Sateri Breaks into the Yarn Producing Industry

Sateri is one of the world’s largest viscose staple fibre (VSF) production companies, and forms part of the Royal Golden Eagle (RGE) group. The raw material produced is a very important ingredient in everyday items such as textiles, baby wipes and personal hygiene products.

On 31 May 2016, Sateri attained the necessary shares required to become majority partner of the company Linz Viscose Yarn Co, Ltd. The viscose fibres produced by Sateri are used to create yarn throughout the world, and acquiring the majority shares of Linz Viscose Yarn Co (Linz Nanjing) has enabled Sateri to gain a position in the viscose yarn production industry. Having acquired Linz Nanjing, Sateri is determined to further improve the quality of their viscose fibre, and to develop new viscose products for their clients.

Sateri VSFBy applying new technology and purchasing additional spinning machines, Satari plans to expand Linz Nanjing’s product range and increase its profitability. Ben Poon, Senior Vice President of Sateri, believes they will “be able to develop new and better viscose products for our customers” by introducing numerous new spinning technologies to the operation.

On 8 August 2016, Sateri confirmed having ordered machinery to expand its VSF production capacity by one million tonnes. This can possibly position the company to be the largest producer of sustainably sourced and manufactured VSF in the world by 2020. They plan on exporting 60% of the total production, while the remaining 40% will be used to meet the needs of the local textile industries. However, should the demand for VSF rise in the domestic sector, they will be ready to increase the supply. The additional capacity will be produced through already existing projects at their current operating locations, with operations starting in stages from 2018 until 2020, subject to market conditions. Sateri expects the investment for the project to exceed US$ 1.5 billion.

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Riau Expo 2016

The Riau Expo was held at the SKA Co-Ex this year, and celebrated the cultural, economic and ecological dynamics of Pelalawan.

The exhibition booth of Riau Andalan Pulp and Paper (RAPP), a company that forms part of the Asia Pacific Resources International Holdings Limited (APRIL) group, showcased a variety of projects they are involved in. The projects RAPP had decided to bring to focus at the Expo this year included the community empowerment programmes (CD), Riau Ecosystem Restoration programme (RER) and the Land and Forest Prevention programme.

The colourful batik work created by wives and mothers who have taken part in the batik courses provided by Batik House Mainstay assisted Community Development, attracted many visitors. With batik being an iconic part of Pelalawan bono, every effort was made to promote the Pelalawan culture. As well as the various handcrafted items such as batik cloth bags and lengths of batik cloth for sale, visitors could learn the basics of creating batik from expert artists of RAPP’s CD programme, Rumah Batik Andalan.

Glass jars filled with Foresbi honey were available for purchase at the CD stand. Foresbi honey is a natural product that is harvested from beehives in a RAPP conservation area, and is a product produced by CD partners in Pelalawan.

In addition to being able to view the resulting products of the CD programmes, visitors were able to view video footage taken by the Ecosystem Restoration Riau project, which displayed the incredible fauna and wildlife in the areas currently in the process of being restored.

Lastly a number of tools used in the Fire-Free Village Programme (FFVP) such as the Unmanned Aerial Vehicle (an unmanned monitoring tool or drone) and a variety of pumps, including a special Mark III and mini striker, were displayed.

During the closing ceremony RAPP won the category for best private booth, an achievement they are proud to have maintained. “Participation in this activity shows our support to the government for the process in Pelalawan”- Rudi Fajar, Director of RAPP.

Riau Expo 2016 APRIL

RAPP Provides Incentives to Cease Land Burning Practises

In a country where devastating forest fires occur on a regular basis during the dry period, fire prevention and the education thereof is of the utmost importance.

In 2014 Riau Andalan Pulp and Paper (RAPP), a unit of APRIL, initiated a program with the aim of promoting fire prevention in the Pelalawan region. They began providing incentives to villages that successfully prevent forest and land fires in and around their vicinities. These villages are Sering, Pulau Muda, Teluk Meranti and Teluk Binjai.

The incentives are the following: if a village is successful in preventing forest and land fires for a consecutive three months, RAPP will provide roughly RP 100 million (US$ 7670) worth of infrastructures for the village. However, if a fire does occur in their vicinity in an area smaller than one hectare, and they are able to extinguish it within 24 hours or less, RP 50 million (US$ 3844) will be awarded to the village in the form of a development fund or scholarships.

In February 2016, a large group of forestry and agricultural companies, non-governmental organizations (NGOs) and other concerned parties came together to found the Fire Free Alliance (FFA). Among these companies are the APRIL group and Asian Agri, both of which are part of the RGE Group of companies.

FFA members will share knowledge, information and resources as needed to introduce new fire prevention initiatives focused on the Fire Free Village Programme (FFVP).  In the high risk areas, the FFA are working together to improve fire detection, monitoring and extinguishing of fires.

The FFVP is a community focussed program which seeks to prevent fires rather than fighting existing ones. By working with local villagers, the program enables and incentivises them to cease land burning practises. FFVP was devised, initiated and coordinated by APRIL, and has the support of two local NGOs, the local government, police, military and Riau’s Disaster Mitigation Agency.

APRIL RAPP Fire Free Village Programme

RAPP: Pre-Retirement Training for Employees is Important

In life it is important to be prepared for what lies ahead. This is something that Riau Andalan Pulp and Paper (RAPP) has taken one step further; by introducing pre-retirement training for its elderly employees who will retire within the next two years. RAPP is part of the APRIL group, which is one of the companies managed by Royal Golden Eagle (RGE), a global company founded by Sukanto Tanoto.

The pre-retirement training has been set in place to ensure the independence and financial security of future pensioners, by learning to manage their pension funds wisely and ideally starting a small self-reliant business. It is held in collaboration with the Indonesian Professional Development Centre.

One employee, a crane operator from Futong, has been working for APRIL since the age of 17 and believes the training program is very helpful as it has provided him with inspiration for independent income strategies for when he retires.

The training is divided into three days of intensive training. The first two days are spent consulting with the facilitator, learning about revenue, and attending individual finance counselling sessions with a trained professional. On the third and final day the participants visit local car washes, a garment factory, and culinary businesses. They also attend farming and agriculture lectures in the Central Integrated Development and Business Training (BPPUT). At the end of the third day the participants are expected to have an idea of the kind of business they would like to start when they retire.

One of the attendees shared that he would be returning to his home town in Medan and begin gardening, implementing skills and knowledge which he had accumulated throughout his 36 years of working for the company.

Pre-retirement training has become an annual event within the April Company in an effort to prepare employees financially as well as mentally to be self-reliable and productive, to themselves as well as their communities, in their retirement.

RAPP employee pre-retirement training

Asian Agri Teaches Students about Sustainable Palm Oil Production

In the SMA Negeri 11 (SMAN 11) School in the Canal Village, Maro Sebo sub district, Batang, Asian Agri has introduced the program Schooling for Sustainable Palm Oil.

Asian Agri is one of the various independent companies of the Royal Golden Eagle (RGE) group of companies, and its manufacturing operations are based in Indonesia. It is one of Asia’s largest producers of raw palm oil, with a production of one million tons of palm oil annually.

Asian Agri students sustainable palm oilSchooling for Sustainable Palm Oil is taught for two hours every Saturday at SMAN 11 by staff members of the Asian Agri group, who believe that teaching these technical aspects of palm oil cultivation to the younger generation is vital. In general the students attending SMAN 11 are the children of smallholders, and the program helps to teach those children more about the palm oil business with classes ranging from plantation management to selecting the best quality seeds, the planting and maintenance thereof and the best way to implement these.

Welly Pardede, head of CSR and sustainability of Asian Agri, explained that the Schooling for Sustainable Palm Oil program aims to support the teaching and learning environment at the elementary, middle and high school, while at the same time making use of school property to generate profits.

To further the project, Asian Agri has contributed an area of approximately 0.7 hectares to SMAN 11 to cultivate palm oil on. Roughly 100 Palm oil trees can be planted on this area, and it is hoped that the program will cultivate the school’s self-reliance, allowing the school to become more financially independent in the future.

We support the activities of the program ‘Schooling for Sustainable Palm Oil’, and hope that this program can also be done by other plantation companies, especially those operating in Batang Hari” – Setdakab Batang Rizal, Assistant III, Maro Sebo.