Indonesia Palm Oil Pledge

The Indonesian Palm Oil pledge was signed on 24th September 2014, and is an agreement between some of the leading palm oil producing companies, pledging to develop sustainable practices. This committment was made by the CEOs of 5 firms including:

• Asian Agri
• Cargill
• Golden Agri-resources
• Wilmar
• Indonesian Chambers of Commerce and Industry

Their collaborative pledge is to "work towards sustainable palm oil that is deforestation free, respects human and community rights and delivers shareholder value through collaborative multi-stakeholders efforts", aiming to promote environmental efficiency while improving Indonesia's market and economic competitiveness

The IPOP partnership for sustainable palm oil has a program with 3 overarching objectives

1. Farmer empowerment
   Small-scale farmers are the main target for IPOP and the industry's transformation. As a part of the global supply chain of palm oil, IPOP hopes to enable farmers by increasing their capability and capacity within the production chain.
2. Tenurial reform
   Alongside farmer empowerment, tenurial reform will encourage equality and an equal playing field between palm oil farmers and large corporations. The maintained sustainability of palm oil production relies on transparency between all the actors, and this is a step towards empowering the local communities which are affected the most.
3. Stakeholder engagement
   By increasing the partnership within program implementation, IPOP hopes to create a synergy which collaborates with the government in maintaining sustainable methods of palm oil production. If everyone is on the same page, implementation of rules and regulations, which had previously been elusive, would be more achievable. Environmental consciousness, community and social benefits as well as increasing economic competitiveness will hopefully arise from collaborative management.