Cargill’s newly commissioned palm kernel crushing plant in Indonesia gets industry stamp of approval for sustainability
The Roundtable on Sustainable Palm Oil (RSPO) certifies the renewable-energy powered PT. Hindoli kernel crushing plant in South Sumatra, Indonesia
JAKARTA, Indonesia, November 3, 2016 — Cargill’s new palm kernel crushing plant at its PT. Hindoli oil palm plantation in South Sumatra, Indonesia, has been certified by the Roundtable of Sustainable Palm Oil (RSPO), reinforcing Cargill’s pledge of providing sustainable palm oil.
The kernel crushing plant is fully renewable-energy powered by a new biomass plant which converts oil palm waste into electricity for the crushing plant as well as employee housing units within the area.
Richard Low, chief operating officer of Cargill Tropical Palm Holdings Pte Ltd, said, “The RSPO certification is a testament to Cargill’s continuing efforts to produce more sustainable palm oil for the world. We believe that palm oil and its derivatives must be produced sustainably for the good of our planet and its people, and we will uphold this responsibility as we meet the growing global demand for sustainable palm oil.”
The plant will cater to growing local demand for certified-sustainable crude palm kernel oil by specialty fats and oleochemicals manufacturers, whilst the palm kernel expeller by-product will serve as a quality feedstock for the local animal husbandry sector. Drawing its palm kernel supplies from Cargill’s other RSPO-certified mills in South Sumatra – Sungai Lilin, Tanjung Dalam and Mukut – the PT. Hindoli kernel crushing plant can produce up to 98 metric tonnes of sustainable palm kernel oil and 124 metric tonnes of palm kernel expeller daily.
According to 2015 data from industry researcher Oil World, global demand for palm kernel oil continues to increase, growing by about seven per cent since 2011. Coupled with vigorous sustainability commitments made by global consumer goods companies, the demand for sustainably produced palm kernel products is expected to continue to grow.
PT. Hindoli will begin selling its RSPO certified palm kernel oil and palm kernel expeller in the international and domestic markets respectively, starting January 2017.
The RSPO certification of the PT. Hindoli kernel crushing plant comes on the back of Cargill’s PT. Harapan Sawit Lestari’s certification of Paku Juang kernel crushing plant in West Kalimantan earlier this year. Cargill is currently working towards RSPO certification for its third palm kernel crushing plant at Poliplant Group’s Sungai Kerandi mill in West Kalimantan.
The certification of Cargill’s palm kernel crushing plants underscores its commitment towards building a transparent, traceable and sustainable palm oil supply chain. Cargill has had its own policies in place for sustainable palm oil production since the acquisition of its first plantation in Indonesia in 1995, prior to the establishment of the RSPO principles. In 2014, Cargill updated its sustainable palm oil policy, committing to sustainable, deforestation-free and socially responsible palm oil.
About Cargill in Indonesia
Cargill began doing business in Indonesia in 1974 by establishing a feed mill in Bogor, West Java. Today, Cargill is headquartered in Jakarta and has more than 19,000 employees. We have 59 locations with offices, manufacturing plants and facilities throughout the country and business activities comprise animal nutrition, cocoa, copra, seaweed, processed food exporting, grain and oilseeds, palm oil, as well as starches and sweeteners. For further information, please visit http://www.cargill.co.id.