Sustainable Oleochem Policy


Palm oil is a crucial commodity to the world. It is the most cost effective oilseed crop since the production of palm oil gives the highest yield per hectare while using the least area compared to other vegetable oil crops. Palm oil is seen as a solution when it comes to feeding the growing number of people on our planet. The production of this vegetable oil provides job opportunities, supports livelihoods and eradicate poverty for communities and workers in developing countries.

PT. Oleochem & Soap Industri , being a processor in palm oil industry, believes that producing palm oil sustainably safeguards environment, economic viability and supports social elevation of communities living and working in palm oil plantations. Being a leading global player, PT. Oleochem & Soap Industri commits to play an active role in supporting sustainable practices in the palm oil industry. PT. Oleochem & Soap Industri will also adopt sustainability standards in its own business operations.


This policy is applicable to all PT. Oleochem & Soap Industri operations and we expect all our third party suppliers of palm oil, palm kernel oil and its derivatives to adhere to the commitments in this Policy in their operations. PT. Oleochem & Soap Industri will work to ensure that our third party suppliers complies with our policy and will only source our supply through transparent and traceable network.

PT. Oleochem & Soap Industri has developed their respective responsible sourcing policy over the period 2021. Based on feedback from stakeholders as well as practicality of implementation, the Sustainability Steering Committee of PT. Oleochem & Soap Industri has decided to issue a policy which comes into effect 1 October 2022..

Our Commitments

PT. Oleochem & Soap Industri is committed to ensure a transparent, traceable and responsible supply chain by adopting no deforestation, no peatland planting and no exploitation of local communities and workers in our operations. PT. Oleochem & Soap Industri promise is further explained in the following core commitments.




And Inclusivity

And Traceable
Supply Chain


1.1. Legal Compliance

Adherence to all relevant local and national laws in our operations and sourcing of palm oil. We expect our third party suppliers to comply with national and international certification requirement, where relevant.

PT. Oleochem & Soap Industri upholds highest ethical conduct and corporate responsibility standards. We do not tolerate any forms of corruption or bribery and our suppliers shall comply with this.

1.2. Supplier Code of Conduct

This Code is applicable throughout the supply chain to ensure compliance to our policy and No Deforestation, No Peat and No Exploitation (NDPE) commitments.

1.3. Roundtable on Sustainable Palm Oil (RSPO):

PT. Oleochem & Soap Industri is a proud member of the RSPO, the palm oil industry’s certification and regulatory body and remains committed to engaging and maintaining a dialogue with its business associates, clients and wider stakeholders to achieve the mutual goal of responsible and sustainable palm oil development.

Wherever possible, we will engage our suppliers to implement RSPO certification and existing industries best practices within their operations.

In line with RSPO Code of Conduct for members, PT. Oleochem & Soap Industri commits to continuous improvement in our practices.


2.1. No Deforestation:

PT. Oleochem & Soap Industri will not knowingly source palm oil from plantations established on areas of significant environmental or cultural importance from November 2020 . We support the conservation of High Conservation Value (HCV)2 areas and Carbon Stock (HCS)3 forests.

High Conservation Value (HCV) areas which we recognize that in some circumstances, non-forest areas particularly those with significant cultural or historical value may also be considered as HCV land and such areas would fall within the scope of this policy

Carbon Stock (HCS) forests such as primary forests, high, medium and low density forest and young regenerating forests.

We expect our third party suppliers to identify areas of conservation and protection through High Conservation Values (HCV) and High Carbon Stock (HCS) assessments. These assessments must be led by licensed HCV assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (HCVRN-ALS) and HCSA registered practitioners. HCS areas are protected using Carbon Stock Approach as defined by the HCS Approach Toolkit.

2.2. No Peat:

PT. Oleochem & Soap Industri will not accept any new development on peatland regardless of depth. For existing plantations (indirect suppliers) on peat, best management practices for soil and peat plantations must be implemented, preferably in accordance with the RSPO Manual on Best Management Practices for existing oil palm cultivation on peat.


Refers to the date first established its Responsible Sourcing Policy in August 2021. Hence it is used as the cut-off date throughout this policy as it is established earlier compared to other sister entities.

2. For more details, please refer to the High Conservation Value Resource Network (HCVRN):

3. For more details on methodology, please refer to the High Carbon Stock Approach:

2.3. Zero Burning

Zero burn policy in all operations and require our suppliers and indirect suppliers not to use fire in land preparation for new planting, re-planting or any other developments

2.4. Biodiversity Protection

PT. Oleochem & Soap Industri supports to conduct Social & Environmental Impact Assessments (SEIA) in any new developments or operations by third party suppliers that might impose adverse impacts on environment and local communities.

Respect the traditional rights of indigenous groups and communities to hunt with controlled manner in areas designated for those purposes, provided that their hunting activities are legal, non-commercial, do not involve rare, threatened, or endangered species, do not threaten the long-term viability of the species, and do not have negative impacts on ecological processes important for agriculture and local ecosystem sustainability.

2.5. Use of Chemicals

We expect our third party suppliers to minimize the use of chemicals; pesticides and chemical fertilizers in plantation operations. We prohibit the use of pesticides classified under World Health Organization (WHO) Class 1A and 1B, Stockholm and Rotterdam Convention, and the use of paraquat by our suppliers in the production of palm products, except in specific circumstances permitted by government authorities

2.6. Greenhouse Gas Emission Reduction

Measure and progressively reduce Greenhouse Gas (GHG) emission and encourage suppliers to improve continuously by implementing RSPO Best Management Practices to Reduce Total Emissions from Palm Oil Production.


3.1. Human Rights

PT. Oleochem & Soap Industri supports Universal Declaration of Human Rights (UDHR) to respect and to protect human rights of all workers, including permanent, temporary, contract, and migrant workers. We will constantly ensure that our suppliers’ operation does not complicit in human rights abuse.

3.2. Indigenous and Local Communities

PT. Oleochem & Soap Industri recognizes and respects the rights of indigenous and local communities in line with Universal Declaration on the Rights of Indigenous Peoples (UNDRIP) to give or withhold their Free, Prior, and Informed Consent (FPIC)4 in all operations on lands to which they hold legal, communal or customary rights. We strongly encourages engagement with local stakeholder communities to ensure the FPIC process is correctly implemented and continuously improved.

3.3. Land Tenure Rights

We respect and recognize duties associated with land tenure rights in which local stakeholder communities hold legal, communal or customary rights. We encourage long-term protection and sustainable use of land and forests. This is done in accordance with our policy, local laws and regulations of the country we operate in..

3.4. Fair Labour

PT. Oleochem & Soap Industri is committed to ensure that the rights of all workers covered under this policy are according to local and national law, and aligned to the five fundamental conventions of International Labour Organization (ILO)5 . We also commit to ensure international best practices in place, where legal frameworks are not yet in place. The following principles are part of our policy:

3.5. Health and Safety:

Committed to provide a secured and healthy working environment free from occupational hazard.


4.1. Supplier Engagement

We will engage with our key suppliers to uphold our commitments and policies. This will include verification and monitoring of grievances, policy compliance and supplier progress towards meeting our responsible sourcing policy.

Suppliers who do not comply, or compliance cannot be confirmed with our Sustainable Palm Oil Sourcing Policy from August 2021 will be subjected to our Grievance Procedure and activation of Control Purchase Plan (CPC). We will work with them to develop time bound action plan, where necessary. Failure to respond to our Grievance Procedure and remedial action will cause suspension from PT. Oleochem & Soap Industri supply chain.

4.2. Client Engagement

PT. Oleochem & Soap Industri is committed to share the sustainability mechanisms for improvement with our clients


Committed to support the inclusion of scheme and independent smallholders in our supply base and improve their livelihoods by good agricultural practices, certification, initiating yield improvement programs, etc.


5.1. Traceability

PT. Oleochem & Soap Industri will work towards a traceable, transparent and responsible supply chain.

5.2. Grievances:

PT. Oleochem & Soap Industri has established a transparent grievance mechanism including an avenue for stakeholders to report grievances and a process to resolve complaints within our supply base.

PT. Oleochem & Soap Industri will work towards continuous improvement to meet the standards and expectations of stakeholders in an evolving global market. We will continue to analyze the policies as well as implementation process and engage in a constant review and improvement process. As new development or requirements are implemented, PT. Oleochem & Soap Industri will adjust and improve our policies in ways that are consistent with our sustainability commitments of protecting forests, peat lands, indigenous and local communities and human rights.

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