Indonesian Sustainable Palm Oil (ISPO) is a policy made by the Indonesian Government that aims to improve the sustainability of the palm oil industry in accordance with the Indonesian Government’s rules and regulations, enhance the competitiveness of Indonesian palm oil in the world market, and participate in supporting the reduction of greenhouse gas emissions.

The implementation of the ISPO is mandatory, and is done to uphold the principles of guidance and advisory services. The initial stage of implementation for the ISPO certification is the garden classification (Garden Class) according to the Decree of the Agricultural Minister 07 of 2009 on Guidelines for Assessment of Plantation Business.

In March 2015, the Minister of Agriculture issued a decree No. 11 of 2015 concerning the Indonesian Sustainable Palm Oil Certification System that enhances the previous provisions governing the seven principles and criteria of ISPO. Those are:

• Business legality
• Plantation management
• Protection against the use of natural forest and peatland
• Management and environmental monitoring
• The responsibility towards employees
• Social and economic empowerment responsibility
• Sustainable business improvement

There have been 96 integrated plantation companies that have received ISPO certificates with a total area of 756.743 ha and a total CPO production of 3.849.484 tons until the period of June 2015 (Secretariat of ISPO, 2015). Our company does GHG counting using the ISPO Calculator methodology. We have done GHG counting and achieved the recommendation to decrease the GHG rate in 2017. Meanwhile, the report and counting process in 2018 is ongoing.

PT Tunas Sawa Erma acquired ISPO certification on December 11, 2016, while PT Berkat Cipta Abadi and PT Dongin Prabhawa received the certifications on March 22, 2019, and PT Gelora Mandiri Membangun is ISPO certified since January 19, 2024.

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

We have put extraordinary efforts to protect water quality in managing the quality of water by periodically testing samples and analyzing the results at locations designated by each oil palm plantation. Samples are analyzed and approved by the Indonesian government and we will continue to do this. We are committed reducing river water pollution impact and do not discharge wastewater from the CPO mill into the river. Currently, all entities under the TSE Group have obtained permits related to wastewater palm oil management to be channeled to Land Application.

Both of PT Tunas Sawa Erma (TSE)’s plantations namely POP-A located in Asiki Village and POP-B located in Getentiri Village, have each had a Wastewater Discharge Permit since 2021. PT Berkat Cipta Abadi (BCA) and PT Dongin Prabhawa (DP) had their own Wastewater Discharge Permits since 2020. Lastly, PT Gelora Mandiri Membangun (GMM) located in South Halmahera also has Wastewater Discharge Permit in 2023.

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

Integrated pest management is the practice of using a range of strategies to sustainably maintain pest populations within economic thresholds while creating minimal harm to local ecosystems. For example, by encouraging natural predators to reduce the use of chemical pesticides. Oil palm pests include rats, rhinoceros beetles, bunch moths, bagworms, and nettle caterpillars.

We are committed to continuous improvement and transparency in management and monitoring of endangered, endemic, and protected flora and fauna in order to maintain the biodiversity. Wildlife hunting is only allowed if it is performed by the local community and in a limited amount to fulfill the needs for food or traditional ceremony. Other than that, wildlife hunting is not allowed and the notice is shown on a signboard.

In support of the greenhouse gas reduction program, we are taking strategic steps to mitigate climate change by capturing methane gas and utilizing it as an energy source. This not only prevents greenhouse gas emissions but also reduces the reliance on fossil fuels. Approximately, 70% of palm oil plantations’ emissions are attributed to methane from POME. We aim to complete our first biogas plant by 2025, register it as a carbon project, and issue carbon credits. Additionally, TSE Group has committed to achieving Net Zero Emissions by 2023, identifying and reducing future greenhouse gas emissions across the organization.