New Planting Procedure for SIPEF in Indonesia

Client: SIPEF is a privately owned agribusiness group currently operating agro-industrial activities in the production of oil palm products, as well as natural rubber, tea, bananas, flowers and foliage. The Company has been a member of the Roundtable on Sustainable Palm Oil (RSPO) since 2005.  

In 2020, SIPEF made the strategic decision to convert its old rubber estates into oil palm plantations in response to ongoing low commodity prices and the limited growth in the market for rubber. The decision has resulted in plans for the gradual conversion of the Bandar Pinang rubber estate in North Sumatra.

As a committed member of the RSPO, SIPEF is following the requirements of the RSPO’s New Planting Procedure (NPP) prior to any development taking place.

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Assignment: In 2020, PT Hijau Daun was engaged to conduct the NPP for SIPEF’s Bandar Pinang rubber estate for conversion. The NPP has required a suite of studies in order to minimise the impact of subsequent development. A team of biodiversity experts undertook an assessment on the site and found that it was located in an industrial agricultural landscape. The area had been a plantation for more than 100 years. The birds and mammals that were sighted and recorded were common species that live in an agricultural mosaic. There were eight villages that were located within or adjoining the plantation. A social survey was undertaken in each of these villages focused on evaluating the potential impact of oil palm development in the area and in its surrounding communities.

Outcome: The survey results incorporated the concerns of surrounding communities which incorporated in an integrated social and environmental management and monitoring plan designed to minimize the impacts of the conversion from rubber to oil palm and guide well integrated transition. Each community expressed that they valued being consulted about the development and appreciated being given the opportunity to provide input into the plans. PT Hijau Daun was able to combine the data obtained from the fieldwork, as well as desktop research, to compile all of the documents required for an RSPO NPP and management plan. These documents were subsequently submitted to the RSPO for review.