Mighty Earth Rapid Response Report 4

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BLD Plantation Bhd, PT Permata Putera Mandiri (Blok I), LPF/0039 Zedtee SB, PT Agriprima Cipta Persada, PT Condong Garut

May 2018

Prepared with support from Aidenvironment and MapHubs

BLD Plantation Bhd



 

Concession Information: BLD is located in Sarawak. It covers an area of 20,158 hectares. (Long 111°47’22.67″E, Lat 2°35’49.80″N)

 

Deforestation: Satellite imagery (see below) shows that 904 hectares of peat forest were cleared in the concession from March 9 – May 22, 2018. Satellite imagery shows that between September and December 2017, around 460 hectares of peat were cleared on the plantation.

 

 

 

Alert Overview:

 

 

Alert Imagery (before and after satellite images): 

 

Ownership Information: 

BLD Plantation belongs to KTS Holdings Sdn Bhd. 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 Honorary Secretary of the Sarawak Timber Association (STA).

 

 

Supply Chain Information: 

Bunge Loders Croklaan used to buy from BLD; however, according to the latest list of supplying mills, it seems like the company has been suspended. The current buyers according to the recently published list of mills by companies are AAK, Nestlé, Reckitt Benckiser, Olam and Louis Dreyfus.

 

 

PT Permata Putera Mandiri (Blok I)



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

 

 

Deforestation: PT Permata Putera Mandiri Blok I (PT PPM) was featured in Rapid Response Report 3 due to clearance, and that clearance has continued since the release of the report. We found 668 hectares of clearance between June 2017 and December 2017. Satellite imagery (see below) shows that 951 hectares of forest were cleared in the concession from March 11 to May 25, 2018.

 

 

Alert Overview: 

 

Alert Imagery (before and after satellite images): 

 

Ownership Information: 

PT PPM is owned by Austindo Nusantara Jaya Agri. The group was suspended in 2015 by its buyers with integrated sustainability policies over non-compliant deforestation activities in PT PPM. The company stopped clearance activities on the ground for two years. Deforestation started again in late 2017.

 

Supply Chain Information: 

As of Q3 in 2017, the main customers of Austindo Nusantara Jaya are Felda Iffco (FGV and Tabung Haji’s PT Synergy Oil Nusantara Refinery located in Batam, Indonesia), Gokul Agro Resources (an Indian processor and manufacturer of edible and non-edible oils) and Kuala Lumpur Kepong Berhad (through its PT Adei Plantation and Industry in Riau). Gokul Agro Resources is a supplier to Unilever.

Licensed to Plant Forests LPF/0039 Zedtee SB



 

Concession Information: Licensed to Plant Forests LPF/0039 Zedtee SB is located in Sarawak. It covers an area of 15,531 hectares. (Long 112°48’26.89″E, Lat 2°34’52.75″N)

 

 

Deforestation: Satellite imagery (see below) shows that 198 hectares of forest were cleared in the concession from March 2 to May 9, 2018. However, it looks like the deforestation is currently due to forestry activities. It is likely that once the valuable timber has been extracted the company will plant oil palm.

 

 

Alert Overview: 

 

Alert Imagery (before and after satellite images): 

 

Ownership Information: 

Licensed to Plant Forests (LPF)/0039 Zedtee SB is a company engaged in forestry and plantation forests. LPF/0039 Zedtee SB is a member of the Shin Yang Group. The Shin Yang group is also involved in the oil palm business in Sarawak, comprised of nine plantations (five in Miri and four in Kapit, Sarawak). Mr. Chiong Ho Ling is the chairman and founder of Shin Yang Group of companies. He also serves as executive chairman of Sarawak Oil Palms Bhd. Sarawak Oil Palm Bhd had recently purchased Shin Yang Oil Palms Sdn Bhd.

 

Supply Chain Information: 

Shing Yang group sells timber and FFB to Sarawak Oil Palms Bhd. Among the main known buyers of Sarawak Oil Palms are Sime Darby, Reckitt Benckiser, Nestlé, Mars, ADM, General Mills and Cargill.

PT Agriprima Cipta Persada



Concession Information: PT Agriprima Cipta Persada (PT ACP) is located in Papua province. It covers an area of 59,796 hectares. (Long 140°32’15.31″E, Lat 7°26’12.59″S)

 

 

Deforestation: PT ACP was featured in Rapid Response Report 3. There were 2,847 hectares cleared in 2015 and 2016, evidence of new stacking lines from November to December 2017, and clearing of 70 hectares from November 2017 to January 2018. Satellite imagery (see below) shows that 115 hectares of forest were degraded in the concession from March 9 to early June 2018.

 

 

 

Alert Overview: 

 

Alert Imagery (before and after satellite images): 

 

Ownership Information: 

Agriprima Cipta Persada is linked to GAMA Group. PT ACP is 95% owned by PT Perkebunan Prima Manunggal (PPM), whose commissionner is Mr. Andy Indigo (Ganda’s son) and director is Riadi Dikik Djahjanto. PT PPM is ultimately owned by Fullest Holdings Ltd, Silvery LTD and Rise Glory Interprises, all registered in the British Virgin Islands. The 5% remaining are owned by PT Karya Agung Megah Utama (KAMU), controlled by Ganda and Jacqueline Sitorus whom hold 68% and 32% of the shares respectively, while Andy Indigo is Director.

 

Supply Chain Information: 

The main direct and indirect buyers of GAMA Group are AAK, Bunge Loders Croklaan, General Mills, Wilmar, IOI, Kellog’s, Mars, Mondelez, Nestlé, Unilever, P&G, Pepsico, Olam, ADM, Reckitt Benckiser and Cargill (based on information available on companies’ sustainability dashboards).

Colgate, Nestlé, Mondelez, Olam and Unilever also buy from Gama Group via one or more companies listed in the table.

Condong Garut

 

 

Concession Information: PT Condong Garut is located in West Kalimantan province. Base on permit location, the concession covers an area of 13,352 hectares. (Long 109°17’49.76″E, 0°17’31.81″N)

 

 

 

Deforestation: Satellite imagery (see below) shows that 198 hectares of peat forest were cleared in the concession from March 17, 2018 to May 21, 2018.

 

 

 

Alert Overview: 

 

Alert Imagery (before and after satellite images): 

 

Ownership Information: 

PT Condong Garut is an oil palm plantation managed by JA Wattie & Co.

 

Supply Chain Information: 

PT Condong Garut supplies to Bunge Loders Croklaan. Mondelez and Nestlé also purchase from PT Condong Garut via Bunge. Sinar Mas Agro Resources is the main buyer of JA Wattie & Co., according to JA Wattie & Co.’s 2017 annual report.