InfoSAWIT, JAKARTA – Amidst the global demand for more sustainable and transparent agribusiness practices, Bumitama Agri Ltd. emerges as a pioneer in transforming the upstream palm oil sector. Headquartered in Singapore and listed on the Singapore Exchange since 2012, the company manages over 187,000 hectares of plantations and recorded revenues of SGD 1.41 billion by the end of 2024. However, beyond the business figures, Bumitama's achievements are underpinned by a strong commitment to sustainability and supply chain traceability.
Under the leadership of Chief Sustainability Officer Lim Sian Choo, Bumitama has strengthened its sustainability strategy by implementing the No Deforestation, No Peat, No Exploitation (NDPE) policy since 2015. This commitment was updated in 2022 with an impact-based approach, further embedding sustainability at the core of the company's operations.
One of the biggest challenges currently facing the palm oil industry is the implementation of the European Union Deforestation Regulation (EUDR), which demands traceability down to the geospatial coordinate level. Although this regulation has not yet been fully enforced, Bumitama is taking proactive steps. By 2024, 92.5 percent of the total fresh fruit bunches (FFB) processed—over 1.8 million tons from external sources—will be linked to precise geospatial coordinates, meeting Tier 3 traceability standards.
"EUDR is not just about compliance; it’s about building an inclusive and sustainable supply chain system," Lim stated, as quoted by InfoSAWIT from focus.world-exchanges on Sunday (July 20, 2025). He emphasized the importance of including smallholder farmers in this agenda—groups that have often been marginalized due to limited access to technology, data, and land legality.
In response, Bumitama has partnered with the Indonesian government and other industry players to support the registration of smallholder farmers through the e-STDB platform and provide capacity-building training. This initiative aims to bridge the gap between international regulations and on-the-ground realities, ensuring that smallholder farmers are not excluded from the global market.
These efforts are bolstered by collaborations with consultants and technology providers to prepare large-scale mapping and verification systems. Bumitama aims to achieve full polygon mapping for its entire supply chain by 2026—a significant milestone in the traceability of the palm oil industry.
According to Lim, the success of this transition relies not only on corporate efforts but also on support from regulators and capital markets. "Companies need access to tools, platforms, funding, and recognition. Only then can we bridge the capabilities of field actors with global market expectations," he remarked.
Bumitama's experience reflects that sustainability and traceability are not merely obligations but long-term business strategies that enhance competitiveness while addressing increasingly complex environmental and social challenges. (T2)
