Mighty Earth Rapid Response Report 5

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Indonesian companies:  PT Palem Segar Lestari, PT Megakarya Jaya Raya, PT Kartika Cipta Pratama, PT Krida Dharma Kahuripan, PT Kapuasindo Palm Industry, PT Rimba Karya Rayatama, PT Harapan Rimba Jaya, PT Persada Kencana Prima

Malaysian company:  BLD Plantation Bhd

 

June 2018

Prepared with support from Aidenvironment and MapHubs

PT Palem Segar Lestari


 

Concession Information: PT Palem Segar Lestari is located in North Kalimantan. The concession covers 12,582 hectares. (Long 117°36’41.9″E, Lat 3°51’02.1″N)

 

 

Deforestation: Satellite imagery (see below) shows that between April 7 to June 14, 2018, a total of 143 hectares of peatland forest were cleared in the PT Palem Segar Lestari concession.

 

 

 

 

Alert Overview: 

Alert Imagery (before and after satellite images): 

 

Ownership Information: 

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 Lestari. He is also the Director of PT Sebaung Sawit Plantation, also located in North Kalimantan.

Supply Chain Information: 

No information available

PT Megakarya Jaya Raya



 

Concession Information: PT Megakarya Jaya Raya is located in Papua province. The concession covers 39,424 hectares. (Long 140°17’03.5″E, Lat 6°24’54.3″S)

 

Deforestation: Since January 2014, over 4,000 hectares of forest were cleared in PT Megakarya Jaya Raya. Satellite imagery (see below) shows that for the period March 31 to May 30, 2018,a total of 31 hectares of forest were cleared in the PT Megakarya Jaya Raya concession.

 

 

 

 

Alert Overview: 

 

Alert Imagery (before and after satellite images): 

 

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 each purchased an 80% stake in each of these four companies 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 of the concessions included in the Tanah Merah project in Boven Digoel Regency. These concessions in the Tanah Merah area cover a combined 155,330 hectares. Since January 2014, around 5,000 hectares of forest has 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 their President Commissioner on their Notary Acts; Fouad Hayel Saeed is HSA Group’s subsidiary Pacific Inter Link’s Managing Director & the Regional Director-Malaysia for HSA Group. The Acts also listed Salah Ahmed Hayel Saeed as the Commissioner of PT Energi Samudera Kencana & PT Megakarya Jaya Raya and the President Director of PT Graha Kencana Mulia & PT Kartika Cipta Pratama; Hayel Saeed is the 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 the President Director of PT Kartika Cipta Pratama. Nakul Rastogi also disappears from PT Kartika Cipta Pratama’s Notary Acts.

However, the June 5, 2018 Notary Acts show that there is no change is the shareholders of PT Megakarya Jaya Raya, PT Kartika Cipta Pratama, PT Graha Kencana Mulia and PT Energi Samudera Kencana. 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 they include some notable individuals in Indonesian politics and business. Mr. Alwi Abdurrahman Shihab has become the president commissioner of PT MJR. He is a former Foreign Minister of Indonesia. Drs. Tommy Sagiman is now the commissioner of PT KCP. He is an ex-Inspector General of the police. Nata Singh Gurdev Singh became director of PT MJR 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 conglomerates 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, its Chairman and CEO.

The HSA Group is involved in the palm oil industry through its subsidiaries PT Pacific Palmindo Industri, PT Pacific Medan Industry, PT Pacific Indomas, PT Pacific Indopalm Industries, Pacific Oil & Fats Industries and Pacific Inter-Link, which are all members of the RSPO.

 

Supply Chain Information: 

Pacific Inter-Link used to trade with IOI and Nestlé, however both companies have suspended trade with the company due to concerns over its involvement in deforestation. It is unclear where Pacific Inter-Link now sells its palm oil, but being a Middle Eastern company, it most likely has an alternative market in this region and in East Africa.

PT Kartika Cipta Pratama


 

 

Concession Information: PT Kartika Cipta Pratama is located in Papua province. The concession covers 41,257 hectares. (Long140°16’20.3″E,Lat 6°21’50.1″S)

 

 

Deforestation: Satellite imagery (see below) 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.

 

 

Alert Overview:

 

Alert Imagery (before and after satellite images): 

Ownership Information: 

PT Megakarya Jaya Raya and PT Kartika Cipta Pratama are believed to be affiliated with the Yemen-based HSA Group through its subsidiary Pacific Inter-link. (See ownership information section under PT Megakarya Jaya Raya for full details).

 

Supply Chain Information: 

Pacific Inter-Link used to trade with IOI and Nestlé, however both companies have suspended trade with the company due to concerns over its involvement in deforestation. It is unclear where Pacific Inter-Link now sells its palm oil, but being a Middle Eastern company, it most likely has an alternative market in this region and in East Africa.

PT Krida Dharma Kahuripan



 

Concession Information: PT Krida Dharma Kahuripan is located in Katingan Regency, Central Kalimantan. The concession covers 13,399 hectares. (Long 113°20’10.47″E, Lat 1°36’14.17″N)

 

 

 

Deforestation: Satellite imagery (see below) shows that from the period March 12 to June 06, 2018, a total of 147 hectares of forest were cleared in the PT Krida Dharma Kahuripan concession.

 

 

 

 

Alert Overview: 

 

Alert Imagery (before and after satellite images): 

 

Ownership Information: 

PT Krida Dharma Kahuripan is a subsidiary of Matahari Kahuripan Lestari (Makin). Matahari Kahuripan Lestari is owned by Mr. Susilo Wonowidjojo and his family.

 

Supply Chain Information: 

Unilever, Nestlé, PepsiCo and Procter & Gamble are also purchasing from Makin via some of the customers mentioned in the table.

PT Kapuasindo Palm Industry



 

Concession Information: PT Kapuasindo Palm Industry is located in Kapuas Hulu Regency, West Kalimantan. The concession covers 19,233 hectares. (Long 111°51’58.78″E, Lat 0°42’15.90″N)

 

 

Deforestation: Satellite imagery (see below) shows that for the period April 22 to June 22, 2018, a total of 59 hectares of forest were cleared in the concession PT Kapuasindo Palm Industry, including 26 hectares of peatland forest.

 

 

Alert Overview: 

 

Alert Imagery (before and after satellite images):

 

Ownership Information: 

PT Kapuasindo Palm Industry belongs to 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. They all share the same President Director Johanes Ibrahim Tjendana, the same Director Juliana Lukmin and the same President Commissioner Ricky Surjana.

 

Supply Chain Information:

PT Rayatama Jaya (Ex. PT Rimba Karya Rayatama)



 

Concession Information: PT Rayatama Jaya is located in Kutai Barat district, East Kalimantan. Based on the 2016 IUP permit, the concession covers 3,912 hectares. Latitude: -0.598296 Longitude: 115.462580

 

 

Deforestation: PT Rayatama Jaya was featured in the Rapid Response Report 2, which showed that for the period March to November 2017 a total of 240 hectares of forest were cleared in the concession. Satellite imagery (see below) shows that for the period April 29 to June 22, 2018, a total of 48 hectares of forest were cleared in the PT Rayatama Jaya concession.

 

Alert Overview:

 

Alert Imagery (before and after satellite images):

 

 

Ownership Information: 

PT Rayatama Jaya and PT Harapan Rimba Jaya (also featured in this report) are both subsidiaries of Tsani Hutani Abadi Group, ultimately owned by Centrino Investment Ltd, registered in Labuan Island (Malaysia). The Tsani Hutani Abadi Group also owns another plantation company in Kutai Barat, PT Kruing Lestari Jaya. Mulyawan Tjandra is Tsani Hutani Abadi’s President Director, who is an ex-Executive Director of Indo Agri Resources.

 

Supply Chain Information:

PT Harapan Rimba Jaya



 

Concession Information: PT Harapan Rimba Jaya is located in Kutai Barat district, East Kalimantan. Based on the 2016 IUP permit the concession covers 11,717 hectares. Latitude: -0.663915 Longitude: 115.524881

 

 

Deforestation:PT Harapan Rimba Jaya was featured in Rapid Response Report 2; from March to November 2017, 707 hectares of forest were cleared. Satellite imagery (see below) shows that for the period April 29 to June 22, 2018, a total of 82 hectares of forest were cleared in the PT Harapan Rimba Jaya concession.

 

Alert Overview: 

 

Alert Imagery (before and after satellite images): 

 

Ownership Information: 

PT Rayatama Jaya and PT Harapan Rimba Jaya are both subsidiaries of the Tsani Hutani Abadi Group, ultimately owned by Centrino Investment Ltd, registered in Labuan Island (Malaysia). (See ownership information section under PT Rayatama Jaya for full details).

 

Supply Chain Information: 

 

PT Persada Kencana Prima



 

Concession Information: PT Persada Kencana Prima is located in North Kalimantan. The concession covers 15,531 hectares. (Long 117°06’07.2″E, Lat 3°42’46.6″N)

 

 

Deforestation: Between January 2015 and July 2017, PT Persada Kencana Prima cleared and developed a total of 3,708 ha of peatland forest and non-forested peatland. Since February 2017, almost 4,000 hectares of peatland forest have been prepared for further land clearing (stacking lines) leaving only 680 hectares of peatland forest untouched. Between April 7 to June 20, 2018, a total of 217 hectares of peatland forest were cleared.

 

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Alert Imagery (before and after satellite images):

 

Ownership Information: 

PT Persada Kencana Prima (PT PKP) is a subsidiary of Tabung Haji Plantations, which operates six palm oil mills owns 33 oil palm plantations in Indonesia and Malaysia that has a total landbank of 86,211 hectares.

 

Supply Chain Information: 

* Held via TH Felda Nusantara (Trurich Resources Sdn Bhd), a 50/50% Joint Venture between Felda Global Ventures and Lembaga Tabung Haji for operations in Indonesia.

Nestlé, Mars, General Mills, Unilever, Colgate, Mondelez, P&G, and Reckitt Benckiser source

BLD Plantation Bhd



 

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

 

Deforestation:Satellite imagery (see below) shows that for the period May 22 to June 23, 2018, a total of 221 hectares of peatland forest were cleared and an additional 171 hectares of non-forested peatland was developed in the BLD Plantation Bhd concession (392 ha in total). This concession was featured in the Rapid Response Report 4: between March to May 2018 a total of 904 hectares of forest were cleared. For the period September 2017 to June 2018, more than 1,500 hectares of peatland forest and non-forested peatland were cleared or developed in the BLD Plantation Bhd concession.

 

 

Alert Overview: 

 

Alert Imagery (before and after satellite images): 

 

Ownership Information: 

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 Honorary Secretary of the Sarawak Timber Association (STA).

 

Supply Chain Information: