SINGAPORE - Media OutReach Newswire - 25 September 2025 - Apical joins leading industry players and Yayasan Inisiatif Dagang Hijau (YIDH), the local foundation established by IDH – The Sustainable Trade Initiative, to launch the Aceh Sustainable Palm Oil Working Group, a collaboration to advance sustainable palm oil production across Aceh province, Indonesia.

The Working Group brings together Apical, a member of the Royal Golden Eagle (RGE) group of companies founded by Sukanto Tanoto, with palm oil producers and major consumer brands like Mars Wrigley, Mondelez, Nestlé, PepsiCo and Unilever. Collectively, the companies intend to support the Governor of Aceh's Sustainable Palm Oil Roadmap by promoting palm oil that is deforestation-free and inclusive of smallholders.

The Roadmap provides the practical backbone for this effort, setting out a balanced vision to strengthen Aceh's economic potential while protecting forests and community rights. Priority areas include:

• Raising smallholder productivity and incomes
• Increasing local revenue
• Reducing deforestation risk and restoring degraded land
• Resolving land-related conflicts
• Ensuring stronger protection of community rights

Apical's Head of Sustainability, Tor Mooi See, emphasised why smallholders are central to the work: "By empowering smallholders, we embed sustainability at every level of the supply chain. We also provide ongoing support on certification to ensure sustainability is maintained over time. This continuity is crucial for smallholders to not only meet but exceed sustainability standards and improve their economic resilience."

Apical has advanced these objectives in Aceh through its Sustainable Living Village (SLV) programme in Aceh Singkil. Working hand-in-hand with local government, partners, and villagers, SLV builds sustainable livelihoods by combining practical training, legal land support, and tree planting to create a model that benefits both people and the environment. Now in its second year, SLV has trained over 1,000 smallholders in better farming practices, issued more than 500 Cultivation Registration Certificates (STDB), and replanted 2,000 trees in restoration areas.

In parallel, the Aceh Provincial Government is translating the Roadmap into a practical Regional Action Plan (RAD). Measures include accelerating the issuance of STDBs and establishing provincial deforestation monitoring protocols, supported by a multi-stakeholder team.

Reflecting this commitment, Aceh Vice Governor Fadhlullah outlined the government's role in supporting a deforestation-free and traceable supply chain: "The Government of Aceh is responding to strong market signals by providing a deforestation monitoring system, accelerating land legality and farmer registration, and strengthening sustainable palm oil governance in Aceh. Through the Sustainable Palm Oil Management Unit Programme (PMU-KSB), Aceh will continue to implement the Sustainable Palm Oil Roadmap and RAD with multi-stakeholder support, including global palm oil buyers."

In a joint declaration, Working Group members agreed – at their own discretion – to align their company action plans with the Roadmap's objectives. Importantly, members will not coordinate on purchasing decisions, commercial terms or supplier selection, nor will they share sensitive or confidential information. YIDH will facilitate the development of a voluntary, non-binding joint action plan to support local stakeholders, acting as a neutral convener rather than a commercial partner. "YIDH believes markets have the power to make trade and investment more inclusive and sustainable. We see the need for a careful balance between safeguarding the environment and ensuring livelihoods," said YIDH Country Director Nassat Idris. "The Roadmap anchors the Aceh Government's vision for deforestation-free, inclusive palm oil. Through this declaration, global buyers have demonstrated their support via joint and individual actions in Aceh province. This is a strong example of how business objectives can align with sustainability and inclusivity goals."

The Working Group provides a platform for coordinated, province-wide implementation of the Roadmap, bringing together government, industry and civil society to strengthen traceability, protect forests and enhance smallholder livelihoods. The initiative also welcomes additional companies and participants across the palm oil value chain who share this vision, inviting them to join in demonstrating a sustainable and inclusive model that can be scaled and replicated beyond Aceh to other palm-oil producing regions of Indonesia.

Additional background on the Working Group and the joint declaration is available on IDH's website here.


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