Mighty Earth Rapid Response Report 13

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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].