement RSPO
principles and criteria

An Overview of PT Hindoli

Background:PTHindoliSmallholders
Transmigrants fromJavaIsland
movedtoSouthSumatrainthelate
1980sandlaterbecametheHindoli
smallholdersunderPIRTrans
scheme.
10,000smallholdersholding20,000
hectaresrepresentedby20
cooperatives.
Oilpalmplantingoccurredbetween
1991and2000

An Overview of PT Hindoli

1/31/2013

Sustainablepalmoilmeanssustainablebusiness
Asmallholderkavling (plot)istheirfamilybusiness.
Yieldintensificationisaprecursortosmallholdereconomicwellbeing.
Sustainabilityrepresentslongevityandabilitytopassthebusinessontothenext
generation.
Plantationcompaniesandsmallholdersarebothequally responsibleforthesuccessof
thepartnership.

Average of
Farmers
income/year in
2006

Average of
Farmers
income/year in
2011

Average of Indonesians'
income /year in 2011
(based on inaplas data)

26,000,000

80,000,000

30,000,000

An Overview of PT Hindoli

Therelationshipbetween estateandsmallholders
Hindoli smallholderdevelopmentteamismadeupof31fulltimeprofessionals.
CooperativeslooktoHindoli asanexample.WhenHindoliachievedRSPO
certification,theytoowantedtoaccomplishthesame.
CargillmarketssmallholdersRSPOcertificatesandsharespremiumswiththe
smallholders.

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An Overview of PT Hindoli

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Workingwithsmallholders

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An Overview of PT Hindoli

Workingwithsmallholders

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An Overview of PT Hindoli

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PTHindoli Smallholdersrelentlesspursuitof
worldclassachievements

RSPOcertificationobtainedin2010proved
thatIndonesiansmallholderfarmersare
capableofproducingsustainablepalmoiland
evencompetingwithestablishedplantation
companies.

Smallholderscontinuedtobemotivatedand
preparedthemselvesforInternational
SustainableCarbonCertification(ISCC)tobe
trulysustainableforfoodandenergy
production.

ISCCisacertificationschemeapprovedbythe
EUtocovertheEURenewableEnergy
Directive(RED).ItdiffersfromRSPO
certificationinthetrackingofgreenhousegas
productionfromfieldtorefinery.Thisrequires
afullsupplychaincertification.

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An Overview of PT Hindoli

PTHindoli Smallholdersrelentlesspursuitof
worldclassachievements

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Hindoli Mukti Jaya with 1,900 members, was the first

cooperative to start working towards ISCC Certification.

One key challenge includes the need for all land owned by
the farmer to be ISCC P&C compliant, in addition to land
that is already earmarked for official ISCC audit.

PT Hindolis 11strong Farmer Development team and

Program Assurance Department guided the smallholders
throughout the process.

Hindoli Mukti Jaya achieved success in June 2012 with the

receipt of ISCCEU certification.

PT Hindoli
continues working with and preparing
remaining cooperatives to achieve ISCC certification
before 2014.

Smallholders achieved RSPO and ISCC certification through

two independent bodies SGS for ISCC and BSi for RSPO.
An Overview of PT Hindoli

1/31/2013

PTHindoli Smallholdersrelentlesspursuitof
worldclassachievements

ThepartnershipbetweenPTHindoli
andthesmallholderfarmersis
recognizedforitssuccessatdistrict,
provincialandnationallevels.

Platinum Indonesian CSR Awards 2011

given to PT Hindoli in Nov 2011

Hindoli Cooperative received recognition from the

President, Megawati in 2002

Platinum Musi Banyuasin CSR Awards

2012 given to PT Hindoli in October 2012

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An Overview of PT Hindoli

PTHindoli Smallholdersrelentlesspursuitof
worldclassachievements

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An Overview of PT Hindoli

1/31/2013

Insummary
Waystomotivatesmallholderstosustainability:
Helpfamiliescreatealongtermbusinessinoilpalmproductionwhichcanbe
passeddownfromonegenerationtothenext.
FosteranongoingandenrichingpartnershipwiththeCargillownedcompany.
BuildaglobalreputationinsustainablyproducedpalmoilforIndonesiaandits
smallholders.
Beatrulyviablemeansoffulfillingtheworldsincreaseddemandforsustainably
producedvegetableoils.

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An Overview of PT Hindoli

PTHindoli Smallholders

AnthonyYeow
PresidentDirector,PTHindoli CargillTropicalPalm
30th January2013

Certificate No. ID08/1122

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Certificate No. GB08/75238

Certificate No. SPO537874

An Overview of PT Hindoli