Sustainability

We have been dedicated to conservation, human rights, and economic development for more than 50 years. These high standards apply to all our companies including palm oil, timber and wind tower production. We are always exploring new ways in which we can advance our environmental and social contribution standards to uphold our commitment to accountability that guides us today.

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ESG Charter

KORINDO ESG Charter of Commitments

Through this document, we highlight Korindo’s commitments to ‘Sustainable Development’, the protection of human rights and good corporate governance.

Scope:

This Charter applies to all of Korindo’s current and future holdings, subsidiary companies, joint ventures, companies over which we have management control, and third-party suppliers. To work with us, all third-party suppliers must agree that they will abide by this Charter. The new Korindo ESG Progress monitoring report is open to the public and includes up-to-date information.

Implementation, enforcement, monitoring and reporting procedures in cooperation with third-party verifiers will ensure compliance for all aspects of the policy and commitments.

Environmental Responsibility

We commit ourselves to protecting the environment by working towards ‘Sustainable Development’.

For the purposes of this document, we understand the term ‘Sustainable Development’ (SD) as defined by the Brundtland Commission Report published in 1987.

“Sustainable development (SD) is the kind of development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

To achieve ‘Sustainable Development’, we will:

    • Minimize Greenhouse Gas emissions, especially carbon dioxide (CO2).
    • Cease development on High Conservation Value (HCV) or High Carbon Stock (HCS) areas. All natural forest clearance has been suspended since February 2017.
    • Strengthen conservation measures, especially those related to forests and their biodiversity. These measures are not limited to combat threats caused by humans but also threats posed by wildfire.
    • Continue with our belief and practice of not developing peatlands under any circumstances.
    • Continue with our zero-burning policy. Korindo has never used and will never use fire to clear land in any of its operations.

These commitments reinforce, and by no means hinder, Korindo’s pledge to the development of land assigned by the Indonesian Government for the purposes of producing timber, plywood and palm oil.

Social Contribution

We are committed to the development of Indonesia and its people. In that sense, our actions are not limited to just following the law but also to creating a meaningful impact in the communities that we work with.

To further achieve this goal, we will:

    • Continue to provide health resources for people in the communities.
    • Keep supporting education facilities.
    • Continue creating business opportunities within the communities to help reduce poverty.
    • Maintain and enhance our efforts to support communities fight climate change and global warming.
    • Improve our procedures with regards to respecting the customary and cultural land rights of communities.
    • Establish and practice the Free, Prior and Informed Consent (FPIC) principle and process.
    • Improve our conflict resolution frameworks as well as better communicate these to stakeholders and community members.
    • Establish participatory mapping prior to any new development to determine stakeholder boundaries and land uses.
    • Develop plasma plantations for the community according to regulations set by the government of Indonesia.
    • Actively create new programs to help improve the lives of people in the communities.

Labour Rights

We conduct our business in a manner that respects and guarantees human rights. Labor rights are not an exception.

Consequently, we will:

    • Ensure that the rights of all people working in any operation in our supply chain are respected according to local, national, and international laws. This includes international standards like eight fundamental International Labour Organization Conventions.
    • Ensure that the people employed in our operations understand their rights and work responsibilities.
    • Establish fair working conditions, not only in terms of wages but also in terms of security inside the workplace.
    • Guarantee fair and equal employment opportunities for all employees regardless of race, nationality, religion, linguistic background, or gender.

Stakeholder Engagement

We commit to resolving complaints and conflicts through an open, transparent and effective process. We seek to engage and collaborate with the local, regional and national governments, certification bodies, regional projects, and NGOs to help better manage our operations.

Consequently, we will:

    • Work with key stakeholders and independent verification bodies to implement sustainable growth and promote industry transformation.
    • Maintain a monitoring and assessment program to communicate information, progress toward policy compliance, complaints resolution, and supplier engagement and verification.
    • Publish progress reports on implementation of sustainable growth.
    • Resolve grievances promptly, responsibly, responsively, and proactively.

For a more detailed explanation of the ESG Charter or ESG programs, please contact Korindo’s PR Team at pr@korindo.co.id

Dashboard

(Last Updated: October 2021)

Conservation

Forestry

Kalimantan: 16,375 ha
Papua: 99,750 ha
Kalimantan: 199,265 ha
Papua: 314,600 ha

Palm Oil

1 Company
1 Company

For more details, check this page

Plywood

Governance

Good management is foundational to a company’s sustainability and to support that, Korindo Group through the Environment, Social, and Governance (ESG) Division has made a policy and management system starting from the central level to technical implementation level in all of the Group’s operational activities.

We have also adopted the principles of Corporate Social Contribution and embedded them into our business management processes. Corporate policies and a commitment to continuous improvement underpin our sustainability goals. Through our group’s sustainability, we defined our own vision and direction to manage our impacts and opportunities with increasing efficiency.

Above all, KORINDO Group is committed to continuous improvement as the means to achieve our vision.

KORINDO is committed to following a strict Code of Conduct:

  1. Support and respect the protection of human rights.
  2. Ensure that we are not complicit in human rights abuse.
  3. Uphold the freedom of association and of the right to collective bargaining.
  4. Eliminate all forms of forced and compulsory labor, child labor, and discrimination in respect of employment and occupation.
  5. Support a precautionary approach to environmental challenges.
  6. Participate in initiatives to promote greater environmental responsibility.
  7. Encourage the development and diffusion of environmentally friendly technologies.
  8. Realizing the spirit of building the company’s “good governance” in an ethical/fair manner, committing, and taking a proactive role in corruption prevention and eradication.

Korindo is committed to sustainable palm oil and timber production and sourcing. We have dedicated ourselves to the conservation of nature, the absolute and unconditional respect of human rights, and to sustainable economic development for 50 years in Indonesia. We are always exploring new ways in which we can advance our environmental and social responsibility standards to uphold our commitments.

We are committed to implementing practical solutions that will be beneficial to the environment and to the communities in which we live and work. These solutions will require innovation, dedication, determination, and creativity.

ESG 2020

Preamble

As part of Korindo Group’s sustainability policy, the Environmental, Social and Governance (ESG) Division developed a Grievance Mechanism for stakeholders called ESG 2020. Grievance is an allegation of a violation or problem raised by individuals or groups who want Korindo to seek and find solutions to a problem. In the initial stage, we will apply the procedure to the Korindo's Palm Oil companies located in Papua by June 2021 and then expand it to other business areas after evaluation.

Submission

Grievance Submission Procedure: Please click here to fill out the form then submit it via one of the options below.

Phone

021 797 5959 Ext 352

Mail

• Wisma Korindo 13th Floor

MT Haryono Kav 62, Pancoran, Jakarta Selatan, Indonesia 12780

Attention: Divisi Environment, Social and Governance (ESG)

• Korindo Operational Office in the Regional Area

Email

esg@korindo.co.id

Procedure

Grievance List

As the management of PT. Tunas Sawa Erma, PT. Berkat Cipta Abadi and PT. Dongin Prabhawa is separated into the TSE Group, the existing cases of these three companies have been transferred to https://tsegroup.co.id/sustainability/grievance/

Environment

As a developer and harvester of local resources and consistent with KORINDO Group’s values, we understand our responsibility to operate these businesses with the highest level of integrity. As such, our resources division operates under the following principles:

  • Only utilizing land that has been zoned for development by the Indonesian government to produce timber, plywood, or palm oil.
  • Continuing a zero burning policy and not utilizing burning to clear land in all of the company’s operations.
  • Operating our palm oil division consistent with the guidelines of the Roundtable on Sustainable Palm Oil (RSPO).
  • Offering only Indonesia Sustainable Palm Oil (ISPO) certified palm oil endorsed by the Indonesian Ministry of Agriculture.
  • Committing to not develop on peatland regardless of depth.
  • Conducting ongoing dialogue with companies throughout the palm oil supply chain, local communities, and non-governmental organizations.

In accordance with Korindo’s aim to develop productive multi-purpose timber plantations, improve people’s livelihood, and ensure effective plantation management, we support sustainable timber production through PHPL. At the moment, Korindo is managing four natural forest management concessions of 524,515 ha located in Kalimantan and Papua, and a timber plantation concession of 16,475 ha in Kalimantan in compliance with PHPL.

In regard to the timber plantation, we have completed tree planting in the designated area and there are no further plans for development in the undeveloped area.

With this, KORINDO commits to fulfilling its role to work on sustainable forest management. Our sustainable timber production process is based on three core ideas: production of lasting and balanced profit (Profit), environmental sustainability (Planet), and social welfare (People). We commit to continuous improvement and transparency in the activities of sustainable forest management:

  • All of the operational activities that will be held by Korindo have been through an analysis study on environmental and social impacts (AMDAL) including the making of management plan and environmental monitoring (RKL-RPL).
  • Implementing Reduce impact logging (RIL) in forest management, which is a systematic approach to planning, implementing, monitoring, and evaluating wood harvest. This is a refinement practice of road construction, logging, and skidding. We adhere to the standard of road construction by paying attention to the contour and drainage which minimizes the erosion.
  • Supporting the government’s program for the development of low emissions and the reduction of greenhouse gas through peatland management.
  • Implementing an integrated fire management strategy in the form of prevention, preparation, early detection, and fast response.
  • Implementing integrated pest management, forest enroachment control, wild grazing, and illegal logging.
  • Establishing, maintaining, and securing 41,012 ha of protected areas that are effective and proportional.
  • Management and monitoring of endemic species or endangered flora and fauna, including no hunting of those species in order to maintain biodiversity.

Forestry Certification and Standards:

  • We commit to achieving internationally recognized third-party standards and certifications for our assets.
  • For forestry assets, we commit to maintaining our forest management certification with the Forest Stewardship Council® (FSC®) for all eligible assets.
  • In cases where an asset is not eligible for FSC® certification, an alternate standard will be selected such as the Indonesian Timber Legality Verification System (Sistem Verifikasi Legalitas Kayu, SVLK) or Sustainable Production Forest Management (Pengelolaan Hutan Produksi Lestari, PHPL).

KORINDO’s commitment to responsible timber production by complying with policies of no peat, no exploitation, no burning, and no deforestation are already in effect. Monitoring on deforestation is done using satellite imagery updated monthly. In addition to that, we have performed ± 629.000 hectares of monitoring for timber plantation deforestation and hotspots. Reports on timber plantation deforestation and hotspot monitoring will be regularly updated and can be seen here.

We will monitor the implementation process and constantly improve operations related to timber plantation and production.

KORINDO will adjust and follow policies in ways that are consistent with Indonesian government’s regulations to protect forests, peat lands, local communities, and human rights as well as appropriate global standards.

Korindo Timber Sourcing Policy

Korindo Group is committed to the responsible sourcing of timber. Our long term objective is that all timber used in production that we purchase is sourced from sustainably managed forests that have been certified to credible certification standards and/or from post-consumer recycled materials.

This commitment will be realized through a stepwise approach to responsible timber sourcing that uses the best available techniques and information.

Towards these ends, Korindo Group hereby establishes the following policy commitments:

  1. We endorse the Timber Legality Assurance System of Indonesia (SVLK) as the primary standard for sustainable timber sourcing. We will ensure to comply with Forest Stewardship Council (FSC)’s timber sourcing code.
  2. We will reduce and eliminate its purchase of timber from the conversion of natural forest to other land uses by September 30, 2020, unless the conversion is justified on grounds of net social and environmental gain in the surrounding landscape.
  3. We will progressively increase the trade in FSC certified and controlled material.
  4. We will work towards FSC FM certification for our natural forest concessions or FSC CW certification for timber plantations in Indonesia by December 31 2023.
  5. We will not purchase timber from controversial sources, including illegally harvested wood, destruction of high conservation values, entities accused of human, civil and traditional rights violations and genetically modified trees.
  6. We will follow the Core Conventions of the International Labour Organization as defined in the 1998 “Declaration on Fundamental Principles and Rights at Work”.
  7. We will work with all vendors and associated suppliers to trace the origin of our current products.
  8. We will require that all vendors and associated suppliers demonstrate compliance with all legal requirements for forest management, timber harvesting and related trade.
  9. We will communicate with stakeholders for open and constructive dialogue to help us continuously improve our business and our performance in regard to responsible forest trade.

The palm oil industry has the potential to generate significant economic and social development in Indonesia. Palm oil is one of Indonesia’s most successful agricultural products and largest agricultural exports. It also provides a means of income and economic development to many of Indonesia’s rural poor. The Indonesian palm oil industry is expected to continue its rapid growth in the medium-term. However, with this opportunity comes the responsibility to address the known environmental, social, and economic challenges and risks associated with this supply chain.

As of 2018, we have planted a total of 9,149 ha of palm oil plantation out of 29,106 ha of ‘Right to Cultivate (HGU)’ permit including infrastructure for  camp (33 ha) and road (840 ha). In particular, we have not obtained any license or planted oil palms on peatland, including plasma plantation. We commit to sustainable palm oil production, which includes reduction of greenhouse gases, improvement of livelihoods and food security.

We promise to offer sustainable palm oil products in support of our customer demands and will monitor the implementation process and constantly improve operations related to palm oil plantation and production. Our commitments to the responsible palm oil production by complying with policies of no peat, no exploitation, no burning and no deforestation are already in effect.

We endorse the Indonesian Sustainable Palm Oil (ISPO) as the primary sustainability standard for palm oil products and support the efforts of the ISPO to develop mechanisms to distinguish sustainable palm oil products. We also supported the establishment of plasma cooperatives to develop oil palm plantations of indigenous people as one of the core ISPO programs. As of 2018, the development of plasma plantation have not yet begun because of deforestation issues in Papua. Therefore, we are trying to reach consensus through consultation with various stakeholders in order to develop plasma plantations in accordance with sustainable development method.

All of our palm plantations have conducted Environmental Impact Assessment (AMDAL) based on Indonesian government regulations and will apply the same principles to all future developments. In addition, the Environmental Management Plan and Environmental Monitoring Plan (RKL/RPL) reports are prepared for each subsidiary in accordance with AMDAL regulations and are regularly submitted to relevant government agencies. The report includes contributions to water quality, air quality, soil erosion, biodiversity management and local community, and those contents are clearly stated and managed by a professional staff.

Water remains as an essential element for the environment protection and oil palm productions. In order to ensure the sustainability of this important resource, we protect rivers by designating buffer zones around the river. We also carry out various initiatives that aim to ensure optimal water conditions, thereby creating an ideal environment for oil palm cultivation. The objective of our water system management is to prevent flood, to minimize erosion and to secure the water supply for our plantation areas during the dry season. The implementation of our water management systems has been designed with careful consideration and comprehensive hydrology, agronomy, and topography studies, as well as environmental and social impacts. The effectiveness and impact of the water management system, including its construction phase, have been carefully analyzed and evaluated.

We are aware that protecting water quality is an important part of our lives and the protection of the environment. Therefore, we make extraordinary efforts to protect water quality. We strive to manage the quality of water by periodically testing samples and analyzing the results at locations designated by each oil palm plantation. Samples are analyzed and approved by the Indonesian government and we will continue to do so.

In regard to water, we are primarily focused on controlling and mitigating the impacts of chemicals on water quality in natural waterways. We recognize the problems posed by excessive use of other agrochemicals such as pesticides, fungicides and herbicides which may be washed off by the rain into nearby natural waterways. As a part of our commitment to reduce chemical usage in order to mitigate impacts on the environment, non-chemical pest control measures are preferred at all our palm oil plantations. In particular, through Integrated Pest Management Systems designed to minimize use of chemicals by relying on biological and cultural alternatives.

Integrated pest management is the practice of using a range of strategies to sustainably maintain pest populations within economic thresholds while causing minimal harm to local ecosystems. Encouraging natural predators reduces pesticide application, we managed to reduce our use of chemical pesticides. Oil palm pests include rats, rhinoceros beetles, bunch moths, bagworms, and nettle caterpillars.

We commit to continuous improvement and transparency in management and monitoring of endangered, endemics, and protected flora and fauna in order to maintain the biodiversity. Wild animal hunting is only allowed if it is done by the local community and in a limited manner to fulfill the needs for food or traditional ceremony. Other than that, wild animal hunting is not allowed and the notice is shown on a signboard.

As stakeholders and international community show an increasing concern towards climate change, we are responding accordingly. We are making consistent efforts to reduce greenhouse gas emissions by introducing renewable energy. In the future, we plan to analyze greenhouse gas emission level by using ISPO Calculator Methodology for our oil palm plantation to build systematic greenhouse gas management.

We have been monitoring deforestation (including in High Conservation Value/HCV and plasma areas) using Global Land Analysis and Discovery (GLAD) deforestation alert and fire using Visible Infrared Imaging Radiometer Suite (VIIRS) fire alert since 2019. Both alerts can be accessed via https://www.globalforestwatch.org/. We have conducted deforestation and forest fires monitoring in the palm oil and plasma areas of ± 35,000 ha. Korindo’s Oil Palm plantation area Fire monitoring reports can be seen here and will be updated continuously.

KORINDO only develops lands that have been zoned for development by the Indonesian government. Additionally, since enforcing the moratorium policy in February 2017, we have not developed any land in High Conservation Value (HCV) or High Carbon Stock (HCS) areas.

As part of our commitment to operating sustainably and not developing on High Conservation Value area, KORINDO recently undertook HCV (High Conservation Value) and HCS (High Carbon Stock) self-assessments across its oil palm concessions. The field assessment was carried out over a period of time by an independent third-party assessor who are approved by the relevant international organizations.

We are currently reviewing the quality of our self-assessment results which will then be reviewed by relevant international organizations such as the HCV Resource Network (http://www.hcvnetwork.org) and the High Carbon Stock Approach (http://highcarbonstock.org). Since 2016, KORINDO has collaborated with BIOREF of the Faculty of Forestry IPB University to conduct assessment and identification of HCV and HCS of PT Papua Agro Lestari and PT Gelora Mandiri Membangun. The submission to the HCVRN was done in 2017 and generated ‘Cancelled’ results (PT PAL and PT GMM).

PT PAL (Cancelled)

PT GMM (Cancelled)

Meanwhile, the HCS submission on the HCS Approach was done on March 17, 2017 with PT PAL being the only successful published company on the HCS Approach website.

In September 2020, KORINDO conducted an HCV and HCS reassessment in collaboration with Ata Marie. For PT GMM’s Assessment, field assessment began in November-December 2021. The draft report prepared by Ata Marie is almost complete and will soon be registered for the Integrated HCV/HCS assessment on the Assessor Licensing Scheme (ALS). Meanwhile, PT PAL’s assessment began in early June 2021 and is expected to last until August 2021.

In the process of developing palm oil plantation, KORINDO Group has been actively following the provisions of the Indonesian Government such as the Zero Burning policy and the moratorium on peatland to create a healthy and balanced ecosystem.

Some of the concrete steps that have been made include: carry on mechanical land clearance and without burning, have reliable firefighters to monitor and prevent forest fires so it will bring a sense of security and comfort in the surrounding area of the palm oil plantations.

Fire Rescue Team

Palm Oil Plantation &
Processing Mechanism

Furthermore, KORINDO Group also cooperates with the local relevant technical agencies to carry on joint monitoring and evaluation to ensure there is no land burning. Please see the fire fighting simulation video that we conduct every year.

Certification Product
Timber Legality Information System (SVLK)

Timber Legality Assurance System (SVLK) is a tracking system whose development was made by involving multi-stakeholders to ensure the legality of sources from which timber being traded in Indonesia originates. SVLK is also meant to encourage the implementation of the existing government’s regulations related to trade.

Timber Legality Assurance System (SVLK) serves to ensure the origins and management of timber products and raw materials obtained or derived from sources meet the legal requirements. Timber is considered legal when its origin, logging permit, logging systems and procedures, transport, processing, and trade can be proven to meet all applicable legal requirements.

 Timber, Plywood, Wood Products
Sustainable Production Forest Management (PHPL)

In June 2009, the Minister of Forestry of Indonesia issued Ministerial Regulation No. P.38/2009 on Standards and Guidelines for Evaluating the Sustainability Performance of Production Forest Management (PHPL) and Timber Legality Verification. This regulation obliged timber utilization permit holders and timber industries to implement sustainable forest management and timber legality standards.

Our entire forest area (100%) is PHPL certified.

 Timber
Forest Law Enforcement, Governance and Trade (FLEGT)

FLEGT stands for Forest Law Enforcement, Governance and Trade. The EU published the EU FLEGT Action Plan in 2003. The Action Plan aims to reduce illegal logging by strengthening the sustainability and legality of forest management, improving forest governance and promoting trade in legally produced timber. FLEGT takes a multidimensional, coherent approach to overcoming the complex drivers and enablers of illegal logging.

Indonesia was one of the first countries to start negotiating FLEGT with the EU. It was the first Asian country to implement FLEGT with EU.

 Plywood
Forest Stewardship Council®

FSC® is an international, non-governmental organization dedicated to promoting responsible management of the world’s forests. FSC® certifies forests all over the world to ensure they meet the highest environmental and social standards.

 Timber, Plywood, Wood products
Indonesian Sustainable Palm Oil

The Indonesian Sustainable Palm Oil (ISPO) Foundation is a national non-profit organization aiming to improve the sustainability and competitiveness of the Indonesian palm oil industry and contribute to the Indonesian government’s objectives to reduce greenhouse gas emissions and draw attention to environmental issues.

 Palm Oil

Labor

KORINDO has been dedicated to conservation, human rights, and economic development for more than 40 years. These high standards apply to all our companies including palm oil, forestry, timber, and wind tower production. We are always exploring new ways in which we can advance our environmental and social responsibility standards to uphold our commitment to accountability that guides us today. Each palm oil company of KORINDO has stated its sustainability policy, in compliance with the FPIC principles, to improve the quality of life for indigenous people as follows.

Protecting Human Rights and Respecting Local Culture
  • We prohibit illegal, abusive, forced or child labor within our operations anywhere in our plantations and mills.
  • We commit to the protection and respect of human rights (the rights of all workers, including contractual, temporary, and migrant workers), the elimination of discrimination in employment and the promotion of equal rights, and lastly the freedom of association and the right to collectively bargain.
  • We respect the rights of indigenous and local communities to give or withhold their Free, Prior and Informed Consent (FPIC) to the utilization of lands to which they hold legal, communal, or customary rights.
  • We are strongly against the use of forced labor, and will work with parties to resolve complaints and conflicts based on Indonesian government regulations.
Contribution to Local Community and Local Economy
  • We commit to develop a regulated Plasma Palm Oil Plantation to contribute to economic growth of the local community
  • We support the integration of our plasma farmers into the sustainable supply chain.
  • We commit to contribute to the local economic development through Corporate Social Contribution activities and programs, which include infrastructure, healthcare, education, and other suitable social empowerment programs that can help boost the welfare and livelihood of local communities.

We always ensure that our employees have the freedom to form an independent labor union in the company. This is proven by the existence of an independent labor union in KORINDO Group.

We also appreciate the contribution from our employees who continue to grow together with the company. For their dedications, KORINDO Group has promoted 65% of all employees to be permanent employees in 2021. The advancement of women is also part of our concern. So far in 2021, 10% of our employees are women we support to reach their best potential. We are always committed to provide wages in accordance with the applicable district minimum wage (UMK) to promote the welfare of our employees.

In accordance with operational standards, we also provide training on pesticide use in collaboration with the pesticide commission.

To implement these policies, our palm oil companies have set up a dedicated department of indigenous people support to conduct dialogue and assistance programs for indigenous people. In addition, we have prepared detailed procedures for receiving and processing complaints and requests of indigenous people by integrating the expertise we have accumulated over 20 years of communication with the indigenous population in Papua Province.

Korindo Respect Policy Statement

Korindo Human Rights Policy

Korindo Health Safety and Environmental Policy Statement

Korindo Community Policy

Assistance & grievance procedures
Other procedures

We have mechanism for any conflicts.

CSC

KORINDO Group has been operating in Indonesia for 50 years. During this period, KORINDO Group has made efforts to build sustainable societies in various fields through its Corporate Social Contribution (CSC) programs. This is carried out in accordance with the company’s philosophy to build a harmonious, beneficial, and sustainable relationship with the community and stakeholders for the sake of improvement and prosperity. Our CSC activities focus on strategic, systematic, and sustained programs throughout the five pillars of the main program:

We are aware that the quality of human resource development is one of the keys to success in sustainable development. KORINDO Group provides development assistance in the field of education in the form of funding, learning facilities, and school buses.

Health problems have been one of several concerns for KORINDO Group to address through CSC programs such as free healthcare services and clinics established in each plantation block. To reach secluded citizens and build a healthy lifestyle, KORINDO Group also provides health education through itinerant doctors along with the ambulances and free health services every two weeks. Through these activities, people can receive health checks and immunizations as well as free medicine to boost health and prevent disease.

To improve the economic independence and welfare of society, KORINDO Group provides productive business assistance such as business support for fish, poultry, cattle, and pig farms; rubber and palm oil plantations; and the ownership to units of shop houses and stalls. With productive and direct business assistance, it is expected to increase family income, economic development, and social welfare in a sustainable manner.

KORINDO Group always seeks to preserve the environment. Our concern for the environment has been proven by concrete actions through tree planting and routine environmental cleaning. We always engage and cooperate with various elements of society such as local authorities, military, police, as well as religious and customary leaders, so the entire community can participate in environment conservation.

Infrastructure

Since certain regions may be hard to reach, infrastructure support certainly becomes a major need for people. KORINDO Group actively participates in the development of infrastructure by repairing bridges, constructing sport facilities, and mending roads; as well as by establishing public facilities such as schools, clinics, churches and mosques, markets, shops, sport fields, village halls, the clan chief’s house, etc. This proves the commitment of KORINDO Group management to building a harmonious and prosperous life together with all stakeholders in all locations.

Education

KORINDO has given scholarships for 8,792 students from primary to secondary schools and universities. We have also provided learning and sport tools to 109 preschools and secondary schools, supported the building and operation of 28 schools with 208 teachers in remote areas in Indonesia, and provided 36 school buses.

8792
Scholarships
109
schools
208
Teachers
36
School Buses

Health and

Social Activities

We have provided health supplements and childrens scales for 4,680 children under five years old in 72 child medical centers. We also built 19 clinics and 1 polyclinic, provided 1,000 medicine packages for flood victims in Jakarta, supported the building of the Dharmais Hospital National Cancer Center in Jakarta, and provided 200,000 meal packages for the victims of the Aceh Tsunami, Padang earthquake, and Jakarta floods.

4680
Children
19
Clinics
1000
Medicine
200000
Meal

Environment

We have supported the building of an agricultural research center and nursery center for 100,000 original Indonesian trees in Bogor; planted 221,600 productive trees in Bogor (West Java), Wonogiri (Central Java), Boven Digoel (Papua), and Timor Leste; provided 200 waste sorting bins for schools in Pancoran, Jakarta; and provided lessons on environmental conservation to 2,660 people living around river banks and villages. We also removed 12 tons of garbage from rivers and cleaned the surrounding areas.

100000
Indonesian Trees
221600
Productive Trees
200
Garbage Bins
12
Garbage from Rivers

Infrastructure

We have built and maintained 551 Km road and 80 bridges, supported the construction of 66 religious buildings (mosques, churches, etc.), provided 8 MW of electricity to local people, and provided clean water to 13,350 people.

551
Road
80
Bridges
66
Religious Buildings
8
Electricity
13350
Clean Water to people

Job Creation and

Economic Impact

There have been 12,300 direct employments and 21,000 consequential jobs, increasing employment of the local indigenous people up to 31%. We have contributed up to 40% of the GDP of Boven Digoel Regency and Merauke Regency in Papua. We also supported 450 entrepreneurs in Central Kalimantan, Papua, Bogor, and Jakarta.

12300
Employment
21000
Consequential Jobs
40
GDP of Boven Digoel & Merauke
450
Supported Entrepreneurs

Income Generation

Activities

We have developed and supported the operation of a 350 ha rubber plantation for the local community. We have also built and supported the operation of breeding farms with capacities of 7,000 chickens, 100 cows, 50 pigs and 10,000 fish. We have built and supported the operation of a greenhouse for urban farming for the local community with a capacity of 2,000 organic vegetables per week. Lastly, we have supported 300 farmer’s families in fruit farming in Wonogiri, Central Java.

350
Rubber Plantation
17150
Livestock Animals
2000
Organic Vegetables / week
300
Farmer Families

Awards & Collaboration

Institution Activities
Boven Digoel Multi Stakeholder Forum (USAID LESTARI)

USAID LESTARI supports the government of Indonesia to reduce greenhouse gas (GHG) emissions and conserve biodiversity in carbon rich and biologically significant forest and mangrove ecosystems. USAID LESTARI activities are targeted in six strategic landscapes across Aceh, Central Kalimantan, and Papua. Multi-stakeholder forum was established in Boven Digoel, Papua in 2016.

 Sustainable Development in Landscape Level
Global Agribusiness Alliance

The Global Agribusiness Alliance (GAA) is an international, CEO-led, private sector alliance committed to harnessing the collective strengths of the global agribusiness sector to tackle environmental, social, and sustainability challenges to improve the resilience of farmers across the world. Particularly, GAA wants to help achieve UN Sustainable Development Goal 2: “End hunger, achieve food security and improved nutrition, and promote sustainable agriculture.”

 Sustainable Development in Agriculture
Korea Overseas International Cooperation Agency’s “Medical Service Improvement for the Local Communities in Indonesia“ Project

The first general hospital in Asiki, Papua province was established by the cooperation between Korea Overseas International Cooperation Agency and KORINDO. Papua is the region with the poorest regional health indicators such as infant mortality rate, AIDS and HIV prevalence, maternal and child health, and various diseases. The hospital’s establishment is expected to play a major part in the improvement of these indicators. It is anticipated that medical access for local residents can be greatly improved.

 Healthcare
Kampar REDD+ project

It is a joint project between Indonesia and the Korean government to protect peat swamp forest and reduce greenhouse gas emission in Kampar peninsula, Sumatra, Indonesia. KORINDO Group contributed to this project by spearheading research and project development together with research institutions from various sectors.

 Peat Swamp Forest Protection

FAQ

What is KORINDO’s involvement in the palm oil industry?

KORINDO’s palm oil operations were founded in 1998 in Papua province, Indonesia. We operate over 55,000 hectares in Indonesia producing 100,000 tons of palm oil each year and employing over 10,000 people in Indonesia.

What is KORINDO’s policy on developing land for palm oil in Indonesia?

We recently announced a temporary moratorium on new land use. This applies to new land development in our oil palm plantations including our two largest and oldest plantations. KORINDO only develops lands that have been zoned for development by the Indonesian government.  Additionally, we do not develop in High Conservation Value (HCV) or High Carbon Stock (HCS) areas, or in virgin rainforest areas.

What standards does KORINDO follow to develop palm oil, timber, or plywood in Indonesia?

All KORINDO companies are committed to operating in a sustainable manner, including our palm oil, plywood, and timber operations.  The company complies with all Indonesian laws and regulations for development, labor, and community relations; a requirement to obtain the necessary planning permissions to use any land in Indonesia for commercial purposes.  KORINDO also follows the industry’s best practices on sustainable development, including that of the Roundtable on Sustainable Palm Oil (RSPO).

What practices does KORINDO use to develop land for palm oil?

KORINDO has a zero-burning policy for all its palm oil, plywood, and timber operation.  The company does not utilize burning to clear land. We do understand that there are illegal palm oil production activities taking place in Indonesia, such as illegal burning, and we stand firmly against those activities.  KORINDO has undertaken steps to help combat issues such as illegal burning, by funding local firefighting operations.  However, it is important to recognize that images can be misconstrued, such as a heat map in which a naturally occurring forest fire may be misinterpreted as illegal burning to clear forest.

How does KORINDO work with local communities on land development planning and rights?

At KORINDO, we respect the rights of indigenous and local communities to give or withhold their Free, Prior and Informed Consent (FPIC) to the utilization of lands to which they hold legal, communal or customary rights.  Before any land is developed and prior to the registration of any palm plantation, KORINDO participates in public hearings with local residents, villages, and other stakeholders.  This is not just a KORINDO practice but is required by Indonesian law.  If these discussions don’t take place, the company does not get its permits.

How does KORINDO support local communities?

KORINDO works closely with the local communities where we operate. We prohibit illegal, abusive, forced, or child labor within our operations anywhere in our plantations and mills. We are committed to respecting the human rights of all our workers, whether they are full time or temporary.  This includes promoting equal rights, the freedom of association, and the right to collectively bargain.

We also work hard to bring additional benefits to the community. KORINDO employs more than 10,000 Indonesian workers, has provided scholarships for over 2,500 students and supported the building of local schools and hiring of teachers. We provide free medical service and treatment to local residents near our developments and have even begun building a local hospital.

What are KORINDO’s policies for development in peatland, High Conservation Value (HCV) or High Carbon Stock (HCS) areas?

KORINDO has not applied for or developed any palm plantation or timber plantation concession in peatland, HCV or HCS areas. Therefore, KORINDO doesn’t have any peatland over our all operation area to date. We work closely with Indonesian government bodies and third-party experts to conduct HCV and HCS studies prior to any development.