Liviya James

Palm Oil: Report 13

Mighty Earth Rapid Response Report 13

VIew as PDF

Indonesian companies:

HSA Group – PT Kartika Cipta Pratama
Mariya Family – PT Malindo Jaya Diraja
Palma Serasih Group – PT Global Primatama Mandiri
PT Rimbun Sawit Papua
Shanghai Xinjiu Chemical Co. Ltd. – PT Sebaung Sawit Plantation

Malaysian companies:

Samling Group – Samling Reforestation (Bintulu) Sdn Bhd

Shin Yan Group / Sarawak Oil Palms Group – Linau Sinar Sdn Bhd

Double Dynasty Group – Radiant Lagoon Sdn Bhd

March 2019

Prepared with support from Aidenvironment and MapHubs

HSA Group: PT Kartika Cpta Pratama

Concession Information: PT Kartika Cipta Pratama is located in Boven Digoel Regency, Papua. The concession covers a total area of 41,257 hectares. (Long 140°12’31.6″E, Lat 6°20’26.6″S)

 

 

 

 

Deforestation:

Satellite imagery (see below) shows that between January 11, 2019 and January 31, 2019, a total of 77 hectares of forest were cleared in the PT Kartika Cipta Pratama concession. (Imagery Sentinel-2).

Ownership Information: 

In 2012, four UAE holding companies (Prestige Holding Ltd., Malindo Investments Ltd, Crescent Investments Ltd, and Green Resources Ltd) believed to be affiliated with the Yemen-based HSA Group purchased 80% stake of each of these four companies located in the Boven Digoel district of West Papua, Indonesia: PT Megakarya Jaya Raya, PT Kartika Cipta Pratama, PT Graha Kencana Mulia and PT Energi Samudera Kencana. PT Megakarya Jaya Raya and PT Kartika Cipta Pratama are two concessions involved in Tanah Merah project in Boven Digoel Regency. These concessions cover a combined 155,330 hectares. Since January 2014, around 5,000 hectares of forest have been cleared in PT Megakarya Jaya Raya and PT Kartika Cipta Pratama.

Up until June 5, 2018, the four plantation companies had Fouad Hayel Saeed Anam listed as President Commissioner on their notary acts. Fouad Hayel Saeed is Regional Director-Malaysia of the HSA Group and Managing Director of Pacific Inter-Link, the group’s subsidiary. Legal documents also listed Salah Ahmed Hayel Saeed as Commissioner of PT Energi Samudera Kencana & PT Megakarya Jaya Raya and President Director of PT Graha Kencana Mulia & PT Kartika Cipta Pratama. Hayel Saeed is Director of Pacific Inter-Link’s refining division, PT Pacific Palmindo Industri. Recent notary acts confirm that on June 5, 2018, Fouad Hayel Saeed ceased to be President Commissioner of PT Megakarya Jaya Raya and PT Kartika Cipta Pratama, and Salah Ahmed Hayel Saeed is no longer Commissioner of PT Megakarya Jaya Raya and President Director of PT Kartika Cipta Pratama. Nakul Rastogi also disappeared from PT Kartika Cipta Pratama’s notary acts.

However, June 5, 2018 notary acts does not show any change in PT Megakarya Jaya Raya, PT Kartika Cipta Pratama, PT Graha Kencana Mulia and PT Energi Samudera Kencana shareholders. Hence, it is assumed that these companies remain affiliated with the HSA Group. Little is known about the new directors of the two concessions, except that some notable individuals in Indonesian politics and business are involved. Mr. Alwi Abdurrahman Shihab, former Foreign Minister of the Indonesian government, has become President Commissioner of PT Megakarya Jaya Ray. Drs. Tommy Sagiman is now the commissioner of PT KCP. He is ex-Inspector General of the police. Nata Singh Gurdev Singh became director of PT Megakarya Jaya Raya in June 2018. Until April 2018, he worked for Sime Darby. Alwi Abdurrahman Shihab is the Indonesian President’s special envoy to the Middle East and the Organisation of Islamic Cooperation.

The HSA Group is one of the oldest business conglomerate in the Middle East, founded in 1938 by Al Haj Hayel Saeed Anam and his brothers Mohamed, Abdo and Gazern. The Group is today headed by Abdul Gabbar Hayel Saeed, CEO and Chairman. The HSA Group is involved in the palm oil industry through its subsidiaries PT Pacific Palmindo Industri, PT Pacific Medan Industry, PT Pacific Indopalm Industries, Pacific Oil & Fats Industries and Pacific Inter-Link, which are all RSPO members2, and PT Pacific Indomas.

Additional evidence shows continued family links to the PT Tulen Jayamas Timber Industries timber complex, a joint-venture project with Bumimas Raya Sdn Bhd, Pacific Inter-Link Sdn Bhd, Yakin Dijaya Sdn Bhd and Al Salam Bank Bahrain’ announced by Tadmax Resources in 2012.3 The PT Tulen Jayamas Timber Industries timber complex is situated within the PT Kartika Cipta Pratama concession.

Malindo Investments Ltd which holds 80% shares in PT Kartika Cipta Pratama (see above), also holds 40% of the shares in the Malaysian-based parent company of PT Tulen Jayamas Timber Industries – i.e. Tulen Jayamas Sdn Bhd. Mr. Salah Ahmed Hayel Saeed and Mr. Fouad Hayel Saeed Anam are directors of Tulen Jayamas Sdn Bhd, in addition to their positions in the Indonesian subsidiary (PT Tulen Jayamas Timber Industries) as of 28 April 2018.

In the period 21 February 2013 to 24 April 2018, Mr Salah Ahmed Hayel Saeed held 1 share in PT Tulen Jayamas Timber Industries, with the remaining 499 shares held by Tulen Jayamas Sdn Bhd. As of 11 November 2018 Mr Salah Ahmed Hayel Saeed and Mr Fouad Hayel Saeed Anam were no longer directors of Tulen Jayamas Sdn Bhd. However, Malindo Investments Ltd still holds 40% in Tulen Jayamas Sdn Bhd.

Between 24 April 2018 and 13 December 2018, Mr Salah Ahmed Hayel Saeed was no longer a shareholder and director in PT Tulen Jayamas Timber Industries. Also, Mr Fouad Hayel Saeed Anam ceased to be a director in PT Tulen Jayamas Timber Industries.

Supply Chain Information: 

The HSA Group company Pacific Inter-Link (PIL) used to trade with Unilever, IOI, Cargill and Nestlé, however these companies have suspended trade with the company due to concerns over its involvement in deforestation. Pacific Inter-Link claims to be one of the largest palm oil traders to the Middle East, Africa, Russia, Ukraine and Turkey.

Mariya Family: PT Malindo Jaya Diraja

Concession Information: PT Malindo Jaya Diraja is located in Tanah Laut and Balangan Regency, South Kalimantan. The concession covers a total area of 31,043 hectares. (Long 115° 5’25.86″E, Lat 3°47’22.15″S)

 

 

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between December 20, 2018 and January 12, 2019, a total of 9 hectares of forest were cleared in the PT Malindo Jaya Diraja concession. (Imagery © 2019 Planet Labs Inc.)

Ownership Information: 

Mariya Family

PT Malindo Jaya Diraja is 70% owned by Ms Mariya, who is currently the Commissioner, 20% by Marita family members and 10% by Sidharta.

Supply Chain Information: 

No supply chain information available.

Palma Serasih Group: PT Global Primatama Mandiri

Concession Information: PT Global Primatama Mandiri is located in Berau Regency, North Kalimantan. The concession covers a total area of 7,396 hectares. (Long 117° 7’0.09″E, Lat 1°30’37.39″N)

 

 

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between January 4, 2019 and February 7, 2019, a total of 102 hectares of forest were cleared in the PT Global Primatama Mandiri concession. (Imagery © 2019 Planet Labs Inc and Sentinel 2.)

Ownership Information: 

Palma Serasih Group

PT Global Primatama Mandiri is part of the Palma Serasih group, controlled by Palma Serasih.

Supply Chain Information: 

Group: Undetermined – PT Rimbun Sawit Papua

Concession Information: PT Rimbun Sawit Papua is located in Fakfak Regency, West Papua. The concession covers a total area of 19,931 hectares. (Long 133° 2’48.08″E, Lat 2°54’14.94″S)

 

 

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between January 2, 2019 and January 22, 2019, a total of 95 hectares of forest were cleared in the PT Rimbun Sawit Papua concession. (Imagery © 2019 Planet Labs Inc).

Ownership Information: 

PT Rimbun Sawit Papua

PT Rimbun Sawit Papua is owned by Jeff Setiawan Winata (through direct shares), Ir. Daud (through PT Palmandiri Plantation), Junus Sutiono and Watson Dharma. Mr. Junus Sutiono and Mr. Watson Dharma own PT Rimbun Sawit Papua through PT Mulia Abadi Lestari, one of the shareholding companies of PT Duta Rendra Mulya, a Salim owned plantation company.

Supply Chain Information: 

No supply chain information available.

Shanghai Xinjiu Chemical Co. Ltd. PT Sebaung Sawit Plantations

Concession Information: PT Sebaung Sawit Plantation is located in Nunukan Regency, North Kalimantan. The concession covers a total area of 8,886 hectares. (Long 117°21’45.73″E, Lat 3°51’23.24″N)

 

 

 

 

Peat Development:

Satellite imagery (see below) shows that between January 6, 2019 and February 2, 2019, a total of 48 hectares of peat were developed in the PT Sebaung Sawit Plantations concession (Imagery © 2019 Planet Labs Inc.)

Ownership Information: 

Group: Shanghai Xinjiu Chemical Co. Ltd.

PT Sebaung Sawit Plantations is owned by Shanghai Xinjiu Chemical Co. Ltd (90%) and by PT Citra Makmur Sentosa (10%). Shanghai Xinjiu Chemical Co. Ltd is a China-registered company specializing in fatty acids and derivative products.

Mr. Tjia Ke Seng (alias ‘Dachlan’), a Chinese citizen, is the President Director of PT Sebaung Sawit Plantations. He is also the Director of PT Palem Segar Lestari, also located in North Kalimantan.

Supply Chain Information:

No supply chain information available.

Samling Group: LPF/0008 Marudi & Batu Belah

Concession Information: LPF/0008 Marudi & Batu Belah is located in Long Lama and Marudi Regency, Sarawak. The concession covers an area of 31,679 hectares. (Long 114°30’22.64″E, Lat 4° 4’16.98″N)

 

 

 

 

 

Forest Clearing: 

Satellite imagery (see below) shows that between January 7, 2019 and February 16, 2019, a total of 44 hectares of forest were cleared in the LPF/0008 Marudi & Batu Belah concession (Imagery © 2018 Planet Labs Inc.). Under the Malaysia regulations relating to LPFs, a proportion of the licensed area can be planted with oil palm.

Ownership Information: 

Group: Samling group

LPF/0008 Marudi & Batu Belah was issued to Samling Reforestation (Bintulu) Sdn Bhd in Sarawak, Malaysia – a subsidiary of Syarikat Samling Timber Sdn Bhd (SST) and a member of the Samling group. The Samling group – which was founded by Tan Sri Yaw Teck Seng, a Malaysian businessman – is engaged in timber, oil palm, property and automotive business ventures.

Supply Chain Information: 

Shin Yang Group/ Sarawak Oil Palms Group
Linau Sinar Sdn Bhd (Metalon OP Estate, Lot 2, Danum LD)

Concession Information: Metalon OP Estate (Linau Sinar Sbn Bhd, Lot 2, Danum LD) is located in Belaga Regency, Sarawak. The concession covers a total area of 6,951 hectares. (Long 114°45’24.59″E, Lat 2°37’30.09″N)

 

 

 

 

Peat Development: 

Satellite imagery (see below) shows that between December 13, 2018 and January 30, 2019, a total of 10 hectares of peat were developed in the Linau Sinar Sdn Bhd oil palm concession: Metalon OP Estate, Lot 2, Danum LD (Imagery © 2019 Planet Labs Inc.)

Ownership Information: 

Group: Shin Yang / Sarawak Oil Palms

Linau Sinar Sdn Bhd is wholly owned subsidiary of Shin Yang Holding Sdn Bhd (Shin Yang Group), which is involved in the oil palm and timber sectors in Sarawak.

The Group was founded by Tan Sri Datuk Ling Chiong Ho, who holds 25% of the shares of Shin Yang Holding Sdn Bh, with the remaining shares held equally by his three brothers: Ling Chiong Seing, Ling Chiong Sing and Ling Chiong Ping.

Forbes ranked Ling Chiong Ho as the 48th richest person in Malaysia in 2017 stating that ‘today his Shin Yang Group builds ships, exports timber and develops property. But he derives most of his wealth from listed Sarawak Oil Palms.’

Ling Chiong Ho and his three brothers collectively holds 28.51% of the shares of the publicly listed company Sarawak Oil Palms Bhd (Sarawak Oil Palms Group) through their deemed interest in Shin Yang Plantation Sdn Bhd (a wholly owned subsidiary of Shin Yang Corporation Sdn Bhd, which in turn is a wholly owned subsidiary of Shin Yang Holding Sdn Bhd). Ling Chiong Ho also holds an additional 7.02% shares of Sarawak Oil Palms Bhd.

Hence, the Sarawak Oil Palms Group is part of the broader Shin Yang Group and needs to be treated as one group for the purposes of supply chain grievances.

Supply Chain Information: 

Double Dynasty Group: Radiant Lagoon Sdn Bhd

Concession Information: Radiant Lagoon Bhd Sdn is located in Long Lama Regency, Sarawak. Lot 2 and 3 of the concession covers an area of ~4,440 hectares. (Long 114°44’31.81″E, Lat 4° 2’54.55″N)

 

 

 

 

 

Forest Clearing: 

Satellite imagery (see below) shows that between December 31, 2018 and January 20, 2019, a total of 98 hectares of forest were cleared or prepared for clearance in the Radiant Lagoon Sdn Bhd concession (Imagery © 2018 Planet Labs Inc.)

Ownership Information: 

Group: Double Dynasty

Radiant Lagoon Sdn Bhd is a wholly owned subsidiary of Onlyee Plantations Sdn Bhd, which is part of the Double Dynasty group. The group is controlled by Tan Sri Yee Ming Seng and his family.

According to the Bruno Manser Fund, Radiant Lagoon Sdn Bhd is currently involved in a major conflict with indigenous Penan and Berawan communities as a result of the development of this concession.

Supply Chain Information:

Sources for supply chain information: 

Supply chain information included in this Rapid Response report is based on the following publicly disclosed sources and corporate communications. Mighty Earth encourages companies to send updated versions of mill disclosures as soon as they become available and any decision to terminate supplies with a given company listed in those mill disclosures; please send to [email protected].


Mighty Earth Responds to Cargill's Announcement of Revisions to Forests, Soy, and Human Rights Policies

In response to Cargill’s publication of its latest policies regarding soy, forests, and human rights, Mighty Earth CEO Glenn Hurowitz released the following statement:

"Cargill is moving in the right direction by extending their promise to end deforestation by 2020 to also protect other critical ecosystems like South America’s Cerrado, Gran Chaco, and Llanos. This announcement has the potential to be the starting point that leads to a major breakthrough for more sustainable meat, cocoa, and palm oil.

"Our field investigations have shown that despite multiple commitments to protect forests over the last decade, Cargill often lags behind their competitors in the implementation of those commitments. In 2014, Cargill joined other companies in a CEO-level commitment to end deforestation across its major supply chains by 2020. Since then, we and others have published repeated investigations documenting extensive deforestation in its soy supply chain in Bolivia, Brazil, Argentina, and Paraguay.

"Over the last three weeks, I’ve been happy to hold constructive discussions about these issues several times with Cargill CEO David MacLennan; his personal focus gives us hope that Cargill has the potential to turn a corner to address deforestation across its soy, cocoa, and palm oil supply chains. Cargill also needs to dramatically improve its performance to stop destroying native vegetation and allowing fertilizer and manure to pollute America’s waterways.

"To win the trust of customers, communities, and the public, Cargill needs to show right away that it will enforce this policy by ensuring that any supplier that engages in destruction of native ecosystems is not part of their supply chain. It also needs to spread its own decade-long success in working with other companies to eliminate deforestation for soy in the Brazilian Amazon to the other soy-growing ecosystems. This is the world’s most successful private sector environmental initiative, and there’s no reason to confine it to just the Brazilian Amazon while massive deforestation continues in other areas. Cargill must also implement agroforestry practices in their cocoa supply chain and ensure farmers receive decent wages so that they can provide the sustainable chocolate that the world’s consumers demand.

"We are hopeful that soon we will be able to praise Cargill not just for promises, but for action. We will be watching closely."


The Real Price of a Chocolate Bar: West Africa’s Rainforests

YaleEnvironment 360 | February 21, 2019 

Ivory Coast has lost more than 80 percent of its forests in the last 50 years, mainly to cocoa production. The government has a plan to turn over management of former forest to international chocolate manufacturers: Is it a conservation strategy or a land grab?

Read more


Mighty Earth Announces “Rapid Response” System to Monitor Deforestation Linked to Agricultural Supply Chains

Mighty Earth Announces “Rapid Response” System to Monitor Deforestation Linked to Agricultural Supply Chains

View the Rapid Response Monitoring System

Today, global environmental organization Mighty Earth publicly launched its Rapid Response monitoring system aimed at eliminating deforestation linked to the palm oil, soy, rubber, cocoa, paper, and cattle industries.

Mighty Earth, working with partners Aidenvironment and MapHubs, analyzes satellite data from Planet Labs and other sources alongside concession maps to detect deforestation occurring on agricultural plantations; it then identifies supply chain and financial links between the plantations and the world’s largest agricultural buyers. Once the connection is established, Mighty Earth files alerts with the company and, because these companies have adopted commitments to eliminate deforestation from their supply chains, they are obliged to take action.

“The data to identify where and when deforestation is happening has existed for a long time, but companies and governments haven’t faced sufficient pressure to actually use it to halt the clearance,” said Mighty Earth CEO Glenn Hurowitz. “We’re using our political strength to make sure that companies like Cargill and Bunge act immediately when we detect one of their suppliers destroying forests.”

Satellite imagery shows that for the period March 31 to May 31, 2018, a total of 322 hectares of forest were cleared in the PT Kartika Cipta Pratama concession.

The system is already up and running for the palm oil industry, where it monitors for deforestation and peatland destruction on more than 3,000 oil palm concessions in Indonesia and Sarawak, Malaysia, covering more than 51 million acres of land.

“We decided to launch Rapid Response after we continued to find some of the world’s biggest companies violating their own environmental policies by buying from companies engaged in deforestation,” said Deborah Lapidus, Senior Campaigns Director at Mighty Earth. “By publicly filing alerts about the deforestation in their supply chain, we force these companies to act.”

Mighty Earth and its partners initiated a pilot of the system in late 2017, largely focused on major palm oil companies. Today is the first public announcement of the system and its findings thus far.

Data collected since the project began has identified:

  • 56 concessions where new deforestation has occurred
  • More than 50 companies responsible for engaging in deforestation and peatland development; the top ten companies alone are responsible for a combined 74,000 acres of deforestation and peat destruction
  • Significant new clearance by rogue companies that have been expelled from the supply chains of the major palm oil companies, but are still seeking to find ways around these supply chains through other “leakage” markets

The Rapid Response monitoring system has contributed to:

  • More than 50 instances of palm oil traders suspending purchases from non-compliant suppliers
  • 4 supplier moratoria on further deforestation
  • Universal grievance tracking from the major palm oil companies

As part of today’s announcement, Mighty Earth also released its first assessment of traders’ performance resolving Rapid Response grievances. Of the 16 palm oil traders assessed, the companies that performed the worst were Archer Daniels Midland (ADM), First Resources, IOI, and Cargill. Golden Agri-Resources, Apical (part of the RGE group), KLK, and Louis Dreyfus performed the best.

Mighty Earth is now starting to work with investors and downstream consumer brands on the rapid response findings. These companies, and the public, can view reports containing cases of emerging deforestation and regular updates on grievances lodged with the traders.

Philanthropic support from the David and Lucile Packard Foundation, the Norwegian Development Agency, National Wildlife Federation, the Arcus Foundation, the JMG Foundation, and others has provided millions of dollars to allow the project to expand to cover other key commodities and regions.

In addition to its work on palm oil, Mighty Earth campaigns have played a leading role in persuading eight of the world’s leading tire companies to adopt “No Deforestation, No Exploitation” policies for rubber; getting 34 chocolate and cocoa companies to pledge to eliminate deforestation in their West African supply chains; and spurring pledges from soy giants like Louis Dreyfus and COFCO to protect native vegetation.

“It’s great that so many companies are announcing commitments to end deforestation, but we have to make sure these commitments are actually enforced,” Hurowitz said.

Those interested in learning more about how the Rapid Response system works, Mighty Earth’s long-term plans for the project, and more are invited to attend a live webinar on March 14.


Shareholders Push Tyson on Water Pollution

Tyson’s track record as one of the nation’s top water polluters is once again coming under fire from shareholders at the company’s annual meeting this year. Concerned about the negative impacts on workers, farmers, and communities, as well as the risks to Tyson’s ability to do business in the face of public scrutiny, shareholders are pushing the company to adopt and implement a water stewardship policy to mitigate the chronic water pollution being caused by its supply chain (full details of the concerns can be found here).

This is the fourth consecutive year Tyson Foods is facing a shareholder proposal concerned about the company’s water pollution, with last year’s proposal receiving support from 63 percent of non-family shareowners. The latest shareholder memo highlights a litany of fines the company has faced for violating clean water regulations, growing public backlash from communities where Tyson is seeking to do business, the public health consequences for workers and community members exposed to water contamination from Tyson’s supply chain, and the risks to Tyson’s brand and customer trust resulting from controversies concerning water pollution.

Last year, Tyson announced a commitment to improve farming practices on two million acres of grains in the U.S. by 2020 and recently released a partnership with the Environmental Defense Fund to begin piloting this commitment on 500,000 acres. While an ambitious and important goal, Tyson to date still has not released specific details on how this on-paper commitment will translate into real improvements on the ground. Meanwhile, the company appears to be operating business as usual while water pollution continues to leach from its supply chain. In a recent report from the Environmental Integrity Project, Tyson was found to have the most processing plants operating in chronic violations of clean water regulations, with 26 plants found in violation of their monthly water pollution limits between January 2016 and June 2018.

Investor and public concern about the uncontrolled environmental devastation caused by meat is on the rise. Last week, over 80 global investors representing more than $6.5 trillion sent letters to six fast food companies that buy large quantities of meat, asking them to set clear environmental requirements for their meat suppliers to reduce water and greenhouse gas pollution. Walmart, which is Tyson’s single largest customer, has set ambitious greenhouse gas reduction goals for its supply chain through Project Gigaton, which call for supplier compliance.

In addition to water pollution, the farming practices throughout the Tyson supply chain are a major contributor to climate emissions. Given that the limited window that climate scientists have assessed to curb emissions and avoid the most catastrophic impacts of climate change, addressing the impacts of meat production are a vital part of our response to this crisis. Producing meat has a larger environmental impact than nearly any other human activity, with the top meat and dairy producers – including Tyson – ranked alongside the largest oil companies as top corporate contributors to greenhouse gas emissions.


Palm Oil: Report 12

Mighty Earth Rapid Response Report 12

VIew as PDF

Indonesian Companies:

PT Kapuasindo Palm Industri, PT Kartika Cipta Pratama, PT Palem Segar Lestari, PT Sawit Berkat Sejahtera, PT Internusa Jaya Sejahtera, PT Marita Makmur Jaya, PT Persada Era Agro Kencana, PT Sebaung Sawit Plantations, PT Dwiwira Lestari Jaya, PT Krida Dharma Kahuripan, PT Sentosa Suksesutama

Malaysian company: 

Jaya Tiasa / Rimbunan Hijau Group

January 2019: 

Prepared with support from Aidenvironment and MapHubs

Evershine Asset Corporation and Everbright Resources Corporation: PT Kapuasindo Palm Industry

 

Concession Information: PT Kapuasindo Palm Industry is located in Kapuas Hulu Regency, West Kalimantan. The concession covers an area of 18,443 hectares. (Long: 111°49’16.50″E, Lat: 0°46’42.77″N)

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between November 28, 2018 and January 10, 2019, a total of 44 hectares of peat forest were cleared and an additional 65 hectares of peat was developed in the PT Kapuasindo Palm Industry concession. (Imagery © 2019 Planet & Sentinel-2).

Ownership Information: 

Group: Evershine Asset Corporation and Everbright Resources Corporation

PT Kapuasindo Palm Industry is owned by Evershine Asset Corporation (90%) and Everbright Resources Corporation (10%), through PT Kencana Agung Lestari and PT Binanusa Mukti Sentosa. Everbright Resources Corporation also ultimately owns PT Buana Tunas Sejahtera and PT Sentrakarya Manunggal. The companies all share the same President Director (Johanes Ibrahim Tjendana), Director (Juliana Lukmin) and President Commissioner Ricky Surjana).

Supply Chain Information: 


 

HSA Group: PT Kartika Cipta Pratama

Concession Information: PT Kartika Cipta Pratama is located in Boven Digoel Regency, West Kalimantan. The concession covers an area of 41,257 hectares2. (Long 140°12’31.6″E, Lat 6°20’26.6″S)

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between December 6, 2018 and January 11, 2019, a total of 286 hectares of forest were cleared in the PT Kartika Cipta Pratama concession. (Imagery © 2019 Planet Labs Inc & Sentinel-2).

Ownership Information:

Group: HSA Group

In 2012, four UAE holding companies (Prestige Holding Ltd., Malindo Investments Ltd, Crescent Investments Ltd, and Green Resources Ltd) believto be ed affiliated with the Yemen-based HSA Group purchased 80% stake of each of these four companies located in the Boven Digoel district of West Papua, Indonesia: PT Megakarya Jaya Raya, PT Kartika Cipta Pratama, PT Graha Kencana Mulia and PT Energi Samudera Kencana. PT Megakarya Jaya Raya and PT Kartika Cipta Pratama are two concessions involved in Tanah Merah project in Boven Digoel Regency. These concessions cover a combined 155,330 hectares. Since January 2014, around 5,000 hectares of forest have been cleared in PT Megakarya Jaya Raya and PT Kartika Cipta Pratama.

Up until June 5, 2018, the four plantation companies had Fouad Hayel Saeed Anam listed as President Commissioner on their notary acts. Fouad Hayel Saeed is Regional Director-Malaysia of the HSA Group and Managing Director of Pacific Inter-Link, the group’s subsidiairy. Legal documents also listed Salah Ahmed Hayel Saeed as Commissioner of PT Energi Samudera Kencana & PT Megakarya Jaya Raya and President Director of PT Graha Kencana Mulia & PT Kartika Cipta Pratama. Hayel Saeed is Director of Pacific Inter-Link’s refining division, PT Pacific Palmindo Industri. Recent notary acts confirm that on June 5, 2018, Fouad Hayel Saeed ceased to be President Commissioner of PT Megakarya Jaya Raya and PT Kartika Cipta Pratama, and Salah Ahmed Hayel Saeed is no longer Commissioner of PT Megakarya Jaya Raya and President Director of PT Kartika Cipta Pratama. Nakul Rastogi also disappeared from PT Kartika Cipta Pratama’s notary acts.

However, June 5, 2018 notary acts does not show any change in PT Megakarya Jaya Raya, PT Kartika Cipta Pratama, PT Graha Kencana Mulia and PT Energi Samudera Kencana shareholders. Hence, it is assumed that these companies remain affiliated with the HSA Group. Little is known about the new directors of the two concessions, except that some notable individuals in Indonesian politics and business are involved. Mr. Alwi Abdurrahman Shihab, former Foreign Minister of the Indonesian government, has become President Commissioner of PT Megakarya Jaya Ray. Drs. Tommy Sagiman is now the commissioner of PT KCP. He is ex-Inspector General of the police. Nata Singh Gurdev Singh became director of PT Megakarya Jaya Raya in June 2018. Until April 2018, he worked for Sime Darby. Alwi Abdurrahman Shihab is the Indonesian President’s special envoy to the Middle East and the Organisation of Islamic Cooperation.

The HSA Group is one of the oldest business conglomerate in the Middle East, founded in 1938 by Al Haj Hayel Saeed Anam and his brothers Mohamed, Abdo and Gazern. The Group is today headed by Abdul Gabbar Hayel Saeed, CEO and Chairman. The HSA Group is involved in the palm oil industry through its subsidiaries PT Pacific Palmindo Industri, PT Pacific Medan Industry, PT Pacific Indopalm Industries, Pacific Oil & Fats Industries and Pacific Inter-Link, which are all RSPO members3, and PT Pacific Indomas.

Additional evidence shows continued family links to the PT Tulen Jayamas Timber Industries timber complex, a joint-venture project with Bumimas Raya Sdn Bhd, Pacific Inter-Link Sdn Bhd, Yakin Dijaya Sdn Bhd and Al Salam Bank Bahrain’ announced by Tadmax Resources in 2012.4 The PT Tulen Jayamas Timber Industries timber complex is situated within the PT Kartika Cipta Pratama concession.

Malindo Investments Ltd which holds 80% shares in PT Kartika Cipta Pratama (see above), also holds 40% of the shares in the Malaysian-based parent company of PT Tulen Jayamas Timber Industries – i.e. Tulen Jayamas Sdn Bhd. Mr. Salah Ahmed Hayel Saeed and Mr. Fouad Hayel Saeed Anam were directors of Tulen Jayamas Sdn Bhd, in addition to their positions in the Indonesian subsidiary (PT Tulen Jayamas Timber Industries) as of 28 April 2018.

In the period 21 February 2013 to 24 April 2018, Mr Salah Ahmed Hayel Saeed held 1 share in PT Tulen Jayamas Timber Industries, with the remaining 499 shares held by Tulen Jayamas Sdn Bhd. As of 11 November 2018 Mr Salah Ahmed Hayel Saeed and Mr Fouad Hayel Saeed Anam were no longer directors of Tulen Jayamas Sdn Bhd. However, Malindo Investments Ltd still holds 40% in Tulen Jayamas Sdn Bhd.

Between 24 April 2018 2018 and 13 December 2018, Mr Salah Ahmed Hayel Saeed was no longer a shareholder and director in PT Tulen Jayamas Timber Industries. Also, Mr Fouad Hayel Saeed Anam ceased to be a director in PT Tulen Jayamas Timber Industries.

Supply Chain Information: 

The HSA Group company Pacific Inter-Link (PIL) used to trade with IOI and Nestlé, however both companies have suspended trade with the company due to concerns over its involvement in deforestation. Pacific Inter-Link claims to be one of the largest palm oil traders to the Middle East, Africa, Russia, Ukraine and Turkey.


 

Henan Jiujiu Chemical Co. Ltd.: PT Palem Segar Lestari

Concession Information: PT Palem Segar Lestari is located in Nunukan Regency, North Kalimantan. The concession covers a total area of 14,433 hectares. (Long 117°32’19.68″E, Lat 3°50’2.05″N

 

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between December 18, 2018 and January 10, 2019, a total of 44 hectares of peat was developed in the PT Palem Segar Lestari concession – Area A and B. (Imagery © 2019 Planet).

Ownership Information: 

Group: Henan Jiujiu Chemical Co. Ltd.

PT Palem Segar Lestari is 90% owned by Henan Jiujiu Chemical Co. Ltd and 10% owned by PT Citra Makmur Sentosa. Henan Jiujiu Chemical Co. Ltd is a China-registered company specializing in fatty acids and derivative products.

Mr. Tjia Ke Seng (alias ‘Dachlan’), a Chinese citizen, is the President Director of PT Palem Segar Lestari7. He is also the Director of PT Sebaung Sawit Plantation, also located in North Kalimantan.

Supply Chain Information: 

No supply chain information available.


 

Unknown group: PT Sawit Berkat Sejahtera

Concession Information: PT Sawit Berkat Sejahtera is located in Bulungan Regency, North Kalimantan. The concession covers an area of 7,613 hectares8. (Long 117°34’6.17″E, Lat 2°33’32.50″N)

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between December 17, 2018 and January 7, 2019, a total of 21 hectares of forest were cleared in the PT Sawit Berkat Sejahtera concession. (Imagery © 2019 Planet Labs Inc).

Ownership Information: 

Group: Unknown

PT Sawit Berkat Sejahtera is owned (99%) by Mr. Ir. Daud through PT Cahaya Agro Pratama. He is the Director of PT Sawit Berkat Sejahtera and PT Cahaya Agro Plantation, and also served as the President Director of PT Rimbun Sawit Papua.

Supply Chain Information: 

No supply chain information available.


 

Indonusa Agromulia group: PT Internusa Jaya Sejahtera

Concession Information: PT Internusa Jaya Sejahtera is located in Papua province. The concession covers an area of 25,395 hectares10. (Long 140°48’22.6″E, Lat 7°19’30.0″S)

 

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between December 4, 2018 and January 6, 2019, a total of 109 hectares of forest were cleared in Area A of the PT Internusa Jaya Sejahtera concession. Also, between December 11, 2018 and January 6, 2019, a total of 108 hectares of forest were cleared in Area B of the PT Internusa Jaya Sejahtera concession. (Imagery © 2019 Planet & Landsat 8 Imagery 2019).

Ownership Information: 

Group: Indonusa Agromulia Group/Indonusa Group

PT Internusa Jaya Sejahtera is part of Indonusa Agromulia Group, commonly known as Indonusa group. PT Internusa Jaya Sejahtera is owned by Rosna Tjuatja (99.87%), who sits as the Commissioner on the Indonusa Agromulia Group and also serves as President commissioner at PT Profindo International Securities.

Supply Chain Information:


 

Mariya family: PT Marita Makmur Jaya

Concession Information: PT Marita Makmur Jaya is located in Bengkalis Regency, Riau. The concession covers an area of 6,612 hectares. (Long 101°29’5.18″E, Lat 2° 2’7.99″N)

 

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between December 24, 2018 and January 12, 2019, a total of 52 hectares of forest were cleared in the PT Marita Makmur Jaya concession. (Imagery © 2019 Planet Labs Inc.)

Ownership Information: 

Family: Mariya

PT Marita Makmur Jaya is 70% owned by Ms Mariya, who is the currently the Commissioner, 20% by Marita family members and 10% by Sidharta.

Supply Chain Information:

No supply chain information available.


 

Mulia Sawit group: PT Persada Era Agro Kencana

Concession Information: PT Persada Era Agro Kencana is located in Katingan district, Central Kalimantan. The concession covers an area of 12,933 hectares14. (Long 113° 17′ 02′′ E, Lat 2° 34′ 09′′ S).

 

 

 

 

Deforestation:

Satellite imagery (see below) shows that between December 5, 2018 and January 7, 2019, a total of 189 hectares of peat forest were developed in the PT Persada Era Agro Kencana concession. (Imagery © 2019 Planet Labs Inc).

Ownership Information: 

Group: Mulia Sawit group

PT Persada Era Agro Kencana is a subsidiary of Mulia Sawit group. Mulia Sawit group is owned by Kurnia Lukman Goutama, Tjio Andre Yenatha, Kevin Wusman and Sanjaya Lukman. Tjio Andra Yenatha, known as Andre, also serves as a Director of PT Bangun Jaya Alam Permai of the Best Plantation Group.

Supply Chain Information: 


 

Pundi Group: PT Pinang Witmas Abadi

Concession Information: PT Pinang Witmas Abadi is located in Kubu Raya Regency, West Kalimantan. The concession covers an area of 10,680 hectares16. (Long 109°38’17.67″E, Lat 0° 6’38.97″S).

 

 

Deforestation:

Satellite imagery (see below) shows that between December 9, 2018 and January 10, 2019 (Area A and B) a total of 66 hectares of peat forest were developed in the PT Pinang Witmas Abadi concession. (Imagery © 2019 Planet Labs Inc.)

Ownership Information: 

Group: Pundi group

PT Pinang Witmas Abadi is owned by PT Pundi Bhakti Khatulistiwa through PT Pundi Lahan Khatulistiwa, which is located in Kubu Raya, West Kalimantan. Currently, the Director of Pundi Bhakti Khatulistiwa is The Kie Jok, who also serves as the President Director of PT Pundi Lahan Khatulistiwa. Mr. Suryadi Polem is the main shareholder in both PT Pundi Lahan Khatulistiwa and PT Pundi Bhakti Khatulistiwa.17 Ownership of PT Pundi Bhakti Khatulistiwa is shown below.

Group: Pundi group

PT Pinang Witmas Abadi is owned by PT Pundi Bhakti Khatulistiwa through PT Pundi Lahan Khatulistiwa, which is located in Kubu Raya, West Kalimantan. Currently, the Director of Pundi Bhakti Khatulistiwa is The Kie Jok, who also serves as the President Director of PT Pundi Lahan Khatulistiwa. Mr. Suryadi Polem is the main shareholder in both PT Pundi Lahan Khatulistiwa and PT Pundi Bhakti Khatulistiwa.17 Ownership of PT Pundi Bhakti Khatulistiwa is shown below.

Supply Chain Information:


 

Shanghai Xinjiu Chemical Co. Ltd.: PT Sebaung Sawit Plantations

Concession Information:  PT Sebaung Sawit Plantations is located in Nunukan Regency, North Kalimantan. The concession covers an area of 15,304 hectares. (Long 117°21’45.73″E, 3°51’23.24″N)

 

 

 

 

 

Peat Development: 

Satellite imagery (see below) shows that between October 24, 2018 and January 6, 2019, a total of 48 hectares of peat were developed in PT Sebaung Sawit Plantations concession (Imagery © 2019 Planet Labs Inc.)

Ownership Information: 

Group: Shanghai Xinjiu Chemical Co. Ltd.

PT Sebaung Sawit Plantations is owned by Shanghai Xinjiu Chemical Co. Ltd (90%) and by PT Citra Makmur Sentosa (10%). Shanghai Xinjiu Chemical Co. Ltd is a China-registered company specializing in fatty acids and derivative products.

Mr. Tjia Ke Seng (alias ‘Dachlan’), a Chinese citizen, is the President Director of PT Sebaung Sawit Plantations19. He is also the Director of PT Palem Segar Lestari, also located in North Kalimantan.

Supply Chain Information: 

No supply chain information available.


 

Triputra Agro Persada group: PT Dwiwira Lestari Jaya

Concession Information: PT Dwiwira Lestari Jaya is located in Berau Regency, East Kalimantan. The concession covers an area of 12,665 hectares. (Long 117°59’35.86″E, Lat 1°23’13.30″N

 

 

 

Deforestation:

Satellite imagery (see below) shows that between November 23, 2018 and January 12, 2019, a total of 56 hectares of forest were cleared in the PT Dwiwira Lestari Jaya concession. (Imagery © 2019 Planet Labs Inc).

Ownership Information: 

Group: Triputra Agro Persada Group (Triputra Group)

PT Dwiwira Lestari Jaya is part of the Triputra Agro Persada Group (TAP), which is in turn part of Triputra Group.21 The Triputra Group was founded by Theodore Permadi Rachma and Benny Subantio. Mr. Arif Rachmat is the CEO of TAP and is a Director of Triputra group.

Supply Chain Information:


 

Unknown group: PT Krida Dharma Kahuripan

Concession Information: PT Krida Dharma Kahuripan is located in Katingan Regency, Central Kalimantan. The concession covers an area of 13,382 hectares23. (Long: 113°21’2.52″E, Lat: 1°35’59.06″S)

 

 

 

 

Deforestation:

Satellite imagery (see below) shows that between November 20 and December, 2018, a total of 106 hectares of forest were cleared in the PT Krida Dharma Kahuripan concession. (Imagery © 2018 Planet Labs Inc.)

Ownership Information: 

Group: No information group

PT Krida Dharma Kahuripan has previously been reported to be part of the Makin Group. The company claims that the location permit (ILOK) of PT Krida Dharma Kahuripan was returned to the local government (Katingan Regency) in July 2017 and the concession land is categorized by the government as production forest area and therefore cannot be converted to plantations.

Supply Chain Information: 

No supply chain information available.


 

Wings Group Indonesia: PT Sentosa Suksesutama

Concession Information: PT Sentosa Suksesutama is located in Bulungan Regency, North Kalimantan. The concession covers an area of 22,612 hectares24. (Long 116°44’57.27″E, Lat 2°38’47.65″N

 

 

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between November 19, 2018 and January 12, 2019, a total of 6 hectares of forest were cleared in the PT Sentosa Sukses Utama concession. (Imagery © 2019 Planet Labs Inc.)

Ownership Information:

Group: Wings Group Indonesia

PT Sentosa Suksesutama is part of Wings Group Indonesia (also known as Katuari Family Group) through PT Gawi Makmur Kalimantan, PT Wahana Wings Surya and PT Wings Indonesia Consumer Products.25

The Wings Group was founded by Johannes Ferdinand Katuari.26 His son, Eddy William Katuari is the President Commissioner of PT Gawi Makmur Kalimantan, President Director of PT Wahana Wings Surya, PT Wings Indonesia Consumer Products and PT Wings Group Indonesia.

Supply Chain Information: 


 

Jaya Tiasa Holding Berhad (Rimbunan Hijau Group) LPF/0024

Concession Information:  LPF/0024 is located in Belaga Regency, Sarawak. The concession covers an area of 110,220 hectares27. (Long 114°29’30.22″E, 1°56’58.34″N)

 

 

 

Peat Development:

Satellite imagery (see below) shows that between November 3, 2018 to January 11, 2019 a total of 85 hectares of forest were cleared in LPF 0024 concession (Imagery © 2019 Planet Labs Inc.)

Ownership Information:

Group: Jaya Tiasa Holdings Bhd, part of the Rimbunan Hijau Group

LPF/0024 was issued to Jaya Tiasa Holdings Berhad, part of the Rimbunan Hijau Group which was founded by the Tiong family. Jaya Tiasa Holdings Berhad is listed on Main Board of Bursa Malaysia Securities Berhad and is involved in palm oil and timber production in Malaysia.28

Tan Sri Abdul Rahman bin Abdul Hamid is an Independent Non-Executive Chairman in Jaya Tiasa Holdings Bhd.29 He previously served as Chief of the Malaysian Army and Defense Force from 1992 to 1994, and also Independent Non-Executive Chairman in Halex (M) Sdn Bhd from January 2015 until December 2017.

Supply Chain Information:


 

Sources:

Planet data from Planet Team (2019). Planet Application Program Interface: In Space for Life on Earth. San Francisco, CA. https://api.planet.com. Supply chain information included in this Rapid Response report is based on the following publicly disclosed sources. Mighty Earth encourages companies to send updated versions of mill disclosures as soon as they become available and any decision to terminate supplies with a given company listed in those mill disclosures; please send to [email protected].


Monitoring Rapid Response Findings

Monitoring Findings

We’ve found more than 50 companies responsible for engaging in deforestation and peatland destruction in Indonesia and Sarawak, Malaysia; the top ten companies alone are responsible for destroying a combined 74,000 acres of forests and peatlands.


Rogue actors are increasingly isolated from global supply chains; selling to “leakage” markets

Rapid response, in conjunction with global campaigns, has contributed to the suspension of the majority of the top 10 deforesters by the major palm oil buyers, leaving them isolated from global palm oil markets. Of the top 10 companies engaged in deforestation, as of February 5, 2019, only a few are still unresolved grievances linked to the supply chains of the 16 palm oil traders engaged by Rapid Response.   In response to campaigns and engagement by palm oil traders, Gama Group, ranked 5th, agreed to stop clearing and announced its own “No Deforestation, No Peat, and no Exploitation” (NDPE) policy (see the Success Stories page for more information). For Tsani Hutani Group, ranked 6th, ADM has logged a grievance but has not secured a resolution to the case, while Cargill still has not logged a grievance in its public grievance tracker.  For Indonusa, ranked 9th, ADM failed to report the grievance in its public log. In all other cases, the top 10 deforesters are now presumed to be selling to other buyers that lack meaningful sustainability policies.

Although the majority of global palm oil traders have adopted NDPE sourcing policies, about one-quarter of the industry has not, representing a “leakage market”.  This leakage market remains a major barrier to completely halting unsustainable practices in the industry. In fact, the top two deforesters detected by Rapid Response monitoring are now part of this irresponsible market.

The Top 3 Deforesters:

#1 – PT Metro Lestari Jaya (Concession: PT Sawit Mandiri Lestari)

PT Sawit Mandiri Lestari is located in the Lamandau Regency of Indonesia’s Central Kalimantan Province. Since March 2016, the company has deforested more than 7,000 hectares, over one-third of the total concession area.

While PT Sawit Mandiri Lestari was still a subsidiary of major palm oil producer Sawit Sumbermas Sarana (SSMS) in 2015, both were subject to a complaint submitted to the Roundtable on Sustainable Palm Oil (RSPO) over deforestation in the concession. However, the complaint was closed after SSMS sold PT Sawit Mandiri Lestari to PT Metro Lestari Jaya in December of that year because the new owner was not a member of the RSPO. SSMS thereby sought to evade responsibility for the clearing taking place; however, reports by Chain Reaction Research highlight that there are many remaining links between SSMS and Metro Lestari Jaya.  

Sample satellite imagery. For full images, see Rapid Response Report 3

We found an area of 5,600 hectares at PT Sawit Mandiri Lestari cleared beginning in March 2016 and continuing through December 2017.

#2 – BLD Plantation Group

The KTS Group company, BLD Plantation Bhd is the sixth largest palm oil refiner in Indonesia and Malaysia without a NDPE sourcing policy. It is part of the timber giant KTS.  Mighty Earth and its partners have been exposing BLD’s peatland destruction and encroachment onto indigenous lands since 2015, and BLD was expelled from the supply chains of Bunge, Wilmar, Apical, and others.  But BLD has refused to stop its destruction. Between March to December 2018 alone, BLD destroyed nearly 4,000 hectares of peatland.

Sample satellite imagery. For full images, see Rapid Response Report 11.

A total of 1,283 hectares of peat forest were developed in Area A of the BLD Plantation concession.

#3 – Hayel Saeed Anam (HSA) Group/Pacific Inter-Link (Concessions: PT Kartika Cipta Pratama, PT Megakarya Jaya Raya)

Pacific Inter-Link is part  of the HSA Group, which claims to be one of the largest palm oil traders to the Middle East, Africa, Russia, Ukraine and Turkey. IOI, Unilever, Nestle, and Cargill have suspended trade with the company over deforestation concerns. HSA/PIL has recently adopted its own NDPE policy but has yet to come clean about its involvement in deforestation in concessions linked to the group in Papua. For more information, see Rapid Response reports 5, 9, 10, 11, and 12.

Sample satellite imagery. For full images, see Rapid Response Report 3.

PT Kartika Cipta Pratama is located in Papua province.

Key cases still linked to supply chains (as of February 5, 2019)

UPDATE as of May 21st:  Based on palm oil trader’s grievance logsmost traders have now suspended the Pundi and Malia Sawit groups due to NDPE violations highlighted in Rapid Response reports. However, ADM and Fuji Oil failed to file grievances on these cases.

Also, Incasi Raya has instituted a moratorium on further land clearing.  As a next step, Mighty Earth is calling on traders to require Incasi Raya to adopt and implement a Group-wide No Deforestation, No Peat, and No Exploitation (NDPE) policy, commit to the High Carbon Stock Approach methodology, and develop a recovery plan to remedy its past deforestation and peatland clearance.

Pundi Group

The Pundi Group is a repeat offender, having been highlighted in Rapid Response reports 10, 11, and 12, and is the case with the most forest and peatland at imminent risk.  The company cleared over 300 hectares of peat forests between mid-July 2018 to mid-January 2019 on its PT Pinang Witmas Abadi concession (10,680 hectares), located in Kubu Raya Regency, West Kalimantan.   Furthermore, the Rapid Response system has identified nearly 1,500 hectares of forest that has been prepared for clearing in the concession.

According to the NGO ForestHints, the PT Pinang Witmas Abadi concession overlaps with Bornean orangutan habitat.  In September 2018, the Indonesian Environment and Forestry Ministry ordered the the concession  to be sealed off to prevent any further peatland destruction. The company continued clearing in the concession, in apparent violation of this order by the Ministry.  Until February 2018, this concession was owned by Triputra Agro Persada, another notorious deforester.

Apical cancelled its pending new purchase of oil from Pundi as a result of the Rapid Response reports.  GAR filed a grievance on the case and requested Pundi to implement an immediate moratorium on peatland development.  

Sample satellite imagery. For full images, see Rapid Response Report 12.

In Area A and B a total of 66 hectares of peat forest were developed by Pundi Group.

Mulia Sawit Group

The Mulia Sawit Group is a repeat peatland destroyer, with cases highlighted in Rapid Response reports 9, 10, 11, and 12.  The Rapid Response system has detected over 1,000 hectares of peatland destruction from late August 2018 to early January 2019 on the group’s PT Persada Era Agro Kencana concession (12,933 hectares),  located in Katingan district, Central Kalimantan. One of the directors of Mulia Sawit is also a director of the BEST Plantation Group, a notorious peatland destroyer and one of the leading refiners in Indonesia that is trading palm oil from deforestation onto the “leakage” market.  

In response to Rapid Response related grievances, Apical (part of the RGE Group) and Bunge have suspended trade with Mulia Sawit. Apical reports that it is still engaging with the company. According to their published grievance logs, ADM and Fuji Oil have not filed a grievance on this case.  Musim Mas has confirmed that it has a long-term contract with Mulia Sawit, but has put the company on a so-called “controlled purchase”, which means that it is reducing its overall purchasing volumes from the group, while it engages with the company to try to bring it into compliance with its NDPE policies.  Musim Mas’ grievance log states that Mulia Sawit had implemented a moratorium on further land development in July 2018 and confirmed the moratorium was established in September 2018. However, the Rapid Response system identified that the company continued to develop peatlands for several months after this stated moratorium.  Given this violation, Mighty Earth is calling upon Musim Mas to immediately fully suspend all trade with the Mulia Sawit Group.

Sample satellite imagery. For full images, see Rapid Response Report 11.

Satellite imagery shows a total of 200 hectares of peat developed in the PT Persada Era Agro Kencana concession.

Incasi Raya Group

The Incasi Raya Group is the fourth largest palm oil refinery that lacks a NDPE policy in Indonesia and Malaysia, making it a major “leakage” market actor.  The group also operates the PT Sumatera Jaya Agro Lestari concession (37,090 hectares) located in the Sanggau district of West Kalimantan. Rapid Response detected 100 hectares of combined deforestation and peatland destruction on this concession between mid-August and mid-October 2018 (Rapid Response Report 10).  

Several traders are linked to Incasi Raya.  ADM, AAK, Astra Agro Lestari, Bunge, Musim Mas, and Sime Darby all report to be engaging with Incasi Raya, but have not provided any update on progress nor have they taken action to remove the company from their supply chains. Fuji, IOI, Olam and Wilmar have not filed the case in their grievance reports.

Sample satellite imagery. For full images, see Rapid Response Report 10.

Satellite shows 27 hectares of forest cleared and 12 hectares of peat developed in the PT Sumatera Jaya Agro Lestari concession.

Rimbunan Hijau Group

Rimbunan Hijau (RH Group) is controlled by the Sarawak timber tycoon, Datuk Tiong Hiew King, and his extended family.  The group is now the largest palm oil operator in Sarawak, Malaysia, with palm concessions covering an estimated 220,000 hectares.  RH also operates logging concessions and palm oil plantations in Papua New Guinea and has other logging operations around the world.  The company has been featured in many NGO reports over the years for its forest and peatland destruction and violations of indigenous rights.  Rapid Response Report 12 highlighted 85 hectares of deforestation between November 2018 to early January 2019 in one of RH’s concessions. The concession, held by Jaya Tiasa Holdings Bhd, covers an area of 110,220 hectares and is located in Belaga Regency, Sarawak.

According to recent published supply chain lists, several traders still source palm oil from the RH Group, including ADM, Bunge, Cargill, Fuji Oil, Louis Dreyfus, Olam and Wilmar.  

Sample satellite imagery. For full images, see Rapid Response Report 12.

85 hectares of forest cleared in LPF 0024 concession by Rimbunan Hijau Group.

PARTNERS


Germany Calls for EU Regulations to Address Deforestation and Child Labour in Cocoa Industry

In groundbreaking news for the chocolate industry, Germany has called for European-wide “binding regulations” to address deforestation and child labour in the cocoa industry. With this new action, Germany joins Belgium and France, which have issued similar appeals in recent months, in the campaign for truly sustainable chocolate.

Agriculture Minister Julia Klöckner and Development Minister Gerd Mueller launched Germany’s new national 10-point Action Plan for cocoa on 23 January 2019, setting out how their government will address rampant deforestation and child labour in the cocoa sector.  A petition asking Ms. Klöckner to stop child labor and deforestation in the cocoa industry was unveiled in December 2018. With more than 108,000 signatures, the petition was the latest of numerous recent grassroots initiatives pressing for change in the chocolate industry, in Germany and beyond.

EU regulation of the cocoa sector could be the key to protecting human rights, since voluntary initiatives have thus far failed to reform the industry. An EU cocoa law could also become part of an ambitious EU action plan to end large-scale deforestation for other imported commodities such as coffee, rubber, palm oil, and soy.

Germany’s new call echoes statements from the French and Belgian governments at the end of 2018, where both governments requested “rapid adoption” of an EU due diligence regulation to tackle child labour and deforestation in the cocoa sector. Chocolate companies expressed similar views, concluding at the April 2018 World Cocoa Conference in Berlin that their voluntary commitments to end child labour and deforestation had “not led to sufficient impact”, and that there was a need to look at “potential regulatory measures by governments.”  At a European Commission event in Brussels on 24 January 2019, Mondelez (the world’s second-largest chocolate company) expressed their “strong support” for “harmonized EU legislation to create a level playing field” in the cocoa sector. Other chocolate industry representatives also have asked for EU regulation in cocoa, so that more responsible corporations aren’t undercut by unscrupulous companies.

Germany’s new 10-point Action Plan comes just as the European Commission launches its open consultation (to close 25 February 2019) on “Stepping up EU Action on deforestation and forest degradation”, which sets out how the EU will address deforestation resulting from its consumption of cocoa, amongst other things. The EU is the world’s largest importer, manufacturer, and consumer of cocoa, responsible for over 60 percent of global cocoa bean imports.

Besides endorsing  EU binding regulations in the new plan, Germany expressed support for joint action; increased imports of certified cocoa to Germany; standards-setting for sustainable cocoa; awareness-raising for German consumers of cocoa; living income for cocoa farmers; political dialogue with producer countries; strengthening of farmer groups; agroforestry; a stronger role for women in cocoa; forest conservation in general and the Cocoa and Forest Initiative in particular.

Julia Christian, forests campaigner at the NGO Fern, explained: “Germany is the EU’s largest chocolate consumer. Its pro-regulation stance puts even more pressure on the European Commission to end the EU’s complicity in the human suffering and environmental destruction caused by the cocoa industry.” She added, “Germany, France and Belgium have now joined major chocolate companies in calling for legally-binding measures, after almost two decades of failed voluntary action in the cocoa sector.

“Now that Germany, France, and Belgium have stepped up to the plate, what are the Dutch waiting for?” said Etelle Higonnet, Senior Campaign Director for Mighty Earth. “The Netherlands is the top global cocoa importer. We expect them to do the right thing, demand an EU law to stop widespread environmental destruction, and save the 2.1 million children slaving away in the cocoa sector today.”

 

Photo by GISCO originally posted on World Cocoa Foundation.org


Iowa activists urge presidential candidates to reject food-based biofuels

Iowa activists urge presidential candidates to reject food-based biofuels

Today, environmental advocacy organization Mighty Earth launched a new effort to urge the 2020 presidential candidates and political leaders to reject food-based biofuels as a viable solution to climate change. The campaign, called “Real Climate Action: Better than Biofuels,” is working with local volunteers, activists, and community leaders in Des Moines, Iowa City, and Davenport to draw attention to the environmental harm that biofuels cause and promote more effective climate solutions.

Historically, in Iowa, the top biofuel-producing state in the country, most presidential candidates and political leaders have been pressured to embrace policies supporting food-based biofuels. However, research has shown that diverting food crops for corn ethanol and soy biodiesel production has led to massive environmental destruction, water pollution, and actually increased climate emissions. Biofuels, long touted as an environmentally responsible policy, have proven to be a climate disaster.

“This is a prime chance for candidates to distance themselves from the green-washing efforts of corporate agribusiness and embrace a vision for the Midwest that includes real solutions to climate change,” said Rose Garr, senior campaign director at Mighty Earth. “Iowa is perfectly poised to be a leading producer of clean electricity from wind and solar power —  Iowa doesn’t need biofuels to have a vibrant economy.I hope that this year’s crop of candidates will see food-based biofuels for the mistake that they are and provide courageous leadership toward the solutions that we know will work.”

“There’s no getting around it: most biofuels are dirty. Even though they’re widely perceived to be sustainable, they cause more harm than good,” said Sarah Starman, lead organizer for Mighty Earth in Des Moines. “The continual expansion of corn and soy production not only accelerates climate change, but also destroys wildlife habitat in Iowa and across the Midwest. Iowa voters and caucus-goers will be looking for political leaders who acknowledge this reality.”

Since the Renewable Fuel Standard was enacted in 2007, more than 7 million acres of natural landscapes and wildlife habitat have been converted to corn and soy production in the United States. The climate emissions resulting from this conversion are equivalent to the annual carbon dioxide pollution from 34 coal-fired power plants. In fact, government and academic reports have shown that food-based biofuels are more polluting than fossil fuels when land conversion is considered.

Aside from causing climate pollution and habitat destruction, the intensive agricultural practices and increased scope of crop production for food-based biofuels also exacerbate agricultural runoff, contaminating  drinking water and burdening local water authorities. The Des Moines Water Works, for example, is spending $15 million to double the capacity of its nitrate removal equipment due to increased levels of this toxin in the city’s drinking water sources.

“I’m hoping that the presidential candidates and local political leaders take a hard look at the harm that biofuels have caused,” Starman said. “Our leaders should join us in calling for real solutions that are better for both the economy and climate in the long-term.”

*          *          *          *

Contact: Liviya James, [email protected]

About Mighty Earth: Mighty Earth is a global campaign organization that works to protect tropical forests, oceans, and the climate. More atwww.MightyEarth.org/Iowa.


Global Investors Push Fast Food Giants to Cut Meat’s Environmental Impact

A coalition of more than 80 global investors representing more than $6.5 trillion has sent letters to six of the world’s largest fast food companies urging action to reduce environmental devastation caused by their meat. In dispatches sent to McDonald’s, Yum! Brands, Restaurant Brands International, Chipotle, Wendy’s, and Domino’s Pizza, the investors cite concerns about the financial and reputational risks to companies that fail to reduce the greenhouse gas, water, and land impacts of their meat, and highlight steps the companies need to take to reduce these risks.

“It is clear that the public is waking up to the environmental devastation caused by the meat industry,” said Lucia von Reusner, Campaign Director for Mighty Earth. “The private sector has an obligation to act responsibly, and investors understand that burning the planet to produce meat is not a good long-term business strategy.”

Meat production has a larger environmental impact than nearly any other human activity, and the top meat and dairy companies are responsible for widespread water pollution and greenhouse gas emissions nearly equal to the largest oil companies. Mighty Earth has released several reports documenting the environmental devastation caused by the largest meat companies, like Tyson and Cargill, and highlighted opportunities to reduce these impacts through more sustainable farming practices for sourcing feed and managing manure.

The investor letters call on the fast food companies – who represent more than 120,000 restaurants around the world – to set requirements for their suppliers to reduce greenhouse gas emissions, address freshwater impacts, and report regularly on progress toward these goals.

Mighty Earth is leading a campaign to build public pressure on major meat companies like Tyson and Cargill to adopt policies to stop deforestation and reduce water pollution caused by their meat supply chains. Food companies that buy large quantities of meat have significant influence over the supply chain, yet a recent analysis from Mighty Earth found most food companies – including supposedly ‘green’ sellers like Whole Foods – have no policies to ensure their meat suppliers are using environmentally responsible practices.

“Customers are increasingly looking for more sustainable food options and expect their favorite brands to be using responsible suppliers, not directing their dollars to top environmental polluters like Tyson and Cargill,” von Reusner said. “Food companies have set requirements to address issues like antibiotic overuse and animal welfare in the meat industry, and now it’s time to require environmental protections as well.”


China’s Largest Food Trader Announces Support for Ending Deforestation in South America, Putting Pressure on US-Based Cargill

COFCO, China’s state-owned food processing company and the country’s largest food trader, has announced support for an extension of the Amazonian Soy Moratorium to the other forest and savannah regions of South America and new efforts to address deforestation in commodity supply chains. In response, Mighty Earth CEO Glenn Hurowitz released the following statement:

 

“COFCO has recognized that you don’t need deforestation to supply China’s food. Indeed, COFCO knows that protecting native ecosystems is both essential to safeguarding food security and an ‘ethical imperative.’

 

“Scientific studies have shown that continued deforestation in South America will dramatically reduce soy harvests within 25 years and have demonstrated that agriculture can be expanded on Latin America’s more than one billion acres of degraded land without threatening native ecosystems or climate. We’ve been advising COFCO on the implementation of their sustainability policies and have seen clear signs of their commitment to act.

 

“In calling for an expansion of the highly successful Amazonian Soy Moratorium to other endangered ecosystems in South America, COFCO has joined industry leaders Louis-Dreyfus and Wilmar. There’s simply no excuse for laggards like Cargill to continue driving deforestation.”

Additional resources

 


Tire makers, NGOs work to end dispute regarding Global Platform for Sustainable Natural Rubber

Rubber & Plastics News | January 25, 2019 

There appears to have been a breakthrough in the dispute between tire makers and NGOs over the governance structure of the Global Platform for Sustainable Natural Rubber.

Read More


Rapid Response Success Stories

Success Stories

Mighty Earth’s Rapid Response monitoring system is leading to faster interventions by palm oil traders to address cases of deforestation and peatland development in their supply chains. Our work has had an impact on stopping deforestation and new peatland development, as well as driving greater transparency on grievance documentation and resolution by traders.  In fact, since launching rapid response, there has been universal adoption of public grievance tracking by all the traders that we’ve communicated with on the project.


Rapid Response has given palm oil traders the information and incentives to secure moratoria on further plantation development, publish new grievance protocols and grievance trackers, engage with non-compliant suppliers to bring them into compliance, and suspend non-responsive suppliers from their supply chains.

Here are a number of success stories where intervention by traders resulted in stopping deforestation. However, while this is an important first step, each of these companies needs to take further actions to be fully compliant with traders’ No Deforestation, No Peat, and No Exploitation (NDPE) policies. These include adopting a Group-level NDPE policy that requires them to adhere to the High Carbon Stock Approach methodology and implementing recovery plans to remediate the impacts of past non-compliance.  

Success Story 1: Anglo Eastern Plantations

Anglo Eastern Plantations (AEP) was found to be clearing forest in its PT Kahayan Agro Plantation concession in Central Kalimantan, as detailed in Rapid Response Report 1.  Between October 16, 2016 and September 26, 2017, an estimated 420 hectares of forest was cleared, including the habitat of Bornean orangutan. Prior to October 2016, an estimated 3,593 hectares of forest were cleared, including over 700 hectares of orangutan habitat.  Grievances were filed with a number of traders, including Bunge, Cargill, GAR, Louis Dreyfus, Olam, Wilmar, and Astra Agro Lestari.

As a result of suspensions and trader engagement, AEP announced a moratorium on any further forest clearance until it completes a High Carbon Stock (HCS) assessment.  In early 2018, AEP appointed PT Meganesia Tirta Foresta to conduct this assessment.

 

Success Story 2:  Tabung Haji Plantations

PT Persada Kencana Prima, a subsidiary of Tabung Haji Plantations (TH Plantations), cleared and developed a total of 3,708 hectares of peatland forest and non-forested peatland between January 2015 and July 2017. TH Plantations adopted a moratorium on further land development in PT Persada Kencana Prima in July 2017 after a Greenpeace report exposed deforestation and new peatland development in the concession.  However, between April 7 to June 20, 2018, a further 217 hectares of peatland forest were cleared – as documented in Rapid Response Report 5. Evidence on this case has also been published by other NGOs.

A number of traders – ADM, Cargill, GAR, IOI Group, Louis Dreyfus, Musim Mas, Olam and Wilmar – have either suspended trade with Tabung Haji Plantations or engaged with Tabung Haji Plantations, directly or through their third-party suppliers, calling on the company to honor its moratorium on deforestation. As a result of this engagement, Tabung Haji Plantations recommitted to its agreement to complete High Conservation Value (HCV) and High Carbon Stock (HCS) forest assessments before any further development takes place.

Between April 7 to June 20, 2018, a total of 217 hectares of peatland forest were cleared.

Success Story 3:  Widya Corporation

PT Mulia Inti Perkasa is part of the Widya Corporation. Between May 11 to July 19, 2018 a total of 30 hectares of forest were cleared in the PT Mulia Inti Perkasa concession, as documented in Rapid Response Report 6.

Traders, including ADM, GAR, and Wilmar, engaged with Widya Corporation regarding this case, either directly or through third-party suppliers.  In August 2018, Widya Corporation informed buyers that they have ceased all land clearing activities in the PT Mulia Inti Perkasa concession. HCS and HCV assessments are now being conducted.

Satellite imagery shows that for the period May 11 to July 19, 2018, a total of 30 hectares of forest were cleared.

Success Story 4: Gama Group

PT Agriprima Cipta Persada, which is part of the Gama Group, was featured in Rapid Response reports 3 and 4.  PT Agriprima Cipta Persada cleared 2,847 hectares of forest in 2015 and 2016, and cleared or degraded a further 185 hectares of forest between November 2017 and June 2018.  PT Agrinusa Persada Mulia, another Gama Group concession, was also featured in Rapid Response Report 3. Between May and November 2017, 2,361 hectares of forest were cleared in this concession.

A number of traders – ADM, Bunge, Cargill, GAR, Louis Dreyfus, Musim Mas, Olam, and Wilmar – have engaged with Gama Group, directly or through their supplying traders, or suspended trade with the company.  As a result of this engagement, as well as ongoing campaigns by other NGOs including Greenpeace, in August 2018, the Gama Group issued a moratorium on further forest clearance, applicable to all of its group controlled concessions and operations.  Soon after, Gama Group released a group-wide NDPE palm oil policy.

PT Agriprima Cipta Persada (PT ACP) is located in Papua province. It covers an area of 59,796 hectares.

Suspended suppliers

Engagement efforts by a number of traders has also led to the suspension of non-compliant suppliers from their supply chains when the supplier refuses to halt the ongoing clearance and adopt a group level NDPE policy.  More than 50 individual cases of suspensions have been reported to be linked to Rapid Response cases, which have reduced the market access for many rogue plantation groups and suppliers. As a result of our outreach to the palm oil industry, a number of the worst companies have been suspended by major palm oil traders with NDPE polices.

Here are a few examples: 

Austindo Nusantara Jaya (ANJ Group) has had ongoing deforestation in its PT Permata Putera Mandiri (Blok I) concession in West Papua, Indonesia, which has been highlighted in multiple Rapid Response reports, beginning with Report 3.  Every trader engaged by Rapid Response on this case has suspended trade with the ANJ Group.

Hayel Saeed Anam Group (HSA)/Pacific Inter-Link is another company that has been linked to ongoing forest clearance, in two concessions in Papua, Indonesia:  PT Kartika Cipta Pratama and PT Megakarya Jaya Raya, featured in multiple reports beginning with Rapid Response Report 5.  Every trader engaged by Rapid Response on this case has suspended trade with HSA/Pacific Inter-Link.

BLD Plantation Bhd has been clearing forest and destroying peatlands in Sarawak, Malaysia, as featured in multiple reports beginning with Rapid Response Report 4.  Every trader engaged by Rapid Response on this case has suspended trade with BLD Plantation Bhd.

PARTNERS


About Rapid Response

About Rapid Response

Over the last several years, the private sector has dramatically increased its commitment to intervene with those suppliers involved in deforestation and peatland development.

Many of the world’s largest food and agriculture companies have adopted ‘No Deforestation, No Peat, No Exploitation’ (NDPE) policies aimed at eliminating such practices from their supply chains.  Satellite monitoring data has become more sophisticated and affordable, making it possible for companies and governments to capture and respond to deforestation incidents more quickly than ever before.  Such remote sensing data has proven highly valuable for helping reduce or eliminate deforestation where there is a clear business or government mandate for action.

In the fall of 2017, Mighty Earth – supported by MapHubs, Aidenvironment and Planet – launched a Rapid Response monitoring system to identify deforestation and new peatland development across 3000+ oil palm concessions in Indonesia and Malaysia. The total area currently monitored covers around 21 million hectares, or 208,000 square kilometers, an area more than twice the size of Portugal.  Mighty Earth plans to expand the system to monitor other geographies and commodities, including soy, cattle, rubber, and cocoa.

This Rapid Response monitoring program utilizes Global Land Analysis & Discovery (GLAD) tree cover loss alerts from the University of Maryland to generate a list of the top potential incidents of deforestation and/or peatland development documented in the past month within palm oil concession boundaries in Indonesia and Sarawak, Malaysia.  The GLAD alerts information is then confirmed using images generated by Planet’s nano satellites. In addition to the case studies identified through GLAD alerts analysis, the team also incorporates other cases studies brought to Mighty Earth’s attention via partners and independent research. The team then identifies supply chain and financial links between the plantations and the world’s largest agricultural buyers.

PT Krida Dharma Kahuripan located in Katingan Regency, Central Kalimantan.

To date, the Rapid Response program has identified deforestation and peatland development in oil palm concessions in Papua, West Papua, Sumatra, and Kalimantan in Indonesia, as well as Sarawak in Malaysia. These cases have been linked to dozens of companies and their parent groups, such as ANJ Group, BLD Plantations, and Tsani Hutani Abadi Group.

The evidence is published in Rapid Response reports which are sent directly to global palm oil traders that control the majority of the global trade in palm oil, with the expectation that swift action can be taken with their suppliers to stop these incidents before they grow into large-scale events. 

Mighty Earth’s work has driven results from companies that have a public and transparent grievance tracking process, including a log of filed grievances and progress updates.

See our Success Stories to learn more about the impact of our work.

PARTNERS


Mighty Earth responds to Tyson Announcement of Partnership to Implement Sustainable Feed Sourcing Commitment

Nine months after announcing its commitment to improve sustainability practices for 2 million acres of its animal feed, Tyson has released details on how it will begin implementing this goal. Tyson Foods has partnered with the Environmental Defense Fund to pilot sustainable farming practices on 500,000 acres of U.S. corn, and publicly communicate its progress. While still lacking substantial details, this announcement is an important step towards providing transparency and insight into Tyson’s plans for making its supply chain more sustainable.

“Industrial meat production is one of the most polluting activities on the planet- causing significant water pollution, greenhouse gas emissions, and destruction of native ecosystems like grasslands and forests” noted Mighty Earth CEO Glenn Hurowitz. “As one of the world’s largest meat producers, Tyson has significant influence over farming practices used to raise meat and has a responsibility to put agriculture on a more sustainable path."

Tyson has faced growing public scrutiny and concern about the environmental devastation being caused by its supply chain, which is driving widespread water pollution and greenhouse gas emissions throughout the United States. The bulk of Tyson’s environmental impact comes from producing the vast quantities of grain used in animal feed, as well as the disposal of manure.

"In order to drive real improvements, Tyson must require all suppliers to use farming practices like cover cropping, fertilizer efficiency, conservation tillage, and native ecosystem protections for growing animal feed, and adopt a responsible manure management policy that prevents further contamination of our nation’s waters," said Mighty Earth Campaign Director Lucia von Reusner.

Mighty Earth has been leading a nation-wide campaign to raise public awareness and mobilize pressure on Tyson to improve farming practices for feed and manure that would reduce water pollution and greenhouse gas emissions. Hundreds of thousands of Americans have joined the campaign, as have shareholders concerned about the growing risks to Tyson from ongoing water pollution.

See more about Mighty Earth’s #CleanItUpTyson campaign here.


Palm Oil: Report 11

Mighty Earth Rapid Response Report 11

VIew as PDF

Indonesian companies: PT Krida Darma Kahuripan, PT Internusa Jaya Sejahtera, PT Putera Manunggal Perkasa, PT Senabangun Aneka Pertiwi, PT Borneo Agro Sawit, PT Mempawah Permai Lestari, PT Kartika Cipta Pratama, PT Persada Era Agro Kencana, PT Pinang Witmas Abadi, PT Sumur Pandanwangi

Malaysian companies: LPF/0006 Samling-Lana, BLD Plantation, LPF/0042

December 2018 

Prepared with support from Aidenvironment and MapHubs

PT Krida Dharma Kahuripan

 

 

Concession Information: PT Krida Dharma Kahuripan is located in Katingan Regency, Central Kalimantan. The concession covers an area of 13,382 hectares1. (Long: 113°21’2.52″E, Lat: 1°35’59.06″S)

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between July 10 and November 20, 2018, a total of 345 hectares of forest were cleared in the PT Krida Dharma Kahuripan concession. (Imagery © 2018 Planet Labs Inc.)

Ownership Information: 

No ownership information available.

PT Krida Dharma Kahuripan has previously been reported to be part of the Makin Group. The company claims that the location permit (ILOK) of PT Krida Dharma Kahuripan was returned to the local government (Katingan Regency) in July 2017 and the concession land is categorized by the government as production forest area and therefore cannot be converted to plantations.

Supply chain information: 

No supply chain information available


 

PT Internusa Jaya Sejahtera

 

 

Concession Information: PT Internusa Jaya Sejahtera is located in Papua province. The concession covers an area of 25,395 hectares3. (Long 140°48’22.6″E, Lat 7°19’30.0″S)

 

 

Deforestation: 

\

Satellite imagery (see below) shows that between October 9 and December 4, 2018, a total of 253 hectares of forest were cleared in Area A of the PT Internusa Jaya Sejahtera concession. Also, between October 6 and December 11, 2018, a total 382 hectares of forest were cleared in Area B of the PT Internusa Jaya Sejahtera concession . (Imagery © 2018 Planet Labs Inc. & Landsat 8 Imagery 2018)

Ownership Information: 

Group: Indonusa Agromulia Group/Indonusa Group

PT Internusa Jaya Sejahtera is part of Indonusa Agromulia Group. Indonusa Agromulia Group is commonly known as Indonusa group. PT Internusa Jaya Sejahtera is owned by Rosna Tjuatja (99.87%). She sits as the Commissioner on the Indonusa Agromulia Group and also serves as President commissioner at PT Profindo International Securities4.

Supply Chain Information: 


 

PT Putera Manunggal Perkasa

 

 

Concession Information: PT Putera Manunggal Perkasa is located in West Papua province. The concession covers an area of 34,310 hectares5. (Long 132°21’17.93″E, Lat 1°53’45.09″S)

 

Deforestation: 

Satellite imagery (see below) shows that between October 29 and December 4, 2018, a total of 28 hectares of forest were cleared in Area A of the PT Putera Manunggal Perkasa concession. Also, between October 29 and December 4, 2018, a total 167 hectares of peat forest were developed in Area B of the PT Putera Manunggal Perkasa concession. (Imagery © 2018 Planet Labs Inc. & Landsat 8 Imagery 2018)

Ownership Information: 

Group: Austindo Nusantara Jaya Tbk (ANJ Group)

PT Putera Manunggal Perkasa is a subsidiary of Austindo Nusantara Jaya Tbk (ANJ Group). Mr. Geetha Govindan is the President Director of Austindo Nusantara Jaya Tbk.6

Supply Chain Information: 


 

PT Senabangun Aneka Pertiwi

 

 

 

Concession Information:  PT Senabangun Aneka Pertiwi is located in Paser district, East Kalimantan Province. The concession covers an area of 20,011 hectares8. (Long 116° 14′ 04′′ E, Lat 2° 14′ 13′′ S)

 

 

Deforestation: 

Satellite imagery (see below) shows that between September 28 and November 27, 2018, a total of 163 hectares of forest were cleared in the PT Senabangun Aneka Pertiwi concession. (Imagery © 2018 Planet Labs Inc.)

Ownership Information: 

Group: Jhonlin group

PT Senabangun Aneka Pertiwi is owned by the children of Haji Syamsudin Andi Arsyad (Haji Isam), Liana Saputri and Jhonny Saputra, through PT Citra Agro Raya and Araya Agro Lestari. Haji Isam is the owner of Jhonlin group.9

Supply Chain Information: 

No supply chain information available.


 

PT Borneo Agro Sawit

 

 

 

Concession Information: PT Borneo Agro Sawit is located in Berau district, East Kalimantan. The concession covers an area of 21,157 hectares10. (Long 117° 26′ 09′′ Lat E 2° 16′ 18′′ N)

 

Deforestation: 

Satellite imagery (see below) shows that between September 24 and November 29, 2018, a total of 121 hectares of forest were cleared in the PT Borneo Agro Sawit concession. (Imagery © 2018 Planet Labs Inc.)

Ownership Information: 

No ownership information available.

Supply Chain Information: 

No supply chain information available.


 

PT Mempawah Permai Lestari

Concession Information: PT Mempawah Permai Lestari is located in Bengkayang district, West Kalimantan. The concession covers an area of 7,511 hectares11 . (Long 109° 13′ 54″ E Lat 0° 37′ 26″ N).

 

Deforestation: 

Satellite imagery (see below) shows that between September 4 and December 3, 2018, a total of 80 hectares of forest were cleared in the PT Mempawah Permai Lestari concession. (Imagery © 2018 Planet Labs Inc.)

Ownership Information: 

Group: Bee Garden Holdings Sdn Bhd

PT Mempawah Permai Lestari is part of Bee Garden Holdings Sdn Bhd, which is owned by Puan Sri Tan Bee Hong.

Supply Chain Information: 

No supply chain information available.


PT Kartika Cipta Pratama

 

 

 

Concession Information:  PT Kartika Cipta Pratama is located in Boven Digoel Regency, West Kalimantan. The concession covers an area of 40,882 hectares13 (Long 140°12’31.6″E, Lat 6°20’26.6″S)

 

Deforestation: 

Satellite imagery (see below) shows that between November 7 and December 6, 2018, a total of 227 hectares of forest were cleared in the PT Kartika Cipta Pratama concession. (Imagery © 2018 Planet Labs Inc.)

Ownership Information: 

Group: HSA Group

In 2012, four UAE holding companies (Prestige Holding Ltd., Malindo Investments Ltd, Crescent Investments Ltd, and Green Resources Ltd) believed to be affiliated with the Yemen-based HSA Group purchased 80% stake of each of these four companies located in the Boven Digoel district of West Papua, Indonesia: PT Megakarya Jaya Raya, PT Kartika Cipta Pratama, PT Graha Kencana Mulia and PT Energi Samudera Kencana. PT Megakarya Jaya Raya and PT Kartika Cipta Pratama are two concessions involved in Tanah Merah project in Boven Digoel Regency. These concessions cover a combined 155,330 hectares. Since January 2014, around 5,000 hectares of forest have been cleared in PT Megakarya Jaya Raya and PT Kartika Cipta Pratama.

Up until June 5, 2018, the four plantation companies had Fouad Hayel Saeed Anam listed as President Commissioner on their notary acts. Fouad Hayel Saeed is Regional Director-Malaysia of the HSA Group and Managing Director of Pacific Inter-Link, the group’s subsidiary. Legal documents also listed Salah Ahmed Hayel Saeed as Commissioner of PT Energi Samudera Kencana & PT Megakarya Jaya Raya and President Director of PT Graha Kencana Mulia & PT Kartika Cipta Pratama. Hayel Saeed is Director of Pacific Inter-Link’s refining division, PT Pacific Palmindo Industri. Recent notary acts confirm that on June 5, 2018, Fouad Hayel Saeed ceased to be President Commissioner of PT Megakarya Jaya Raya and PT Kartika Cipta Pratama, and Salah Ahmed Hayel Saeed is no longer Commissioner of PT Megakarya Jaya Raya and President Director of PT Kartika Cipta Pratama. Nakul Rastogi also disappeared from PT Kartika Cipta Pratama’s notary acts.

However, June 5, 2018 notary acts does not show any change in PT Megakarya Jaya Raya, PT Kartika Cipta Pratama, PT Graha Kencana Mulia and PT Energi Samudera Kencana shareholders. Hence, it is assumed that these companies remain affiliated with the HSA Group. Little is known about the new directors of the two concessions, except that some notable individuals in Indonesian politics and business are involved. Mr. Alwi Abdurrahman Shihab, former Foreign Minister of the Indonesian government, has become President Commissioner of PT Megakarya Jaya Ray. Drs. Tommy Sagiman is now the commissioner of PT KCP. He is ex-Inspector General of the police. Nata Singh Gurdev Singh became director of PT Megakarya Jaya Raya in June 2018. Until April 2018, he worked for Sime Darby. Alwi Abdurrahman Shihab is the Indonesian President’s special envoy to the Middle East and the Organisation of Islamic Cooperation.

The HSA Group is one of the oldest business conglomerate in the Middle East, founded in 1938 by Al Haj Hayel Saeed Anam and his brothers Mohamed, Abdo and Gazern. The Group is today headed by Abdul Gabbar Hayel Saeed, CEO and Chairman. The HSA Group is involved in the palm oil industry through its subsidiaries PT Pacific Palmindo Industri, PT Pacific Medan Industry, PT Pacific Indopalm Industries, Pacific Oil & Fats Industries and Pacific Inter-Link, which are all RSPO members14, and PT Pacific Indomas.

Additional evidence shows continued family links to the PT Tulen Jayamas Timber Industries timber complex, a joint-venture project with Bumimas Raya Sdn Bhd, Pacific Inter-Link Sdn Bhd, Yakin Dijaya Sdn Bhd and Al Salam Bank Bahrain’ announced by Tadmax Resources in 2012.15 The PT Tulen Jayamas Timber Industries timber complex is situated within the PT Kartika Cipta Pratama concession.

Malindo Investments Ltd which holds 80% shares in PT Kartika Cipta Pratama (see above), also holds 40% of the shares in the Malaysian-based parent company of PT Tulen Jayamas Timber Industries – i.e. Tulen Jayamas Sdn Bhd. Mr. Salah Ahmed Hayel Saeed and Mr. Fouad Hayel Saeed Anam are directors of Tulen Jayamas Sdn Bhd, in addition to their positions in the Indonesian subsidiary (PT Tulen Jayamas Timber Industries) as of 28 April 2018.

Supply Chain Information: 

The HSA Group company Pacific Inter-Link (PIL) used to trade with IOI and Nestlé, however both companies have suspended trade with the company due to concerns over its involvement in deforestation. Pacific Inter-Link claims to be one of the largest palm oil traders to the Middle East, Africa, Russia, Ukraine and Turkey.16


 

PT Persada Era Agro Kencana

 

 

 

Concession Information: PT Persada Era Agro Kencana is located in Katingan district, Central Kalimantan. The concession covers an area of 12,933 hectares17. (Long 113° 17′ 02′′ E, Lat 2° 34′ 09′′ S).

 

Deforestation: 

Satellite imagery (see below) shows that between September 25 and December 1, 2018, a total of 200 hectares of peat were developed in Area A of the PT Persada Era Agro Kencana concession. Also, between October 31 and December 5, 2018, a total 189 hectares of peat forest were developed in Area B of the PT Persada Era Agro Kencana concession. (Imagery © 2018 Sentinel Imagery 2018)

Ownership Information: 

Group: Mulia Sawit group

PT Persada Era Agro Kencana is a subsidiary of Mulia Sawit group. Mulia Sawit group is owned by Kurnia Lukman Goutama, Tjio Andre Yenatha, Kevin Wusman and Sanjaya Lukman. Tjio Andra Yenatha, known as Andre, also serves as a Director of PT Bangun Jaya Alam Permai of the Best Plantation Group.

 

Supply Chain Information: 


 

PT Pinang Witmas Abadi

 

 

 

Concession Information:  PT Pinang Witmas Abadi is located in Kuburaya district, West Kalimantan. The concession covers an area of 10,510 hectares19. (Long 109° 37′ 06′′ E, Lat 0° 08′ 03′′ S).

 

Deforestation: 

Satellite imagery (see below) shows that between October 22 and December 9, 2018, a total of 79 hectares of peat forest were developed in the PT Pinang Witmas Abadi concession. (Imagery © 2018 Planet Labs Inc.)

Ownership Information: 

Group: Pundi group

PT Pinang Witmas Abadi is owned by PT Pundi Bhakti Khatulistiwa through PT Pundi Lahan Khatulistiwa (Pundi Group), which is an independent company located in Kubu Raya, West Kalimantan. Currently, the Director of Pundi Bhakti Khatulistiwa is The Kie Hok, who also serves as the President Director of PT Pundi Lahan Khatulistiwa. Mr. Suryadi Polem is the main shareholder in both PT Pundi Lahan Khatulistiwa and PT Pundi Bhakti Khatulistiwa.20 Ownership of PT Pundi Bhakti Khatulistiwa is shown below.

Supply Chain Information: 


 

PT Sumur Pandanwangi

 

 

 

Concession Information:  PT Sumur Pandanwangi is located in Seruyan Regency, Central Kalimantan. The concession covers an area of 7,492 hectares.21 (Long: 112°36’52.62″E, Lat: 3°19’29.78″S).

 

 

Peat Development:

Satellite imagery (see below) shows that between November 5 and December 10, 2018, a total of 269 hectares of peat were developed in the PT Sumur Pandanwangi concession. (Imagery © 2018 Planet Labs Inc.)

Ownership Information: 

Group: Musirawas

PT Sumur Pandawangi is part of the Musirawas Group, which owns three plantation companies which operate in the Seruyan and East Kotawaringin districts of Central Kalimantan. Together they hold a total land bank of 34,000 hectares, with roughly 24,000 hectares producing oil palm. Musirawas has four operational palm oil mills.

The founder of oil palm operations is Mr. Widjojo Soejono, who was a General in the Indonesian National Armed Forces (TNI). Each of his five children control 20% of the shares in PT Sumur Pandawangi (through PT Panca Bumisari Utama and PT Mahesi Agri Karya). 22

Musirawas Group also holds shares in other plantations companies affiliated with Asam Jawa. PT Panca Bumisari Utama holds 36% of the shares in PT Sapta Karya Damai, 10% in PT Palma Prima Plantation and 27.5% shares in PT Asam Jawa, which in turn controls 80% of the shares in PT Palma Prima Plantation and 92% of the shares in PT Sawitmas Nugraha Perdana.

Supply Chain Information: 


 

LPF/0006 Samling-Lana

 

 

 

Concession Information:  PT Samling-Lana is located in Sarawak, Malaysia. The concession covers an area of 82,124 hectares23. (Long 109°17’49.76″E, Lat 0°17’31.81″S)

 

 

Deforestation:

Satellite imagery (see below) shows that between September 12 and November 30, 2018, a total of 104 hectares of forest were cleared in the LPF/006 Samling-Lana concession (Imagery © 2018 Planet Labs Inc.)

Ownership Information: 

Group: Samling group

License Plantation Forest (LPF)/0006 Lana is issued to Samling Reforestation (Bintulu) Sdn Bhd (SRB) – a subsidiary of Syarikat Samling Timber Sdn Bhd (SST) in Sarawak, Malaysia and a member of Samling group. The Samling group – which was founded by Tan Sri Yaw Teck Seng, a Malaysian businessman – is engaged in timber, oil palm, property and automotive business ventures. Samling group.

Supply Chain Information: 


 

BLD Plantation

 

 

 

Concession Information: BLD Plantation Bhd is located in Sarawak, Malaysia. The concession covers an area of 20,158 hectares26. (Long 111°47’22.67″E, Lat 2°35’49.80″N)

 

Deforestation: 

Satellite imagery (see below) shows that between August 26 and December 6, 2018, a total of 1,283 hectares of peat forest were developed in Area A of the BLD Plantation concession. Also, between October 12 and December 2, 2018, a total 24 hectares of peat forest were developed in Area B of the BLD Plantation concession. (Imagery © 2018 Planet Labs Inc.)

Ownership Information: 

Group: BLD Plantation Bhd

BLD Plantation Bhd is part of the KTS group of companies. The group is controlled by the Lau family and their relatives, as well as the Wan Hamid family. Dato Henry Lau Lee Kong is the Executive Chairman of BLD Plantation, while Mr. Haji Wan Abdillah bin Wan Hamid is the group’s Executive Director. Lau is also the Honorary Secretary of the Sarawak Timber Association (STA).

Supply Chain Information: 


 

LPF/0042

 

 

 

Concession Information: LPF/0042 is located in Lundu district, Sarawak. The concession covers an area of 4,773 hectares28. (Long 109° 56′ 03′′ E, Lat 1° 31′ 07′′ N).

 

 

Deforestation: 

Satellite imagery (see below) shows that between September 4 and December 3, 2018, a total of 52 hectares of forest were cleared in the LPF 0042 concession (Imagery © 2018 Planet Labs Inc.)

Ownership Information: 

Group: Unknown

License Plantation Forest (LPF)/0042 is issued for Polima Forest Bintulu Sdn Bhd in Lundu, Sarawak, Malaysia. The main activities of Polima Forest Bintulu Sdn Bhd are forestry and logging.29 The Director of Polima Forest Bintulu Sdn Bhd is Dato’ Ngieng Ping Wei, a Malaysian businessman30. There is a palm oil mill within LPF 0042, and based on the satellite imagery, the clearing looks similar to that done for oil palm development.

Supply Chain Information: 

No supply chain information available.


 

Sources for supply chain information: 

Supply chain information included in this Rapid Response report is based on the following publicly disclosed sources and direct communications with these companies. Mighty Earth encourages companies to send updated versions of mill disclosures as soon as they become available and any decision to terminate supplies with a given company listed in those mill disclosures; please send to [email protected].

 


Behind the Wrapper

December 2018

Despite the chocolate industry’s pledge to cease sourcing cocoa linked to deforestation one year ago, a new Mighty Earth report finds that deforestation in West Africa for cocoa has continued, and in some cases has increased.

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Launch of agroforestry app "CanOvaLator"

Launch of agroforestry app "CanOvaLator"

 

If you want to get involved, help or ask questions, click here.


SumofUs Shareholder Resolution

 

 

 

SumOfUs members filed a shareholder resolution against one of the biggest chocolate companies in the world – Mondelez and Cadbury – asking them to clean up their act for forests and farmers.

 

 


La industria chocolatera arrasa con los bosques de Costa de Marfil, según el informe de una ONG

El Pais | December 10, 2018 

The illegal logging of trees to increase cocoa plantations in the African country persists despite the commitments made by large firms.

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