Mighty Earth Rapid Response Report 10

Indonesian companies:

PT Kartika Cipta Pratama, PT Rimbun Sawit Papua, PT Internusa Jaya Sejahtera, PT Sawit Mandiri Lestari, PT Putera Manunggal Perkasa, PT Sebukit Inter Nusa, PT Permata Putera Mandiri (Blok I), PT Pinang Witmas Abadi, PT Persada Era Agro Kencana, PT Sumur Pandanwangi and PT Sumatera Jaya Agro Lestari

November 2018

Prepared with support from Aidenvironment and MapHubs

 

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 hectares1. (Long 140°12’31.6″E, Lat 6°20’26.6″S)

Deforestation:

Satellite imagery (see below) shows that between October 8 and November 7, 2018, a total of 363 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 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 members2.

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.

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.


 

PT Rimbun Sawit Papua

Concession Information: PT Rimbun Sawit Papua is located in West Papua province. The concession covers an area of 30,596 hectares.5 (Long 133° 6’58.80″E, Lat 2°55’32.52″S)

Deforestation: 

Satellite imagery (see below) shows that between December 22, 2017 and October 28, 2018, a total of 1,260 hectares of forest and 263 hectares of peat forest were cleared in the PT Rimbun Sawit Papua concession. (Imagery © 2018 Planet Labs Inc).

Ownership Information: 

Family: Jeff Setiawan and Ir. Daud

PT Rimbun Sawit Papua is owned by Jeff Setiawan Winata (20%), the Commissioner of PT Rimbun Sawit Papua, PT Sawit Timur Nusantara (50%) and PT Palmandiri Plantation (30%).6

PT Sawit Timur Nusantara is owned by Dedi Mulyadi (2.5%) and PT Mulia Abadi Lestari (97.5%), which ultimately owned by Dedi Mulyadi and Junus Sutiono. PT Palmandiri Plantation is ultimately owned by Ir. Daud (99.2%), the President Director of PT Rimbun Sawit Papua.7

PT Mulia Abadi Lestari holds 28.6% shares in PT Duta Rendra Mulya8, a Salim-owned plantation company.

Supply Chain Information: 

No supply chain information available.


 

PT Internusa Jaya Sejahtera

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

Deforestation: 

Satellite imagery (see below) shows that between July 28 and October 9, 2018, a total of 517 hectares of forest were cleared in the PT Internusa Jaya Sejahtera concession. (Imagery © 2017 Planet & 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 Securities.


 

PT Sawit Mandiri Lestari

Concession Information: PT Sawit Mandiri Lestari is located in Lamandau Regency, Central Kalimantan. The concession covers an area of 19,635 hectares. (Long 111°10’42.9″E, Lat 1°52’57.3″S)

Deforestation: 

Satellite imagery (see below) shows that between October 10 and October 31, 2018, a total of 160 hectares of forest were cleared in the PT Sawit Mandiri Lestari concession. (Imagery © 2018 Planet Labs Inc).

 

Ownership Information: 

Group: PT Metro Lestari Jaya

Up until December 2015, PT Sawit Mandiri Lestari was a subsidiary of Sawit Sumbermas Sarana (SSMS), part of the Citra Borneo Indah Group. PT Sawit Mandiri Lestari is now owned by Rinawati (60%) and Hamidi Mukhdar Said (40%) through PT Metro Lestari Jaya.

Supply Chain Information: 

No supply chain information available.

PT Putera Manunggal Perkasa

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

Deforestation: 

Satellite imagery (see below) shows that between August 18 and October 29, 2018, a total of 107 hectares of forest were cleared in the PT Putera Manunggal Perkasa concession. (Imagery © 2018 Sentinel 2 Imagery).

 

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.

Supply Chain Information: 

PT Permata Putera Mandiri (Blok I)

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

Deforestation: 

Satellite imagery (see below) shows that between August 18 and November 7, 2018, a total of 14 hectares of forest were cleared in the PT Permata Putera Mandiri (Blok I) concession. (Imagery © 2018 Planet Labs Inc).

Ownership Information:

Group: Austindo Nusantara Jaya Tbk (ANJ Group)

PT Permata Putera Mandiri is owned by PT Austindo Nusantara Jaya Agri, a subsidiary of PT Austindo Nusantara Jaya Tbk (ANJ Group). Mr. Geetha Govindan is President Director of Austindo Nusantara Jaya Tbk.

Supply Chain Information:

 

PT Sebukit Inter Nusa

Concession Information: PT Sebukit Internusa is located in West Kalimantan Province, Kuburaya district. The concession covers an area of 10,098 hectares20. (Long 109° 31′ 46′′ E, Lat 0° 19′ 27′′ S).

Peat Development

Satellite imagery (see below) shows that between August 13 and October 10, 2018, a total of 2,131 hectares of peat were developed in the PT Sebukit Internusa concession. (Imagery © 2018 Planet Labs Inc).

Ownership Information: 

Family: Tuan Ted Sioeng / Sioeng Group

PT Sebukit Inter Nusa is owned by Tuan Ted Sioeng / Sioeng Group. Tuan Ted Sioeng – also known as Xiong Delong and Sioeng Wong – is an Indonesian businessman of Chinese descent. He is also owner of the Chinese-language International Daily News. Jessica Gatot Elnitiarta. The Commissioner of PT Sebukit Inter Nusa, is the daughter of Tuan Ted Sioeng.

Supply Chain Information: 

No supply chain information.

PT Pinang Witmas Abadi

Concession Information: PT Pinang Witmas Abadi is located in West Kalimantan Province, Kuburaya district. The concession covers an area of 10,510 hectares22. (Long 109° 37′ 06′′ E, 0° 08′ 03′′ S)’

Deforestation: 

Satellite imagery (see below) shows that between July 16 and October 22, 2018, a total of 168 hectares of peat forest were cleared and 1,487 hectares were prepared with stacking lines in the PT Pinang Witmas Abadi concession. (Imagery © 2018 Planet Labs Inc & Sentinel 2 Imagery).

Ownership Information: 

Supply Chain Information: 


 

PT Persada Era Agro Kencana

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

Deforestation: 

Satellite imagery (see below) shows that between August 27 and October 31, 2018, a total of 383 hectares of peat were cleared in the PT Persada Era Agro Kencana concession. (Imagery © 2018 Sentinel Imagery).

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 Sumur Pandanwangi

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

Peat Development: 

Satellite imagery (see below) shows that between August 20 and November 5, 2018, a total of 528 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 is still commonly referred to as the Asam Jawa Group. The Musirawas Group 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 hold a 20% share in PT Sumur Pandawangi.

Supply Chain Information: 


 

PT Sumatera Jaya Agro Lestari

Concession Information: PT Sumatera Jaya Agro Lestari is located in West Kalimantan Province, Sanggau district. The concession covers an area of 37,090 hectares28. (Long 113° 17′ 02′′ E, Lat 2° 34′ 09′′ S).

Deforestation: 

Satellite imagery (see below) shows that between August 12 and October 23, 2018 a total of 27 hectares of forest were cleared and 12 hectares of peat were developed in Area A of the PT Sumatera Jaya Agro Lestari concession. Also between September 16 and October 23, 2018 a total of 61 hectares of peat forest were developed in Area B of the PT Sumatera Jaya Agro Lestari concession. (Imagery © 2018 Planet Labs Inc).

Ownership Information: 

Group: Incasi Raya group

PT Sumatera Jaya Agro Lestari is a subsidiary of Incasi Raya group, which is owned by the Gunawan family. The family has business relations with GAPKINDO (Rubber Association of Indonesia).

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. 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].