Supplier Engagement
We work directly with our suppliers and partners to build capacity and support consistent, sustainable practice across our supply chain.
In 2025, 80% of our FFB came from third party suppliers and we source crude palm oil and palm kernels from 206 mills. These supplier consisting of independent smallholders, outgrowers, farmer cooperatives, plantation companies and mill, are essential to Permata Group’s sustainable supply chain.
We are dedicated to ensure that all third-party suppliers meet our sustainability standards, which cover environmental stewardship, fair labor practices, and traceability obligations. Our commitment to supplier is demonstrated through continuous educational and engagement programs. These initiatives focus on crucial topics such as : HCV & HCS preservation, peatland management, zero-burning practices, no-deforestation commitments, FPIC, occupational health and safety, labor, NDPE and traceability.
At a Glance
- Pillar
- Traceability
- Focus Areas
- 4 covered below
How do we engage our supplier?
Building supplier capability through structured, collaborative programs that drive lasting improvement.
Program 01
Supplier Assessment & Onboarding
All new and existing suppliers must sign our Supplier Code of Conduct and complete Permata Group’s self assessment covering legal land title & legality , environment, labour practices, certification, NDPE compliance , and traceability. In addition, new suppliers are screened via satellite monitoring to assess spatial risk. These assessment and monitoring insights collectively determine risk levels, prioritizing targeted capacity-building support and field visit.
Program 02
Capacity Building & Training
We invest in supplier capability through structured training programs on sustainable practices, best management practices, ISPO & RSPO certification, FPIC, NDPE and traceability data reporting. Training is delivered through field visits, workshops, and virtual meeting accessible across our supply base.
Program 03
Smallholder & Outgrower Support
We work directly with independent smallholders through our outgrower programs, providing high-quality palm seedlings, fertiliser, and knowledge transfer on Best Management Practices (BMPs) to support smallholder production while raising environmental and social standards.
Program 04
Field Visit & On-site Assessment
Suppliers are subject to periodic field visits and audit evaluations to ensure alignment with our Supplier Code of Conduct. The assessment scope covers legality & land right title, environmental practice, fair labour practice, occupational health and safety, supplier risk assessment & mitigation, traceability data collection and NDPE compliance.
Non-compliant Supplier
For any proven non-compliance, suppliers are required to provide a concrete corrective action plan with clear timelines. In the case of forest clearance, we will request the supplier to issue a moratorium / Stop Work Order (until HCV and/or HCS studies are commissioned and reviewed) or stop sourcing from the plantation responsible for deforestation. In the case of peat development, any land clearing is halted immediately and the affected peatland must be restored. In cases of social noncompliance, supplier must ensure that the situation does not escalate further whilst conflict resolution / mediation is taking place. Field visits were often conducted to assist our suppliers to close the gaps in their operations.
Failure to comply will result in immediate suspension from our supply chain until progress has been made or the issue has been resolved.
Partnering with peers
We also partner with our buyers to engage our supplier. Over the past few years we have worked with Olam Agri, LDC and Cargill in conducting workshops for our suppliers in Medan.
The workshop covered key sustainability issues such as NDPE commitment and implementation, Traceability to Plantation, NDPE-IRF, GHG emission etc. Each workshop was attended by hundreds of participants from companies within Permata Group's supply chain.
What We've Achieved
Training and capacity-building for suppliers
Technical assistance toward compliance
Particular focus on smallholder partners
Ongoing monitoring and feedback
Explore Our
Sustainability Journey
Discover our full range of sustainability commitments, initiatives, and performance across all pillars.