Asian Agri, part of the Royal Golden Eagle (RGE) group founded by Sukanto Tanoto, continues to make progress in improving the sustainability of palm oil production. Managing around 100,000 hectares of oil palm plantations across Indonesia and working closely with independent and plasma smallholders, the company has been strengthening its operations through circular economy practices that deliver measurable environmental and operational benefits.
One clear example is the company’s ability to turn production by-products into useful resources instead of waste. Through circular practices across its operations, 58% of empty fruit bunches (EFB) are now reused, helping return nutrients to plantation soils and supporting healthier palm growth.
Similarly, 54% of palm oil mill effluent (POME) is processed through methane capture facilities. This allows the company to convert waste into a valuable source of renewable energy while preventing methane, one of the most potent greenhouse gases, from being released into the atmosphere.
Asian Agri’s investment in renewable energy infrastructure has also produced significant results. The company currently operates 11 biogas plants across its mills, where methane captured from POME is converted into electricity. Each facility can generate between 1.2 and 2.2 megawatts, enough to power mills, kernel crushing plants, and nearby employee housing. Nearly 90% of the biogas produced is used to power operations, supplying about 40% of the company’s total electricity needs.
These efforts have helped Asian Agri reduce methane emissions by almost 90%, significantly lowering the environmental impact of its palm oil production.
Beyond biogas, Asian Agri is also making use of other palm oil by-products to support energy efficiency. Palm kernel shells (PKS) are exported as renewable fuel for biomass power plants, while mesocarp fibre is used internally as boiler fuel to support mill operations.
As a result of these initiatives, 96% of Asian Agri’s total energy now comes from renewable sources, with more than 90% of this energy powering mills and kernel crushing plants.
Circular economy practices are also improving how resources such as water are managed. Asian Agri treats and reuses water within its operations before safely returning it to nearby rivers, ensuring that all discharges meet strict environmental standards that protect shared water sources used by surrounding communities.
The company also converts treated wastewater into renewable energy through biogas production, reducing the need to draw additional freshwater while improving energy efficiency.
Through this integrated approach, Asian Agri keeps water use between 0.9 and 1 metric ton for every metric ton of fresh fruit bunches processed, demonstrating how resource efficiency can support both environmental protection and operational performance.
These results show how circular economy practices can drive meaningful improvements in sustainability while supporting the long-term growth of the palm oil industry.
For Asian Agri, the journey continues. The company is working to deepen circular practices across its operations, further improving resource efficiency while supporting more responsible palm oil production in Indonesia.