Environmental Impact Management

PT BSP is fully aware that plantation business in Indonesia has a huge environmental responsibility, hence conducted efforts to be actively involved in environmental conservation, including the commitment towards ISPO and RSPO requirements.
PT BSP environmental management in 2018 was focused on ISPO and RSPO compliance. In line with the provision of ISPO and RSPO during the certification process, all lands of productive palm plants are managed with regards to the preservation of biodiversity, conservation areas, riparian zones, as well as traditional and cultural heritages; the utilization of lands for plantations - both of Palm and Rubber – is managed so that to avoid possible conflicts with the locals and to provide positive contributions for the society’s economy and welfare.

Energy and Water Resources Consumption Efficiency

Palm industry is often considered to be an industry which uses a lot of natural resources. Bakrie Sumatera Plantations’s responds to the stigma by taking the necessary initiatives to reduce energy consumption. Efforts for saving the use of energy and water, are conducted at the corporate level and every business unit.
All business units of Bakrie Sumatera Plantations – including the corporate level (Jakarta) – have received the ISO 14001 certification in Environmental Management System. At the corporate level, every Department and Division has the responsibility in making the efforts for saving the use of water. While in every business unit, Bakrie Sumatera Plantations has set the target that is suitable for the optimization of the operational conditions, in the efforts to save the use of energy and water. Environmental Management Programs are implemented in all business units to ensure the implementation of environmental protection and conservation efforts audited by certification institutions through on-site evaluation of the energy-saving efforts conducted at each operational area of Bakrie Sumatera Plantations.

Energy Management

The use of diesel fuel as an unrenewable energy source is aimed to decrease, including through boiler modifications from SFPO type to Membrane type, which has a higher efficiency level, with the use of the alternative energy source of biomass (shells and fibers) as fuel, which has been carried out since 2008.

Water Management

In the palm plantations, Bakrie Sumatera Plantations uses water ditches - both natural and man-made - to help keep the humidity of soil in peatland areas, with the composition of 1 ditch per 4 lanes of oil palm plants. The monitoring of the water height in the ditches is conducted to ensure sufficient supply of water for the oil palm plants (to contain rain water in the rainy season and as a slow release reservoir during the dry season).
Bakrie Sumatera Plantations continuously monitors the efficiency of water usage regarding the efforts to reduce water consumptions which have been done since 2008, in line with Bakrie Sumatera Plantations’s effort to communicate on a regular basis to employees about the importance of efficient water use; as well as the maintenance of water treatment facilities and timely repair of the facilities in case of leakage.
Bakrie Sumatera Plantations continues to encourage all business units to use water sources wisely, both surface water and ground water; prioritizing the use of surface water for cleaning process, and ground water for more sterile production process.
For ground water use, Bakrie Sumatera Plantations strives to fulfill the need with available sources by safeguarding the water catchment area in the operational areas - including safeguarding the greenery of riverside areas - in order to avoid interfering with water utilization activites of the local community and other stakeholders.
Water supply is also provided through the utilization of recycled water from the waste liquid processed in the Liquid Waste Treatment Installation owned by every business area.
Bakrie Sumatera Plantations is committed to continue the efforts to ensure energy efficiency in its operational activities

Waste Management

Palm and rubber plantations and industries produce various types of waste, both solid and liquid.

Solid Waste

Empty fruit bunches

  Since 2011, Bakrie Sumatera Plantations have already conducted composting by utilizing empty fruit bunches in Unit Jambi. The results are applied for planting and maintenance activities of oil palm trees and hamper the growth of weeds.

Shells and Fibers

  Bakrie Sumatera Plantations utilizes the discharged solid waste (shells) and fibers for alternative energy for boiler fuel, for mulch in oil palm nurseries and as construction materials for road pavement in operational areas.

Liquid Waste

In order to reduce river pollution by palm oil plant’s waste water, Bakrie Sumatera Plantations utilizes the plant’s liquid waste as organic fertilizers to increase the production of fresh fruit bunches (FFB). The plant’s waste water is treated through the land application system.
In addition to preventing soil pollution due to dieselfuel spill at emergency conditions, Bakrie Sumatera Plantations uses storage tanks in the Bunut warehouse as well as develops water resistant floor and container.
Furthermore, in preventing the pollution of soil and water, as well as in maintaining environmental sanitation and employees’ health, Bakrie Sumatera Plantations handles the anorganic waste management on a sustainable basis, in coordination with the local Regencial Government.

Waste Water Treatment

For the Waste Water Treatment Facilities (Instalasi Pengolahan Air Limbah - IPAL), Bakrie Sumatera Plantations operates 8 processing ponds in Jambi 1 Business Unit (AGW), 11 processing ponds in Jambi 2 (SNP) and 7 processing ponds in Sumbar (BPP Air Balam). For the SNP and BPP, Bakrie Sumatera Plantations has implemented the Clean Development Mechanism/CDM technology (see the section on Green House Gas Emission Reduction)

Hazardous Materials Waste

The Government has applied more stern regulations on the handling of hazardous materials waste since 2014, requiring tripartite agreements among companies, collecting site operators and waste treatment operators.
Bakrie Sumatera Plantations has always been committed towards the regular monitoring of the use of waste, especially those categorized as hazardous materials, starting from supply transport, warehouse storage, usage procedures, to after-use handling.
Hazardous waste in the form of lubricant oil from production process in signicant volume; coming from the electricity power generator, turbine, vehicles, gear boxes of production machinery and service center activities. In addition, other hazardous waste can be in the form of used batteries, used oil filters, fluorescent/mercury lamps, used toner, used dust cloth and packaging of chemicals used in the plantation operations.
In terms of waste management, Bakrie Sumatera Plantations usually undergoes several stages as follows:

  • Requesting the license for temporary storage of hazardous waste issued by the Environment Office in Jakarta which is valid for three years;
  • Storing the hazardous waste for 90-180 days in compliance with prevailing Government Decrees;
  • Transporting the hazardous waste to collecting and disposal firms which already have the necessary licenses from the Ministry of Environment and Forestry

Conservation of Natural Environment

Biodiversity Protection

Maintaining biodiversity in the operational sites has been one of Bakrie Sumatera Plantations’s commitments towards balancing the operational activities with the natural environment and also in line with the requirements for the ISPO and RSPO certification process regarding the preservation of conservation areas. In 2014, Bakrie Sumatera Plantations did not conduct any new land clearance.

Conservation Areas

PT BSP develops and maintains conservation areas in several business units, by allocating land areas of 15-30 hectares which are rich in biodiversity and not planted with commodity plants. These conservation areas are developed as clusters in the middle of the plantation sites. This cluster scheme is used as a reference for the development of similar areas in the future. The total conservation areas of PT BSP in 2017 covered 63.45 Ha. The existence of these conservation areas signifies that PT BSP always maintain and preserve biodiversity as well as the traditional and cultural heritages in PT BSP’s plantations. PT BSP’s First Conservation areas has been inaugurated on 11 September 2006, located in the Air Balam estate in West Pasaman, which is run by the Sumbar Unit. Covering nearly 30 hectares of area, the forest is named after the founder of the Bakrie Business Group, H. Achmad Bakrie.

To date, PT BSP is safeguarding the conservation areas which serves as areas for the preservation of rare flora and fauna, water absorption, and for educational purposes. Jointly managed with the Forestry Office, the forest has been safeguarded by the local community who has been well informed about sustainable forestry. PT BSP also manages the conservation areas in the operational areas of Sumut 1 and Jambi Units, covering 19.10 Ha and 14.35 Ha

Miniature Conservation Forest

Bakrie Sumatera Plantations through the Jambi Unit has also developed a 17 Ha “Miniature Conservation Forest”, located in the middle of palm estates and close to the local residential areas; aimed at preserving and developing prevailing biodiversities, through the planting of endangered plants in cooperation with related institutions in order to preserve the current ecosystems, the protection and preservation of flora and fauna inside the forest, the addition of flora species, as well as the implementation of monitoring and reporting measures; also functions as water retention area as well as O2-producing and CO2-absorbing area, sources of animal feed and recreational area for local residents and employees.
The Miniature Conservation Forest had been an awardee in the triennial Indonesian CSR Awards 2014 held by the Corporate Forum for Community Development (CFCD).

Vegetation Forests

Bakrie Sumatera Plantations through the Jambi Unit since 2011 has developed the vegetation forests in several estates aimed at preserving the environment, especially as the habitats of animals and plants, in the efforts to restore and enhance environmental quality and improve the balance of the ecosystem. The first vegetation forest has been developed in Tanjung Jabung Barat, Jambi. The vegetation forests and the habitats inside have been left to run through their natural course. Bakrie Sumatera Plantations does not conduct any special monitoring activities over the habitats of animals and plants within.

Biologically-Controlled Pest Handling

Bakrie Sumatera Plantations implements biological control over pest handling to reduce the use of pesticides / other chemical subtance, in line with the focus to maintain the quality of palm production as well as the implementation of environmentally-friendly operations.
The pest handling by biological control include the use of Bunga Pukul Delapan plant (Turnera ulmifolia and Turnera subulata) as the host for insects preying the Ulat Api pest (Setothosea asigna), as well as the breeding of Owls (Tyto alba) as predators of rats.

Maintaining High Conservation Value Areas

In addition to developing and maintaining the conservation area that are already rich in biodiversity, Bakrie Sumatera Plantations also identifies the areas with high conservation value (HCV) through the assessment of the estate coverage.
To facilitate the maintenance of HCV area, Bakrie Sumatera Plantations identified the presence of HCV areas in Sumut, Sumbar and Sumbagsel Units; covering the categories of biodiversity, environmental services and sociocultural aspects. At the Sumut 1 Unit with a total palm planted area of 7,330 Ha, there are 3 of 6 HCV types in an evaluation area of 11.51 Ha or 0.15%, i.e. HCV 1, HCV 4 and HCV 6; there is no indication of the existence of HCV 2, HCV 3 and HCV 5. At the HGU area of Sumbar, there are 3 types of HCV with a total area coverage of 507.6 Ha or 5.2% of the HGU areal, i.e. HCV 1, HCV 3 and HCV 4; there is no indication of the existence of HCV 2 and HCV 5. HCV 6 is found at a directly-bordering area but outside the HGU areal. At the Jambi Unit with total HGU areal of around 4,708 Ha there area 3 types of HCV in an evaluation area of 611.27 Ha or 12.98%, i.e. HCV 1, HCV 2 and HCV 4; there is no indication of HCV 3, HCV 5 and HCV 6.
HCV assessment process for the Central Kalimantan operational area is currently in the planning stage.

Green House Gas Emission Reduction

In compliance with the call of the United Nations (UN), through the UNFCCC (United Nations Framework Convention on Climate Change) on the importance of initiatives to reduce Green House Gas emission, Bakrie Sumatera Plantations has developed CDM (Clean Development Mechanism) projects in Jambi and Sumbar Units. The CDM facilities in Bakrie Sumatera Plantations’s BPP and SNP Units have been registered at UNFCCC since 12 November 2009 and 18 February 2010 respectively
In the CDM projects, Bakrie Sumatera Plantations converts the waste liquid in the Waste Water Treatment (WWT) Facilities into biogas as well as capturing and burning the methane gas produced in the process. The volume of biogas produced sets base for the calculation of carbon emission reduction. The methane gas produced through the process is of 21 times higher intensity than Carbon Dioxide CO2. The CDM project aimed at encouraging sustainable development of green house gas emission reduction as well as at utilizing biogas as an alternative source of energy in the long run. CDM hence also provides additional benefits such as the access for efficiency in lighting and cooking, enhancement of air quality and the quality of life.