JAKARTA: Pandawa Agri Indonesia (PAI), the first Indonesian life science-based company with innovation in pesticide reductants, today announced its three sustainability frameworks to accelerate sustainable agriculture in Indonesia. The frameworks are called 3 PROs: 1) protecting the environment, 2) prospering the people, and 3) promoting responsible business practices. These frameworks were unveiled in the company’s first Sustainability Report released early this month.
“Our utmost priority is to transform agriculture practices to become more sustainable and environmentally friendly by developing breakthrough technologies focused on building climate resilient agriculture, alleviating pressure on the environment, and producing higher yields at the highest standard possible,” said Kukuh Roxa, CEO of Pandawa Agri Indonesia.
This report incorporates PAI’s performance in implementing Environmental, Social, and Governance (ESG) principles with the aim to accelerate the transition of Indonesian agriculture into a more sustainable sector. In this report, PAI highlights its contribution to reducing more than 1.5 million litres of pesticide usage in more than 2 million hectares of plantations in Indonesia and Malaysia. From this figure, more than 16,500 spray workers and farmers are protected from overexposure to hazardous chemicals from pesticides.
“Agriculture is one of the largest sectors in Indonesia and it plays a critical role in the climate crisis, generating 19-29% of the global GHG emissions. Last year, we contributed to reducing nearly 5,000 tons of carbon dioxide emissions as a result of minimizing pesticide use. This is in line with Indonesia’s Enhanced Nationally Determined Contribution target to reduce carbon emissions by 31.89 percent with our own efforts and 43.2 percent with international assistance in 2030,” add Kukuh.
In addition to developing innovative reductants, PAI also develops smallholder ecosystems to further encourage the creation of a sustainable agricultural ecosystem at the grassroots level. Kukuh said, “We create an end-to-end smallholder ecosystem: in the upstream, we facilitate farmers with technology and climate-smart agriculture approach in managing the cultivation, and in the downstream, we assist the farmers with integrated post-harvest management.
“Currently, we have developed an ecosystem of rice farmers in Nagekeo, coffee growers in Pagar Alam, and chili farmers in Banyuwangi.”
Smallholders powered by PAI’s innovations reportedly had an increase in crop productivity of up to 53% leading to an increase in their income because the crops were bought at competitive prices. PAI works in tandem with Rabo Foundation, the impact lending arm of Rabobank group to strengthen financial inclusion through the distribution of inclusive smallholders financing.
More than IDR 5 billion in total financing has been facilitated for smallholders through productive credit and product off-taking.
Diva Tanzil, Impact Finance Consultant of Rabo Foundation explained, “Our mandate is to enhance access to finance in Indonesia’s agriculture space targeting smallholder farmers. PAI’s corporate values, initiatives, and innovations are very much in line with our impact ambitions to reduce post-harvest losses, reinforce the value chain, and support smallholder farmers to transition to more climate resilient practices to future-proof their income.”
Diva adds, “This collaboration enables Rabo Foundation to expand its reach and generate positive impacts on smallholders in rural areas with limited access to financial services. Through a strong collaboration with PAI and local stakeholders, we hope to continue to improve the financial inclusion of farmers in harder-to-reach areas of the country.”
“The strategic steps taken by PAI also reap support from Dr. Ir. Musdhalifah Machmud, MT Deputy Minister for Food and Agribusiness Coordination, of the Coordinating Ministry for Economic Affairs of Indonesia. Dr Machmud said, “PAI’s initiatives really support the government’s plan to implement a green economy as one of the main strategies for economic transformation.”
“This also supports the acceleration of economic recovery post Covid-19 pandemic, as well as encourages the creation of inclusive and sustainable economic development.”
“By continuing to focus on providing a positive impact on the agricultural community and employees, while also maintaining good corporate governance, PAI is optimistic to accelerate the realization of more sustainable agriculture in Indonesia. “By extending our pesticide reductants reach and expanding the development of smallholder ecosystems, PAI is ready to accelerate Indonesian agriculture to become healthier, sustainable, and safer for the environment,” concluded Kukuh.
