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Photo Courtesy: GIZ/Canopy Indonesia
By TT News| May 03, 2021

Continental And BMZ To Expand Digital Traceability Project In Indonesia

Continental and the German Federal Ministry for Economic Cooperation and Development (BMZ) have agreed to expand their ongoing sustainability project in the Indonesian province of West Kalimantan in Borneo.

The expansion of the project aims to ensure full traceability of the natural rubber supply chain. The project objective is to train smallscale farmers in the natural rubber sector to grow high-quality raw materials in compliance with clearly defined sustainability criteria. An improvement in the quality of the raw material would lead to an increase in income of the smallholders. By 2024, the number of small farmers involved will be expanded from 450 to 4,000 farmers.

Claus Petschick, Head of Sustainability of the Tires business area at Continental, said, “Continental’s goal is to achieve 100 percent sustainable supply chains by 2050. The valuable experience we are gaining in this project allows us to progressively increase the transparency of our natural rubber supply chains.”

“Education and digitalisation are important contributors to making our supply chains more sustainable. Together with our partners, we are demonstrating in Borneo that this can succeed in the natural rubber sector. I am pleased that we are now significantly expanding this successful project,” he added.

Continental and BMZ implemented a digital traceability system for natural rubber in the project region back in 2018, through which all steps of the natural rubber supply chain can be evaluated in detail – from cultivation to further processing to Continental's tyre plants. The cultivation areas are mapped by GPS; raw rubber delivery quantities and sales prices achieved are documented in the system for each transaction.

The project partners with the natural rubber suppliers Southland Global and Halcyon Agri Corporation for further raw rubber processing and in the implementation of traceability. (TT)

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