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CONTENTS
PROLOGUE
03 About This Report
04 About ANJ Group
Sustainability Performance Highlights 2023
06
(Compared to 2022)
01 OUR SUSTAINABILITY COMMITMENTS 04 PEOPLE
11 Message from Our CEO 122 Our Diverse and Inclusive Workforce
18 Our Values Fair And Responsible Recruitment
125
Practices
20 Our Sustainability Commitment
Empowering Employees’ Growth
22 Our Material Topics 126
and Skills
28 Our Governance Championing Diversity and Women’s
132
35 Stakeholder Engagement Empowerment
Protecting the Rights of Workers and
135
02 PROSPERITY Children
Economic Performance Amid Global Protecting the Health and Safety
45 138
Challenges of Our Workers
Upholding Best Practices in Supply Engaging and Empowering Local
51 150
Chain and Traceability Communities
Upholding Highest Commitments to
58
Customer Excellence
05 APPENDIX
Fostering Community Prosperity and
59 00 Independent Assurance Statement
Well-Being
00 GRI Content Index
03 PLANET
00
Topics in the Applicable GRI Sector
Standards Determined as not Material
Addressing Climate Change: Impacts,
76
Risks and Our Response 00 Cross-Reference to SDGs
Green Metrics on Our Emission and 00 POJK 51 Index
81
Energy Consumption
Notes on Methods and Conversion
Commuting to Sustainable Practices in 00
92 factors
Waste Management
Response to The Previous Year's
Committing to the Safeguarding of 00
98 Report's Feedback
Forest and Biodiversity
00 Feedback Form
Prioritizing Responsible Water
114
Management 00 Abbreviations
ii PT Austindo Nusantara Jaya Tbk.
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Together with our peers in the agribusiness sector, we have had to adapt to an ever-
shifting geopolitical landscape and the undeniable impact of climate change to
sustain a responsible and economically viable business. As a result, our targets and
processes are constantly evolving to remain relevant in this dynamic system. Yet, amid
continuous flux, two things endure – ANJ’s steadfast commitment to its core values
and the resulting trust we have earned with our brand.
Our values are our guiding star, the common denominator to our principles, functions,
and ambitions; and the glue that binds us. This year, we re-emphasized values
training and socialization across our business. While our employees are introduced to
our values during their induction, we acknowledge that commitment and adherence
may diminish over time. Introducing regular value training proved to be successful,
with employees assuming greater ownership of and pride in our values. Some
employees have even taken their dedication to greater heights by engaging with ANJ’s
values champion platform. Here, individuals actively promote adherence and guide
conversation around the importance of our values for our business and people. This
year we brought our values champions together in a two-day retreat, providing them
the opportunity to discuss the core values, and develop means to ensure consistent
and universal appreciation of our values across our business entities.
We work closely with communities, local governments, vendors and contractors
across our operating region; building strong relationships founded on trust is central
to our strategy. We are also accountable to our stakeholders and shareholders, who
are entitled to expect that ANJ will abide by its commitments and achieve the targets
it sets. By exhibiting continued commitment to our values, our people can place trust
in our mission, despite the changes they may observe to our structure, systems and
processes. Knowing that no matter the economic, social or environmental climate,
there will always be a common and steadfast foundation to our work is a comfort that
all our people can rely on, especially when all else seems to be in a state of uncertain
flux. When our people trust ANJ to perform to the highest standard of corporate
governance and responsible development, we receive the necessary support to execute
our mission to the best of our ability. Trust is bidirectional and mutually beneficial.
By safeguarding and championing our values, we can ensure a long and prosperous
future for our business and the people whose lives benefit from its presence.
PT Austindo Nusantara Jaya Tbk. 1
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2 PT Austindo Nusantara Jaya Tbk.
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ABOUT THIS REPORT
This is PT Austindo Nusantara Jaya Tbk’s (ANJ’s) eighth annual Sustainability Report, prepared in
accordance with the GRI Standards for the duration spanning from January 1, 2023, to December
31, 2023. The Sustainability Report includes all the business entities featured in our consolidated
financial statements. (2-2, 2-3)
Table 01. Entities included in the report (POJK51-C.3.D, 2-1,2-2)
Subsidiary Location Type of Business
Holding company, palm oil
PT Austindo Nusantara Jaya Tbk. Jakarta
production
PT Austindo Nusantara Jaya Agri (ANJA) North Sumatra Palm oil production
PT Austindo Nusantara Jaya Agri Siais (ANJAS) North Sumatra Palm oil production
PT Sahabat Mewah dan Makmur (SMM) Bangka Belitung Palm oil production
PT Kayung Agro Lestari (KAL) West Kalimantan Palm oil production
PT Galempa Sejahtera Bersama (GSB) South Sumatra Palm oil production
PT Putera Manunggal Perkasa (PMP) Southwest Papua Palm oil production
PT Permata Putera Mandiri (PPM) Southwest Papua Palm oil production
PT ANJ Agri Papua (ANJAP) Southwest Papua Sago starch production
PT Gading Mas Indonesia Teguh (GMIT) East Java Vegetables
PT Austindo Aufwind New Energy (AANE) Bangka Belitung Renewable energy
There are restatements of the prior years' information in this report due to changes in how
measurement method and assumption are conducted. Restatement and any implications will
be acknowledged in the respective specific disclosure. No significant changes occurred to our
organization, core business, value chain, and other business relationships since our previous report.
(2-4, 2-6)
We adhere to a policy of obtaining independent external assurance for our report to enhance its credibility
and verify compliance with standards. The British Standards Institution (BSI) has been selected to provide
Type 2 Moderate Level Assurance under the 2018 Addendum, utilizing the AA1000 Assurance Standard
(2008) in accordance to our policy regarding appointment and evaluation of independent assurance
companies. BSI is an entirely independent third party selected and approved by our Board of Directors
for its complete impartiality, expertise and professionalism. Additional details regarding the assurance
process and its complete statement report can be found on pages XX - XX. (2-5)
The Global Reporting Initiative (GRI) content index, which specifies each of the GRI Standards used
and lists all disclosures included in the report is presented in the Annex to this report. Please contact
our Corporate Communications Department at anj.corcomm@anj-group.com for any questions
regarding this report. (2-3)
PT Austindo Nusantara Jaya Tbk. 3
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ABOUT ANJ GROUP
PT Austindo Nusantara Jaya Tbk. (ANJ) is an agribusiness Our palm oil business unit, currently representing 98.6% of
company based and fully operates in Indonesia that aspires our revenue, integrates the cultivation and harvesting of fresh
to be globally recognized for its commitment to elevating the fruit bunches (FFB) from our oil palm plantations; processing
lives of people and nature. Founded in April 1993 as PT Austindo CPO, PK and PKO; and selling these products. Our oil palm
Teguh Jaya, the Company adopted its current name in 1998 and supply chain incorporates several external parties, including
became a public company in 2013. Throughout 2023, there were independent farmers and cooperatives, from whom we purchase
no significant changes to the Company led by corporate actions additional palm fruit for processing at our mills. The CPO, PK
such as acquisitions, mergers or the opening/closing of offices and PKO are either sold directly to both domestic and foreign
and operational areas. (2-1, POJK51-C.6) companies for further processing into derivative products or are
sold to agents and distributors. (2-6)
We engage directly and through subsidiaries in the production
and sale of crude palm oil (CPO), palm kernel (PK), palm kernel We pioneered Indonesia’s first commercial-scale natural
oil (PKO) and other food crops such as sago and edamame. Our sago harvesting and processing operation in South Sorong,
renewable energy division operates a unit that utilizes Palm Oil Southwest Papua, through our subsidiary that manages a
Mill Effluent (POME) as its primary resource, converting biogas 40,000-hectare concession. The natural sago is harvested from
into electricity that powers one of our plantations in Bangka land owned by villagers under customary rights, who receive
Belitung and serves the State Electricity Company (PLN) as an payment for every sago log harvested. We process these logs at
Independent Power Producer. Our operations are located in North our sago mill to produce dry sago starch, which is mainly sold to
Sumatra, South Sumatra, Bangka Belitung, West Kalimantan, the domestic food industry but is also available for purchase by
Southwest Papua and East Java. Our head office sits in Jakarta. consumers under our retail brand called Sapapua®. (2-6)
(2-6, POJK51-C.3.d, POJK51-C.4 )
Since 2015, we have been producing fresh and frozen edamame
In 2023, our Company experienced financial growth, with total at our subsidiary in East Java which serves both domestic
assets increasing by 1.9%, or USD 11.5 million from USD 602.6 and export markets. We have a strategic partnership with the
million at the end of 2022 to USD 614.1 million at the end of Asia Food Group, a company based in Taiwan, to export frozen
2023. Concurrently, total liabilities rose by 5.8%, from USD 178.5 edamame to Japan. Aside from edamame, we have started to
million in 2022 to USD 188.7 million. This financial movement develop other vegetables, such as okra and green bean. These
reflects our strategic efforts towards growth, demonstrating a vegetables are cultivated and supplied by local smallholder
balanced approach to managing our assets and liabilities for farmers. Our frozen edamame retail brand is called Edashi®.
long-term stability and expansion. (POJK51-C.3.a) (2-6)
4 PT Austindo Nusantara Jaya Tbk.
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COMPANY NAME (2-1)
PT Austindo Nusantara Jaya Tbk.
Share Ownership As Of 31 December 2023
HEAD OFFICE (POJK51-C.2, 2-1) (POJK51-C.3.c, 2-1)
BTPN Tower, 40th Floor
Jl. Dr. Ide Anak Agung Gde Agung Kav. 5.5-5.6
40.85%
Jakarta 12950
(62-21) 2965 1777
(62-21) 2965 1788
BUSINESS ACTIVITY (POJK51-C.4) PT Austindo Kencana Jaya
Trading, services and operations related to palm oil plantation and
40.85%
processing, as well as trading of palm oil products, sago harvesting
and processing, vegetable production and processing (edamame) and
renewable energy business.
PRODUCTS AND SERVICES (POJK51-C.4) PT Memimpin Dengan Nurani
Crude Palm Oil (CPO), Palm Kernel (PK) and Palm Kernel Oil (PKO),
Sago, Vegetable (Edamame) and Renewable Energy from Palm Oil Mill
8.83%
Effluent (POME).
DATE OF ESTABLISHMENT
April 16, 1993 Public
LEGAL FORM (2-1)
• Publicly listed company, listed on the Indonesia Stock Exchange
(IDX) since 2013 under the stock code ANJT.
• KBLI Code 01262 (Palm Oil) “Green” category under the Indonesian
4.74%
Green Taxonomy Edition 1.0 (2022), as all operating estates have
George Santosa Tahija
obtained ISPO and RSPO certification.
WEBSITE AND SOCIAL MEDIA (POJK51-C.2)
4.74%
www.anj-group.com
link : https://www.anj-group.com/
anjgroup.id
link : https://www.instagram.com/anjgroup.id/
anjgroup.id Sjakon George Tahija
link : https://www.facebook.com/anjgroup.id
PT Austindo Nusantara Jaya Tbk
link : https://id.linkedin.com/company/pt-austindo-nusantara-jaya-tbk
0.00%
ANJ Group
link : https://youtube.com/@anjgroup2879
Yayasan Tahija
PT Austindo Nusantara Jaya Tbk. 5
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2023
86%
SUSTAINABILITY 2023
PERFORMANCE HIGHLIGHTS
(COMPARE TO 2022)
PEOPLE PROSPERITY
Average Training Hours per Employee Plasma & Partnership Cooperatives
RSPO Certification
2023 2022 2023 2022
4.9 86 %
6.7 75%
hours
Number of
Employee Fatality
2023
0
Case 2022 0
OUR SUSTAINABILITY
COMMITMENTS
Sustainalytics
ESG Rating
2023
15.4%
(Low Risk) 2022 18.3%
SPOTT
2023
93.3%
2022 91.1%
CDP CDP Climate CDP
Forest Change Water
A- B B 2023
A- A- B 2022
6 PT Austindo Nusantara Jaya Tbk.
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PLANET
Net GHG Emission Intensity for Palm Oil Water Intensity
2023 2023
0.66 0.971
(Ton CO2eq/Ton CPO) (M3/Ton FFB)
2022 2022
0.77 1.088
Percentage Renewable Energy to
Total Energy (%)
2023
43%
2022
38%
PT Austindo Nusantara Jaya Tbk. 7
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OUR
SUSTAINABILITY
COMMITMENTS
8 PT Austindo Nusantara Jaya Tbk.
Page 11
Message from Our CEO 11
Our Values 18
Our Sustainability Commitment 20
Our Material Topics 22
Our Governance 28
Stakeholder Engagement 35
PT Austindo Nusantara Jaya Tbk. 9
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Our Sustainability Commitments Prosperity Planet People Appendix
Lucas Kurniawan
President Director
10 PT Austindo Nusantara Jaya Tbk.
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2023 Sustainability Report
Message from
OUR CEO
Dear Stakeholders,
With the thought-provoking sentiments of COP28 It is with this statement that I must raise the importance of
reverberating in both the political sphere and our sustainability model – one that encompasses People
sustainability landscape at large, I am pleased to present (Human wellbeing), Planet (Stewardship of natural
ANJ’s commitment to and investment in climate action, resources and management of the environment) and
as well as the other fundamental facets of responsible Prosperity (Long-term economic viability). Responsible
development, in this Sustainability Report for the 2023 development is at the core of ANJ’s mission and we cannot
reporting period. Through this report, ANJ details feasibly operate without paying the highest respect to
its approach to developing a productive and efficient the communities and environment within our operating
agribusiness while consciously operating within the regions. Supporting each of the three pillars through our
Planetary Boundaries and supporting Just Transition. responsible development initiatives requires significant
To us, sustainable development means going beyond capital investment, but each year we are reminded that
mitigating climate risk and pursuing our journey to Net our hard work pays off and a sustainable business model
Zero. ANJ designs its strategies to maintain the equitable is both profitable and successful long-term. The support
integration of three indivisible pillars of sustainability: we have received from our people, communities, local
People, Planet and Prosperity. I believe that this report and national governments and other actors within our
presents a transparent review of ANJ’s sustainability industry, as well as the significant progress the Company
journey and contributing activities. We also highlight has made toward its emissions reduction targets,
progress towards targets, notable achievements and demonstrates that operating on a basis that generates
challenges and how ANJ has adapted its policies, benefits beyond the scope of our production quota is a
projects and ambitions in consideration of this year’s holistically advantageous strategy. I am also glad to
El Niño conditions and prevailing social and political highlight that in 2023 we did not receive any complaints
climate. from communities which were not resolved within the
statutory 14 days as per the timeframe stipulated in
While I am relieved to see the catastrophic impacts our Grievance Mechanism and the related Standard
of the COVID-19 pandemic waning and the gradual Operating Procedures (SOP), nor was the Company the
resumption of ‘normal’ trade conditions, new challenges subject of unsubstantiated negative press. As a company
have continued to arise throughout 2023. Of particular that operates across a vast operating region, working
importance is the ongoing El Niño, which has already with diverse and unique communities, I believe that this
caused extremes of weather across our operating region. is a sentiment to ANJ’s inclusive approach to project
Unfortunately, we can only anticipate more erratic, development that emphasizes community engagement
frequent and severe periods of El Niño and La Niña in and autonomy. (POJK51-D.1.a)
addition to the projected intensification of extreme
weather events. The past few years have demonstrated As 2023 drew to a close, ANJ’s governance model,
the importance of reinforcing our systems to be prepared tailored to our expansive region, celebrated significant
for uncertainty. Our business model is not just devoted to achievements when our subsidiaries, SMM and ANJA,
increasing production and yields through the expansion secured the Gold PROPER award for outstanding
of our operations. Instead, we are acutely aware of the environmental management and social innovation,
fundamental need to engineer mechanisms that are marking their fourth and third consecutive wins.
adaptable and resilient in changing climates, because Additionally, ANJAS and KAL attained the Green
without securing this foundation, our business will not PROPER award for a second time. Beyond environmental
withstand what lies ahead. efforts, ANJ’s sustainability commitment encompasses
PT Austindo Nusantara Jaya Tbk. 11
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Our Sustainability Commitments Prosperity Planet People Appendix
innovative programs targeting job creation, poverty Corporate Social Responsibility and transparency,
alleviation, gender equality and fostering a sustainable and adheres to No Deforestation, No Peat and No
food system. This year marks the completion of our Exploitation (NDPE) guidelines. In October we published
plasma certification project in Belitung, meaning that our standalone Biodiversity Strategy, a public document
86% of plasma and smallholder partnerships we work which elaborates on our commitment to enhance and
with are now RSPO/ISPO certified. This puts us ahead of protect biodiversity. The United Nations Sustainable
the plan for 2023, and well on track to meet our target of Development Goals (UN SDGs) remained integral to
100% certified in 2025. ANJ also went to additional lengths ANJ’s mission. The Company was recognized by the
to ensure that all certified cooperatives in Southwest United Nations for its commitment to the SDGs when it
Papua are Identity Preserved, which guarantees was selected for the UN Global Compact Faster Forward
complete traceability through the absence of uncertified initiative. The initiative supports companies in their
external FFB. The consistent attainment of Gold PROPER achievement of one of the SDG’s. ANJ chose to focus
since 2020 reflects ANJ’s dedication to maintaining high on achieving Net Zero by 2030, a target towards which I
environmental standards and sustainable community believe we made good progress in 2023. (POJK51-D.1.a)
development initiatives, setting a benchmark for others
in the industry. The ongoing improvement in sustainability Annually, we scrutinize the previous year’s key priorities
ratings reaffirms our responsible development agenda. I to gauge their ongoing relevance. Following an internal
proudly present this report on behalf of ANJ and eagerly review this year, both the Board of Directors (BOD) and
anticipate our continued growth toward becoming a more Board of Commissioners (BOC) affirmed the continued
environmentally, socially and economically conscious relevance of our material topics. Our strategic goals are
agribusiness company. (POJK51-D.1.b) time-bound and subject to annual review, with outcomes
detailed in our annual sustainability report. Notably,
GHG emissions and carbon footprint remain our primary
Strategies (POJK51-D.1.c) concerns, followed by forest and biodiversity protection,
and upholding good corporate governance practices and
The relative market stability experienced in 2023 was traceability within the supply chain. Setting ambitious
a welcomed change that supported the Company’s targets, such as achieving Net Zero Emissions by 2030
increased investment in strengthening internal and increasing renewable energy usage to over 60%,
processes. The past few years of challenging conditions underscore our sustainability agenda. We also aim to
have allowed ANJ to value periods of relative calm but reduce GHG intensity by 30% and fossil fuel dependence
have also highlighted the need to seize stability and use by 20% by 2030 and 2025, respectively, measured against
it to ensure we are prepared for future uncertainty. our 2015 baseline.
This year, we critically reviewed existing strategies, Our employees remain the cornerstone of ANJ’s success
programs and initiatives during the annual strategic and growth. Their well-being, rights, safety and health
session and identified critical areas of weakness and at work are fundamental to our operations. Prioritizing
opportunities for improvement. Unfortunately, several safety leadership and risk mitigation strategies
events this year reflected concerning adherence to ANJ’s underscores our commitment to preserving lives and
values. Therefore, management made the conscientious welfare across our workforce and local communities. We
decision to reinforce ANJ’s core values across our persist in emphasizing safety awareness, compliance,
operating regions through improved values training, and training to minimize workplace risks for both
running the values champions retreat and introducing employees and contractors.
training courses with a specific value focus where we
observed issues. (POJK51-D.1.a)
ESG Journey
In September 2023, we were also honoured to have
our Legal Director invited by the United Nations Global I am incredibly proud of ANJ’s progress in its ESG
Compact to take part in the ThinkLab on Transformational journey. In 2023, the Company solidified its position as
Governance, a global initiative that aims to define an industry leader in sustainable development, receiving
thinking, curate best practices and develop knowledge, notable recognition for its outstanding ESG performance.
guidance and tools that empower business sector action We observed further improvements to our SPOTT score,
on transformational governance. which increased from 91.1% in 2022 to 93.3% in 2023,
placing ANJ in fifth place in the global rankings and
We continue to uphold our strict adherence to our first position for the Indonesian companies assessed by
Sustainability Policy, serving as the foundation for SPOTT. While it is a wonderful indicator of success, ANJ
reducing social and environmental risks. Aligned with maintains that any claims of progress must be actualized
the RSPO guiding principles, our policy encompasses and the Company will not engage in superficial initiatives
for the sake of winning awards. (POJK51-D.1.b)
12 PT Austindo Nusantara Jaya Tbk.
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2023 Sustainability Report
With most assessment platforms with which ANJ engages projects and initiatives and ensure that our progress is
awarding the Company the highest possible scores, we maintained. (POJK51-D.1.b)
have shifted our attention towards maintaining our status
and identifying areas wherein we can strengthen our We are also well on our way to achieving all other targets
performance even if it results in marginal gains to our on schedule. Most notably, this year we recorded an
ESG scores. ANJ takes its responsibility as a role model 83.8% decrease in GHG emissions from baseline, which
very seriously, and with more industry actors using our puts the Company on track to achieve the coveted goal
processes as a guide when developing their strategies, of Net Zero by 2030. Contributors to the achievement
our people must adhere to the Company’s core principles of this goal is the electrostatic precipitator at KAL and
and exhibit best practices across its operations. the successful completion of solar panel installation on
the roof of the GMIT factory, in addition to the significant
A core ambition of ANJ’s ESG journey has been to develop positive impact of ANJ’s decision to maintain a large
a culture of appreciation for the values underpinned forest conservation and biodiversity area in Southwest
by ESG. I believe that our constant endeavour to Papua. The solar panels at GMIT resulted in a reduction
transparently engage with several reporting platforms in GHG emissions from the factory of 19% in its first year.
has allowed our people to gain an understanding This year, we increased our renewable energy portfolio to
of what it takes to perform at the highest level in 43%, nearing our target of 60% by 2025. (POJK51-D.1.b)
sustainability practice. Throughout our operations, we
hope to promote authenticity in our activities. Not being Our fire prevention and early warning systems are
driven by awards and accolades supports the genuine nearing overall completion. By December 2023, the
development of projects and initiatives that will provide development team had completed the construction
substantive benefits to people, the environment and of the reservoir, allowing the system to function at full
the economy. I am glad to report that through our ESG capacity. The final element remains the installation of
journey, I have observed a shift in mindset towards ESG pipe protection, to ensure durability, after which we will
at all levels of the Company away from regarding it as a be glad to announce project completion. I am happy to
mere checkbox and towards accepting its holistic worth report that there were no major fire incidents in 2023.
for our development. We acknowledge that the El Niño conditions will test our
fire prevention systems, but both management and our
Our commitment to sustainability performance reporting on-site teams have faith in the robustness and efficacy
has also helped management to make key strategic of the measures which we have invested in over the past
decisions. The integrated approach to reporting, which few years. (POJK51-D.1.c)
we have adopted to streamline the process, provides our
teams with critical insights into areas of strength and Finally, I am pleased to announce that ANJ observed
weakness and has been essential to identifying areas zero working fatalities in 2023, which we owe to our
for improvement. In saying this, reporting is a long and improved operational health and safety programs.
time-consuming process, with not all the assessments Regrettably, however, there were two fatalities among
occurring concurrently or covering comparable topics. our contractors. While contractor safety does not fall
With the recent proliferation of sustainability reporting under ANJ’s responsibility, we feel that these events may
platforms, management is hesitant to make any further reflect a lack of adherence to our policies. Therefore, our
commitments amidst concerns about investing too highly management team has decided to focus on re-training
in reporting against numerous platforms. our staff on Occupational Health and Safety (OHS) and
investing in schemes to improve safety awareness and
As for ANJ’s ESG targets, we made excellent progress in culture amongst our contractors. We have also turned
2023. The Company bases its ESG journey on achieving our attention to the issue of heat stress among our
measurable, time-bound targets. In 2023, several plantation workers. As the climate warms and workers
targets were ahead of schedule, or surpassed the target, are exposed to harsher conditions, we must prioritize
such as 86% RSPO/ISPO certification of plasma and developing systems to ensure adequate hydration and
partnerships in 2023, which puts us well on track to opportunities to seek shade and respite from the heat.
achieve 100% by the target year of 2025; implementing If we fail to address this growing concern, we are at risk
the electronic traceability system, eTIS, in 100% of our of losing productivity in a component of our operations
oil palm operations and those of our suppliers; achieving which cannot feasibly be mechanized, which could
99% traceability by 2025 (achieving 100% in 2023); and potentially result in significant losses for the Company.
reducing water use intensity to below 1 ton for each (POJK51-D.1.b)
ton of FFB. As ANJ is driven by continuous growth, we
hope to utilize the remaining resources allocated to the
achievement of these targets to enhance the respective
PT Austindo Nusantara Jaya Tbk. 13
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Our Sustainability Commitments Prosperity Planet People Appendix
Responsible Development Highlights The overall Most Outstanding RD Project award was
won by Tumpas Lara at SMM, while the Most Valued
At ANJ we have adopted an approach to sustainable Project was the e-TIS system. Warung Mama won the
development, termed responsible development, that Most Valued Building Block Formation Project and Eco-
emphasizes sustained and meaningful benefits to the enzyme won the Best Adopted Building Block Project.
environment, economy and people in our operating Further recognition was given to the PENDAKI program,
regions. We believe that the notion of responsible which won the Best Project that Elevates Corporate
development considers each of the three pillars of Reputation Internationally, and RSPO certification of
sustainable development with equal importance and smallholders as the Best Completed Project. The event
recognizes that within a complex and interdisciplinary was an outstanding success, inspiring winners, runners-
sustainability landscape, it is impossible to adequately up, and attendees alike to persevere with their hard work
support pillars in isolation. (POJK51-D.1.a) and continue to strive for greatness.
Year-on-year our responsible development projects I am also very proud to report on programs such as the
are tested by the unique and ever-changing socio- transportation and savings cooperatives which may not
economic and environmental conditions. ANJ’s have received awards but have all matured in the past
aim when developing and pursuing our responsible year to a point where they are largely self-sufficient.
development agenda is to remain adaptable and resilient This is a wonderful achievement for our people, as the
in unpredictable circumstances. While several awarding central aim of ANJ’s responsible development ventures
bodies, such as the PROPER award, require novel is to develop programs that are sustainable and will live
innovation on an annual basis, the Company prioritizes on in the eventual absence of ANJ’s involvement.
maintaining our responsible development initiatives,
strengthening existing programs and partnerships Our sustainability teams also introduced several new
and adjusting ambitions and projections to best suit programs in 2023 to support our communities, including
prevailing contexts. the farming of chicken and fish in ANJA, Mina Padi in
SMM and the Kelas Bersinar environmental awareness
While projects may evolve, we remain committed to our program at KAL. Our flagship biodiversity monitoring
priorities for responsible development. Once again, our initiative, PENDAKI, entered an exciting new phase
focus was on food security, which the UN Secretary- with the launch of the PENDAKI Champion application
General maintains is integral to achieving all 17 in September 2023, putting us a stronger position
Sustainable Development Goals and fossil fuel phase- to strengthen the statistical quality of the species
out, which, for better or for worse, was the central observation data.
discussion point of COP28. The repeated acceleration
of our priorities at the global scale further justifies our In a further exciting development for ANJ’s sustainability
decision to uphold them and encourages our people agenda, which holds great potential to encourage
to continue their devoted efforts in pursuing ANJ’s additional financial support and community buy-in
ambitious targets. Further confirmation of the propriety for our sustainability initiatives, we commissioned a
of our targets was ANJ’s selection for the United Nations third party to conduct a comprehensive Biodiversity
Global Compact (UNGC) Faster Forward initiative, where Richness Valuation of our KAL estate. The assessment
companies who are deemed to uphold exceptional covers a range of factors, from the carbon value, the
sustainability standards are selected to fast-track their aesthetic value, and the direct economic contribution
achievement of a chosen SDG. This year, ANJ chose to of biodiversity to people living within the area, to the
focus on achieving Net Zero. impact value of active conservation management. The
valuation calculates a Total Conservation Value for the
In June 2023, ANJ held its first Responsible Development area in USD, which is a very useful tool for companies,
(RD) Excellence Awards in Belitung. Planning for such as ANJ, to justify investment in sustainability and
this year’s ceremony was a priority for the respective biodiversity conservation.
management teams to ensure that our outstanding
responsible development initiatives received the high I would also like to note that, this year, we placed a
praise they deserved. The awards aim to highlight the greater emphasis on female empowerment in each of our
new and ongoing programs which have demonstrated responsible development programs through providing
great development over the course of the year. There women with greater responsibility and autonomy by
were several categories of award, each of which required placing them in positions of authority. We believe that
extensive deliberation on behalf of the Sustainability such action sets a precedent for the rightful role of
Committee to determine the most deserving winner. women within the community and marks the start of a
shift in culture towards one of gender equality.
14 PT Austindo Nusantara Jaya Tbk.
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2023 Sustainability Report
Moving Forward sustainable, ethical approach even if it requires greater
investment on our behalf. I anticipate that going forward,
Planning for the future might appear inconsequential we will continue refining our strategies in the constantly
amid unpredictable local and global conditions. Hence, evolving sustainability landscape where communities,
establishing a resilient approach to responsible governments, and other industry actors look towards
development that endures uncertainty and equips our ANJ as a role model and a trustworthy partner.
workforce with robust strategies during challenging
times stands as a fundamental aspect of ANJ’s core On behalf of the BOD, I would like to thank all
mission. While forecasting the future remains elusive, ANJ’s people. To our commissioners, management,
readiness for whatever lies ahead remains within our employees, contractors, smallholder farmers, partners,
reach. and investors, I am grateful for your continued support
in realizing ANJ’s sustainability targets. Our appreciation
ANJ’s future priorities chiefly revolve around fortifying also goes to our stakeholders, including local
our operations and responsible development initiatives communities in our operating areas, business partners,
to confront more severe weather patterns. Anticipating local and national government, non-governmental
increased frequency and intensity of El Niño and La Niña and community-based organizations, the scientific
years necessitates readiness to address the impacts of community, and the media. ANJ’s sustainability agenda
extreme droughts, floods, and the environmental and is extensive and interdisciplinary. Without the support of
human toll of abrupt shifts between these extremes. The our vast network of collaborators and partners, progress
looming threat of dramatic climate change accentuates in this area would fall short of the urgent requirement
the imminent rise in global food insecurity, a persistent to make a dramatic and lasting change to the way that
issue in many of our operating regions. To counter agribusinesses operate. We value the relationships that
these challenges, ANJ is poised to heavily invest in allow ANJ to champion responsible development and
flood and fire prevention systems, community-based set an example for others within our industry. Moving
farming programs, livelihood enhancements, forest forward, I am very optimistic about the contributions
and biodiversity protection, and emissions reduction we can make to the sustainability landscape, and I
initiatives. Additionally, prioritizing infrastructure look forward to observing how future collaboration will
improvements across our regions stands as a crucial support ANJ’s journey.
measure to safeguard both people and the environment.
Establishing enduring objectives, like our aim to
achieve Net Zero emissions by 2030, has enabled ANJ
to create a central roadmap guiding our advancement
and the adoption of responsible development strategies,
both current and future. The enhancements in our
sustainability reporting systems this year have also
empowered the Company to refine its reporting methods,
providing management with more intricate insights into
strengths and weaknesses, along with additional time
to manage and address any areas needing attention.
This heightened efficiency in our reporting systems LUCAS KURNIAWAN
has further enabled ANJ to participate across a wider
President Director
spectrum of reporting platforms.
Safeguarding Values, Securing Trust is an appropriate
theme for our Sustainability Report this year. By
upholding and reinvigorating our core values, ANJ has
cultivated a culture of trust among its People and external
stakeholders. Nurturing strong relationships means
that ANJ receives unwavering support, even in times of
shifting priorities, as we consistently earn trust in the
Company’s steadfast commitments to championing our
values, good corporate governance and a solid approach
to responsible development. As part of this commitment,
ANJ prioritizes transparency and authenticity in
facing challenges, meaning that we focus on taking a
PT Austindo Nusantara Jaya Tbk. 15
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2023 Sustainability Report
STATEMENT OF RESPONSIBILITY
By the Members of the Board of Directors and the Board of Commissioners
for the 2023 Sustainability Report of PT Austindo Nusantara Jaya Tbk.
Jakarta, April 30, 2024
We, the undersigned, declare that the information contained in the 2023 Sustainability Report of
PT Austindo Nusantara Jaya Tbk. is complete and we are responsible for the accuracy of the report’s content.
Thus, this statement is duly made by the Board of Directors and Board of Commissioners.
BOARD OF DIRECTORS
Lucas Kurniawan Geetha Govindan Naga Waskita
President Director Vice President Director Director
Aloysius D’Cruz Nopri Pitoy Mohammad Fitriyansyah
Director Director Director
BOARD OF COMMISSIONERS
Adrianto Machribie
President Commissioner (Independent)
George Santosa Tahija Sjakon George Tahija
Commissioner Commissioner
Anastasius Wahyuhadi J. Kristiadi
Commissioner Independent Commissioner
Darwin Cyril Noerhadi Istini Tatiek Siddharta
Independent Commissioner Commissioner
PT Austindo Nusantara Jaya Tbk. 17
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Our Sustainability Commitments Prosperity Planet People Appendix
OUR VALUES
(POJK51-C.1)
Responsible business practices are important to ANJ; thus, we take into account ethical,
environmental, and social considerations alongside financial ones. Our Vision, Mission, and
Values statement is available on our website and distributed to all employees and contractors
in both Indonesian and English. It outlines our value system of integrity, respect for people
and the environment, and continuous improvement. All ANJ contracts include sections that
indicate expectations about respecting our principles and sustainable business practices. All
our business partners, vendors, and investors are made fully aware of these expectations.
Workers are inducted into the Company’s culture at the start of employment, and taught to
cherish its vision, mission, and core values; subsequent trainings are held at regular intervals
to reinforce these concepts. (POJK51-F.1)
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2023 Sustainability Report
VISION
To become a world-class agribusiness-based food company that
elevates the lives of people and nature.
MISSION
• People and nature oriented:
People and nature as the north star of the Company, guiding every aspect of all
business activities.
• Striving for world-class excellence:
A continuous quest to comply with and exceed local and global standards,
exercising good corporate governance.
• Sustainable growth for prosperity:
Achieving widespread economic prosperity without exhausting the finite
resources at our disposal.
• Integrity:
Doing the right thing at all times, in all circumstances, regardless of the
consequences or of anyone watching.
VALUES
INTEGRITY RESPECT FOR PEOPLE CONTINUOUS
AND THE ENVIRONMENT IMPROVEMENT
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Our Sustainability Commitments Prosperity Planet People Appendix
OUR SUSTAINABILITY COMMITMENT (POJK51-A.1)
The ANJ Sustainability Policy represents our development strategy. The Sustainability Policy is
company’s commitment to Sustainable Development. accompanied by an Implementation Guidance brief that
It is accessible on our website [https://www.anj- is updated for continual improvement or to reflect any
group.com/en/sustainability-approach-and-policies]. changes to the RSPO Terms and Conditions. Several
Following the RSPO Principles & Criteria (P&C 2018) elements of the Sustainability Policy Implementation
and other internationally recognized benchmarks, the Guidance were revised in 2021 to provide greater clarity.
Sustainability Policy was last amended on October 31, This policy remains effective regardless of alterations in
2019 and signed by the ANJ Board of Directors, making the composition of the BOD. (2-23)
clear our commitments to preventing and mitigating the
negative impacts of our operations on communities and The policy is governed by the guiding principles of
the environment. It is formulated in a way that supports Corporate and Social Responsibility, Transparency and
and connects the 17 United Nations Sustainable No Exploitation. The pillars of this policy are (1) long-
Development Goals (UN SDGs) to our sustainable term economic viability (Prosperity), (2) human welfare
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2023 Sustainability Report
(People) and (3) stewardship of natural resources and Each of our suppliers must comply with and completely
environmental management (Planet). This strategy seeks commit to our Sustainability Policy, putting into action
to strike a balance between economic growth, human the requirements and commitments outlined therein and
welfare and environmental care and management. allowing us to evaluate their sustainability efforts. The
(2-24) Sustainability Policy and its implementation guidance
are shared with all employees and suppliers.
As stated in the Universal Declaration of Human
Rights (UNHDR), our Sustainability Policy affirms our
commitment to safeguarding the human rights of all
actors who may be affected by our operations, including
our employees, local communities and vulnerable
groups that are put at risk due to our activities or our
suppliers’ activities, if any. (2-22, 2-23)
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Our Sustainability Commitments Prosperity Planet People Appendix
OUR MATERIAL TOPICS (POJK51-A.1)
IN THIS SUSTAINABILITY REPORT, ANJ HAS METICULOUSLY
ADHERED TO THE AA1000 PRINCIPLES OF INCLUSIVITY,
MATERIALITY, RESPONSIVENESS AND IMPACT. OUR INTERNAL
ANALYSIS, COLLATION AND IDENTIFICATION OF ISSUES THAT WE
HAVE GATHERED FROM A WIDE RANGE OF STAKEHOLDERS OVER
THE YEARS INFORM US OF THE CONTENT AND MATERIAL TOPICS
CONTAINED IN THIS REPORT. WE CONDUCTED A THOROUGH
ANALYSIS OF OUR ENVIRONMENTAL, SOCIAL AND GOVERNANCE
(ESG) IMPACTS IN 2021 TO SET OUR SUSTAINABILITY STRATEGY
AND ESG GOALS."
After discussions with the BOD, BOC and senior executives our topics. In this report, we are also exercising GRI 13,
and managers in 2023, we feel that the items highlighted the GRI Sector Standard for the Agriculture, Aquaculture
through that process are still relevant and constitute the and Fishing Sector. (3-1)
most material sustainability issues for us. (3-1)
The results of this process are summarized in the table
In addition, the conversations we had with customers, below, where seven main subjects and twenty subtopics
auditors and observers and the rise of sustainability- were selected. Our BOD and BOC were instrumental in
conscious practices in our field, have solidified these defining the subject matter of this report and setting
topics as central to our work. Such contributions have sustainability targets. All of the topics and themes were
supplemented the concerns and viewpoints we have discussed and approved by the BOD and BOC. During
received via our continuous stakeholder engagement the writing process, members of the BOD and BOC were
with the perspectives of a broader variety of stakeholders. also interviewed to get their take on sustainability issues
We also considered industry issues highlighted in the related to their specific roles. All members of the BOD
GRI Sector Standard as additional input for reviewing and BOC have read and approved this report. (2-14)
LIST OF MATERIAL TOPICS (3-2)
Material topics Associated Targets
Standard Disclosures
GHG Emissions and Carbon Footprint • 30% GHG (Scope 1&2) intensity
GRI 302, GRI 305, GRI 306 reduction from 2015 baseline by 2030
Sub-topics
Related SDGs • GHG emission and energy efficiency • Net Zero emissions by 2030
• Waste recycling • Increase renewable energy portfolio to above 60%
• Climate risk and adaptation • Reduce our fossil fuel dependence by 20% by 2025
Material topics Associated Targets
Protecting Forests and Biodiversity • Have a robust biodiversity monitoring program
in place by 2025
Standard Disclosures Sub-topics
• Include biodiversity accounting of at least two
• Biodiversity and conservation business units into the reporting system by 2030
GRI 303, GRI 304
• Deforestation • Zero major fire incidents and no deforestation
Related SDGs • Water management • Implement fire early warning system depending
• Fire prevention and management on likelihood and post-even impacts.
• Implement peat management system and best
practices to keep peat subsidence not exceeding
4.75 cm or lower on annual basis.
• Implement water management systems and
best practices
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2023 Sustainability Report
Material topics Associated Targets
Supply Chain Practices • RSPO/ISPO certification for all plasma and
Sub-topics partnerships by 2025
Standard Disclosures • 90% smallholders engagement to advocate
• Supplier environmental and social
GRI 308, GRI 414
practices sustainable palm oil practices by 2025
• Traceability • 100% suppliers compliance with ANJ’s sustainable
Related SDGs
palm oil sourcing commitment by 2030
• Achieve 99% traceable FFB from 3rd parties by
2025, at the latest
• Implement the electronic traceability program to
support the traceability of all suppliers by 2023
• Suppliers due dilligence to assess compliance
with ANJ sourcing policies
Material topics Associated Targets
Working Conditions • Improve working and living conditions for all
Sub-topics workers by providing access to affordable staple
Standard Disclosures food ; clean and proper housing facilities; access
• Occupational Health and Safety
GRI 403, GRI 404, GRI 405
• Training and education to clean water and sanitation; access to health,
• Diversity and women’s empowerment recreational, and telecommunication facilities;
Related SDGs
and facilitate religious practices by 2025
• Increase environment, health and safety
awareness to achieve zero fatality from work-
related accidents
• Implement a work environment which supports
gender equality and no discrimination by 2023
Material topics Associated Targets
Labor rights • Provide access to early and primary education
Sub-topics facilities for children of workers in all of our
Standard Disclosures operating concessions by 2027
• Forced labor
GRI 407, GRI 408, GRI 409
• Child labor • Zero grievances and findings related to forced
• Freedom of Association labor, human trafficking and child labor issues
Related SDGs
Material topics Associated Targets
Local communities • -
Standard Disclosures Sub-topics
• Rights of local communities
GRI 413
• Community Involvement and
Related SDGs Development
Material topics Associated Targets
Prosperity and inclusive growth • -
Standard Disclosures Sub-topics
• Economic performance
GRI 201, GRI 203
• Innovation and sustainable
Related SDGs production
• Socio-economic welfare and
livelihoods
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Our Sustainability Commitments Prosperity Planet People Appendix
ESG TARGET AND ACHIEVEMENTS 2023
AMBITION
Net- zero
emissions/carbon neutral by 2030
Reduce gross GHG intensity for
30 % Scope 1 and Scope 2 without
considering sequestration
REDUCE GHG EMISSIONS in 2030 compared to 2015
60%
Increase renewable
energy portfolio by 2025
20% Reduce our fossil fuel
dependence by 2025
DECREASE FOSSIL FUELS
Achieve water intensity of 1 ton
of water for each ton of fresh fruit
bunch (FFB) processed by 2027
at the latest
WATER EFFICIENCY
of all plasma and partnership
100% smallholders are RSPO Certified
by the end of 2025
smallholders engagement to
90% advocate the sustainable palm oil
practices by 2025
PROMOTE SUSTAINABILITY
TO SMALLHOLDERS suppliers to comply with ANJ’s
100% sustainable palm oil sourcing
commitment by 2030
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2023 Sustainability Report
ACHIEVEMENT BY END 2022 PROGRESS BY END 2023
Net GHG emission of 274,970 Ton CO2eq
80% net GHG emission decrease
226,219 83% Net GHG emission
decrease compared to
Ton CO2eq Net
compared to the baseline year (2015) GHG emission the baseline year (2015)
Gross GHG intensity Palm Oil for Gross GHG intensity Palm Oil for
Scope 1 and 2 without considering Scope 1 and 2 without considering
sequestration is reduced by 6% sequestration is reduced by 17.8%
compared to 2015 compared to 2015
38% Renewable energy portfolio 43% Renewable energy portfolio
Fossil fuel dependence Fossil fuel dependence
Reduced by 9.4% compared to 2017
17.8% Reduced compared to 2017
1.088 ton 0.971 ton
of water for each ton
of water for each ton of
of FFB processed in
FFB processed in 2022
2023
75% RSPO certified 86% RSPO certified
9% 33%
smallholders engage smallholders engage
53,672 tons 62,129 tons
of certified FFB
of certified FFB
purchased
purchased in 2022 (19%)
in 2021 (9.88%)
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Our Sustainability Commitments Prosperity Planet People Appendix
ESG TARGET AND ACHIEVEMENTS 2023
AMBITION
Stable population trend for species
which trigger HCV
Zero
human-wildlife conflict in our areas
of operation, related to IUCN
Threatened and Protected Species,
PROTECT BIODIVERSITY based on Indonesian regulations
Zero major fire incident
PROTECT FORESTS
AND PEATLANDS
No deforestation
• Zero work-related fatalities
• Worker access to clean water
and sanitation and health facilities
by 2025
KEEP A POSITIVE AND SAFE
WORK ENVIRONMENT • Worker access to recreational
and telecommunication facilities
by 2025
Facilitate access to primary
education facilities for children of
workers in all
of our operating concessions
0
grievance and findings related
PROTECT CHILDREN to forced labor, human trafficking
and child labor issues
AND LABOR RIGHTS
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2023 Sustainability Report
ACHIEVEMENT BY END 2022 PROGRESS BY END 2023
More than
109,000
observation records,
More than 78,000 observation records,
from our internal
from our internal citizen scientists
citizen scientists
80 fauna species and 53 flora species in the IUCN threatened
77 & 74
in the IUCN threatened species list were species list were identified
identified in our areas. (Validated by an in our areas. (Validated
independent third party) Fauna Species Flora Species by an independent
third party)
There was no human-wildlife conflict causing harm There was no human-wildlife conflict causing harm
to the wildlife on the IUCN Red List of Threatened and to the wildlife on the IUCN Red List of Threatened and
Protected Species list Protected Species list
No major fire incident No major fire incident
Integrated fire management infrastructure phase 2 in KAL 99.3% Integrated fire management phase 3 infrastructure
was completed in 2022 was completed in 2023
• No new planting and replanting in HCV (High Conservation • No new planting and replanting in HCV (High Conservation
Value), HCS (High Carbon Stock) and peat area since the Value), HCS (High Carbon Stock) and peat area since the
issuance of our sustainability policy on October 31, 2019 issuance of our sustainability policy on October 31, 2019
• No illegal or non-compliant palm oil land use change at • No illegal or non-compliant palm oil land use change at
ANJ since October 31, 2019 and FFB suppliers’ estates ANJ since October 31, 2019 and FFB suppliers’ estates
since December 31, 2020 since December 31, 2020
• No encroachment • No encroachment
0 fatality in 2022* 0 fatality in 2023*
• Clean water, sanitation and health access are provided • Clean water, sanitation and health access are provided
to direct workers to direct workers
• The access for contractors’ workers (indirect workers) • The access for contractors’ workers (indirect workers)
is in progress is in progress
• Access to recreational facilities is available to all • Access to recreational facilities is available to all
workers workers
• Access to worship facility with religious leader visiting • Access to worship facilities with religious leaders
the site visiting the sites
*There is one contractor fatality case in 2022 *There are two contractor fatality cases in 2023
Four out of six Palm Oil operating
all concessions have provided
66 % concessions have provided access
for children of workers to primary 100% access to early childhood /
preschool education
education facilities.
• No submitted grievance related to forced labor, human trafficking
and child labor issues
• We have also provided training in all areas (Internal, Vendor /Contractor)
regarding forced labor, human trafficking and child labor
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Our Sustainability Commitments Prosperity Planet People Appendix
OUR
GOVERNANCE
Our corporate governance framework is made up of a
set of policies, controls, processes and standards that
apply to the whole company. These help to define roles
and responsibilities and ensure that everyone has a
mutual understanding and that decisions are made with
full transparency and accountability. The framework is
based on the Company’s basic values of integrity, respect
for people and the environment and a commitment to
continuous improvement, as outlined in the Company’s
Code of Ethics on Business Conduct.
TRANSPARENCY, According to Law No. 40/2007 on Limited Liability
ACCOUNTABILITY, Companies, three mutually independent authorities
RESPONSIBILITY, govern ANJ:
• The General Meeting of Shareholders (GMS) is the
INDEPENDENCE highest decision-making body.
AND FAIRNESS ARE • The Board of Commissioners (BOC) advises the Board
of Directors and oversees Company management.
CORNERSTONES OF GOOD • The Board of Directors (BOD) manages the Company
CORPORATE GOVERNANCE for its shareholders. (2-9)
(GCG) AND WE ARE The GMS is the main forum for shareholders to exercise
DEDICATED TO WHOLLY their rights to make specific decisions about the
RESPECTING THESE Company, receive reports from the BOC and BOD on
their performance and accountability, and question the
VALUES. WE BELIEVE GCG IS relevant Boards. The Company must have an Annual
ESSENTIAL FOR DELIVERING General Meeting of Shareholders (AGMS) within six
SUSTAINABLE VALUES TO months after its financial year ends. At any time, an
Extraordinary General Meeting of Shareholders (EGMS)
ALL OUR STAKEHOLDERS can be called. The GMS mandates the BOD and BOC
AND ENSURING THE to manage issues and decisions regarding economic,
COMPANY’S LONG-TERM environmental and social issues and holds them
accountable for these decisions.
GROWTH IN LINE WITH
OUR RESPONSIBLE The highest governing body is divided into two tiers: the
BOD, which serves as the executive board and the BOC,
DEVELOPMENT GOALS." which serves as the supervisory board. The President
Commissioner of the BOC, a non-executive position and
the President Director of the BOD, an executive position,
chair the two-tier governance system. There are clearly
defined procedures in place for dealing with actual or
alleged conflicts of interest between the Company and
the personal interests of the BOD and BOC. Members of
the BOD, BOC and Controlling Shareholders’ affiliations
are stated in the Company’s Annual Report (page 167)
and comply with Financial Services Authority (Otoritas
Jasa Keuangan/OJK) rules. (2-11, 2-15)
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2023 Sustainability Report
The BOC is assisted in its supervisory role by four members of the BOD are not allowed to have jobs outside
Committees: The Audit Committee, Risk Management of the Company’s Group. Under-represented social
Committee, Nomination and Remuneration Committee groups or stakeholders are not represented.
and Corporate Social Responsibility (CSR) and
Sustainability Committee, each chaired by one of the In 2023, following the GMS held on June 7, the
Commissioners. Each of these committees assists the composition of the BOC and BOD underwent changes.
BOC in reviewing the effectiveness and due diligence of This was after the shareholders consented to Mr. Istama
the organization concerning the Company’s impacts on Tatang Siddharta stepping down as a Commissioner of
the economy, environment, society and human rights. the Company and the subsequent appointment of Mr.
(2-12) Mohammad Fitriyansyah as a Director of the Company.
(POJK51-C.6)
The BOC is made up of seven non-executive
commissioners, three of whom are independent. The More information about our BOD and BOC can be
BOD has six executive directors. Both the BOC and the found on our website, [https://www.anj-group.com/
BOD are appointed for a period that lasts until the fifth en/struktur-perusahaan] and our Annual Report
GMS following their appointment. Members of the BOC page 62-77. (2-9)
may have jobs outside of the Company’s group, while
Table 02. Board of Commissioners (2-9)
Name Position Term started Term ends Independent
Adrianto Machribie President Commissioner AGMS 2020 AGMS 2025 √
George Santosa Tahija Commissioner AGMS 2020 AGMS 2025
Sjakon George Tahija Commissioner AGMS 2020 AGMS 2025
Anastasius Wahyuhadi Commissioner AGMS 2020 AGMS 2025
J. Kristiadi Commissioner AGMS 2020 AGMS 2025 √
Darwin Cyril Noerhadi Commissioner AGMS 2021 AGMS 2026 √
Istini Tatiek Siddharta Commissioner AGMS 2021 AGMS 2026
Table 03. Board of Directors (2-9)
Name Position Term started Term ends
Lucas Kurniawan President Director AGMS 2021 AGMS 2026
Geetha Govindan Vice President Director AGMS 2021 AGMS 2026
Naga Waskita Director AGMS 2022 AGMS 2027
Aloysius D’Cruz Director AGMS 2021 AGMS 2026
Nopri Pitoy Director AGMS 2021 AGMS 2026
Mohammad Fitriyansyah Director AGMS 2023 AGMS 2028
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Diversity is valued across all levels of the organization, The BOD has key performance indicators (KPIs) linked to
including the executive level. Members of the BOC and the Company strategy and implementation plan, including
the BOD have extensive experience, qualifications and sustainability targets or objectives. Each member evaluates
understanding that the Company feels are required their performance against these KPIs at the conclusion
to realize ANJ’s goals. The diversity of ANJ’s Board of the evaluation period. Each member of the BOD is
is consistent with the Appendix of the OJK Circular accountable for at least one of the KPIs for Responsible
Letter No. 32/SEOJK.04/2015 on Corporate Governance Development (RD). The collegial performance assessment
Guidelines for Public Listed Companies. Details of the of the BOC is carried out by each Commissioner. The
diversity of ANJ's Board are disclosed on our Annual final evaluation will be presented to the Nomination and
Report page 160-161. Remuneration Committee in the Board of Commissioners
meeting. The President Commissioner provides feedbacks
The composition of the board reflects the Company’s or improvements on the assessment of the Board of
priorities through a fusion of collegial and individual Commissioners, if deemed necessary. (2-18)
expertise. Appointments to the Company’s BOC and BOD
are made after careful deliberation that considers their The President Director verifies and evaluates the annual
knowledge and expertise in the plantation business, as performance of BOD members. Meanwhile, the annual
well as their integrity and dedication. performance of the President Director is reviewed and
assessed by the NRC. The outcomes of the evaluations
are further examined with the NRC, and compensation
Board Nomination and Evaluation recommendations for Directors are made. Based on the
self-assessment results, the Committee also directs the
At the GMS, shareholders appoint Commissioners development of areas of improvement. (2-18)
and Directors based on the recommendations from
the Company’s Nomination and Remuneration To integrate our commitments into our decision-making
Committee (NRC). Candidates, including independent and execution, ANJ has a policy to include 15% of the
Commissioners, must be nominated by at least one management performance, including at the Board level,
shareholder who owns at least 10% of the total shares in the ESG initiative targets, under the Responsible
with voting rights. Other stakeholders, aside from Development program. Every employee and member of
shareholders, are not involved in the process. Diversity the BOD should participate in at least one RD project.
criteria, as well as skill and experience in economic, Failure to fulfill agreed-upon objectives will result in a
environmental and social domains, are taken into poor performance evaluation grade for the respective
account during the nomination and selection process. Board members, hence reducing their performance-
The independence of board members is also considered, based annual bonus. (2-19, POJK51-F.1)
since boards are made up of professional Directors
and independent Commissioners who are not related
to or affiliated with the Company’s shareholders, in Board Remuneration
accordance with the provisions of OJK Regulation No.33/
POJK.04/2014. Furthermore, the NRC is chaired by The Company is dedicated to developing a competitive,
an independent Commissioner to guarantee that the fair, risk-based remuneration structure that is consistent
nomination and selection processes are as impartial with industry practice and current laws and regulations.
as possible. More information about the selection and The Company also ensures that no individual is paid
nomination of the BOD and BOC can be found on page less than the government-mandated minimum wage.
151-157 of the Annual Report. (2-10) Further, the Company examines the remuneration
applicable in related businesses (peer group) and the
Annually, the GMS evaluates the performance of the BOC Company’s capabilities. (2-19)
and BOD based on their annual accountability reports.
Additionally, each Board conducts an annual self- In compliance with applicable laws and regulations,
evaluation of its performance. No external parties were the Company implements remuneration policies that
selected to examine the performance of the BOC or BOD. encompass all levels of the organization, including the
(2-18) BOC, the BOD, and the workers and include both mandatory
components and additional benefits. Members of the
BOC are paid a monthly honorarium, whereas members
of the BOD are paid a base salary, a performance bonus,
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2023 Sustainability Report
allowances, benefits, management stock options and long- Due to confidentiality considerations, we are unable to
term retainer bonus if the member of the BOD remains at disclose specifics regarding the annual compensation
the service with the Company at the end of fifth year after ratio between the highest-paid individual and the median
the retainer bonus is granted. Liability insurance covers annual total compensation for all employees, along with
all Commissioners and Directors. No clawback clauses the percentage increase of this ratio. Nonetheless,
are included in the remuneration and benefits received by relevant data and information regarding this matter are
the BOD and BOC. The shareholders at the GMS decide on readily accessible and available upon request. (2-21)
the level of remuneration for both the Commissioners and
the Directors based on the suggestion of the NRC. Details
on remuneration are disclosed in our Annual Report on Training for the BOD and BOC (POJK51-E.2)
page 164-166. We refrain from providing sign-on bonuses
and recruitment incentive payments, whereas termination We take steps to ensure that our BOD members have the
compensation and retirement benefits are provided in knowledge and skills necessary to properly implement
accordance with Indonesia’s labor law. (2-19, 2-20) our sustainability goals. Board members acquire
sustainability training and knowledge through a variety
The Company did not hire outside advisors to develop its of means, including short courses, workshops and
remuneration policy. However, to remain competitive, the seminars, self-study and participation in sustainability-
Company conducted salary benchmarking using third- related projects. Certain members of the BOD underwent
party surveys. The remuneration policy of the Company training on sustainable development subjects in 2023, as
is based on performance, competitiveness, fairness and shown in the table below. (2-17)
risk. There is no system in place to seek stakeholder
inputs when considering board remuneration. (2-20)
Table 04. Training and Development of BOD on Sustainable Development Topics
No Trainings Participants Date
Global Deep Dive 1 - Business & Human Rights Accelerator - UN
1. Lucas Kurniawan February 7, 2023
Global Compact
EU Carbon Border Adjustment Mechanism: What it means for
2. Lucas Kurniawan March 29, 2023
businesses in Asia Pacific and their decarbonization Journey
The Importance of ESG and Countering Negative Campaigns in the
3. Lucas Kurniawan April 4, 2023
CPO Sector
Local Peer-to-Peer Learning Session 3: Prioritizing Potential
4. Lucas Kurniawan April 18, 2023
Impacts Based on Severity and Likelihood
2023 International Seminar on Carbon Neutrality and Energy
5. Lucas Kurniawan May 3, 2023
Policy by Korea Chamber of Commerce and Industry
Peer-to-Peer Learning Session 4: BHR Accelerator - UN Global
6. Lucas Kurniawan May 17, 2023
Compact
Business and Human Rights Accelerator: Global Deep Dive 6 - UN
7. Lucas Kurniawan June 26, 2023
Global Compact
Launch of 2023 CDP Global Forest Report: “Beyond Climate
8. and into Nature: Developing Strategies Towards Environmental Lucas Kurniawan August 2, 2023
Stewardship”
Climate Ambition Accelerator: Regional peer sharing on SBTi
9. Lucas Kurniawan August 16, 2023
journey
Coaching Clinic 3 SDG 16 Business Framework: Inspiring
10. Naga Waskita April 4, 2023
Transformational Governance
RSPO Conference: Solutions for Worker Health and Safety in a November 20, 2023 -
11 Geetha Govindan
Heating Climate November 22, 2023
12 Business and Human Rights Accelerator – UN Global Compact Nunik Maharani February 7, 2023
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Our team regularly engages with communities to
raise awareness and promote our sustainability
policies and initiatives
Sustainability Governance (POJK51-E.1)
The BOD led by the President Director, is responsible The Director of Sustainability oversees developing
for leading, managing, directing day-to-day operations, and implementing the Company’s sustainability
and ensuring that the Company adheres to its vision and commitments and initiatives. A team of senior managers
mission, as well as good governance standards. The supports the Director of Sustainability, including the
President Director oversees the activity of all Directors. Head of CID and Cooperatives, the Head of Conservation,
(2-9) and the Head of Corporate Communications. Other
departments that are directly related to the sustainability
The CSR and Sustainability Committee ensures that function also collaborate with the sustainability
the BOC can accurately supervise and monitor the department. Senior executives report quarterly to the
Company’s CSR and sustainability commitments, which CSR & Sustainability Committee and bi-weekly to the
are based on operational risks and opportunities. The ANJ Executive Leadership Team (AELT) meetings, which
group meets quarterly to examine challenges, progress are attended by all members of the BOD, including those
on responsible development initiatives, environmental from subsidiaries. (2-13)
and social issues and community grievances, community
participation, government engagement, biodiversity Given the importance of sustainable palm oil operations
protection, alignment with SDGs, media attention, to our sustainability performance and carbon footprint,
and sustainability recognitions. In 2023, the CSR and the Vice President Director oversees and manages the
Sustainability Committee met four times, with full impacts of our palm oil operations, as well as the risks
attendance at each meeting. Sjakon George Tahija, a and opportunities associated with climate change. (2-13)
Commissioner of the Company, chairs the CSR and
Sustainability Committee. (2-12)
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2023 Sustainability Report
Sustainability Governance Structure (2-9, 2-13, POJK51-E.1)
BOARD OF
COMMISSIONERS
PRESIDENT
DIRECTOR
VICE PRESIDENT
DIRECTOR
SUSTAINABILITY
& CORPORATE
COMMUNICATIONS
DIRECTOR
HEAD OF HEAD OF
HEAD OF CORPORATE COOPERATIVES HEAD OF SUSTAINABILITY
COMMUNICATIONS & CID CONSERVATION COMPLIANCE
INTERNAL EXTERNAL BRAND & SUSTAINABILITY SUSTAINABILITY
COMMUNICATION COMMUNICATION MARKETING CID CONSERVATION COMPLIANCE COMPLIANCE
MANAGER MANAGER COMMUNICATION MANAGER MANAGER MANAGER REGION COORDINATOR
MANAGER 1,2 & 3 MANAGER
SUSTAINABILITY
CONTENT CORPORATE CONSERVATION COMPLIANCE SUSTAINABILITY
CREATOR COMMUNICATION CID STAFF DATABASE ASSISTANT COMPLIANCE
SPECIALIST STAFF STAFF MANAGER STAFF
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STAKEHOLDER ENGAGEMENT (POJK51-E.4)
TO ACTIVELY INVOLVE AND ENGAGE WITH STAKEHOLDERS
AT ALL LEVELS (LOCAL, REGIONAL, NATIONAL AND
INTERNATIONAL), WE EMPLOY A WIDE VARIETY OF
STRATEGIES. EMPLOYEES, SUPPLIERS AND CONSUMERS,
SHAREHOLDERS, GOVERNMENT AND REGULATORS,
LOCAL COMMUNITIES, COMMUNITY-BASED GROUPS, NON-
GOVERNMENTAL ORGANIZATIONS, BUSINESS PARTNERS,
INDUSTRY PEERS AND ASSOCIATIONS AND THE MEDIA
ARE ALL EXAMPLES OF SIGNIFICANT STAKEHOLDER
CATEGORIES FOR US. THROUGH CONSISTENT
INTERACTION AND COMMUNICATION, BOTH FORMALLY
AND INFORMALLY, COMMENTS AND CONCERNS ARE
GATHERED." (2-29)
Stakeholder engagement activities, such as Stakeholders outside of the organization are
community forums and consultation groups, consulted to better comprehend and address
the implementation of community complaints the environmental, social and economic subjects
and grievance mechanisms, representation on and challenges highlighted in the report. Our
certain industry association committees and staff are updated through a variety of internal
initiatives and community programs, must be platforms, including but not limited to e-mail,
planned, implemented, and documented by all a newsletter (Simpul), a magazine (Cakrawala),
our business entities. Our internal processes of intranet, town halls, anonymous surveys,
identifying and mapping our stakeholders are social events, and meetings. We provide both
kept current through continuous communication English and Indonesian versions of our internal
with those with whom we aim to engage. (2-29) documentation and announcements. (2-29)
Our staff regularly conduct dialogue with
local communities to share and discuss our
sustainability and commitments.
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TESTIMONIALS
Vitaquodipis adigendae exerrum quassim
voluptat ut voluptiorit fuga. Ut aces simi, adi
aut a ne siminvel into iminctum repedi ditaeped
magnimo loruptae nulpa cores
Tommy Sudjarwadi
Partner, Dunamis Organization Service
ANJ is a forward-thinking business organization that has integrated a visionary set of values and
principles well before the 3P concept (Prosperity, Planet, People) became a benchmark for business
success. These elements form the core of ANJ’s operations and are rigorously detailed, promoted,
and consistently applied under the banner of ANJ Values.
In a business landscape predominantly focused on profit, ANJ Values acts as a robust counterbalance,
ensuring that ANJ maintains a focus on human welfare and environmental sustainability. This
equilibrium is maintained through the strict discipline of ANJ’s shareholders and senior leadership,
as well as the cultivation of a strong organizational culture anchored in ANJ Values.
A variety of initiatives and critical routines are carried out to sustain ANJ Values, especially
involving key decision-makers and Values Guardians. In 2023, Values Champions from various levels
collaborated to fortify their roles across the organization. The strategy comprised three main actions:
Commit (to reinforce commitment), Model (to serve as exemplars), and Reinforce (to promote
consistent behaviors among employees). While these efforts may seem straightforward, the tireless
work to mutually strengthen the relationships among Values Champions and more broadly among all
employees, establishes ANJ Values as a robust foundation for ANJ, positioning it as a reliable and
sustainable organization.
Hadrianus Andjar Rafiastanto
Deputy Chief of Party, USAID Sustainable Environmental
Governance Across Regions (SEGAR) Activity
During four field trips undertaken during the year by the Sustainable Environmental Governance
Across Regions (SEGAR) Activity to the KAL concession, including its High Conservation value (HCV)
area, the commitment of the company to the protection and management of its 3,973 hectares HCV
area is evident.
The area constitutes 23% of its total concession and plays a key role in conserving the habitat of the
resident orangutan population within. KAL’s Conservation Team has consistently implemented good
HCV management and monitoring, consistent with its plan and supported by strong data collection
and analysis.
Further, KAL has shown its willingness to support biodiversity and forest protection outside
its concession area, by working with the local community and district government to conserve
threatened mangrove ecosystems in two neighbouring villages, Kuala Satong and Kuala Tolak, as
well as conserving forests and orangutans in Laman Satong village.
In addition, KAL has provided technical assistance to independent smallholders in neighbouring
villages to improve their capacity to produce oil palm more sustainably, as well as supporting the
Village Forest Management Unit and village-owned water bottling enterprise in Laman Satong to
strengthen local sustainable livelihoods.
These activities demonstrate KAL’s commitment to meeting Environmental, Social and Governance
(ESG) standards, as well as its contribution to Sustainable Development Goals (SDGs).
DR. Edi Purwanto
Director, Tropenbos Indonesia
We are proud of the strong partnership between KAL and Tropenbos Indonesia (TI) in preserving the
forest since 2016. Our collaboration in developing the Essential Ecosystem Management Plan (KEE)
for the Putri-Gunung Tarak-Gunung Palung Landscape, Ketapang Regency, has resulted in significant
achievements, including the allocation of 3,973 hectares of High Conservation Value (HCV) areas.
We highly appreciate KAL’s efforts in ensuring environmental protection and sustainable
development around its operational areas. The collaboration between KAL and TI has not only
benefited environmental preservation but also improved the welfare of local communities, such as
the development and empowerment of Kuala Tolak, Kuala Satong and Laman Satong villages.
We hope this partnership continues to grow and brings broader positive impacts on the environment
and local communities around Ketapang Regency.
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2023 Sustainability Report
Grievance and Whistleblowing Systems Champion Committee at the Jakarta headquarters.
Unethical actions are investigated and depending on the
We have in place a grievance procedure for stakeholders circumstances, disciplinary measures may be taken. 35
to report complaints or issues. Complaints can be Values Champions were working across the ANJ Group
communicated directly to our Community Involvement at the end of 2023.
and Development (CID) or security employees at each
estate, or via digital channels. Grievances are recorded In addition, we have a whistleblowing system (WBS)
and reviewed at the estate level and depending on the known as Berani Bicara. Through this channel, any
severity and scale of the case, may be escalated. Each employee, third-party vendor, supplier or other
report must be investigated within fourteen days of stakeholder may report concerns securely and
receipt. We are committed to addressing concerns confidentially regarding any suspected misconduct,
and taking corrective action following the verification such as fraud, corrupt practices, violations of the Code
of reports and in the event of real adverse effects or of Ethics or the corporate values or any violation of
violations by the Company. As per the RSPO Principles laws and regulations by any member or associate of the
and Criteria, an independent third party assessed and Company. The system is intended to aid in the prevention
validated our grievance procedure. (2-25) and early detection of wrongdoing that could be harmful
to the Company or its reputation. The Internal Audit Unit
To ensure that the Company’s values are consistently conducts investigations into whistleblower reports. (2-26)
emphasized at all levels and throughout all business
areas, we established the Values Champion system in Other channels such as internal audits, stakeholder
2013. Values Champions are employees who have been meetings, reviews of social and environmental
selected to promote ANJ’s core values and observe how assessments and the annual shareholders meeting,
these values are being applied on the job. The Company also allow for the expression of critical issues. Important
looks to its Values Champions to set an example of economic, social, and environmental issues are
how those principles are actualized. Values Champions considered at the meetings of the CSR & Sustainability
provide a monthly report to their assigned Values Committee and the AELT. Joint meetings between
Champion Coordinator detailing any major practices the BOC and the BOD provide an additional forum for
that were or were not in line with the Company values. debating these crucial issues and critical concerns. (2-
ANJ’s Values Guardians, commissioners George Tahija 16, 2-26)
and Anastasius Wahyuhadi, receive these monthly
reports after they have been evaluated by the Values
Through our WBS channel, Berani Bicara, the Company
ensures the confidentiality of all informants.
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ANJ VALUES: NAVIGATING CHANGE IN AGRIBUSINESS WITH
INTEGRITY AND TRUST
FEATURE STORY
ANJ's Values Guardian, George S. Tahija, expressed pride and optimism regarding
our Values Champions, who are dedicated to extending ANJ's values to all employ-
ees across the organization.
Navigating the complexities of the modern These instruments are all aimed at protecting
agribusiness sector requires resilience, the Company from practices that violate its core
adaptability, and a clear set of guiding values.
principles. ANJ has faced the challenges of a Among these, the Values Champion stands out
rapidly changing geopolitical landscape and as the longest-serving instrument, having laid
the undeniable impacts of climate change the groundwork for value implementation at ANJ
head-on, with a commitment to maintaining a well before the introduction of the other systems.
responsible and economically viable business.
Amidst this environment of constant change, The genesis of ANJ Values was rooted in 1998
ANJ has anchored itself in two constants: a when ANJ formulated its core values. In 2003,
steadfast commitment to its core values and ANJ management underwent its first retreat,
the trust it has earned within its brand. signifying the Company's commitment not only
defining its values but also actively living by them.
These core values —Integrity, Respect for In 2013, the formal inception of Values Champion
People and the Environment and Continuous (VC) batch 1 marked a significant evolution when
Improvement— serve as ANJ’s North Star, a group of employees was explicitly recognized
guiding every aspect of its operations, from and tasked with championing the core values.
strategic decisions to daily tasks. They are the Since then, the framework and procedures of VC
foundation of the Company’s identity and the have been methodically structured, incorporating
lens through which all business activities are regular meetings and reporting mechanisms.
evaluated and executed. These values have This systematic approach facilitates the
been firmly upheld throughout the years and champions’ continuous engagement and
have never grown obsolete since its formulation accountability toward their roles.
25 years ago.
Two in-depth retreats in 2016 and 2023 further
Currently, ANJ employs several mechanisms demonstrated the seriousness of the Company to
to reinforce its values, such as the whistle- foster stronger sense of community among the
blowing system “Berani Bicara,” LKS Bipartit, champions and serving as a vital checkpoint to
the Gender Committee and Values Champion.
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2023 Sustainability Report
assess the progress and impact of the program while sense of pride and ownership, as well as ensuring that
planning future actions. With a theme of “Becoming all employees internalize the Company’s core values as
Great Values Champions: from Values to Corporate to have a unified perceptions of the Company’s culture
Culture”, the retreat in March 27-28, 2023, focused on and what is expected from them.
both celebrating the achievements and looking forward
to future challenges and opportunities while adapting to This initiative’s significance is highlighted by the direct
the evolving needs of the Company and its environment. involvement of the Values Guardians, George Tahija and
By the end of the event, participants were imbued with a Anastasius Wahyuhadi, who are the Commissioners of
renewed enthusiasm for fulfilling their roles as Values the Company. They take responsibility for ensuring the
Champions. Company’s actions reflect its core values.
During the event, George Tahija, ANJ’s Values Guardian, In a recent survey, 40% of respondents acknowledged that
expressed his pride and optimism about the evolution the Values Champion instrument has a very good impact
of the Values Champion. He remarked, “Witnessing on the Company, while an additional 44% acknowledged
the transformation of VC from its initial steps as a its good impact. This indicates a strong endorsement
foundational initiative to a comprehensive framework of the instrument, with a combined 84% of participants
that actively molds our company’s culture gave me affirming its positive influence. The consensus among
immense pride. The dedication and enthusiasm of nearly all respondents is that the Values Champion should
our Champions was remarkable. Their willingness to be continued as it forms the foundation of the Company’s
voice opinions, engage in meaningful discussions, and existence. This consensus highlights the effectiveness of
actively contribute to group and classroom settings have the Values Champion instrument in fostering a positive
been pivotal. They have adhered to the event schedule and enduring organizational culture. This deliberate
with notable discipline and punctuality, courageously focus on values and culture underscores ANJ’s
tackling real challenges and issues. I am convinced recognition that long-term success and sustainability
that participation in this retreat has enriched their are not just about financial performance but also about
understanding of their roles as Values Champions. I building a strong, value-driven organization. In doing so,
remain optimistic that with the sustained support from ANJ ensures that its commitment to integrity remains
all our Champions, these values will be firmly ingrained at the forefront of its business strategy, fostering a trust
within our corporate ethos.” that resonates with its key stakeholders.
Equally important is how ANJ values are then extended Anastasius Wahyuhadi, shared insightful reflection on
to all employees, ensuring comprehensive engagement the ongoing journey of VC: “Values Champion, both as
and participation across the organization. After a two- an instrument and especially as individuals, is always
year hiatus from in-person format due to Covid-19 work in progress; we must acknowledge the ongoing
pandemic, ANJ Values Workshop commenced with its opportunities for improvement through humility, self-
first live meeting in 2022 continuing to 2023, conducting reflection, and a committed spirit to enhance our efforts.
sessions across business units including ANJA, ANJAS, Building a company culture through instilling values
SMM, KAL, ANJT, GMIT, ANJAP, PMP and PPM. The is a gigantic task — it demands our perseverance and
primary goal of this initiative is to ensure that every ANJ resilience, but I am confident that ANJ will navigate
employee understands and embodies the established these challenges successfully.” His words serve as a
vision, mission, and core values in their behavior reminder of the commitment and diligence required to
and personal attributes. 28 workshop sessions were build and maintain a meaningful organizational culture.
conducted within 2023. The workshops also ensured
that employees from all levels of work and divisions In a world of constant flux, ANJ’s dedication to its core
participated actively. values and the trust it has earned and nurtured within its
brand stand as testaments to its vision and leadership
The ANJ Values Workshop plays a crucial role in fostering in the agribusiness sector. Through continuous
the personal development of ANJ employees, instilling a engagement and reinvigoration of its values, ANJ not
only navigates the challenges of today but also paves the
way for a resilient and sustainable future.
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ANJ's Values Guardian, Anastasius Wahyuhadi, congratulated the employees
who had just been appointed as Values Champions.
CRITICAL CONCERNS REPORTED IN 2023 (2-26)
DESCRIPTION OF CASES
Fraud & Manipulation Non-Compliance Operational
(Integrity related) with Internal Control SOP Inefficiency
DESCRIPTION OF CASES
Major - Major - Major -
Minor 1 Minor 11 Minor -
Total Cases 1 Total Cases 11 Total Cases -
TOTAL
MAJOR - MINOR 12 TOTAL CASE 12
We endeavor to meet and surpass local and international rules, standards and prevailing laws and regulations. There
were no cases of non-compliance against laws and regulations that resulted in fines or other non-monetary sanctions
in 2023. (2-27)
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External Initiatives and Memberships
Participating in national and regional groups that encourage information exchange and better standards and compliance
among producers and other stakeholders is an important aspect of our stakeholder engagement strategy. These
memberships do not add significant expenses beyond the annual subscription amount paid by the Company. (2-28)
Table 05. ANJ’s membership in associations in 2023 (POJK51-C.5)
ASSOCIATION ROLE
Indonesian Public Listed Companies Association (AEI) Participates as an active member.
Participates in forums to encourage a conducive climate for the
Indonesian Palm Oil Producers’ palm oil industry, increase capacity for sustainable palm oil,
Association (GAPKI): Central Office, Bangka Belitung and advocate for solutions to problems in the palm oil industry and
North Sumatra Branch synergize with the government on related policies; Active member
in Sustainability section (GAPKI Central Office).
Participates in forums to coordinate compliance with government
Association of Large Private Plantations (APBS) Belitung policies, discuss solutions to industry problems, and share
information.
Participates in fostering the development of the business
Indonesian Chamber of Commerce
community and all its stakeholders, regarding economic policy
and Industry (KADIN)
formulation and implementation throughout Indonesia.
Participates in promoting the development of sago as part of the
Indonesian Sago Community (MASSI)
national food security effort.
Participates actively in two working groups: No-deforestation
Roundtable on Sustainable Palm Oil (RSPO) Task Force and Indonesia National Interpretation; Represents
Indonesian Growers Caucus as Complaint Panel member.
Participates as a member to promote sustainable palm oil
Indonesian Growers Caucus management and best practices and to share insights of common
interests in the industry.
UN Global Compact Signatory of the UN Global Compact.
Indonesian Sustainable Palm Oil Forum
Participates as an active member.
(FoKSBI)
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Palm oil landscape at our subsidiaries in Southwest Papua. 42 PT Austindo Nusantara Jaya Tbk.
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PROSPERITY
Economic Performance Amid Global Challenges 45
Upholding Best Practices in Supply Chain and Traceability 51
Upholding Highest Commitments to Customer Excellence 58
Fostering Community Prosperity and Well-Being 59
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ANJ’S RESPONSIBLE
DEVELOPMENT APPROACH IS
ANCHORED IN ROBUST AND
SUSTAINABLE ECONOMIC
PERFORMANCE, WHICH
SERVES AS A CORNERSTONE
OF OUR OPERATIONS. WE
RECOGNIZE ITS PIVOTAL ROLE
IN ENSURING THE LONG-TERM
SUCCESS OF OUR COMPANY
AND IN FOSTERING POSITIVE
ECONOMIC OUTCOMES
AND GROWTH WITHIN THE
COMMUNITIES WE SERVE,
ESPECIALLY THOSE WITHIN Setting up safety nets on FFB trucks helps prevent fruits
OUR VALUE CHAIN. ECONOMIC from falling during transportation.
PERFORMANCE SERVES AS THE
FOUNDATION FOR ACHIEVING Central to ANJ’s mission is the inclusivity of our
operations, aimed at creating opportunities and
A HARMONIOUS EQUILIBRIUM fostering community development. By integrating local
BETWEEN PEOPLE, PLANET smallholder farmers into our value chain, offering
employment prospects, and catalyzing business
AND PROSPERITY. " opportunities, we actively contribute to the betterment of
our surrounding communities. Moreover, our presence
attracts workers and their families to the region, thereby
stimulating local economic growth through creating
demand for goods and services from nearby merchants,
grocery stores, eateries, and other enterprises. We aspire
to evolve into a driving force for economic advancement
at both local and regional levels.
To ensure widespread socioeconomic empowerment, we
implement initiatives such as Community Involvement and
Development (CID) and Responsible Development (RD)
projects. These endeavors are designed to facilitate the
participation of all members of the community in the local
economy, particularly those who are marginalized. By doing
so, we aim to enable every individual to fully engage with
and benefit from local economic growth and development.
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ECONOMIC PERFORMANCE AMID
GLOBAL CHALLENGES
Compared to recent years, the economic climate in Accelerating Growth and Fostering
2023 improved but still faced significant hurdles from
Innovation (POJK51-F.26)
the profound impact of the pandemic on businesses
and the global economy, as well as the El Niño
Given the unpredictable nature of the global
phenomenon, which has already caused extremes
economy, our primary approach to sustaining
of weather across our operating region. El Nino’s
growth and resilience is to integrate ESG strategies
aberrant weather patterns brought about a prolonged
into our core business framework. Several of our
drought condition, leading to reduced yields and
ESG programs, including the composting initiative,
diminished fruit quality. Overall, the El Niño event
have demonstrated cost-effectiveness. We are
of 2023 highlighted the importance of resilience and
committed to further exploring additional projects
adaptation in the face of climate change for the palm
and investing in agronomic innovations to enhance
oil industry.
productivity. Concurrently, we will maintain a focus
on cost management and restrict non-essential
Market volatility and competition also posed
capital expenditures to preserve profit margins.
challenges to the Indonesian palm oil industry in 2023.
These efforts complement existing strategies like
Fluctuations in the global market continued to impact
replanting and optimizing our factories’ production
the profitability of palm oil producers, particularly
capacity.
smallholders. For example, in 2023, the average
price of crude palm oil (CPO) in Indonesia reached a
ANJ is dedicated to research and development
peak of around USD 965 per metric ton in February
(R&D), exemplified by the establishment of an R&D
but dropped to around USD 795 per metric ton by
section at SMM in 2015. This R&D capability was
December. Competition from other vegetable oils,
developed in partnership with the French agricultural
such as soybean and rapeseed oils added complexity
research group, Centre de Coopération Internationale
to the market dynamics. Additionally, forthcoming
en Research Agronomique pour le Développement
regulatory measures in importing countries, such
(CIRAD). Our R&D laboratory houses a team of
as the European Union Deforestation Regulation
experts in soil science, microbiology, statistics, pests
(EUDR), may have a significant impact on the palm oil
and diseases, alongside field research personnel
industry in Indonesia. This specific regulation aims to
who oversee field trials and monitor optimal
reduce the import of products linked to deforestation,
management practices. Collaborating closely
including palm oil, by setting stricter criteria for
with our estates, the R&D team implements best
sustainable production. As the Netherlands is one of
agronomic practices and fosters innovation.
the top five largest importers of Indonesian palm oil,
this regulation may lead to a decline in demand and
Additionally, we will persist with our replanting
a subsequent decrease in exports. The European
program in the ANJA and SMM estates with the
Union’s RED II directive, which aims to phase out high-
objective to maintain a balanced age composition
risk biofuels like palm oil-based biofuels, may also
of palm plants, ensuring sustainable production in
reduce the demand for Indonesian palm oil exports.
the coming year. In addition, efforts to secure land
Moving forward, ANJ and the wider industry will need
compensation at GSB will continue, with a target of
to consider these challenges to ensure that negative
consolidating 3,000 hectares of contiguous area for
impacts are mitigated.
the HGU process. As our plantations in Southwest
Papua has reached maturity in 2023, we proceed
with planned infrastructure developments, primarily
focusing on road lateriting, to enhance logistics and
transportation efficiency.
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Workers harvest mature oil palm plants, carefully
cutting and collecting the fresh fruit bunches.
As part of Indonesia’s food diversification and security In our edamame venture, we concentrate our strategic
efforts, we believe that sago starch presents a significant efforts in a number of key areas, including: to expand
opportunity as a sustainable alternative carbohydrate the planted area by establishing broader collaborations
source, which can help reduce reliance on rice, wheat, with farmers in and around Jember; to increase yields by
and other staple grains. Sago starch, being gluten-free implementing the best agronomic practices, investing in
and with beneficial digestive properties, has potential seed quality programs and strengthening our integrated
applications in various food products. We are observing pest management strategies; to develop professional
a growing interest in its use in processed foods, both and skilled Field Assistants through the Field Assistant
domestically and in export markets such as Japan, Development Program to guide farmers towards better
Singapore, Malaysia and China. To take advantage of yields; to optimize the plant capacity by processing other
this, throughout 2023, we are continuing our efforts in raw vegetables during low edamame production periods;
preparing the launch of our second sago estate area to expand export markets to countries beyond the Asia
with the main objective to increase the number of logs Foods channels; to grow the domestic market with
processed per day and stabilize production volumes to Edashi-branded frozen edamame packs.
meet our targets in serving the markets.
As part of our sustainability strategy, which aims to
Moreover, we will enhance our sago starch extraction reduce reliance on fossil fuels and greenhouse gas
rate by optimizing our current processing technology, emissions, we recognize the potential of biogas for
to boost output volumes and lower production costs per internal energy consumption. Our management team
kilogram. Additionally, we intend to establish a biomass is committed to accelerating our renewable energy
power plant to increase our utilization of renewable initiatives, including the consideration of building a new
energy sources and decrease fuel expenses. biogas facility at either ANJA or KAL. This initiative will
not only help reduce our dependence on fossil fuels but
also mitigate the risk of potential shortages in the future.
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2023 Sustainability Report
Navigating Challenges to Forge Ahead in Production and Sales
(POJK51-B.1.a, POJK51-F.2)
In 2023, we expanded our total productive oil palm Despite challenges, our Fresh Fruit Bunches (FFB)
plantation area to 43,400 hectares, a 1,163 hectares production saw an increase of 4.8% to 881,051 tons in
increase from 2022. Including plasma and partnership 2023, with an average output of 20.3 tons per hectare.
schemes, our total planted area slightly decreased This growth was driven by additional newly mature
to 53,521 hectares due to the allocation of replanted declarations in plantations Southwest Papua and GSB, as
areas located within the riparian river boundary as well as the replanted areas in SMM and ANJA. Our yield
conservation areas in SMM and ANJA. Our focus on the enhancement projects, including increased compost use
replanting program at SMM and ANJA estates has been and pollination innovations, helped offset production
instrumental in maintaining a balanced palm oil age losses from replanting. Additionally, we employ the use
profile to support our output and future growth, with an of high-yield seeds in replanting areas to secure higher
average palm oil age of 13.0 years as of December 31, production outputs.
2023.
Table 06. Comparison of Actual Performance Against Target 2023 (POJK51-F.2)
Target 2023 Realization 2023 % of Achivement
Palm oil production (metric tons)
FFB production 917,017 881,051 96.1%
FFB purchase 568,492 503,811 88.6%
CPO production 310,657 283,659 91.3%
PK production 62,757 52,432 83.5%
PKO production 1,768 1,459 82.5%
Sago starch production (metric tons) 3,970 1,896 47.8%
Edamame production (metric tons)
Fresh edamame production 2,040 1,710 83.8%
Frozen edamame production 2,747 553 20.1%
Frozen mukimame production 94 201 213.8%
Renewable energy production (kWh) 9,113,211 10,219,453 112.1%
CPO sales (metric tons) 319,077 288,941 90.6%
PK sales (metric tons) 58,171 52,581 90.4%
Revenue (million USD) 258.1 236.5 91.6%
Gross profit (million USD) 48.9 31.6 64.6%
Income before tax (million USD) 15.3 9.6 62.5%
Net profit for the year (million USD) 4.2 1.9 45.5%
Apart from the objective to maintain mill utilization Overall, we recorded a 2.9% increase in CPO production
rates and support local farmers, we had to lower FFB up to 283,659 tons in 2023. During the year 2023, there
purchases from outside suppliers by 6.4%, with a total was a notable rise in sales volume, reaching 288,941
purchase of 503,811 tons in 2023. This was mainly due to tons, which represents an increase of 4.9% from the
road access restrictions at ANJA in Q1 2023 by the local sales volume recorded in 2022, which was 275,320 tons.
government, as well as fierce price competition from the Alongside the increase in sales volume, the revenue
newly emerging mills without plantations (“independent generated from CPO sales in 2023 amounted to an
mills”). The road access restriction was lifted in April impressive USD 211.9 million. Despite price fluctuations,
2023 and we have since resumed the external FFB we achieved an average selling price of USD 731 per ton
purchases as usual. in 2023. However, this figure remains lower than the USD
842 per ton in 2022.
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Sustainable Palm Oil Production in 2023 (In Tons)
[POJK51-B.1.D, POJK51-F.2, 13-23-3]
NUCLEUS
2023 2022 2021
tons tons tons
CPO 187,904 CPO 159,133 CPO 152,792
PK 31,939 PK 32,127 PK 32,772
PKO 1,459 PKO 1,052 PKO 1,080
PLASMA AND PARTNERSHIPS
2023 2022 2021
tons tons tons
CPO 13,307 CPO 20,939 CPO 9,818
PK 2,352 PK 1,975 PK 1,586
PKO 0 PKO 0 PKO 0
TOTAL SUSTAINABLE PRODUCT
2023 2022 2021
tons tons tons
CPO 201,212 CPO 180,072 CPO 162,610
PK 34,290 PK 34,102 PK 34,358
PKO 1,459 PKO 1,052 PKO 1,080
TOTAL PRODUCTION
2023 2022 2021
tons tons tons
CPO 283,659 CPO 275,769 CPO 262,683
PK 52,432 PK 55,011 PK 51,531
PKO 1,459 PKO 1,052 PKO 1,080
% SUSTAINABLE PRODUCT
2023 2022 2021
% % %
CPO 71% CPO 65% CPO 62%
PK 65% PK 62% PK 67%
PKO 100% PKO 100% PKO 100%
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In 2023, our production of Palm Kernel (PK) reached The edamame business continued to record another
52,432 tons, with a 4.4% decrease in sales volume to positive growth during the year. Production increased
52,581 tons, at an average selling price of USD 358 per to 2,860 tons in 2023, an increase of 12.9% compared to
ton. Additionally, our production of Crude Palm Kernel 2,533 tons in 2022. This was mainly due to the increase in
Oil (CPKO) from the Kernel Crushing Plant (KCP) in plantation area in 2023 of 531 hectares compared to 429
Southwest Papua increased to 1,459 tons, with sales of hectares in 2022. However, our edamame plantations
1,049 tons, generating USD 0.8 million in sales income at faced outbreaks of pests in the second half of 2023,
an average price of USD 734 per ton. Palm oil remained which was intensified by drought-like conditions in the
our core business, contributing USD 233.1 million, or third quarter, brought on by the El Niño. This resulted
98.6% of total revenue, in 2023, with a gross profit of USD in a frozen edamame production of 553 tons in 2023,
37.9 million and a profit before tax of USD 18.9 million. representing a total achievement of 20.1% compared
to our target of 2,747 tons. In response to this issue, we
In our sago segment, we focus on promoting cost decided to sell most of our product as fresh edamame
efficiency, which led us to scale down the mill operation and mukimame (peeled edamame) to minimize waste
to one shift per day in 2023. This resulted in a reduction and reject volume.
in total tual processed from 356,320 tuals in 2022 to
249,598 in 2023. In 2023, we achieved a production of In 2023, the Company booked a positive sales growth from
1,896 tons of sago starch, realizing 47.8% of our 3,970- the vegetable segment, largely from the sales of fresh
ton target with an average extraction rate of 7.6% per edamame and frozen mukimame, which increased by
tual. We saw an improvement in our extraction rate in the 3.0% and 73.1% from 2022, respectively. Fresh edamame
second half of 2023, increasing from 6.9% in July 2023 to sales volume increased to 1,703 tons, while mukimame
10.1% by December. We recorded our highest extraction sales volume increased by 111 tons to 192 tons in 2023.
rate of 11.3% in November 2023. This improvement was In contrast, sales volume from frozen edamame slipped
mainly due to the initiative of our estate team in changing 21.6% to 364 tons in 2023, compared to 464 tons in 2022,
the criteria on selecting sago trees to be harvested as mainly due to lower production volume due to pests. 2023
well as innovation in our mill to maximize the number saw a total revenue in the vegetable segment of USD 1.9
of tual processed. We posted a lower sales value from million, compared to USD 1.7 million in 2022.
our sago business in 2023, due to the unfavorable
sales volume variance along with a lower sago starch AANE’s electricity generation and sales rose from
production volume compared to 2022. In 2023, we sold a 9,899,429 kWh in 2022 to 10,219,453 kWh in 2023,
total of 1,585 tons of sago starch and focused on selling representing a positive variance of 12.1% from our
our product in the domestic market by expanding our budget of 9,113,211 kWh. This was largely attributable
customer base. Meanwhile, our selling price for sago to major maintenance in the second quarter of 2023
starch was relatively stable throughout the year with to maximize the utilization rate of the machines. The
average selling price of IDR 8,505 per kg at the end of service concession revenue remained stable at USD 0.6
2023. million in 2023, aligning with the fixed tariff of IDR 975/
kWh.
In 2023, our sago revenue totaled USD 0.9 million,
down from USD 1.6 million in 2022. This decrease was In 2023, the consolidated revenue stood at USD 236.5
mainly due to technical issues and efforts to minimize million, marking a 12.1% decrease from the USD
fuel consumption by reducing operational hours. Other 269.2 million reported in 2022. Additionally, the net
operational factors such as equipment maintenance, profit significantly dropped to USD 1.9 million from the
water quality for the production process and the use of previous year’s USD 21.2 million. The primary reasons
generators to enhance fuel efficiency also contributed for this downturn are attributed to lower average selling
to this loss. To overcome these challenges, we have prices for Crude Palm Oil (CPO), Palm Kernel (PK) and
decided to significantly reduce operations temporarily to Palm Kernel Oil (PKO). These declines in selling prices
address these issues. Our priority is to ensure that all were compounded by an increase in depreciation and
operational aspects are optimized to enhance efficiency interest expenses, which collectively exerted downward
and productivity, with the ultimate goal of reaching our pressure on the financial performance for the year.
production target. (POJK51-B.1.b, POJK51-B.1.c)
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Table 07. Direct Economic Value Generated and Distributed (USD) (POJK51-F.3, 201-1)
DESCRIPTION 2023 2022 2021
Economic Value Generated
Revenue 236,511,703 269,166,721 267,383,923
Dividend income 498,784 640,276 278,883
Other income 2,559,784 2,266,459 1,772,121
Finance income 308,523 471,473 613,586
Total Economic Value Generated (A) 239,878,794 272,544,928 270,048,513
Economic Value Distributed
Operating Costs 205,441,884 218,788,315 193,882,369
Employee Wages and Benefits 7,592,423 6,151,154 8,928,914
Payments to Shareholders 6,239,282 9,666,022 928,280
Payments to Creditors 9,651,484 4,949,142 4,488,131
Payments to Government 11,983,869 16,655,415 16,478,775
Community Investments 5,901,980 5,657,875 4,438,612
Total Economic Value Distributed (B) 246,810,922 261,867,923 229,145,080
Economic Value Retained (A-B) (6,932,128) 10,677,006 40,903,433
Total Environmental and Social Expenses in 2023 (in USD) (POJK51-F.3, POJK51-F.4)
Total Environmental Total Social Expenses Total Social and Environmental
Expenses (USD) (USD) Expenses (USD)
2023 2023 2023
1,344,322 720,033 2,064,356
2022 2022 2022
743,200 796,713 1,539,913
Complying to Defined Benefit Plan (201-3)
We have a post-employment benefit plan for all In 2023, we contributed a total of USD 0.1 million to the
permanent employees in compliance with Indonesian employee retirement plan managed by DPLK Manulife,
Labor Law requirements. The defined benefit plan is recognizing a post-employment benefits obligation of
managed through Dana Pensiun Lembaga Keuangan USD 13.7 million. To fully meet our post-employment
(DPLK) Manulife, an insurance company, with the benefits obligations, we rely on funds from our
Company contributing 100% of the benefits. Employee operational results and support from our equities, as
contributions nor their consent is not required the total obligation represents only 3.2% of our equities.
as participation is mandatory under government We did not receive any financial assistance from the
regulations. There is no minimum funding requirement government in 2023. [201-4]
under the arrangement with DPLK Manulife. The
Company engages Manulife solely to manage the fund to
fulfill post-employment obligations to employees.[201-3]
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UPHOLDING BEST PRACTICES IN SUPPLY CHAIN AND
TRACEABILITY (POJK51-B.1.E)
A truck collects and transports fresh fruit bunches (FFB)
from smallholder plantations to our mill, facilitating
efficient production chain.
Suppliers play a crucial role in our value chain and our goal and biodiversity. The opportunity to supply FFB may
of promoting prosperity in the areas where we operate. incentivize farmers to clear forests and establish palm
Within our palm oil business, we categorize suppliers oil plantations. Suppliers may also lack the technical
of oil palm fresh fruit bunches (FFB) into two groups: knowledge and capacity to implement sustainable palm oil
plasma smallholders and partnership smallholders practices. Furthermore, smallholder farmers, especially
(kemitraan) which fall under “scheme supplier” and independent ones, may lack legal titles to the land they
third-party suppliers, namely plantation companies, cultivate, with their land sometimes located in protected
and cooperatives which we call “independent supplier”. or forest areas where agricultural activities are illegal.
Over 4,100 farmers and agents are actively engaged in
our value chain, either independently through suppliers Given the significant social and environmental impacts of
or as part of a cooperative. Additionally, our vegetable FFB suppliers compared to other suppliers, we consider
business in Jember, East Java, directly collaborates the activities of FFB suppliers to be material in our
with 58 smallholder farmers who collectively cultivate operations. Currently, we source FFB from suppliers in
531 hectares of land to supply our business. In our sago our operations in North Sumatra (ANJA and ANJAS),
business in Southwest Papua, the natural sago forests West Kalimantan (KAL), and Belitung Island (SMM).
are traditionally owned by eight native family clans, who Our operations in Southwest Papua (PPM and PMP)
receive compensation for each sago log collected. are currently validating their plasma scheme with local
authorities. In 2023, an MoU related to this program
The involvement of smallholder suppliers presents was signed by all stakeholders, and the establishment
significant long-term economic opportunities for them. process has since commenced. The plasma agreement
In the case of perennial crops like palm oil, which have was signed by all parties in January 2024 which marked
a lifecycle of over 25 years, business relationships with the fulfilment of our plasma obligation in Southwest
fresh fruit bunch (FFB) suppliers can be enduring, lasting Papua estates.
decades. Our mills and factories regularly purchase
crops from smallholders at fair prices, contributing Ensuring a stable supply of FFB from these suppliers is
to increased income and reduced poverty in the areas a priority for us to support our business growth in our
where we operate. This, in turn, indirectly stimulates communities while minimizing the potential negative
local economic growth and creates job opportunities. impacts of their activities. Recognizing the critical
importance of maintaining the entire value chain, we
However, we acknowledge that the operations of our have implemented programs to empower smallholders
FFB suppliers can have detrimental effects on forests and established a traceability system.
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EMPOWERING THE COMMUNITY THROUGH PLASMA
PROGRAM IN SOUTHWEST PAPUA
FEATURE STORY
uodipis adigendae exerrum quassim voluptat ut voluptiorit fuga. Ut
simi, adi aut a ne siminvel into iminctum repedi ditaeped magnimo
ptae nulpa cores
Our staff engaged with local communities around our
concession area in Southwest Papua to raise awareness
of the plasma program.
Palm oil has long played a pivotal role in agricultural value chain. This strategy not only
Indonesia’s economic landscape. However, with creates employment opportunities but also
this growth came environmental and social fosters entrepreneurship and enhances skill
challenges. ANJ recognized the need to balance development among community members.
economic development with responsible land The program’s inception was initially guided
use and community empowerment, thus the by regulations requiring land allocation (20%
birth of ANJ’s plasma program in Southwest of total land) to the community as part of the
Papua under PMP and PPM in 2023. HGU (Hak Guna Usaha/Right to Cultivate)
acquisition process. ANJ has transformed this
This program exemplifies an advanced integration obligation into a pioneering partnership model,
of sustainable agriculture with community encouraging former hunters and gatherers to
empowerment, highlighted by a strong become integral parts of the palm oil business
commitment to environmental stewardship and ecosystem. Despite the high operational costs
local economic development. due to Papua’s challenging natural conditions,
infrastructure and human resources, ANJ
Under this model, the program partners with has shown resilience and commitment. The
local farmers and cooperatives, granting partnership includes two corporations and
them access to a financing scheme from the two cooperatives, where members, primarily
company. Such an arrangement ensures that CPCL (Calon Petani, Calon Lahan/Plantation
the plasma plantation land remains owned by Implementers), are supported through
the plasma cooperatives, while still benefiting infrastructure development, seedling provision,
from the company’s financial support. By taking training, and interest-free loans with a grace
this approach, the Company is empowering period of a maximum 11 years. The model
individuals to become active participants in the demonstrates a balance between regulatory
52 PT Austindo Nusantara Jaya Tbk.
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2023 Sustainability Report
compliance and mutual concessions, ensuring both Regency Government in Southwest Papua expresses
parties gain reciprocal advantages and undertake its appreciation to ANJ for its strong commitment to
shared risks, even if these benefits materialize over a running the palm oil plasma program in our region.
more extended timeframe. This program is a meaningful initiative, not only in
enhancing sustainable palm oil production but also in
The initiative’s backbone is its declared commitment helping improve the local community’s welfare. ANJ
to allocate 1,618 hectares for the plasma program, also provides training, guidance, and access to the
a strategic move to involve various stakeholders, latest technology for palm oil farmers, enabling them
including local governments of South Sorong and an to increase productivity and the quality of their harvests.
adjacent district, in a unified effort towards sustainable This, in turn, has opened new economic opportunities and
development. The plasma program includes government- strengthened the economic resilience of the community
regulated schemes, partnerships with communities amidst existing challenges. We hope this initiative can
wanting to become MMS (Mitra Masyarakat Sekitar/ continue to grow and inspire other companies to invest
Surrounding Community) partners, and independent in community and environmental development in South
suppliers, presenting a multifaceted approach to Sorong Regency, Southwest Papua.”
community engagement and empowerment.
As the program moves forward, it faces ongoing
Building partnerships in Papua faces significant challenges, including the local community’s inclination
challenges, including the high costs and complex towards immediate gratification, a trait rooted in their
logistics. Nonetheless, ANJ remains dedicated, hunting and gathering culture. This stands in contrast
impacting 268 households in PPM (spanning 32 clans to the nature of palm oil cultivation, which requires a
across three villages, covering over 715 hectares) and 94 long-term investment perspective and offers returns
households in PMP (across 17 clans and three villages, over an extended timeline. Despite such complexity, the
covering over 902 hectares). The plasma program has foundation laid by ANJ’s plasma program in Southwest
not only provided economic benefits but also facilitated Papua offers promising prospects for sustainable
access to healthcare and education - essential services agricultural practices, economic empowerment and
that underpin the growth and development of the community resilience.
community.
This initiative stands as evidence of ANJ’s dedication to
The plasma cooperatives are also being allocated achieving inclusive growth and sustainable development,
an allowance of IDR 720,000 per hectare per year to setting a best practice in investing in community and
encourage members to focus exclusively on palm environmental development in South Sorong and beyond.
oil cultivation, and not divert their efforts into other
ventures. Furthermore, the allowance is integrated into
the financing strategy to motivate farmers fostering
patience and perseverance while they anticipate the
results of their business. Through this, the program
hopes to bolster the palm oil sector’s productivity and, in
the end, sustainability.
In terms of social impact, the palm oil plasma
program has strengthened a sense of ownership
and empowerment among community members. By
involving locals in decision-making processes and
prioritizing their needs and aspirations, companies have
forged strong partnerships based on mutual respect
and collaboration. This has not only strengthened social
cohesion but has also instilled a sense of pride and
belonging within communities.
The initiative has been well-received and acknowledged
by the South Sorong Regency of Southwest Papua
government as a positive example of collaboration.
Assistant II for Economic & Development Affairs,
Mr. Johan Hendrik Kokorule, SE, from the South
Sorong Regency Government, said “The South Sorong Mr. Johan Hendrik Kokorule, SE, Assistant II for
Economic & Development Affairs, South Sorong Regency,
Southwest Papua.
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Advancing Effective Approaches in Our programs aim to assist smallholders in enhancing
Smallholder Empowerment Program their productivity and crop quality, which will benefit
our business. Simultaneously, these efforts help avoid
We mandate that our FFB suppliers meet rigorous potential environmental and social issues, which are
technical, financial, administrative and legal criteria crucial for sustainable development. Through our
to ensure sourcing does not occur from forest areas. programs, we are confident that all our FFB suppliers,
Additionally, suppliers must adhere to environmental, including independent smallholders, will be able to
social, health and safety and quality standards outlined comply with our sustainable palm oil policy by 2030.
in our Sustainability Policy and commit to our code of We collaborate with government authorities to support
conduct by signing an Integrity Pledge. Both existing independent smallholders in clarifying or resolving their
and potential suppliers undergo thorough screening land legality issues, aiming to assist them in complying
processes, with regular evaluations conducted for with future land legality enforcement by the government
existing suppliers. Moreover, the performance of and requirements set by our buyers.
significant FFB suppliers is benchmarked against the
standards and commitments of the RSPO and our In January 2023, KAL signed an MoU with USAID
Sustainability Policy. Notably, in 2023, no new or current SEGAR to support independent farmers within KAL’s
suppliers were terminated due to failure to comply with supply chain in Ketapang, West Kalimantan, through
social and environmental obligations. However, during certification activities to meet sustainability standards,
the same period, we acknowledge that several suppliers improving capacity, and developing farmer institutions.
encountered challenges in meeting these standards. USAID SEGAR is a collaborative initiative between The
Consequently, we provided close supervision and actively United States Agency for International Development
advocated for their improvement to ensure they meet the (USAID) and the National Development Planning
required criteria. [308-1, 308-2, 414-1, 414-2] Agency (Bappenas) of the Republic of Indonesia. This
program is specifically designed to support Indonesia’s
We recognize that our stringent sustainability criteria ambitious development goals. It focuses on creating a
and standards may be challenging for our smallholder harmonious balance between conserving the country’s
suppliers to meet without assistance. Therefore, we rich biodiversity and promoting sustainable practices
are committed to not enforcing compliance abruptly in land use. Simultaneously, USAID SEGAR aims to
or applying a “no purchase” policy without considering integrate these environmental efforts with strategies
the potentially severe impact on their livelihoods. that ensure economic growth and development of
However, this does not mean we will compromise on inclusive livelihoods for its people. This partnership
our standards when purchasing from them. Instead, our will be implemented in the villages of Laman Satong,
approach is to provide capacity-building programs for Kuala Satong, Kuala Tolak, Matan Hilir Utara District,
farmers, encouraging them to adopt best practices in and Simpang Toga Sambelangaan Village, Nanga Tayap
agronomy, and sustainable agriculture principles, and District, Ketapang Regency.(13-23-4)
meet traceability standards. We also assist independent
smallholders in formalizing the legality of their land Furthermore, we have a certification program where we
use and obtaining the necessary certificates of land encourage our suppliers to obtain RSPO certification by
ownership from authorities. [13-22-1][13-23-4] meeting RSPO standards in their plantations. Our target
is to achieve 100% RSPO Certification of our plasma
Our smallholder engagement programs are managed by and partnership cooperatives (excluding independent
various departments within our organization, including smallholders) by 2025. While we saw 75% progress last
the Business Process and Business Development- year, 2023 marks the completion of our plasma RSPO
Smallholders Department, the Plasma and Cooperatives certification project in Belitung Island, meaning that
Department, the Commercial Department, the 86% of our 14 plasma and smallholder cooperatives
Sustainability Compliance Department and the ICT and with which ANJ works are now RSPO certified. This
GIS Department. Additionally, we have a cross-functional certification ensures full traceability by guaranteeing
task force that coordinates and manages supplier that there is no mixing with external Fresh Fruit Bunches
engagement activities to meet our targets. In 2023, we (FFB). Under this accomplishment, we processed
conducted 33 socialization programs attended by 479 946,932 tons of RSPO certified FFB, accounting for 69%
smallholder farmers and related stakeholders. Despite of our overall FFB processed volume. This attainment
a decrease in the number of meetups compared to last highlights the cooperatives’ commitment to maintaining
year, we have implemented a more efficient socialization the purity and traceability of their produce, setting a
program by organizing larger group meetings instead of benchmark for sustainable and responsible agricultural
individual sessions. This approach enables us to reach a practices. In addition, suppliers that have obtained RSPO
greater number of farmers effectively. Furthermore, we certification may obtain premiums from sustainable FFB,
invited farmers to join social media groups we developed a testament to the value placed on sustainable farming
called “BESTARI” to provide regular knowledge, support practices. These premiums are then redistributed
and educational information. All of these efforts are to farmers, ensuring that the benefits of sustainable
implemented to achieve our goal so at least 90% of all cultivation are shared across the community. In 2023,
our smallholders adopt sustainable palm oil practices by 8 out of 14 suppliers, representing 57%, were able to
2025. secure a premium price for their products. This scheme
highlights ANJ’s commitment to incentivizing sustainable
farming practices. (13-23-3, 13-23-4)
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2023 Sustainability Report
JOURNEY TOWARD SUSTAINABLE HARVESTS:
USAID & KAL SPEARHEADING PALM OIL SMALLHOLDER
EMPOWERMENT IN INDONESIA
FEATURE STORY
USAID SEGAR team, KAL Resident Director Jerileva Purba and KAL
conservation team, starting a collaboration to promote responsible
agricultural practices.
The collaboration between USAID Sustainable The palm oil industry has often been at the
Environmental Governance Across Regions center of debates around environmental
(SEGAR) and PT Kayung Agro Lestari (KAL) marks sustainability, with concerns ranging from
a pivotal moment in the empowerment of palm oil deforestation to loss of biodiversity. However,
smallholders in Indonesia. USAID SEGAR, a joint palm oil remains a vital economic commodity
effort by The United States Agency for International for Indonesia, contributing significantly to the
Development (USAID) and Indonesia’s National national economy and the livelihoods of millions
Development Planning Agency (Bappenas), of smallholder farmers. The partnership
aims to bolster Indonesia’s development goals. between USAID SEGAR and KAL is a forward-
The initiative seeks to strike a balance between looking approach aimed at reconciling economic
biodiversity conservation and sustainable land development with environmental sustainability.
use, while also integrating economic growth and By focusing on the certification of independent
inclusive livelihood development strategies. smallholders to meet sustainability standards,
this collaboration is setting a precedent for
This important partnership, formalized through a how companies and development agencies
memorandum of understanding (MOU) signed on can work together to achieve mutual goals of
January 25, 2023, at the Ketapang Regent’s Hall, economic empowerment and environmental
is a testament to the concerted efforts being made conservation.
towards sustainable agricultural practices in the
palm oil sector in the region. With the backing of The strategic implementation of the program
the Ketapang District Government, this initiative targets specific locations namely Laman
is not just about improving the sustainability Satong Village, Kuala Satong Village and Kuala
credentials of KAL’s supply chain but also about Tolak Village in Matan Hilir Utara Subdistrict, as
enhancing the livelihoods and environmental well as Simpang Tiga Sembelangaan Village in
stewardship of independent smallholders in Nanga Tayap Subdistrict. These areas are pivotal
Ketapang, West Kalimantan.
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in KAL’s supply chain and are representative of the stability. For KAL and other stakeholders
broader challenges and opportunities faced by in the palm oil supply chain, working with
smallholders in the region. The initiative aims to certified smallholders helps to ensure a
provide these farmers with the tools, knowledge, sustainable and traceable supply of palm oil,
and support needed to improve their agricultural which is increasingly demanded by consumers
practices, enhance yields, and meet sustainability worldwide.
standards such as Indonesian Sustainable Palm
FEATURE STORY
Oil (ISPO) certification. Moreover, the environmental benefits of
this initiative are significant. Sustainable
To ensure smooth execution of this program, agricultural practices help in the conservation
USAID SEGAR has brought on board the Ketapang of critical ecosystems, reduce the carbon
Development Partner (Mitra Pembangunan footprint of palm oil production, and ensure
Ketapang/MPK) as the implementing partner. the preservation of biodiversity. By integrating
Their responsibilities include facilitating program environmental, social and governance (ESG)
socializations, managing the administrative principles into their operations, companies like
aspects of the Cultivation Registration Certificate KAL are taking a proactive stance in mitigating
(Surat Tanda Daftar Budidaya/STDB) and the environmental impacts of their business
orchestrating the formation of the palm oil activities.
farmers’ association, the Asosiasi Kelompok
Petani Sawit Harapan Matan Bersama (AKSHMB). The local government’s support, as
demonstrated by the presence and
As of the end of 2023, fifty-two farmers have endorsement of the Vice Regent of Ketapang,
submitted their proposal for STDB certificates, H. Farhan, SE, M.Si, during the MoU signing
which are undergoing the validation process by ceremony, underscores the importance of
the local government, entering a key phase in the collaborative efforts in achieving sustainable
pilot project. development goals (SDGs). The program aims
to create a model of integration, synergy and
Next steps, they will be embarking on a detailed collaboration among governmental agencies
ISPO certification journey, clustered into two and institutions, NGOs and the private
primary phases: sector. Such a holistic approach is essential
for addressing the complex challenges of
Firstly, they will build a robust foundation for sustainable development in the palm oil sector.
their groups through comprehensive training,
education, and technical support. This stage The partnership between USAID SEGAR and
focuses on instilling sustainability principles, KAL represents a significant step forward in the
imparting best agricultural practices, ensuring journey towards sustainable palm oil production
legal compliance, and enhancing management in Indonesia. By focusing on the empowerment
and organizational skills. of independent smallholders, this program not
only aims to improve the sustainability of the
Secondly, the certification assessment phase palm oil supply chain but also enhances the
begins, aiming to verify the group’s adherence socio-economic well-being of farmers and their
to the ISPO standards. This involves a sequence communities. Through strategic collaboration,
of steps: an internal audit to review practices, community engagement and a commitment
a proposal for certification audit to assess to environmental stewardship, this initiative
readiness, the actual certification audit to evaluate is paving the way for a more sustainable and
compliance and any necessary corrective actions equitable palm oil industry. As the program
derived from these audits. Upon successfully unfolds, it will serve as a benchmark for
navigating these stages, the farmer groups will similar initiatives globally, demonstrating the
earn their designation as ISPO-certified farmers. power of partnership in achieving sustainable
development.
The potential economic benefits of this program
are multifaceted. For smallholders, achieving
certification can open new markets, improve
crop quality and yield, and increase income
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Pioneering Progress to Improve A worker scanning the EPMS (Electronic Plantation Mobile Solution)
card using application developed by our internal programmer team.
Plantation Traceability
We are dedicated to maintaining full supply chain traceability encompasses the entire process in the fields, from land
to the plantation level, aligning with RSPO requirements and farmer selection, land preparation, planting, plant
and our Sustainability Policy. Our traceability efforts aim maintenance, harvesting, to shipping. Recently, SIGAP has
to establish a reliable system for acquiring, processing and been expanded to include factory processes, from receiving
transparently publishing data, thereby fostering trust among harvests, sorting, blanching, to IQF (Individual Quick
our supply chain stakeholders. By the end of 2025, we aim Freezing) processes, as well as sanitation (in locker areas).
to achieve over 99 percent traceability of third-party FFB. Going forward, SIGAP will be developed to cover up to the
Currently, we have successfully achieved a 100% traceability packaging and delivery of the final product.
rate for Fresh Fruit Bunches (FFB) supplied by third parties.
Despite this success, we are not complacent and continue The use of this technology enables the GMIT team to more
to carry out assessments for ongoing improvement. Our easily establish partnerships with farmers and ensures a
commitment extends to improving the quality of the data in strong traceability system to monitor the quality and safety
our system, safeguarding against various risks, including of the produced products. [13-22-1, 13-23-1]
the possibility of fraud and data manipulation of FFB, which
not only undermines the integrity of supply chains but Overall, our stakeholders, including farmers, agents and
also poses significant risks to the company’s commitment suppliers, actively participate in our traceability program
to environmental stewardship and ethical practices. and corporate sourcing policy through various official and
(13-23-1, 13-23-2) informal socialization events. This community engagement
ensures they understand the importance of providing
As part of our digital transformation program, we developed reliable traceability data. We invest heavily in engaging
an electronic traceability system, eTIS, to enable real-time with our FFB supply chain at all levels, although these
recording and data entry. This system assists our third-party activities are challenging due to the dispersed nature of
FFB vendors to collect, report, and troubleshoot traceability our independent suppliers across our operations, often in
data. In 2022, we successfully deployed the eTIS system in areas with limited access. Hence, we see an opportunity to
all our palm oil operations and by 2023 all FFB suppliers leverage information technology and social media to more
had adopted the system. The eTIS system is expected to efficiently engage with smallholder farmers.
help suppliers complete administrative paperwork for
traceability, which is a key challenge in achieving 100% Management receives traceability rate reports once every
traceability in some regions. month and supplier engagement achievement reports every
three months. Furthermore, our traceability data undergoes
Another milestone in our digital transformation is the annual internal audits and external audits every two years
initiation of SIGAP (Sistem Informasi GMIT untuk Agrikultura as part of the RSPO certification system. These regular
dan Pabrik), specifically designed to support agricultural reports offer management insight into any issues, ensuring
operations and the processing of frozen edamame or okra, they are addressed promptly as soon as any urgency arises.
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UPHOLDING HIGHEST COMMITMENTS
TO CUSTOMER EXCELLENCE
While our core business focuses on palm oil, we also
produce and market consumer products, namely
edamame and sago. Within this context, ANJ holds a
steadfast commitment to its customers, ensuring that
every aspect of its product and service delivery upholds the
highest standards of quality and integrity. This dedication
is rooted in several key areas, as outlined below:
1. Commitment to Providing Equivalent Service
for Products to Costumers: ANJ pledges to offer
consistent and equitable services across its product
and service range. This commitment ensures that
all customers receive the same level of quality and
attention, reaffirming ANJ’s dedication to fairness
and customers’ satisfaction. (POJK51-F.17)
2. Products Evaluated for Customer Safety: A cornerstone
of ANJ’s customer commitment is the assurance
that all products have been rigorously evaluated for
safety and health standards. This evaluation process
guarantees that ANJ only markets products proven
to be safe, thereby protecting costumers’ well-being
and fostering trust in the ANJ brand. Additionally,
ANJ discloses important information related to the
products we sell including nutritional facts, potential
allergens, and disclaimers regarding the non-use of
preservatives and colorant agents. This transparency
allows customers to make informed decisions,
highlighting ANJ's dedication to honesty and ethical
business practices. (POJK51-F.27, POJK51-F.28)
3. Number of Products Recalled: In the interest
of transparency, ANJ reports that no products
were recalled in the year 2023. This achievement
underscores ANJ’s commitment to quality control
and product reliability, further building customers’
confidence in the ANJ brand. (POJK51-F.29)
4. Customer Satisfaction Survey: ANJ regularly
conducts customer satisfaction surveys to gather
feedback and insights directly from its customers.
These surveys are a critical tool for continuous
improvement, allowing ANJ to align its products more
closely with customers’ needs and preferences. In
the 2023 surveys, we observed that customers raised
no complaints about ANJ products. (POJK51-F.30)
Through these commitments, ANJ demonstrates its
unwavering dedication to not only meeting but exceeding
customers’ expectations. This approach not only fosters
a strong relationship with customers but also positions
ANJ as a responsible and trustworthy brand in the
Our laboratory staff doing quality testing of
marketplace. CPO sample produced by our palm oil mill.
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FOSTERING COMMUNITY PROSPERITY
AND WELL-BEING (POJK51-B.3, POJK51-F.23, POJK51-F.25)
Central to our approach is the establishment of local
partnerships and opportunities that amplify the
positive impacts of our economic activities. We believe
that inclusive growth is essential, ensuring that local
AT THE HEART OF OUR communities are not left behind in the pursuit of
economic progress.
MISSION LIES A STEADFAST
COMMITMENT TO ENSURING Our efforts to enhance community well-being encompass
a range of initiatives, including health, education and
THAT EVERY INDIVIDUAL socio-economic empowerment programs, as well as
WITHIN THE COMMUNITIES infrastructure development and support for social,
cultural, and religious projects. Most of our programs are
NEIGHBORING OUR led and executed directly by our employee as part of our
OPERATIONS HAS EQUITABLE Responsible Development program. Local governments
and community groups, such as farmers and artisans,
ACCESS TO OPPORTUNITIES are actively engaged in these programs, ensuring their
FOR PROSPERITY. ALIGNED relevance and effectiveness within the community. We
have ensured the full implementation of community
WITH THE UNITED NATIONS development and engagement initiatives across every
SUSTAINABLE DEVELOPMENT one of our operational sites, achieving a comprehensive
reach and impact. (413-1)
GOALS (SDGS), OUR
RESPONSIBLE DEVELOPMENT Recognizing that the presence of a modern corporation
in remote areas can catalyze socio-economic change,
AGENDA PLACES A STRONG we are mindful of the potential negative consequences
EMPHASIS ON FOSTERING that such changes may bring, including the risk of
marginalizing communities lacking the skills and
ECONOMIC OPPORTUNITIES technical expertise needed to thrive in a modern
AS A CORNERSTONE FOR economy. To address this, we place a strong emphasis
on local community empowerment programs, aiming to
SUSTAINABLE GROWTH AND equip individuals with the necessary tools and knowledge
COMMUNITY WELL-BEING." to participate meaningfully in economic activities and
benefit from growth opportunities. (203-2)
Our businesses have always been designed to stimulate
economic growth in rural and impoverished areas
across our operating region, particularly in Southwest
Papua, which has one of the lowest Human Development
Indexes in the country according to Statistics Indonesia.
We achieve this by creating economic opportunities
for contractors, local enterprises, cooperatives and
individuals, including the provision of goods and services
to our organization and employees. Additionally, our
operations create direct employment opportunities
throughout our supply and distribution chains, further
contributing to local economic development.
We are deeply committed to enhancing the well-being
of the communities we serve. Recognizing the limited
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Our resident doctor and medical staff regularly conduct medical
examination for employees.
access to essential services in remote areas, we are and bridges, to increase accessibility for local residents.
dedicated to establishing a network of seven main clinics We also improved community access to clean water by
and five minor support clinics. These facilities, managed installing water pumps, which also benefit local hygiene
by qualified medical professionals, including doctors, and sanitation. Additionally, we also help to build public
nurses and midwives, are integrated into the National facilities such as village offices to facilitate improved
Health Insurance (Jaminan Kesehatan Nasional/JKN) communication within the community.
network and are equipped with blood lab facilities.
This advancement has improved our capacity to deliver ANJ’s social innovation programs play a crucial role in the
comprehensive healthcare services to our People. context of the PROPER award in Indonesia, demonstrating
(203-2) the Company’s efforts to go beyond mere compliance
with environmental regulations. These programs
Access to education is also a matter of concern, thus showcase a commitment to sustainable practices and
becoming a key focus for ANJ, as it is a fundamental community engagement, reflecting ANJ’s proactive
right of the people and a cornerstone for community approach to environmental and social responsibility, as
development. We have established various initiatives in well as maintaining positive stakeholder relationships.
this aspect, including the construction and maintenance In this context, KAL and ANJAS have both achieved the
of schools, the provision of educational materials and Green PROPER awards consecutively in 2022 and 2023.
resources, and support for teacher training programs. Equally gratifying, SMM sustained the Gold PROPER
By investing in education, we aim to empower individuals awards for the last four consecutive years, while ANJA
and communities, enabling them to break the cycle for three consecutive years - setting a high standard
of poverty and contribute to overall socio-economic for the industry as being the only palm oil company in
development. Through these efforts, we strive to make Indonesia to have received such achievement.
a meaningful contribution and lasting impact on the
lives of those living in remote and underserved areas in Certainly, our dedication to community development
proximity to our operations. shows our support for creating lasting positive impacts
that extends beyond mere economic prosperity.
ANJ recognizes the vital role of infrastructure in
supporting our community-based initiatives. Throughout
2023, we have contributed to the construction of roads
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Table 08. Significant Infrastructure and Services Investments (203-1)
Item Location Description Impact
Infrastructure
Construction of lean concrete roads in
Simangambat and Huristak District, encompassing
the area around Binanga, North Sumatra,
consisting of a 62 km-long road project with
Road an investment of IDR 8.54 billion. The road
Enhancing accessibility, facilitating
Construction construction commenced in 2013 and is ongoing.
economic activities, and benefiting
(Pro bono)
ANJA local communities in the villages of
In 2023, there were an additional 566 meters of
Simangambat and Huristak (49,100
Road Repair road construction for the Simangambat-Bragas
people).
(Commercial) roads (turning dirt road into an asphalt road), with
a total investment of IDR 1.5 billion. Additionally,
road repair for an existing road in Simangambat
and Huristak were also completed, amounting to
IDR 139 million, covering 25 km of roads.
Construction of a 4x6 meters H-Beam Bridge on
Simangambat to Bragas Cross Road was carried The bridge serves as the main access
out in 2023 with an investment value of to facilitate the economic activities of
Construction of
IDR 250 million. (ANJA) the community, such as transporting
H-Beam Bridge ANJA, ANJAS
In addition, ANJ conducted the construction of 10 goods and services or agricultural
(Commercial)
and 9 meters of H-beam bridges in Somel and products to Padang Sidempuan and
Gua Asom areas with a total investment of IDR 474 ANJAS for palm fruit delivery.
million
Installation of a 17-meter gabion in Janji Matogu,
with a total investment of IDR 469 million, began in Improving transportation access,
Gabion or 2022 and continued to 2023. facilitating economic activities, and
Bronjong easing the transportation of palm fruit
ANJAS
Installation A 6-meter sediment transport facility near Janji bunches (FFB) and other necessities
(Commercial) Matogu, with a total investment of IDR 58.5 million, from Janji Matogu to Padang
also began in 2022 and completed by 2023. Sidempuan.
The casting of concrete roads in Janji Matogu, 215
meters long with a total investment of IDR 860
million started in 2022 and continued throughout
2023.
Improve access for local communities
Concrete Casting
ANJAS and transport of palm fruit to
(Commercial) In 2023, a concrete road casting was carried out
factories.
over 325 meters from the Industrial Plantation
Forest (HTI) to the Gua Asom with an investment
value of IDR 1.1 billion.
Establishment
Construction of the Laman Satong Village Office Improving public facilities and
of Laman Satong
KAL was carried out in 2023 with an investment value providing venues for community
Village Office
of IDR 100 million. activities.
(In-Kind)
Field Drainage
Repairs of the 605-meter embankment at Lorong Water management and avoiding
and Maintenance
ANJAS 4, Janji Matogu Village, with an investment value of flood-prone areas in the surrounding
of Durian River
IDR 85.5 million. communities.
(Pro bono)
Construction and maintenance of bridges and
The building and
roads, waterway access, and laterite roads with
maintenance
culverts of the Durian River, Kuala Satong Village,
of bridges,
were carried out with a total investment of IDR
waterway Improving access for local
KAL 285.1 million, and the Cuti Parit Road in Satong-
access and communities and avoiding flooding.
Manjau amounted to IDR 19.1 million.
laterite roads
with culverts Also in 2023, repairs to Marsela Road in Kepayang
(Pro bono) Hamlet, Laman Satong Village, were undertaken
with an investment value of IDR 215 million.
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Item Location Description Impact
Improving access for people and
Road Laterization and road elevation in 2023 in PPM
economic activity in the surrounding
Construction PPM, PMP amounted to IDR 30 million and PMP IDR 25
vicinity, which was previously
(In-Kind) million.
inaccessible.
Procurement of clean water sources through
Construction of Providing clean water access to
the construction of boreholes and wells for Kais
Boreholes and PPM communities to enhance sanitation
Village and Suse Village, Kais District, each with 2
Wells (In-Kind) and hygiene.
units, with a total investment of IDR 40 million.
Bridge Construction of a bridge to connect the community Providing better mobility for the Saga
Construction ANJAP road in Kawarisi, with a total investment of IDR 120 community, enhancing human activity
(In-Kind) million, spanning 18.6 meters. and the local economy.
Services
In 2023, the PAUD Program in Sumano, Benawa
Providing access to education to
Early Childhood and Puragi Villages provided teacher training,
local communities. Preparing and
Education PMP curriculum development and learning support
developing non-local and local
(PAUD) activities with a total investment of
teachers with the skills to teach.
IDR 325 million.
Improving the local economy. This
Provide the easiest and safest way for our access to financial
employees and local communities to save and services empowers people to improve
Cooperative &
transfer money. This service started in 2019. the management of family finances.
Convenience PPM, PMP
The convenience store provides
Store
In 2023, PPM opened another branch store inside a people with necessities and is very
Housing Compound. helpful due to the limited accessibility
of the plantation to outside shops.
Advocate Kelompok Tani Peduli Api, smallholder
farmer fire-fighting groups that run a fire Local communities are actively
Firefighting prevention and management initiative. In 2023, a involved in fire prevention and
KAL, ANJAS
group similar program has been expanded to ANJAS – management.
involving 3 groups in KAL with 45 members and 1
group in ANJAS with 15 people.
Provision of health services in Sumano, Benawa I
started in 2016.
Provide health services to both
In 2023, PPM inaugurated a Primary Clinic
Health Clinics PMP, PPM employees and local communities
providing various health services including
serving 4 villages.
general practitioner consultations, routine health
check-ups, health services and preventive health
programs.
Note:
1. Commercial infrastructure engagements are investments made primarily for the Company’s business operations.
2. In-kind contributions are non-cash contributions of goods or services.
3. Pro bono services are professional services provided without payment.
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The floating rice fields are a collaborative
innovation between the SMM team and local
farmers in East Belitung
Committing to Transformative Community SMM also advocates community-based freshwater
Development [203-2] aquaculture, benefiting 36 members of the Mina Jaya
Pokdakan, Aik Kik Apau Pokdakan and Ala Mamy
Socio-economic empowerment MSME Group. Supported by the East Belitung Fisheries
Service, the program assists with aquaculture activities,
Our Belitung subsidiary, SMM, has been at the forefront and water quality monitoring and provides training in
of innovation in agriculture, particularly with the fish product processing and packaging. Participants
introduction of floating rice fields using the jajar legowo have been trained in freshwater fish farming and the
planting technique. This technique, which involves use of eco-enzymes for pond water filtration. A total of
separating each row of planted rice with empty rows to 6,307.2 kg of catfish and 816.6 kg of tilapia were sold in
boost yields, has been groundbreaking for local farmers, 2023, increasing the farmers’ income substantially. The
allowing them to utilize previously marginal land due to farmers also enhanced their skills by cultivating fish
flooding. Additionally, this program also introduced light fingerlings themselves, eliminating the need to purchase
solar traps to combat insect pests and Eco-enzymes as them. To maximize land use, members of the community
an alternative organic and eco-friendly fertilizer. group also cultivate green vegetables and coconuts
around the ponds, further promoting food security in the
The program continued in 2023, drawing special area.
attention and support from the East Belitung Regency.
Starting as a trial project in Balok Village in 2020, it Overall, this program, which is called “Koalisi Pemenang",
has now expanded to include Jangkang and Dendang has played a significant role in helping communities in
Villages. This success has motivated farmer groups to East Belitung access basic commodities more affordably,
adopt a “Mina Padi” system, an agricultural practice that especially considering the high prices of essentials
combines rice farming with fish farming. The farmers in the region. More importantly, the local people of
opted to cultivate tilapia fish, and in its second year, they Belitung traditionally work as tin miners and pepper
have successfully raised as many as 1,200 tilapias. To farmers rather than in agriculture. Thus, this program
maximize land productivity, cassava is planted along the has provided them with the opportunity to cultivate
rice raft border, producing an additional food source for their food and produce, including vegetables and staple
the farmers. The 27 farmers involved in this program crops, and diversify employment opportunities. This
have produced a total of 565.1 kg of vegetables, 340.3 initiative brings tangible benefits to the local community
kg of chili, and 900 kg of rice, which is a significant by enhancing food self-sufficiency and reducing
achievement in improving the community’s economy. dependency on external sources for sustenance. In
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addition to increasing community income, this program availability and reducing food disparities, especially
also assists in preventing stunting in Jangkang Village, among vulnerable groups like elderly women and widows.
Dendang District. The project focuses on the cultivation of broiler chickens
and catfish as well as the production of alternative feed
Based on the most recent assessment by an independent to support farming. A total of 21 individuals from two
assessor, the ‘Koalisi Pemenang’ program has achieved farming groups have participated in this project since its
a Social Return on Investment (SROI) value of 2.74. This establishment in 2020.
means that for every IDR 1 invested, there is a benefit
or impact value of IDR 2.74. The study also indicates Overall, the project has successfully utilized
that the SROI value per year from 2020 to 2023 is unproductive land covering 0.8 hectares. More than 700
steadily increasing. This growth is attributed to the chickens and 1,430 catfish were sold from the harvest
expansion of the program’s reach through replication of in September 2023 alone. This program has improved
best practices in other areas, as well as the enhanced the food security of the community by providing catfish
productivity of freshwater fish cultivation and price- and chicken for Huta Baru Village and Tobing Jae Village,
stable crop cultivation by the community groups. Despite as well as enhancing the welfare and capacity of the
a decrease in program investment value, the increase in communities in these villages to adapt to climate change
SROI value can be sustained as the Company gradually for sustainable living. This initiative also stands as a
reduces interventions to promote the self-reliance of the pioneering effort in community empowerment, being
community. the first to install environmentally friendly solar cells
for power generation and to produce alternative feed
SMM also initiated the “Gerbang Emas” program, from palm shoot materials. Moreover, this program also
focusing on cultivating edamame in East Belitung, which implements the concept of zero waste, where chicken
has also seen rapid development since its inception. manure is processed into compost and used for small-
Research on the land conducted since 2019 has increased scale corn cultivation. A total of two tons of chicken
plant capacity in 2023. There has been an expansion of manure has been turned into compost and applied to
planting areas in the Subur Jaya Farmer Group by 0.15 plants. The corn produced is then used as raw material
hectares, the Pelita Bumi Raya Farmer Group by 0.10 for alternative fish and chicken feed. Additionally, this
hectares in Balok Village, and the Tuah Berkarya Farmer program also successfully managed fishpond wastewater
Group by 0.06 hectares. A total of 3,210 kg of edamame to be reused as fishpond water using the Recirculating
has been produced within the “Gerbang Emas” program. Aquaculture System (RAS) method with water filters.
The program also provides innovation in alternative By the end of 2023, the total volume of recycled catfish
cattle feed by utilizing the remaining stems and leaves pond wastewater reached 230.4 m3. Exercising a holistic
of edamame. approach in its design, the program achieved an SROI of
2.16. This means that for each IDR 1 investment, there
ANJA, located in Binanga, North Sumatra, continues to is a benefit or impact value of IDR 2.16, leading us to
expand its “Tani Mandiri” program. In 2021, the focus receive the Gold PROPER award for ANJA.
was on successfully reducing rat pest attacks. In 2022,
the program introduced an innovative, emission-free In ANJAS, a horticultural product development program
irrigation system called the siphon pump and waterwheel was conducted for the Labalasiak Female Farmer Group.
to meet water needs. This program continued throughout ANJAS provides technical assistance to group members
2023 and brought benefits to 26 participating farmers. involved in horticultural product development. To date,
Previously, farmers could only plant once a year, but with various crops such as pumpkins, cucumbers, chili
the novel irrigation system, they can now plant up to three peppers, long beans, and tomatoes have been produced
times a year. The system also replaces the need for fuel and marketed through the “Poken Market” located
water pumps, which were previously used to drain water. within the Company area. This program has empowered
Farmers participating in the program receive training in 18 individuals in the Labalasiak Kawani group and
composting using straw waste and bacteria from POME continues to strive in attempts to improve the welfare
(Palm Oil Mill Effluent) as a starter. This compost can of the local community. In efforts to enhance social
help reduce the use of chemical fertilizers, promoting innovation, the Company has built composting houses
ecologically responsible rice production. ANJA currently to create an organic compost stock from plant residues
supports two farming groups, one of which is led by after harvests.
women.
KAL, our West Kalimantan operation, has implemented
Further to this program, we deployed a pilot project an economic development program in the Kuala Tolak
called “Petani Berintegritas” (Pengembangan Ternak Ikan Village. The initiative includes beekeeping in Sungai
Berintegrasi dengan Unggas or Fish Farming Integrated Jahak hamlet and pineapple cultivation in Timor Celang
with Poultry Farming) aimed at predicting future food Parit hamlet. While most individuals have started
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raising honeybees for personal honey consumption, by providing educational support through enhancing
KAL supports the formation and expansion of farming the education system (Sekolah Luar) and facilitating
community groups, including donating additional STUM market access for farming produce, as well as
(bee hives), to enhance kelulut honey (stingless bee empowering independent smallholders, promoting
honey) production outcomes. The Company also assists conservation efforts, and assisting smallholders in
the farmers in obtaining business licenses as well as obtaining licenses and certifications. Additionally, MPK
expanding market access. We facilitated the registration played a crucial role in advocating for licensing for
of the group’s Taxpayer Identification Number (NPWP), independent smallholders, ensuring their legal rights
Business Identification Number (NIB) and home industry and participation in the program were legalised. Each
license (PIRT). With proper licensing, honey sales can of these efforts complements one another, working
access the domestic market. Additionally, alongside towards uplifting nearby communities from “Desa
selling fresh pineapple, the group collaborates with the Mandiri” to “Desa Mapan” status and showcasing socially
village community welfare group (PKK Desa) to produce and economically sustainable villages as role models
pineapple products such as jam and snacks, boosting for others to emulate, fostering a culture of sustainable
sales values and economic income for the community. development and community empowerment.
In the Timor Celang Parit hamlet, 700 pineapple Another ongoing program is the development of milkfish
seedlings were planted on over 0.5 hectare as part of farming. This program functions as an aquaculture
pineapple farming activities. The pineapple cultivation system with technology that combines fisheries with
project was carried out by the Kuala Tolak Village KTPA mangrove planting, following a management system
(farmer firefighting group), utilizing unproductive and that minimizes inputs and reduces environmental
fire-prone lands near KAL’s operating site. impact. In 2023, the procurement of 50,000 milkfish
eggs was conducted for milkfish cultivation, managed
This economic development program is instrumental by two farmer groups with 18 members. Apart from the
in transitioning the community’s livelihood away from milkfish cultivation group, five other individuals outside
slash-and-burn farming practices. By advocating safe the program have also started milkfish cultivation using
and sustainable agriculture techniques, the program the silvofishery system. The Company involves the
empowers the community to be self-sustaining in Ketapang Regency Food Security and Fisheries Service
sourcing their food. This shift not only improves food in technical training for fishery cultivation, including
security but also reduces the environmental degradation pond preparation, water pH regulation, seed preparation,
caused by slash-and-burn methods. Through education and harvesting. Local communities are also trained in
and sustainable practices, the program creates a more making easy and inexpensive alternative feed to reduce
resilient community, capable of thriving without relying the cost of buying feed while maximizing production.
on harmful agricultural practices.
In 2023, PMP in Southwest Papua launched the “PEKA”
KAL remains committed to investing in the Desa Fokus (Karekano Economic Empowerment) program, designed
(Focus Village) program, a local government initiative to empower women to sell shrimp and fish that they
aimed at enhancing village development. Since its typically catch for daily consumption. Under this
launch in 2020, villages like Kuala Satong, Laman initiative, the women collaborate to collect and sell their
Satong, and Kuala Tolak have seen improvements in catch to employees and the Company. This program has
their overall Village Development Index scores, including engaged 18 women, resulting in a total average monthly
the Social and Environmental Resilience Index. This yield of 200 kg of shrimp. A total of 33 local community
collaborative effort involves Ketapang Regency, KAL, members act as suppliers in distributing the produce
Mitra Pembangunan Ketapang (MPK) and Tropenbos to the Company’s catering need and employees. PMP
Indonesia, who signed a partnership agreement in 2022. actively supports and monitors the program to enhance
The partnership aims to enhance knowledge and develop and achieve its economic growth objectives. The program
integrated village development models, empowering has shown significant progress, with local suppliers
communities and improving market access through earning around IDR 11 million per month. Currently,
cooperatives. there is an increasing demand for fresh shrimp, and
shrimp farming activities have been planned to meet
In 2023, the program continued with various key market needs in the future. This program provides
initiatives. Tropenbos remained dedicated to improving women with the opportunity to earn income from their
rice and orange farming through “field schools”, offering existing daily activities.
valuable technical training on farming practices to
enhance productivity. Meanwhile, Ketapang Regency In 2023, broiler chicken farming commenced at PMP to
continued its vital role in supervising and facilitating help improve the economic welfare of the community.
the program’s implementation. KAL actively contributed Two individuals from Giamarema Preparation Village in
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Two mamas chatting while cooking at "Warung Mama" in PPM.
Metamani District and three individuals from Sumano At ANJAP in Southwest Papua, “Warung Mama” continued
Village in Kais District have felt the impact of the to provide economic opportunities for women, addressing
program through increases in income of between IDR 2 the limited avenues for them to boost their family
to 3.5 million. By the end of 2023, more than 800 broiler income. The program supports local women (mamas)
chickens were sold and distributed to both the Company’s from Saga Village, Metamani District, South Sorong
cooperative and the surrounding community. Both the Regency, by offering training to prepare sago-based
Company and the local community are consistently dishes for sale. ANJAP also trained the mamas in basic
monitoring and evaluating the program, which includes financial management for small businesses. Since 2019,
assessing feed availability, reducing chick mortality rates, 11 members from Saga and Puragi Village, Metamani
and adapting to weather conditions. Another notable District, have participated in this program. This initiative
achievement is the group’s ability to effectively manage not only empowers women but also promotes locally
the farm, leading to long-term business independence. produced sago as a versatile, nutritious food source.
Each member earns income from selling various dishes
In GMIT where our estate focuses on edamame like sago cendol ice, sago-based chicken noodles, pandan
crops, the “Kampung Edamame” (Edamame Village) cakes, donuts and banana rolls, with potential earnings
community-based program saw a 47% increase in sales of up to IDR 2 million per month. In 2023, Warung Mama
in 2023 from 2022 values, through investment in new earned to a gross revenue of IDR 196 million.
machines with a larger capacity to support production.
This program empowers the community around the Additionally, the mamas are learning farming skills
Company to process edamame into innovative products through hydroponic gardens, and growing vegetables
with added value. There has also been an expansion for consumption and sale. This initiative aims to develop
into other products with the launch of crispy okra. The these fresh vegetables into locally processed products
Kampung Edamame’s products have obtained licensing for the market.
and HALAL certification from MUI. Another expansion
in the implementation of this program is cooperation Warung Mama is very popular among the local community
with new millennial farmers who will become pioneers and ANJAP employees. Due to its success, a similar
and stakeholders in the development of the Kampung scheme has been replicated in PPM.
Edamame.
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PINEAPPLE CULTIVATION PROGRAM IN KETAPANG,
WEST KALIMANTAN: A BREAKTHROUGH IN REDUCING
RISKS OF FOREST FIRE
FEATURE STORY
Three farmers from the pineapple cultivation program
initiated by KAL, addressing deforestation and land burning
and promoting sustainable agriculture.
The Pineapple Cultivation Program initiated by of local communities. The traditional method
PT Kayung Agro Lestari (KAL), ANJ’s subsidiary, of slash-and-burn agriculture, where land is
represents a transformative approach to addressing cleared and burned for farming, is among the
some of the most pressing environmental leading causes of these environmental crises.
challenges faced by forested regions: deforestation It results in a vicious cycle of soil degradation,
and wildfires. This program leverages pineapple decreased agricultural productivity, and
farming as a strategic intervention to combat the increased vulnerability to fires.
detrimental effects of slash-and-burn practices,
which have long been a primary driver of forest In this context, the Pineapple Cultivation
fires and deforestation in vulnerable areas. By Program emerges as a beacon of innovation.
introducing a sustainable agricultural alternative, By focusing on pineapple—a crop well-suited to
ANJ is pioneering a path toward environmental the peatland conditions characteristic of areas
conservation and community prosperity. at high risk of fires—ANJ offers a compelling
alternative to slash-and-burn farming.
Deforestation and forest fires have been a
recurring issue, significantly contributing to global The selection of pineapple as the crop of
warming and loss of biodiversity. This not only choice is strategic. Pineapples thrive in
threatens the ecological balance but also poses peatland conditions, where the climate and
severe risks to the health and economic stability soil composition are ideally suited for their
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cultivation. This compatibility makes pineapple comprehensive support for 15 participating farmers.
an excellent commodity for development in areas This support encompasses training in product
prone to forest fires, offering a viable agricultural processing, specifically in making pineapple syrup
alternative that discourages the practice of slash- and jam, as well as future plans for producing
and-burn farming—a primary cause of such fires. pineapple chips. Additionally, the initiative offers
guidance in packaging and agronomy skills,
Culturally, pineapples also hold significant value emphasizing sustainable farming practices that
FEATURE STORY
in local cuisine, making them a vital ingredient in align with environmental protection goals.
the culinary traditions of the region. This cultural
relevance, coupled with the agricultural suitability The initiative has been met with positive
of pineapples, presents a unique opportunity to feedback from the community, appreciating not
align economic incentives with environmental only the economic benefits but also the adoption
conservation efforts. of safe farming practices. The significance of
the program is echoed in the words of a local
Spanning over 5,000 square meters of land, planted farmer Nurhadi, who serves as the Chairman of
with 700 pineapple seedlings, the project includes Kelompok Tani Peduli Api (KTPA):
AS A MEMBER OF KTPA, I HAVE WITNESSED A
TRANSFORMATIVE CHANGE. THE INITIATIVE TO TURN FIRE-
PRONE LAND INTO FLOURISHING PINEAPPLE FARMS HAS
NOT ONLY REVITALIZED OUR ENVIRONMENT BUT ALSO OUR
ECONOMY. IT HAS EMPOWERED US, ESPECIALLY THE WOMEN
IN OUR VILLAGE, PROVIDING BOTH KNOWLEDGE AND A
SUSTAINABLE MEANS TO IMPROVE OUR LIVELIHOODS.”
The pineapple cultivation program is not just
about growing pineapples; it is also about
enriching the soil, reducing fire hazards, and
creating an economic pathway that aligns
with environmental conservation goals. More
importantly, it is about sowing the seeds of
hope, empowerment and sustainability.
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Education Program Specifically in KAL, West Kalimantan, we execute
the “School Development Program” that has notably
Due to inadequate learning and teaching facilities, enhanced the quality of education by addressing both
the quality of education in rural and remote areas of infrastructure and content aspects. This initiative
Indonesia often lags behind that of metropolitan cities. encompasses improvements in physical school
To address this disparity, we have focused on providing conditions, including the construction of sanitation
access to quality education for local community facilities and the provision of chairs, tables and other
children, particularly in Southwest Papua, as part of our essential equipment. Additionally, efforts have been
contribution to SDG 4 (Quality Education), specifically made to boost the capacity of teachers and students
aiming to achieve inclusive, equitable and excellent through various programs such as “inspirational class”
education for all. for digital transformation and “shining class” to promote
tidiness and cleanliness among students. Overall, 32
Since 2018, we have partnered with the Alirena Foundation teachers have participated in various training sessions,
to support Early Childhood Education (PAUD) programs along with the delivery of 14 sessions of inspirational
in Sumano and Benawa, located in Southwest Papua. In classes.
the latter half of 2022, we assumed full responsibility for
organizing these programs. Since taking over, we have At ANJAS, North Sumatra, the School Improvement
not only continued these efforts but also expanded the Program at SMPN 4 South Angkola has been a key
initiative to encompass elementary schools. Moreover, in initiative. With 71.85% of students at SMPN 4 South
2023, we have extended our reach to include the villages Angkola being children of ANJAS employees, we have
of Puragi and Tawanggire as new areas benefiting from implemented various intervention programs to enhance
our educational programs. the school’s quality. One crucial aspect is establishing
road access from the plantation to the school to ensure
In 2023, the Company also recruited and provided housing easy travel for students. Additionally, we have provided
and basic needs for four local primary teachers and eight essential facilities like desks, chairs, whiteboards, and
local assistant teachers. Furthermore, we constructed toilets to improve the learning environment. ANJAS
and renovated spaces for early childhood schools in has also supported the school committee’s formation,
Sumano, Benawa and Puragi to ensure students have organized workshops for school program planning, and
a clean and safe environment for studying and playing. provided teaching assistance for the teachers.
Additionally, PAUD teachers provide supplementary
reading, writing and arithmetic support to elementary By focusing on both infrastructure and content, including
school students who are still illiterate. Since its inception, educational materials, curriculum, and teaching
the program has brought positive impacts to more than methods, we strive to create an optimal learning
270 students. environment for all.
PAUD (Early Childhood Education) graduation in Benawa 1 village,
Southwest Papua, reflecting a commitment to the enhancement of
education in the area
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ENHANCING QUALITY OF LIFE THROUGH EDUCATION
FEATURE STORY
Our team engages with students from our target schools to support
and empower future generations, fostering learning and nurturing
growth for tomorrow's leaders.
In today’s interconnected world, education The educational landscape in Ketapang has
stands as the bedrock of human development long faced hurdles related to inadequate
and societal progress. It is the key that unlocks infrastructure, which hampers the delivery of
doors to opportunity and drives positive change. quality education. Classrooms often lack basic
ANJ has undertaken a thorough journey of social necessities, such as proper seating and learning
responsibility by making education a core pillar materials, which are critical for creating an
of its commitment to empower communities environment conducive to learning. Moreover,
where it operates. sanitation facilities in many schools are either
non-existent or in dire conditions, posing health
ANJ’s unwavering commitment to community risks and affecting students’ school attendance
empowerment through education reflects its and overall learning experience.
profound belief in the transformative potential
of knowledge. The Company recognizes that KAL’s School Development Program specifically
education is not merely a tool for individual targets these issues by investing in the physical
advancement but a catalyst for broader societal refurbishment of schools. This includes the
development. construction of new sanitation facilities that
meet health and safety standards, ensuring
In Ketapang Regency, West Kalimantan, a region that students have access to clean and safe
grappling with educational challenges such as restrooms. Additionally, the program has
limited resources and infrastructure, PT Kayung supplied essential furniture such as chairs
Agro Lestari (KAL), a subsidiary of ANJ, has and tables, directly impacting the learning
launched a transformative “School Development environment by making it more comfortable
Program.” This program is a testament to ANJ’s and conducive to student engagement.
commitment to bolstering education quality,
reflecting a holistic approach that encompasses Beyond infrastructure, the program also
both tangible infrastructure improvements and places a significant emphasis on enhancing
substantive educational content enhancements. the educational experience through capacity
building for teachers and students. Recognizing
the importance of digital literacy in today’s
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Students of The "shining class"
or Kelas Bersinar SMPN 03
Manjau Matan Hilir Utara
world, KAL has introduced the “inspirational class” or education delivery and administrative efficiency. Now
Kelas Inspirasi, aimed at equipping both educators and we can report educational data to Ketapang Educational
learners with the skills needed for digital transformation. Office with ease and timely manner. The school even
This initiative is crucial for preparing students for the able to administer our own UNBK (National Exam)
future, enabling them to navigate and succeed in a independently without using neighboring schools’
digitally-driven world. facilities”, said Aisyah, a 3rd Grade Teacher at SMPN 03
Manjau Matan Hilir Utara.
The “shining class” or Kelas Bersinar initiative is another
innovative aspect of the program, designed to instill “What we found interesting is the change in the
values of tidiness and cleanliness among students. This classroom atmosphere which was initially dirty but has
effort not only contributes to a more organized learning now become cleaner, more comfortable, and beautiful.
environment but also fosters personal responsibility and My child also brings the habits to home, he becomes a
hygiene practices among students, which are essential very tidy kid and always mindful about cleanliness. I am
life skills. really happy with this habitual change.“,said Nurhadi ,
parent of Tria, Grade 9.
To date, the School Development Program has seen the
active participation of 32 teachers in various training KAL’s investment in Ketapang’s education sector through
sessions, enhancing their pedagogical skills and capacity the School Development Program is a clear indicator
to deliver quality education. Furthermore, 14 sessions of of ANJ’s broader community development strategy.
inspirational classes have been conducted, benefiting By addressing both the physical and content-related
numerous students by broadening their horizons and needs of schools, KAL is not only improving the current
preparing them for the challenges of the digital age. state of education but is also laying the groundwork for
sustainable development in the region. This initiative
The effectiveness of this program is highlighted by one demonstrates ANJ’s commitment to contributing
of the teachers as well as student’s parents, recognizing positively to the communities in which it operates, with
its positive impact. a particular focus on empowering future generations
through education. ANJ’s pioneering spirit continues to
“KAL’s support for SMPN 03 Manjau, especially through inspire and drive positive change, proving that education
providing internet signal boosters, has enhanced both is the key to a brighter future for all.
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PLANET
Addressing Climate Change: Impacts, Risks, and Our
76
Response
Green Metrics on Our Emission and Energy
81
Consumption
Commiting to Sustainable Practices in Waste
92
Management
Committing to the Safeguarding of Forest and
98
Biodiversity
Prioritizing Responsible Water Management 114
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Two conservation staff members are
conducting biodiversity data collection in our
conservation area.
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AGRIBUSINESS OPERATIONS
CAN SUBSTANTIALLY ALTER
NATURAL LANDSCAPES,
CONSUME SIGNIFICANT
QUANTITIES OF NATURAL
RESOURCES AND EMIT HIGH
LEVELS OF GREENHOUSE
GASES. THESE FACTORS
RESULT IN NEGATIVE IMPACTS
ON BIODIVERSITY AND THE
ENVIRONMENT AND CAN
THREATEN THE STABILITY
OF THE EARTH’S NATURAL
SYSTEMS. TO MITIGATE
THESE RISKS AND REDUCE
NEGATIVE EFFECTS WHILE
AIMING FOR POSITIVE
OUTCOMES, IT IS ESSENTIAL
TO ADOPT BEST PRACTICES IN Our company is committed to conserving the environment,
especially in areas classified as High Carbon Stock and
ENVIRONMENTAL PROTECTION High Conservation Value (HCS/HCV), by implementing
AND CONSERVATION AND sustainable practices. RSPO membership requires strict
adherence to the organization’s Principles and Criteria
AGRICULTURE. " (P&C, 2018) and New Planting Procedures (NPP), both of
which were originally released in November 2015.
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HCS areas in our concession in Southwest Papua.
In our Company-wide Sustainability Policy, we have established the following high-level commitments:
• Responsible development of new areas incorporating an integrated landscape approach.
• Total protection and conservation of independently identified High Conservation Value-High Carbon
Stock (HCV-HCS) forests.
• Zero land clearing for oil palm in independently identified HCV and HCS areas, following RSPO
protocols. Development of identified HCS areas pertaining to legacy cases will strictly follow RSPO’s
requirements.
• No new development in peat areas of any depth, and conservation of peatlands/wetlands.
• Commitment to reducing greenhouse gas emissions.
• Zero Land Burning.
• Taking precautions when developing on fragile soils, slopes and waterways (including river basins).
Our suppliers face similar risks and impacts on the environment and biodiversity, so we expect the same
commitment from them. We engage extensively with our suppliers and independent farmers, raising
their environmental awareness and providing them with the necessary tools to meet our environmental
standards and commitments. Their performance reflects ours, so we prioritize engagement to ensure
sustainability throughout our supply chain.
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The border between the conservation area and the palm oil landscape is
maintained to uphold our commitment to responsible development.
ADDRESSING CLIMATE CHANGE: degradation, potentially diminishing productivity by
as much as 20% in certain soil types, like sandy and
IMPACTS, RISKS AND OUR RESPONSE
marginal lands.
[201-2] 2. Pollination Disruption and Workers Productivity:
Altered behaviors in insect pollinators can significantly
Acknowledging the profound and escalating impact of
impact the natural pollination process, potentially
climate change, we are committed to a path that not
reducing production by up to 10% in terms of average
only addresses the immediate effects on our workforce,
fruit bunch (FFB) weight and a corresponding 10%
ecosystems, and communities but also fortifies our
drop in total production yield. In addition, the heat
business against future vulnerabilities. Embracing
stress will impact the productivity of our plantation
business models that prioritize carbon emission
workers as much as 70% due to higher temperature.
reduction is pivotal in our strategy, resonating with
3. Drought and Wildfire Impact: The 2015 and 2019
our commitment to the global effort to mitigate global
droughts, coupled with increased wildfire risks,
warming.
markedly reduced crop yields—by over 20%—
highlighting the severe implications of prolonged dry
spells.
Understanding Physical Risks 4. Rainfall Intensity and Flooding: Escalated rainfall
and flooding episodes impair transport logistics
The advent of climate change introduces a spectrum of during crucial harvest periods, potentially curtailing
physical risks to our agribusiness, underscored by an production by up to 10%.
increase in temperatures and the frequency of extreme 5. Pollution Aggravated by Drier Conditions: The impact
weather events. These variations significantly influence of pollution intensified by drier conditions, specifically
our agricultural outputs and operational efficiencies. For concerning particulate matters can lead to significant
instance: health problems for workers and result in losses in
1. Soil Moisture and Productivity: Enhanced evaporation productivity.
rates lead to notable water scarcity and soil
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BOOSTING PALM OIL YIELDS WITH HATCH
AND CARRY POLLINATION SYSTEM
FEATURE STORY
A worker is checking a collection sack in the box pollination system, an
innovation designed to increase the productivity of oil palm plants in an
environmentally friendly way.
ANJ’s businesses are inherently susceptible a concerning impact on oil palm production, in
to the impacts of climate change, from large part due to a significant reduction in natural
changing temperatures to intensified pollinators, resulting in a low FFB yield.
weather events, and more extreme
fluctuations between seasonal climatic Pollination is the process by which pollen
conditions. Unfortunately, we have reached grains from the ‘male’ elements of a plant
a point where the reversal of climate change are transferred to the ‘female’ elements. This
is no longer feasible, and the mitigation of can happen in many ways, but, in palm oil, it is
climate-related risk is increasingly difficult. mostly carried out by a specific species of weevil,
Therefore, ANJ’s approach is to adapt to Elaeidobius kamerunicus, commonly referred to
change through developing resilient and as EK. The weevil is attracted to the smell of the
sustainable systems which can withstand a pollen on which it feeds and then distributes as
future of unpredictable and variable climate, part of a natural pollination process.
while minimizing negative contributions to
the forces driving climate change. ANJ’s research and development team have long
worked with various means of assisted pollination,
Over the past three years, ANJ’s palm oil meaning that we introduce systems to support
business has dealt with a series of unfavorable or replicate natural pollination. Many of these
weather events, ranging from intense rainfall methods are very time-consuming and require
during the La Niña event of 2021-2022, to significant labor input. This year, we integrated a
the drought-like conditions of the ongoing new system into our existing pollination schemes
El Niño. Such extremes of weather, and the – the ‘hatch and carry pollination system’. The
dramatic contrast between the two, have had system is currently in place at ANJA, ANJAS,
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SMM and KAL, with SMM and ANJA taking the While still in its infancy, our research and
lead with the most advanced application of the development team are very optimistic about the
FEATURE STORY
system. As we learn more about hatch and potential of hatch and carry for increasing yields
carry, we plan to introduce the system at all of in a sustainable and climate-safe way. Our
our estates. assisted pollination schemes have already been
very successful at our estates in SMM and ANJA
First trialed in palm oil estates over a decade and we hope to continue this upward trend.
ago, hatch and carry works by allowing the
larvae of the EK weevil to hatch in an enclosed ANJ’s commitment to our core values,
box, that is protected from environmental particularly those embedded in sustainable
threats to ensure an optimal survival rate, and practice and responsible development is central
releasing them on targeted crop areas. The to our ability to retain support from our people
initial stages of the hatch and carry system through difficult times. Developing adaptive
resemble those of the box pollination system, measures to climate change, such as the hatch
which ANJ has used before. Male flowers from and carry system that promote natural processes
the palm tree, where the EK weevils have laid and reduce ANJ’s contribution to carbon
their eggs, are collected and then inserted into emissions, is part and parcel of our mission. We
the hatching box. The eggs are left for three days hope that advocating our responsible approach
to allow the weevils to hatch. The weevils are can set a precedent for other actors in our
then sprayed with high-potency pollen. In the industry and support a shift toward supporting a
box pollination system, this is the point at which better future for generations to come.
the box would be opened to allow the weevils to
fly away and naturally find the palm flowers to
pollinate. However, the hatch and carry system
is a more targeted approach, that brings the
weevils directly to the flower to increase the rate
of successful pollination.
Once hatched, the EK weevils fly into an
enclosed chamber within the hatching box. This
chamber either takes the form of a bottle or
collection sack. Once the weevils have entered
the chamber, they are removed from the
hatching box and brought directly to targeted
crop areas. Here, the weevils are released to
carry the high-potency pollen to the flowers, for
pollination. Studies have proven this method to
be very effective, showing increases in weevil
populations of over 20% per hectare and FFB
production by more than 5% within the first two
months.
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Navigating Regulatory and Transitional
Risks
The evolving regulatory landscape and consumer
expectations around carbon footprint and sustainability
practices spotlight the urgency of transitioning towards
more resilient and adaptable business models. This
encompasses:
• Rigorous disclosure of climate-related data, including
GHG emissions, which showed a 83.8% reduction in
2023 compared to our 2015 baseline, highlighting our
progress towards a lower carbon footprint.
• Water conservation measures that resulted in a 20%
decrease in water use intensity across our operations
since 2018.
• Active participation in environmental platforms like
the CDP and SPOTT, reflecting our enhanced ESG
reporting and transparency.
• Adoption of renewable energy solutions, reducing
our dependence on fossil fuels by 17.8% in the past
five years, with ongoing projects poised to further
decrease this reliance by an additional 20% by 2025.
Moving Toward ESG Objectives through
Strategic Assessment and Integration
(POJK51-E.3)
Annually, we assess each risk and opportunity, integrating of USD 1,850 per hectare, this method substantially
these insights into our business strategy to meet our diminishes operational expenses by over 55% and
ESG goals. The Board of Directors, led by our Chief ensures sustained crop growth, proving especially
Operating Officer, oversees the mitigation of transitional beneficial during extended drought periods.
risks, acknowledging the financial stakes climate
change poses. We proactively address these challenges Assisted Pollination: By bolstering the population of
through agribusiness innovations and research, aiming pollinators and providing mechanical assistance in
for operational and economic efficiencies. pollination processes, especially in areas with diminished
natural pollinator populations, we have successfully
Our strategic endeavors in agribusiness innovation increased the weight of fruit bunches and enhanced
and research are pivotal in addressing climate change fruit set development. This initiative underscores our
impacts and enhancing operational efficiency. Here is a commitment to maintaining ecosystem balance and
detailed look at these initiatives: improving production efficiency.
Composting: Leveraging microbes to transform empty Wildfire Prevention: To safeguard our concessions from
fruit bunches into organic fertilizers, our composting external wildfires, we have implemented fire prevention
initiative necessitates an investment of USD 3.5 million measures, including the construction of closed canal
for each operational site. This significant investment systems and water reservoirs that act as protective
pays dividends by reducing the reliance on chemical barriers. Additionally, enhancing our rapid response
fertilizers, enhancing soil moisture, and revitalizing soil capabilities ensures we are well-prepared to address
structure. Notably, in regions like Belitung, this initiative potential wildfires swiftly, minimizing their impact on our
has led to a notable increase in yield for young mature operations and the surrounding environment.
palms and a reduction in chemical fertilizer usage by
over 50%, effectively lowering greenhouse gas (GHG) These initiatives are central to our strategic priorities and
emissions from fertilizer application. (POJK51-F.5) operational ethos. As such, every investment undergoes
a thorough evaluation of its financial implications and
Drip Fertigation: Implementing a small-scale pipeline a detailed life cycle cost-benefit analysis. This rigorous
network allows precise distribution of water and assessment process is embedded in our annual strategic
fertilizers directly to each palm tree. With an investment planning and budgeting activities, ensuring that our
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commitments not only align with our sustainability goals Electrostatic Precipitator (ESP) in our boiler systems
but also contribute to our long-term financial health and is a proactive strategy. By installing ESPs, we aim to
operational efficiency. Through this approach, we aim to significantly reduce the amount of particulate matter
optimize our resource allocation and enhance the overall emitted during the combustion processes in our
impact of our sustainability initiatives, reaffirming our boilers. This not only helps in complying with stricter
dedication to environmental stewardship and responsible environmental regulations but also plays a crucial
business practices. role in safeguarding the health of our workforce and
the surrounding communities by ensuring cleaner air
In addition, to mitigate the environmental and health quality. Thus, the ESP serves as a critical component in
impacts of particulate matter (PM) emissions, which our efforts to adapt to and mitigate the effects of climate
are exacerbated by increasingly drier conditions linked change on our operations.
to changing climate landscapes, the introduction of an
Table 09: Physical Risks and Financial Implications due to Climate Change
Likelihood of
Financial Management
Physical Risks Timeframe Cost of Actions Occurance and
Implications Methods
Magnitude of Impact
Higher soil USD 12.5 million
USD 3.5 million L: High
moisture 2 years to USD 50 million Composting
per site location M: High
evaporation per year
USD 8 million to
Behaviour of the USD 100 L: High
1 year USD 20 million per Assisted Pollination
insect pollinators thousand per site M: Medium
year
Composting
USD 10 million to USD 3.5 million per site
Intense drought Drip Fertigation L: High
2 years USD 20 million USD 1,850 per hectare
and wildfire Integrated Fire M: High
per year USD 4.5 million per site
Mitigation
USD 8 million to
Intense rain and Water Management USD 2.5 million L: Medium
1 year USD 20 million per
frequent floods & Road maintenance per annum M: Medium
year
Pollution leading
to health issues Between USD 1-2 Electrostatic L: High
1 year USD 1.5 million per site
that impact million per year Precipitator M: Medium
workers
Strengthening Our Foundations for practices and responsible development approach include
protecting, restoring, and managing ecosystems through
Climate Resilience(POJK51-E.5)
conservation and biodiversity protection efforts.
Our strategy to effectively address climate change is
Thirdly, ANJ emphasizes responsible practice
built on five core approaches. Firstly, our goal is to
throughout our value chain, ensuring that our suppliers,
significantly lower emissions from our operations by
primarily smallholders, meet our strict sustainability
the year 2030. This involves a targeted 30% reduction
standards. We offer programs to enhance their skills and
in intensity for Scope 1 and Scope 2 emissions, using
capacity, and support them in achieving RSPO and ISPO
the 2015 baseline as a point of reference and is a direct
certification.
reflection of ANJ’s commitment to its ESG ambitions. This
involves increasing our use of renewable energy sources,
Our fourth strategy involves adapting to and mitigating
reducing reliance on fossil fuels, and transitioning from
climate impacts through investments in agronomic
inorganic to organic fertilizers. We also plan to implement
innovation, like composting and drip fertigation, which
methane capture activities to reduce emissions from our
enhance our resilience to environmental challenges and
palm oil mill effluents (POME). (POJK51-F.5, 201-2)
support the sustainable growth of our business.
Secondly, we utilize Nature-Based Solutions (NBS),
Finally, we are committed to and participate in governance
which leverage natural processes and features to address
and transparency practices to report our sustainability
socio-environmental issues by reducing greenhouse
and climate change performance through platforms
gas emissions, mitigating climate change impacts, and
such as CDP, GRI and SPOTT. Through engaging with
promoting sustainable development. Our agronomic
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A Worker spraying POME onto empty fruit bunches to
produce compost
the reporting process involved in these disclosure and we indirectly contribute to greenhouse gas emissions
transparency requirements, we are better equipped to through the operations of our supplier plantations, the
evaluate the efficacy of our sustainability governance travel of our staff and the transportation of raw materials,
and programs and proactively implement any necessary fertilizers and agricultural products. However, we have
improvements. not yet conducted any calculations regarding the use of
energy sourced from outside of the company. (302-2)
We believe that we have a strong grasp of our climate risk
and have shown that we implement various mitigation Conversely, our operations offer the potential for
and adaptation measures. Nonetheless, in 2024, we plan reductions in global emissions. Through our conservation
to conduct a formal Climate Change Risk Assessment. and reforestation initiatives, we enhance carbon
This assessment, supported by external experts, will sequestration in our regions. Our oil palms also play a
review the global and regional state of knowledge on vital role in absorbing and storing a considerable volume
climate change and evaluate our readiness in terms of of greenhouse gases. Moreover, the methane released
the measures we implement on the ground, identifying from our palm oil mill effluents (POME), a byproduct of
any potential improvements or gaps, if any. our palm oil extraction processes, can be harnessed to
produce renewable energy through biogas generation.
GREEN METRICS ON OUR EMISSION Embedded within our Sustainability and Environmental
Policies is a commitment to minimize emissions
AND ENERGY CONSUMPTION
and energy consumption. This commitment involves
enhancing the efficiency of fertilizer use and shifting
In our business sector, greenhouse gas emissions
towards organic alternatives, expanding our reliance on
primarily arise from management practices on our
renewable energy sources, decreasing our dependency
plantations, extraction and processing operations in our
on fossil fuels, and capturing methane emissions from
mills or factories, and land use preparation. Additionally,
palm oil mill effluents (POME) to be repurposed as
we rely on electricity from the national grid, which is
biofuel.
predominantly generated using fossil fuels. Moreover,
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Our objective is to reach Net Zero emissions by 2030, by across all our operations and offices. However, emissions
reducing the greenhouse gas (GHG) emissions intensity from pesticides are not accounted for in the PalmGHG
of our palm oil production by 30% by 2030, from the calculator. To estimate our Land Use Change (LUC)
baseline values collected in 2015. We have also set emissions, we also rely on the PalmGHG calculator,
ambitious targets to boost our renewable energy usage using data from our land conversion activities. We have
to exceed 60% and to cut our fossil fuel dependence by established 2015, the first year we implemented the
20% by 2025, underlining our dedication to environmental PalmGHG calculator, as our baseline year for tracking
stewardship and sustainable operations. progress. Additionally, we adjust the data obtained from
the PalmGHG calculator to align with the GHG Protocol
GHG Emissions Performance Corporate Standard for reporting our Group’s overall
emissions. These measurements are regularly audited by
(POJK51-B.2.b, POJK51-F.11)
independent parties as part of our compliance with RSPO
and ISPO regulations, and the International Sustainability
Our greenhouse gas (GHG) emissions are calculated
& Carbon Certification (ISCC) for SMM. For the usage of
from entities under our operational control, which
electricity via the National Grid, our assumption refers
encompass our mature producing oil palm subsidiaries
to the International Energy Agency (IEA), where the
ANJA, ANJAS, SMM, KAL, PMP, and PPM our sago and
emission factor for electricity usage through Indonesia’s
edamame companies ANJAP and GMIT, and our offices
National Grid is considered equivalent. By adopting
located in Jakarta, Medan and Sorong. To prevent
this assumption, we can understand the environmental
double counting, we exclude emissions from our
impact of electricity consumption and take appropriate
renewables business (AANE), as their emissions are
steps to reduce carbon emissions and enhance energy
already accounted for in our assessment of emissions
sustainability. According to GHG Protocol Corporate
from SMM. The emissions of carbon dioxide (CO2),
Standard, direct CO2 emissions from the combustion of
methane (CH4) and nitrous oxide (N2O) are all converted
biomass shall not be included in Scope 1 and reported
into CO2 equivalents for a comprehensive evaluation.
separately. At ANJ, our biogenic emissions originate only
(305-1, 305-2, 305-3, 305-4, 305-5)
from palm kernel shells and palm fiber, thus based on
our internal assessment the figure is not significant.
In this report, we categorize our emission accounting
(305-1, 305-2, 305-3)
into three scopes. Scope 1 encompasses two primary
activities: in the plantation sector, it largely attributed
Supported by an independent third-party assessor, we
to peatland oxidation, land conversion, and fertilization;
launched a comprehensive project in 2023 to inventory
and in the mills, it predominantly covers methane
our Scope 3 emissions across the entire supply chain.
emissions from our Palm Oil Mill Effluent (POME). In
This initiative underscores our commitment to accurate
addition to Scope 1, usage of diesel fuel in stationaries
accounting of our environmental impact and has provided
and combustions are also accounted for in both the
us with a clearer understanding of the main sources of
plantation and mills. Scope 2 accounts for the electricity
these emissions, thus facilitating the development of
we purchase. Scope 3 primarily refers to the Fresh Fruit
strategies to mitigate them. While this project is ongoing
Bunch (FFB) we buy from third-party suppliers, and to a
and we have not yet fully accounted for all our Scope 3
lesser extent, includes downstream transportation and
emissions, some of the improvements resulting from
distribution. (305-3)
this initiative will be reflected in the emissions reporting
in this report.
Ozone-depleting substances (ODS) such as
chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons
In 2023, our total company-wide greenhouse gas (GHG)
(HCFCs), which harm the ozone layer and contribute to
emissions decreased by 48,751 Ton CO2 eq (17.8%)
global warming, are not included in our assessment. Our
across all sectors, with a specific reduction of 23,239
vegetable unit’s frozen line facility, which commenced
Ton CO2 eq (11%) in our Palm Oil sector, compared to
operations in 2021, adheres to Indonesian regulations
the figures from 2022. This reduction is primarily due
aimed at phasing out products that emit ODS, by not using
to the review of the planting area inventory profile in
HCFCs and ensuring it does not produce ODS. (305-6)
ANJAS peatland in relation to the second peat inventory
submission to RSPO and ANJAP’s canal development.
Our greenhouse gas (GHG) emissions measurement
Consequently, we continue to reduce our GHG emissions,
approach utilizes the RSPO PalmGHG calculator version
seeing our Scope 1 and 2 emissions intensity reach 1.0
4, which is the most appropriate tool for assessing our
Ton CO2eq/Ton CPO produced compared to 1.31 in 2022
emissions, given that palm oil is our primary business
and 8.16 at baseline. (305-5)
and largest source of emissions. We monitor the use
of fuel, energy, and fertilizers, and calculate emissions
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Our GHG emission management data collection us to gain deeper insights into our GHG emission
methodology encompasses a comprehensive approach management practices, enabling us to make informed
to ensure accuracy and efficiency. We begin with daily/ decisions and optimize our strategies for sustainable
monthly recording of relevant data points, which serves resource utilization. As a foundational assumption for
as the foundation of our monitoring process. This is all our emission data management, it should be noted
complemented by monthly reporting to track trends and that ANJ manufacturers a variety of products which
identify any deviations from established benchmarks. certain investment activities have not reached optimum
Enterprise Resource Planning (ERP) software is used production; therefore, instead using revenue value, we
to facilitate streamlined data management; however, in use asset values as the denominator for determining
instances where ERP is unavailable, we resort to manual emission intensity. (305-4, 305-5)
forms to ensure continuity. Periodic data analysis allows
Table 10. GHG Emissions and Intensity Ratio, ANJ Group (305-1, 305-2, 305-4)
Items Unit 2023 2022 2021 Base Year
GHG Emission
Scope 1
ANJ Group Ton CO2 eq 237,636 301,833 344,881 1,394,534
Palm Oil Unit Ton CO2 eq 200,556 239,806 340,281 1,394,534
Scope 2
ANJ Group Ton CO2 eq 6,119 4,340 2,293 1,876
Palm Oil Unit Ton CO2 eq 4,753 2,384 1,970 1,876
Scope 3
ANJ Group Ton CO2 eq 25,502 25,501 12,098 N/D
Palm Oil Unit Ton CO2 eq 25,468 25,493 12,098 N/D
Total GHG Emissions
ANJ Group Ton CO2 eq 269,257 331,675 359,272 1,396,411
Palm Oil Unit Ton CO2 eq 230,777 267,684 354,349 1,396,411
Sinks and Credits
Selling shell Ton CO2 eq (29,165) (35,974) (18,001) N/D
Excess electricity Ton CO2 eq (13,873) (20,730) (7,608) N/D
Net GHG Emissions
ANJ Group Ton CO2 eq 226,219 274,970 333,663 1,396,411
Palm Oil Unit Ton CO2 eq 187,740 210,979 328,740 1,396,411
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Table 11. GHG Emissions Intensity (Scope 1&2)
GHG Emissions Intensity (Scope 1&2)
Unit 2023 2022 2021 Base Year
ANJ Group
Ton CO2 eq/ million USD 396.95 508.10 538.08 2,968.31
(including sequestration)
Palm Oil Unit
Ton CO2 eq/ Ton CPO Produced 1.00 1.31 1.80 8.16
(including sequestration)
Palm Oil Unit Ton CO2 eq/ Ton CPO Produced
6.98 7.97 7.76 8.49
(without sequestration)
Table 12. Net GHG Emission Intensity (305-4, 305-5)
Net GHG Emissions Intensity
Unit 2023 2022 2021 Base Year
ANJ Group Ton CO2 eq/ million USD 368.39 456.31 517.14 2,968.28
Palm Oil Unit Ton CO2 eq/ Ton CPO Produced 0.66 0.77 1.25 7.24
Emissions Reduction Initiatives efforts to mitigate climate change. We also exercise a
flaring method where the gases produced from POME are
(POJK51-B.2.b, POJK51-F.12)
directed to a Gas Scrubber, which filters out unwanted
gases that are not needed as fuel for generators. There
As part of our ongoing commitment to environmental
are two outcomes from this filtration process: (a) some
stewardship and sustainability, we, at ANJ, are proud to
gases are captured by water and recirculated back to
share the significant strides we have made in reducing
the waste pond, and (b) other gases are trapped in a
emissions across our operations. Most notably, this year
filter, forming a powder-like material that is periodically
we recorded an 83.8 decrease in GHG emissions from
washed and disposed of in the waste pond. Since there is
baseline, which puts the Company on track to achieve the
no storage facility for the gas, excessive production leads
coveted goal of Net Zero by 2030. Our primary focus for
to the surplus being burned off using a flaring method.
reducing greenhouse gas emissions are emissions from
This ensures that all types of gases are combusted,
land use, industrial processes, and energy consumption.
preventing the emission of greenhouse gases (GHGs)
Additionally, our commitments to avoiding deforestation
into the atmosphere. Flaring is only activated when
and our efforts in forest conservation contribute to
production exceeds the immediate usage needs.
reducing emissions from land use change and enhancing
the carbon sequestration capacity of the forest areas
• Harnessing Renewable Energy with Solar Cell
we conserve. This year, emission reductions occurred
Integration and Biogas Power Plants: In our pursuit
in Scope 1, where there was a reduction in diesel fuel
of sustainability, we are utilizing renewable energy
usage. (305-5)
sources to power our operations. Our strategy includes
the construction of biogas power plants at selected
Our path to sustainability is marked by a thoughtful
mills, which use biomass for energy production. This
series of initiatives aimed at reducing our carbon
initiative not only helps us to reduce our reliance on
footprint and supporting the ecological balance of the
fossil fuels but also enhances our overall greenhouse
areas we operate in. Some of the practical steps we have
gas emission reduction performance. The application
taken towards this goal include:
of solar panels at GMIT resulted in a 19% reduction in
GHG emissions from the factory in its first year. This
Methane Capture from Palm Oil Mill Effluents (POME):
year, we increased our renewable energy portfolio to
Recognizing the critical role we play in combating
43%, nearing our target of 60% by 2025.
climate change, we have prioritized the reduction of
emissions from Palm Oil Mill Effluents. Our methane
• Natural Pest Management: We are dedicated to
capture initiatives are a testament to this commitment.
minimizing the use of chemicals in managing pests and
By capturing methane, a greenhouse gas far more potent
diseases. Our Research & Development Department,
than CO2, we’re not only preventing its release into the
as part of our Integrated Pest Management Program,
atmosphere but also contributing significantly to global
has investigated the use of biological predators, such
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A Worker spraying POME onto empty fruit
bunches to produce compost.
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Our composting plant in SMM, East Belitung.
as Barn owls (Tyto alba), to control rat populations, of our estates, ANJAS in North Sumatra and SMM in
and biological pesticides, such as the bacteria Bacillus Belitung, have been equipped with composting plants
thuringiensis and the fungi Metarrhizium anisopliae, since 2015 and 2016 respectively, with a combined
to address the infestation of bagworms or Metisa capacity to produce 89,025 tons of compost by 2023.
Plana Walker. Employing biological controls enables In 2022, we began constructing our third composting
us to reduce our reliance on chemical pesticides, plant at KAL in West Kalimantan, which was completed
which can negatively affect the environment and in 2023.
contribute to climate change. This method helps
us maintain a balanced ecosystem and reduces our • Installation of the Electrostatic Precipitator at
dependence on chemical pesticides, in alignment KAL and PMP : We have implemented a significant
with our goal of promoting biodiversity and ecological environmental protection measure by installing an
health. (13-6-1) electronic precipitator. This device is mounted in
the smokestack of the factory, serving a crucial role
• Composting to Enhance Soil Health: Composting in filtering particulates or ash from the factory’s
transforms palm fruit waste from our milling exhaust gases. The electronic precipitator ensures
operations, known as empty fruit bunches (EFB), into that emissions released into the atmosphere are
organic fertilizers that can be used as alternatives to significantly cleaner by capturing a high percentage
inorganic fertilizers and have lower GHG emissions. of the particulate matter before it can be emitted.
Fertigation, which involves injecting a precise amount
of fertilizer into our plants through drip irrigation Our multifaceted approach to emissions reduction
systems, is much more efficient and can reduce reflects the depth of our commitment to responsible
our overall fertilizer usage. By 2030, our goal is for business practices.
each estate to have its own composting facility. Two
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Energy Consumption (POJK51-B.2.a)
Table 13. Total Energy Consumption (POJK51-F.6, POJK51-F.7, 302-1, 302-3)
Renewables (in GJ) Non-renewables (in GJ)
Electricity
Purchased Sold to Total energy
Year Gasoline, electricity National consumption
Solar (in GJ) Grid (in GJ)
Biogas Biomass Total Pertalite, Diesel Total
Power (in GJ)
Kerosene
ANJ Group, including Palm Oil
2023 3,606 117,665 503 121,774 9,368 162,315 171,683 29,830 36,790 286,497
2022 3,521 118,842 8 122,370 6,186 206,899 213,085 22,831 35,638 322,648
2021 3,488 103,459 8 106,954 21,322 147,954 169,276 17,605 33,848 259,988
Palm Oil Unit
2023 3,606 117,665 0 121,271 7,200 126,721 133,920 20,476 36,790 238,877
2022 3,521 118,842 8 122,370 5,680 129,049 134,729 9,163 35,638 230,625
2021 3,488 103,451 8 106,947 21,145 93,013 114,158 10,610 33,848 197,867
Notes:
1. Biogas, biomass, and electricity consumption are measured in kWh, the conversion factor is 1 Kwh = 3.6 MJ (WRI, 1987)
2. Solar power use is estimated based on a 10 hour/day usage of 9W light bulbs, for 30 days/month, measured in kWh. The conversion factor is 1 kWh = 3.6 MJ (WRI, 1987)
3. Diesel consumption is measured in liters, the conversion factor is 1 liter = 0.036 GJ (IPCC, 2006)
4. Kerosene consumption is measured in liters, the conversion factor is 1 liter = 0.03768 GJ (Statistic Canada, 2005)
5. Gasoline consumption is measured in liters, the conversion factor is 1 liter = 0.03466 GJ (Statistic Canada, 2005)
6. Pertalite consumption is measured in liters, the conversion factor is 1 liter = 0.03276 GJ (deepresource.wordpress.com, 2012; WRI, 1987)
Energy Intensity by Total Asset not uniformly observed across all ANJ estates, largely
due to the unique energy supply challenges present
(POJK51-F.6, 302-3)
in some operating regions. For instance, our sago
factory in Southwest Papua relies on diesel fuel for
ANJ produces a variety of products, leading to varying
energy generation as it is not connected to the national
intensities in resource utilization, which uses the value
electricity grid.
of assets as its denominator. In comparing our energy
consumption trends to last year, we observed a 5%
Our energy management data collection methodology
decline in the utilization of renewable energy, primarily
encompasses a comprehensive approach to ensure
attributed to the decreased usage of palm kernel shells
accuracy and efficiency. We begin with daily/monthly
for turbine operations. The strategic decision to reduce
recording of relevant data points, which serves as
the use of palm kernel shells aligns with our efforts to
the foundation of our monitoring process. This is
transition to more stable and reliable energy sources,
complemented by monthly reporting to track trends and
specifically, electricity supplied by PLN, the state
identify any deviations from established benchmarks.
electricity company. (302-3)
Enterprise Resource Planning (ERP) software is used
to facilitate streamlined data management; however, in
Simultaneously, we made significant strides in reducing
instances where ERP is unavailable, we resort to manual
our reliance on non-renewable energy sources. For
forms to ensure continuity. Periodic data analysis allows
instance, our diesel usage, primarily for operational
us to gain deeper insights into our energy management
activities, decreased by 22% in 2023, thanks to production
practices, enabling us to make informed decisions
efficiency initiatives at ANJAP.
and optimize our strategies for sustainable resource
utilization. (302-4)
ANJ is actively pursuing an energy mix strategy aimed at
boosting productivity while ensuring a more dependable
energy supply and minimizing emissions. However, this
transition away from non-renewable energy sources is
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Total Energy Consumption Energy Intensity
(In GJ) (In GJ/ Million)
2023 286,497 2023 467
2022 322,648 2022 535
2021 259,988 2021 403
Renewable Energy used to produce electricity from biogas. This electricity
(POJK51-F.5, POJK51-F.7) is then sold to the National Electricity Company (PLN)
as a renewable energy source. We have set targets to
Our renewable energy initiatives are focused on capturing increase our renewable energy usage, with plans to
methane, reducing our reliance on fossil fuels, and implement biogas projects across all our palm oil mills
lowering our overall greenhouse gas (GHG) emissions. for energy optimization. We expect to bring at least one
At present, renewable energy constitutes 43% of our more methane capture facility in the near future and are
total energy consumption, with the majority coming from considering the development of a BioCNG plant at our
biomass in the form of palm shells and fibers, which ANJA plantation. (302-3)
are by-products of our production cycle. This biomass
powers the turbines at our ANJA, ANJAS, SMM, KAL In 2023, we established a rooftop solar panel system at
and PMP mills. Over the years, this project has led to GMIT, marking a significant step in ANJ’s commitment to
a steady increase in our use of renewable energy while promoting renewable energy use in our operations. The
decreasing our dependence on diesel. (302-3) rooftop solar panels have an annual capacity of 356,948
kWh and, alongside demonstrating the value that ANJ
We recognize the potential of methane capture to both places in investing in sustainability also sets an example
expand our operations and reduce methane emissions, to others within our industry. We are already seeing
while also generating renewable energy. Since 2013, our pioneering step changing mindsets in Jember, East
we have operated a methane capture project at our Java’s industrial area; showcasing our leadership in
SMM plantation, where palm oil mill effluent (POME) is adopting clean energy solutions.
Our Biogas Plant in AANE, East Belitung
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PIONEERING RENEWABLE ENERGY:
GMIT’S INITIATIVE TO REDUCE CARBON EMISSIONS
As a company at the forefront of agribusiness, choice to embrace renewable resources into
FEATURE STORY
PT Gading Mas Indonesia Teguh (GMIT) remains the company’s operation, where it is expected
humbly aware of its responsibility towards to supply 15% of the factory’s operational
the environment. In October 2023, GMIT, in electricity needs.
partnership with SUN Energy, initiated a
sustainable leap forward by installing a solar Imam Wahyudi, CEO of GMIT, emphasized
power generation system on the roof of its that the solar power system is a concrete
factory in Jember, East Java. Located in Jember, implementation of integrating Environmental,
East Java, GMIT represents ANJ’s commitment Social and Governance (ESG) aspects into the
to sustainable practices and innovation in the Company’s business processes. In the face
agricultural industry. This collaboration marks of urgent climate change challenges, ANJ
a significant step towards environmental demonstrates that the agribusiness sector can
sustainability, aligning with ANJ’s commitment play a role in minimizing environmental impacts
to reducing its operational impact on the by optimizing renewable energy sources.
environment.
The solar power system installed represents an
ANJ aspires to become a world-class estimated annual energy generation of 356,948
agribusiness food company that enhances the kWh. This initiative is projected to reduce
quality of life for people and nature. By 2030, carbon emissions by 226 tons each year, an
ANJ has set ambitious targets to achieve Zero environmental impact equivalent to planting
Carbon Emissions, reduce fossil fuel energy approximately 4,001 trees for ten years.
consumption by 20% and increase its renewable
energy portfolio to over 65% by 2025. This achievement underscores the Company’s
commitment to renewable energy and its
In realizing its ambition, ANJ has introduced effective contribution to combating climate
various energy efficiency programs company- change, reflecting a tangible effort towards a
wide, with the integration of solar panels at greener, more sustainable future. ANJ hopes
the GMIT facility being a strategic addition that this program can inspire other companies
to its energy mix. Considering Indonesia’s in Jember District to take similar steps, as we
abundant sunshine, GMIT’s shift towards solar believe that collective actions will only lead to
energy to reduce its dependence on grid- bigger impacts.
supplied electricity is a reflection on conscious
Solar panels installed on the roof of GMIT factory in
Jember, East Java.
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Energy Efficiency Initiatives mills and buildings, have installed solar cells at our
estates, and utilize various energy-efficient technologies
(POJK51-F.7)
and designs. We conduct regular maintenance of our
engines and vehicles to improve fuel efficiency and
Our energy efficiency efforts are focused on reducing
decrease fuel consumption. Considering that ANJ’s
costs and energy consumption. The most significant
finished products do not require energy for operation,
savings are achieved by repurposing surplus energy
unlike electronic devices or vehicles, it is worth noting
from our biomass-powered turbines, which supply
that our finished products do not involve energy
electricity to our mills, residences, commercial
consumption. In 2023, the energy reduction directly
buildings, places of worship and other estate facilities.
associated with production amounted to 56,208.24 GJ.
Additionally, we employ energy-saving bulbs in our
(302-4, 302-5).
Table 14. Energy Reduction (302-4)
2023 2022 2021
Type of Energy
No Program
Reduced
(GJ) (GJ) (GJ)
1 Using biomass turbines for non-processing energy Diesel fuel 41,328.02 38,524.16 12,484.10
2 R2G (Rotary Removal Grit) Electrical 4,013.47 3,334.32 580.50
Deactivation of the pump in Pond 5 in the waste
3 Electrical 1,042.70 1,277.04 449.30
area
4 Reducing power of LTDS 2 Fan Electrical 3,464.86 5,804.76 404.00
Optimization of High-Speed Separator Pumps for
5 Electrical 506.16 494.73 373.40
mud processing
6 FFB grading conveyor Electrical 1,743.24 - 191.20
Modification of unconventional tin pump system
7 Diesel fuel 440.23 19.01 155.70
from diesel to electric
8 Optimization of the electromotor oil pump Electrical 363.67 240.82 114.60
9 Modification of machines from diesel to electric Diesel fuel 357.04 258.44 46.10
10 Teleconferencing Diesel fuel 66.29 98.02 42.70
Operational transport restrictions for guest and
11 Diesel fuel 23.21 65.88 38.20
staff pickup Service
12 SCADA for Automatization Electrical 33.01 37.03 36.90
13 Switch to energy-saving light bulbs and AC Electrical 125.82 256.62 35.40
14 AutoMix Treatment Electrical 12.37 15.49 15.60
Installation of automatic switches (Legrand Timer,
15 Electrical 2,400.47 79.39 6.30
Photocell)
16 Solar cells Electrical 12.41 10.26 0.90
TOTAL REDUCTION OF ENERGY CONSUMPTION 56,423.57 50,515.98 14,974.90
Note:
1. Methodologies and conversion factors are described in Appendix 06.
2. The reduction baseline is based on a business-as-usual scenario.
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Our Palm Oil Mill
at KAL, Ketapang, West Kalimantan
Air Pollution and Particulate Matter environment, but also for our workers who work in the
mills and are exposed to particulate matter, which can
The dust and smoke from our mills and boilers be harmful to respiratory health.
contain Nitrogen Oxides (NOx), Sulfur Oxides (SOx) and
particulate matter. We have installed an electrostatic Our EHS department reports NOx, SOx, and particulate
precipitator (ESP) at our mills in KAL and PMP to reduce matter emissions to the local Environmental Agency, in
air pollution. Using the power of an induced electrostatic accordance with regulatory standards. We measure NOx
charge, the ESP is designed to effectively remove tiny and SOx levels every six months in factories, offices, and
particles from our mill emissions without the need for a residential areas. At the source, direct particulate counts
filter. In doing so, it reduces particulate matter pollution. are measured in the electrical generator and boiler
The installation of the ESP is not only beneficial for the chimneys.
Table 15. Nitrogen Oxides, Sulfur Oxides, and Other Significant Air Emissions (305-7)
Emissions Unit 2023 2022* 2021
NOx Kg 430,664 455,107 246,553
SOx Kg 47,010 217,299 80,117
Particulate Matter Kg 172,384 232,945 117,151
*Information was restated due to improvement of data collection
Notes:
1. These emissions cover mills at SMM, ANJAS, ANJA, KAL, and PMP only
2. Calculations are made based on site-specific data
3. Amounts are in Kg per year, calculated by multiplying the amount of NOx, SOx, and PM measured in mg per m3 of air emitted in our mill chimneys,
with the flow rate of air in m3/second, and the total operating hours of the mill in the year.
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COMMITTING TO SUSTAINABLE PRACTICES
IN WASTE MANAGEMENT
Our Palm Oil Mill at KAL,
Ketapang, West Kalimantan Our palm oil factory at PT KAL has installed an Electrostatic Precipitator
(ESP), and there has been a reduction in boiler concentration based
on test results from 2022 to 2023. The boiler concentration at KAL
decreased from 111.7 mg/m³ to 42.15 mg/m³. However, the reduction
in emission load was not very significant due to operational hours and
flow rate. Over 99% of the waste we generate annually is derived from
our agricultural operations. The remaining fraction is classified as
“non-processing waste,” which encompasses a variety of items such
as machine and car parts, paper, and domestic waste. Additionally,
our operations produce hazardous waste, including used oil, neon
bulbs, medical waste and pesticide packaging. If not managed
appropriately, this waste can lead to environmental pollution and
adverse health effects for employees and surrounding communities.
However, we are committed to responsible waste management and
adhere to the principles of reduce, reuse, and recycle (3R) to mitigate
these impacts and promote sustainability.
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Flowchart 01. Waste Generation and Significant Waste-related Impacts (306-1)
PALM OIL PLANTATION
Upstream Own Activity Downstream
Hazardous and Hazardous and
Fertilization Toxic Waste Toxic Waste
306-3 Collector
Fertilizer
306-5-c
Sacks
Planting Upkeep Non-Hazardous and Non-Hazardous
Toxic Waste and Toxic
Oil in 306-3 Waste Collector
the drum (Non Organic)
306-5-c
Nursery Harvesting
Reuse
Chemical Recycle
Fertilizer sacks
packaging 306-1 306-4-a
306-4-d-1
Recycle Scraps,
Polybed Polybed, Plastics
306-4-d-1
CIRCULAR ECONOMY
Iron
PHASE
Product 1 Fresh
Plastic/
Fruit Bunch
Non- Hazardous
306-1
and Toxic Waste
Packaging
Recycle Kernel shells, Recycle Scraps,
Fiber, EFB, Paper Composts, Plastics
306-4-d-1 306-4-d-1
306-1
Processing Recycle
(Palm Oil Mill) 306-4-a
Non-Hazardous and
306-1 Toxic Waste
306-3-a Non-Hazardous
and Toxic Waste
Collector
(Non Organic)
CIRCULAR ECONOMY 306-5-c
Hazardous and Hazardous and
Toxic Waste Toxic Waste
Collector
306-3-a 306-5-b
Product 2 CPO
306-1
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Our Waste Management Approach • Domestic waste is fermented to produce eco-enzymes,
which we utilize as detergent. In this reporting period,
(POJK51-B.2.c, POJK51-F.14)
we have successfully piloted the use of eco-enzymes
as organic pesticides.
As part of our Sustainability and Environmental Policies,
• We implement 3R initiatives to reduce our non-
we have implemented a range of Reduce, Reuse, Recycle
processing waste, including eliminating plastic
(3R) programs. Additionally, our operational subsidiaries
bottled water and supporting environmentally friendly
have established specific waste management policies.
packaging, as well as applying the Extended Producer
Our waste management objective is to decrease
Responsibility (EPR) principles.
the overall solid waste output from non-production
• We also conduct activities to raise awareness about
activities, enhance waste reuse and recycling, and
3R among employees, suppliers, and contractors, and
eliminate unregulated landfilling and waste incineration.
reward their efforts and initiatives in this area. (306-2)
Our targets are set with a medium-term perspective,
spanning a five-year period. Our end goal is to have all
Our waste management program also includes the
of the waste from our estates covered by a 3R program,
implementation of a “waste bank” system, known as
thereby preventing disposal to landfills.
“bank sampah” in Bahasa Indonesia. A waste bank
operates on a concept like a traditional bank, but instead
Our overall approach and circularity measures
of money, customers collect, segregate, and deposit
encompass the following initiatives:
waste. This waste is then weighed, valued, and recorded
in their waste bank account, and its value can later be
• Shells and fibers from our palm oil and sago crops are
withdrawn like in a regular bank. In our case, waste is
repurposed as biofuel for our boilers, replacing diesel
collected by our employees and deposited at the waste
fuel as part of our waste-to-energy initiative.
bank. The collected waste is sold to third parties as raw
• Palm oil empty fruit bunches are composted to create
material for recycled products, while some of the waste
organic fertilizers, which we use on our land as a
is also recycled internally by the Company.
sustainable alternative to inorganic fertilizers that
emit greenhouse gases.
Table 16. Our 3R Initiatives (306-2)
No. Impact Initiatives
1 Reduce the use of diesel, • Palm fiber and kernel shells generated from CPO processing are used as boiler
inorganic fertilizers, paper, fuel to reduce diesel fuel consumption and waste.
plastic, and organic waste • Empty Fruit Bunches (EFB) are composted at our composting plant and then
applied to oil palm plants as organic fertilizer to reduce the use of chemical
(inorganic) fertilizers.
• Reducing paper use by implementing digital technologies such as EPMS
(Electronic Plantation Mobile System), eTIS (Electronic Traceability Information
System), SIGAP application system (Sistem Aplikasi GMIT untuk Agricultura dan
Pabrik), Digital Capital expenditure and fingerprint-based digital attendance
machines.
• Reducing plastic consumption by enacting a policy of not providing plastic bags for
the customers of employee cooperatives and not supplying packaged drinks at the
office.
2 Reuse of the following • Empty fertilizer sacks are reused for stabilizing slopes and embankments on
materials: Company plantation lands to prevent erosion and reinforce the soil.
Empty fertilizer sacks • Empty fruit bunches are directly applied as organic fertilizers in oil palm
Empty fruit bunches plantations.
Miscellaneous waste • Reuse of waste such as tires, steel, pipes, plastic bottles, drums, and sacks
Food waste as garden accessories, decorations, fences, road signs, breeding media for
pollinating insects, planting media used by local communities, etc.
• Organic solid food waste is composted and used as organic fertilizer for decorative
plants in the housing complex.
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2023 Sustainability Report
No. Impact Initiatives
3. Recycle scrap metals and • Utilization of scrap metal for making tools to process plastic, known as “plastic
plastic choppers”. Plastic choppers are used to cut or chop plastic waste.
• Utilization of plastic waste with a mixture of boiler ash as raw material for making
paving blocks.
• Recycling used CPO seals as raw materials for making plastic products.
• Use of scrap paper as log sheets.
• Utilization used Ebor gold pole fiber, a harvesting pole, to make waterpasses. The
waterpasses are used for measuring double terraces in the replanting area.
• Reuse of chain conveyors as roller conveyors for boilers.
• Utilization of scrap metal in mill areas, specifically angle iron and rattan iron, to be
used as a fire hose binder.
• Reuse of plastic waste for edamame seed processing.
• Boiler ash is used for paving roads.
4. Eco-enzyme Fermentation of organic domestic waste to produce eco-enzymes, a multi-purpose
liquid that can be used as organic detergents and cleaners.
5. Liquid smoke Utilization of scrap wood as liquid smoke (pesticide/natural disinfectant).
6. Palm cake reuse Palm cake is used as organic soil fertilizer and cattle feed.
7 Reuse of filtered solid waste Solid particles from POME are filtered using Geotubes and reused as fertilizers in the
from Geotubes planted areas
Disposal of Waste
When not reused or recycled, our non-hazardous solid Before disposal (shipment to third parties), Hazardous
waste is disposed of on-site, in monitored landfills, with and Toxic Waste (B3 Waste) is stored in a Temporary
only a small proportion being outsourced to external Hazardous Waste Storage Facility (TPS Limbah B3).
waste management companies. The collection, recycling, The design of the TPS Limbah B3 building ensures
and disposal of our hazardous materials are managed that there is no contamination of the stored B3 waste
offsites by licensed third parties, in accordance with legal into the environment. This facility has received the
requirements. In line with their contracts, we monitor necessary permits from relevant authorities and is
these external parties to ensure they adhere to all subject to regular monitoring. The recording of B3 waste
applicable laws and industry standards. For monitoring entering and exiting the facility (for shipment) is strictly
and supervising hazardous waste management, we use maintained and regularly inspected by both internal
the Ministry of Environment and Forestry’s (MoEF) online and external parties, including relevant authorities
electronic reporting system “Festronik.” (306-2, 306-5) and independent agencies. Throughout the year 2023,
there were no incidents of B3 waste leakage into the
In adherence to stringent environmental regulations environment. (POJK51-F.15)
and safety protocols, we have procedures for the
management of Hazardous and Toxic Waste (B3 Waste).
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Table 17. Waste Generated, Diverted from and Directed to Disposal in Metric Tons (POJK51-F.13)
Diverted
Waste Other Directed to
from Reused Recycled Temporary
generated recovery disposal
Year Category disposal (306-4-c-i) (306-4-c-ii) Collected
(306-3-a) (306-4-c-iii) (306-5-a)
(306-4-a/d)
Ton Ton Ton Ton Ton Ton Ton
Production 589,571.40 582,749.50 198,863.75 100,919.01 224,146.22 58,850.52 6,821.91
Non-
296.19 253.59 113.92 0.40 0.38 138.88 42.60
production
2023
Hazardous 71.39 - - - - - 71.39
Total 589,938.98 583,003.09 198,977.67 100,919.41 224,146.60 58,959.40 6,935.90
Production 598,447.46 540,148.22 198,567.04 108,389.97 233,191.21 44,857.13 13,422.12
Non-
279.85 131.59 125.41 6.18 - 117.07 31.19
production
2022
Hazardous 127.23 - - - - 127.23
Total 598,854.55 540,279.81 198,692.45 108,396.15 233,191.21 44,974.20 13,600.54
Production 552,645.66 468,844.79 177,614.61 79,405.49 211,824.69 71,563.13 12,237.74
Non-
183.32 86.69 79.00 7.59 - 40.15 56.48
production
2021
Hazardous 77.11 - - - - 77.11
Total 552,906.09 468,931.48 177,693.61 79,413.08 211,824.69 71,603.28 12,371.33
Data sourced and processed from ANJ’s oil palm and sago management units. Measurement methods and conversion factors are described in Appendix 06.
This year, we experienced an increase in production Our waste management data collection methodology
waste due to higher production levels. However, we adopts a holistic approach to improve precision and
successfully diverted this waste from disposal, as effectiveness. It commences with the daily/monthly
evidenced by a significant 99% reduction in the amount logging of relevant data points, forming the cornerstone
of waste entering our onsite landfills. As a result, the of our monitoring system. This is then followed up by
total amount of waste directed to disposal decreased monthly reporting to observe trends and detect any
from 13,600.54 tons in 2022 to 6,935.90 tons in 2023. deviations from established benchmarks. Despite the
This achievement is attributed to the success of our constraints of manual data mining, we persistently
waste management initiatives, such as composting evaluate and monitor every data point because
and converting biomass into energy. Meanwhile, there periodic data analysis affords us deeper insights into
has been an increase in domestic waste, partly due to our waste management practices, empowering us to
improvements in our monitoring and reporting of waste make informed decisions and refine our strategies for
generated in housing areas and offices. Despite this, we sustainable resource (306-2, 306-3, 306-4)
have managed to reuse a significant amount of waste
and avoid direct disposal, as detailed in Table 17 above.
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Household compost collecting in SMM is an initiative that supports
our goals for waste reduction.
Table 18. Waste Directed to Disposal in Metric Tons (306-5)
Directed to Disposal
Year Category Onsite Offsite Total
Ton Ton Ton
Non-Hazardous 6,821.91 42.60 6,864.51
2023 Hazardous - 71.39 71.39
Total 6,821.91 113.99 6,935.90
Non-Hazardous 13,442.12 31.19 13,473.30
2022 Hazardous - 127.23 127.23
Total 13,442.12 158.42 13,600.54
Non-Hazardous 12,237.74 56.48 12,294.22
2021 Hazardous - 77.11 77.11
Total 12,237.74 133.59 12,371.33
Note: Waste disposed onsite is placed in monitored landfills.
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COMMITTING TO THE SAFEGUARDING
OF FOREST AND BIODIVERSITY (POJK51-B.2.D)
OUR INDUSTRY CAN HAVE POTENTIALLY SEVERE
IMPACTS ON THE ENVIRONMENT, INCLUDING
DEFORESTATION, LOSS OF BIODIVERSITY, HABITAT
ALTERATION AND REDUCED HOME RANGE SIZES
FOR VARIOUS SPECIES. THE WIDESPREAD USE OF
CHEMICAL PRODUCTS IN OUR OPERATIONS, SUCH
AS FERTILIZERS, HERBICIDES, INSECTICIDES
AND RODENTICIDES, MAY CONTRIBUTE TO SOIL
AND WATER POLLUTION AND CONTAMINATION.
ADDITIONALLY, THE WASTEWATER FROM PALM OIL
MILLS CAN POLLUTE RIVERS, WHILE THE NOISE,
SMOKE AND DUST GENERATED BY THEIR BOILERS
MAY DISTURB LOCAL WILDLIFE."
To demonstrate our commitment to environmental
stewardship, ANJ has a dedicated conservation team
responsible for planning, innovating, and monitoring
efforts to protect forests and biodiversity in our operating
areas. This team works to ensure that our operations have
a minimal impact on the natural environment and that
we actively contribute to the conservation of ecosystems
and the diverse species that inhabit them. In 2023,
ANJ concentrated on developing a focused biodiversity
strategy, aiming to create a more holistic, comprehensive,
and systematic approach to the implementation of
biodiversity conservation throughout our business
operations. This strategic focus underscores our
commitment to integrating biodiversity considerations
into all aspects of our operations, ensuring that our
activities support and enhance the natural environment
in which we operate. The implementation of this strategy
will commence in 2024, although many of the activities
are already ongoing.
Our conservation team conducts
regular observations and
monitoring in conservation area.
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Table 19. Significant Impacts of Operations on Biodiversity (POJK51-F.9, 304-2)
OIL PALM PLANTATIONS
Extent of Duration of Reversibility of
Intervention Potential Impacts Impact Mitigation Evidence/ Results
Impact Impact Impact
DIRECT IMPACTS
Manual • Pollution of soil Direct pollution Duration and Impacts on soil • Refrain from using • No chemical treatment
application and water impacts can magnitude of and aquatic chemical treatments is used in areas close
of inorganic occur in planted impact correlate biotopes can (fertilizer or spraying) in to rivers
• Reduction in soil,
and organic areas. with the amount be reversed areas adjacent to river
fauna and flora • 100% completion in
fertilizers and type of depending boundaries
The run-off of the construction of
• Reduction chemicals used, on mitigation
chemicals and • Construct isolation isolation ditches and
in aquatic application measures.
fertilizers into ditches and embankments
biodiversity (e.g., methods,
waterways and embankments in
zooplankton and and climatic • Completed the biannual
wetlands can proximity to river
phytoplankton) conditions. river water analysis,
have downstream boundaries to prevent
ensuring accurate
impacts. contamination from
assessment of water
surface runoff
quality
• Carry out regular river
water analysis twice a
year to monitor water
quality and ecological
balance
Use of manual • Poisoning of This is poorly Impacts will The long-term • Dissemination of • Conducted employee
and chemical fauna, either understood, but remain if effects of related information to training and
methods during directly (e.g., likely effects are chemicals are chemicals on workers socialization through
cultivation rodents feeding in the immediate used. wildlife are poorly the dissemination of
• Not applying toxic
on rodenticides) area around palm understood. flyers and posters about
substances close to
or indirectly trees. the harmful impacts of
conservation areas
(e.g., rodent chemical substances
predators feeding • Assessing the in areas adjacent to
on poisoned chemicals used conservation areas
animals) in cultivation in
• ANJ has strictly
accordance with WHO
prohibited the
standard
application of toxic
substances in areas
close to conservation
areas
• Assessment of
chemical use done
annually
Use of trucks for • Injuries to fauna The impact Impact potential Mitigation efforts • Placing warning signs • Signboards have been
transportation or death due primarily occurs remains for can reduce the in areas traversed by placed along every road
of FFB to collisions or on the road as long as the likelihood of fauna near the HCV area.
encounters network within plantation is wildlife collisions.
• Building wildlife • 3 units of arboreal
the plantations. active.
crossings above and bridges for wildlife have
in culverts underneath been installed in KAL
roads and ANJAS
Mechanical • Liquid waste The impact Impact potential Reducing the • Building collection • Collection ponds have
processing of (POME) extends from remains for as biological and ponds to process the been installed in all site
FFB can pollute the palm oil long as the mill chemical oxygen liquid waste operations
. waterways. mill with POME is active. demand of POME • Using anaerobic and
• The use of bacteria
concentrating in reduces the impact aerobic bacteria to
• Dust and air to control waste has
collection ponds. on aquatic flora control the waste
pollution from been exercised in all
and fauna. • Building flatbeds in
the boilers Potential business units
the plantation area for
downstream Collection ponds
• Noise pollution the utilization of liquid • In all of ANJ's
impact after have some
from machine waste as fertilizer subsidiaries that
POME is released biodiversity
operation additives already have palm oil
in the plantation benefits (wetland
• Sending liquid waste mills, composted waste
(as fertilizer) or birds).
samples to accredited materials are applied
into waterways.
Dust, air and noise laboratories to analyze to oil palm plants using
Dust, air and pollution can be the liquid waste content the flatbed system.
noise pollution reduced.
• Conducting • Sending of liquid
reduce with
standardized waste samples to labs
distance from
ambient air quality ccompleted in all units
the mill, but
measurements (2x/ of operation
the impact on
year)
biodiversity is • Air quality
unclear. measurements
conducted twice in 2023
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2023 Sustainability Report
Extent of Duration of Reversibility of
Intervention Potential Impacts Impact Mitigation Evidence/ Results
Impact Impact Impact
INDIRECT IMPACTS
Improved • Increased Plantations and The threat of Awareness and • Conduct patrolling to • The number of illegal
road access hunting and HCV areas these impacts enforcement deter illegal logging logging camps has
increases illegal unsustainable remains as long can effectively activities decreased to zero.
logging, hunting wildlife collection as roads remain minimize this
• Engagement with illegal • W Wildlife snares were
and poaching open. threat.
• Illegal logging loggers and providing encountered on patrols
threats.
opportunities for and the team conducted
legitimate employment follow-up actions to
address this
• Engagement with
local communities • In 2023, the PENDAKI
to raise awareness program went through
about the importance digital transformation
of biodiversity enhancing data visibility
conservation and accuracy, selection
of PENDAKI champions
• Use of the PENDAKI
to further incentivize
program to increase
the engagement
biodiversity awareness
among staff • Availability of a wildlife
encyclopedia as a
knowledge reference
for employees and the
community
• The efforts are
successful, as indicated
by the presence of
species that are
overhunted elsewhere
(e.g. Hornbills, Magpie
Robin, Hill Mynahs)
The use of • Fast-growing Primarily The threat Impacts can • Manage the silvicultural • Management control
invasive species groundcover affecting forest remains if be effectively (climber cutting, has been able to
(e.g., Mucuna) crops and edge of HCV invasive species mitigated through removal of Mucuna and minimize the presence
affects species in other pioneer areas are used in silvicultural other invasive species) of invasive species in
HCV areas. species used plantations. treatment. HCV areas.
in plantations
can invade HCV
areas and reduce
ecological health.
Water table • Peat and peat This could affect The impact Most impacts • Conduct soil subsidence • Availability of
management forests in HCV peatlands in depends on can be avoided management/ subsidence data in
in HCV areas areas could dry planted areas and water table in HCV areas monitoring HCVs
surrounding out if the water HCVs. management. if water levels
• Conduct peat water • Availability of
plantations table is kept too in surrounding
table monitoring in subsidence data in
low, affecting canals are kept
planted blocks planted areas
plant and animal adequately high.
life. In planted areas, • Conduct water and • Availability of water
this is more drainage management table data
• A low water
problematic as the
table could • Efforts contributed to
water table needs
result in peat the maintenance of
to be below the
decomposition Green PROPER for KAL
peat surface to
and subsidence.
allow the growth of • Gambut (water table)
• Dry peat is more palms and fruit. level is in accordance
fire-prone and with Government
fires could result requirements.
in the loss of
HCVs.
Isolation of • A decline in The impact The impact Impacts can be • Development of forest • Forest corridor in
wildlife in HCV genetic health is species- can be reduced partially reversed corridors to connect KAL and replanting of
areas and long-term dependent. Some over time, by investing separated areas and riparian areas In ANJA
viability of the species can more either when in improved avoid animal isolation and SMM
genetic pool easily disperse palms grow ecological Replanting of riparian
• Availability of aerial
between HCV and wildlife connectivity areas
photographs of
areas than others move through between forested
• Maintaining natural corridors and riparian
planted areas, areas and other
forest trees within oil areas in all of ANJ
or when forest areas of high
palm areas concession areas
corridors and biodiversity.
steppingstones • The success of natural
are established forest tree maintenance
in a landscape. is indicated by the
presence of migratory
birds that use trees
within oil palm areas as
their transit place
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SAGO FOREST (ANJAP)
Duration of Reversibility of
Intervention Potential Impacts Extent of Impact Impact Mitigation Evidence/ Results
Impact Impact
DIRECT IMPACTS
Selective • Sedimentation Throughout the Impact severity Impacts can be • Conducting • The Company
harvesting sago area, except varies with the reduced through standardized testing works together
• Reduced water
for conservation intensity of careful management. of ambient air and with accreditation
quality
set-asides management water quality as bodies to monitor
• Air and noise (medium in well as noise levels and test ambient
pollution harvested areas (2x/year) air and water
• Potential impacts and low in areas quality. In 2023,
• Monitoring wildlife
are still being under natural 2 tests were
species
analyzed. regeneration). completed.
• Constant
monitoring of
wildlife species
INDIRECT IMPACTS
Waterway • Increased Sago area The threat of Awareness and • Conduct regular • Wildlife snares
access hunting and these impacts enforcement can patrols to deter encountered
increases the unsustainable remains as long effectively mitigate illegal logging on patrols have
threat of illegal wildlife as the area this threat. activities reduced.
logging, hunting collection remains open
• Engagement • Efforts are on
and poaching. for use.
• Illegal logging with illegal track, as indicated
loggers to provide by the presence
opportunities of species that
for legitimate are overhunted
employment elsewhere
(e.g., Hornbills,
• Engagement with
Magpie Robin,
local communities
Hill Mynahs,
to raise awareness
Cassowary
about the
and Dusky
importance of
Pademelon).
biodiversity
Many of our plantations and estates are situated near Furthermore, our projects often lead to increased
conservation areas defined by the Ministry of Environment population and economic activity in the region, as new
and Forestry’s (MoEF) Protected Area System. roads and other infrastructure improve access in rural
Additionally, some locations are classified as protected areas. Associated lands and forests are cleared for
areas by the International Union for the Conservation residential areas and to make way for new agricultural
of Nature (IUCN). Our activities may impact biodiversity activities, as well as logging, hunting, and poaching.
in both our development areas and our protected While these developments can be positive for the local
management areas, including High Conservation Value economy, they can have negative effects on biodiversity
(HCV) areas, buffer zones, river systems, and any areas and carbon emissions.
that are inhabited or traversed by wildlife.
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Table 20. Proximity of Operational Sites to Protected Areas (304-1)
Nearest
Geo Location
Protected Area IUCN
Operational HGU Area Protected Distance
Province Regency Sector
site (Ha) National Area (km)
Lat Long Legislation Category
(MoEF)
ANJA North North 1°28'07"N 99°55'37"E 9,465 Palm Oil Batang Gadis II 57
Sumatra Padang National Park
Lawas
ANJAS North South 1°9'36"N 99°9'16"E 9,182 Palm Oil Siondop Protected - adjacent
Sumatra Tapanuli Forest
SMM Bangka East 2°56'17"S 107°52'57"E 16,277 Palm Oil Senusur Sembulu - 4
Belitung Belitung Protected Forest
KAL West Ketapang 1°26'49"S 110°13'41"E 10,920 Palm Oil Gunung Palung II 2
Kalimantan National Park
GSB South Empat 3°44'10"S 102°45'28"E 12,800 Palm Oil Nature Park Bukit V 15.4
Sumatra Lawang Kaba
PPM Southwest South 1°54'15"S 132°21'19"E 32,025 Palm Oil Suabor Protected - 3.5
Papua Sorong Forest
PMP Southwest South 1°50'17"S 132°28'18"E 22,678 Palm Oil Suabor Protected - Adjacent
Papua Sorong and Forest
Maybrat
ANJ Southwest Maybrat 1°43'07"S 132°32'33"E 36,506 Palm Oil Suabor Protected - Adjacent
Papua Forest
ANJAP Southwest South 1°57'28"S 132°13'50"E 40,000 Sago Suabor Protected - adjacent
Papua Sorong (IUPHHBK- Forest
HA Sagu)*
Notes:
1. IUPHHBK-HA: Izin Usaha Pemanfaatan Hasil Hutan Bukan Kayu - Hutan Alam (Business License for the Utilization of Non-Timber Forest Products – Natural Forest)
2. IUCN Protected Area Categories are used to classify protected areas.
a. Category Ia : Strict Nature Reserve
b. Category Ib : Wilderness Area
c. Category II : National Parks
d. Category III : Natural Monument or Feature
e. Category IV : Habitat/Species Management Area
f. Category V : Protected Landscapes or Seascapes
g. Category VI : Protected Area with Sustainable Use of Natural Resources
Our Conservation Commitments comprehensive Biodiversity Strategy that underscores
(POJK51-F.10) our deep commitment to biodiversity protection and
management. This strategy presents a holistic approach
In line with our Sustainability Policy, ANJ is committed designed to mitigate environmental impacts and foster
to the full protection and conservation of independently positive outcomes for biodiversity across our operational
identified High Conservation Value (HCV) and High areas and the broader landscape. It sets forth clear
Carbon Stock (HCS) sites, as well as biodiversity within foundational principles, defines key success factors,
our planted areas, other areas within our land title and is supported by core programs aimed at achieving
borders, and areas surrounding our land title boundaries specific biodiversity targets. Our strategy is anchored
that are within our control or influence. This includes a by six fundamental principles, encapsulated by the
commitment to avoid conservation areas and primary acronym PLANET: promoting best practices, adaptive
forests with high biodiversity. In our operations, peat management, engagement and partnership, landscape-
ecosystems, riparian zones, and hilly areas with a slope level approaches, natural values accounting, and time-
grade of more than 40% are protected, and we are based targets. These principles are instrumental in
dedicated to their complete preservation.(304-1) guiding our efforts to minimize the ecological footprint of
our operations. We emphasize a mitigation hierarchy—
We adhere to all relevant rules and regulations relating aiming to avoid impacts where possible, minimize
to environmental protection and conservation. We have a those that are inevitable, and seek opportunities to
Conservation Policy, along with procedures concerning enhance biodiversity beyond our immediate operational
HCV and HCS and protocols for the conservation of boundaries. Key to the success of our biodiversity
protected flora and fauna. In 2023, we launched a initiatives are specific, measurable targets. These include
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maintaining stable populations of High Conservation Management’s standard operating procedures (SOP).
Value (HCV) species, achieving zero human-wildlife This structured approach ensures that our operations
conflict related to IUCN Threatened and Protected not only comply with environmental regulations but also
Species in line with Indonesian regulations, establishing implement sequential steps of the mitigation hierarchy
a robust biodiversity monitoring program by 2025, and in biodiversity conservation. We strictly prohibit the
integrating biodiversity accounting into the reporting harvesting, poaching, and hunting of protected flora and
protocols of at least two business units by 2030. Each of fauna, as well as all rare, threatened, and endangered
these targets plays a vital role in tracking our progress species. Hunting of unprotected and non-threatened
and ensuring the sustainability of our biodiversity species is only allowed when sustainable use or hunting
efforts. Additionally, our strategy incorporates the principles are applied. This protocol must also be
approaches of avoidance, minimization, restoration, and rigorously followed by our suppliers.
offset as outlined in our High Conservation Value (HCV)
Table 21. Size and Location of Protected HCV Areas in
Operational Sites (304-3)
Concession Area
Conservation % of total
Operational site
area (ha) Nucleus Plasma Total Concession Area
ANJA 391.67* 9,465.00 - 9,465.00 4.13%
ANJAS 1,464.03 9,182.00 157.50 9,339.50 15.68%
SMM 1,381.31* 16,277.00 948.00 17,225.00 8.02%
KAL 3,973.73 10,920.12 2,958.12 13,878.24 28.63%
GSB 1,373.00 12,800.00 - 12,800.00 10.73%
ANJ (Southwest Papua) 36,505.93 30,515.75 5,990.18 36,505.93 100.00%
PMP 17,131.74 18,860.30 3,818.11 22,678.41 75.54%
PPM 27,374.32 26,570.70 5,454.48 32,025.18 85.48%
ANJAP 8,150.00 40,000.00 40,000.00 20.38%
* Conservation areas were added at ANJA and SMM
As of 2023, ANJ has set aside a total area of 97,745.73 compensation area to complete the RSPO Remediation
hectares for conservation within our concessions. These and Compensation Procedure.
High Conservation Value (HCV) areas are managed in
collaboration with local government, communities, Our conservation area in North Sumatra, adjacent to
conservation experts, and non-governmental a designated protection forest, encompasses riparian
organizations (NGOs) such as Yayasan Konservasi buffer zones and forested areas that provide habitat
Indonesia and Tropenbos Indonesia. Our conservation for the Sambar Deer, Great Argus Pheasants, and rare
initiatives are driven by objective expert assessments Nepenthes (pitcher plants). In Belitung, our conservation
and aim to preserve, if not enhance, biodiversity and area primarily consists of riparian zones planted with
species richness in our conservation areas. In 2023, we forest and fruit trees, as well as the Balok forest, which
continued efforts to develop specific biodiversity targets is a habitat for the Tarsier, the world’s smallest primate.
focusing on key species in our conservation areas, We engage the local community in Belitung in managing
demonstrating our commitment to maintaining and the forest through initiatives such as forest patrols,
improving the ecological integrity of these areas.[304-3] ecotourism, and education.
A total of 2,446.73 hectares are areas outside the HGU Our conservation area in West Kalimantan is part of the
(Right to Cultivate). As of the reporting date, an area Essential Ecosystem Area, where we collaborate closely
of 2,330 hectares has been proposed to RSPO as a with International Animal Rescue Indonesia, the Natural
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Resources Conservation Agency of the Indonesian such as the twelve-wired bird of paradise (Seleucidis
Government (BKSDA), and independent environmental melanoleucus). We actively seek collaboration with
researchers to protect the habitat of orangutans. local governments and communities to ensure optimal
According to the International Union for Conservation of conservation and biodiversity protection in the region.
Nature (IUCN) and the Indonesian Government, this area In 2022, we successfully obtained letters of support
is home to at least eight protected mammal species, from the governments of South Sorong and Maybrat
including Malayan sun bear, pig-tailed macaque, maroon Regencies for our conservation initiatives. Additionally,
leaf monkey, and orang utans. we have established a joint commitment with local
communities to manage and protect conservation areas,
In Southwest Papua, our surveys have identified more demonstrating our collective dedication to preserving
than 58 fauna and 25 flora species listed on the IUCN the unique and diverse ecosystems of Southwest Papua.
Red List, including rare orchid species and birds
Table 22. IUCN Red List and National Conservation List Species, by December 2023 (304-4)
FAUNA
Total identified fauna species on the IUCN Red List CITES Protected
Protected
(CR, EN, VU, NT, LC, DD, NE) (Appendix) under
Class Total under
Ministry
PP7/1999
CR EN VU NT LC DD NE NA I II III Decree
Actinopterygii 0 0 1 1 28 1 2 11 44 0 0 0 0 0
Amphibia 0 0 0 0 23 1 0 7 31 0 1 0 0 0
Arachnida 0 0 0 0 1 0 3 2 6 0 0 0 0 0
Aves 1 6 20 54 443 0 2 13 539 8 87 0 155 132
Chilopoda 0 0 0 0 0 0 1 1 2 0 0 0 0 0
Clitellata 0 0 0 0 0 0 0 1 1 0 0 0 0 0
Diplopoda 0 0 0 0 0 0 1 0 1 0 0 0 0 0
Gastropoda 0 0 0 0 0 0 0 1 1 0 0 0 0 0
Insecta 0 0 1 0 55 1 117 18 192 0 2 0 1 1
Malacostraca 0 0 0 0 2 1 0 0 3 0 0 0 0 0
Mammalia 4 16 17 10 46 4 1 9 107 15 34 3 31 39
Reptilia 1 3 7 1 90 2 0 7 111 0 36 0 8 8
FLORA
Total identified Flora species on the IUCN Red List CITES Protected
(CR, EN, VU, NT, LC, DD, NE) (Appendix) Protected
under
CLASS Total under
Ministry
PP7/1999
CR EN VU NT LC DD NE N/A I II III Decree
Agaricomycetes 0 0 0 0 0 0 2 0 2 0 0 0 0 0
Cycadopsida 0 0 0 1 0 0 0 1 2 0 2 0 0 0
Gnetopsida 0 0 0 0 2 0 0 1 3 0 0 0 0 0
Liliopsida 0 2 0 1 40 5 120 45 213 0 78 0 7 1
Lycopodiopsida 0 0 0 0 1 0 2 3 6 0 0 0 0 0
Magnoliopsida 10 23 37 28 311 15 303 145 872 0 29 0 14 5
Pinopsida 0 1 1 1 2 0 1 1 7 0 0 0 0 0
Polypodiopsida 0 0 0 0 4 0 19 7 30 0 2 0 0 0
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Table 23. Number of Threatened Species (IUCN Categories CR, EN, VU) Identified through Biodiversity Monitoring
Activities
2023 2022 2021
Number of IUCN Red List Threatened Fauna Species 77 80 71
Number of IUCN Red List Threatened Flora Species 74 53 39
We are actively engaged in reforestation projects in both initiatives are subject to third-party audits to ensure
High Conservation Value (HCV) and degraded areas to compliance. Audits conducted in 2023 confirmed that our
restore ecosystems and enhance biodiversity. In 2023, we conservation efforts align with RSPO and ISPO protocols.
reforested 80 hectares in riparian buffer zones as part of
our replanting projects in North Sumatra. These areas In 2019, we launched the PENDAKI (Peduli
were previously used for palm plantations, but during Keanekaragaman Hayati or Care for Biodiversity) citizen
our replanting program, we opted to introduce forest science program to enhance our biodiversity monitoring
plants to serve as a food source and habitat for wildlife. efforts. The PENDAKI system encourages our employees
Additionally, we have reforested a total of 50 hectares at to record any flora and fauna they encounter while
our KAL estate in West Kalimantan. (304-3) working in our conservation and plantation areas. Since
the program’s launch, citizen scientists have submitted
In total, ANJ has successfully planted 10,502 native over 109,000 records. In 2023 alone, more than 800 new
seedlings, covering an area of 48.05 hectares. These citizen scientists joined the program, bringing the total to
replanting activities span several of our operations, 3,200 participants. Our PENDAKI program was recognized
including ANJA and SMM, where a combined area of with the Outstanding Achievement Award at the RSPO
33.08 hectares has been restored with 4,440 native Excellence Awards in 2022 for its exceptional contributions
seedlings. Specifically, 2,207 seedlings were planted to conservation using innovative and creative methods.
across 10.75 hectares at SMM, while 2,233 seedlings This award highlights the program’s ability to facilitate
were planted over 22.33 hectares at ANJA. (304-3) biodiversity monitoring and management with minimal
costs on a continuous, long-term basis.
Moreover, our commitment extends to ANJAS, where
1,930 native seedlings were planted across 3.4 hectares, Starting in 2023, the PENDAKI program is embracing
and KAL, which saw the planting of 3,697 seedlings digitalization through the development of the PENDAKI
across 8.84 hectares. This initiative at KAL not only mobile phone application, which enhances the ease and
continues our 2022 program but also includes the efficiency of recording biodiversity observations. To raise
enhancement of riparian zones, forests, and peatlands, awareness about species presence in our estates, we are
highlighting our multifaceted approach to environmental utilizing social media to introduce these species to a wider
conservation. Additional planting efforts were carried audience. Additionally, we are creating flyers to familiarize
out at PPM and PMP, with 85 native seedlings planted people with the diverse species found in our areas. The
over 0.49 hectares and 350 seedlings over 2.24 hectares, PENDAKI website (www.pendaki.anj-group.co.id) was
respectively. (304-3) established to provide a comprehensive platform for
information sharing and engagement. We have just
These replanting initiatives are a testament to ANJ’s recently introduced the “PENDAKI Champions” initiative,
deep-seated commitment to environmental restoration recognizing individuals who are especially active in
and contributing to ecosystem health and diversity. reporting, consistent in submitting reports, and accurate
By actively engaging in these efforts, we are not only in identifying species, complete with photos, locations,
promoting the sustainability of our operational lands but names, and other details. Out of the 3,200 PENDAKI
also ensuring the conservation of vital habitats, acting observers, 60 individuals were selected as champions.
upon our responsibility towards the environment and These champions will take the lead in raising awareness
future generations. about the significance of biodiversity within their respective
regions. This program is voluntary, encouraging a sense
Further to our conservation initiatives, our biodiversity of community and commitment among our employees
team lead biodiversity monitoring efforts, supported and local residents in conservation efforts.
by our employees and local communities through field
surveys and camera trapping. Species identification An encyclopedia of wildlifedetailing the species
and recording are guided by the IUCN Red List, the encountered in our SMM and KAL estates was completed
Convention on International Trade in Endangered Species to further enrich our educational resources. We are
(CITES), and government regulations. Our conservation currently working on developing similar encyclopedias for
our sites in ANJAS.
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PENDAKI: REVOLUTIONIZING BIODIVERSITY
CONSERVATION WITH CITIZEN SCIENCE
FEATURE STORY
Two conservation staff members monitor biodiversity in our
conservation area in Southwest Papua, ensuring sustainable
management of the ecosystem
PENDAKI (Peduli Keanekaragaman Hayati – the oil palm sector. Over the past four years, the
Caring for Biodiversity) stands as a cornerstone PENDAKI system has yielded over 109,000 wildlife
of our Responsible Development initiatives, observations of more than 600 reliably identified
embodying our unwavering commitment to species. These achievements not only underscore
preserving ecosystems and conserving nature. the enhanced efficacy of biodiversity monitoring
To be successful in this regard, we need to but also contribute significantly to heightening
monitor wildlife population trends. Traditionally, awareness of biodiversity values among our
biodiversity monitoring is achieved by employees.
conducting species counts within specific areas.
However, for informed and adaptive plantation In 2022, we commissioned an independent
management, population-level monitoring assessment to gauge participant perceptions of
proves far superior. Yet, this method demands PENDAKI. The resounding sentiment was one of
extensive data collection, typically through pride in contributing to a company committed to
resource-intensive methods such as widescale sustainable operations, with a profound dedication
species surveys or camera trapping initiatives, to biodiversity and environmental stewardship.
all of which are costly and time-consuming. Building on this feedback, we initiated
collaboration with "PENDAKI Champions" – our
At ANJ, we have embraced a more cost-effective most active citizen scientists who consistently
and efficient approach rooted in citizen science: record more than one observation daily. Sixty
PENDAKI. Commencing in early 2019, PENDAKI individuals at each of the six estates where
has become a highly respected program PENDAKI operates were selected as Champions.
garnering enthusiastic participation from our Throughout 2023, we provided intensive training
employees. Over the past two years, external sessions, including a 4-day program at our
interest has also increased as we amplified Belitung Island training facility in May for our
communication surrounding the tangible Conservation Staff, focusing on both theoretical
outcomes and advantages of a citizen science- foundations and practical application of the
based biodiversity monitoring approach within PENDAKI Champion approach. Additional training
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FEATURE STORY
A PENDAKI Champion embraces digitalization using
the PENDAKI Champion application to enhance the ease
and efficiency of recording biodiversity observations
in November delved into statistical modelling team. Real-time data uploads eliminate delays
techniques based on utilizing the R programming between recording and analysis, thereby
language, which is required for statistical allowing ANJ’s conservation staff to continuously
computing to model results from PENDAKI. This track species populations against time-bound
training equipped our Head Office Conservation biodiversity targets that reflect the management
Team with transferable skills to support their quality of our HCV areas and estates while
ongoing professional development beyond their effectively mitigating biodiversity threats. Gaining
roles in supporting PENDAKI Champions. insight into the specific population dynamics
allows us to tailor our estate management to
In September 2023, the selected Champions the unique needs of each species to ensure their
started using our in-house smartphone-based protection and conservation.
application, developed by our Information dan
Communication Technology (ICT) team, to record PENDAKI demonstrates that biodiversity
sightings of specific indicator species, providing monitoring and conservation do not have to be
invaluable insights into population dynamics complicated. Despite being in its infancy, the
crucial for tailoring estate management app has already proven to be widely accepted
strategies to the unique needs of each species. and successful, with 84% of the PENDAKI
The PENDAKI Champion app offers an intuitive Champions consistently recording observations.
platform facilitating the recording of high-quality This dedication culminated in more than 4,500
statistical occupancy data for 25 pre-selected observations logged within the app between
target species tailored to individual estates, September and December 2023. These early
including the Critically Endangered orangutans successes suggest a promising future the
in our West Kalimantan plantation, tarsiers in PENDAKI Champion app. Developing our
Belitung, or birds of paradise in Southwest Papua. database through the addition of more species
By automating location tracking and observation records will only improve its utility, which we
input, the app ensures data integrity, enabling believe will serve as further justification for
accurate statistical analysis by our conservation others to adopt such an approach.
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Table 24. Spending on the Conservation Department in USD
Subsidiary 2023 2022 2021
ANJA 7,007 6,080 3,471
ANJAS 21,804 24,186 39,628
SMM 26,604 8,008 4,566
GSB 166 - -
KAL 61,647 25,642 26,389
PPM 13,844 9,898 3,866
PMP 21,392 36,441 25,904
ANJ (Southwest Papua) 53,162 32,278 319
ANJAP* - - 686
Total 205,628 142,533 104,828
Note:* There were no conservation activities at ANJAP in 2022-2023
Using Biodiversity Richness Valuation
BIODIVERSITY RICHNESS VALUATION 08 April 2024
BIODIVERSITY RICHNESS VALUE Shana Vida Gavron & João Frederico Berner
Dashboard PT. Kayung Agro Lestari, Indonesia
TOTAL CONSERVATION VALUE USD 180,123,022
SPECIES EXISTENCE VALUE
Aesthetic Value
USD 145.0m Carbon Value
Economic Value
INFERRED RICHNESS TREND
200
Birds
Invertebrates 150
Herbivores
USDm
Omnivores 100
Predators
Pl ants & Fungi 50
Fish & Amphibians
0
2019 2020 2021 2022 2023 Species Existence Value Impact Value Total Conservation Value
ENDANGERED WILDLIFE OÜ JUHKENTALI TN 8, 10132 TALLINN, ESTONIA WWW.ENDANGEREDWILD.LIFE
A snapshot of KAL Biodiversity Richness Value dashboard
ANJ operates within one of the largest biodiversity hotspots from Endangered Wildlife OÜ. This assessment utilized
in the world, Indonesia. Therefore, it is essential that our primary source data from PENDAKI, with information
sustainability agenda recognizes the importance of and current as of December 2023. This was also the first time
actively invests in biodiversity conservation initiatives. To that an assessment of this kind was conducted for an oil
justify ongoing and increased investment in conservation palm plantation. The valuation was carried out for the KAL
projects, it is essential that ANJ garners sufficient support estate, located in Ketapang Regency, West Kalimantan,
from its shareholders and communities. A Biodiversity and has been presented as a report which calculates the
Richness Valuation, which assigns monetary value to Total Conservation Value of the estate in USD.
biodiversity, serves this purpose.
The metrics used to determine the Total Conservation
In 2023, ANJ initiated its first extensive Biodiversity Value are categorized into four dimensions. The first
Richness Valuation, conducted by external evaluators metric, Carbon Value, relates to the carbon stores within
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the aboveground biomass of trees in the assessment which approximately 75% came from Species Existence
area. Aesthetic Value is the intrinsic value of biodiversity Value, wherein Economic Value to more than ten
generated by aesthetic appeal and improvements to the sectors was the dominant contribution to the value. The
quality of life brought about by species richness and remaining ~25% came from Impact Value, representing
the natural environment; the value is calculated as the the added worth derived sustainably through species
price a person is willing to pay for a product related to conservation and ecosystem management, factoring in
a species on e-commerce platforms. Economic Value various management practices and external influences.
comprises the direct contributions of biodiversity to the The Total Conservation Value was estimated at its
economy. Species Existence Value is the sum of Carbon, present value using a discount rate of 6.6%. The value is
Aesthetic, and Economic Value, while Impact Value is the not intended to represent a fair value for a buy and sell
added value generated by increasing species richness transaction, but rather represents the estimated value
through conservation projects, species management, to society and the environment over the next 30 years,
and sustainability initiatives. The Biodiversity Richness assuming the KAL plantation continues to be operated
Value Dashboard is presented below and shows various as currently practiced or improved, the KAL conservation
elements of the Total Conservation Value. areas continue to be managed with current practice
or better, and the biodiversity therein continues to be
The Biodiversity Richness Valuation provided useful protected.
insights for ANJ and its sustainability agenda. Among
the findings was the indication that the species richness The outcome of this assessment has provided ANJ with
among birds, plants and fungi at KAL significantly evidence of the significant value created by maintaining
increased after 2021, while richness values of and enhancing the biodiversity within our estates and,
invertebrates, omnivores, herbivores, predators, fish importantly, the contribution it makes to the economy,
and amphibians remained relatively constant in the society, and environment. By quantifying the financial
period 2019-2023. The Total Conservation Value for KAL value of flora and fauna, the Biodiversity Richness
is estimated to be USD 180.1 million or USD 12,979/ha, of Valuation serves as a compelling rationale for protection,
aligning conservation efforts with sound business
principles. The integration of biodiversity management
into corporate strategies presents a promising avenue
for sustainable development and financial growth. The
symbiotic relationship between natural biodiversity and
commercial cost savings offers a pathway to enhanced
returns for shareholders. By fostering the presence
of beneficial species like snakes and birds of prey,
companies like ANJ can capitalize on natural pest control
mechanisms, reducing operational expenses.
From an investor's standpoint, implementing biodiversity
management strategies adds a new dimension to
investment value, aligning financial gains with social
and environmental impact. Nevertheless, we believe
that in the future there will be opportunities to reflect
biodiversity's positive contributions in our financial
reporting. The utilization of tools like the PENDAKI
database allows for the quantification of biodiversity
impact, positioning ANJ as a leader in transparent
reporting and stakeholder engagement. Moving forward,
we hope to utilize these findings to empower us to
advance our sustainability agenda and conservation
strategies with greater efficacy and measurability,
especially in terms of monetary metrics.
The Pied Heron (Egretta picata)
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Forest Management and Protection
Our Sustainability Policy encompasses the principles • Legal action against illegal loggers, poachers, traders
of ‘No Deforestation, No Peat, and No Exploitation’ of endangered animals or other activities posing
(NDPE). We refrain from developing primary forests, environmental risks.
focusing instead on their preservation. In line with
RSPO protocols, areas independently recognized as We are committed to restoring any deforestation or forest
High Carbon Stock (HCS) will not be cleared for oil land conversions that occur in our area after January 1,
palm planting. Any development of identified HCS areas 2019, the date we committed to halting deforestation in
related to legacy instances will strictly follow RSPO our operations. This commitment was later formalized
standards. These commitments are a crucial part of our in our Sustainability Policy, dated October 31, 2020. We
strategy to minimize emissions from land-use changes also support and expect our Fresh Fruit Bunch (FFB)
and progress towards carbon neutrality. suppliers, particularly corporate suppliers, to adopt
the same commitment and adhere to the same cut-off
To ensure that there is no deforestation in our sites, date. Additionally, we encourage and expect our third-
conservation areas, and those of our suppliers, we party FFB smallholder suppliers to cease any illegal
employ various monitoring methods: deforestation and land conversion since December 31,
2020. Should they fail to meet this requirement, we will
• Socialization with surrounding communities to raise discontinue purchasing their FFB.
awareness and foster collaboration in conservation
efforts. A study and an independent reassessment revealed
• Conducting area-wide drone mapping at least once a that 2,958.51 hectares of High Carbon Stock (HCS)
year to assess land use and detect changes. area at SMM, PMP and PPM were cleared for oil palm
• Drone mapping of specific areas of interest when development between January 1, 2016, and December
questions arise or incidents occur, providing targeted 31, 2018. In response to this loss, we initiated our HCS
insights. Recovery Plan in April 2020. As part of this plan, we
• Real-time hotspot satellite monitoring, as performed designated a consolidated block of 3,518 hectares in one
by RSPO and other stakeholders, to detect potential of ANJ’s concessions in Southwest Papua as a recovery
fire occurrences. site and a form of remediation. In 2021, we added 8.3
• SMART Patrol Method: Our security guards patrol our hectares of forest to this block. In 2022, we successfully
planted area and the area inside our borders, while obtained formal support from the government of
our conservation area is patrolled by our conservation Maybrat Regency to carry out our HCS Recovery Plan.
personnel and well-trained security guards. Throughout 2023, diligent oversight of these initiatives
• Analytical productivity evaluations for each persists, aiming primarily to rehabilitate and enrich the
smallholder provider to assess plausibility of no biodiversity of the assigned recovery area, significantly
deforestation. If results are questionable, ground contribute to the absorption of carbon and develop
checks, including drone mapping, are conducted. a replicable sustainable conservation framework.
• Continuous satellite monitoring provided by Global (13-4-4) (304-3)
Forest Watch, combining GLAD (Global Analysis
and Discovery) and RADD (Radar for Detecting We adhere to the precautionary principle in all our
Deforestation) systems to identify deforestation within operations. The Roundtable on Sustainable Palm Oil’s
our specified area of interest. The system alerts us to (RSPO) New Planting Procedure (NPP) mandates the
potential deforestation, triggering field investigations. completion of various studies and verification activities
The total area covered by this system is 995,200 before the establishment of new oil palm plantations.
hectares, with a coverage radius of 10 kilometers These include the Social and Environmental Impact
from our area boundaries. Assessment (SEIA), High Carbon Stock Approach (HCSA)
• Satellite images obtained from Landsat and Sentinel assessment, Land Use Change Analysis (LUCA), soil
1&2 are processed using algorithms developed by suitability survey and Greenhouse Gas (GHG) emissions
ANJ in cooperation with experts from the University evaluations, all of which are conducted by external
of Amsterdam. and independent specialists. The results of these
• Involvement of environmental officials and police to assessments must be reported to the RSPO before any
combat illegal logging, poaching and land clearing by new development commences. We commit to developing
fire (slash and burn practices) and careless behavior only low-risk areas, while high-risk areas are set aside
that may result in forest fires. for conservation purposes. (2-23)
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Additionally, before any land clearing and planting can greenhouse gas emissions. These fires are often ignited
occur, an assessment and approval of High Conservation by slash-and-burn land clearing practices still employed
Value (HCV) areas, through the High Conservation by some businesses, smallholder farmers, and local
Value Resource Network (HCVRN), is required. communities. Fires originating outside our operational
Independent HCV assessors, who are accredited by the boundaries can quickly spread and encroach upon our
HCVRN’s Assessor Licensing Scheme (ALS), evaluate areas. Additionally, vegetation fires can occur in the
these areas. The Roundtable on Sustainable Palm Oil planting areas of our smallholder suppliers, further
(RSPO) mandates that assessors are accredited by emphasizing the need for vigilant fire prevention and
the HCVRN’s ALS. This requirement extends to all our management strategies across the entire supply chain.
vendors, ensuring a consistent and rigorous approach
to the identification and protection of HCV areas in our Our Sustainability Policy is committed to Zero Land
operations and supply chain. (304-3) Burning, in line with current laws and regulations, as
well as the standards set by the RSPO, ISPO and ISCC.
As of January 1, 2016, we do not initiate new activities We also implement a stringent selection process for our
on peatlands of any depth, and any newly identified suppliers to ensure that they adhere to the RSPO and
peatlands within our undeveloped concession areas are ISPO criteria in their operations. Our objective for forest
immediately designated as conservation zones. This fire prevention and management is to have no fires in our
policy aligns with the Roundtable on Sustainable Palm concession, plasma and conservation areas.
Oil (RSPO) regulations and the Principles & Criteria of
November 15, 2018, which prohibit the development and We conduct fire risk assessments based on historical
mandate the sustainable management of peatlands. data and perceived vulnerability to identify areas with
Government regulations also require that peatlands be high fire risk. Based on this assessment, our Ketapang,
managed as High Conservation Value (HCV) areas due West Kalimantan (KAL) operation has been designated
to their environmental functions and significance in the as a priority for fire prevention and management.
absorption of greenhouse gas (GHG) emissions. However, ongoing demographic and economic growth,
coupled with global warming, increases the risk of fire in
However, peatland areas planted prior to 2016 remain other operations, such as ANJAS, followed by PPM, PMP,
operational at our ANJAS and KAL estates. Together, ANJAP, SMM and ANJA, in order of risk level.
these estates encompass 9,606.3 hectares of peatland,
representing 48% of the total plantation area. We have Based on the results of our fire risk assessment, we have
voluntarily conserved 657 hectares of peatland in KAL developed an Integrated Fire Management (IFM) system,
and 200 hectares in ANJAS. The remaining areas were which is a cross-departmental and fully integrated approach
planted before the implementation of the peatland encompassing prevention, mitigation, preparedness,
regulations and are managed in accordance with RSPO early detection action, and response. As forest fires are
best practices, under strict government regulations and most commonly caused by human activities, our primary
oversight. focus is on prevention and mitigation strategies. To this
We employ stringent water management and control end, we conduct community socialization efforts to raise
systems in our peatland areas to maintain stable water awareness about fire safety and risks. Additionally, we
levels and prevent peat bogs from drying out or flooding. invest in community development initiatives to transition
These systems include water gates, stop bunds, closed people away from slash-and-burn farming practices,
canals, and monitoring wells. Peat mounding is also aiming to minimize the occurrence of uncontrolled forest
utilized to prevent plants from becoming waterlogged. fires, particularly during drought seasons.
Effective water management in our peatland areas is
crucial for reducing the risk of fire, minimizing peat For early identification of fire hotspots, we utilize
oxidation, and preventing ground subsidence, thereby satellite-based monitoring, complemented by local
contributing to the overall health and sustainability of monitoring through fire towers and Unmanned Aerial
these ecosystems. Vehicles (UAVs). The Integrated Fire Management (IFM)
system not only monitors hotspots but also provides
daily, weekly, and monthly fire hotspot prediction
Fire Management and Prevention reports to our estates. As part of our fire preparedness
measures, we maintain a fully trained Rapid Response
Wildfires present a significant threat to our palm team on standby to address fire occurrences when fire
oil crops, especially during prolonged droughts or warnings are detected. Additionally, we have established
El Niño events, leading to substantial financial and an incident management team (IMT), which is activated
environmental impacts, as well as high levels of as soon as an issue is reported, ensuring a swift and
coordinated response to fire incidents.
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Fire drill for employees and local communities around our
Southwest Papua (PPM) operation.
To complement this, we also have firefighting systems forest fire brigade. This comprehensive approach
installed across all our estates. Each location is not only ensures coordinated and effective fire management, with
furnished with its own team of trained and professional the support and participation of the broader community.
firefighters, but also with a range of specialized
equipment including fire engines, and portable water Prolonged drought significantly increases the risk of
pumps. Some specific estates also have rubber boats for forest fires, posing a substantial threat to ecosystems
rapid and efficient response capabilities. Moreover, ANJ and communities. Despite these challenges, ANJ
adheres to stringent safety standards for all firefighting has successfully prevented forest fires within our
gear, ensuring the safety of both our personnel and the areas in 2023. Our comprehensive strategy, which
communities we serve. In line with our commitment to integrates technical mitigation measures, community
community welfare, our firefighting capabilities and empowerment initiatives, and data-driven monitoring,
resources often extend beyond our premises, assisting has been instrumental in effectively addressing and
in combating flooding and other emergencies in mitigating this threat. Even amidst projections indicating
surrounding communities, showcasing ANJ’s dedication a potential increase in the intensity of the current El Niño
as a responsible community partner. in the future, we remain hopeful that we can persist in
operating our business while safeguarding our natural
To ensure the sustainability of our fire management resources.
measures, we actively involve stakeholders and local
communities in the process. This involvement is
facilitated through the smallholder farmer firefighting
groups (Kelompok Tani Peduli Api/KTPA) and the Desa
Mandiri programs, which offer financial incentives to
villages that implement fire prevention and management
efforts. Additionally, we collaborate with local authorities,
communities, and law enforcement agencies, including
police and military forces, as well as local fire brigades
that have received specialized training from the Ministry
of Environment and Forestry’s Manggala Agni trained
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PRIORITIZING RESPONSIBLE
WATER MANAGEMENT
WE ACKNOWLEDGE THE
IMPORTANCE OF RESPONSIBLE
WATER MANAGEMENT,
AS WATER IS A LIMITED,
SHARED, AND ESSENTIAL
RESOURCE. THE COMMUNITIES
SURROUNDING OUR
OPERATIONS RELY ON WATER
FOR IRRIGATING THEIR CROPS
AND MEETING THEIR DAILY
SANITATION AND DRINKING
NEEDS. THEREFORE, IT IS
CRUCIAL TO ENSURE THAT THE
WATER WITHDRAWN FOR OUR
COMMERCIAL ACTIVITIES DOES
NOT COMPROMISE THE ACCESS
OF LOCAL COMMUNITIES AND
STAKEHOLDERS TO POTABLE
WATER."
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Water reservoirs in KAL serve as protective
barriers in wildfire risk management as well as
for drip fertigation purposes
Furthermore, wastewater and effluents from our
operations must not contaminate the water used by
the local community. Water scarcity or contamination
can lead to social conflicts within or between local
communities and our company, highlighting the
importance of sustainable water management practices
in maintaining harmony and ensuring the well-being of
all stakeholders.
Our Sustainability and Environmental Policies include
commitments to ensure that adequate, high-quality water
is available for our operations and, more importantly, the
surrounding communities and stakeholders. We have
set a goal achieve a water intensity of 1 ton of water per
ton of Fresh Fruit Bunches (FFB) processed. In 2023, our
water intensity per ton of FFB processed was 0.97 tons
(or cubic meters) of water. (POJK51-F.8, 303-1)
In pursuit of comprehensive and strategic water
management solutions, ANJ has undertaken the
construction of water reservoirs in the KAL area, which
are interconnected by canals to enhance wider access
to water sources. This project serves multiple critical
purposes: it acts as a preventive measure against fires,
plays a vital role in conservation efforts and serves as a
reliable source of water for the Company and surrounding
communities. This initiative is a key component of our
holistic strategy designed to mitigate the adverse effects
of the El Niño phenomenon. By ensuring the availability
of water, we aim to effectively counteract the extended
periods of drought brought about by El Niño, thereby
safeguarding our ecosystems and supporting the
communities dependent on these water resources. This
approach underscores our commitment to sustainable
environmental stewardship and our proactive measures
to address the challenges posed by climate change.
(POJK51-F.8)
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Table 25. Water Intensity (Palm Oil) (POJK51-F.8)
Improvement compared to base year of 2020
Water Usage
Year M /Ton FFB
3
M3/Ton CPO
(M3) Water intensity per ton Water intensity per ton
FFB CPO
2023 1,334,672 0.971 4.71 (16.27)% (17.02)%
2022 1,492,747 1.088 5.41 (6.23)% (4.53)%
2021 1,384,622 1.090 5.27 (6.03)% (7.05)%
Currently, our monitoring and reporting of water impacts sustainably supply our mills and factories. To monitor
are focused exclusively on our Palm Oil business unit, and measure our water withdrawal, we have installed
where this issue is considered material. Water usage in flowmeters across our locations. This requires oversight
our sago and edamame units, as well as in our residences and control beyond our jurisdictional limits and
and offices, is not included in this report. (303-1) highlights the necessity for a landscape-level approach
to environmental and ecosystem management. After
Our sole source of water is fresh surface water use, the wastewater is discharged into surface water in
with total dissolved solids below 1,000 mg/L, which compliance with regulatory requirements or in the case
comprises surface water, rainfall reservoirs, and of Palm Oil Mill Effluent, (POME), it is treated and reused.
rainwater harvesting. All our freshwater is extracted (POJK51-F.8,303-1, 303-2)
from surface water sources, primarily rivers, that can
Table 26. Total Water Withdrawal, Discharge and Consumption (in megaliters per year)
(303-3, 303-4, 303-5, POJK51-F.13)
Water Usage
Accumulated at
Total
Year WTP & Distribution
withdrawals Consumption for Consumption for Compost
for Domestic Total Discharge
processing and land application
2023 3,012.07 1,677.40 279.52 851.37 203.79
2022 2,452.43 959.68 694.37 735.21 63.17
2021 2,156.85 772.23 478.84 898.29 7.50
We ensure the availability of water and assess the indicates that our operations are currently not in areas
capacity of watersheds to maintain normal water flow that are prone to significant water scarcity or supply
and manage any changes in water levels. Annually, we challenges. (303-1)
examine water availability in the river basins of all our
operating sites as part of our business risk review. This The ratio of total water withdrawals to renewable water
risk assessment helps in formulating short- and long- supplies at most of our locations is below 10%, indicating
term strategies for water management and addressing a low risk of water stress. However, at our vegetable unit,
challenges posed by extreme weather conditions. We GMIT, the ratio falls within the range of 20-40%, which
also consider the overall trends and risks related to signifies a medium risk of water stress. Based on this
water at the national level. Based on these insights, assessment, we have concluded that none of our regions
we develop and implement a comprehensive mitigation are currently experiencing water stress or are at a high
strategy, which includes water catchment in arid areas to extremely high risk of water stress. This information is
and the construction of water gates to minimize flooding. crucial for our water management strategies and helps
(303-1) us ensure the sustainable use of water resources in our
operations. (303-2)
According to the World Resource Institute’s Water Risk
Atlas, all of our locations are situated in regions that
are classified as having a low risk of water stress. This
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A Staff monitors water flow in the water tank
at our palm oil mill.
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To mitigate the risk of water pollution, we implement management practices, such as avoiding planting on
several measures (POJK51-F.14): steep slopes or in flood-prone areas, in line with the
Roundtable on Sustainable Palm Oil (RSPO) criteria.
1. Wastewater Treatment: We treat our wastewater Furthermore, we engage local communities in efforts
discharge in treatment plants to ensure that it meets to maintain water quality by encouraging them not to
regulatory quality standards before being released pollute water bodies with domestic waste. By promoting
into the environment. these practices, we aim to ensure the sustainable use
2. Controlled Landfills: We construct controlled landfills, of water resources in our supply chain and surrounding
with no open dumping, located far away from water communities. (303-1)
sources to prevent contamination.
3. Fertilizer Application: We enforce the sensible The discharge of water from mill processing is routinely
application of fertilizers to avoid runoff, which can measured in our operations, while the discharge of
lead to water pollution. water from home consumption is currently neither
4. River Buffer Zones: We avoid planting in river buffer measured nor estimated. Our standard approach to
zones to prevent erosion and runoff that could water discharge follows regulations set by regulatory
contaminate water bodies. agencies. In the absence of specific requirements from
a regional government, we adhere to the standards
To preserve water quantity, we undertake various water established by the Ministry of Environment and Forestry
conservation efforts: and the Ministry of Health, taking into account the
baseline from the Environmental and Social Impact
1. Reservoirs and Rainfall Collection: We build reservoirs Assessment (AMDAL) document for the specific area.
and implement rainfall collecting systems to store
water for use during dry periods. Reclaimed water is also required to meet strict
2. Water Reuse: We reuse water in our production regulatory norms and standards. By comparing water
process wherever possible to reduce the need for samples collected every 3 to 6 months to the baseline
freshwater withdrawals. from the AMDAL evaluation, we ensure compliance
3. Protection and Maintenance of Water Sources: We with regulatory criteria and specifications, thereby
protect and maintain water sources to ensure their maintaining our commitment to responsible water
sustainability and availability for future use. management and environmental stewardship. (303-2)
4. Infiltration Wells: We create infiltration wells to
maintain groundwater storage and recharge aquifers. Within the ANJ Group, we operate six oil palm
plantations, five of which have palm oil mills. During the
Our water management data collection method takes milling process, in addition to producing Crude Palm Oil
a comprehensive approach for better precision and (CPO) as the primary product, we also generate Palm
efficiency. We start with daily/monthly logging of relevant Oil Mill Effluent (POME), a liquid waste. POME contains
data points as the basis of our monitoring. Monthly nutrients essential for plant growth and has the potential
reporting helps us track trends and deviations from to produce biogas, which can be converted into electrical
benchmarks. Despite manual data mining constraints, energy.
we continuously assess all data points for continous
improvement as we are aware that periodic data analysis After receiving technical approval from the government
provides deeper insights and helps us to have informed through a review process, POME is utilized as a source
decisions and sustainable resource optimization. (303-1, of plant nutrition in our plantation activities. The applied
303-2) POME meets the required quality standards, including a
Biological Oxygen Demand (BOD) of below 5,000 and a
These water management projects are executed pH range of 6-9, ensuring its safe and beneficial use in
independently by ANJ, demonstrating our commitment our operations. We track the quality of water we release
to responsible water use and the preservation of water by assessing it Biological Demand (BOD), a metric that
resources. (303-2) reflects the pollutant load, including substances like
ammonia and nitrates, in the water. All water discharged
Our Fresh Fruit Bunch (FFB) suppliers are smallholder by ANJAS adheres to quality criteria established by the
farmers who do not operate any water-consuming environmental regulators, maintaining a BOD level of
processing mills, and we believe that their water 100 mg/L. Our primary goal is to reduce the pollutant
consumption from plant cultivation operations is concentration even further, aiming for a level below the
not currently measurable or manageable. However, environmental compliance threshold of 95 mg/L. As of
we actively promote best agricultural practices and 2023, our BOD stands at 91 mg/L, demonstrating our
sustainable palm oil principles to our independent progress towards surpassing regulatory standards.
smallholder farmers. This includes good water (303-2)
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Among the palm oil mills in the ANJ Group, only the 2022, we initiated a trial to use geotubes to capture
ANJAS mill discharges Palm Oil Mill Effluent (POME) sludge from POME. The captured sludge has been tested
into surface water bodies. In 2023, we used real-time and found to contain high nitrogen content, making it
monitoring through the installment of the SPARING suitable for use as an organic fertilizer.
system at the waste outlet before disposal. The SPARING
system is an automated system for monitoring, recording, Before being discharged into surface water streams or
and reporting effluents, as required by the regulations of ponds, domestic wastewater is treated at a wastewater
the Ministry of Environment and Forestry. (303-2) treatment plant to meet regulatory quality standards.
In some areas, non-polluting and non-contaminating
In addition to monitoring wastewater characteristics, domestic wastewater is released directly, without
ANJ conducts monthly analyses of wastewater in an treatment.
accredited laboratory. This practice ensures that our
wastewater management complies with environmental Throughout 2023, all operating units maintained 100%
standards and regulations, reaffirming our commitment compliance regarding water-related regulations, with no
to responsible environmental stewardship. (303-2) instances of non-compliance reported.
Palm Oil Mill Effluent (POME) from our palm oil mills is
processed in anaerobic effluent ponds. After treatment,
the POME is discharged into final aerobic effluent ponds.
In two of our concessions, this effluent is utilized for
compost processing, while in the remaining concessions,
it is applied to land to provide additional nutrients. In
POME from our palm oil mill in SMM
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PEOPLE 120 PT Austindo Nusantara Jaya Tbk.
Page 123
Our Diverse and Inclusive Workforce 122
Fair And Responsible Recruitment Practices 125
Empowering Employees’ Growth and Skills 126
Championing Diversity and Women’s
132
Empowerment
Protecting the Rights of Workers and Children 135
Protecting the Health and Safety
138
of Our Workers
Engaging and Empowering Local Communities 150
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OUR DIVERSE AND INCLUSIVE WORKFORCE
THE ANJ SUSTAINABILITY or 93.3%, hold permanent positions, indicating a strong
core of long-term workers, whereas 671 employees, or
POLICY PLACES A SIGNIFICANT 6.7%, are engaged through fixed-term contracts, offering
EMPHASIS ON THE WELL-BEING flexibility and adaptability in our workforce management.
OF OUR WORKFORCE. A closer look at our business segmen shows a
WE PRIORITIZE THE HEALTH concentrated workforce distribution, with the palm oil
sector employing the majority of our workers, 89.9%.
AND WELFARE OF OUR This is followed by our frozen vegetable division, which
EMPLOYEES, STRIVING TO accounts for 6.6% of our workforce. Our sago unit
employs 2%, and the remaining 1.5% of our staff is
ENSURE THEY ARE PROVIDED spread across various other business segments and
WITH AN OPTIMAL WORKING corporate offices, highlighting the diverse nature of our
operations.
ENVIRONMENT. THIS
ENCOMPASSES A COMMITMENT In addition to our direct employment figures, our
operations are supported by 2,466 outsourced employees,
TO MAINTAINING A SAFE an increase of 39% compared to that of last year. These
AND HEALTHY WORKPLACE, workers support the Company’s operations in security
services, road, garden and housing maintenance, and
WHERE EACH INDIVIDUAL seasonal plantation maintenance. It is noteworthy that,
IS APPRECIATED AND THEIR the bulk of our harvesting activities are carried out by
our permanent workers, underscoring our commitment
RIGHTS AS WORKERS ARE to providing stable employment in the communities
UPHELD." where we operate. (2-8)
The Company is firmly committed to upholding fair labor
practices, ensuring that all employees, regardless of
gender, receive compensation that meets or exceeds the
Furthermore, we foster a culture that values continuous minimum wage as mandated by government regulations.
learning and personal development throughout an This commitment encompasses every tier of our
individual’s career. Our dedication to these principles workforce, ensuring that even the entry-level salaries in
reflects our belief that the success of our organization each of our operational sites adhere to or surpass the
is intrinsically linked to the well-being and growth of our government’s established minimum wage. The ratio of
employees. the lowest employee salary across all operational areas
to the regional minimum wage is 1:1 (100% compliance).
At year-end, on December 31, 2023, ANJ’s workforce By adhering to this principle, the Company not only
totaled 9,943 individuals. Among this number, 8,337 complies with legal standards but also reinforces its
workers, or 83.8%, of the workforce are male, while dedication to the welfare and equitable treatment of its
1,606, or 16.2%, are female. The composition of our workforce. (13.20.1, POJK51-F.20)
employment contracts reveals that 9,272 employees,
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Table 27. Total Number of Employees by Gender, Contract Type and Business Location in 2023 (POJK51-C.3.b)
Female Male
Location Grand
Contract Permanent Total Contract Permanent Total Total
PT Austindo Nusantara Jaya Tbk. Jakarta 0 9 9 0 20 20 29
PT Austindo Nusantara Jaya Boga Jakarta 1 0 1 4 0 4 5
North
Regional Office Medan 3 31 34 5 62 67 101
Sumatra
PALM OIL
North
PT Austindo Nusantara Jaya Agri 0 212 212 0 1,189 1,189 1,401
Sumatra
PT Austindo Nusantara Jaya Agri North
0 202 202 0 1,068 1,068 1,270
Siais Sumatra
Bangka
PT Sahabat Mewah dan Makmur 0 328 328 3 1,846 1,849 2,177
Belitung
West
PT Kayung Agro Lestari 0 366 366 3 1,753 1,756 2,122
Kalimantan
South
PT Galempa Sejahtera Bersama 0 2 2 1 15 16 18
Sumatra
Southwest
PT Putera Manunggal Perkasa 4 78 82 29 966 995 1,077
Papua
Southwest
PT Permata Putera Mandiri 2 39 41 3 827 830 871
Papua
SAGO
Southwest
PT ANJ Agri Papua 5 12 17 40 145 185 202
Papua
EDAMAME
PT Gading Mas Indonesia Teguh East Java 294 18 312 274 72 346 658
RENEWABLE ENERGY
Bangka
PT Austindo Aufwind New Energy 0 0 0 0 12 12 12
Belitung
Grand Total 309 1,297 1,606 362 7,975 8,337 9,943
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Table 28. Employee Composition (POJK51-C.3.b, 2-7)
2023 2022 2021
Total Total Total
Head Office Jakarta 20 9 29 21 9 30 20 10 30
Palm Oil 7,770 1,267 9,037 7,436 1,273 8,709 7,045 1,321 8,366
By Segment
Sago 185 17 202 244 14 258 218 12 230
Others 362 313 675 290 271 561 227 165 392
Total 8,337 1,606 9,943 7,991 1,567 9,558 7,510 1,508 9,018
Director 9 3 12 10 4 14 8 4 12
General Manager (GM) 25 4 29 26 4 30 26 4 30
By Position
Manager 203 25 228 202 27 229 191 29 220
Staff 313 77 390 293 69 362 292 63 355
Workers 7,787 1,497 9,284 7,460 1,463 8,923 6,993 1,408 8,401
Total 8,337 1,606 9,943 7,991 1,567 9,558 7,510 1,508 9,018
Doctoral Degree 0 0 0 1 1 2 - 1 1
Master's Degree 12 7 19 12 7 19 14 9 23
Bachelor's Degree 652 168 820 596 136 732 524 123 647
By Education
Diploma 122 48 170 122 52 174 116 46 162
Senior/Vocational
3,038 565 3,603 3,064 483 3,547 2,877 410 3,287
High School
Other 4,513 818 5,331 4,196 888 5,084 3,979 919 4,898
Total 8,337 1,606 9,943 7,991 1,567 9,558 7,510 1,508 9,018
Contract Workers 362 309 671 370 276 646 1,037 226 1,263
Employment
Status
Permanent Staff 7,975 1,297 9,272 7,621 1,291 8,912 6,473 1,282 7,755
By
Total 8,337 1,606 9,943 7,991 1,567 9,558 7,510 1,508 9,018
Over 55 86 14 100 61 17 78 42 9 51
41-55 2,137 628 2,765 1,886 539 2,425 1,695 489 2,184
By Age
25-40 4,767 795 5,562 4,597 832 5,429 4,388 868 5,256
18-24 1,347 169 1,516 1,447 179 1,626 1,385 142 1,527
Total 8,337 1,606 9,943 7,991 1,567 9,558 7,510 1,508 9,018
Note: All personnel data are collected from each business unit based on headcounts at the end of the reporting period for storage and analysis at the Jakarta headquarters.
In 2023, ANJ experienced a notable expansion in its the commencement of full commercial operations in
workforce, with the addition of 385 employees by the 2021, signaling a strategic expansion of our activities in
end of the year. This growth is primarily attributed to the this sector. These developments are reflective of ANJ’s
recruitment of new workers for our palm oil operations ongoing commitment to scaling its operations and
in Southwest Papua, an area poised for heightened enhancing its production capabilities across different
activity as the plantation is fully-matured. Additionally, business units, aligning with our strategic goals, and
our vegetable business unit has seen a considerable responding to the evolving demands of our markets.
surge in employment figures. This uptick is linked to
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FAIR AND RESPONSIBLE RECRUITMENT PRACTICES
(13.20.1)
Our staff and harvesting workers in PMP,
ANJ has established a comprehensive and ethical Southwest Papua.
recruitment policy that reflects the organization’s
commitment to integrity, fairness and respect for all
individuals. This policy is designed to guide both internal
recruitment practices and the selection of employment and clarity regarding the terms of employment,
agencies used to recruit workers. including roles, responsibilities and rights.
• Application to Employment Agencies: ANJ’s ethical
Key aspects of ANJ’s recruitment practices include: recruitment standards extend to any employment
• Ethical Recruitment Policy: ANJ adheres to an ethical agencies engaged in recruiting workers on behalf of
recruitment policy that emphasizes the fair treatment the Company. These agencies are required to comply
of all candidates and employees. This policy covers a with ANJ’s policies and commitments, ensuring a
broad range of practices to ensure compliance with uniform standard of ethical recruitment.
ethical standards and legal requirements. • Addressing Non-Compliance: ANJ has established
• Recruitment Fees: The policy clearly states that ANJ mechanisms to identify and address instances of
does not charge recruitment fees to job applicants. non-compliance with its recruitment policies and
This practice ensures that employment opportunities commitments. This includes regular audits, feedback
are accessible to all individuals without financial channels for employees and applicants, and corrective
barriers, promoting equal opportunity. action plans to remedy any issues identified. Non-
• Identity Documents: ANJ does not withhold any compliance is taken seriously, with appropriate
personal identity documents, such as passports or ID measures taken to prevent recurrence.
cards, by the Company or any employment agencies
acting on its behalf. Through these practices, ANJ demonstrates its
• Written Contracts in Understandable Language: dedication to ethical recruitment, ensuring that
Under ANJ’s policy, all workers are provided with all individuals are treated with dignity and respect
written employment contracts in a Bahasa or dual throughout the recruitment process. The organization’s
language in Bahasa and English, where in general approach not only aligns with legal and ethical standards
our employees understand the use of Bahasa in but also contributes to a positive and inclusive workplace
communicating. This practice ensures transparency culture.
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EMPOWERING EMPLOYEES’ GROWTH AND SKILLS
(POJK51-F.22)
RECOGNIZING OUR EMPLOYEES
AS OUR MOST PRECIOUS
ASSETS, WE PLACE A
SUBSTANTIAL EMPHASIS
ON THEIR TRAINING AND
CAREER ADVANCEMENT. OUR
OBJECTIVE IS TO FACILITATE
THE ENHANCEMENT OF
THEIR SKILLS, SUPPORT
THEM IN ACHIEVING THEIR
PROFESSIONAL ASPIRATIONS
AND ENSURE THEY EXCEL IN
THEIR ROLES. TO THIS END,
WE OFFER COMPREHENSIVE
TRAINING AND PROFESSIONAL
DEVELOPMENT PROGRAMS
TAILORED TO MEET THESE
GOALS. "
These initiatives commence from the moment a new higher rate of turnover. Moreover, such disparities in
employee joins the Company and continue throughout access can undermine the effectiveness of our talent
their tenure with us. This sustained investment in management and succession planning efforts, leading
professional growth not only contributes to the personal to an unbalanced distribution of knowledge and skills
development of our employees but foster a skilled and across the Company. Consequently, it is our priority to
competent workforce, capable of driving the success and guarantee that all employees, regardless of their role or
innovation of our operations. level within the organization, have equal opportunities
to participate in training and professional development
As an organization that prides itself on having a diverse programs. This is fundamental in fostering a culture of
workforce, we understand the critical importance inclusivity and continuous learning, ensuring that every
of ensuring equitable access to training programs. member of our team is empowered to reach their full
Inequities in training opportunities can significantly potential and contribute effectively to our collective
affect employee job satisfaction and contribute to a success.
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We place a strong emphasis on self-development
through self-learning initiatives, advocating for a culture
of lifelong learning that empowers our employees to
continually enhance their skills and knowledge. This
approach not only aids in personal development but also
aligns with our strategic goals by building the Company’s
capacity and leadership potential from within.
Promoting from within is a key component of our talent
management strategy and, as such, we prioritize the
development of our current employees over hiring new
recruits. Targeted training and development programs
are instrumental in this process, as they help to improve
the competencies of our employees, facilitating their
career progression while also bolstering the strategic and
operational capabilities of the Company. Through these
efforts, we aim to ensure that our workforce remains
agile, skilled and prepared to meet the challenges of the
future, reinforcing our commitment to both individual
growth and organizational success. (POJK51-F.18)
Recognizing the pivotal role of training and education
in both personal and professional development, we
established the ANJ Learning Center (ALC) within a
17-hectare section of our Belitung operations in 2014.
The ALC is a state-of-the-art facility, equipped with
dedicated spaces designed for teaching and studying,
a comprehensive library and accommodation facilities
capable of hosting up to 80 individuals. While the primary
focus of the ALC is to facilitate our internal training
programs, we also extend its services to external
parties. This includes offering the venue for training
sessions, educational events and other developmental
activities to our suppliers, business partners and the
Our vision is to cultivate a fair and inclusive working wider community. By doing so, we not only invest in
environment that not only encourages but actively the growth and development of our own employees but
supports the individual growth of every team member. also contribute to the broader ecosystem in which we
This is implemented by providing employees with access operate, fostering a culture of continuous learning and
to comprehensive training that equips them with both the development that benefits all stakeholders involved.
hard skills required for their specific job functions and
the soft skills necessary for effective communication,
leadership and teamwork. Regular training sessions are Learning and Development Program
designed to enhance employee motivation, foster loyalty
To ensure our employees’ growth and development align
and improve performance over time, thereby creating
with their personal goals and the Company’s objectives,
a positive feedback loop with mutual benefits for the
we offer targeted training programs. These programs are
individual and the Company.
created based on a combination of assessments, which
include the Company’s needs, individual development
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plans and job-level competency dimensions. Our training the Company, this program prepares employees to
initiatives are designed to enhance job-specific technical assume leadership roles across various levels of
competencies, develop soft skills such as leadership the organization. It focuses on developing leadership
and communication and ensure compliance with both qualities, decision-making capabilities and the ability
national and international industry standards. to manage and inspire teams effectively, ensuring a
robust leadership pipeline for the future.
The training provided by ANJ falls into five distinct • Certification program: Aimed at validating and
categories: standardizing the technical proficiency of employees
• Core training: This foundational training is compulsory in specific job functions, this program offers
for all employees, encompassing essential knowledge certifications that recognize the mastery of particular
about the Company’s values, code of conduct and skills. It ensures that our workforce meets both the
safety protocols. It aims to ensure that every team Company’s and industry’s standards of excellence,
member understands and adheres to the principles contributing to our overall competitiveness and
and standards that define our corporate culture and quality of output.
operational safety requirements.
• Technical training: Focused on enhancing the Through these diverse training categories, ANJ
technical skills and capabilities of our employees, is committed to nurturing a culture of continuous
this training is tailored to improve performance improvement and the aspiration of excellence. By
and proficiency in their respective roles. It covers a investing in our employees’ professional and personal
wide range of topics, from operational techniques to development, we not only enhance their career
advanced technological applications, ensuring our prospects but also ensure that our organization remains
workforce is competent and up to date with industry agile, competitive, and capable of achieving its long-term
developments. goals.
• Soft skills training: Recognizing the importance of
collaboration within a corporate environment, this Within our training program framework, the involvement
training aims to bolster teamwork, communication of Company leaders and subject matter experts (SMEs)
and organizational skills. It is designed to enhance is integral to the success and effectiveness of our
employees’ ability to collaborate efficiently both initiatives. These SMEs are individuals-who have deep
within the company and in interactions with external knowledge, skill and experience in a particular field or
stakeholders, fostering a cohesive and productive subject due to their educational background or related
work environment. work experience in the field they master. Leaders and
• Leadership and supervisory program: Targeted SMEs are entrusted with the critical responsibility of
at nurturing the next generation of leaders within actively participating in the development of our team
members and employees across the board. (404-2)
Table 29. Training Hours by Training Type in 2023 (POJK51-F.18)
Total Training
Technical Skills Soft Skills Certification
Hours
By Employee Category
Non-staff 15,454 3,937 1,336 20,727
Staff 16,237 5,489 2,069 23,794
Manager 1,184 1,480 472 3,136
General Manager/Regional
372 447 104 819
Manager/Group Head
Boards of Directors 142 134 - 380
By Gender
Male 27,666 9,904 3,390 40,960
Female 5,721 1,583 591 7,895
TOTAL 33,388 11,487 3,981 48,855
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An Estate Assistant Manager conducts a field training for
all foremen, explaining how to plan harvesting to achieve
the target.
A cornerstone initiative aimed at bolstering and new trainees, among whom three are women. This intake
enhancing the capabilities of our team members across reflects our ongoing commitment to enhancing a diverse
all levels, from staff to general manager, is the Individual and inclusive environment that values and develops
Development Plan (IDP). This program stands out for its talent from varied backgrounds and perspectives.
structured and systematic approach to both technical (404-2)
and soft skill enhancement, tailored to the individual
employee. What sets the IDP apart is its emphasis on In 2023, we continued our Managerial Development
facilitating direct interaction between employees and Program (MDP), an array of training sessions designed for
their supervisors, who provide mentorship and guidance managers and assistant managers within the Company.
to help participants elevate their job performance and The MDP is a systematic and thorough initiative aimed at
attain their professional objectives. Additionally, the bolstering a wide range of skills, including intrapersonal
program is founded on the participants’ Key Performance and interpersonal abilities, leadership qualities and
Indicators (KPIs), ensuring alignment with their personal business/management expertise. This program is
goals. Each department is allocated a specific training developed to cultivate enhanced leadership capabilities,
budget, allowing for the flexibility to address its unique foster a collaborative work ethic and improve problem-
developmental requirements effectively. (404-2) solving skills. By focusing on these critical areas, the
MDP ensures that managers and assistant managers are
Moreover, since 2003, ANJ has conducted the well-equipped to excel in their roles and meaningfully
Management Trainee (MT) Program, specifically crafted contribute to the Company’s success. In 2023, 538
to nurture and develop future leaders within our participants took part in the Managerial Development
organization. This program targets recent graduates Program (MDP), amounting to a total of 3,142 man-hours
who are entering the workforce, offering them the of training. (404-2)
opportunity to gain valuable experience by placing
them in various business units across Indonesia. The In addition to our MDP, we also run a Staff Development
MT Program curriculum is balanced, emphasizing Program and Supervisory Development Program. In
both soft and technical skills development. It employs 2023, these programs saw the participation of 1,021
a dual approach to learning, combining conceptual, individuals, cumulating 5,437 man-hours of training.
in-class instruction with practical, on-the-job training
experiences. This comprehensive method ensures Overall, in 2023, we achieved 48,855 hours of training,
that participants acquire a well-rounded skill set that surpassing our target of 37,000 hours. Despite this
prepares them for leadership roles within the Company. success, there remain opportunities for further
In 2023, the Management Trainee Program welcomed 20 evaluation and improvement to ensure equitable access
to our training programs and associated benefits.
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Table 30. Average Training Hours by Gender and Employee Category (POJK51-F.18, 404-1)
2023 2022 2021
Non-staff 2.23 4.06 2.50
Male 2.11 4.39 2.62
Female 2.88 2.38 1.90
Staff 61.01 52.56 68.90
Male 66.19 53.86 71.33
Female 39.97 47.03 57.67
Manager 13.75 33.21 27.37
Male 14.41 35.28 28.19
Female 8.42 17.72 21.95
General Manager/Regional Manager/Group Head/Head 28.22 41.88 25.47
Male 28.14 45.83 21.12
Female 28.75 16.25 53.75
Boards of Directors 31.67 16.79 7.58
Male 22.22 14.00 5.75
Female 60.00 23.75 11.25
TOTAL
Male 4.91 7.13 6.01
Female 4.92 4.70 4.78
GRAND TOTAL 4.91 6.74 5.80
In August 2023, GMIT introduced a new initiative known feature of this program was the utilization of neuromatic
as the Field Assistant Development (FAD) Program, mapping, a cutting-edge technique designed to unlock
intended to address the Company’s need for field the potential of individuals. This approach facilitated a
assistants. The program commenced with two batches, deep dive into optimizing key leadership skills, including
admitting 10 and 12 individuals, respectively, from the strategic thinking, leadership communication, strategic
local population of GMIT’s Jember area. This strategic execution and management skills. The program’s
focus on hiring from within the community not only aims comprehensive curriculum and personalized coaching
to enhance staff retention but also leverages individuals’ methodologies were aimed at honing the capabilities of
familiarity with the local environment, contributing to our senior executives, ensuring they are well-equipped
the program’s effectiveness. The recruitment process to navigate the complexities of their roles and drive the
for the program was thorough, involving steps such as Company toward its strategic objectives. This program’s
administrative screening, psychological evaluations, successful completion in 2023 demonstrated our
Focus Group Discussions (FGD) and interviews. The first commitment to continuous leadership development and
batch had 227 applicants, while the second had 748. The organizational excellence.
FAD’s program structure includes two weeks of in-class
training followed by 3.5 months of On-the-Job Training Our Company conducts a monthly Management Meeting,
(OJT), culminating in a final assessment that covers both a platform where all Business Units come together to
a Quality Improvement Project (QIP) and technical skills. share and discuss updates related to staff training,
Given its initial success, plans are already underway development and career progression. This forum
to replicate the program next year, reinforcing GMIT’s allows for the presentation of reports, the offering of
commitment to developing skilled professionals within suggestions, and the provision of inputs, especially
the community. those concerning performance issues that may require
attention. Some examples of issues discussed in 2023
In 2023, the Executive Coaching Program was launched, relate to the quality of training programs, knowledge
targeting our senior leadership team. This exclusive gains, behavioral changes and the impact on Company
program saw the participation of four General Managers performance and business success.
(GMs) and one Director, spanning six months. A key
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In addition to these evaluative measures, we actively Our performance management framework incorporates
collect data through employee questionnaires regarding a forced ranking system, where a dedicated committee
their training experiences. This feedback is invaluable conducts comprehensive evaluations of employees
for assessing the program’s reach and effectiveness both within their respective teams and across different
and is instrumental in making necessary adjustments divisions of the Company. This rigorous assessment
to ensure our training initiatives are aligned with both process occurs annually. ANJ’s structured approach
employee needs and organizational goals. ensures continuous alignment with individual growth
plans and provides targeted coaching to help employees
achieve their professional objectives.
Employee Performance Evaluation
(POJK51-F.18) In the most recent reporting period, we achieved
100% of our employees, spanning all levels of the
Our performance management system is meticulously organization, underwent performance evaluations.
crafted to support employees in assessing their This accomplishment underscores our commitment to
performance against clear, quantifiable targets that maintaining a universal and equitable review process.
correspond to ANJ’s overarching corporate aims. This An inclusive feature of our approach is that employees
system unfolds in four distinct phases, ensuring a who joined our company towards the end of 2023 are
comprehensive and ongoing process of performance also subject to a probation evaluation, ensuring a
evaluation and development: fair and comprehensive assessment for every team
member regardless of their start date. These recent
1. Annual Performance Plans Initiation: Each November, additions are scheduled to receive their first formal
we produce annual performance plans. These plans performance appraisal in the upcoming review cycle,
are foundational to setting specific, measurable aligning with our principle that every employee deserves
objectives for employees, aligning individual efforts a fair and objective assessment of their performance.
with the broader goals of the Company. This philosophy is central to our business approach,
2. Monthly Performance Feedback: To foster a culture supporting both the career advancement and personal
of continuous improvement and communication, development of our workforce, and ensuring that all team
supervisors provide monthly performance feedback members are recognized and developed in accordance
to their project group. This regular interaction with their contributions and potential. (404-3)
ensures that employees receive timely insights into
their performance, including areas of strength and In 2023, our performance review system underwent
opportunities for growth. a significant evolution with the upgrade of a Human
3. Bi-semester Performance Evaluation Periods: The Resource Information System (HRIS), marking a
system is structured around two main evaluation pivotal step in our digital transformation journey. This
periods. The first semester spans from November to innovative, automated system revolutionizes how
April and the second semester from May to October. performance review processes are conducted, moving
These periods allow for a structured assessment away from traditional, manual methods to a more
of an employee’s progress against their set goals, streamlined, efficient digital approach. Through the
facilitating timely adjustments and recognizing newly upgraded HRIS, not only is the process simplified
achievements. and made more accessible, but accountability is also
4. Reward Management: Following the evaluation more evenly distributed among employees. This shift
periods, the system addresses reward management. encourages a greater sense of ownership over their
This involves acknowledging and rewarding staff performance evaluations, cultivating a culture of self-
achievements through merit increases, incentives and management and proactive engagement with personal
the provision of development programs and career and professional development. The implementation
advancement opportunities. This phase is crucial for of the HRIS affirms our commitment to leveraging
motivating employees, retaining talent and aligning technology to enhance our operational efficiency and
individual successes with our corporate objectives. empower our workforce, ensuring that performance
management is both effective and aligned with our
Through these four phases, our performance future-oriented organizational goals. We are committed
management system plays a pivotal role in driving to ongoing improvement in this area, aiming to promote
organizational success by ensuring individual transparency, visibility, and fairness across all relevant
performance is consistently aligned with and contributes HR practices within our operations.
to our corporate goals.
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CHAMPIONING DIVERSITY AND WOMEN’S
EMPOWERMENT (POJK51-F.18)
ANJ FIRMLY UPHOLDS THE
BELIEF THAT GENDER EQUALITY
AND DIVERSITY ARE NOT
ONLY FUNDAMENTAL ETHICAL
PRINCIPLES BUT ALSO CRUCIAL
COMPONENTS FOR ACHIEVING
SUSTAINABLE DEVELOPMENT AND
FULFILLING THE SUSTAINABLE
DEVELOPMENT GOALS (SDGS),
PARTICULARLY GOAL 5 ON
ACHIEVING GENDER EQUALITY
AND EMPOWERING ALL WOMEN
AND GIRLS. WE RECOGNIZE THE
INTRINSIC VALUE OF DIVERSITY
AND EQUAL OPPORTUNITY,
ESPECIALLY IN TERMS OF
WOMEN’S EMPOWERMENT AND
UNDERSTAND THEIR PROFOUND
IMPACT ON THE OPERATIONS OF
THE ANJ GROUP." Implementing women empowerment initiatives to increase
economic welfare, including through farming, supporting
both individual growth and community development
Diversity within our workforce serves as a catalyst within the Group are held by women. This significant
for optimizing company performance, as it brings a representation of women in managerial and senior
multitude of perspectives from different genders and management roles shows our dedication to creating a
groups to the forefront. This inclusivity fosters an balanced and inclusive workplace.
environment where employees are encouraged to share
their ideas and support one another, driving innovation We strongly believe that empowering women extends
and problem-solving. By providing the necessary support beyond the corporate environment, having a ripple
and encouragement, we are committed to enhancing the effect on the broader economy and societal welfare. As
competencies of our female employees, thereby not only women gain autonomy and the ability to contribute to
facilitating their career success but also contributing to family income, through taking ownership of their craft,
the overall performance and growth of the Company. there is a notable enhancement in the overall well-
being of families. This approach aligns with our vision of
The effectiveness of our commitment to gender supporting a sustainable, inclusive, and equitable future
equality can be observed in the leadership structure for all members of the communities we serve.
of our organization, where 25% of directorial positions
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Table 31. Percentage of Employees in Each Employee Category by Age (405-1)
2023 2022 2021
Employee Category
Over Over Over
18-24 25-40 41-55 18-24 25-40 41-55 18-24 25-40 41-55
55 55 55
Director - - 58% 42% - - 57% 43% - - 75% 25%
General Manager (GM) - 17% 76% 7% - 20% 73% 7% - 27% 63% 10%
Manager - 51% 43% 6% - 50% 43% 7% - 58% 39% 3%
Staff 18% 62% 20% 1% 16% 63% 20% 1% 16% 66% 18% 0%
Non-Staff / Workers 16% 56% 28% 1% 17% 57% 25% 1% 18% 58% 23% 1%
Our Sustainability Policy embodies a vision to nurture capability are the sole determinants of advancement.
a workplace that is not only conducive to growth but is We particularly encourage women to participate fully
also characterized by harmony and inclusivity, free from in the workplace and to pursue leadership roles with
divisiveness. At the heart of our commitment lies a strong confidence, recognizing their invaluable contributions to
emphasis on diversity and gender equality, principles our success.
we steadfastly uphold across our operations. We firmly
believe that every employee, irrespective of their gender, Operating in Indonesia, a nation celebrated for its rich
race or religious beliefs, should have unfettered access tapestry of cultural, ethnic and religious diversity, we
to opportunities that allow them to realize their full are keenly aware of the importance of creating an
leadership potential. environment where every individual feels valued and
respected. Our efforts are aimed at ensuring no one
To this end, we ensure equality in employment within our company feels marginalized or subjected to
practices, compensation, bonuses and access to discrimination. To date, we have not identified any groups
training opportunities. Our promotion processes or minorities within our organization that are particularly
are meticulously designed to be free from bias or vulnerable to discrimination. (405-1)
discrimination, nurturing a culture where merit and
Table 32. Percentage of Employees in Each Employee Category by Gender (405-1)
2023 2022 2021
Employee Category
Male Female Male Female Male Female
Director 75% 25% 71% 29% 67% 33%
General Manager (GM) 86% 14% 87% 13% 87% 13%
Manager 89% 11% 88% 12% 87% 13%
Staff 80% 20% 81% 19% 82% 18%
Non-Staff / Workers 84% 16% 84% 16% 83% 17%
Our aspiration to fostering gender equality and By aligning with the WEPs, we not only reaffirm our
empowering women within our organization is dedication to creating an equitable environment but
underscored by our commitment to the Women’s also gain access to a valuable platform for collaboration
Empowerment Principles (WEPs). In January 2021, we and learning. This platform allows us to network
solidified this commitment through a CEO Declaration with organizations and individuals who share our
of Support for the WEPs, a pivotal step towards commitment, exchange experiences and insights and
enhancing our policies and practices related to women’s discover successful strategies that elevate women
empowerment. The Women’s Empowerment Principles in leadership roles. Engaging with the WEPs enables
offer a comprehensive framework for businesses to us to continuously evaluate and improve our efforts to
promote gender equality and strengthen women’s empower women, ensuring that our practices not only
empowerment across three critical areas: the workplace, support but also actively promote gender equality within
the marketplace and the broader community. our company and beyond.
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Gender Committee Sustainability Director dedicate their time to meet
with Value Champions, LKS Bipartite (attended by
Our Company is dedicated to promoting gender equality, representatives from workers and the company),
with a Gender Committee established in each subsidiary and the Gender Committee. These meeting facilitate
to focus on enhancing women’s working conditions and direct dialogue with these groups to discuss progress,
fostering awareness around women’s empowerment, as well as any obstacles or challanges, allowing top
protection, and childcare. In 2022, we standardized management to offer support where needed.
committee structures across our plantation units and
introduced dedicated programs and budgets to support Complaints of discrimination, harassment or sexual
their activities. Additionally, a central Gender Committee violence can be reported through multiple channels,
at our head office, consisting of Directors, GMs, Managers including the LKS Bipartite, Human Resources and the
and employees from various departments, reinforces anonymous Whistle Blower System, ensuring prompt
these efforts, ensuring a unified and effective approach action and resolution. Our Human Resources Officers
to gender equality across the ANJ Group. are dedicated to ensuring that all contractors adhere to
legal standards and protect the rights of their employees;
The Gender Committee serves as a vital communication maintaining a safe and respectful workplace for all.
platform within the Company, addressing gender-related
issues and ensuring the inclusion of female perspectives Within this context, in 2023, GMIT took a significant step
in a predominantly male environment. It advocates for towards reinforcing its commitment to gender equality
necessary facilities, like nursing rooms and spearheads by establishing a Gender Committee.
initiatives on women’s empowerment and childcare. With
241 members across eight committees in the Group, it This pivotal move was complemented by the introduction
plays a critical role in safeguarding against discrimination, of new policies aimed at advancing gender equality across
harassment and sexual violence, particularly in our labor- the ANJ Group. These policies include comprehensive
intensive operations in remote areas. protocols for child protection, ensuring a safe and
nurturing environment for all children within the purview
To combat harassment, the committee is proactive of the Company’s operations and activities. Additionally,
in monitoring, reporting, and investigating incidents, protocols for grievances were established, providing
collaborating closely with Values Champions and a structured and empathetic approach to addressing
receiving robust support from ANJ’s senior management concerns related to gender equality and other related
and Values Guardians. Further, during visit to each issues.
operational site. Commissioners, the CEO, and the
Table 33. Ratio of Basic Salary and Remuneration of Women to Men, ANJ Group (405-2)
Median Mean
Employee Category
Ratio (F/M) Ratio (F/M)
Directors 0.86 0.71
General Manager and Head of Department 1.17 1.29
Assistant Manager - Manager 1.00 0.95
Staff 0.93 0.90
Non-Staff 0.68 0.92
Notes: The significant location of the operation is defined as the whole ANJ Group as stated on page 3.
Our remuneration policy is centered on providing of our actions regularly monitoring the compensation
equitable compensation to all employees, reflecting their ratio between male and female employees to ensure
competencies, roles and responsibilities, without regard fairness. Data indicates that, on average, both men and
to gender, race or religion. We recognize the challenges in women receive similar salaries and remuneration within
demonstrating equal pay for soles that are uniquely held our company. However, we recognize that this situation
by a single individual (e.g., the sole position of President is dynamic and subject to change with the fluctuating
Director). Despite these challenges, we are dedicated proportions of male versus female employees, and we
to continually enhancing areas within our control. Part remain vigilant in our efforts to maintain equality.
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PROTECTING THE RIGHTS OF WORKERS
AND CHILDREN
In conducting our operations, we strictly adhere to
relevant labor laws and international treaties to ensure
our practices meet the highest ethical standards. Our
commitment is clear: we do not tolerate child labor,
any form of child exploitation or forced labor under
any circumstances, ensuring our operations are both
responsible and sustainable. (408-1, 409-1)
Our commitment to upholding human rights, labor
rights and children protection standards extends
beyond our immediate operations to include our
suppliers and contractors. These external partners
are required to comply with our Sustainability Policy
and its Implementation Guidance, ensuring that their
practices align with our Company's guiding principles
and ethical standards. This expectation is explicitly
outlined in all contractors’ Work Agreements and is a
critical component of their contractual obligations and
responsibilities. We conduct thorough examinations
to ensure compliance, reinforcing our dedication to
responsible and sustainable business practices across
our entire supply chain. (408-1, 409-1)
Labor Rights and Freedom Association
ANJ is committed to full compliance with the prevailing
Indonesian labor laws, as updated by the Omnibus Law
on Job Creation (UU Cipta Kerja). In line with these
We always ensure workers' rights are safeguarded, regulations, and as elaborated within our Company
enabling them to carry out their tasks with comfort and
certainty.
Regulations, we ensure the protection of workers’
rights across all demographics, upholding principles
of equality and non-discrimination. We support the
We are acutely aware of the potential for forced and
freedom of association, allowing every employee within
child labor within our operations and those of our
our operations the right to form unions and engage in
suppliers. Recognizing the challenges in enforcing
collective bargaining processes.
standards consistently on the ground, we acknowledge
the associated risk of worker exploitation. In response,
Our commitment is evidenced by the Collective Labor
we prioritize the protection and upholding of labor rights
Agreements (CLA) at SMM and ANJAS. Additionally,
throughout our entire operations. This commitment
other subsidiaries follow Company regulations that are
extends to suppliers under our direct control or operating
revised every two years, incorporating feedback from
within our concession areas, where we pledge to exercise
employee representatives to ensure relevance and
stringent oversight and implement robust safeguards to
fairness. Together with LKS Bipartite, these practices
actively safeguard the welfare of all workers involved.
shows that in all operating units, we have provided
[408-1, 409-1]
channels for employees and the Company to negotiate
collectively. (2-30)
Aligned with the principles and standards of the
Roundtable on Sustainable Palm Oil (RSPO) and the
To guarantee adherence to these standards, our
Indonesian Sustainable Palm Oil (ISPO) system, our
operations undergo internal and external audits aligned
Sustainability Policy firmly emphasizes the protection
with RSPO, ISPO and ISO certifications. Furthermore,
of human rights, labor rights and children’s rights.
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The Gender Committee conducts a socialization session
with the community, discussing labor rights and
emphasizing fair treatment and equal opportunities.
routine inspections by local government authorities The LKS Bipartite committees go beyond mere
at each estate are conducted to verify compliance with regulatory compliance, evolving into key instruments
workers’ rights, as stipulated by the relevant regulations. for effective two-way communication between the
Both the Company regulations and the CLA are registered Company and its employees. These committees are
with and authorized by the Manpower Agencies or the actively involved in implementing various programs,
Ministry of Manpower and Transmigration, ensuring ranging from safety awareness and health promotion
our practices are not only ethical but also legally sound. to employee engagement initiatives, contributing to a
(2-30, 407-1) positive workplace environment.
To ensure our employees have a thorough understanding As of 2023, there were nine LKS Bipartite committees,
of their rights, we conduct regular information sessions collectively comprising 202 administrators, members,
on Company regulations, including detailed discussions and union representatives. To promote gender inclusivity
on workers’ rights and obligations. Prior to joining ANJ and female representation, each estate is required to
employees receive comprehensive briefings on their have at least one female worker as a member of its LKS
job roles and the working conditions at our estates, Bipartite. This approach emphasizes our commitment to
enabling them to make informed decisions about their promoting an inclusive, responsive and equitable work
employment with us. culture for all employees.
Given the labor-intensive nature of our business, much of In our continuous effort to enhance working conditions
our workforce (93%) comprises laborers. In compliance across our business operations, we initiated a
with labor regulations, each of our subsidiaries maintains comprehensive review process. This review was
a bipartite joint committee, known as LKS Bipartite, successfully completed at the Group level in December
designed to foster labor relations between the Company 2023 and is set to expand to other units. This
and representatives of both unionized and non-union initiative is not only one of the key components of our
workers. The LKS Bipartite serves as a vital platform Environmental, Social and Governance (ESG) targets
for workers to express their opinions, concerns, and but is also necessitated by commercial considerations.
aspirations directly to management, with issues being Our commitment to improving workplace environments
addressed in monthly meetings. reflects our dedication to upholding the highest standards
of employee welfare and operational excellence, aligning
with both our sustainability objectives and business
requirements.
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Prevention of Forced Labor and The internal memorandum extends to prohibiting the
Child Labor (POJK51-F.19) presence of employees’ children within our estates,
whether during school holidays or at any other time,
We have in place stringent rules and regulations aimed to prevent any form of indirect child labor. Estate
at preventing child labor and safeguarding workers from administrators, along with local gender and child safety
exploitation and abuse. Adhering to prevailing labor representatives, are vigilant in monitoring and preventing
laws, we enforce a workweek of no more than 40 hours, unauthorized access, ensuring any child protection
structured as either eight hours across five days or issues are promptly reported to the head office.
seven hours across six days. Remuneration for our staff
is consistently disbursed on the 26th day of each month, Understanding the needs of our working parents,
while non-staff employees receive their wages in the we provide daycare facilities in all units, equipped
first week of each month. Should the designated payday with caregivers and playgrounds, offering a secure
coincide with a holiday or weekend, payment is expedited environment for their children during work hours.
to the preceding working day. Furthermore, we are committed to enabling access to
early and primary education for our employees’ children,
In alignment with our Company Regulations and/or the aiming to eliminate the need to accompany their parents
Collective Bargaining Agreement, certain employee at the plantations. By 2027, our goal is to ensure that
categories eligible for overtime are compensated with these educational facilities are available to children
additional work benefits for any hours worked beyond in all our operating sites, reinforcing our dedication
their regular schedule, as stipulated by labor laws to employee welfare and child protection. Through the
governing overtime. This approach ensures that all our strict implementation of these safeguards, we detected
employees are fairly compensated for their contributions no cases of child or forced labor in 2023. (408-1, 409-1)
while promoting a healthy work-life balance and adhering
to legal standards. (409-1) ANJ is also committed to ethical supply chain practices,
ensuring that legal and social protections for workers
The LKS Bipartite and the Gender Committee play a within our supply chain. ANJ has proactively established
crucial role in upholding our commitment to human a comprehensive compliance framework within its
rights and the strict prohibition of child labor across all supply chain, ensuring that all employment practices are
operational areas. An internal memorandum regularly aligned with both national labor laws and international
circulated by these committees underscores the labor standards. ANJ is committed to providing full
importance of protecting human rights and explicitly social and labor protection for all individuals working
forbids child labor. On-site managers and leaders are within its supply chain, rectifying any instances where
tasked with enforcing these directives, facing severe such protections might be lacking. The Company has
penalties for any oversight leading to violations. implemented rigorous monitoring processes to ensure
that working conditions meet or exceed the required
We maintain a strict minimum employment age of 18 legal and ethical benchmarks. ANJ has also taken
years across all business operations. Rigorous age significant steps to address and eliminate any form of
verification processes are in place during recruitment disguised employment relationships, guaranteeing
to ensure compliance, with our employee database that all workers are appropriately recognized and
meticulously documenting each employee’s age and date not falsely categorized as self-employed, thereby
of birth. Identity documents and educational certificates ensuring that there are no gaps in legal employment
are mandatory for all new hires and recruitment officers recognition. Additionally, ANJ mandates that all work
found flouting these rules face strict disciplinary actions. within its supply chain is governed by legally recognized
To address potential violations in this matter, we have contracts, offering clarity and security for every worker
established a rehabilitation program designed for engaged. Through these measures, ANJ demonstrates
individuals who may be affected by such violations. This its unwavering commitment to upholding the highest
program acts as a precautionary measure, emphasizing standards of labor practices, reinforcing its position as
the importance of mitigation and preparedness for any a responsible and ethical leader in the industry. (13.20.1)
potential violations, ensuring that our response system
is primed for immediate activation if necessary.
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PROTECTING THE HEALTH AND SAFETY
OF OUR WORKERS (POJK51-F.21)
THE HEALTH AND SAFETY
OF OUR EMPLOYEES AND
CONTRACTORS IS A COMPANY’S
PRIORITY."
Understanding the profound impact that occupational management system. This system is designed around
health accidents and incidents can have not only on the identification and assessment of workplace risks
our workforce but also on the broader reputation and and integrates a structured hierarchy of policies, plans,
operational stability of our Company, we are committed Standard Operating Procedures (SOPs), and programs.
to rigorous risk mitigation strategies. Accidents and Our OHS management system is inclusive, covering the
injuries not only affect individuals personally but can also full spectrum of activities of our 9,943-person strong
tarnish the Company’s reputation and can potentially workforce.
lead to significant uninsured losses. Moreover, incidents
involving the surrounding community have the potential Moreover, the scope of this system extends beyond our
to escalate into unrest or demonstrations, posing direct employees to encompass all contractors and
security risks to our operations. contract workers whose duties and work environment
fall under our jurisdiction. It also includes provisions
Given these considerations, our overarching goal is to for guests visiting our facilities, ensuring their health
minimize the risk of workplace accidents and incidents, and safety during their stay. Additionally, the OHS
striving toward the ultimate objective of achieving management system encompasses activities conducted
zero work-related accidents and ill health across all outside our immediate locations, such as travel and
our subsidiaries and properties. This commitment to transportation related to work, further illustrating our
maintaining a safe and healthy work environment is commitment to the health and safety of all individuals
integral to our operational ethos: ensuring the well-being associated with our operations, regardless of their
of our employees while safeguarding the Company’s location. (403-1, 403-8)
reputation and operational continuity.
Our Occupational Health and Safety (OHS)
Aligned with government regulations applicable management system is rigorously structured; guided
to enterprises of our scale, we have established a by a comprehensive framework of internal regulations,
comprehensive Occupational Health and Safety (OHS) Standard Operating Procedures (SOPs) and Work
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Our organization prioritizes Occupational Health and
Safety (OHS) across all units, with our palm oil and sago
production units completing internal OHS audits and
units such as ANJA, ANJAS, SMM, KAL, PMP and GMIT
Worker descending tower stairs
in safety gear, exemplifying our undergoing external OHS audits. This comprehensive
commitment to health and safety. audit ensures that 98% of our employees are protected
under an internally audited OHS management system
and 88% benefit from additional evaluation by external
audits. Furthermore, our edamame unit, GMIT, adheres
to the ISO 22000 standard for food safety, which also
encompasses workplace health and safety requirements.
GMIT undergoes annual external assessments to
maintain this standard, demonstrating our commitment
to the highest levels of safety and quality across all
operations. (403-8)
Activities that fall outside our direct oversight, such as
those undertaken by our indirect smallholder Fresh Fruit
Bunch (FFB) suppliers, are not covered by our system.
However, we actively encourage the adoption of health
and safety practices among them. Our large contractors
are required, through contractual agreements, to comply
with our health and safety standards. This includes
implementing an Environmental, Health and Safety (EHS)
strategy, appointing an EHS officer, signing a Letter of
Instructions. These guidelines specifically address Commitment (LOC), and engaging in our routine safety
activities associated with high health and safety hazards, meetings. We keep track of our vendors’ and suppliers’
ensuring a consistent and systematic approach to risk health and safety statistics to assess their adherence
mitigation across all operations. We align our OHS to our standards. Additionally, vendors and suppliers
management practices with internationally recognized dealing with hazardous goods and materials or items
standards and guidelines, including those set by the impacting health and safety, must meet all relevant
International Labour Organization (ILO), the ISO 45001 regulations, certifications, and standards as part of their
standard for OHS management systems, and the ISO contractual obligations with the Company. (403-7)
31000 standards for risk management. Additionally,
our system adheres to specific health and safety Our employees play a crucial role in the development,
requirements mandated by the Indonesian government. implementation and evaluation of our Occupational
To ensure compliance and efficacy, our OHS management Health and Safety (OHS) management system. Their
system undergoes regular audits. These audits measure active involvement serves as a vital platform for
our practices against the aforementioned international enhancing awareness, facilitating discussions and
standards as well as the Indonesian government’s SMK3 reflecting on various aspects of health and safety,
standard (Sistem Manajemen Kesehatan dan Keselamatan including performance, audit outcomes and lessons
Kerja or Occupational Health and Safety Management learned. This participatory approach is detailed
System). This rigorous auditing process helps to ensure within our Standard Operating Procedures (SOPs),
that our health and safety practices not only meet but especially in the SOP dedicated to external and internal
exceed the required legal and international benchmarks, consultation, involvement and communication, ensuring
demonstrating our unwavering commitment to a comprehensive and collaborative approach to OHS
maintaining a safe and healthy work environment for all management. (403-4)
employees, contractors and visitors. (403-1)
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Workers and contractors are contractually obligated to
follow our Occupational Health and Safety (OHS) policies
and procedures. In alignment with current legislation
and the ISO 45001 standard, employees can refuse
work on the grounds of safety concerns without fear of
retaliation. Our commitment ensures that any employee
who declines to work due to unsafe conditions or who
reports such conditions, is protected from retribution.
We promptly respond to these reports by conducting
a thorough analysis and taking necessary steps to
address and mitigate the associated risks. Employees
are encouraged to communicate any health and safety
concerns directly to the Environmental, Health and
Safety (EHS) Department. There are systems in place
for those who wish to submit anonymous reports. The
specific procedures for reporting OHS concerns and
incidents are comprehensively detailed in our incident
management Standard Operating Procedure (SOP),
ensuring clarity and accessibility for all employees in
maintaining a safe work environment. (403-2, 403-4)
Building a Safety Culture
We are dedicated to cultivating a culture of accountability
and personal responsibility among our employees,
emphasizing the importance of individual and collective
safety. Recognizing that the awareness and safety
culture of our workforce is pivotal to our overall safety
performance, we are committed to enhancing health
and safety knowledge across our diverse employee base,
spanning various cultural and educational backgrounds
across all locations. This involves a comprehensive
engagement, consultation, and education strategy
on hazard and risk management in the workplace,
underscoring our commitment to building a strong
health and safety culture.
To elevate employee understanding of health and safety, Our efforts extend to certification training developed by
we utilize a variety of tools and methods, including the Environmental, Health and Safety (EHS) department,
pamphlets, safety signs, presentations, workshops, and with sessions conducted by both internally and
targeted training sessions. Regular safety campaigns externally accredited trainers. In line with regulatory
and information roadshows featuring promotion posters, requirements, each subsidiary features a Health and
booklets and safety conversations aim to keep health Safety Committee Supervision Body (P2K3), registered
and safety themes front and center. with the local government’s Manpower Agency. This
committee, comprised of management and employee
General health and safety training is mandatory for all representatives, plays a crucial role in providing health
employees, starting with their induction and continuing and safety advice, analyzing performance data, and
throughout their first year of employment and beyond. serving as a platform for employee feedback. Overseen
We also provide specialized training tailored to the by the EHS Department and led by senior management,
specific risks associated with various job functions, the committee meets monthly, ensuring continuous
including mechanics, electrical work, chemical handling, oversight and improvement of our health and safety
construction, first aid, transportation and emergency initiatives. (403-2, 403-3, 403-4)
management.
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Managing Health and Safety Risks The results of our HIRARC assessments identify the
Our approach to health and safety hazard assessment principal high-risk work activities within our estates,
is systematic and thorough, employing the Hazard which are then documented and addressed in our OHS
Identification Risk Assessment and Risk Control management plans and safety performance objectives.
(HIRARC) technique for routine tasks and the Job Safety To effectively manage these risks, we implement a
Analysis (JSA) method for non-routine tasks. These hierarchy of controls tailored to mitigate the identified
assessments are conducted annually, following incidents hazards. In the event of an incident or accident, the unit
or accidents, and upon the identification of a new high- leader must report it within 24 hours. The severity of
risk activity. Our Environmental, Health and Safety the incident dictates the formation of an Investigative
(EHS) Department, staffed with qualified professionals, Team, comprising management, subject-matter
oversees this process, with field supervisors trained experts, EHS specialists and when necessary, external
in HIRARC executing the assessments. The findings of parties. Following the investigation, a conference is
the HIRARC assessment are reviewed by management held to review the findings, evaluate the causes and
and communicated to all staff to ensure widespread collect recommendations for preventive measures and
awareness and understanding. (403-2, 403-3) improvements. (403-3, 403-9)
Table 34. High-Risk Work Hazards and Controls (403-9, 403-10)
Hazardous Type of Location Elimination, Substitution Administrative Personal
Activities at ANJ Hazard and Engineering Controls Protective
Estates Controls Equipment (PPE)
Harvesting of FFB Injury, crushed Estate 1. Modification of “Egrek” or Awareness-raising and Boots, safety goggles
by FFB “Dodos” training and safety helmets
2. Safer harvesting position
Mixing of Inhalation, Estate 1. Use of manual pump/ Awareness-raising and Boots, safety goggles,
chemicals splashing, agitator training respirators, rubber
(pesticides/ ingestion of 2. Use of low-risk chemical gloves and aprons
herbicides) chemicals 3. Mixing carried out outdoors
Harvesting near Electric shock Estate 1. Remove oil palm trees 1. Awareness-raising, Boots,safety
power lines growing near the power training and helmets and cotton
line (radius of minimum supervision during gloves
10 meter or based on-site work
assessment) 2. Working permit
2. Use of double insulator 3. Putting danger signs
material on the Egrek grip on trees
3. Egrek knife sheath made of
insulator material
Welding and Electric shock, Central 1. Installation of “local 1. Welding and cutting Safety shoes, welding
cutting burning Workshop & exhaust” permit goggles, leather
Transportation 2. Adding insulator cover 2. Awareness-raising, gloves and aprons,
material on the welding training and fire blankets
transformer supervision during
3. Modify the connection of work
power from/to the welding
panel/transformer
Working at heights Falling or Mill Installation of platform/ 1. Working at heights Safety shoes, safety
crush injury ladder/scaffolding permit helmets, and full-
2. Awareness-raising, body harness
training and
supervision during
work
Working in restricted Lack of oxygen, Mill 1. Installation of ventilator/ 1. Entry permit and gas Safety shoes,
spaces poisoning, blower check safety goggles,
cold, 2. Installation of manhole/ 2. Warning signs special clothes, and
overheating emergency exit respirators
3. Installation of alarm
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Hazardous Type of Location Elimination, Substitution Administrative Personal
Activities at ANJ Hazard and Engineering Controls Protective
Estates Controls Equipment (PPE)
Working in a power High noise, Mill Installation of piping 1. Awareness-raising, Safety shoes, ear
plant (generator, electrocution insulation and glass wool work authority plugs, helmet
boiler) 2. Warning signs
Travelling (by car, Collision, All operations Inspection and maintenance Safety briefings, quality Safe vehicles, seat
helicopter, airplane, falling, controls, safety training, belts, hearing
boat) drowning a special driving license protection, safety
(KIMPER) for drivers vest
Working in areas with Collision, All 1. Heavy equipment and vehicles 1. Tool Box meeting before Helmets
heavy equipment/ crushing, operations use alarm buzzers when work
vehicles squeezed operating 2. Warning signs/safety
2. Presence of helpers lines i
operators/traffic managers 3. Special permits for
operators (SIO/KIMPER)
4. Employee induction
Working in areas Hypothermia, GMIT 1. Cold storage equipped with 1. Employee induction Personal Protective
with extreme frostbite emergency Alarm 6. Working time – limited Equipment
temperature 2. Transitional spots to slowly to 15 mins at a time
neutralize the temperature
Our Research and Development department is at Our adherence to health and safety regulations is
the forefront of promoting environmentally friendly reflected in our meticulous recording of performance
agricultural practices, specifically focusing on the statistics, in line with the Ministry of Manpower and
utilization of beneficial microbes and biological control Transmigration guidelines. We classify workplace
methods. This initiative aims to minimize the use accidents into categories such as Lost Time Injury (LTI),
of chemical pesticides and herbicides, particularly Occupational Disease (OD), Fatality (FAT), First Aid,
addressing the risks associated with chemical mixing. and Medical Treatment Case (MTC), with injury rates
By implementing these biological strategies, we not only calculated per one million hours worked. This year, we
safeguard the health and safety of our employees and recorded 35,841,322 hours worked.
the environment but also significantly reduce chemical
usage across our estates. While our records comprehensively cover all employees
and contractors on our estates and in our offices,
The Environmental Health and Safety (EHS) Department accurately capturing our contractors’ safety data poses
bears the responsibility for overseeing health and challenges, leading us to exclude their data from our
safety across the Company. Staffed with EHS experts reports to ensure accuracy. Nonetheless, serious
at the Head Office and dedicated EHS officers at each incidents involving contractors are documented. In
business unit, the department ensures rigorous safety 2023, we encountered two serious accidents involving
monitoring and compliance at the estate level. EHS a contractors that resulted in two fatalities. Meanwhile,
officers are instrumental in providing safety briefings to in the aspect of work-related illness or occupational
estate workers and conducting safety drills. Additionally, disease, it is reported that there have been no instances
EHS Representatives at each location support the EHS of such occurrence within this reporting period.
Officers by carrying out regular inspections, assessing (403-9, 403-10)
health and safety risks, devising mitigation strategies,
and formalizing these actions in our standard operating
procedures. (403-5)
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Number of Fatalities, Injuries, and Medical Treatment in 2023 (403-9)
FATALITY LOST TIME INJURY MEDICAL TREATMENT CASE
(LTI) (MTC)
0* 19 40
Hazard/Cause Hazard/Cause Hazard/Cause
Handling Tools and Including transportation, handling
- Transportation tools, bitten by animal, cut by sharp
objects and falling.
Notes: Two cases of contractor fatalities occured in 2023
Table 35. Work-related Injuries, per million hours worked (403-9)
2023 2022 2021
TOTAL RECORDABLE INJURY RATE 1.33 1.30 1.81
WEST REGION 0.69 1.01 1.69
Male 0.69 0.85 1.49
Female 0 0.16 0.20
EAST REGION 2.34 2.26 2.25
Male 2.34 2.26 2.10
Female 0 0 0.15
LTI FREQUENCY RATE 0.43 0.53 0.57
WEST REGION 0.44 0.53 0.60
Male 0.44 0.48 0.56
Female 0 0.05 0.04
EAST REGION 0.41 0.52 0.45
Male 0.41 0.52 0.45
Female 0 0 0
LTI SEVERITY RATE 2.79 4.73 61.53
WEST REGION 1.97 5.59 4.27
Male 1.97 5.43 4.03
Female 0 0.16 0.24
EAST REGION 4.09 1.92 274.69
Male 4.09 1.92 274.69
Female 0 0 0.00
Notes:
1. Total Recordable Injury refers to recordable injuries and diseases, excluding fatalities.
2. Lost Time Injury Frequency refers to the total number of lost time accident cases.
3. Lost Time Injury Severity refers to the total number of lost days.
4. Rates are calculated per one million hours worked.
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A female worker assists a colleague in
donning safety gear, emphasizing the
importance of teamwork in maintaining
a safe workplace.
Recorded Injuries and Incidents (403-9, 403-10)
TOTAL INJURIES
2023 59 2022 32 2021 57
MEDICAL LOST TIME INJURY FATALITY OCCUPATIONAL
TREATMENT CASE (LTI) DISEASE
2023 40 2023 19 2023 0 2023 0
2022 19 2022 13 2022 0 2022 0
2021 39 2021 18 2021 0 2021 0
TOTAL INJURIES
2023 5 2022 7 2021 7
ENVIRONMENTAL PROPERTY TRAFFIC FIRE
POLLUTION DAMAGE INCIDENT INCIDENT
2023 0 2023 5 2023 0 2023 0
2022 2 2022 5 2022 0 2022 0
2021 2 2021 2 2021 0 2021 3
Notes: The recorded environmental pollution and fire incident cases are not major cases, there is no loss of life, no disabling injury, the impacts are well below USD 1 million, and
no grievance reported.
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REDUCING HEAT STRESS IN OIL PALM PLANTATION WORKERS:
A STRATEGY TO PROTECT OUR WORKFORCE
FEATURE STORY
2023 was the hottest year on record and with To expand the scope of our heat stress
the upward trend of global temperatures due prevention initiative, ANJ has also developed
to climate change, we can only expect hotter a program to educate workers and community
and drier conditions in the future. This is an members about how lifestyle factors can be
unavoidable fact that must be addressed and, modified to manage and minimize the risk
in recognizing the health burden extreme of developing non-communicable diseases,
weather could place on our people, ANJ has such as heart disease, diabetes mellitus
opted to act now to adapt to local climatic and hypertension. We aim to educate 7,451
changes and mitigate climate-related risk, workers through the program. In 2023, we
where possible. ANJ’s climate initiatives are were able to reach 1,765 individuals or 23.7%
wide-ranging and varied, with each tailored to of the plantation workforce. This is a great
the specific needs of people, the environment, achievement for ANJ in the inaugural year of
and the local context. Among our most the program. We believe that the program has
prudent climate adaptation strategies is that the potential to have a significant impact on
which addresses heat exposure among our a much wider community than those directly
workers by adopting measures to tackle the involved in plantation work and could induce
consequences that high temperatures and a positive shift towards healthier lifestyles
humidity levels can have on the human body. for generations to come.
Exposure to high temperatures, especially Since introducing our heat stress awareness
in combination with high humidity, poses campaign in 2022 and implementing our
a serious risk to those working outdoors. protective measures at the start of 2023, we
Those working in manual labor, such as ANJ’s have seen a great improvement in operational
plantation workers, are at an even higher risk efficiency, especially during periods of
due to the physical nature of their work. As a extreme heat and drought. While ANJ’s
result, heat stress is directly linked to lower typical approach to improving efficiency is
productivity, which leads to lower outputs and to mechanize processes, which also reduces
millions of dollars of losses for the industry. the Operational Health and Safety risk, there
While anyone can experience heat fatigue, are some jobs which cannot be mechanized,
heat stroke, discomfort, heat cramps, rashes, including that of plantation workers. Focusing
and dehydration because of excessive heat on adaptation and sustainable preventative
exposure, individuals with co-morbidities, solutions can be effective if strict regulations
such as heart disease, hypertension, and for quality assurance and adherence are put
diabetes, are far more susceptible to heat- in place.
related illness than others.
Climate change is a difficult issue for all of
In line with ANJ’s model of prioritizing us and it can be easy to become despondent.
prevention rather than managing However, this program has demonstrated to
consequences, we aim to address heat us that even small changes can have a great
stress by providing adequate shade, light and impact, which is a sentiment we hope that
breathable working attire, cool beverages, and more of our people can learn to appreciate
isotonic drinks to address mineral depletion, and integrate into their lives to support ANJ’s
and allowing workers to take ample rest in transition towards a more climate-friendly
air-conditioned facilities while at work. It is and resilient operating approach.
essential that we not only prevent illness but
ensure that our workers are comfortable. This
both supports good working relationships
and high morale and promotes productivity
because uncomfortable workers are less
likely to perform well.
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Our Health Services and Facilities
Health services are pivotal to our Occupational Health
and Safety (OHS) management system, highlighting
ANJ’s commitment to the comprehensive well-being of
our workforce. With seven major clinics and five support
clinics, our healthcare infrastructure is robust, staffed
by a dedicated team of six doctors, nineteen nurses
and twenty-six midwives. These facilities are equipped
to provide a wide range of services, from occupational
medical services and emergency care to high-quality
general healthcare, including maternal and childcare,
as well as testing laboratories. Given that many of
our operations are in rural areas, where access to
basic medical services can be significantly limited,
the availability of these clinics plays a crucial role in
ensuring the health and well-being of our employees,
their families and the surrounding community. This
initiative underscores our commitment to going beyond
occupational health, offering comprehensive healthcare
solutions that address the broader needs of our
workforce and their communities. (403-6)
Our health workers play an indispensable role beyond
delivering medical services; they are key in identifying and
mitigating occupational hazards that could compromise
the health of our employees. Initiatives such as providing
first-aid training, procuring necessary medicines and
first-aid kits, and conducting canteen inspections are
integral to our comprehensive health strategy. Moreover,
during the COVID-19 pandemic, health workers took a Our medical staff are always ready to treat
dominant role in promoting a healthy lifestyle among our patient who require further treatment.
workforces. This included raising awareness about the
importance of good nutrition, maintaining cleanliness,
and adhering to infection prevention guidelines, all of
which are crucial to safeguarding the health and well-
being of our employees and their families during such
Further supporting our commitment to employee
challenging times. (403-6)
health, we facilitate regular medical check-ups for all
workers. Employees over the age of 40 are entitled to
To ensure the well-being and health security of our
annual check-ups, while those under 40 receive biennial
workforce, we provide comprehensive health insurance
check-ups. Moreover, employees engaged in high-risk
benefits to all our permanent employees. This coverage
jobs undergo specialized medical evaluations to identify
includes enrollment in the government-mandated
any health risks associated with their specific roles.
health insurance program, Badan Penyelenggara Jaminan
The outcomes of these medical examinations, along
Sosial Kesehatan (BPJS Kesehatan), supplemented by
with doctor recommendations, inform any necessary
additional private health insurance. This dual-layered
adjustments to job assignments and activities, ensuring
health insurance scheme significantly reduces the
the long-term health and safety of our workforce.
financial barriers to accessing medical treatments,
Additionally, the above mentioned employees also
thereby enhancing healthcare accessibility for our
receive allowances of special food/beverage for nutrition
employees and their families.
purposes. All these practices are carried out with the
utmost care, recognizing the imperative need to maintain
the confidentiality of employees’ medical records.
(403-3, 403-6)
Patient examination by a resident doctor
at inpatient facility in our clinic.
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ANJ’S HEALTH CLINICS ARE NOW EQUIPPED
WITH NEW TESTING LABORATORIES
FEATURE STORY
ANJ HAS MADE CONSIDERABLE STRIDES IN
IMPROVING HEALTHCARE QUALITY WITHIN
ITS CLINICS BY SETTING UP ADVANCE
TESTING LABORATORIES. THIS STRATEGIC
DEVELOPMENT MARKS A MILESTONE IN ITS
COMMITMENT TO IMPROVING HEALTHCARE
FOR EMPLOYEES AND THE COMMUNITY
AND SETS A NEW STANDARD FOR CLINICAL
SERVICES WITHIN ITS OPERATIONAL SITES."
By integrating new diagnostic technologies, Further to this accomplishment was the
ANJ clinics are now better equipped to offer upgrading of some of our BPJS’ certified clinics
accurate and timely health assessments. as “Klinik Pratama” or “Primary Clinic”. Klinik
This upgrade enables the early detection of Pratama plays a crucial role in Indonesia’s
diseases, personalized treatment plans, and healthcare landscape, serving as the first point
more effective management of ongoing health of contact for individuals seeking medical
conditions, ensuring that patients receive the attention. These clinics are foundational to
best care possible. The presence of onsite providing accessible, affordable, and quality
laboratories also significantly reduces the healthcare, especially in areas where hospital
wait times for test results, which is crucial facilities may be scarce or distant. Klinik Pratama
for the timely initiation of treatment. This often collaborates with higher-level healthcare
enhancement in diagnostic capabilities is facilities for cases that require specialized
expected to lead to higher patient satisfaction treatment, ensuring a continuum of care for
and better overall health outcomes. patients. Through referrals and partnerships,
they ensure that patients receive timely and
The new laboratories are staffed by skilled appropriate treatment, bridging the gap between
professionals trained in modern diagnostic primary and specialized healthcare services.
techniques, ensuring that the services
provided meet the highest standards of In the heart of South Sorong Regency, Southwest
accuracy and reliability. The training and Papua, the inauguration of Klinik Pratama at
development of laboratory staff conducted to PPM, marked by a ceremonial signing by ANJ
enhance professional growth and excellence Commissioner, Dr. Sjakon G. Tahija, heralds a
in healthcare provision to the employees. new era of improved healthcare quality within
ANJ’s operational areas.
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“As an employee of PT Permata Putera Mandiri (PPM),
I greatly appreciate the enhancements made to our
healthcare facilities. The opening of the Klinik Pratama
is not just an upgrade in infrastructure but also an
improvement in the quality of healthcare services that
my family and I enjoy. This facility provides a range of
health services, and now with the latest addition of
clinical laboratory facility, my family and I can quickly
get blood test results, allowing for early diagnosis. The
existence of this clinic means a lot to us, providing direct
access to quality health services without having to travel
far from where we work and live. We are deeply thankful
for ANJ’s efforts in raising health standards in our work
environment and supporting the health of us and our
families.”, said Erick Hutagaol, Kerani Estate Divisi 2
Estate Gaina
This move is not just about expanding facilities; it is a
strategic effort to enhance the caliber of health services ANJ’s health initiatives represent a model for how
provided. With a focus on comprehensive care, the corporations can play a pivotal role in enhancing
clinic offers general practitioner consultations, routine community health services. These efforts not only
health checks, family health services, preventive health improve health outcomes but also foster a sense of
programs, emergency services along with availability security and belonging among the workforce, enhancing
of ambulance, in-patient and out-patients services, overall productivity and morale. It also showcases the
family health services, among other services. This broad potential for corporate initiatives to fill gaps in public
spectrum of care is designed to meet the diverse needs health services, particularly in remote or underserved
of the community, ensuring that high-quality health areas.
services are accessible to all.
The establishment and upgrading of our health are more
By integrating advanced clinical laboratory facilities, the than just corporate milestones. They represent a deep-
clinic is positioned to offer rapid diagnostic services, seated commitment to health, safety and community
enabling timely medical interventions for patients. This welfare. As this clinic continues to serve the needs of
development not only benefits the immediate community its patients, it stands as a testament to the power of
but also sets a precedent for the enhancement of corporate responsibility and the vital role of healthcare
healthcare services for the employees and their families. in sustainable development.
An employee of PPM shared a personal testament to the
impact of these improvements, expressing gratitude for
the enhanced quality of healthcare services.
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ENGAGING AND EMPOWERING LOCAL COMMUNITIES
(POJK51-B.3, POJK51-F.23)
Our Gender Committee is committed to involving and
empowering communities surrounding our operation areas
Engaging with local communities is a cornerstone of our Our dedication extends to protecting the rights of local
sustainability efforts, recognizing that our operations communities, recognizing the risks that our agribusiness
in rural, peripheral and remote areas significantly operations might pose, including issues related to land
impact the socio-economic landscape of these regions. acquisition, conflict, labor inequalities, exploitation,
These areas, often characterized by limited economic forced and child labor and violence. Our Sustainability
opportunities, inadequate public services, and insufficient Policy is rooted in the Universal Declaration of Human
infrastructure, face heightened vulnerabilities due to Rights, ensuring the protection of all stakeholders
our presence. We must mitigate negative impacts while affected by our activities. By maintaining open and
amplifying positive contributions through community accessible grievance mechanisms across our estates,
empowerment and development initiatives. we ensure that communities can voice their grievances
and concerns directly, facilitating a transparent and
We are deeply committed to involving and empowering responsive dialogue. (413-1)
the communities around us, addressing their concerns,
and safeguarding their rights. Building strong
relationships with local stakeholders and practicing
social responsibility are priorities in all our endeavors.
We pledge to address all grievances, complaints, and
concerns related to our operational impact, as per RSPO
standards.
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Assessing Our Impacts on Local
Communities (POJK51-F.25)
To ensure a deep understanding of the impacts our
operations have on local communities, we conduct a
Social Impact Assessment (SIA) at each of our sites.
These assessments are crucial for identifying both actual
and potential impacts on the communities surrounding
our operations. By analyzing socio-demographic and
cultural factors, SIAs offer valuable insights that guide
us in mitigating possible conflicts and adverse outcomes.
(413-1)
Adhering to RSPO standards, we initiate these
assessments at the beginning of our operations in each
estate, with a commitment to reevaluating the findings
at least once every two years. This approach allows
us to stay informed and responsive to the evolving
dynamics and needs of the communities we engage with,
ensuring that our presence contributes positively to their Our team conversing, discussing about
community feedback through social
sustainable well-being. (413-1) mapping activities to guide future
actions.
To comprehensively understand the social dynamics and
conditions of the local communities where we operate,
we implement Social Mapping exercises. Recognizing
the distinct characteristics of each community, including to refine our strategies based on community feedback
their specific concerns and needs, Social Mapping and scientific insights, thereby ensuring our operations
serves as an invaluable tool. It provides tailored program are sustainable and socially responsible from the outset.
recommendations aimed at mitigating the potential (413-1)
negative impacts associated with each community’s
unique social fabric. (413-1) We actively engage with local communities to gather
their perspectives through Focus Group Discussions
Our strategy includes conducting Social Mapping every (FGD) and informal conversations. These interactions
four years, with an annual review of the findings to are invaluable for obtaining nuanced insights that both
ensure our actions remain relevant and effective. Both supplement and verify the findings from our impact
Social Impact Assessments (SIA) and Social Mapping evaluations and Social Mapping studies. Through these
studies are carried out by independent external parties, discussions, communities can critique the effectiveness
ensuring objectivity and integrity in data collection and of our initiatives and suggest improvements or
analysis. This approach underscores our commitment expansions to our existing programs.
to understanding and responsibly addressing the social
implications of our operations, thereby fostering positive FGDs, which typically involve twenty-five participants
community relations and sustainable development. representing diverse stakeholder groups, are designed
(413-1) to elicit feedback on our impacts and to understand the
expectations and concerns of the local community. We
Before initiating operations at any of our sites, we conduct FGDs annually in our West Region, whereas in
undertake an Environmental Impact Study, known in the East Region, we have found that a more informal and
Indonesia as Analisis Mengenai Dampak Lingkungan personal approach to engagement aligns better with the
(AMDAL). This comprehensive study is conducted in line local cultural and social norms.
with Indonesian regulations and includes a social impact
assessment to ensure a holistic understanding of our Additionally, to ensure the accuracy of the insights
operations’ potential effects on both the environment gained from these discussions, we administer short
and local communities. The AMDAL study is detailed, surveys to at least thirty respondents in each estate.
encompassing environmental impact monitoring and This method helps us gather more information and
management plans (Rencana Pengelolaan Lingkungan validate the outcomes of our discussions, enabling us
dan Rencana Pemantauan Lingkungan, RKL/RPL), and to make informed decisions and tailor our community
incorporates a public engagement process. This process engagement strategies effectively.
is crucial for validating the study’s findings, allowing us
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Based on the above, we have identified actual and potential negative impacts of our operations, as described in
Table 36 below.
Table 36. Significant Actual and Potential Negative Impacts on Local Communities (413-2)
Actual/Potential Negative Impacts Location Description
Conflict and unrest related to plasma Potential social conflict, unrest and/or jealousy within the
ANJAS, KAL, SMM,
and partnership smallholders’ community as well as between the community and the Company
PPM, PMP
programs due to the plasma program
Conflict over land ownership and Social conflicts in the community due to unclear land ownership
PPM, PMP, ANJAP
ownership boundaries boundaries during land acquisition and compensation
Conflicts and complaints about Complaints that Company activities have caused environmental or
SMM, KAL, ANJA
operational impacts social issues
ANJA, ANJAS, KAL, High expectations to receive jobs, community development
Expectations and dependence on
SMM, PPM, PMP, programs, and/or donations from the Company, potentially causing
Company programs and donations
GSB, ANJAP conflicts when they are not provided
Damaged roads used by employees to and from estates, as well as
Infrastructure damage KAL, ANJAS
by the local community
ANJA, ANJAS, SMM,
Wildfires causing economic and public health impacts on local
Uncontrolled land and vegetation fires KAL, PPM, PMP,
communities, as well as ecosystem damage
ANJAP
Respecting the Rights of Local
Communities
Understanding the critical importance of land rights
to local communities’ livelihoods, we approach land
acquisition for plantation development with utmost
care to avoid conflicts over land boundaries and
usage rights. To ensure fairness and transparency
in acquiring new land, we have adopted Free Prior
Informed Consent (FPIC)-based protocols. This process
involves engagement with local communities and their
leaders, and local government authorities, ensuring all
parties are fully informed and in agreement before any
development begins.
Our engagement strategy not only helps to establish
positive relationships with communities around our
operations but also in assessing how our developments
can positively impact local well-being. Importantly, any
individual or community holding existing land use rights
has the option to decline transferring these rights to
ANJ, regardless of the compensation offered. FPIC from
affected communities is a mandatory prerequisite for
our land acquisition and development efforts to move
forward.
Our team and community members engaging in dialogue,
emphasizing the importance of open communication for
mutual growth and shared progress.
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A harmonious relationship and mutual trust
with the community are essential for us
because when the community thrives, we
all thrive.
In 2023, we report that our operations did not To ensure communities can voice their complaints, all
infringe upon the rights of local, tribal or traditional our estates are equipped with a Grievance Mechanism,
communities. Throughout the year, we received a total supported by an independently verified SOP. This
of 31 community complaints, with 10 originating from mechanism allows complaints to be lodged in person,
the East Region, whereas 6 of them were environmental- and via email or phone, with each grievance recorded
related matters. By the end of the year, we successfully and processed to ensure thorough investigation and
resolved all of these issues. This demonstrates our resolution within fourteen days of receipt. To further
commitment to maintaining harmonious relations with refine our grievance management, we have implemented
local communities and ensuring their rights and well- a stakeholder and grievance database to streamline the
being are upheld. (POJK51-F.16,POJK51-F.24) internal tracking, review, and handling of complaints.
Communication and Engagement with Our commitment to evaluating the effectiveness
of our community engagement efforts involves
Local Communities (POJK51-F.24)
multiple mechanisms, including monthly coordination
performance reviews and meetings at various
Our approach to community engagement is structured management levels to discuss and address issues beyond
around formal mechanisms such as stakeholder the estate level. The Sustainability Committee conducts
meetings, information sessions, dialogues and public quarterly reviews of RD programs and community
consultations. These interactions, which are essential activities, assessing a range of indicators to gauge
for executing Community Involvement and Development program success. Additionally, the effectiveness of our
(CID) initiatives, Responsible Development (RD) projects, community programs is scrutinized through internal and
or capacity-building activities, occur frequently with local external RSPO audits, focusing on management plans,
communities. Annually, each business unit organizes improvement efforts, and grievance handling.
at least one stakeholder meeting, providing a platform
to update communities on our projects, discuss CID In 2023, our community initiatives have had positive
initiatives, address concerns and respond to inquiries. and tangible outcomes, with increased self-sufficiency,
These meetings typically include smallholder farmers, contribution, and collaboration from the community. This
community leaders, local government representatives, growing sense of ownership among local communities
and our representatives, facilitating a comprehensive marks a promising step towards our goal of achieving
stakeholder analysis through continuous engagement. collective targets, highlighting a successful shift in
(2-29, 413-1) community engagement practices across our operations.
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APPENDIX 154 PT Austindo Nusantara Jaya Tbk.
Page 157
Independent Assurance Statement 00
GRI Content Index 00
Topics in the Applicable GRO Sector Standards
00
Determined as not Material
Cross-Reference to SDGs 00
POJK 51 Index 00
Notes on Methods and Conversion factors 00
Response to The Previous Year's Report's
00
Feedback
Feedback Form 00
Abbreviations 00
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APPENDIX 1
INDEPENDENT ASSURANCE STATEMENT
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APPENDIX 1
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APPENDIX 1
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APPENDIX 1
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APPENDIX 2
GRI CONTENT INDEX
Austindo Nusantara Jaya Tbk has reported in accordance with the GRI Standard
for the period 1 January 2023 - 31 December 2023
Gri Standard /Other Gri Sector
Disclosure Location Notes
Source Standard
GENERAL DISCLOSURE
GRI 2 : General
2-1 Organizational Detail 3, 4, 5 Disclosed
Disclosure
Entities included in the organization’s
2-2 3 Disclosed
sustainability reporting
2-3 Reporting period, frequency and contact point 3 Disclosed
2-4 Restatements of information 3 Disclosed
2-5 External assurance 3 Disclosed
Activities, value chain and other business
2-6 3, 4 Disclosed
relationships
2-7 Employees 124 Disclosed
2-8 Workers who are not employees 122 Disclosed
2-9 Governance structure and composition 28, 29, 32, 33 Disclosed
Nomination and selection of the highest
2-10 30 Disclosed
governance body
2-11 Chair of the highest governance body 29 Disclosed
Role of the highest governance body in
2-12 29, 32 Disclosed
overseeing the management of impacts
Delegation of responsibility for managing
2-13 32, 33 Disclosed
impacts
Role of the highest governance body in
2-14 22 Disclosed
sustainability reporting
2-15 Conflicts of interest 29 Disclosed
2-16 Communication of critical concerns 37 Disclosed
Collective knowledge of the highest governance
2-17 31 Disclosed
body
Evaluation of the performance of the highest
2-18 30 Disclosed
governance body
2-19 Remuneration policies 30, 31 Disclosed
2-20 Process to determine remuneration 31 Disclosed
2-21 Annual total compensation ratio 31 Disclosed
2-22 Statement on sustainable development strategy 21 Disclosed
2-23 Policy commitments 20, 21, 111 Disclosed
2-24 Embedding policy commitments 21 Disclosed
2-25 Processes to remediate negative impacts 37 Disclosed
Mechanisms for seeking advice and raising
2-26 37, 40 Disclosed
concerns
2-27 Compliance with laws and regulations 40 Disclosed
2-28 Membership associations 41 Disclosed
2-29 Approach to stakeholder engagement 35, 153 Disclosed
2-30 Collective bargaining agreements 135, 136 Disclosed
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Gri Standard /Other Gri Sector
Disclosure Location Notes
Source Standard
MATERIAL TOPICS
GRI 3 :MATERIAL
3-1 Process to determine material topics 22 Disclosed
TOPICS
3-2 List of material topics 22 Disclosed
MATERIAL TOPICS
13.1.1 82 - 86
13.2.1 80 - 81
13.3.1 98 - 112
13.7.1 114 - 118
13.8.1 92 - 97
13.12.1 150 - 153
GRI 3 :MATERIAL 13.15.1 126 - 134
3-3 Management of Material Topics Disclosed
TOPICS 13.16.1 135 - 137
13.17.1 135 - 137
13.18.1 135 - 136
13.19.1 138 - 147
13.20.1 125
13.22.1 45 - 50
13.23.1 51 - 57
GRI 201 : ECONOMIC
201-1 Direct economic value generated and distributed 13.22.2 50 Disclosed
PERFORMANCE
Financial Implications and other risks and
201-2 13.2.2 76, 80 Disclosed
opportunities due to climate change
Defined benefite plan obligations and other
201-3 50 Disclosed
retirement plans
201-4 Financial assistance received from gevernment 50 Disclosed
GRI 203 : INDIRECT
203-1 Infrastructure investment and sevices supported 13.22.3 61 Disclosed
ECONOMY IMPACT
203-2 Significant indirect economy impact 13.22.4 59, 60, 63 Disclosed
GRI 302 : ENERGY 302-1 Energy consumption within the organization 87 Disclosed
302-2 Energy consumption outside of the organization 81 Disclosed
302-3 Energy intensity 87, 88 Disclosed
302-4 Reduction of energy consumption 87, 90 Disclosed
Reduction in energy requirements of products
302-5 90 Disclosed
and services
GRI 303 : WATER AND
303-1 Interactions with water as a shared source 13.7.2 115, 116, 118 Disclosed
EFFLUENTS
Management of water discharged-related
303-2 13.7.3 116, 118, 119 Disclosed
impacts
303-3 Water withdrawal 13.7.4 116 Disclosed
303-4 Water discharged 13.7.5 116 Disclosed
303-5 Water consumption 13.7.6 116 Disclosed
Operational sites owned, leased, managed in, or
GRI 304 :
304-1 adjacent to, protected areas and areas of high 13.3.2 103 Disclosed
BIODIVERSITY
biodiversity value outside protected areas
Significant impacts of activities, products and
304-2 13.3.3 100 Disclosed
services on biodiversity
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Gri Standard /Other Gri Sector
Disclosure Location Notes
Source Standard
304-3 Habitats protected or restored 13.3.4 104, 106, 112 Disclosed
IUCN Red List species and national conservation
304-4 list species with habitats in areas affected by 13.3.5 105 Disclosed
operations
GRI 305 : EMISSIONS 305-1 Direct (Scope 1) GHG emissions 13.1.2 82, 83 Disclosed
305-2 Energy indirect (Scope 2) GHG emissions 13.1.3 82, 83 Disclosed
305-3 Other indirect (Scope 3) GHG emissions 13.1.4 82 Disclosed
305-4 GHG emissions intensity 13.1.5 82, 83, 84 Disclosed
305-5 Reduction of GHG emissions 13.1.6 82, 83, 84 Disclosed
305-6 Emissions of Ozone-Depleting Subtances (ODS) 13.1.7 82 Disclosed
Nitrogen oxides (NOx), sulfur oxide (SOx), and
305-7 13.1.8 91 Disclosed
other significant air emissions
Waste generation and significant waste-related
GRI 306 : WASTE 306-1 13.8.2 93 Disclosed
impact
306-2 Management of significant waste-related impact 13.8.3 94, 95, 96 Disclosed
306-3 Waste generated 13.8.4 93, 96 Disclosed
306-4 Waste diverted from disposal 13.8.5 93, 96 Disclosed
306-5 Waste directed to disposal 13.8.6 93, 95, 96, 97 Disclosed
GRI 308 : SUPPLIER
New supplier that were screened using
ENVIRONMENTAL 308-1 54 Disclosed
environmental criteria
ASSESSMENT
Negative environmental impact in the supply
308-2 54 Disclosed
chain and action taken
GRI 403 :
Occupational health and safety management
OCCUPATIONAL 403-1 13.19.2 138, 139 Disclosed
system
HEALTH AND SAFETY
Hazard identification, risk assessment, and
403-2 13.19.3 140, 141 Disclosed
incident investigation
403-3 Occupational health services 13.19.4 140, 141, 147 Disclosed
Worker participation, consultation, and
403-4 communication on occupational health and 13.19.5 139, 140 Disclosed
safety
Worker training on occupational health and
403-5 13.19.6 142 Disclosed
safety
403-6 Promotion of worker health 13.19.7 147 Disclosed
Prevention and mitigation of occupational health
403-7 and safety impact directly linked by business 13.19.8 139 Disclosed
relationships
Workers covered by an occupational health and
403-8 13.19.9 138, 139 Disclosed
safety management system
141, 142, 143,
403-9 Work-related injuries 13.19.10 Disclosed
144
403-10 Work-related ill health 13.19.11 141, 142, 144 Disclosed
GRI 404 : TRAINING
404-1 Average hours of training per year per employee 130 Disclosed
AND EDUCATION
Programs of upgrading employee skills and
404-2 128, 129 Disclosed
transition assiatnce programs
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Gri Standard /Other Gri Sector
Disclosure Location Notes
Source Standard
Percentage of employees receiving regular
404-3 131 Disclosed
performance and career development reviews
GRI 405 : DIVERSITY
AND EQUAL 405-1 Diversity of governance bodies employee 13.15.2 133 Disclosed
OPPORTUNITY
Ratio basic salary and remuneration of women
405-2 13.15.3 134 Disclosed
to men
GRI 407 : FREEDOM
Operations and suppliers in which the right to
OF ASSOCIATION
407-1 freedom of association and collective bargaining 13.18.2 136 Disclosed
AND COLLECTIVE
may be at risk
BARGAINING
GRI 408 : CHILD Operations and suppliers at significant risk for
408-1 13.17.2 135, 137 Disclosed
LABOR incidents of child labor
GRI 409 : Forced or Operations and suppliers at significant risk for
409-1 13.16.2 135, 137 Disclosed
Compulsory Labor incidents of forced or compulsory labor
Operations with local community engagement,
GRI 413 : LOCAL 59, 150, 151,
413-1 impact assessments, and development 13.12.2 Disclosed
COMMUNITIES 153
programs
Operations with significant actual and potential
413-2 13.12.3 152 Disclosed
negative impacts on local communities
GRI 414 :
New suppliers that were screened using social
SUPPLIER SOCIAL 414-1 54 Disclosed
criteria
ASSESSMENT
Negative social impacts in the supply chain and
414-2 54 Disclosed
actions taken
GRI 13-20 :
Management Material Topic - Employment
EMPLOYMENT 13.20.1 122, 125, 137 Disclosed
Practice
PRACTICES
GRI 13-23 : SUPPLY Management Material Topic - Supply Chain
13.23.1 57 Prosperity
CHAIN TRACEABILITY Traceability
Describe the level of traceability in place for
each product sourced, for example, whether the
13.23.2 57 Disclosed
product can be traced to the national, regional,
or local level, or a specific point of origin
Report the percentage of sourced volume
certified to internationally recognized standards
that trace the path of products through 13.23.3 48, 54 Disclosed
the supply chain, by product and list these
standards
Describe improvement projects to get suppliers
certified to internationally recognized standards
that trace the path of products through the 13.23.4 54 Disclosed
supply chain to ensure that all sourced volume
is certified
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APPENDIX 3
TOPICS IN THE APPLICABLE GRO SECTOR STANDARDS
DETERMINED AS NOT MATERIAL
GRI Sector GRI
No Topic Explanation
Standard Standard
Not Applicable
The following additional sector disclosures
1 13.3.6 Our business unit operates in the
are for organizations in the aquaculture
Plantation industry
Not Applicable
The following additional sector disclosure
2 13.3.7 Our business unit operates in the
is for organizations in the fishing sector
Plantation industry
Not Applicable
Management Material Topic - Natural A methodology related to Deforestation
3 13.4.1
Ecosystem Conversion or Conversion Free assessment is not yet
available.
Report the percentage of production
volume from land owned, leased or Not Applicable
managed by the organization determined A methodology related to Deforestation
4 13.4.2
to be deforestation- or conversion-free, or Conversion Free assessment is not yet
by product, and describe the assessment available.
methods used
For products sourced by the organization,
report the following by product:
- the percentage of sourced volume
determined to be deforestation- or
conversion-free, and describe the Not Applicable
assessment methods used; A methodology related to Deforestation
5 13.4.3
- the percentage of sourced volume for or Conversion Free assessment is not yet
which origins are not known to the point available.
where it can be determined whether
it is deforestation- or conversion-free,
and describe actions taken to improve
traceability.
Report the size in hectares, the location,
and the type of natural ecosystems Not Applicable
6 13.4.4 converted since the cutoff date on land During the reporting period, no land
owned, leased, or managed by the clearing was conducted
organization.
Report the size in hectares, the location,
Not Applicable
and the type of natural ecosystems
7 13.4.5 During the reporting period, there were no
converted since the cut-off date by
new suppliers to supply materials to us.
suppliers or in sourcing locations.
Describe the soil management plan,
including:
- a link to this plan if publicly available;
Not Applicable
- the main threats to soil health identified
8 13.5.1 During the reporting period, there were no
and a description of the soil
significant erosion incidents
management practices used;
- the approach to input optimization,
including the use of fertilizers.
Not Applicable
Management Material Topic - Pesticides The volume of pesticides used relatively
9 13.6.1
Use mild compared to other chemical (such as
fertilizer).
Not Applicable
Report the volume and intensity of
The volume of pesticides used relatively
10 13.6.2 pesticides used by the following toxicity
mild compared to other chemical (such as
hazard levels
fertilizer).
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GRI Sector GRI
No Topic Explanation
Standard Standard
Not Applicable
98% of ANJ's products are CPO and PK,
11 13.9.1 Management Material Topic - Food Security which are semi-finished materials, thus not
directly related to consumers, making this
disclosure not applicable
Report the total weight of food loss in Not Applicable
metric tons and the food loss percentage, 98% of ANJ's products are CPO and PK,
12 13.9.2 by the organization’s main products which are semi-finished materials, thus not
or product category, and describe the directly related to consumers, making this
methodology used for this calculation. disclosure not applicable
Not Applicable
98% of ANJ's products are CPO and PK,
13 13.10.1 Management Material Topic - Food Safety which are semi-finished materials, thus not
directly related to consumers, making this
disclosure not applicable
Not Applicable
Assessment of the health and safety 98% of ANJ's products are CPO and PK,
14 13.10.2 416-1 impacts of product and which are semi-finished materials, thus not
service categories directly related to consumers, making this
disclosure not applicable
Not Applicable
Incidents of non-compliance concerning 98% of ANJ's products are CPO and PK,
15 13.10.3 416-2 the health and safety which are semi-finished materials, thus not
impacts of products and services directly related to consumers, making this
disclosure not applicable
Not Applicable
Report the percentage of production
98% of ANJ's products are CPO and PK,
volume from sites certified to
16 13.10.4 which are semi-finished materials, thus not
internationally recognized food safety
directly related to consumers, making this
standards, and list these standards.
disclosure not applicable
Not Applicable
Report the number of recalls issued for 98% of ANJ's products are CPO and PK,
17 13.10.5 food safety reasons and the total volume of which are semi-finished materials, thus not
products recalled directly related to consumers, making this
disclosure not applicable
Not Applicable
Management Material Topic - Animal
18 13.11.1 ANJ does not have any animal products,
Health and Wellfare
therefore this disclosure is not applicable
Report the percentage of production
Not Applicable
volume from sites of the organization
19 13.11.2 ANJ does not have any animal products,
certified to third-party animal health and
therefore this disclosure is not applicable
welfare standards, and list these standards
The following additional sector disclosure Not Applicable
20 13.11.3 is for organizations in the aquaculture Our business unit operates in the
sector Plantation industry
Not Applicable
Management of Material Topic : Land and
21 13.13.1 There were no significant land clearances
Resources Rights
during the reporting period
List the locations of operations, where
land and natural resource rights (including Not Applicable
22 13.13.2 customary, collective, and informal There were no significant land clearances
tenure rights) may be affected by the during the reporting period
organization’s operations.
Report the number, size in hectares, and
location of operations where violations of
Not Applicable
land and natural resource rights (including
23 13.13.3 There were no significant land clearances
customary, collective, and informal
during the reporting period
tenure rights) occurred and the groups of
rightsholders affected.
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GRI Sector GRI
No Topic Explanation
Standard Standard
Not Applicable
Based on information from the Indigenous
Peoples' Alliance of the Archipelago
(AMAN) through the website of the
Management of Material Topic : Rights of
24 13.14.1 Indigenous Peoples' Area Registration
Indigenous Peoples
Agency (BRWA), there are no registered,
verified, or certified Indigenous Peoples
located around the concession of PT ANJ,
thus this disclosure does not apply
Not Applicable
Based on information from the Indigenous
Peoples' Alliance of the Archipelago
(AMAN) through the website of the
Incidents of violations involving rights of
25 13.14.2 411-1 Indigenous Peoples' Area Registration
indigenous peoples
Agency (BRWA), there are no registered,
verified, or certified Indigenous Peoples
located around the concession of PT ANJ,
thus this disclosure does not apply
Not Applicable
Based on information from the Indigenous
Peoples' Alliance of the Archipelago
Describe the identified incidents of (AMAN) through the website of the
26 13.14.2 violations involving the rights of indigenous Indigenous Peoples' Area Registration
peoples. Agency (BRWA), there are no registered,
verified, or certified Indigenous Peoples
located around the concession of PT ANJ,
thus this disclosure does not apply
Not Applicable
Based on information from the Indigenous
Peoples' Alliance of the Archipelago
List the locations of operations where (AMAN) through the website of the
27 13.14.3 indigenous peoples are present or affected Indigenous Peoples' Area Registration
by activities of the organization Agency (BRWA), there are no registered,
verified, or certified Indigenous Peoples
located around the concession of PT ANJ,
thus this disclosure does not apply
Not Applicable
Based on information from the Indigenous
Report if the organization has been involved Peoples' Alliance of the Archipelago
in a process of seeking free, prior, and (AMAN) through the website of the
28 13.14.4 informed consent (FPIC) from indigenous Indigenous Peoples' Area Registration
peoples for any of the organization’s Agency (BRWA), there are no registered,
activities verified, or certified Indigenous Peoples
located around the concession of PT ANJ,
thus this disclosure does not apply
Not Applicable
There are policies and procedures related
Incidents of discrimination and corrective
29 13.15.4 406-1 to this matter, and historically, there have
actions taken
been no significant incidents during the
reporting period
Not Applicable
We do not differentiate allocation of jobs
Describe any differences in employment
for specific positions. Promotion and
terms and approach to compensation
30 13.15.5 recruitment are based on competency.
based on workers’ nationality or migrant
Up to this point, members of the local
status, by location of operations
community have not yet developed the
necessary capacity for job roles needed
Not Applicable
The Indonesian government has issued a
Management of Material Topic : Living wage standard based on the cost of living
31 13.21.1
Income dan Living Wage for specific areas, thus ANJ, as one of
company operating in Indonesia, must
comply with the relevant regulations
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GRI Sector GRI
No Topic Explanation
Standard Standard
Report the percentage of employees and
workers who are not employees and whose Confidentiality Constraint
work is controlled covered by collective According to our contractors, data
32 13.21.2 bargaining agreements that have terms related to Contractor Workers' Salaries is
related to wage levels and frequency of information that cannot be shared by our
wage payments at significant locations of contractor
operation
Confidentiality Constraint
Report the percentage of employees and
According to our contractors, data
workers who are not employees and whose
33 13.21.3 related to Contractor Workers' Salaries is
work is controlled paid above living wage,
information that cannot be shared by our
with a breakdown by gender
contractor
Not Applicable
Management of Material Topic : Political Our policy explicitly states that we do not
34 13.24.1
contributions participate in or engage with any activities
related to politics
Not Applicable
Our policy explicitly states that we do not
35 13.24.2 415-1 Political contributions
participate in or engage with any activities
related to politics
Not Applicable
Management of Material Topic : Anti-
36 13.25.1 We do not have the ability to influence or
competitive behavior
control the market price of our commodity
Legal actions for anti-competitive behavior, Not Applicable
37 13.25.2 206-1 anti-trust, and We do not have the ability to influence or
monopoly practices control the market price of our commodity
Not Applicable
Management of Material Topic : Anti- Based on the company's historical track
38 13.26.1
corruption record and core values, this is not a
primary material concern for us
Not Applicable
Operations assessed for risks related to Based on the company's historical track
39 13.26.2 205-1
corruption record and core values, this is not a
primary material concern for us
Not Applicable
Communication and training about anti-
Based on the company's historical track
40 13.26.3 205-2 corruption policies and
record and core values, this is not a
procedures
primary material concern for us
Not Applicable
Confirmed incidents of corruption and Based on the company's historical track
41 13.26.4 205-3
actions taken record and core values, this is not a
primary material concern for us
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APPENDIX 4
CROSS-REFERENCE TO SDGS
SDG Action Taken by The SDG Action Taken by The
SDG Goal Page SDG Goal Page
Target Company Target Company
Economic impacts of Economic performance and
1,2 44-50 8,1 44-50
company activity growth
Provision of access to health Support to smallholders and
1,3 147 8,3 51-57
services to the poor cooperatives
Respect of community rights 8,3 Employment and job creation 122-125
1,4 152-153
to land Equal opportunity
Desa Fokus village resilience 8,5 of employment and 125-134
1,5 63-66 remuneration
building program
Prevention and eradication of
Gerbang Emas Edamame 8,7 135-137
forced labor and child labor
2,3 Cultivation, Tani Mandiri, 63-66
Fresh Water Aquaculture Protection of labor rights and
8,8 135-136
freedom of association
Floating Rice Fields and Food
2,4 63-66 9,1 Infrastructure investments 61-62
security programs
Provision of maternal health
3,1 147 Emissions reduction and
and child care services 9,4 82-86
monitoring
Provision of health services
3,8 in remote areas, and health 147
insurance for employees Hazardous waste
12,4 92-97
management
Provision of doctors, nurses,
3.c 147 Waste management and 3R
and midwives in clinics 12,5 92-97
programs
59-60,
Quality education for local
4,1 63-66, 12,7 Responsible sourcing 51-57
employees' children
69
Early childhood education 13,1 Managing climate risks 76-82
4,2 69
program in West Papua 13,2 Reducing GHG emissions 84-86
Learning and development Village- and community-
4,3 126-131
programs for employees 13,3 based fire prevention 63-68
programs
Equal opportunity and non-
5,1 126-134
discrimination policy Forest protection and
15,1 98-112
conservation
Prevention and protection
of women from harrasment 15,2 No deforestation policy 103-106
5,2 134
through the Gender
committee 15,3 Restoration of habitats 103-106
Support for women in Biodiversity monitoring and
5,5 132-134 15,5 103-111
leadership roles protection
Water management,
6,3 114-119 16,2 Eradication of child labor 135-137
effluents and discharges
Water management, Grievance mechanism and
6,4 114-119 16,6 37-40
withdrawal and efficiency whistleblower system
Provision of renewable 16,7 Membership in associations 41
7,1 energy to national electricity 87-88
grid
7,2 Renewable energy use 88
7,3 Energy intensity 87-88
Investments in renewable
7.b 87-88
energy
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APPENDIX 5
POJK 51 INDEX
No Index Name Page
A SUSTAINABILITY STRATEGY
A.1 Explanation of sustainability strategy 20, 22
B OVERVIEW OF SUSTAINABILITY PERFORMANCE
B.1 Economic aspects
B.1.a Quantity of products or services sold 47
B.1.b Revenue or sales 49
B.1.c Net profit or loss 49
B.1.d Environmentally-friendly products 48
B.1.e Involvement of local parties in relation to sustainable finance business processes 51
B.2 Environmental aspects
B.2.a Energy use 87 - 90
B.2.b Reduction of emissions produced 82 - 86
B.2.c Reduction of waste and effluents 94 - 97
B.2.d Biodiversity conservation 98 - 112
59 - 69
B.3 Social aspects
150 - 153
C ORGANIZATIONAL PROFILE
C.1 Sustainability vision, mission and values 18 - 19
C.2 Company address 5
C.3 Scale of the business
C.3.a Total assets or asset capitalization, and total liabilities 4
C.3.b Number of employees by gender, position, age, education, and employment status 123 - 124
C.3.c Shareholders and share ownership percentages 5
C.3.d Area of operations 3-4
C.4 Products, services, and business activities undertaken 4-5
C.5 Membership in associations 41
C.6 Significant changes in the organisation 4, 29
D REPORT FROM THE BOARD OF DIRECTORS
D.1.a Policies to respond to challenges in fulfilling the sustainability strategy 11 - 14
D.1.b Sustainable finance implementation 12 - 13
D.1.c Target achievement strategy 12 - 13
E SUSTAINABILITY GOVERNANCE
E.1 Person in charge of sustainable finance implementation 32 - 33
E.2 Development of sustainable finance competencies 31
E.3 Risk assessment on sustainable finance implementation 79
E.4 Stakeholder relations 35
E.5 Issues and challenges to sustainable finance 80
F SUSTAINABILITY PERFORMANCE
F.1 Activities to build sustainability culture 18, 30
ECONOMIC PERFORMANCE
Production targets and performance, portfolios, financing targets, or investments, revenue, and profit
F.2 45 - 48
and loss
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No Index Name Page
Production targets and performance, portfolios, financing targets, or investments in financial
F.3 50
instruments or projects that are aligned with sustainable finance
ENVIRONMENTAL PERFORMANCE
General aspects
F.4 Enviromental costs 50
Material aspects
F.5 Use of sustainable materials 79, 80, 88
Energy aspects
F.6 Energy consumption and intensity 87
F.7 Energy efficiency and renewable energy use measures and achievements 87 - 90
Water aspects
F.8 Water consumption 114 - 116
Biodiversity aspects
F.9 Impacts of operations in or near conservation or biodiversity areas 100
F.10 Biodiversity conservation efforts 103 - 106
Emission aspects
F.11 Quantity and intensity of emissions by type 82 - 84
F.12 Emissions reduction measures and achievements 84 - 86
Waste and effluent aspects
F.13 Quantity of waste and effluents produced by type 96, 116
F.14 Mechanism to manage waste and effluents 94, 118
F.15 Spills that occurred (if any) 95
Environmental complaint aspects
F.16 Number and nature of environmental complaints received and resolved 152 - 153
SOCIAL PERFORMANCE
F.17 Commitment to provide equal services and/or products to consumers 58
Employment aspects
F.18 Equal work opportunity 126 - 134
F.19 Forced labour and child labour 137
F.20 Regional minimum wage 122
F.21 Decent and safe work environment 138 - 144
F.22 Employee training and capacity building 126 - 131
Community aspects
F.23 Impact of operations on local communities 150 - 152
F.24 Community grievance 152 - 153
F.25 Environmental social responsibility initiatives 59 - 62, 151
Sustainable products/services development responsibilities
F.26 Innovation and development of sustainable finance products/services 45 - 46
F.27 Products/services which safety for consumerss have been assessed 58
F.28 Impacts of products/services 58
F.29 Number of products recalled 58
F.30 Customer satisfaction survey of sustainable finance products/services 58
G OTHERS
G.1 Written assurance by an independen party (if any) 156-159
G.2 Feedback form 175
G.3 Responses to the previous year's feedback form 174
G.4 List of disclosure in accordance with POJK 51/2017 169
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APPENDIX 6
NOTES ON METHODS AND CONVERSION FACTORS
GRI-303: Notes on Definitions
Water Consumption
a. Consumption for processing: water incorporated into the final product or used during the production process
b. Consumption for land application: water applied to plants, or effluents that have evaporated, stored in a controlled
manner due to contamination and cannot be used by other parties, and do not leave organizational boundaries
(Wastewater Treatment Plant)
GRI-305: Conversion Factors
No Parameter Source Unit Factor
Landuse Change
Modelling carbon sequestration and greenhouse gas e
1 Undisturbed Forest missions associated with oil palm cultivation and land- Ton C/Ha 268,00
use change (Henson I.E- 2009)
Review of emission factors for assessment of CO2
emission from land use change to oil palm in Southeast
2 Disturbed Forest Ton C/Ha 128,00
Asia (Agus, F., Henson, I.E., Sahardjo, B.H., Harris, N., van
Noordwijk, M. & Killeen, T.J. 2013)
European Union Commission (2009). Directive 2009/28/EC
3 Shrubland Ton C/Ha 46,00
Draft Annex V
Modelling carbon sequestration and greenhouse gas
4 Grassland emissions associated with oil palm cultivation and land- Ton C/Ha 5,00
use change (Henson I.E- 2009)
European Union Commission (2009). Directive 2009/28/EC
5 Tree Corp Ton C/Ha 75,00
Draft Annex V
Food Crops/ Annual Winrock (2010). N Harris, pers com. MODIS data 2000 to
6 Ton C/Ha 8,50
Crops 2007. Average of annual (5.0) and perennial (12.0) crops
OPRODSIM Henson I.E.(2005b) OPRODSIM, a versatile,
7 Oil Palm mechanistic simulation model of oil palm dry matter Ton C/Ha 63,83
production and yield
Fertilizer
8 Ammonium Nitrate Kg CO2 eq/ Ton 2.380,00
9 Sulphate of Ammonia Kg CO2 eq/ Ton 340,00
Gurmit S. (1995). Management and utilisation of oil palm
Double Ammonium by-products. The Planter,
10 Kg CO2 eq/ Ton 460,00
Phosphate Jensson T.K. and Kongshaug G. (2003). Energy
11 Urea consumption and greenhouse gas emissions in fertiliser Kg CO2 eq/ Ton 1.340,00
production. International Fertiliser Society, York, UK 28pp.
12 Ammonium Chloride Kg CO2 eq/ Ton 1.040,00
13 Kieserite Caliman J.P., Carcasses R., Girardin P., Pujianto, Kg CO2 eq/ Ton 200,00
Dubos B., and Liwang T. (2005) Development of agro-
14 Muriate of Potash environmental indicators for sustainable management Kg CO2 eq/ Ton 200,00
Ground Rock of oil palm growing: general concept and example of
15 Kg CO2eq/ Ton 44,00
Phosphate nitrogen.
16 Triple Super Phosphate Kg CO2 eq/ Ton 170,00
Ecoinvent v2 (GHG based on IPCC 2007-100 years).
Ground Magnesium
17 Kg CO2 eq/ Ton 547,00
Limestone
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No Parameter Source Unit Factor
Other
Global Warming
18 IPCC Fourth Assessment Report (AR4) Kg CO2 eq/Kg N2O 298
Potential
Hooijer A., S. Page, J. G. Canadell, M. Silvius, J. Kwadijk,
19 Peat Oxidation H. Wosten, J. Jauhiainen (2010) Current and future CO2 Ton CO2 eq/ha/Yr 54,60
emissions from drained peatlands in Southeast Asia.
Well to wheel analysis of future automotive fuels and
20 Diesel Fuel powertrains in the European context. Well-to-tank Kg CO2 eq/Liter 3,12
Appendix 1
Chase L.D.C and Henson I.E. (2010) A detailed greenhouse
21 POME gas budget for palm oil production. International Journal Kg CH4/Ton POME 13,10
for Agricultural Sustainability
22 National Grid Emission IEA Emissions Factor for 2012 Kg CO2eq/kWh 0,81
Sequestration in Tree regional default conservation sequestration (Cseq)
23 Ton CO2 eq/Ha/Yr 9,17
Conservation values recommended by RSPO
GRI-302: Conversion Factors
302-4 Calculation Methods
Type Of Energy
No Program Calculation Method
Reduced
Using biomass turbines for non-processing (Total Kwh / Total operational hours) x Total non-
1 Diesel fuel
energy process hours x Conversion factor kWh to GJ
((Old bulbs wattage x Number of bulbs) - (New
2 Switch to energy saving light bulbs Electrical bulbs wattage x Number of bulbs )) x Usage time
x Conversion factor kWh to GJ
Teleconferencing frequency x Amount of fuel x
3 Teleconferencing Diesel fuel
Number of trips x Fuel conversion factor
Energy consumption with fuel – Energy
4 Modification of machines from diesel to electric Diesel fuel
consumption with electricity
((Old AC wattage - New AC Wattage)) x Number
6 Switch to energy saving AC Electricity of AC x AC Usage time x Conversion factor kWh
to GJ
Working hours x Motor engine energy x
7 R2G (Rotary Removal Grit) Electricity
Conversion factor kWh to GJ
((Total electricity consumption x kWh to fuel
Modification of unconventional tin pump system conversion factor x fuel energy conversion factor)
10 Diesel fuel
from diesel to electricity - (Total electricity consumption x kWh to GJ
conversion factor))
11 SCADA for Automatization Electricity Time savings x Operational days x Pump energy
(Average electricity consumption – Actual
12 AutoMix Treatment Electricity electricity usage after the program) x Conversion
factor of kWh to GJ
(Average mileage in Km before the program –
Operational Transport Restrictions for Guest and
13 Diesel fuel Actual mileage in Km) / Km to liter conversion x
Staff Pickup Service
0,036 GJ/Liter
(Energy consumption before implementation
14 FFB grading conveyor Electricity – energy consumption after implementation) x
conversion factor of kWh to GJ
(Energy use of the Pond 5 pump) x conversion
15 Deactivation of pump in Pond 5 in the waste area Electricity
factor of electricity to GJ
(Energy consumption before implementation
16 Reducing power of LTDS 2 Fan Electricity – energy consumption after implementation) x
Conversion factor of electricity to GJ
((Old bulbs wattage x Number of bulbs) - (New
17 Photocell installation Electricity bulbs wattage x Number of bulbs)) x Usage time x
Conversion factor of kWh to GJ
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Type Of Energy
No Program Calculation Method
Reduced
(Average electricity consumption – Actual
Application of Legrand Timer on streetlights in
18 Electricity electricity usage after the program) x Conversion
housing and mill areas
factor of kWh to GJ
(Average electricity consumption – Actual
Optimization of High-Speed Separator Pumps for
20 Electricity electricity usage after the program) x Conversion
mud processing
factor of kWh to GJ
(Average electricity consumption – Actual
21 Optimization of electromotor oil pump Electricity electricity usage after the program) x Conversion
factor of kWh to GJ
302-4 Conversion Factors and Assumptions
1 kWh 0.0036 GJ
Light Bulb Usage (Mill) 40 Hours/Week
Estate-Airport Distance (2-way) 68 km
Fuel Consumption 17 km/liter
1 PK AC Standard Wattage 840 Watt
2 PK AC Standard Wattage 1920 Watt
1 PK Low Watt AC Wattage 660 Watt
2 PK Low Watt AC Wattage 1590 Watt
AC Usage Time 40 Hours/Week
R2G Usage Capacity 700 kg/Jam
R2G Motor Engine Energy 5 kWh
Light Bulb Usage (Biogas) 98 Hours/Week
Light Bulb Usage (CWT) 10 Hours/Day
Mill research results
kWh to Diesel Fuel conversion 0.3 L/kWh
mikrodata.bps.go.id
Diesel Fuel to GJ conversion 0.036 GJ/liter
GRI-306: Notes on Methods and Assumptions
1. Conversion factors used: 7. Assumptions for production waste calculation per
a. 1m3= 1000 liter recovery type:
b. 1 ton= 1000 kg a. Reuse: EFB that are applied directly to the soil.
2. Average oil density is 870 kg/m3 (measured from b. Recycle: EFB is used for composting.
testing), and we converted reused oil from liter to kg, c. Recovery: Palm fibers, and shells used as biofuel or
except for hazardous waste in ANJAP, PMP, and PPM. sold
3. Palm shell waste is generated from 8% of processed 8. Waste Type and Categories:
FFB. a. Non-Hazardous Production Waste: Shells, fibers,
4. Palm fiber waste is generated from 13% of processed EFBs.
FFB. b. Non-Hazardous Non-Production Waste: steel and
5. Sago fiber waste is generated from 14% of processed spare parts, tires, plastics and polybags, fertilizer
sago logs (Flach, 1997; Rumalatu, 1981). sacks, paper, organic, and inorganic domestic
6. Non-production waste is calculated from the waste.
difference of garbage truck weight when loaded with c. Hazardous Waste: batteries, filters, contaminated
waste compared to when it is unloaded. gloves and cloth, contaminated packaging,
medical waste, neon lamps/light bulbs,
cartridges, electronic devices.
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APPENDIX 7
RESPONSE TO THE PREVIOUS YEAR'S REPORT'S
FEEDBACK
Following the release of the 2022 Sustainability Report, throughout 2023 the Company did not receive
any responses nor feedbacks from stakeholders. Consequently, this report did not present specific
details regarding actions the Company may have taken in response to feedback from the previous
year. Nevertheless, the quality of the 2023 report has been enhanced to align with the GRI and GRI
Sector Standard (GRI 13: Agriculture, Aquaculture, and Fishing Sectors) guidelines, as well as POJK
No. 51/POJK.03/2017 concerning the Implementation of Sustainable Finance for Financial Services
Institutions, Issuers, and Public Companies.
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2023 Sustainability Report
FEEDBACK FORM
The 2023 Sustainability Report of PT. Austindo Nusantara Jaya Tbk. provides an overview of our sustainability performance. We
look forward to your inputs, constructive feedbacks and suggestions after reading this Sustainability Report, either by email or by
sending this form by fax/post.
YOUR PROFILE
Name (optional) : _______________________________________________________________________________________
Institution/company : _______________________________________________________________________________________
Email : _______________________________________________________________________________________
Phone/Cell phone : _______________________________________________________________________________________
STAKEHOLDER CATEGORY
( ) Shareholder or Investor ( ) Customer ( ) Employee ( ) Labor Union ( ) Media
( ) Supplier ( ) Business Organization ( ) Government ( ) Community Organization/NGO
( ) Other, please specify ____________________________________________________________________________________
Please pick from the statements below that best describe your opinion: Yes No
1. This report is easy to understand. ( ) ( )
2. This report is useful for me. ( ) ( )
3. This report sufficiently describes ANJ’s performance with regard to sustainability. ( ) ( )
Please rate the material aspects that you consider important for sustainability (from 1-most important to 8-least important)
GHG Emissions and Carbon Footprint Supply Chain Practices
GHG emission and energy efficiency Supplier environmental and social practices
Waste recycling Traceability
Climate risk and adaptation Labor rights
Water management Forced labor
Protecting Forests and Biodiversity Child labor
Biodiversity and conservation Freedom of association
Deforestation Prosperity and inclusive growth
Fire prevention and management Economic performance
Working Conditions Innovation and sustainable production
Occupational Health and Safety Socio-economic welfare and livelihoods
Training and education Local Communities
Diversity and women’s empowerment Rights of local communities
Community Involvement and Development
__________________________________________________________________________________________________________
Thank you for your participation.
Please send this feedback form to:
PT. Austindo Nusantara Jaya Tbk.
Corporate Communications
BTPN Tower, Floor 40
Jl. Dr. Ide Anak Agung Gde Agung Kav. 5.5-5.6
Jakarta 12950
Indonesia
Tel. +62 21 2965 1777
Fax. +62 21 2965 1788
Email: anj.corcomm@anj-group.com
www.anj-group.com
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ABBREVIATIONS
3R Reduce, Reuse, Recycle
Menggunakan masker, Mencuci tangan, dan Menghindari kerumunan or Wearing Masks,
3M
Washing Hands, and Avoiding Crowds
AANE PT. Austindo Aufwind New Energy
AELT ANJ Executive Leadership Team
AEI Asosiasi Emiten Indonesia or Indonesian Public Listed Companies Association
AGMS Annual General Meeting of Shareholders
AKAD Antar Kerja Antar Daerah or Inter-regional Job Placement
ALC ANJ Learning Center
ALS Assessor Licensed Scheme
AMDAL Analisis Mengenai Dampak Lingkungan or Environmental Impact Assessments
ANJ PT. Austindo Nusantara Jaya Tbk.
ANJA PT. Austindo Nusantara Jaya Agri
ANJAP PT. ANJ Agri Papua
ANJAS PT. Austindo Nusantara Jaya Agri Siais
APBS Asosiasi Perkebunan Besar Swasta or Association of Large Private Plantations
APINDO Asosiasi Pengusaha Indonesia or Indonesian Employer’s Association
ASSRAT Asia Sustainability Reporting Rating
BKSDA Balai Konservasi Sumber Daya Alam or Natural Resources Conservation Center
BOC Board of Commissioners
BOD Board of Directors
BPJS Kesehatan Badan Pengelola Jaminan Sosial Kesehatan or Healthcare Social Security Agency
BPJS Ketenagakerjaan Badan Pengelola Jaminan Sosial Ketenagakerjaan or Employment Social Security Agency
BRC British Retail Council
BSI British Standards Institution
CDP Climate Disclosure Project
CEO Chief Executive Officer
CER Certified Emissions Reduction
CFC Chlorofluorocarbons
CH4 Methane
CI Conservation International
CID Community Involvement and Development
CIRAD Centre de Coopération Internationale en Recherche Agronomique pour le Développement
CITES Convention on International Trade of Endangered Species
CLA Collective Labor Agreement
CO2 Carbon Dioxide
COVID-19 Coronavirus Disease 2019
CPO Crude Palm Oil
CSR Corporate Social Responsibility
EDC Electronic Data Capture
EFB Empty Fruit Bunches
EGMS Extraordinary General Meeting of Shareholders
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EHS Environmental Health and Safety
ELSAM Lembaga Studi dan Advokasi Masyarakat or Institute for Policy Research and Advocacy
EPMS Electronic Plantation Mobile System
EPR Extended Producer Responsibility
ERP Enterprise Resource Planning
ESG Environmental, Social, and Governance
ESP Electrostatic Precipitator
eTis Electronic Traceability Information System
FAO Food and Agriculture Organization
FAT Fatality
FDA Food and Drug Administration
FDR Fire Danger Rating
FFB Fresh Fruit Bunches
FGD Focus Group Discussion
FLAG Forests, Land, and Agriculture
FoKSBI Indonesian Sustainable Palm Oil Forum
FPIC Free, Prior, and Informed Consent
Gabungan Pengusaha Kelapa Sawit Indonesia or Indonesian Palm Oil Producers’
GAPKI
Association
GCG Good corporate governance
GHG Greenhouse Gas
GJ Gigajoule
GLAD Global Analysis and Discovery
GM General Manager
GMIT PT. Gading Mas Indonesia Teguh
GMS General Meeting of Shareholders
GPS Global Positioning System
GRI Global Reporting Initiative
GRK Gas Rumah Kaca
GSB PT. Galempa Sejahtera Bersama
HACCP Hazard Analysis and Critical Control Points
HCFC Hydrochlorofluorocarbon
HCS High Carbon Stock
HCSA High Carbon Stock Approach
HCV High Conservation Value
HCVRN High Conservation Value Resource Network
HCVRN's ALS HCVRN's Assessor Licensed Scheme
HGU Hak Guna Usaha or Land Cultivation Right Titles
HIRARC Hazard Identification, Risk Assessment & Risk Control
HR&CM Human Resource & Change Management
HRO Human Resources Officer
ICS Incident Command System
ICSA Indonesia Corporate Secretary Association
IDM Indeks Desa Membangun or Village Development Index
IDP Individual Development Plan
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IDX Indonesia Stock Exchange
IFM Integrated Fire Management
IGCN Indonesia Global Compact Network
IKE Indeks Ketahanan Ekonomi or Economic Resilience Index
IKL Indeks Ketahanan Lingkungan or Environmental Resilience Index
IKS Indeks Ketahanan Sosial or Social Resilience Index
IMT Incident Management Team
IPCC Intergovernmental Panel on Climate Change
ISCC International Sustainability and Carbon Certification
ISO International Organization for Standardization
ISPO Indonesian Sustainable Palm Oil
IUCN International Union for Conservation of Nature
Izin Usaha Pemanfaatan Hasil Hutan Bukan Kayu - Hutan Alam or Business License for
IUPHHBK-HA
the Utilization of Non-Timber Forest Products – Natural Forest
IWMWG Indonesia Water Mandate Working Group
JKN Jaminan Kesehatan Nasional or National Health Insurance
JSA Job Safety Analysis
KADIN Kamar Dagang dan Industri Indonesia or Indonesian Chamber of Commerce and Industry
KAL PT. Kayung Agro Lestari
KB Keluarga Berencana or Family Planning Program
KEE Kawasan Ekosistem Esensial or Essential Ecosystem Area
KIMPER Kartu Ijin Mengemudi Perusahaan or Corporate Driving License
KK Kartu Keluarga or Family Card
KPI Key Performance Indicator
KTP Kartu Tanda Penduduk or Indonesian Identity Card
KTPA Kelompok Tani Peduli Api or smallholder farmer fire-fighting groups
LED Light-emitting diodes
LKS Bipartit Bipartite forum
LCA Life-cycle Assessment
LOC Letter of Commitment
LOTO lockout-tagout
LTI Lost Time Injury
LUC Land-use Change
LUCA Land Use Change Analysis
LURI Land Use Risk Identification
MAPAN Steadfast and advanced village Mantap dan Terdepan
MASSI Masyarakat Sagu Indonesia or Indonesian Sago Community
MDP Management Development Program
MoEF Ministry of Environment and Forestry
MoU Memorandum of Understanding
MSDS Material Safety Data Sheet
MT Management Trainee
MTC Medical Treatment Case
N2O Nitrous oxide
NBS Nature-based Solutions
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NDPE No Deforestation, No Peat, and No Exploitation
NGO Non-governmental organization
NOX Nitrogen oxide
NPP New Planting Procedures
NRC Nomination and Remuneration Committee
OD Occupational Disease
ODS Ozone-depleting substances
OHS Occupational Health and Safety
OHSAS Occupational Health and Safety Management System
OJK Otoritas Jasa Keuangan or Financial Services Authority
OJT On the Job Training
P&C Principles and Criteria
Panitia Pembina Kesehatan dan Keselamatan Kerja or Health and Safety Committee
P2K3
Governing Body
PAUD Pendidikan Anak Usia Dini or Early Childhood Education
Pendaki Peduli Keanekaragaman Hayati or Care for Biodiversity
PIPPIB Indicative Map of the Moratorium on Issuing New Licenses
PK Palm Kernel
PKO Palm Kernel Oil
PLN Perusahaan Listrik Negara or State Electricity Company
PM Particulate matter
PMP PT. Putera Manunggal Perkasa
POJK Peraturan Otoritas Jasa Keuangan or Financial Services Authority Regulation
POME Palm oil mill effluent
PONGO Palm Oil & NGO alliance
Posko DAMKAR Pos Komando Pemadam Kebakaran or Firefighting Command Post
PPE Personal Protective Equipment
PPM PT. Permata Putera Mandiri
PROPER Program for Ranking Corporate Performance
PSDH Provisi Sumber Daya Hutan or forest resource levy
Puskesmas Pusat Kesehatan Masyarakat or primary health centers
QIP Quality Improvement Program
R&D Research and Development
R2G Rotary Removal Grit
RADD Radar for Detecting Deforestation
RD Responsible Development
RKL Rencana Pengelolaan Lingkungan or Enviromental Management Plan
RPL Rencana Pemantauan Lingkungan or Environmental Monitoring Plan
RSPO Roundtable on Sustainable Palm Oil
SBTi Science-based Targets Initiative
SDG Sustainable Development Goals
SEIA Social and Environmental Impact Assessment
SIA Social Impact Assessment
SME Subject Matter Experts
Sistem Manajemen Kesehatan & Keselamatan Kerja or Occupational Health and Safety
SMK3
Management System
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SMM PT. Sahabat Mewah Makmur
SOP Standard Operating Procedures
SOX Sulfur oxides
SPOTT Sustainability Policy Transparency Toolkit
TK Taman Kanak-kanak or Kindergarten
TNA Training Needs Analysis
TNC The Nature Conservancy
UAV Unmanned Aerial Vehicle
UN United Nations
UNDP United Nations Development Program
UNFCCC United Nations Framework Convention on Climate Change
UNGC UN Global Compact
USD US Dollars
VAT Value Added Tax
VCU Voluntary Carbon Unit
WBS Whistleblowing System
WDPA World Database on Protected Areas
WEP Women’s Empowerment Principles
WFH Work from Home
WRI World Resources Institute
YIARI Yayasan Inisiasi Alam Rehabilitasi Indonesia
ZSL Zoological Society of London
PT Austindo Nusantara Jaya Tbk. 181
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182 PT Austindo Nusantara Jaya Tbk.
Names mentioned 48 people and organisations named in the text · linked when the evidence is strong
unresolved
org
PT Austindo Nusantara Jaya Tbk’s
p.5
unresolved
org
PT Austindo Nusantara Jaya Agri
p.5
unresolved
org
PT Austindo Nusantara Jaya Agri Siais
p.5
unresolved
org
PT Sahabat Mewah
p.5
unresolved
org
PT Kayung Agro Lestari
p.5 ×3
unresolved
org
PT Galempa Sejahtera Bersama
p.5
unresolved
org
PT ANJ Agri Papua
p.5
unresolved
org
PT Gading Mas Indonesia Teguh
p.5 ×2
unresolved
org
PT Austindo Aufwind New Energy
p.5
unresolved
org
PT Austindo
p.6
unresolved
person
Dr. Ide Anak Agung Gde Agung
p.7
unresolved
org
PT Austindo Kencana Jaya Trading
p.7
unresolved
org
PT Memimpin Dengan Nurani Crude Palm Oil
p.7
unresolved
org
Indonesia Stock Exchange
p.7
unresolved
org
Plasma & Partners
p.8
unresolved
person
Vice
· President Director
p.19 ×2
unresolved
org
Financial Services Authority
p.30
unresolved
person
Istama
p.31
unresolved
—
Adrianto Machribie
· President Commissioner
p.31
unresolved
person
AGMS
· President Commissioner
p.31 ×16
unresolved
—
J. Kristiadi
· Commissioner
p.31
unresolved
person
DR. Edi Purwanto
p.38
unresolved
org
Dana Pensiun Lembaga Keuangan
p.52
unresolved
person
Johan Hendrik Kokorule
p.55 ×3
unresolved
person
H. Farhan
p.58 ×2
unresolved
org
PT Kayung
p.72
unresolved
org
PT KAL
p.94
unresolved
org
Ministry of Environment and Forestry’s
p.97
unresolved
org
AS WATER IS A LIMITED
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