Malaysian Plantation Company, KLK Agriservindo Commits to Sustainability

INVESTMENT - JAKARTA. PT KLK Agriservindo is a multinational company from Malaysia that operates in the agribusiness sector, primarily in palm oil and rubber plantations and processing. KLK itself has the largest operational areas in Malaysia, Indonesia, and Liberia.

In Indonesia, KLK has plantations in North Sumatra, Banka Belitung, Riau, East Kalimantan, and North Kalimantan. The total area of KLK plantations reaches about 216,000 hectares of palm oil plantations. The ownership of this land is spread across 26 subsidiaries.

The Head of Public and Government Affairs of KLK Indonesia, Mustafa Daulay, in his presentation to the media on Friday (15/3), said that they are committed to sustainability, especially not burning for new planting. They also monitor hotspots every day.

"We are committed to no deforestation in our operations," said Mustafa.

He continued, that every new area that is potential for all palm oil development will undergo a high carbon stock approach (HCSA) and high conservation value (HCV) assessment to determine the planting area and focus on areas that meet the low carbon stock criteria that do not have provable HCV, before and approval has been obtained from the rights holder.

From a business perspective, until September 30, 2023, KLK has invested a total of US$ 780 million in Indonesia. From this investment, KLK recorded revenue of US$ 600 million and a profit of US$ 93.2 million until the third quarter of 2023.

Meanwhile, KLK Group's CSR program in Indonesia focuses on four main pillars: education, community, environment, and employees. KLK Agriservindo, as part of the KLK Group, actively collaborates with local communities to spread positive impacts and expand social programs, including educational and environmental assistance.

KLK Indonesia has provided educational assistance to 8,834 students and is involved in environmental protection through tree planting campaigns and fish seed releases. The Kontandes Program aims to preserve the habitat of flora and fauna in East Kalimantan.

The CSR program distributed by the KLK Group in Indonesia reached IDR 124.69 billion from 2018 to 2023, with an increase every year. KLK is also a member of RSPO and has implemented the NDPE policy.

KLK Indonesia has taken fire prevention measures in plantations and surrounding forests, including field patrols, weather station installations, firefighter training, and hotspot monitoring.

KLK's investment in Indonesia has created 27,995 jobs and manages many palm oil mills, palm kernels, refineries, and biogas power plants.

Editor: Syamsul Azhar