Develop Seed Production Capability
- Develop own seed processing capability to ensure a steady supply of high quality germinated seeds
- Build seed processing facilities close to our plantations to lower transportation costs and minimise spoilage of germinated seeds
- Develop a core plantation of parent oil palms trees to provide seeds for our seed processing facilities
Develop Our Bulking And Logistics Services And Renewable Biomass Power Generation Business
- Increase the amount of services we provide to third party customers
- Build renewable biomass power plants in Kalimantan when appropriate or commercially viable and sell the carbon credits attributable to these future CDM projects
- Construct a deep water port and bulking terminal in East Kalimantan through our joint venture with Louis Deyfrus Commodities (expected to be operational by 2011)
- Add more vessels in 2011 / 2012 to handle the greater trading volume that would follow from the completion of a new port
Industry Prospects
With an annual growth rate of 7.88% over the past 40 years, palm oil has seen the most dynamic growth among all edible oils and fats. Moving forward, the worldwide consumption of palm oil in 2020 is expected to be 43 million tonnes.
Educational, Medical, and Social Initiatives
Education Initiatives
Since 2000, we have offered over 3,000 scholarships to children from the local communities. Scholarship recipients comprise the top three students from the local schools, as well as orphans or children from single-parent households, and they are offered employment opportunities with us when they graduate. We also contribute to the local schools by sponsoring local teachers.
Healthcare Services
We have been collaborating with local hospitals and clinics since 2000 to provide free basic medical services, such as medical check-ups, to the local communities.
Since 2000, we have offered over 3,000 scholarships to children from the local communities. Scholarship recipients comprise the top three students from the local schools, as well as orphans or children from single-parent households, and they are offered employment opportunities with us when they graduate. We also contribute to the local schools by sponsoring local teachers.
Healthcare Services
We have been collaborating with local hospitals and clinics since 2000 to provide free basic medical services, such as medical check-ups, to the local communities.
Educational, Medical, and Social Initiatives
Social and Cultural Activities
We value the diverse culture of Indonesia, and to further foster cultural values, we sponsor and participate in traditional events and social functions. We also contribute to the social and cultural welfare of the local communities by helping to build and repair places of worship such as mosques, churches and temples. In this way, we are able to maintain strong ties with the local communities.
We value the diverse culture of Indonesia, and to further foster cultural values, we sponsor and participate in traditional events and social functions. We also contribute to the social and cultural welfare of the local communities by helping to build and repair places of worship such as mosques, churches and temples. In this way, we are able to maintain strong ties with the local communities.
Plasma Programme
The Plasma Programme is an initiative by the Indonesian Government that seeks to encourage plantation owners in Indonesia to provide economic and social assistance to surrounding villagers (small landholders) by helping them increase their income and welfare. Under the Plasma Programme, Kencana is committed to help the villagers till their land and purchase FFB from them at a price set by a pricing committee established by the Indonesian government.
Through our Plasma Programme, over 3,800 local villagers who were previously plantation workers have now become new plantation owners. As plantation owners, local villagers benefit economically and socially with increased incomes and better welfare. They also receive training and education in oil palm cultivation. We believe that the improvement in their income will have a multiplier effect on the economy of the entire local community.
Through our Plasma Programme, over 3,800 local villagers who were previously plantation workers have now become new plantation owners. As plantation owners, local villagers benefit economically and socially with increased incomes and better welfare. They also receive training and education in oil palm cultivation. We believe that the improvement in their income will have a multiplier effect on the economy of the entire local community.
Environmentally-friendly Policies
We are always cognizant of the environmental impact that plantations may have, and we have been deeply committed to the implementation of environmentally friendly practices at our plantations since our establishment. Our environmentally friendly practices include:
ZERO BURNING
We adhere strictly to a 'zero burning' policy in our land clearing methods to avoid polluting the air and posing a health hazard in the region.
We are mindful that some aspects of our plantation and mill operations impact the environment. Therefore, prior to expanding any of our plantation and mill operations, we undertake a comprehensive and participatory independent social and environmental impact assessment to identify any potential negative impact and ensure that we comply with the prevailing governmental rules and regulations. The findings from the assessments are taken into account when planning and managing any new plantings.
We are mindful that some aspects of our plantation and mill operations impact the environment. Therefore, prior to expanding any of our plantation and mill operations, we undertake a comprehensive and participatory independent social and environmental impact assessment to identify any potential negative impact and ensure that we comply with the prevailing governmental rules and regulations. The findings from the assessments are taken into account when planning and managing any new plantings.
ZERO WASTE MANAGEMENT
We apply a "zero waste" policy by recycling waste products from our production facilities. The Empty Fruit Bunches (EFB) and liquid waste/effluents emitted from our palm oil mills are captured and re-used as natural fertiliser in the plantations. In addition, the EFB and kernel shells are used by our power plant as a biomass fuel source, reducing carbon emissions.
OTHER PRACTICES
Kencana is proud to pioneer the first commercialised biomass power plant project in Indonesia which sells "green" electricity to PLN. Located within the Group's plantation in Sumatera, the 6.0 MW biomass power plant utilises waste products from palm oil mills, such as EFB and palm kernel shells, as fuel for the generation of "green" electricity.In addition, the renewable biomass power plant has been registered as a Clean Design Mechanism ("CDM") project, and in August 2010 we signed an Emission Reductions Purchase Agreement ("ERPA") with the Danish Ministry of Climate and Energy to sell Certified Emission Reduction ("CER") credits from our biomass power plant.We also adopt eco-friendly plantation management practices such as the use of owls to control pests and gall flies to control weed populations.