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Permata Hijau considers traceability as one of the most important aspect of our drive towards sustainability. We also understand that the complexities of the palm oil supply chain with its multitudes of smallholders and middlemen means creating a full supply chain map will be a colossal challenge. As such we adopt a two tiered approach to traceability:

  1. Tier one: Traceability to the Palm oil mill
  2. Tier two: Traceability to the Plantation

We consider our oil or kernel to be traceable to palm oil mill if we have the following information of the supplying mills: name of the mill, address of the mill, and GPS coordinate of the mill. This traceability information will be updated on half-yearly basis.

We have managed to trace 100% of our oil and kernel to its mill of origin.

Traceability to the plantation is exponentially more difficult to achieve than traceability to the mill because of the very diverse sources of fruits supplying to the mills. For every large plantation that supply to our supplying mills there are many more smaller plantations and smallholders. 40% of Indonesian palm fruits are grown by the millions strong smallholders many of whom worked only 2 to 5 hectares of land. To add another layer of complexity, most of the smallholders sell their fruits through middlemen. We have devised a three tier definition on what constitute being traceable to plantation.

    1. For plantation companies, we require the following information to deem them as traceable:
      1. Name of the Plantation
      2. Address of the Plantation – at minimum the name of the Village (Desa) or the Sub-District (Kecamatan) is available
      3. GPS Coordinate
      4. Size of the Plantation
      5. Volume supplied to the mill
    2. For independent outgrowers, independent smallholders, and smallholder cooperatives, we require the following information to deem them as traceable:
      1. Name of the grower/cooperative
      2. Address of the grower/cooperative – at minimum the name of the Village (Desa) or the District (Kecamatan) is available
      3. Volume supplied to the mill
    3. For agents or other middlemen, we require the following information to deem them as traceable:
      1. Name of the agent/middlemen
      2. Address of the agent/middlemen facility – at minimum the name of the Village (Desa) or the District (Kecamatan) is available
      3. Area of operation (FFB sourcing) – at minumum the name of the Village (Desa) or the District (Kecamatan) is available
      4. Volume supplied to the mill

We aim to achieve 100% traceability to plantation by 2025. For our tracebility information please visit our traceability dashboard here