Mighty Earth Rapid Response Report 7

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Indonesian companies:

PT Internusa Jaya Sejahtera, PT Kusuma Alam Sari, PT Palem Segar Lestari, PT Sawit Mandiri Lestari, and PT Kartika Cipta Pratama

Malaysian company:

BLD Plantation

August 2018 

Prepared with support from Aidenvironment and MapHubs


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 hectares1. (Long 140°48’22.6″E, Lat 7°19’30.0″S

 

 

Deforestation:

Satellite imagery (see below) shows that between March 9 to July 28, 2018, a total of 502 hectares of forest were cleared and 168 hectares opened through stacking lines in PT Internusa Jaya Sejahtera concession (Imagery © 2017 Planet imagery Basemap, 2018 Sentinel 2 & Landsat 8)

Ownership Information: 

Group: Indonusa Agromulia/Indonusa Group

PT Internusa Jaya Sejahtera is owned by Rosna Tjuatja (99.87%), who controls Indonusa Agromulia – commonly known as Indonusa Group. Rosna Tjuatja sits as commissioner in Indonusa Agromulia.

Supply Chain Information: 

 

 

 

 

 

 


PT Kusuma Alam Sari

 

 

 

Concession Information: PT Kusuma Alam Sari is located in Kubu Raya Regency, West Kalimantan. The concession covers an area of 12,860 hectares. (Long 109°49’17.9″E, Lat 0°11’15.0″S)

 

Deforestation: 

Satellite imagery (see below) shows that between May 6 to August 12, 2018, a total of 129 hectares of peat forest were cleared in PT Kusuma Alam Sari concession (Imagery © 2018 Planet Labs Inc.)

Owner Information: 

Group: Alas Kusuma Group

PT Kusuma Alam Sari is part of Alas Kusuma Group. Mr. Jacub Husin is the President Director of Alas Kusuma Group and Mr. Budijuwono Hanjaja is the Vice President.

Supply Chain Information: 

No supply chain information available.


PT Palem Segar Lestari

 

 

 

Concession Information: PT Palem Segar Lestari is located in Nunukan Regency, East Kalimantan. The concession covers an area of 12,582 hectares. (Long 117°36’41.9″E, Lat 3°51’02.0″S)

 

 

 

Peat development: 

Satellite imagery (see below) shows that between June 14 to August 9, 2018, a total of 91 hectares of peat were developed in PT Palem Segar Lestari concession (Imagery © 2018 Planet Labs Inc.)

Ownership Information:

Group: Henan Jiujiu Chemical Co. Ltd.

PT Palem Segar Lestari is owned by Henan Jiujiu Chemical Co. Ltd (90%) and by PT Citra Makmur Sentosa (10%). 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 Lestari6. He is also the Director of PT Sebaung Sawit Plantation, also located in North Kalimantan.

Supply Chain Information: 

No supply chain information available.


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 May 22 to August 2, 2018 (Site A) and between May 22 to August 13, 2018 (Site B), a total of 761 hectares of forest were cleared in 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 Jaya8.

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

 

 

Deforestation: 

Satellite imagery (see below) shows that between May 30 to August 13, 2018, a total of 828 hectares of forest were cleared in 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 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 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 their President Commissioner on their Notary Acts. Fouad Hayel Saeed is the 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 in 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. Dr. 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 Nestlé10, however both companies have suspended trade with the company due to concerns over its involvement in deforestation. Unilever has suspended Pacific Inter-link from placement of new orders but Pacific Inter-link is still supplying Unilever until current binding contracts run out. 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.


BLD Plantation

 

 

Concession Information:  BLD Plantation Bhd is located in Sarawak, Malaysia. The concession 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 between July 9 to August 26, 2018, a total of 836 hectares of peat forest were cleared in the BLD Plantation concession (Imagery © 2018 Planet Labs Inc)

Ownership Information: 

Group: BLD Plantation Bhd

BLD Plantation Bhd is part of a group of companies 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)12.

Supply Chain Information: 


Sources for supply chain information: 

The 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]