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ADM Joins GAR and Tzu Chi Indonesia to Accelerate Progress in Indonesia’s Rural Economies

  • ADM partners with Golden Agri-Resources (GAR) and Tzu Chi Indonesia to expand the reach of rural development initiatives.
  • The programme will enhance access to childcare and promote sustainable rural entrepreneurship in Indonesia’s Riau province.

JAKARTA, Indonesia, Sept. 21, 2023 /PRNewswire/ — Three regencies in Indonesia’s Riau province will benefit from enhanced funding for rural development programmes, following an agreement signed today by humanitarian organisation Tzu Chi Indonesia, agribusiness Golden Agri-Resources (GAR), and nutrition company ADM.

Funded by a grant from ADM Cares, the social investment programme of ADM, the one-year agreement will implement two projects targeting communities within GAR and ADM’s supply chain. This partnership will expand GAR and Tzu Chi Indonesia’s existing childcare and sustainable agriculture education initiatives around GAR’s palm plantations in Riau.

Following the announcement, witnessed by participants from all three parties in Jakarta, Alexander Otten, Managing Director, Global Trade Asia at ADM said, “We’re proud to embark on this partnership which combines ADM and GAR’s shared supply chain and extensive network of farmers in Riau with Tzu Chi Indonesia’s grassroots expertise to enhance the resilience of rural communities in the country. Through ADM Cares and with the support of GAR and Tzu Chi Indonesia, we aim to empower our local communities by providing them with the necessary support, knowledge, and skills to drive economic change and improve the quality of life in Riau.”

Enhancing Access to Childcare in Rural Communities

Studies show that a lack of accessible childcare is a key constraint to women working outside the home. Increasing women’s participation in the workforce from around 53 to 58 per cent, in line with Indonesia’s G20 commitments, has the potential to add US$62 billion to the country’s economy and grow GDP by 0.7 per cent, according to the World Bank.

GAR operates more than 300 Child Care Centres or Balai Penitipan Anak (BPAs) across its Indonesian operations. Through this programme, 60 full-time caregivers at 35 BPAs in Riau will receive tailored training in childcare and early years education, alongside upgrades to facilities and classroom equipment.

This enhanced childcare provision will reach more than 760 children of plantation workers and help more women reintegrate into the labour market, delivering significant social and economic benefits.

Irwan Tirtariyadi, Head of Upstream Operations at GAR, said, “High-quality childcare provides benefits that reach far beyond the children in its care. Access to childcare is essential to allow women to work and earn income outside the home. This partnership will allow us to provide targeted training, support and facilities that will expand the impact of these BPAs, while building community resilience and economic independence.

“These centres will also sow the seeds of success for the next generation, empowering our communities from an early age with a strong educational foundation that will prepare them for a better future.”

Community Learning Centres

The second project stream will build on GAR’s network of Community Learning Centres (CLCs) in West Kalimantan and Riau to support rural communities in developing alternative income streams.

The partnership will establish one new CLC to educate more than 180 farming families in Riau on sustainable agriculture systems. The CLC will also support participants to monetise these skills by establishing Micro, Small and Medium-Sized Enterprises (MSMEs) and community-owned businesses.

A new Community Learning Centre in Riau will provide education on integrated sustainable farming to encourage community entrepreneurship
A new Community Learning Centre in Riau will provide education on integrated sustainable farming to encourage community entrepreneurship

GAR has supported communities to establish 37 MSMEs to date through the Bright Future Initiative, providing training in business planning and digital and financial literacy to help communities market their products. Drawing on GAR’s experience in Riau, this new initiative will establish 12 community groups that will participate in pilot projects aimed at developing integrated ecological farming practices and producing commercial organic fertilizers and crops, as well as enhancing cattle cultivation practices to increase efficiency and add value to farmers.

About Golden Agri-Resources Ltd (GAR)

GAR is a leading fully-integrated agribusiness company. In Indonesia, it manages an oil palm plantation area of 537,733 hectares (including plasma smallholders) as of 30 June 2023. It has integrated operations focused on the technology-driven production and distribution of extensive portfolio of palm-based products throughout its established international marketing network.

Founded in 1996, GAR was listed on the Singapore Exchange in 1999 and has a market capitalisation of US$2.3 billion as of 30 June 2023. Flambo International Limited, an investment company, is GAR’s largest shareholder, with a 50.56 per cent stake. In addition, GAR has several subsidiaries, including PT SMART Tbk, which was listed on the Indonesia Stock Exchange in 1992.

As an integrated agribusiness, GAR delivers an efficient end-to-end supply chain, from responsible production to global delivery. In Indonesia, its primary activities include cultivating and harvesting oil palm trees; the processing of fresh fruit bunch into crude palm oil (CPO) and palm kernel; refining CPO into value-added products such as cooking oil, margarine, shortening, biodiesel and oleo-chemicals; as well as merchandising palm products globally. GAR’s products are delivered to a diversified customer base in over 100 countries through its global distribution network with shipping and logistics capabilities, destination marketing, on-shore refining and ex-tank operations. GAR also has complementary businesses such as soybean-based products in China, sunflower-based products in India, and sugar businesses.

About ADM

ADM unlocks the power of nature to enrich the quality of life. We’re a premier global human and animal nutrition company, delivering solutions today with an eye to the future. We’re blazing new trails in health and well-being as our scientists develop groundbreaking products to support healthier living. We’re a cutting-edge innovator leading the way to a new future of plant-based consumer and industrial solutions to replace petroleum-based products. We’re an unmatched agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. And we’re a leader in sustainability, scaling across entire value chains to help decarbonize our industry and safeguard our planet. From the seed of the idea to the outcome of the solution, we give customers an edge in solving the nutritional and sustainability challenges of today and tomorrow.

Learn more at www.adm.com.

About Tzu Chi Indonesia

Tzu Chi Indonesia is the national branch of the humanitarian social organization Tzu Chi Foundation, established by Master Cheng Yen in 1966, with headquarters in Hualien, Taiwan. The Tzu Chi Foundation has so far expanded to 67 countries in the world and has delivered relief aid to more than 128 countries, regardless of ethnicity, race, and religion, based on principles of universal love. The organisation is active in the areas of charity work, health services, education and culture.

Learn more at https://www.tzuchi.or.id/eng/

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