GRIEVANCE REDRESSAL
Grievance Redressal List
NO. | PARENT COMPANY | COMPANY | DATE RECEIVED | SUBJECT MATTER | STAKEHOLDER(S) | PROGRESS | STATUS |
---|---|---|---|---|---|---|---|
1 | Agro Sarimas Group | PT Agro Sarimas Indonesia | Dec-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 22 |
Indirect suppliers. KLK representatives engaged with trading partners in Dec 2019. Trading partner had engaged with Agro Sarimas. PT Agro Sarimas Indonesia (“PT ASI”) stated it no longer had plan to open or develop land. Location of the alleged deforestation was outside PT ASI concession and according to PT ASI it was a fire incident. | Case closed |
2 | Agrosubur Group | PT Karya Dewi Putra | Jan-20 | Alleged clearance of forest and preparation for clearing/stacking lines | Mighty Earth Rapid Response 24 |
Indirect supplier. KLK representatives engaged with trading partner in Feb 2020. Trading partner has engaged with Agrosubur Group for clarification.
Trading partner informed KLK that PT KDP has no land clearing activities. Based on Agrosubur’s internal investigation, they found that: Trading partner had a meeting with PT KDP and they have shown the evidences including the overlay map, the police report and photos of the encroachment by the local people. |
Case closed |
3 | Amanah Saham Pahang & YP Plantation Holdings Sdn Bhd | Mentiga Corporation Bhd (area A)
Mentiga Corporation Bhd (area B) Berabong Estate YP Plantation Sdn Bhd |
Aug-20 | Alleged clearance of forest, peat development, and land clearance preparation. | Mighty Earth Rapid Response 30 |
Indirect suppliers. KLK representatives engaged with trading partners in Aug 2020.
1. Amanah Saham Pahang (ASPA): • Trading partner informed that their third-party trader is still in the process of investigating and engaging with ASPA. The preliminary investigation of their third-party trader reveals that Berabong estate, which belongs to ASPA has been fully developed into oil palm estate. After the engagement with ASPA was carried out, ASPA has agreed to adopt an NDPE policy and at the same time issued a moratorium on new clearing. They have also committed to upload the NDPE policy on their website in due course. • As for Mentiga Corp, investigation and engagement is still on-going with their management by trading partner’s third-party trader. Update will be provided once it is made available. 2. Yayasan Pahang Plantation (YP Plantation) • Through trading partner’s direct engagement with YP Plantation with regards to the alleged peat development in their Gugusan Bebar concession, YP Plantation clarified that they have received approval from the local authorities and have fully adhered to the state regulations before developing the said area. Environmental Impact Assessment (EIA) was conducted before the commencement of the development and YP Plantation received approval from Department of Environment to proceed. • YP Plantation explained that as they are committed towards sustainable production of oil palm, the Board of YP Plantation Sdn Bhd had on 17th August 2020 issued a stop work order on the development of peat in the Gugusan Bebar concession in Pekan Pahang covering 4,093.95 hectare. The Board has also approved the implementation of an NDPE policy on all plantation owned by YP Plantation Sdn Bhd. • Trading partner will continue to monitor the progress and engage with YP Plantation. YP’s Sustainable Palm Oil Policy dated 18th August 2020 is shared with KLK. |
Case in progress |
4 | Anglo Eastern Plantations | PT Kahayan Agro Plantation | Nov-17 | Alleged deforestation, land conflict, licensing issues and sourcing of non-compliant palm products. | Mighty Earth Rapid Response 24 |
Representatives from KLK engaged with those from Anglo Eastern Plantations (“AEP”) on 17 April 2018. The former reiterated its Sustainability Policy and sought clarification on the allegations. AEP is committed to conduct HCS assessment using HCS Approach methodology for all new development area. There is no plan to have new expansion in peat land area. For existing plantations in peat, the company will adopt best management practice. On 18 May 2018, AEP updated its commitment towards Environmental and Corporate Responsibility which include a statement of no planting of primary forest which is now published on its corporate website. KLK representatives has engaged with AEP on 26 June 2019. AEP representative shared that AEP has just released the Sustainability Policy on 15 June 2019. They informed that PT KAP has completed the HCS assessment and the report has submitted to HCSA for peer review process. They confirmed that all land clearing activities have been suspended since 3 June 2019 while waiting for the outcome of the peer review process by HCSA. | Case closed |
4 | Anglo Eastern Plantations | PT Kahayan Agro Plantation | Mar-20 | Alleged clearance of forest. | Mighty Earth Rapid Response 25 |
AEP representative informed that the HCS peer review process has been completed and approved in December 2019. However, a complaint was lodged by Mighty Earth in January 2020 on the approved HCS report, HCSA has then decided to change the classification of an area from Medium Priority Patch to High Priority Patch. AEP informed that they are appealing to HCSA on the decision made.
From the peer review –II HCSA, the results stated that AEP has agreed to conserve the KAP plasma area as a High Priority Patch (HPP), the plasma area is 150 ha. According to the AEP representative, this decision had discussed with HCSA and Mighty Earth. For more information, PT. KAP has sent a Public Response letter regarding the commitment to conserve the HPP area in the KAP plasma location which has been published on the following website: |
Case closed |
5 | Astra International Tbk | PT Agincourt Resources Tbk | May-21
Oct-21 |
Alleged clearance of HCV habitat for orangutan. | Mighty Earth Rapid Response 33 Mighty Earth |
KLK representatives engaged with Astra Agro Lestari (“AAL”) in May 2021.
AAL commented that PT AAL and PT Agincourt Resources are two different companies operating within two different kinds of industries and are under different legal entities. Each legal entity maintains their own independence in running its operations in accordance with the applicable Law of Indonesia No. 20/2007 concerning Limited Liability Company. PT Agincourt Resources is a gold mining company of Astra group. The land clearing alleged is not related to oil palm development. |
Case closed |
6 | Astra Agro Lestari | PT. Nirmala Agro Lestari | Oct-21 | Alleged clearance of forest. | L’oreal | KLK representatives engaged with Astra Agro Lestari (“AAL”) in Oct 2021.
Based on the allegation, AAL commented that they have carried out spatial and field verification and they confirmed that the deforestation occurred is outside PT. Nirmala Agro Lestari (PT NAL’s) concession. Indeed, there was a land clearing activity at the location indicated on the map/reference coordinates which is owned by local community. Current conditions in the field indicated that the cleared land is planted with agricultural crops. The spatial analysis data and land condition documentation are shared with KLK. |
Case closed |
6(a) | Astra Agro Lestari (“AAL”) | a) PT Mamuang b) PT Lestari Tani Teladan (“LTT”) c) PT Agro Nusa Abadi (“ANA”) |
Apr-22 | Alleged non-compliance with regards to land rights and NDPE | – Friends of the Earth (“FoE”) – Wahana Lingkungan Hidup Indonesia (“WALHI”) |
KLK does not source from the three alleged companies. However, KLK sources from AAL at the group level.
KLK representatives engaged directly with AAL on the alleged matters. AAL has reported to KLK that its subsidiaries – PT Mamuang (“Mamuang”), PT Lestari Tani Teladan (“LTT”) and PT Agro Nusa Abadi (“ANA”) have always operated in accordance with the laws in Indonesia and hold all the necessary permits to conduct their businesses and operations. None of these companies is involved in any illegal land acquisitions. AAL is fully aligned on its Human Rights strategy with the United Nations Guiding Principles on Business and Human Rights, which has been implemented across the company’s entire operations and supply chain. According to AAL, PT LTT has received its HGU Certificate in 2002 and none of the HGU Certificate referred in the FoE Report (page 11) are related to PT LTT. On the other hand, PT LTT routinely evaluates air and water quality to ensure its operations do not impact or pollute the surrounding environment, as mandated by government regulations. KLK will continue our engagements with AAL on this matter to determine the next course of action. Updated Feb 2023: KLK had a follow-up engagement with AAL on 10 February 2023. AAL indicated that they have published a statement on 7 December 2022 in response to the Friends of the Earth (FoE)/WALHI and Econusantara (ENS) reports. AAL will work with an independent third party (or parties) to review the allegations in these reports including all matters arising from them. The findings will be published, and necessary actions will be set out to address them. Further details on the above are available here. (AAL Statement on FoE and ENS Reports published on 7 December 2022) KLK will continue to monitor this case and engage with AAL for updates on this matter. Updated Apr 2023: AAL has appointed a 3rd party consultant – EcoNusantara to conduct verification on the above-mentioned allegations. |
Case in progress |
7 | Bakrie Group | PT Menthobi Mitra Lestari | Jun-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 16 |
Indirect suppliers. Bakrie management informed trading partners that PT Menthobi Mitra Lestari (“MML”) is no longer part of Bakrie Group since Nov 9 2017. Bakrie Sumatera Plantation (“BSP”) shared relevant documents i.e. Notary Acts of shares divestment dated 9 November 2017 and PT Bakrie Sumatera Plantations Tbk issued a public statement stating “PT Menthobi Mitra Lestari is no longer a part of PT Bakrie Sumatera Plantations Tbk or Bakrie Group since 2017” in its website. |
Case closed |
8 | BBC Holdings Sdn Bhd | AlamBumi Plantation Sdn Bhd | Sep-19 | Alleged clearance of forest and new clearance. | Mighty Earth Rapid Response 19 Rapid Response 21 |
Trading partner informed that they had scheduled a meeting with Alambumi in October 2019 as part of their supplier engagement program. From the information available and their desktop study, the reported 6ha of deforestation by Mighty Earth is not located within Alambumi’s concession area. | Case closed |
9 | Bewani Oil Palm Plantations | Sep-18 | Alleged clearance of forest, licensing issues and land conflict. | Greenpeace / Mighty Earth Final Countdown |
KLK representatives engaged with Prosper Group in September 2018 and subsequently several engagements in December 2018 and 2019 where KLK highlighted its revised Sustainability Policy and sought clarification on the allegations. Prosper Group informed that a Sustainable Palm Oil Policy has developed and implemented since 1 October 2018. As for the Bewani Oil Palm Project in PNG, they confirmed that the shareholdings of 10 Tee individual shareholders have divested from this project and the process has been completed on 5th March 2019.
KLK representatives engaged with Prosper Group in March and May 2020 where Prosper Group provided the latest update in addressing the grievance case. Below are the latest update provided by Prosper Group: |
Case closed | |
10 | Borneo Pacific Group | PT Arjuna Utama Sawit | Apr-19
Aug-19 Jan-20 |
Alleged clearance of forest. | Mighty Earth Rapid Response 14 Mighty Earth Mighty Earth |
Indirect supplier. KLK representatives engaged with trading partner in Apr 2019. Trader has stopped purchases from Borneo Pacific Group since Oct 2018. | Case closed |
11 | Bukit Asam | PT Bumi Sawindo Permai | Aug-21 | Alleged clearance of forest. | Mighty Earth Rapid Response 35 |
Indirect suppliers. KLK representatives engaged with trading partners in Aug 2021.
Trading partner informed that they are connected to the organizations via indirect supply chain. The supplier of trading partner has engaged PT Bumi Sawindo Permai regarding the allegation of deforestation and commenced investigation. Trading partner will follow up with its supplier for updates on the outcome of their investigation and verification of the alleged deforestation. |
Case in progress |
12 | Bukit Berlian Plantation Group | PT Ginang Fohu Plantation | Jul-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 17 |
Indirect suppliers.
Bukit Berlian Plantation Group informed trading partner that the 5 Ha land clearing was not conducted by the company. In fact, the land was illegally encroached and cleared by the communities. Bukit Berlian Plantation Group has already adopted NDPE policy where all their land clearing activities shall be guided by the outcome of HCS/HCV activities. |
Case closed |
13 | Bumitama Group | PT Damai Agro Sejahtera | Dec-19 | Alleged clearance of peat forest. | Mighty Earth Rapid Response 22 |
Indirect suppliers. KLK representatives engaged with trading partners in Dec 2019. Trading partners had engaged with Bumitama. Bumitama explained that the areas located under the concession of PT Damai Agro Sejahtera (“DAS”) were not cleared but impacted by forest fires that struck the landscape of Sungai Putri forest during the peak of the dry season in September 2019. While the change in vegetation colour from the satellite imagery may seem as a result of land-clearing, the ground-truthing check identified varied extent of damage, from apparently un-impacted to scorched and burned vegetation. Bumitama is conducting internal investigation to identify the causes and prevent repeated occurrences of fires in its areas in the future, especially in conservation areas where habitats of endangered species and Borneo’s unique biodiversity are at risk. As majority of the burn scarred areas falls under designated conservation zones, these will be rehabilitated in partnership with local community and expert organisations. | Case closed |
13 | Bumitama Group | PT Andalan Sukses Makmur | Jan-20 | Alleged clearance of forest. | Mighty Earth Rapid Response 23 |
Indirect supplier. Trading partner had engaged with Bumitama.
Bumitama clarified that the areas were impacted by fires. These are enclaved areas owned by local community, and not developed by the company. Bumitama told trading partner it had submitted information to RSPO part of hotspot monitoring. However the extent of the burnt area was larger than what it recorded. A fire incident report was also submitted to authorities in the village and local police. This was also submitted to the RSPO. Bumitama said it would investigate this case further and revert. Bumitama provided trading partner clarification after on the ground verification. |
Case in progress |
14 | Bunga Group | Value Greenworld Sdn. Bhd (Sg Kahang POM) | Jan-21 | Alleged clearance of forest. | Mighty Earth Rapid Response 32 |
KLK representatives engaged with Bunga Group representative on 15th January 2021 where KLK would like to sought clarification on the allegation. Bunga Group representative confirmed that they have put a ‘stop work order’ since 30th November 2020. They are also committed to conducted integrated HCV and HCS assessment for any new land clearing at greenfield. Currently they are drafting the NDPE Policy which target to be published by end of January 2021. |
Case in progress |
15 | CB Industrial Product Holding (“CBIP”) / Jhonlin Group | PT Kurun Sumber Rezeki | Jul-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 17 |
KLK representatives engaged with Tradewinds on 25 July 2019 when KLK would like to seek clarification on the allegation. KLK only sourced directly from Ladang Permai Sdn Bhd which is a subsidiary of Tradewinds. Tradewinds representative clarified that although CBIP holds 30% share in Kumpulan Kris Jati Sdn Bhd (“KKJ”) which is a subsidiary of Tradewinds, CBIP does not has management control over the operations of KKJ. In addition, Tradewinds who has management control of KKJ, has no shareholdings in any of CBIP’s oil palm operations under CBIP’s management control. It is confirmed that there is no shareholding relationship between Tradewinds and PT Kurun Sumber Rezeki (“KSR”) and so Tradewinds does not has any management control over CBIP or KSR. Tradewinds representative then confirmed that they are supportive and will comply with customers’ NDPE Policy, including KLK’s Sustainability Policy. | Case closed |
16 | Capitol | PT Medco Papua Hijau Selaras | Mar-20 | Alleged forest clearance and land clearance preparation | Mighty Earth Rapid Response 25 Mighty Earth Rapid Response 29 |
Indirect supplier. Capitol no longer exists in KLK supply chain since 2019. | Cased closed |
17 | Dhanistha Surya Nusantara Group | PT Sabhantara Rawi Sentosa | Nov-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 21 |
Indirect suppliers. KLK representatives are engaging with trading partners in Nov 2019.
Updated Feb 2020: Land Clearing was not conducted by the company, it happened outside their concession boundary. |
Case closed |
18 | Dharma Satya Nusantara Tbk | PT Prima Sawit Andalan
PT Putra Utama Lestari (area 1) PT Putra Utama Lestari (area 2) |
Jul-19 | Alleged clearance of forest. Alleged clearance of forest. |
Mighty Earth Rapid Response 17 Rapid Response 23 |
Indirect suppliers. KLK representatives engaged with trading partners in Jul 2019. Trading partner has engaged with DSN for clarification. Based on DSN internal overlay map, land clearing activities mentioned by Mighty Earth were located outside PT PSA concession (“ILOK”). Trading partner has verified this through internal analysis. However, DSN also informed that they found an encroachment inside PT PSA concession by local communities for the purpose of developing paddy fields in April 2019 involving a total area of 5.67 Ha. This illegal action has been documented and reported to local police, military office and sub-district office.
Updated Mac 2020 Trading partner confirmed that DSN sent a letter stating that PSA had stopped land clearing activities since 2015. It also reiterated that the land clearing was committed by local communities. In addition, the case had been filed to local authorities and a socialization to the local communities had been conducted to prevent further encroachment and land burning. DSN then informed trading partner that the process of submitting Kadastral Map to BPN/the government land agency was on progress. Area of the land encroached by the local communities has been excluded from the proposed Kadastral Map. DSN then made an overlay analysis using the Kadastral Map. From the overlay map we can see that the locations of land clearing mentioned earlier by Mighty Earth and the location of land clearing detected later by trading partner internal monitoring were both located outside PSA Kadastral Map. See http://bit.ly/2zl6VMl |
Case closed |
18 | Dharma Satya Nusantara Tbk | PT Kencana Alam Permai | Dec-21 | Alleged clearance of forest (HCS). | Mighty Earth Rapid Response 37 |
Indirect suppliers. KLK representatives engaged with trading partners in December 2021. The progress is monitored via trading partners’ grievance update.
Trading partners informed that they have indirectly received Dharma Satya Nusantara mills in their supply chain. PT Kencana Alam Permai (PT KAP) parent’s group, Dharma Satya Nusantara Tbk (DSN) is a member of RSPO since 2008, where all their land development for palm is bound by RSPO Principles and Criteria. DSN has also made public commitment to NDPE policy and confirmed that they have not carried out new land development since 2015. DSN has confirmed that the clearance at PT KAP was carried out by five local communities for farming, including paddy planting. While the said area is technically inside PT KAP’s HGU, the community is still unwilling to sell the land to PT KAP as they need it for their daily livelihood. Therefore, PT KAP does not have full control over the said area. PT KAP’s field investigation has verified that the clearing activities were conducted by five individuals in Desa Sungai Buluh. Photos and verification report are available here. PT KAP’s team has also carried out a joint verification visit at the location with the head of the village (Desa Sungai Buluh) – as an independent observer. The outcome of the investigation has also been shared with the head village and endorsed by the head village accordingly. DSN understands that this land clearing by the community is aimed at fulfilling their daily needs/ livelihood. Therefore, DSN will continue engaging the community to seek for a mutually- agreed resolution. |
Case in progress |
19 | Djarum | PT Hartono Plantations Indonesia | Sep-18 | Alleged no public NDPE policy. | Greenpeace Final Countdown |
Indirect suppliers. KLK representatives engaged with trading partners in Sept 2018. The progress is monitored via Grievance list of KLK trading partners.
Updated Feb 2020: A meeting was held with the supplier in March 2018 to further discuss the details related to HCV and HCS assessments. Moratorium is currently in place while the supplier completes assessments. Trading partners continue to monitor activities to ensure Djarum uphold their commitment to the moratorium. |
Case closed |
20 | Double Dynasty | Mutiara Pelita Genaan Plantation Sdn Bhd | May-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 15 |
Indirect supplier. Double Dynasty (“DD”) confirmed to trading partner that the alleged deforestation is not within Mutiara Pelita Genaan project boundary. |
Case closed |
20 | Double Dynasty | DDB Bawan Plantation Sdn Bhd | Nov-19 | Alleged clearance of land. | Mighty Earth Rapid Response 21 |
Indirect supplier.
DDB confirmed to trading partner that they have a stop work order on all land clearing on the sites at DDB Bawan (Block 13 Lot 34 and Lot 35) and have agreed to conduct soil investigation to confirm the site is peat or not peat. Trading partner engagement with DD will continue while waiting for the soil investigation report. |
Case in progress |
21 | Eagle High Plantations Group | PT Arrtu Energie Resources | Dec-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 22 |
Indirect suppliers. KLK representatives engaged with trading partners in Dec 2019. Trading partner had engaged with Eagle High Plantation (“EHP”). EHP management stated that it has no intention to open any new areas for palm oil development due to its new planting moratorium since 2017 and Inpres 8/2018. The company does not willfully conduct any form of deforestation. The alleged deforestation occurred due to fire incidents caused by 2019 extreme dry weather condition in Indonesia. PT Arrtu Energie Resources (“PT AER”) was affected by fires that came from outside of its concession. EHP informed that fire prevention and management measures as part of the existing SOP for fire management have been implemented at PT AER. |
Case closed |
21 | Eagle High Plantations Group | PT Tandan Sawita Papua | Jun-21 | Alleged clearance of forest. | Mighty Earth Rapid Response 34 |
Indirect supplier. KLK representatives engaged with trading partner since May 2021.
PT Tandan Sawita Papua (PT TSP) clarified to trading partner that the land clearing was conducted by local community for village expansion. The local community was not aware that the clearing was inside HGU (Hak Guna Usaha) of PT TSP. After the engagement with PT TSP, the community agreed to stop the land clearing. Besides, EHP claimed that no land expansion occurred recently in Papua. |
Case closed |
22 | Fangiono Agro Plantation | PT Tirta Madu Sawit Jaya | Dec-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 22 |
KLK representative engaged with PT Tirta Madu Sawit Jaya (PT TMSJ) in Mac 2020. TMSJ clarified that they did not conduct any deforestation and the alleged location was located outside of PT TMSJ’s concession where the relevant supporting document is shared with KLK representative. | Case closed |
22 | Fangiono Agro Plantation | PT Agrindo Green Lestari | May-20 | Alleged clearance of forest. | Mighty Earth Rapid Response 27 |
KLK representative engaged with PT Tirta Madu Sawit Jaya (PT TMSJ) in May 2020. TMSJ clarified that PT Agrindo Green Lestari, Ciliandy Anky Abadi (CAA) Group is not a subsidiary, an associated company, or a related party of FAP Agri Group. Meanwhile, FAP Agri Group does not have any financial or operational relationship with CAA group. | Case closed |
23 | East New Britain Resources Group (“ENB”) | East New Britain Palm Oil Limited
Tzen Plantation Limited |
Jul-21
Oct-21 |
Allegations include: 1. Deforestation and environmental harms 2. Police violence 3. Corruption 4. No benefit to communities 5. Lack of free, prior, and informed consent 6. Child labour 7. Tax evasion |
Global Witness | Indirect supplier. KLK representatives engaged with trading partner in July 2021. The progress is monitored via trading partner’s grievance update.
Trading partner informed that their last purchase from East New Britain Palm Oil Limited was in Apr 2020. They have put in place a groupwide trade suspension on ENB until the completion of investigation process. Reference to the engagement of trading partner with ENB, ENB has decided to deny all allegations as it deems baseless and untrue to the company. |
Case in progress |
24 | Everbright Resources Corporation | PT Buana Tunas Sejahtera | Feb-19 | Alleged clearance of peat and forest. | Mighty Earth Rapid Response 12 |
Indirect supplier. KLK representatives engaged with trading partner in Feb 2019. Trader confirmed new purchases suspended since Oct 2018. The progress is monitored via Grievance list of KLK trading partners. | Case closed |
25 | Felda Global Ventures | PT Citra Niaga Perkasa (“PT CNP”) PT Temila Agro Abadi (“PT TAA”) |
Mar-18 | Alleged clearance of peat and forest
Alleged clearance of peat and forest. |
Mighty Earth Rapid Response 20 Greenpeace |
KLK representatives met with Sustainability and Engagement Team of FGV on 5 December 2018. KLK team highlighted its revised Sustainability Policy and requested FGV to comment on the allegations under reference. FGV informed that they have put a stop work order on PT Citra Niaga Perkasa and PT Temila Agro Abadi since April 2018. An announcement on this commitment had been made public. FGV has also consulted Kementerian Lingkungan Hidup dan Kehutanan (“KLHK”) on the issue of deep peat. It added that water monitoring facilities have subsequently been installed in such areas as recommended by KLHK. Progress report on the water monitoring would be submitted to KLHK as per their advice. Restoration activity has started in the peat area categorised under ‘Protection’ that was cleared earlier and there would be no replanting in those areas. For existing peat area under ‘Economic’ category, their hydrological function would be maintained. On the labour rights allegation highlighted in the RSPO Complaints Panel Decision Letter, FGV confirmed that it was in the midst of preparing an action plan, targeted to be ready and made public by February 2019. | Case in progress |
25 | Felda Global Ventures | Serting POM | Nov-18 | Alleged abuses over labour rights. | Wall Street Journal / RAN Letter From FGV |
KLK representatives met with Sustainability and Engagement Team of FGV on 5 December 2018. KLK team highlighted its revised Sustainability Policy and requested FGV to comment on the allegations under reference. FGV informed that they have put a stop work order on PT Citra Niaga Perkasa and PT Temila Agro Abadi since April 2018. An announcement on this commitment had been made public. FGV has also consulted Kementerian Lingkungan Hidup dan Kehutanan (“KLHK”) on the issue of deep peat. It added that water monitoring facilities have subsequently been installed in such areas as recommended by KLHK. Progress report on the water monitoring would be submitted to KLHK as per their advice. Restoration activity has started in the peat area categorised under ‘Protection’ that was cleared earlier and there would be no replanting in those areas. For existing peat area under ‘Economic’ category, their hydrological function would be maintained. On the labour rights allegation highlighted in the RSPO Complaints Panel Decision Letter, FGV confirmed that it was in the midst of preparing an action plan, targeted to be ready and made public by February 2019.
Updated Jul 2021: FGV informed that a verification audit was conducted by an independent auditor appointed by the RSPO between November 2020 and April 2021. The verification audit involved six of FGV’s complexes – four in Peninsular Malaysia and two in Sabah. A draft report of the audit has been prepared by the auditor and once finalised, it will be submitted to the RSPO Complaints Panel for deliberation. FGV has been made to understand by the RSPO Secretariat that a decision on the lifting of the aforesaid suspensions will be made by the RSPO Complaints Panel by the end July 2021, based on the outcome of the verification audit. |
Case in progress |
25 | Felda Global Ventures | Sep-19 | Alleged forced labour in Malaysia | Rainforest Action Network (“RAN”) / International Labor Rights Forum / SumOfUs | FGV shared with stakeholders, reiterate seriousness in honouring its commitments to upholding human rights and international labour standards within its operation and supply chain. FGV, with the support of the Procter & Gamble Company (P&G), is embarking on a long-term major project involving partnerships with several independent organisations to further enhance their labour practices. Information about FGV’s various actions is posted on website which can be accessed here. P&G has also issued a statement regarding their investment to accelerate remediation efforts. (Link to P&G’s statement) | Case in progress | |
25 | FGV Holdings Berhad | FGV Holdings Berhad | Sept-20 | Alleged forced labour and potential forced child labour use. | Associated Press (AP) Palm Oil Labors Abuses Linked to World’s Top Brands, Banks U.S. Customs and Border Protection (CBP) CBP Issues Detention Order on Palm Oil Produced with Forced Labor in Malaysia |
On 24 Sep 2020, Associated Press published an article on labour malpractices in FGV’s operation, where FGV has responded on 26 Sep 2020 with a statement to reiterate their commitment in respecting human rights and to upholding labour standards.
On 30 Sep 2020, the United States Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) that it would detain palm oil and palm oil products made by FGV, its subsidiaries and joint ventures at all U.S ports of entry. KLK representatives engaged with FGV in Oct 2020. FGV informed that on 1 Oct 2020, the company had issued a statement in response to the WRO issued by the CBP against palm oil and palm oil products made by FGV. FGV clarified that the issues raised by the CBP have been the subject of public discourse since 2015 and that the company has taken several steps to correct the situation, which are well documented in the public domain. A conference call between FGV and the CBP was held on 8 Oct 2020. However, the CBP could not reveal any information about its findings except that its research had identified the 11 International Labour Organization (ILO) indicators of forced labour in FGV’s practices. The CBP informed FGV that it would consider a petition for the revocation of the WRO together with information or reports arising from audits from credible, unbiased, third party auditing firms. In relation to this, FGV is already communicating with several independent organisations to explore options for an imminent audit of FGV’s operations. Subsequently, FGV has also published FLA Assessment Report on the Implementation of FGV’s Action Plan and their Progress Report (October 2020) Pertaining to RSPO’s Complaints Panel’s Directives. All FGV progress updates and timebound action plan are publicly available here. Updated Mar 2021: On 31 March 2021, FGV announced an update on its efforts towards the revocation of the US CBP’s WRO. FGV also published updates on its affiliation to the Fair Labor Association (FLA) including FLA’s report on the progress of implementation of FGV’s action plan on enhancing labour practices. The report outlined progress made between September 2020 and March 2021. In the report, FLA highlighted some gaps in several aspects, including FGV’s grievance mechanism, remediation procedures and worker representation structures. These areas will remain a key priority for FGV in 2021. Updated Jul 2021: On 18 June 2021, FGV announced that they have called for proposals from prospective organisations and expects to finalise the appointment of the independent auditor in August 2021, following which the assessment work will immediately begin. FGV estimates that it would be able to submit to the CBP, for its consideration, the assessment report together with FGV’s proposed remediation plan within eight months upon the appointment of the independent auditor. Updated Nov 2021: On 16 November 2021, FGV announced the appointment of ELEVATE as the independent auditing firm to conduct an assessment of FGV’s operations against the 11 International Labour Organization (ILO) Indicators of Forced Labour. ELEVATE is an independent sustainability and supply chain service provider with vast experience in advancing social compliance and addressing forced labour risks by applying a worker-centric approach. FGV is in discussion with their US-based legal counsel and ELEVATE on the audit design and plan which is expected to begin in November 2021. Updated Jan 2023: KLK representatives engaged with FGV in Jan 2023. FGV informed their progress update as below: We maintain regular engagement with FGV and will continue to monitor the progress to decide on the next course of action. |
Case in progress |
26 | First Resources | Sep-18 | Alleged relationship between First Resources and PT Ciliandry Anky Abadi (“PT CAA”) Group. | Greenpeace Final Countdown |
KLK’s representatives engaged with First Resources team in Sept 2018. First Resources explained that PT CAA is neither a subsidiary, associated company, or related party of First Resources. First Resources’ controlling shareholder and its key management personnel (either collectively or individually) do not have any ownership or hold any management roles in PT CAA. First Resources also responded, there is no financial or operational relationship with PT CAA. For indirect suppliers, the progress is monitored via Grievance list of KLK trading partners. | Case closed | |
26 | First Resources | PT. Ciliandra Perkasa | Oct-21 | Alleged developing plantations in the areas of production forest (HP) and convertible production forest (HPK) areas | Tempo, Mongabay Indonesia, Betahita and Auriga Nusantara | KLK representatives engaged with First Resources (FR) team in Oct 2021. FR clarified that: • PT. Ciliandra Perkasa has fulfilled obligations from the government such as Izin Lokasi, Izin Usaha Perkebunan (IUP) and/or Hak Guna Usaha (HGU) in conducting its operations. • If there is a discrepancy with regard to plantation permits, then Law No. 11 of 2020 on Job Creation (the ‘Omnibus Law’) and its derivative Government Regulations have provided alternative solutions, where the process has been guided by the relevant Ministry. |
Case in progress |
26 | First Resources | PT Priatama Riau PT Limpah Sejahtera |
Nov-19 | Alleged concession affected by fire and hotspot detected, compliance orders issued, plantation license suspended and plantation sealed. | Greenpeace Burning Down the House |
KLK representatives engaged with First Resources team in Nov 2019. First Resources responded that PT Limpah Sejahtera (PT LS) had never been sealed by KLHK in 2019. While there had been occurrences of fires in the concession during the period, investigations revealed that none of the fire sources were from within the concession. First Resources also explained that the compliance order issued in 2016 to PT Priatama Riau (PT PTR) was with reference to the adequacy of fire equipment on-site and waste management, and not in response to occurrence of fire on its land. PT PTR had taken actions to resolve the non-compliance and their actions have been verified by KHLK. | Case closed |
26 | First Resources | PT Ketapang AgroLestari | Nov-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 21 |
KLK’s representatives engaged with First Resources team in Nov 2019.
Updated Mac 2020 First Resources (FR) clarification as below: FR provided the snapshot from the MERR21, with each patch numbered: |
Case closed |
26 | First Resources | PT Wahana Prima Sejati | Apr-21 | Alleged deforestation and land clearing. | Complainant requested confidentiality | KLK representatives engaged with First Resources (FR) in Apr 2021. The progress is monitored via Grievance list of FR.
FR informed that they are cooperating with RSPO to address the complaint according to the RSPO Complaints and Appeals Procedure, and is currently waiting to hear from RSPO on the next steps for an RSPO investigation. |
Case in progress |
26 | First Resources | Apr-21 | Alleged control over other groups. | Forest People Program – Hiding in the Shadows
Chain Reaction Research – Continued Deforestation and Ownership Confusion in Fangiono Family-Linked Groups |
KLK representatives engaged with First Resources (FR) in Apr 2021. The progress is monitored via Grievance list of FR.
FR emphasized that Fangiono Agro Plantation (FAP) and Ciliandry Anky Abadi (CAA) are not First Resources Limited’s subsidiaries. FR’s statement in response to Forest People Programme’s and Chain Reaction Research’s article is available via this link. FR had also received an RSPO complaint with regard to this matter, and they are already in discussion with RSPO to address this matter. The updates from their discussion with RSPO is updated via this link. . |
Case in progress | |
27 | Genting Berhad | Genting Plantations Berhad | Sep-18 | Alleged killing of orangutan and illegal plantation development in production forest. | Greenpeace Final Countdown |
Response received following KLK engagement in Sept 2018. Genting implemented a new company policy on High Carbon Stock (“HCS”) assessments since 2015 for all new acquisitions with undeveloped areas. 3rd party FFB suppliers were engaged on sustainability issues & NDPE. Genting submitted digital maps of OUs in the RSPO NPP process to the RSPO since 2014. These maps are available at the Global Forest Watch (“GFW”) website as the collaborator with the RSPO. Genting had also started submitting its digital boundary maps in the shape file format as requested by RSPO since 2016/2017. PT Varita Majutama (“PT VM”) concession was acquired by Genting Berhad for energy and oil & gas exploration activities in 2014. The acquired asset already had pre-existing oil palm plantations which were developed by the previous owners. PT VM is managed independently by Genting Berhad and is not part of Genting Plantations Berhad as Genting Berhad and Genting Plantations Berhad are separate listed entities. For indirect suppliers, the progress is monitored via Grievance list of KLK trading partners. | Case closed |
27 | Genting Berhad | PT Citra Sawit Cemerlang
PT Permata Sawit Mandiri |
Apr-19
May-19 |
Alleged clearance of forest. | Mighty Earth Rapid Response 14 Mighty Earth |
KLK representative engaged with Sustainability representative from Genting Plantations on 15 April 2019. The representative informed that PT Citra Sawit Cemerlang has conducted High Carbon Stock Assessment in 2017 and the draft report is now being finalised by the assessor. It will then be submitted to HCSA for peer review process and they confirmed that a stop work order on new land clearing has been put in place.
On 16 March 2017, Genting announced that PT Permata Sawit Mandiri (PT PSM) has ceased to be subsidiary of Genting. Genting’s JV partner, Sepanjang Group has also divested from PT PSM since September 2017. |
Case closed |
28 | Global Enterprise Sdn Bhd | PT Bulungan Surya Mas Pratama | Nov-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 21 |
KLK representatives engaged with Global Enterprise on 12th November 2019 where KLK would like to sought clarification on the allegation. Global Enterprise informed that the group has performed field verification at the alleged area. They confirmed that the land clearing of the alleged area located outside the concessions of PT BSMP. | Case closed |
29 | Goodhope Group | PT Sumber Hasil Prime | Sep-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 19 |
KLK representatives engaged with Goodhope on 11 September 2019 where KLK would like to seek clarification on the allegation. Goodhope informed that the group has performed map analysis and field verification of the alleged area. They confirmed that the land clearing of the alleged area is located outside the concessions of PT SSP and the area is owned by the local community for shifting cultivation practice. | Case closed |
29 | Goodhope Group | PT Rim Capital | Dec-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 22 |
KLK representatives engaged with Goodhope in Dec 2019. Goodhope informed that they have undertaken verification processes of the identified land clearance areas. Outcomes are as follows: Map analysis confirmed that one of the land clearance areas (-2.661, 112.231) is located outside of the concession. The other location is within the concession area of PT RIM Capital. However, the company has no intention or plan to acquire the land for two reasons. Firstly, the land owners are not interested to relinquish the land. Secondly, the company is not going to develop these particular lands due to peat soil. Goodhope has committed to NDPE policy since May 2017. PT RIM Capital has not conducted any land clearance since 2012. There is no plan for new plantings at PT RIM Capital. Goodhope concluded that the alleged land clearing occurred as a result of landfires on community owned areas on 20th September 2019. |
Case closed |
30 | IJM Corporation | IJM Plantations Bhd | Sep-18 | Alleged no public NDPE policy. | Greenpeace Final Countdown |
Indirect suppliers. KLK representatives engaged with trading partners on Sept 2018. The progress is monitored via Grievance list of KLK trading partners.
Updated Feb 2020: Trading partner engaged with IJM. The field visit for the HCS and HCV assessment was conducted in October 2018. Trading partner continues to monitor the activities to ensure PT Prima Bahagia Permai (PBP) will uphold their commitment to the moratorium. |
Case closed |
31 | Incasi Raya Group | PT Sumatera Jaya Agro Lestari | Nov-18 | Alleged clearance of peat and forest. | Mighty Earth Rapid Response 10 |
KLK representatives engaged with Incasi Raya Group on 26 February 2019 where KLK sought clarification on the allegations which involve two areas as stated in the report. Incasi Raya Group informed KLK that area A involves peatland and they have put in place a land clearing moratorium since 2013. However, in August 2018, the management accidentally cleared the area due to operational oversight. The company has then immediately ceased the land clearing and reiterated the land clearing moratorium commitment. For area B, Incasi Raya Group informed that the company has also put in place a land clearing moratorium since November 2018 after being informed on the high carbon stock area requirement. The company informed that natural rehabilitation will be implemented at the non-compliant area cleared. | Case closed |
31 | Incasi Raya Group | PT Arvenasepakat | Jul-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 17 |
KLK representatives engaged with Incasi Raya Group in Jul 2019. Incasi Raya Group informed KLK that they are not involved in the allegation. A meeting was held between the community, police and PT Arvena Sepakat on 15 August 2019. Incasi Raya is coordinating and monitoring the progress. | Case closed |
31 | Incasi Raya Group | PT Makmur Agro Lestari | Jan-20 | Alleged clearance of forest. | Mighty Earth Rapid Response 23 |
KLK representatives engaged with Incasi Raya Group in Jan 2020. Incasi Raya Group confirmed KLK that PT Makmur Aagro Lestari (PT MAL) is not located at Central Kalimantan as per the coordinate stated in the report. Therefore, the land in the report is not part of Incasi Raya Group. | Case closed |
31 | Incasi Raya Group | PT Sumber Andalas Kencana | Oct-21 | Alleged sourcing from independent farmers in the Bukit Betabuh protected forest. | Tempo, Mongabay Indonesia, Betahita and Auriga Nusantara | KLK representatives engaged Incasi Raya (IR) team in Oct 2021. IR clarified that: • PT Sumber Andalas Kencana is only processing FFB from nucleus and plasma. Moreover, Bukit Betabuh is very far away from PT Sumbar Andalas Kencana. • IR confirmed that the crops from truck plate number AA1891JH is from their plasma. A copy of the weighbridge data is shared with KLK.. |
Case closed |
32 | Instant Star Holdings Sdn Bhd | Aspirasi Kristal (M) Sdn Bhd (area A)
AspirasiKristal (M) Sdn Bhd (area B) Satria Eramaju Sdn Bhd |
Aug-20 | Alleged clearance of forest. | Mighty Earth Rapid Response 30 |
Indirect suppliers. KLK representatives engaged with trading partners in Aug 2020.
Reference to the engagement of trading partner with their supplier: 1. IJM has already engaged with Aspirasi Kristal and Satria Eramaju, where both their FFB suppliers are required to adhere to the NDPE policy. 2. Aspirasi Kristal has stopped their land clearing activities in July 2020, while Satria Eramaju do not have any active clearing activities. 3. Engagement with these companies are still ongoing, updates will be made available when there is new development to the case. Updated Sep 2020: Trading partner updated that: |
Case closed |
33 | IOI Group | Bumitama Gunajaya Agro and Bumitama Sawit Lestari | Sep-18 | Alleged illegal planting, clearance of peatland and HCV forest including orangutan habitat. Alleged breaches of community land rights. | Greenpeace Final Countdown |
KLK representatives engaged with IOI group team in Sept 2018. The case is now being handled by RSPO’s Complaints Panel (“CP”). IOI is working closely with the CP and there has been a considerable effort made to resolve the conflict in a new way. IOI has relevant NDPE policies and has been actively working to implement these in their operations and supply chain. Regular monitoring of progress by IOI on the implementation of their NDPE policies, including progress of problematic cases (i.e. IOI Pelita case in Sarawak, Malaysia and PT KPAM case in West Kalimantan, Indonesia). For indirect suppliers, the progress is monitored via Grievance list of KLK trading partners. | Case closed |
33 | IOI Group | Mekassar Estate | Jul-21 | Alleged issues with living conditions and compliance with working standards. | Finnwatch Report: Migrant workers’ rights in oil palm estates in MalaysiaCASE: IOI Group, Mekassar | IOI stated that most of the actions mentioned in the report had already been initiated during the course of their engagement with Finnwatch and incorporated into IOI’s systems and processes.
Besides, IOI had further contacted the Indian Embassy to obtain feedback on the investigation of illegal monies collected from the Indian workers, allegedly by the person(s) connected to the Recruitment Agency in India that IOI had suspended. There has been no response as yet. IOI’s statement in response to Finnwatch’s report, response and follow-up actions and recommendations and response are publicly available. |
Case in progress |
34 | Jernih Kemboja Sdn Bhd & AA Sawit Sdn Bhd | Jernih Kemboja Sdn Bhd & AA Sawit Sdn Bhd | Feb-22 | Alleged forest clearance | Mighty Earth Rapid Response 38 |
KLK representatives engaged with Jernih Kemboja Sdn Bhd and AA Sawit Sdn Bhd on 17th February 2022 where KLK would like to seek clarification on the allegation. Jernih Kemboja Sdn Bhd’s representative clarified that neither Jernih Kemboja Sdn Bhd nor AA Sawit Sdn Bhd is the owner of the alleged concession PTD 1815. However, AA Sawit Sdn Bhd, whereby the owner of Jernih Kemboja Sdn Bhd is also a shareholder, was appointed by the landowner to clear approximately 25 ha of land in PTD 1815. |
Case in progress |
34 | Kalimantan Sawit Kusama | PT Fajar Saudara Lestari (PT FSL) | Dec-19 | Alleged forest clearance | Mighty Earth Rapid Response 22 |
Indirect suppliers. Trading partner has shared with Mighty Earth the correct version of PT FSL’s HGU boundary for spatial verification (that the deforestation event was outside PT FSL’s concession). Following further engagement with Mighty Earth regarding the boundary issue, this matter has been resolved to Mighty Earth’s satisfaction. | Case closed |
35 | Kencana Agri Ltd | PT Agro Sawit Mas Lestari | Jul-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 17 |
KLK representatives engaged with Kencana Agri on 24 July 2019 where KLK would like to seek clarification on the allegation. Kencana Agri informed that the group including PT Agro Sawitmas Lestari is committed to the Sustainability Policy released on 19 January 2015 which includes no deforestation on High Carbon Stock forest areas and no further land clearing of potential HCS areas until the proposed HCS study is adopted. They confirmed that the alleged area is located outside of PT Agro Sawitmas Lestari’s HGU and the estate map indicated the alleged area is shared with KLK representative. | Case closed |
36 | KPN Group | PT Agriprima Cipta Persada
Gama Plantation PT Agrinusa Persada Mulia |
Feb-18
May-18 Sep-18 Oct-19 |
Alleged no public NDPE policy and clearance of forest. | Mighty Earth Rapid Response 3 Mighty Earth Greenpeace Mighty Earth |
Indirect suppliers. KLK representatives engaged with trading partners in Sept 2018. The progress is monitored via Grievance list of KLK trading partners.
Updated Feb 2020: GAMA published its Sustainability Policy in Sept 2018, which incorporated elements that goes beyond the generic NDPE requirements. 27 Feb 2019, GAMA Plantations published its first progress report detailing the implementation and progress of their NDPE policy commitments. Based on detailed review of documentation, reports and geospatial information from GAMA Plantation group, and after consultation with Aidenvironment on the group’s performance and overall commitment – the Wilmar Suspension Committee have given due consideration of this progress and have lifted the suspension on the GAMA Plantation group in March 2019. GAMA Corp was rebranded as KPN Corp in Sept 2019. KPN Corp published their second progress reports and 60 months timebound action plan in Nov 2019. Trading partner engagement with Gama confirmed that Gama has imposed a moratorium on land clearing July 2018, no land clearing was carried out since then. The area in question are outside PT Agrinusa Persada Mulia’s HGU concession area. The land clearing was carried out by communities for farming; and by PT. BPUP (“Bangun Bina Utama Papua”) for road construction. |
Case closed |
36 | KPN Group | PT Sumatera Unggul Makmur | Aug-19
Jun-20 |
Alleged clearance of forest. | Mighty Earth Rapid Response 18 Mighty Earth |
Updated Jun 2020:
Indirect suppliers. KLK representatives engaged with trading partners in June 2020. Trading partner engagement with KPN Group confirmed that the land reported in MERR-28 is not owned and controlled by PT Sumatera Unggul Makmur (PT SUM) due to Villages Boundary Dispute since 2011. PT SUM committed to support and help Local Government to mediate and settle this dispute. They will work closely with Local Government to monitor this case and will try to work with both Villages Head & Elders to seek Win-Win approach. The other trading partner confirmed that KPN group/Gama group has been suspended from their supply chain as of June 2018 hence no longer in KLK’s supply chain. |
Case in progress |
37 | Kuala Lumpur Kepong Berhad | PT Menteng Jaya Sawit Perdana (“MJSP”) | Oct-18 & Aug-18 |
Alleged land clearing activities on peat. | 1. Bunge 2. Wilmar Satellite Images |
Inquiries were received from Wilmar and Bunge on the alleged land clearance on peatland at PT MJSP, a subsidiary of KLK, in Kalimantan. The following clarification statement is intended to respond to the above: A total area of 3,509ha within PT MJSP’s location permit [izin lokasi] has been gazetted by Kementerian Lingkungan Hidup & Kehutanan [KLHH] as Community Forest Plantation [Hutan Tanaman Rakyat (“HTR”)] in Y2016. A copy of the Ministerial Decree letter [Surat Keputusan Menteri] from KLHH and the HTR map is available here. It is a local government’s development program for the community in this area in collaboration with Gabungan Kelompok Tani Hutan (“Gapoktan”), and monitored by Forest Agency [Dinas Kehutanan]. The alleged land clearing is currently taking place in HTR area. It is conducted by Gapoktan as part of the above-mentioned project. In addition, there was oil palm planting (Y2009-2011) within the HTR area by PT MJSP. This land will eventually be surrendered to Gapoktan. | Case closed |
37 | Kuala Lumpur Kepong Berhad | PT Jabontara Eka Karsa | Jul-19 | Deforestation of orangutan habitat. | 1. Wilmar 2. Sime Darby 3. Bunge 4. LDC Orangutan Habitat Loss and Palm Mills |
Inquiries were received from buyers on alleged deforestation of orangutan habitat at PT Jabontara Eka Karsa (“PT JEK”) – a subsidiary of KLK, in East Kalimantan this year. The following clarification statement is intended to respond to the above: The alleged area is located outside of PT JEK concession area (Figure 1). It is confirmed that there is no new land clearing at PT JEK for the year of 2019. PT JEK’s plantation development has been completed since 2014, and its palm oil mill receives FFBs from its own plantations and plasma only. | Case closed |
37 | Kuala Lumpur Kepong Berhad | PT Menteng Jaya Sawit Perdana (“MJSP”) | Aug-19 | Alleged land development on peatland (12 ha). | 1. Mighty Earth Satellite Images |
PT Menteng Jaya Sawit Perdana is alleged to have cleared and developed 12 ha of peatland in its concession in Mighty Earth’s “Rapid Response Palm Oil, Report 18” report. The following clarification statement is intended to respond to this allegation: The alleged area is located within PT MJSP’s permit area (Izin lokasi). It is however no longer within the management control of PT MJSP, as in Y2016 the area has been gazetted by Kementerian Lingkungan Hidup & Kehutanan [“KLHH”] as Community Forest Plantation [Hutan Tanaman Rakyat (“HTR”)] area. A copy of the Ministerial Decree letter [Surat Keputusan Menteri] from KLHH and the location map of the HTR area relative to the alleged area is attached here. It is a local government’s development programme for the local community in collaboration with Gabungan Kelompok Tani Hutan (“Gapoktan”), and is monitored by the Forest Agency [Dinas Kehutanan]. After clarification from KLK, Mighty Earth has agreed to remove this case from the online version of the Rapid Response Palm Oil, Report 18. | Case closed |
37 | Kuala Lumpur Kepong Berhad | PT Sekarbumi Alam Lestari (“SAL”) | Jul-21
Jul-21 |
HGU overlaps with forested land. | 1. Apical Group
2. PT Musim Mas |
PT SAL’s concession was alleged to have overlapped with forest land. The following is our clarification to it.
The chronological order of SAL’s Izin is as follow : With the IPK of 6,425 ha and subsequently HGU, the entire SBAL area should be under Area Penggunaan Lain (APL) land status. There should not be any situation of overlapping into forest. However, based on Kementerian Lingkungan Hidup dan Kehutanan (KLHK)’s recent forest map (eg version dated 2016) there are areas within its HGU which overlap with HPT, HP and HPK areas. This is very likely due to difference between Rencana Tata Ruang Wilayah (RTRW) and KLHK forest maps issued after the above-mentioned izins and HGU. RTRW maps for example are updated every 5 years. Likewise, KLHK forest maps have also undergone a number of changes since. To resolve the above, SAL will : |
Case closed |
37 | Kurnia Tunggal Nugraha | PT Erasakti Wiraforestama | Oct-22 | Alleged use of child labor. | Cash Investigation | Indirect supplier. KLK representatives engaged with trading partner in Nov 2022.
Trading partner has investigated this case and found it appears that Erasakti Wiraforestama (EWF) has clarified that the allegations are untrue. The Department of Manpower and Transmigration Jambi Province, Indonesia has in fact carried out a field visit on 7 November 2022 to investigate the matter raised by Cash Investigation and found no evidence of child labour in the plantation. Trading partner informed that their supplier has shared with them the report on the outcome of investigations the Department of Manpower and Transmigration Jambi Province, Indonesia. After their review on the document and it supports the claim that there was no evidence of child labour. Most importantly, it appeared that the video footages were not taken at EWF’s operation as worker’s uniforms and tools used by the workers in the video footages are different from those in EWF’s plantation. The workers did not did not recognize the place/location of the plantation, the people/workers, the uniform used (PT EWF wore a yellow uniform) and the standard of spraying equipment from the France 2 Televisions Program. PT EWF used the Panda brand type PD-16 which has a capacity of 16 liters and the liquid is yellow, so it can be ascertained that the documentary film was not made in PT EWF’s plantation area. |
Case closed |
38 | Kwantas Group | Kwantas Pelita Plantation (Balingian) Sdn Bhd | Apr-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 14 |
Indirect supplier. KLK representatives engaged with trading partner in Apr 2019. Trading partner is engaging with Kwantas and the progress is monitored via their Grievance list. Trading partner further confirmed that supply to KLK does not involve the alleged areas. | Case closed |
39 | LKPP Corporation Sdn Bhd | PKPP Plantation Sdn Bhd
PKPP Plantation Sdn Bhd (Cherating) Perbadanan Kemajuan Pertanian Negari Pahang (Tembeling) |
Aug-20
Nov-20 |
Alleged clearance of forest. | Mighty Earth Rapid Response 30 Mighty Earth |
Indirect suppliers. KLK representatives engaged with trading partners in Aug 2020. Trading partners informed that engagement is in progress.
Updated Nov 2020: Reference to the engagement of trading partner with Tuan Haji Roslan, Director of PKPP Agro: a. PKPP has agreed to put a stop to all land clearing activity at Ladang Cherating concession. b. The PKPP management has set aside two land banks located at Lipis, Pahang (426 ha) and Pekan, Pahang (130 ha) for its recovery plan. c. A group-wide NDPE policy is in the pipeline, pending for written resolution by the Board of Directors of PKPP. d. A full implementation of NDPE policy is expected to be done latest by 1 Jan-21. |
Case in progress |
40 | Lyman Agro | PT Bonti Permai Jayaraya | Sep-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 19 |
Indirect suppliers. KLK representatives are engaging with trading partners in Sep 2019.
Updated Feb 2020: The map on the report is the area of PT BPJ’s location permit (Izin Lokasi), which was given to the company in 1996 and it expired in 1999. As the Company did not manage the entire area within the Izin Lokasi, the uncontrolled area was automatically returned to the state after the location permit expired in 1999. The land clearing mentioned in ME RRR19 took place in the area returned to the state and has no longer been managed by PT BPJ since 1999. |
Case closed |
41 | Matahari Kahuripan Indonesia | Nov-19 | Alleged concession affected by fire, plantation sealed and fined. | Greenpeace Burning Down the House |
Indirect suppliers. KLK representatives are engaging with trading partners in Nov 2019. Following trading partner’s visit to PT Ricky Kurniawan Kertapersada (“PT RKK”) in November 2015, PT RKK has agreed to a time-bound action plan. While monitoring their implementation progress, trading partner considered the case closed. | Case closed | |
41 | Matahari Kahuripan Indonesia | PT Cipta Karsa Kahuripan | Nov-19 | Alleged clearance of forest | Mighty Earth Rapid Response 21 |
Indirect suppliers. KLK representatives engaged with trading partners in Nov 2019. Trading partner has engaged with MAKIN Group for clarification.
MAKIN’s management clarified that the proposed area (Areal Pencadangan Lahan) given to PT Cipta Karsa Kahuripan (PT CKK) in June 2005, expired at the end of 2005 as no activities were conducted within six months since the proposed area was given. PT CKK communicated with the Bupati of Ketapang Regency on 19th August 2019 that since 15 September 2016, PT CKK is an inactive company and never conducted any activity, including the deforestation alleged in Mighty Earth Rapid Response Report 21. Trading partner conducted a physical meeting with MAKIN Group’s management on 13 December 2019 and has verified relevant documents. |
Case closed |
41 | Murad family | PT Kurnia Luwuk Sejati | Aug-21 | Alleged FPIC and land access rights violations and human rights abuse. | Forest People Program – Demanding Accountability | Indirect supplier. KLK representatives engaged with trading partner in Aug 2021. Trading partner has engaged with PT Kurnia Luwuk Sejati (PT KLS) for clarification.
PT KLS clarified that the company has good relationship with the local community and currently does not have any ongoing issue with the community. A copy of Environmental Impact Assessment is shared with trading partner. The document signifies that proper socialization of the company’s activity has been conducted to the local communities prior to the commencement of operations. In addition, PT KLS also shared several local news featuring PT KLS’ efforts in supporting community during COVID period, and other general support including infrastructure for religious activities. Based on the provided information, trading partner considered PT KLS is operating well and having a good relationship within the surrounding community. |
Case closed |
41 | Musim Mas | PT Multipersada Gatramegah | Dec-21 | Alleged clearance of forest (HCS). | Mighty Earth Rapid Response 37 |
For the case on PT Multipersada Gatramegah (PT MPG), trading partner confirmed that the area identified in the report is neither HCV nor HCS area. This area has been assessed and covered under the following assessment reports: For the case on PT Multipersada Gatramegah (PT MPG), trading partner confirmed that the area identified in the report is neither HCV nor HCS area. This area has been assessed and covered under the following assessment reports: 1. HCV Report of PT Harisa Agro Lestari (PT Hariso Legra Astari, Kabupaten Barito Utara, Indonesia – HCV (hcvnetwork.org)) that has obtained satisfactory status (note: the area was part of PT Harisa Agro Lestari, which PT MPG officially acquired on 1st April 2018); 2. HCS Report of PT Multipersada Gatramegah in 2018 that has covered the area in question (HCSARE1-1.pdf (highcarbonstock.org)) which has completed HCSA review process (HCSAPE1-3.pdf (highcarbonstock.org); 3. This area has also undergone the RSPO NPP process (PT Harisa Agro Lestari | RSPO – Roundtable on Sustainable Palm Oil). All reports are published and available on HCVRN, HCSA, and RSPO websites, respectively. |
Case closed |
42 | NPC Resources | PT Sumber Alam Selaras | Sep-18 | Alleged no public NDPE policy. Alleged clearance of forest including orangutan habitat and peatland forest.
Alleged clearance of forest and/or peat. |
Greenpeace Final Countdown Mighty Earth |
Indirect suppliers. KLK representatives engaged with trading partners in Sept 2018. The progress is monitored via Grievance list of KLK trading partners. Updates include consultant engaged to assess compliance against NDPE requirements.
Updated Feb 2020: NPC has an NDPE commitments in place since Sept 2018. NPC has explained that due to the recent extreme dry weather coupled with strong wind, fires spread and burnt inside their concession which destroyed some of their palm trees. Our monitoring consultant Aidenvironment has similarly confirmed the fire being the cause of forest loss. This is not deforestation to plant oil palm. |
Case closed |
42 | NPC Resources | PT Nala Palma Cadudasa | Nov-19 | Alleged concession affected by fire and plantation sealed. | Greenpeaceh Burning Down the House |
Indirect suppliers. KLK representatives engaged with trading partners in Nov 2019. Trading partner stated that for NPC, many fires occurred in the local community land and not in the palm plantation. Trading partner is awaiting NPC statement which will be shared with KLK upon receiving it. | Case in progress |
43 | Nurdin Tampubolon Corporation (“NT Corp”) | PT Bintang Sakti Lengana (“PT BSL”) | Sep-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 19 |
Indirect supplier. KLK representatives are engaging with trading partner in Sep 2019.
Update Mac 2020 NT Corp communicated the following to trading partner in a letter: a. PT BSL will conduct an HCS/HCV assessment using a HCSA/ALS registered assessor and will follow-up with a peer review; b. NT Corp will adopt a commitment to no development of HCS/HCV/peat regardless of depth across at a group level. Point (a) will apply for all land clearing in the future; c. This commitment is effective from 7th Nov 2019. Based on the above statement, a land clearing moratorium for PT BSL is in effect from 7 Nov 2019. |
Case in progress |
44 | Padasa Enam Utama | PT Padasa Enam Utama | Oct-21 | Alleged developing plantations in the areas of convertible production forest (HPK) and protected forest area. | Tempo, Mongabay Indonesia, Betahita and Auriga Nusantara | Indirect supplier. KLK representatives engaged with trading partner in Oct 2021.
Trading partner is indirectly linked to Padana Enam Utama (PEU). Their supplier has contacted PEU and is currently reviewing the evidence provided. In line with the supplier’s Grievance Handling procedure, they may request a verification/assessment process if deemed necessary and agree on a time-bound action plan. The whole process will become the basis for the company’s decision on a further commercial relationship with PEU. |
Case in progress |
44 | Palma Serasih Group | PT Global Primatama Mandiri | Mar-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 13 |
Indirect supplier. KLK representatives engaged with trading partner in Mar 2019. Trading partner confirmed has stopped purchases from Palma Serasih.
Updated 3 July 2019: The other trading partner is engaging with Palma Serasih group. HCV assessment was conducted in Aug to Dec 2016 by third party consultant, PT Gagas Dinamiga Aksenta. The report shows alleged land cleaning is outside of HCV areas. Survey of Population and Habitat of Orangutan was also conducted by Borneo Orangutan Survival foundation in May 2016. They also clarified its operational activities has obtained the legality and permits. Trading partner has temporarily ceased entering new contract with Palma Serasih until they addressed the issue. |
Case in progress |
45 | Peputra Group | PT Marita Makmur Jaya | Apr-20 | Alleged clearance of forest. | Chain Reaction Research Report here |
Indirect supplier. KLK representatives engaged with trading partners in Apr 2020.
Trading partner commented the alleged company on deforestation is PT Marita Makmur Jaya (PT MMJ), is not their supplier. Trading partner source from PT Peputra Supra Jaya (PT PSJ) and PT Peputra Masterindo (PT PM). Trading partner have completed desktop assessment and arrived at a conclusion that there is no strong argument to deem PT MMJ as PT PSJ/PT PM group. |
Case in progress |
46 | Pinehill Pacific Bhd | PT Makmur Jaya Malindo | Aug-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 19 |
Indirect suppliers. KLK representatives engaged with trading partners in Aug 2019. Trading partner confirmed that the alleged deforestation concession reported in RRR18 is located at West Kalimantan, known as PT Makmur Jaya Malindo (“PT MJM”), which was a subsidiary of Pinehill Pacific Bhd. Based on their conversation with Pinehill, Pinehill Pacific Bhd has divested their Indonesia operations and it had no longer management control over PT MJM. The progress is monitored via Grievance list of KLK trading partner. Another trading partner informed that the company officially acquired Pinehill Pacific Sdn Bhd’s 8999 acres of agriculture land located in Lower Perak, Malaysia on 16th August 2019. This old established plantation will now be transformed to produce certified sustainable palm oil in accordance to the criteria stipulated in RSPO P&C in the near future. The name of the estate has been changed from Pinehill Estate to Tanarata Estate. The supply to KLK is not linked to PT MJM from Indonesia. | Case closed |
47 | PT Austindo Nusantara Jaya Agri (“ANJ”) | Feb-15 | Alleged clearance of potential High Carbon Stock (“HCS”) forest. | Mongabay “Busy Years” Ahead Until 2017 |
KLK has initiated the first engagement with Austindo Nusantara Jaya Agri (“ANJ”) on 6 October 2016 and subsequently in November 2016 and 16 March 2017. ANJ has officially adopted a comprehensive “No Deforestation, No Peat, No Exploitation” (“NDPE”) policy in November 2016. KLK has put on hold purchases with effect from December 2016 pending a concrete action plan from ANJ to be made public.
Updated Dec 2020 |
Case closed | |
48 | PT Bumi Daya Agrotamas | Dec-19 | Alleged illegally planting palms inside the Rawa Singkil Wildlife Reserve. | Rainforest Action Network (“RAN”) | Indirect supplier. Trader partner have put on hold new purchases pending field verification report. The progress is monitored via trading partners’ grievance update.
Updated Feb 2020: Based on the Bumi Daya Agrotamas’ mill records, it was confirmed that Bumi Daya Agrotamas had indeed stopped purchasing from PT Laot Bangko since September 2019. |
Case closed | |
49 | PT Dewa Rencana Perangin Angin | PT Dewa Rencana Perangin Angin | Apr-22 | Alleged human trafficking and slave labour use on oil palm farm. | Mongabay/Tempo Raid against Sumatran official uncovers use of slave labor on oil palm farm |
Indirect supplier. KLK representatives engaged with trading partner in Apr 2022.
Trading partner informed that they no longer received any oil from PT Dewa Rencana Perangin Angin (DRPA) since late January 2022 due to some operational issues. Meanwhile, trading partner will engage with PT DRPA and seek clarification on the allegation of human rights abuses once the operational issues have been resolved and resume trading relationship with PT DRPA. For the time being, PT DRPA oil will not enter into trading partner’s supply chain. Updated Oct 2022: Trading partner has suspended sourcing from PT DRPA. |
Case closed |
49 | PT Ensem Sawita | Dec-19 | Alleged illegally planting palms inside the Rawa Singkil Wildlife Reserve. | Rainforest Action Network (“RAN”) Leuser Watch |
Indirect suppliers. Trader partners have put on hold purchases. The progress is monitored via trading partners’ grievance update. | Case in progress | |
50 | PT Global Sawit Semesta | PT Global Sawit Semesta | Dec-19 | Alleged illegally planting palms inside the Rawa Singkil Wildlife Reserve. | Rainforest Action Network (“RAN”) Leuser Watch |
Indirect supplier. Trading partner has put on hold purchases. The progress is monitored via trading partner’s grievance update.
Updated Oct 2020: Updated Oct 2021: Updated Dec 2021: |
Case closed |
50 | PT Global Sawit Semesta | PT Global Sawit Semesta | Jul-21 | Alleged clearance of forest and disputes with local communities. | Rainforest Action Network (“RAN”) Leuser Watch |
Indirect supplier. KLK representatives engaged with trading partner in July 2021. The progress is monitored via trading partner’s grievance update.
Trading partner informed that they had engaged with PT Global Sawit Semesta (PT GSS) and the following progress have been made: Trading partner confirmed that they will continue engage with PT GSS for them to commit to NDPE and implement an agreed action plan, which includes tightening its sourcing policy and requirements to prevent from repeated case. Meanwhile, trading partner has held off sourcing from these suppliers. Updated Oct 2021: PT Laot Bangko has launched a website and published their sustainability policy. The policy can be found here. The company has started working with consultant on the HCV/HCS assessment. Updated Feb 2022: Since PT GSS has completed the action, the case has been closed. PT GSS will continue monitor the progress of PT LB and maintain ceased sourcing from PT LB including PT Bima Golden Powerindo. |
Case closed. |
50 | PT Global Sawit Semesta (“PT GSS”) | PT Global Sawit Semesta | Sep-22 | Alleged sourcing non-compliant FFB from protected wildlife reserve in Sumatra’s Leuser Ecosystem (Rawa Singkil Wildlife Reserve) | Rainforest Action Network (“RAN”) Carbon Bomb Scandals: Big Brands Driving Climate Disaster For Palm Oil |
Indirect supplier. KLK representatives engaged with trading partner in Oct 2022.
Based on the investigation and engagement with PT GSS by our trading partner, the information below was obtained: 4. PT GSS has taken immediate action to cease sourcing from all the Mr. Mahmudin’s estates. The investigation demonstrates due diligence carried out by PT GSS on FFB sources, and the alleged illegal FFBs is not part of the PT GSS supply chain. Trading partner has informed its suppliers not to source from this alleged illegal source, and will continue monitoring the actions implemented to ensure all FFB must come from traceable and NDPE compliant sources. |
Case closed |
51 | PT Mulia Agro Investama | PT Permata Sawit Mandiri | Dec-22 | Alleged deforestation | EIA Report
AidEnvironment |
Indirect suppliers. KLK representatives engaged with trading partners in Apr and Dec 2022.
Our trading partner confirmed that PT Permata Sawit Mandiri (PT PSM) is not their supplier but the oil from PT PSM was allegedly entered into their supply chain indirectly via their supplier. As confirmed by trading partner, their supplier has already ceased sourcing from PT PSM since end of Jan 2022. |
Case closed |
51 | PT Teguhkarsa Wanalestari (PT TKWL) | Group affiliated with PT TKWL: 1. PT Sawit Sukses Sejati (PT SSS) 2. PT Usaha Sawit Unggul (PT USU) |
Jun-22
Dec-22 |
Alleged clearance of forest (indicative HCS)
Alleged deforestation |
Mighty Earth Rapid Response 39 |
Indirect suppliers. KLK representatives engaged with trading partners in Jun 2022. The progress is monitored via trading partner’s grievance update.
One of our trading partners informed that they had seek clarification from PT TKWL regarding the issue and the link between the company and PT SSS as well as PT USU. PT TKWL clarified that the company is not associated to PT SSS and PT USU. They also informed that they never buy or received any FFBs from PT SSS and PT USU. Trading partner also reached out to PT Asia Sawit Lestari (PT ASL) and PT Prima Mas Lestari (PT PML) for their feedback regarding the alleged link to PT SSS and PT USU. Both companies denied the allegation and informed that they are not associated to PT SSS or USU. Other trading partners confirmed that PT SSS used to supply FFB to PT Sumber Tani Agung (STA) in the past, but they are no longer a consistent supplier to PT STA. PT STA has ceased sourcing from PT SSS since May 2022. Trading partner also confirmed that Pasifik Agro Sentosa (which PT Rimba Mujur Mahkota is part of) has suspended PT. SSS from Sikarakara mill supply chain since January 2022. |
Case closed |
52 | PT Union Sampoerna Triputra Persada | PT Harapan Hibrida Kalbar | Jan-20 | Alleged forest clearance | Mighty Earth Rapid Response 23 |
Indirect supplier. PT Union Sampoerna Triputra Persada no longer exists in KLK supply chain since 2019. | Case closed |
53 | QL Resources Bhd | PT Pipit Mutiara Indah | Nov 19 | Alleged clearance of forest. | Mighty Earth Rapid Response 21 |
KLK representative engaged with QL on 11th November 2019 to seek clarification from the later on the alleged case. It was clarified that the area are being felled several years ago and now being cleared for planting. As there was no HCV/HCS assessment conducted by QL, this is not in compliance with our NDPE Policy. KLK has then activated the ‘Stop Purchase Order’ in April 2020.
In May 2020, QL shared the action plan taken which include a group wide moratorium on new land clearing and committed to develop a Recovery Plan for the non-compliant land clearing. KLK is then decided to resume trading relationship with QL and will continue engage with QL on the progress. |
Case closed |
54 | RGE Group | PT Usaha Sawit Unggul | Jul-19 | Alleged clearance of peat forest and land clearance preparation. | Mighty Earth | KLK’s representatives engaged with Asian Agri team in Jul 2019. Asian Agri informed that they had commenced an investigation immediately upon receiving the report. Based on the evidence received, it is confirmed that the land clearing located outside of PT USU concession. | Case closed |
55 | Rimbunan Hijau | Sep-18 | Alleged no public NDPE policy. | Greenpeace Final Countdown |
Indirect suppliers. KLK representatives engaged with trading partners in Sept 2018. The progress is monitored via Grievance list of KLK trading partners. | Case in progress | |
55 | Rimbunan Hijau | Jaya Tiasa Holdings Bhd | Feb-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 12 |
Indirect suppliers. KLK representatives engaged with trading partners in Sept 2018. The progress is monitored via Grievance list of KLK trading partners. | Case in progress |
55 | Rimbunan Hijau | Poh Zhen Sdn Bhd
PJP Pelita Lundu Plantation Sdn Bhd |
Jul-19
Jul-20 |
Alleged peat development and land clearance preparation.
Alleged clearance of forest. |
Mighty Earth Rapid Response 17 Mighty Earth |
Indirect suppliers. KLK representatives engaged with trading partners in July 2020.
Updated July 2020: Poh Zhen: Trading partner confirmed that the land clearing at the particular area is not related to oil palm development. Pelita Lundu Plantation : Trading partner confirmed that the land clearing was not conducted by the company. That particular area (LOT N17) is still owned by the local smallholders as it has not been surrendered yet. The land clearing was done by those local smallholders. |
Case closed |
55 | Rimbunan Hijau | Erajaya Synergy Sdn Bhd (Lassa division, part of LPF 0029) WoodijayaSdnBhd(Lot 197) |
Aug-19 | Alleged peat development and land clearance preparation. | Mighty Earth | Indirect suppliers. KLK representatives engaged with trading partners in Jul 2019.
Updated Feb 2020: A small portion was cleared for non-palm planting related operation, most of the area was illegally cleared by local communities. |
Case closed |
55 | Rimbunan Hijau | RH Plantation (Selangor Estate) | Sep-19 | Alleged clearance of forest preparation. | Mighty Earth Rapid Response 19 |
Indirect suppliers. KLK representatives engaged with trading partners in Jul 2019.
Updated Feb 2020: Trading partner confirmed that the land clearing is not related to oil palm development. |
Case closed |
55 | Rimbunan Hijau | Timrest Sdn Bhd
Rimbunan Sawit Sdn Bhd (Simunjan Estate) |
Nov-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 21 |
Indirect suppliers. KLK representatives engaged with trading partners in Nov 2019.
Updated Mac 2020: Trading partner confirmed that: |
Case closed |
55 | Rimbunan Hijau | Gilford Limited | Jul-21
Oct-21 |
Allegations including: 1. Deforestation 2. Operating without local landowners’ FPIC 3. Neglect of workers health and safety 4. Employ police to brutalize local communities. |
Global Witness (“GW”) | Indirect suppliers. KLK representatives engaged with trading partners in July 2021. The progress is monitored via trading partners’ grievance update.
One of the trading partners informed that their last purchase from Gilford Limited, a subsidiary of Rimbunan Hijau Group (RH) was in June 2020. They have put in place a groupwide trade suspension on RH Group until the completion of investigation process. The other trading partner informed that they do not source from Gilford Limited but do source from their parent company, RH Group’s operation in Malaysia. Pertaining to allegations by GW, below are the latest update provided by trading partner: |
Case in progress |
56 | Salim Group | Indofood | Nov-18 | Alleged legal and labour violations. | Rainforest Action Network (“RAN”) / Indonesian Labour Rights Association (“OPPUK”) / International Labour Rights Forum (“ILRF”) The Human Cost of Conflict Palm Oil |
A complaint had been filed against PT PP London Sumatra Indonesia Tbk by RSPO Secretariat in October 2016 following the report published by RAN, OPPUK and ILRF. In November 2017, the RSPO Complaints Panel (“CP”) announced that an independent verification would be carried out to determine the veracity of the allegations. This independent verification was done on 8 June 2018 followed by a decision by RSPO CP dated 2 November 2018. It involves suspension of certificates of the audited units as well as demand for full audits of all other RSPO-certified units of Indofood’s palm oil subsidiary within three months. KLK has put on hold purchases from Indofood with effect from September 2016 pending a concrete action plan from Indofood / Salim to be made public. | Case closed |
56 | Samling Group | Myanmar Stark Prestige Plantation (“MSPP”) | Nov-17 | Alleged deforestation, land grabs and indigenous rights violations. | GreenPeace / Mighty Earth Rapid Response 11 |
KLK representatives engaged with Samling Group on 29 January 2018 and subsequently on 27 December 2018 where KLK reiterated its Policy and sought clarification on the allegations. They clarified its position on the allegations that are backed with supporting documents concerning their operation in Myanmar. Moratorium on land clearing activities on their Myanmar operation started since February 2017. HCV assessment has been conducted for the plantation in Myanmar by a licensed HCVRN assessor and activities to resume guided by the HCV assessment. | Case closed |
56 | Samling Group | LPF 0006 Samling-Lana | Dec-18 | Alleged clearance of forest. | GreenPeace / Mighty Earth Rapid Response 11 |
We were told that Samling was in the process of divesting their PNG concession in 2017. The divestment process had completed in early 2018. Samling has also committed to a moratorium on land clearing activities in their Indonesia operation. On the forest clearance allegation highlighted in Mighty Earth Rapid Response Report 11, Samling Group informed that the areas highlighted at Samling-Lana Plantations was actually harvesting of acacia trees planted within the Samling Group’s Licensed Planted Forest (“LPF”) concession and not oil palm. KLK representative has engaged with Samling Group on 10 June 2019. Samling Group confirmed that there is no new planting for oil palm in Jelalong LPF. The activities in the area was actually harvesting of acacia trees which were planted under the Licensed Planted Forest concession. | Case closed |
56 | Samling Group | Samling Jelalong | Jun-19 | Alleged clearance of forest. | GreenPeace / Mighty Earth Rapid Response 16 |
We were told that Samling was in the process of divesting their PNG concession in 2017. The divestment process had completed in early 2018. Samling has also committed to a moratorium on land clearing activities in their Indonesia operation. On the forest clearance allegation highlighted in Mighty Earth Rapid Response Report 11, Samling Group informed that the areas highlighted at Samling-Lana Plantations was actually harvesting of acacia trees planted within the Samling Group’s Licensed Planted Forest (“LPF”) concession and not oil palm. KLK representative has engaged with Samling Group on 10 June 2019. Samling Group confirmed that there is no new planting for oil palm in Jelalong LPF. The activities in the area was actually harvesting of acacia trees which were planted under the Licensed Planted Forest concession. | Case closed |
56 | Samling Group | Samling Timber Sdn Bhd | Jul-19 | Alleged clearance of forest. | GreenPeace / Mighty Earth Rapid Response 17 |
KLK representative has engaged with Samling Group on 28 July 2019. Samling Group confirmed that the area stated in report is for Industrial Tree Planting which has the Licensed Planted Forest (“LPF”) license and the area is planted with forest species. | Case closed |
56 | Samling Group | PT Tunas Borneo Plantations | Aug-19 | Alleged clearance of peat. | GreenPeace / Mighty Earth Rapid Response 18 |
KLK representative has engaged with Samling Group on 16 August 2019. Samling Group confirmed that the area is no longer within their concession as Izin Lokasi of the area had expired. However, they have conducted a site visit at the alleged area and found out there was land clearing by local community and a substantial land clearing by a mining company operating in the area. | Case closed |
56 | Samling Group | LPF008 Marudi & Batu Belah | Jan-20
Oct-21 |
Alleged clearance of forest. | GreenPeace / Mighty Earth Rapid Response 24 Mighty Earth Rapid Response 36 |
KLK representative has engaged with Samling Group on 3rd February 2020. Samling clarified that the alleged concession is called Marudi LPF but not Batu Belah. They added that the alleged area reported in Rapid Response 24 is planted with rubber – a project sponsored by government under RISDA for local community i.e. Long Panai. Other remaining areas are for Reforestation under the LPF area
Samling Group clarified that Marudi LPF is a reforestation area and there will be no oil palm planted at this area. Samling Forestry’s Unit is required to plant LPF with jungle trees as per the licence’s condition which is aligned with the Sarawak State Government’s pledged to plant 1 million hectare by 2025. They added that Marudi LPF is certified under Malaysian Timber Certification Scheme (MTCS) and the operation is comply with Malaysian Criteria & Indicators of the MTCS. Based on the allegation reported in MERR-36, BLD Plantations Bhd is sourcing from Samling. Trading partner confirmed that neither Samling nor BLD Plantation is a supplier to them. Trading partner has indirectly received from BLD mill back in May 2020 through its supplier. Trading partner had informed its supplier last year that they do not want to receive BLD/Samling in their supply chain anymore. Trading partner confirmed that BLD/Samling is no longer in its supply chain. In order to control its supply chain, trading partner informed that they always ask traceability data upfront to prevent non-compliance supplier entering to their supply chain. |
Case closed |
56 | Samling Group | Marudi & Batu Belah | Apr-20 | Alleged clearance of forest. | Mighty Earth Rapid Response 26 Mighty Earth |
KLK representative has engaged with Samling Group on 3rd April 2020.
Samling Group once again clarified that Marudi LPF is a Licensed Planted Forest (LPF) concession and there is no and will not have oil palm planting in the area. The Forest Plantation Certificate and summary report is available at their website. Indirect Supply: On 13 August 2021, representative from Glenealy Plantations updated KLK on its latest status. As part of transparency, they have published the following documents on its website which can be accessed here. a) High Carbon Stock (HCS) Recovery Plan b) A Declaration of Commitment to No Deforestation, No Peat, and No Exploitation (NDPE) c) Sustainability Report 2020 d) NDPE Policy (10 April 2020) e) NDPE Policy Implementation Plan (30 April 2021) f) Moratorium on New Land Development (15 April 2020) KLK will review the documents and discuss with other stakeholders on the action plans taken by Samling Group. |
Case in progress |
57 | Sampoerna Agro Group | PT Usaha Agro Indonesia | Dec-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 22 |
Indirect suppliers. KLK representatives engaged with trading partners in Dec 2019. Trading partner had engaged with Sampoerna Agro. PT Sampoerna Agro responded that the area was not belong to PT Usaha Agro Indonesia (“PT UAI”) and PT Sampoerna Agro already has commitment for no deforestation.
Updated Jan 2020 PT Sampoerna Agro responded that the area was not conducted by the company. The area in question belongs to community, where the landowners have no intent to relinquish their land to the company. |
Case closed |
58 | Sarawak Oil Palms Group (“SOPB”) / Shin Yang Group | Linau Sinar Sdn Bhd | Mar-19 | Alleged development of peat. | Mighty Earth Rapid Response 13 |
KLK’s representatives engaged with SOPB team in Mar 2019. SOPB explained that the company has its own board of directors and operates independently of Shin Yang. SOPB has suspended all new development prior to HCV and HCSA assessment with effect from 1 July 2018. The group committed to ensure that new development can only be carried out after the areas have passed the HCV and HCS assessment. If such studies indicate the presence of HCV and HCS in the areas, the identified areas will be classified as non-development areas and to be designated as conservation reserves. SOPB further confirmed the FFB from the alleged company do not enter SOPB mills and supply chain. | Case closed |
58 | Sarawak Oil Palms Group (“SOPB”) / Shin Yang Group | Dataran Linau Sdn Bhd (Lot 1 Block 14 Murum LD) | Jul-19 | Alleged land clearance preparation. | Mighty Earth Rapid Response 17 |
KLK representatives engaged with SOPB team in Jul 2019. SOPB informed that the company has started engagement with Linau Sinar in accordance with their Supplier Engagement Procedure. Linau Sinar Estate have been fully certified under the MSPO certification. SOPB further recommended to Linau Sinar to issue a moratorium on new clearing or planting of oil palms before performing HCV and HCS assessments. SOPB stated that the company will require more information and send representatives to conduct site verification of the alleged clearing by Linau Sinar as highlighted by Mighty Earth. If require, SOPB might engage a third-party to carry out due diligence audit at Linar Sinar. SOPB will provide more updates after the next meeting with Linau Sinar around October/November 2019.
Updated May 2020: Shin Yang informed that the alleged area was not within their concession. The relevant concession maps had been shared with SOPB for verification. |
Case in progress |
58 | Sarawak Oil Palms Group (“SOPB”) / Shin Yang Group | Shin Yang OP Planting area (LPF/0018) | Aug-19 | Alleged land clearance preparation. | Mighty Earth Rapid Response 18 |
KLK representatives engaged with SOPB team in Aug 2019. SOPB shared their supplier engagement report on Linau Sinar Sdn Bhd (LSSB) with KLK. SOPB informed that they will monitor closely the progress of LSSB in complying with SOPB OPSP, meantime will continue to buy FFB from LSSB. At the same time, SOPB will continue to follow up on LSSB HCV assessment progress and share report to SOPB, provide its clarifications in regards to ME reports. The next engagement meeting with LSSB is scheduled to be in Q1 2020.
Updated May 2020: SOPB reverted that SOPB and Shin Yang are separate legal entities. The policies of SOPB are set by a diverse and independent board representing various investors such as the State Government of Sarawak amongst others. No single investor is in a position to dictate over the decisions made or to be made by the Board. SOPB is engaging with Shin Yang. |
Case in progress |
58 | Sarawak Oil Palms Group (“SOPB”) / Shin Yang Group | Dataran Seping Sdn Bhd (Adam Oil Palm Estate) | Oct-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 20 |
SOPB confirmed that the Reported Company is a direct supplier to SOPB. As such, SOPB has contacted the Sustainability Unit of the reported company for a response in accordance with their Supplier Engagement Procedure. The Reported Company had confirmed that the alleged clearance had taken place inside its concession area. However, based on ground verification, the clearance reported was found to be due to encroachment by some local communities for the purpose of paddy planting. As the clearance activity is considered as encroachment, the reported company had met the local communities on 10/11/2019 to highlight the issue in order to prevent future encroachment inside its concession area. | Case closed |
59 | Shin Yang Group | LPF 0019 | Aug-21 | Alleged clearance of forest. | Mighty Earth Rapid Response 35 |
KLK representatives engaged with Sarawak Oil Palms Group (“SOPB”) team in Aug 2021. SOPB shared their supplier engagement report on Shin Yang Forestry deforestation allegation at LPF 0019 with KLK.
The outcomes of Shin Yang Forestry’s (“SYF”) investigation and verification are: On the other hand, Shin Yang Oil Palms Division (SYOP) as a supplier to SOPB, confirmed that it has differentiated management control from SYF. SYOP also reaffirmed compliance towards MSPO and SOPB’s Oil Palms Sustainability Policy, Supplier Code of Conduct, Stop Work Order since 1 January 2021, and cooperation on monitoring of concession and NDPE compliance verification. SYOP stated that it would not be liable for any allegations of land clearings carried out by SFY. Updated Nov 2021: In regards to concerns over conversion of LPF lands to oil palms plantation, SYF commitment on “no oil palm planting in LPF 0018 or in any LPF” is substantiated by law where oil palm planting in LPF is no longer permitted by the Sarawak state government effective since Jan 2021. These new rulings are part of the “Revised policy direction on industrial forest plantation in Sarawak” from the state Urban Development and Natural Resources Ministry. Details of the revised policy are published in the latest issue of Perkasa, a quarterly newsletter of the Sarawak Timber Industry Development Corp (STIDC). A news report is available here. Despite SYF is not a FFB supplier to SOPB, both SYOP and SYF had signed the SOPB Supplier code of Conduct (SCOC) and pledged an oil palm planting moratorium by 31st Dec 2020. |
Case closed |
60 | Sime Darby Group | Sime Darby Plantations Sdn Bhd (“SDP”) | Sept-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 19 |
KLK representatives engaged with Sime Darby on 11 September 2019 where KLK would like to sought clarification on the allegation. Sime Darby has then published a press release on 15 September 2019 on their corporate website. In the press release, Sime Darby confirmed that the alleged area falls outside of SDP’s operational area; approximately 100 meters away from Rajawali Estate boundary. This was followed by an on-site verification which further confirmed that the deforested area mentioned in the report directed to a neighbouring third party local agricultural company. |
Case closed |
60 | Sime Darby Group | Sime Darby Plantations Sdn Bhd (“SDP”) | Dec-20 | Alleged forced labour and child labour issues. | Liberty Shared (LS) Summary of Petition to Exclude Palm Oil Products Produced by Sime Darby U.S. Customs and Border Protection (CBP) |
KLK representatives engaged with Sime Darby Plantations Berhad (SDP) in Jan 2021.
With regards to the recent Withhold Release Order (WRO) issued by the United States Customs and Border Protection (CBP), SDP informed that the company is continuing its effort to secure details of the complaint from the US CBP including Liberty Shared (LS) who raised the petition. With the details, SDP is committed to take the necessary actions and work towards resolving any weaknesses in their system. SDP has issued a Press Release on 31 Dec 2020 in response to the CBP issuance of its WRO against SDP’s products. At this juncture, SDP informed that the main course of action for them to address the WRO is to work out exactly what failings the US CBP have found in their investigation and their expectations on measures to rectify these. There has been very little shared in terms of the underlying facts and details of the US CBP’s justification for the WRO. SDP also released a public statement on the 10 Jul 2020 that provides an inventory of the practices and approaches SDP has taken to address the areas of concern outlined in the petition. Further detailed information on these initiatives had been shared with the US CBP in the months following the petition, with the intention of receiving feedback on gaps and areas to prioritise. SDP informed that they have received no response to these submissions, so far. SDP indicated that they actively seek third party perspectives on opportunities to improve their Human Rights and labour programmes. Towards this end, SDP engaged PricewaterhouseCoopers (PwC) and an independent international NGO specialising in migrant worker rights, in Nov 2020. This builds on the support that SDP has been receiving from the Shift Project, an independent, non-profit centre for business and human rights, since 2016. It is also worth noting that all SDP operations undergo annual third party audits for Roundtable on Sustainable Palm Oil (RSPO) certification. This includes stringent requirements on labour practices. An initial review of audit findings conducted by the RSPO on the 31 Dec 2020, did not generate any red flags against SDP. RSPO Statement is available here. The RSPO will be continuing to investigate this further. Updated Mac 2021: SDP advised that they have appointed Impactt Ltd as a third-party assessor to its newly established Expert Stakeholder Human Rights Assessment Commission (the Commission) to conduct the labour assessment of its Malaysian operations. Impactt, is an ethical trade consultancy with specific expertise in detecting and remediating forced labour issues in company supply chains. SDP has also established a Stakeholder Panel to the Commission to review Impactt’s assessment methodology and forced labour indicators within SDP’s operations as well as proposed remediation plans. The members of the Stakeholder Panel include Shift – a leading center of expertise on the UN Guiding Principles on Business and Human Rights; Mr Andy Hall – a migrant worker rights activist and human rights researcher; and a Representative of the National Union of Plantation Workers (NUPW) – the largest trade union for plantation workers in Malaysia. SDP expects the independent assessment by Impactt to be completed by May 2021, following which the Commission’s findings and remediation measures will be shared by SDP to all key stakeholders and the public. SDP’s media statement on this development is available here. Updated Jul 2021: SDP announced the dissolution of its Expert Stakeholder Human Rights Assessment Commission (the Commission) to provide more time for an independent evaluation of its labour practices to be carried out. According to SDP, due to the strict movement and travel restrictions imposed throughout Malaysia as a result of the Covid-19 pandemic have meant that Impactt Ltd. (Impactt) has not yet been able to finish its assessment. SDP further announced that its Board’s Sustainability Committee shall take over the important oversight function over the evaluation exercise. The Sustainability Committee is chaired by independent director Dato’ Henry Barlow. The other members of the committee are senior independent director and chair of the Board Governance and Audit Committee Datuk Zaiton Mohd Hassan, chair of the Board Risk Management Committee Zainal Abidin Jamal, chair of the Board Nomination and Remuneration Committee Dato’ Halipah Esa, and Tunku Alizakri Raja Muhammad Alias. SDP committed that the evaluation will resume as soon as is practicable. SDP would continue to work proactively, moving forward with Impactt and other key stakeholders to review its operations. Updated Feb 2022: On 28 Jan 2022, the US CBP issued a Notice of Finding that certain palm oil and derivative products from Sime Darby Plantation Berhad (SDP) are produced using convict, forced or indentured labour. Subsequently, SDP issued a public statement announcing a range of improvements, changes and new measures that have been implemented across its Malaysian operations. This includes, steps taken for the reimbursement of recruitment fees, the adoption of a revised Responsible Recruitment Procedure (RRP), the implementation of a new way of “Social Dialogue” for worker engagement in the field, as well as, the strengthening of management structures and performance monitoring. SDP also informed that Impactt’s independent labour assessment is still underway and a summary of their findings will be shared with stakeholders by the end of the First Quarter 2022. Updated Feb 2023: On 3 Feb 2023, US CBP has modified its forced labour finding against Sime Darby Plantation Berhad (SDP) based on satisfactory evidence that SDP, its subsidiaries, and joint ventures no longer produce palm oil and its derivative products using forced labor. With immediate effect, the U.S. will allow shipments containing Sime Darby-produced palm oil and derivatives to enter the U.S. commerce, provided the imports are otherwise in compliance with U.S. law. Announcement is available here. On the same day, SDP published the same statement on its website. |
Case closed |
61 | SIPEF | PT Muara Agro Rupit | Jan-21 | Alleged clearance of forest. | Mighty Earth Rapid Response 32 |
Indirect suppliers. KLK representatives engaged with trading partners in Jan 2021.
Reference to the engagement of trading partners with SIPEF: The development on the PT Agro Muara Rupit (AMR) concession was approved through the RSPO New Planting Procedure (NPP) process1 in August 2014, at a time during which integrated HCV-HCS assessments were not a requirement and the HCSA methodology had not yet been approved as such. Subsequent to ratification of the current RSPO Standard, in November 2018, integrated assessments for new developments became the requirement. The current development has, however, undergone a standalone HCSA assessment, which is currently still under review by the HCSA Secretariat. No clearing within any of the HCS areas indicated in that report has been undertaken. SIPEF has issued its commitment to do integrated HCV-HCS assessments for new developments following the RSPO 2018 standard. For the existing pre 2018 developments the RSPO guidance was followed to ensure no HCS forest would be cleared in the ongoing development. AMR 3 & 4 concession is currently undergoing the NPP process. There has been no clearing in those areas, and there will not be until they have gone through the RSPO NPP requirements, which include the HCS assessment using the HCSA methodology. SIPEF also clarified that they have no association with PT Medco Papua Hijau Selaras (Capitol Group). |
Case in progress |
62 | STH Group | PT Makmur Bersama Asia | Oct-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 20 |
Indirect supplier. Trading partner had engaged with STH
STH informed that the land clearing conducted by local community and it is located outside of PT MBA. STH shared with trading partner a letter from Kepala Desa Tumbang Randang claimed that the land belong to them and not PT MBA. According to STH, PT MBA only conducted study as well as survey in the concession and it has also fulfilled the legal requirements. Dec 2019 – trading partner has conducted desktop analysis based on the concession map provided and confirmed that the land clearing is outside of the concession. |
Case closed |
63 | Sumber Tani Agung | PT Tantahan Panduhup Asi | Jul-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 17 |
Indirect suppliers. KLK representatives engaged with trading partners in Jul 2019. Trading partner has engaged with STA for clarification. Based on STA investigation, the alleged land clearing is located outside of PT TPA concession. STA clarified that PT TPA has conducted HCV and HCS by independent assessor, Aksenta. | Case closed |
64 | Sungai Budi Group | PT Tunas Baru Lampung | Sep-18 | Alleged no public NDPE policy. Alleged clearance of forest including peatland forest. Alleged breaches of community land rights. | Greenpeace Final Countdown |
KLK representatives engaged with Sungai Budi Group/ Tunas Baru Lampung team in Sept 2018. Continual monitoring status. Tunas Baru Lampung (“TBLA”) adopted and implemented Indonesian Sustainable Palm Oil (“ISPO”) guidelines. Several of TBLA’s estates have already obtained ISPO certification. For indirect suppliers, the progress is monitored via Grievance list of KLK trading partners. | Case in progress |
64 | Sungai Budi Group | PT Samora Usaha Jaya (B) | Sep-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 19 |
Indirect suppliers. KLK representatives engaged with trading partners in Apr 2020. Trading partners confirmed have stopped purchases from Sungai Budi Group since Feb 2018. |
Case closed |
65 | Surya Dumai | PT Kalimantan Agro Kencana | Oct-19 | Alleged land clearance preparation | Mighty Earth Rapid Response 20 |
Indirect supplier. Surya Dumai no longer exists in KLK supply chain since 2019. | Case closed |
66 | Ta Ann Group | Ladang Selezu Sdn Bhd | May-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 15 |
Indirect suppliers.
Trading partner has initiated engagement with Ta Ann since May 2019 to seek clarifications on allegation of deforestation. Ta Ann has provided written commitment in adhering to the NDPE policy and shared their concession maps for further investigation. Moratorium has been put in place. As part of the investigation, trading partner has conducted a field assessment from 22-27 July 2019 to verify the allegation. The field assessment has verified that the deforestation happened outside Ladang Selezu’s concession boundaries. |
Case closed |
67 | Tasma Puja | PT. Tasma Puja | Oct-21 | Allegations including: 1. Developing plantations in the areas of limited production forest (HPT) and convertible production forest (HPK) in Indragiri Hulu Regency, Riau 2. Accommodating, purchasing, processing, selling, and marketing oil pam products from illegally-grown plantations in Bukit Betabuh protected forest |
Tempo, Mongabay Indonesia, Betahita and Auriga Nusantara | Indirect supplier. KLK representatives engaged with trading partner in Oct 2021.
Trading partner is indirectly linked to PT. Tasma Puja (TP). According to the engagement between their third-party trader and PT. TP: |
Case in progress |
68 | Teladan Group | PT Teladan Palma Perkasa | Nov-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 21 |
Indirect suppliers. KLK representatives are engaging with trading partners in Nov 2019.
Updated Feb 2020: The concession in question does not belong to Teladan Group, as their location permit expired for more than 2 years. No activities were carried by Teladan Group since 2016 |
Case closed |
68 | Teladan Group | PT Tanjung Buyu Perkasa Plantation | Apr-20 | Alleged clearance of forest and land clearance preparation. | Mighty Earth Rapid Response 26 |
Indirect suppliers. KLK representatives engaged with trading partners in Apr 2020. Trading partner has engaged with their direct suppliers and was informed that the land clearing was not conducted by PT TBPP. Based on the concession map received from the company, it was verified that the land clearing happened outside their concession boundary. | Case closed |
69 | TH Plantation Berhad | PT Persada Kencana Prima | Apr-18 | Alleged clearance of forested peatlands. | Chain Reaction Research / GreenPeace Rapid Response 14 |
KLK representatives met with Sustainability Team of THP on 20 August 2018. KLK team reiterated its Sustainability Policy and sought clarification on the allegations. THP informed that they have put a stop work order on PT Persada Kencana Prima and Hydroflow Sdn Bhd since July 2018. The stop work order continues, pending a Board decision on the Group’s Sustainability Policy and Commitments which would be made public. A follow-up meeting was held between KLK representatives and Sustainability Team of THP on 24 April 2019. THP confirmed that the stop work order continues on Hydroflow since July 2018 and there are no heavy machineries placed within the estate. They also informed that no funds have been channelled to Hydroflow for any further development. THP shared that their Board has endorsed the Group’s Sustainability Policy and the Policy is now being finalised by Sustainability team and will be shared with all suppliers by May 2019. The Company is in the midst of revamping its corporate website and this Policy will be published once the website is live. KLK representative engaged with Sustainability representative from THP on 16th August 2019. The representative informed that the alleged area is located quite far away from their estate boundary. |
Case closed |
69 | TH Plantation Berhad | Pelita Meludam Sdn Bhd | Apr-18 | Alleged land clearing of peat. | Mighty Earth Rapid Response 14 |
KLK representative engaged with Sustainability representative from THP on 16 August 2019. The representative informed that the alleged area is located quite far away from their estate boundary. | Case closed |
69 | TH Plantation Berhad | Ladang Tabung Haji | May-19 | Alleged clearance of forest. | MIghty Earth Rapid Response 15 |
KLK representative engaged with THP on 12 June 2019 to seek clarification from the later on the alleged case. THP representative provided the chronology below:
I. Ladang Sawit Bintulu Sdn Bhd (LSB) owned two estates i.e; Ladang Semilajau (Semilajau) and Ladang Sebauh (Sebauh) in Bintulu. Probably, the people in Bintulu referred Semilajau and Sabauh as “Ladang Tabung Haji”. II. LSB was 100% owned by TH Ladang (Sabah & Sarawak) Sdn Bhd (THLSS). THLSS in turn is wholly-owned by Lembaga Tabung Haji (LTH). III. In June 2008, LSB (a company) sold its properties, Semilajau and Sebauh to a third party. Neither THLSS nor LTH was a public listed company. There is no requirement for them to make any public announcement. IV. As of June 2008, Semilajau and Sebauh are no longer properties belongs or related to LTH Group. LSB became a dormant company. V. TH Plantations berhad (THP) is a public listed company, a subsidiary of LTH. THP assist LTH to manage LTH’s Oil Palm Estates. VI. On April 1 2009, THP announced its purchase of 100% equity interest in LSB from THLSS for RM 200,000. LSB was a dormant company without owning any properties. VII. In summary: |
Case closed |
69 | TH Plantation Berhad | New Oil Palm Plantation | Apr-20 | Alleged clearance of forest. | The Chain Allegation here |
KLK representative engaged with THP on 13 April 2020 to seek clarification from the later on the alleged case. THP representative reconfirmed on their commitment with regards to the NDPE Policy.
On the alleged case, they clarified that THP had entered into a Management Agreement with Deru Semangat Sdn. Bhd. (“DSSB”) in year 2015 to manage their oil palm plantation of approximately 30,000 acres in the Mukim of Tembeling, Jerantut, Pahang. THP merely acts as a management agent and is not the owner of the land. DSSB is a joint venture company between Lembaga Tabung Haji and the Pahang Royal Family. In 2019, the new top management of THP which took over the helm of the THP Group decided to terminate the Management Agreement with DSSB. The parties are now finalising the agreements and documentations to that effect and the handing over process had been scheduled to be in March this year. However, the Movement Control Order (MCO) in Malaysia that had been imposed by the government had put matters on hold and the parties now hope to complete the handing over soonest once the MCO is lifted. In January 2021, THP representative shared with KLK that THP had terminated the management agreement with DSSB on the 23rd December 2020 and was effective on the 15th January 2021. They are currently working on the recovery plan and KLK will continue engage with THP on this. KLK has put on hold new purchases from THP with effect from October 2020 pending a concrete action plan from THP to be made public. |
Case in progress |
70 | Tradewinds | Trans Kenyalang Sdn Bhd | Aug-19 | Alleged land clearing of peat forest. | Mighty Earth | KLK representative engaged with Tradewinds on 16 August 2019 to seek clarification on the allegation. Tradewinds representative confirmed that the alleged area is located outside of their estates concession. | Case closed |
71 | Triputra Agro Persada Group (“TAP”) | PT Dwiwira Lestari Jaya | Feb-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 12 |
Indirect supplier. KLK representatives engaged with trading partners in Feb 2019. Trading partners engaged with TAP. HCV study was conducted in the year 2014, HCS study in the year 2015 and HCS Approach study was also conducted, in the year 2016 by HCSA registered assessor (“BIOREF-IPB”). Trading partner encouraged TAP to submit the HCSA reports for HCSA quality review and to complete the process with HCSA summary report publicly available on HCSA website. The progress is monitored via Grievance list of KLK trading partners. | Case closed |
71 | Triputra Agro Persada Group (“TAP”) | PT Dwiwira Lestari Jaya | Jul-19 | Alleged land clearance preparation. | Mighty Earth Rapid Response 17 |
Indirect suppliers. KLK representatives engaged with trading partners in Jul 2019. Trading partner has engaged with their direct suppliers on the clearing and was informed that PT DLJ has carried out all required HCS and HCV assessments by registered assessors. The clearing identified was conducted outside the HCS and HCV areas identified in the assessment reports. PT DLJ has now submitted the HCS report for peer review. | Case Closed |
71 | Triputra Agro Persada Group (“TAP”) / Kirana Megatara | PT Putra Katingan Pratama | Jul-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 17 |
Indirect supplier. Trading partner had a physical meeting with TAP on 08 August 2019. TAP clarified that PT Putra Katingan Pratama is a rubber Plantation . TAP informed that it does not have any business relations with PT Putra Katingan Pratama, and that TAP and PT PKP are two separate business entities. | Case Closed |
72 | Tsani Hutani Abadi Group | PT RayatamaJaya (ex PT Rimba Karya Rayatama) | Apr-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 14 |
Indirect supplier. KLK representatives engaged with trading partner in Apr 2019. Trading partner has engaged with Tsani Hutani Abadi and confirmed new purchases suspended since Oct 2018. | Case closed |
73 | TSH Resources Bhd | PT Bulungan Citra Agro Persada | Nov-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 21 |
Indirect suppliers. KLK representatives are engaging with trading partners in Nov 2019.
Updated Feb 2020: TSH has commissioned Malaysian Environmental Consultants (MEC) to verify the allegation. Where it was concluded that the land use change was caused by fire spread into the concession from neighbouring area. As a RSPO member, TSH strictly adhered to no burn policy, and do not use fire for their land clearing activities. |
Case closed |
74 | Woodman Group | Adong Estate, Part of LPF 0004 | Jul-19 | Alleged peat development. | Mighty Earth Rapid Response 17 |
Indirect suppliers. KLK representatives engaged with trading partners in Jul 2019. Trading partner has stopped sourcing indirectly from Woodman since Jan 2019. Woodman confirmed to another trading partner by enclosing supporting documents, wherein: a. Adong Estate: the area belongs to other company (Samling Reforestation) for tree planting project. b. Liku Estate: the area is not within Woodman’s oil palm plantation, owned by local smallholder. |
Case closed |
74 | Woodman Group | Liku Estate, Part of LPF 0004 | Aug-19 | Alleged clearance of forest and land clearance preparation. | Mighty Earth Rapid Response 18 |
Indirect suppliers. KLK representatives engaged with trading partners in Aug 2019. Trading partner has stopped sourcing indirectly from Woodman since Jan 2019. Another trading partner shared their supplier engagement report on Woodman with KLK. Woodman confirmed to the trading partner by enclosing supporting documents, wherein: a. Baram Estate: the area belongs to other company (Samling Reforestation) for tree planting project. They plan to start planting by carried out the demarcation and drain construction. |
Case closed |
75 | Wings Agro | PT Gawi Makmur Kalimantan | Jun-21 | Alleged clearance of forest. | Mighty Earth Rapid Response 34 |
Indirect supplier. KLK representatives engaged with trading partner in July 2021.
Trading partner informed that they have incorrectly identified one mill as Jorong mill (PO1000001740) under Wings group. In fact, they did not source from any mills under Wings group in FY2020. |
Case closed |
76 | WTK Group | Southwind Plantation Sdn Bhd | Jul-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 17 |
Indirect suppliers. KLK representatives engaged with trading partners in Jul 2019. Trading partner has stopped sourcing indirectly from WTK since Jan 2019. Another trading partner has stopped entering into new contracts with WTK after February 2019. The last batch of palm product delivery from WTK ended in May 2019.
Updated Feb 2020: Trading partner confirmed that WTK was not involved in the land clearing. The clearance happened either outside their concession boundary or within “Native Dispute Land” inside their boundary. For illegal clearance within “Native Dispute Land”, police report has already been lodged. |
Case closed |
77 | Yuwang Group | Empresa (M) Sdn Bhd | Jul-19 | Alleged clearance of forest. | Mighty Earth Rapid Response 17 |
Indirect suppliers. KLK representatives engaged with trading partners in Jul 2019. Trading partner has stopped sourcing indirectly from Yuwang since Jan 2019.
Updated Feb 2020: Trading partner confirmed that land clearing was not conducted by the company, it happened outside their concession boundary. |
Case closed |
78 | 1. Widya Corporation
2. Unknown |
1. PT Mulia Inti Perkasa*#
2. PT Berau Karetindo Lestari* |
Oct-20 | Deforestation | 1. Bunge*
2. Sime Darby# |
Inquiries were received from our buyers on alleged deforestation at PT Mulia Inti Perkasa and PT Berau Karetindo Lestari. They were listed as a one of the external suppliers of Berau Palm Oil Mill (a management unit of KLK in East Kalimantan) in the 2018 RSPO audit report of this mill. The following clarification statement is intended to respond to the above. The alleged PTs of the above have been removed from the supply chain of Berau POM shortly after the above-mentioned audit. The mill has ceased receiving FFBs from them since October 2018. This is also reflected in the mill’s 2020 RSPO audit report. | Case closed |
79 | Yayasan Pelajaran Johor | YPJ Plantations Sdn Bhd (Ladang SSI Sg Ara) | Jan-21 | Alleged clearance of forest. | Mighty Earth Rapid Response 32 |
Indirect supplier. KLK representatives engaged with trading partner in Jan 2021.
Trading partner has classified this as an ineligible case as Yayasan Pelajaran Johor is not a supplier to them. Based on the RSPO’s definition of group ownership (refer here and here), a review of ownership documentation and shareholdings found that Yayasan Pelajaran Johor is not related at group level to trading partner’s supplier, YPJ Palm International Sdn Bhd. Updated May 2021: Trading partner has updated the investigation outcome on this case as listed in their ineligible list: Total concession area of Sungai Ara is less than 90 ha, where the entire concession was largely cleared prior to 2019. The remaining area of less than 5 ha which was developed in January 2019 is a combination of mixed scrub with pioneer species. After January 2019, there was no further land clearing. Since January 2020, the case was brought to YPJ’s attention and they have immediately developed a NDPE policy to demonstrate their commitment to adopt NDPE to guide their future development. |
Case closed |
80 | Yayasan Sabah | Innoprise Plantations Berhad | Oct-21 | Alleged clearance of forest. | Mighty Earth Rapid Response 36 |
Indirect suppliers. KLK representatives engaged with trading partners since May 2021.
Trading partner informed that through the investigation conducted by its supplier which includes document review, field verification on IPB concession maps and photo, they concluded that the land development is not related to oil palm operation. In fact, the activities were related to tree-planting mainly Laran (Neolamarckia cadamba) planting. However due to confidentiality, the supplier couldn’t disclose maps and the field visit report/photos with external stakeholder. Updated Mar 2023: In November 2021, when Malaysian authorities eased its Covid-19 movement control restrictions, our trading partner deployed a technical team, consisting of conservation, GIS and plantation sustainability experts to carry out field verification. Their team has visited the area to verify the condition on the ground. Drones were deployed for photo/video taking where the area is not easily accessible due to lack of roads. The outcome of their field visit is consistent with the supplier’s clarification where the area was indeed cleared for Laran tree planting. Mighty Earth has also reported the same case in their Rapid Response Report in 2021, where trading partner has responded the same and reported on their Ineligible listing. |
Case closed |
This grievance redressal list merely states what we are aware of at present, based on information gathered or feedback by direct or indirect suppliers at the time of publication. The information or decisions stated herein may not be relied upon for purposes of regulatory compliance, litigation or for similar purposes.