Sukanto Tanoto is a man of principles, generosity, and drive. In 50 years, the Indonesian entrepreneur has built an empire, comprising of 60,000 employees, worth over 18 billion dollars. Sukanto Tanoto helms the global resource giant that is RGE, which itself manages big names like APRIL, Sateri, and Pacific Oil and Gas. Impressively Sukanto Tanoto has built this empire – entirely from scratch – with a fierce loyalty to the 5Cs principle. The 5Cs principle is Sukanto Tanoto’s business philosophy that focuses on creating good for the Community, Country, Climate, Customer, and Company; it has guided every decision his businesses have made. Most recently, Asian Agri continued the tradition of making decisions good for the community, with its strategy to keep oil prices low.
Businesses and government, working hand in hand
In view of the expected spikes in oil prices during Ramadan, the Indonesian government set in place a Highest Retail Price (HET) policy last month that would keep oil prices affordable for the average consumer. Unsuprisingly, this new policy was one that Sukanto Tanoto’s Asian Agri, one of Indonesia’s largest palm oil producers, was only too happy to agree to. The company has a long history of backing government initiatives — one only need think back to Asian Agri’s unconditional support for the government’s transmigration scheme for farmers back in the 1980s. In conjunction with 76 other oil producers in Indonesia, a HET of 11,000 Rp was set, which guarantees savings for the many Muslims in the country observing the most important festival of the year.
A strategy, a win for all
The price cap, which Asian Agri will implement for non-premium oil products, will ensure that ordinary Indonesians continue to enjoy the same standard of living through this period of religious observance. It represents one example of the company’s commitment to Sukanto Tanoto’s principles, and looks set to benefit both the company and community alike in an exercise of shared value creation.
Asian Agri currently allocates part of its 1 million tonne per year Crude Palm Oil Produce to producing edible oil; the company produces Camar and Harumas cooking oil that they sell in Sumatra.