Companies Support Deforestation-Free, Inclusive Palm Oil in Aceh
A group of companies, together with Yayasan Inisiatif Dagang Hijau (IDH Indonesia), announces the launch of the Aceh Sustainable Palm Oil Working Group, a non-exclusive, voluntary, non-binding initiative to support sustainable palm oil production in Aceh province, Indonesia.
Banda Aceh, Indonesia 13 August 2025 — The Working Group, which currently consists of Apical, Mars Wrigley, Mondelez, Musim Mas, Nestlé, PepsiCo, Permata Group, PT SMART Tbk, and Unilever, aims to support the production of deforestation-free, smallholder-inclusive palm oil by generally aligning individual actions with the Aceh Sustainable Palm Oil Roadmap as mandated in the Governor of Aceh Regulation No. 9 of 2024.
Trade has long been part of the Acehnese’s livelihood. Palm oil becomes the primary commodity connecting Aceh with the global markets which need deforestation-free supply. We welcome the initiative of global companies to continue supporting the sustainability of the palm oil sector in Aceh.
Aceh is home to over 3.5 million hectares of rainforests and peatlands, including the critically important Leuser Ecosystem where elephants, tigers, rhinos, and orangutans coexist. At the same time, palm oil remains Aceh’s top economic contributor.
The Aceh Government has committed to realizing a sustainable palm oil sector through the Aceh Sustainable Palm Oil Roadmap and the Regional Action Plan (RAD) for Sustainable Palm Oil in Aceh, as well as preparing the infrastructure to realize this commitment, including by accelerating the issuance of Cultivation Registration Certificates (STDB) and preparing provincial deforestation monitoring protocols along with a multi-stakeholder deforestation monitoring team.
The Government of Aceh has committed to responding to the strong market signals in achieving a deforestation-free and traceable supply chain by providing a deforestation monitoring system, accelerating land legality and farmer registration, and strengthening sustainable palm oil governance in Aceh.
Through the Sustainable Palm Oil Management Unit Program (PMU-KSB), Aceh will continue to implement the Sustainable Palm Oil Roadmap and Regional Action Plan through multi-stakeholder support, including global palm oil buyers.
Speaking during the launch, Ambassador of the Kingdom of the Netherlands to Indonesia, Timor-Leste, and ASEAN Marc Gerritsen said, “The Roadmap and the Working Group together reflect an impressive commitment by Aceh to lead responsibly, to strengthen multi-stakeholder engagement, and to ensure that the Aceh’s palm oil is managed in a way that benefits both people and planet.”
This Working Group sends a clear signal that Aceh is ready to lead by example.
“The ambition stated in the Aceh sustainable palm oil road map and the establishment of Aceh Sustainable Palm Oil Working Group are commendable. The road map provides a clear direction on how to achieve sustainable palm oil, and is an important step to reach Aceh’s ecological and economic objectives. We also sense a strong commitment to forge synergy between stakeholders. We believe these efforts put Aceh in a very good place to benefit from the increasing global demand for deforestation-free commodities,” said Special Envoy for Climate and Forest at the Royal Norwegian Embassy, Nils Hermann Ranum. Norway is currently the chair representing the Amsterdam Declaration Partnership.
The roadmap aims to balance this economic potential with environmental protection and social inclusion. Its goals include improving smallholder productivity, boosting local revenues, reducing deforestation risks, restoring degraded areas, facilitating land-related conflict resolution, and safeguarding community rights.
Facilitated by IDH, the initiative provides a neutral platform for collaboration and operates in full compliance with applicable competition and antitrust regulations.
IDH believes markets have the power to make trade and investment more inclusive and sustainable. We see the need for a balancing act in safeguarding the environment and ensuring livelihoods. The Roadmap anchors the Aceh Government’s vision for deforestation-free, inclusive palm oil and through the declaration of support, global buyers have shown their support for the Roadmap’s vision through joint and individual actions in Aceh province.
This is a great example of how business objectives can be aligned with sustainability and inclusivity goals.
Members of the Working Group have agreed to support the Roadmap goals and contribute to an action plan without sharing any sensitive and/or confidential information, including not sharing commercially sensitive and/or confidential information. In doing so, the members will retain full autonomy over their procurement and sourcing decisions while supporting voluntary sustainability efforts.
The working group is open to additional companies committed to supporting the shared vision of a more sustainable, inclusive palm oil sector in Aceh. Collaboration opportunities include helping mills adopt deforestation-free sourcing, integrating smallholders into global supply chains, and utilising Aceh’s forest monitoring systems.
For more information, please contact:
- Muhammad David, Senior Communications Manager
- Yayasan Inisiatif Dagang Hijau
- muhammad.david@idhtrade.org