Mighty Earth Rapid Response Report 9

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Indonesian companies:

PT Ketapang Hijau Lestari, PT Kruing Lestari Jaya, PT Sawit Mandiri Lestari, PT Berau Karetindo Lestari, PT Subur Karunia Raya, PT Harapan Rimba Jaya, PT Rayatama Jaya, PT Anekareksa International, PT Palmakharima Sekawan, PT Senabangun Aneka Pertiwi, PT Kartika Cipta Pratama, PT Persada Era Agro Kencana, and PT Temila Agro Abadi

October 2018

Prepared with support from Aidenvironment and MapHubs

 


PT Ketapang Hijau Lestari

 

Concession Information: PT Ketapang Hijau Lestari is located in East Kalimantan province. The concession covers an area of 12,357 hectares. (Long 115° 30′ 49′′ E, Lat 0° 35′ 38′′ S)

 

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between July 25 and September 22, 2018, a total of 250 hectares of forest were cleared in the PT Ketapang Hijau Lestari concession. (Imagery © 2018 Planet Labs Inc).

Ownership Information: 

Group: Fangiono Agro Plantation group

PT Ketapang Hijau Lestari is part of the Fangiono Agro Plantation group, which is owned by Prinsep Management Limited (95%), located in the British Virgin Islands, and PT Fangiono Perkasasejati (5%).

Supply Chain Information: 


PT Kruing Lestari Jaya

Concession Information: PT Kruing Lestari Jaya is located in East Kalimantan province. The concession covers an area of 9,013 hectares. (Long 115° 35′ 19′′ E, Lat 0° 36′ 50′′ S)

 

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between July 25 and September 22, 2018, a total of 184 hectares of forest were cleared in the PT Kruing Lestari Jaya concession. (Imagery © 2018 Planet Labs Inc).

Ownership Information: 

Group: Tsani Hutani Abadi Group

PT Kruing Lestari Jaya is a subsidiary of Tsani Hutani Abadi, ultimately owned by Centrino Investment Ltd, registered in Labuan Island (Malaysia). The Tsani Hutani Abadi Group also owns two other plantation companies in Kutai Barat, PT Rayatama Jaya and PT Harapan Rimba Jaya. Mulyawan Tjandra is Tsani Hutani Abadi’s President Director, who is an ex-Executive Director of Indo Agri Resources.

Supply Chain Information:


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 hectares4. (Long 111°10’42.9″E, Lat 1°52’57.3″S)

 

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between September 14 and October 10, 2018, a total of 111 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 Jaya5.

Supply Chain Information: 

No supply chain information available.


PT Berau Karetindo Lestari

Concession Information: PT Berau Karetindo Lestari is located in East Kalimantan, Berau district. Based on the 2016 IUP permit, the concession covers an area of 7,141 hectares6. (Long 115° 35′ 19′′ E, Lat 0° 36′ 50′′ S)

 

 

 

Peat Development:

Satellite imagery (see below) shows that between July 6 and October 14, 2018, a total of 147 hectares of forest were cleared in the PT Berau Karetindo Lestari concession. (Imagery © 2018 Planet Labs Inc).

Ownership Information: 

Family ownership : Korompis family

PT Berau Karetindo Lestari is ultimately owned by the Korompis family and by Peak Capital Pte Ltd, a Singapore-based holding company owned by Flamire Holdings Limited (registered in the British Virgin Islands). PT Berau Karetindo Lestari Commissioner Daniel Wewengkang Korompis and Director Didi Ferdinand Korompis are listed in the ‘Panama Papers’ for their registered assets in the British Virgin Islands.

Supply Chain Information:
No supply chain information available.

 


PT Subur Karunia Raya

Concession Information: PT Subur Karunia Raya is located in Papua Province, Teluk Bintuni district. Based on the 2015 IUP permit, the concession covers an area of 40,883 hectares8. (Long 133° 00′ 32′′ E, Lat 1° 52′ 50′′ S)

 

 

 

Deforestation: 

Satellite imagery (see below) shows that for the period between June 22 and October 10, 2018, a total of 356 hectares of forest were cleared in the PT Subur Karunia Raya concession. (Imagery © 2018 Planet Labs Inc).

Ownership Information: 

Family ownership – Tuan Junus Sutiono and Tuan Watson Dharma

PT Subur Karunia Raya is 99.6% owned by PT Mulia Abadi Lestari, controlled by Tuan Junus Sutiono and Tuan Watson Dharma. PT Mulia Abadi Lestari owns 29.1% shares in PT Duta Rendra Mulya, a plantation company majority owned by Anthoni Salim (CEO and President of the Salim Group).

Supply Chain Information: 

No supply chain information available.


PT Harapan Rimba Jaya

Concession Information:  PT Harapan Rimba Jaya is located in East Kalimantan, Kutai Barat district. Based on the 2016 IUP permit, the concession covers an area of 11,717 hectares9. (Long 115° 33′ 34′′ E, Lat 0° 37′ 50′′ S).

 

 

Deforestation: 

Satellite imagery (see below) shows that between July 25 to September 22, 2018, a total of 89 hectares of forest were cleared in the PT Harapan Rimba Jaya concession. (Imagery © 2018 Planet Labs Inc).

Ownership Information: 

Group: Tsani Hutani Abadi group

PT Harapan Rimba Jaya and PT Rayatama 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 ex-Executive Director of Indo Agri Resources.

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. (Long 115°28’32.55″E, Lat 0°35’16.42″S)

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between July 16 and October 16, 2018, a total of 64 hectares of forest were cleared in the PT Rimba Karya Rayatama concession. (Imagery © 2018 Planet Labs Inc).

Ownership Information: 

Group: Tsani Hutani Abadi group

PT Harapan Rimba Jaya and PT Rayatama 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 ex-Executive Director of Indo Agri Resources.

Supply Chain Information: 


PT Anekareksa International

Concession Information: PT Anekareksa International is located in East Kalimantan Province, Kutai Barat district. The concession covers an area of 7,171 hectares11. (Long 115° 47′ 45′′ E, Lat 0° 30′ 29′′ S ).

 

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between July 19 and October 3, 2018, a total of 56 hectares of forest were cleared in the PT Anekareksa International concession. (Imagery © 2018 Planet Labs Inc).

Ownership Information: 

Family ownership – Tuan Junus Sutiono and Tuan Dedy Mulyadi

PT Anekareksa International is owned by Mr. Junus Sutiono (40%) and Mr. Dedy Mulyadi (60%). Mr. Junus Sutiono and Dedy Mulyadi own PT Anekareksa International through PT Mulia Abadi Lestari and PT Inovasi Cemerlang. PT Mulia Abadi Lestari owns 29.1% shares in PT Duta Rendra Mulya, a plantation company majority owned by Anthoni Salim (CEO and President of the Salim Group).

Supply Chain Information: 

No supply chain information available.


PT Palmakharisma Sekawan

Concession Information: PT Palmakharisma Sekawan is located in East Kalimantan Province, Kutai Barat district. The concession covers an area of 36,476 hectares13. (Long 115° 48′ 29′′ E, Lat 0° 30′ 50′′ S).

 

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between July 25 and September 16, 2018, a total of 634 hectares of forest were cleared in the PT Palmakharisma Sekawan concession. (Imagery © 2018 Planet Labs Inc).

Ownership Information: 

No ownership information available.

Supply Chain Information:

No supply chain information available.


PT Senabangun Aneka Pertiwi

Concession Information: PT Senabangun Aneka Pertiwi is located in East Kalimantan Province, Paser district. The concession covers an area of 20,011 hectares14. (Long 116° 14′ 04′′ E, Lat 2° 14′ 13′′ S).

 

 

Deforestation: 

Satellite imagery (see below) shows that between July 15 and September 28, 2018, a total of 184 hectares of forest were cleared in the PT Senabangun Aneka Pertiwi concession. (Imagery © 2018 Planet Labs Inc).

Ownership Information:

Group: Jhonlin group

PT Senabangun Aneka Pertiwi is owned by PT Citra Agro Raya and Araya Agro Lestari, which are in turn owned by the daughter and son of Haji Syamsudin Andi Arsyad (Haji Isam), Liana Saputri and Jhony Saputra. Haji Isam is the ultimate owner of the Jhonlin group. 15

Supply Chain Information: 


PT Kartika Cipta Pratama

Concession Information: PT Kartika Cipta Pratama is located in Boven Digoel Regency, Papua. The concession covers an area of 40,882 hectares16. (Long 140°12’31.6″E, Lat 6°20’26.6″S)

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between August 13 and October 8, 2018, a total of 781 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 a 80% stake in 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 included 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 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 of the HSA Group. The documents 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-ink’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 disappeared from PT Kartika Cipta Pratama’s notary acts.

However, June 5, 2018 notary acts show no 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 they include some notable individuals in Indonesian politics and business. Mr. Alwi Abdurrahman Shihab, former Foreign Minister of the Indonesian government, has become the president commissioner of PT MJR. 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 MJR in June 2018. Until April 2018, he worked for Sime Darby. Alwi Abdurrahman Shihab is 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, 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 RSPO members.17

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 2012.18 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 – ie Tulen Jayamas Sdn Bhd. Mr. Salah Ahmed Hayel Saeed and Mr. Fouad Hayel Saeed Anam are directors in 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 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 hectares20. (Long 113° 17′ 02′′ E, Lat 2° 34′ 09′′ S).

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between August 27 and September 25, 2018, a total of 129 hectares of peat forest was cleared in the PT Persada Era Agro Kencana concession. (Imagery © 2018 Planet Labs Inc).

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 Yennatha, also known as Andre, also serves as the first Director in PT Bangun Jaya Alam Permai under the Best Plantation Group.

Supply Chain Information: 


PT Temila Agro Abadi

Concession Information: PT Temila Agro Abadi is located in West Kalimantan Province, Landak district. The concession covers an area of 8,201 hectares21. (Long 109° 37′ 20′′ E, Lat 0° 02′ 48′′ N).

 

 

 

Deforestation: 

Satellite imagery (see below) shows that between August 19 and September 23, 2018, a total of 84 hectares of peat was burnt on the PT Temila Agro Abadi concession. (Imagery © 2018 Planet Labs Inc). It is unclear at this time whether the three separate areas that were burnt, were intentionally burnt with the purpose of developing oil palm plantations. Traders sourcing from Felda Global Ventures should investigate this issue, as the use of fire in plantation development is illegal under Indonesian law.

Ownership Information: 

Group: Felda Global Ventures Holding Bhd

PT Temila Agro Abadi (PT TAA) is a subsidiary of Felda Global Ventures Holding Bhd (FGV). The business core of FGV is concentrated in Malaysia and Indonesia. Datuk Wira Azhar Abdul Hamid is Chairman, Non- Independent Non-Executive Director of FGV. He also known serve as Chairman MSM Malaysia Holdings Berhad22.

Supply Chain Information:


Sources for supply chain information:

Supply chain information included in Rapid Response reports 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].