Ensuring Quality Through Fresh Fruit Bunch (FFB) Supply Chain Traceability

We ensure that all Fresh Fruit Bunch (FFB) supplies can be traced back to the farmers’ plantations. This step is crucial in verifying that the supplies used by the company come from legally compliant farmers and meet legal requirements. The company is committed to building a sustainable and responsible supply chain system, and further enhancing the quality of our suppliers through a series of capacity-building programs.

Supply Chain

Traceable Palm Oil Supply Chain

As a key factor in maintaining the quality of our products, we ensure that all Fresh Fruit Bunches (FFB) processed by the company can be traced back to the farmers’ plantations. This is a complex but crucial step to assure buyers that the supplies we receive come from legitimate and legally compliant farmers.

 

Currently, the company only processes its own Crude Palm Oil (CPO) and does not receive external CPO supplies, making traceability to the mill (PKS) unavailable. Approximately 80% of the FFB processed by the company comes from internal supplies (core and plasma), while nearly 20% comes from third parties, including independent farmers, cooperatives, and neighboring plantation companies (Non-PKS).

 

In 2022, the company successfully achieved 100% traceability for all supplies delivered to the PKS. To maintain this traceability, which must be continuously updated, we consistently socialize the company’s supply chain framework to align with future goals. This supply data is also shared under a Limited Disclosure Agreement (Non-Disclosure Agreement) with product buyers, as part of our commitment to transparency and quality assurance.

 

To enhance the quality of external fruit suppliers, we actively engage in capacity-building programs. One mechanism we implement is regular technical guidance sessions. Through these sessions, we provide knowledge and skills to farmers to improve their agricultural practices. In addition to technical guidance, we support external farmers by providing them with fertilizers tailored to their crops’ needs and sustainable agricultural principles, thereby improving the productivity and quality of the fruit produced by our partner farmers. In doing so, we strive not only to maintain the quality of our products but also to contribute to the well-being and sustainability of farmers around us.

Support for Smallholders

Sustainability commitment is a prerequisite for our suppliers. We are dedicated to building strong and enduring relationships with farmers and cooperatives through partnership programs. We actively communicate the company’s supply chain framework with the goal of achieving a better concept for the future. We involve farmers and cooperatives in efforts to improve practices, including No Deforestation, No Peat, and No Exploitation (NDPE). This supply data is also shared through a Limited Disclosure Agreement (Non-Disclosure Agreement) with product buyers. We collaborate with various local suppliers in Indonesia (East Kalimantan, North Kalimantan, and Riau) operating in various sectors, including work equipment providers, machinery, transportation, plant care materials, and information technology. These actions are tangible steps in supporting smallholders and promoting our commitment to sustainability.

Gedung Gold Coast, Tower Liberty Lt. 16 A- H Jl. Pantai Indah Kapuk, RT.6, RW.2, Kamal Muara, Penjaringan, Jakarta Utara 14470

corp.secretary@fap-agri.com

(021) 50205811

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