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PT Astra Agro Lestari

SUBJECT

In March 2022, Friends of the Earth (FoE) and Walhi released a report – “No Consent Astra Agro Lestari’s land grab in Central and West Sulawesi, Indonesia”. The report claimed that PT Agro Nusa Abadi, PT Lestari Tana Teladan, and PT Mamuang, AAL are responsible for various violations of the environment, human rights, and governance.

The report claimed that the three subsidiaries are embroiled in protracted land conflicts with local communities in Central and West Sulawesi, accused of violent land-grabbing abetted by Indonesian security forces, and implicated in illegal deforestation, forest encroachment, and soil, air, and water pollution with negative impacts to communities’ livelihoods.

PROGRESS

April 2022

Apical reached out to PT AAL to investigate the above allegations

May 2022

Apical held a meeting with Astra on the allegation. Astra informed that they are aware of the report and has provided them with its response in March 2022. AAL informed that they always operated in accordance with Indonesia law.

In a statement that AAL further clarify that PT Mamuang (Mamuang), PT Lestari Tani Teladan (LTT) and PT Agro Nusa Abadi (ANA) have always operated in accordance with the law in Indonesia and hold all the necessary permits to conduct their business and operations. None of these AAL subsidiary companies is involved in any illegal land acquisitions.

AAL also informed that all of its subsidiaries do not engage in any form of ‘land grabbing’ or human rights violations. As a responsible and sustainable operator with a long history in Indonesia, AAL take any overlapping land ownership claims extremely seriously and rely on the established legal system to resolve any ownership disputes.

On the environmental issue, AAL committed to running its business in an environmentally and socially sustainable manner, in compliance with all applicable laws. This includes managing its impact on the local environment and helping to support the livelihoods of local communities. Since 2015, ALL has formalised their commitment to the NDPE principles of “No Deforestation, No Peat Development, and Respecting Human Rights”, following which there has been no new development of land. NDPE is also a critical element of its 5-year sustainability plan (2021-2025), in which AAL outlines specific steps for each category.

Having investigated each of the allegations made in the FoE report in detail, AAL is confident in the processes that it has in place across the group to ensure that it is operating responsibly and in accordance with its operating procedures and in line with all applicable regulations. The statement can be found here

October 2022

Apical held further engagement via a meeting with PT AAL on the allegations raised. Astra has informed that an open response (available here) has been provided with further clarification. PT AAL has reaffirmed that the company operates in accordance with sustainable best practices and Indonesia law. Information of the allegation with clarification provided from the engagement with PT AAL on progress being made is as per listed below:

PT Mamuang:

  • The mill has been operating legally with operating permit (HGU) since 1997. The claimant of land (Hemsi) has not been able to demonstrate his land rights (SHM), which was confirmed by the local authority that no SHM was issued to him.
  • On the alleged criminalisation of farmer, the decision upheld by the court is on the theft of palm fruits by a few individuals. Police investigation has confirmed this.

PT Lestari Tani Teladan (LTL)

  • Based on an NGO report, “the local community has requested about 60-100 hectares of land to be enclaved from the HGU (LTL’s operating permit)”. This is consistent with PT AAL operating with legal operating permit.
  • As an ISPO certified mill, the price of FFB is determined according to Dinas Perkebunan (local authority in Indonesia) which ensures transparent FFB pricing.

PT Agro Nusa Abadi (ANA)

  • Based on clarification, 730 ha of land is still in the process of completing compensation. It is a common legal process for compensation and acquiring ILOK/IUP/HGU (operating permit), ANA has demonstrated evidence that they are abiding by the laws and due process.

Apical continues to monitor the development of this case. Meanwhile, we reaffirm a prudent approach and ensure no sourcing from the reported subsidiaries of PT AAL enters into Apical’s supply chain until significant progress is made on the alleged violations or the case is resolved.

April 2023

PT AAL has published a response statement in clarifying allegations raised by complainants.

PT AAL also committed to appoint an independent third party to review the allegations and to publish the findings of the investigation. On March 31st, PT AAL made an announcement that EcoNusantara has been appointed as a third party verifier for a period of 6 months, starting April 2023.

Apical continues to monitor the progress of this case and will engage with PT AAL management to follow up on the commitments and progress of the investigation.

November 2023

Since engagement with EcoNusantara in April 2023, PT AAL published 15 progress updates regarding the 3 party verification. Subsequently, a joint PT AAL and EcoNusantara Verification Report was published which highlighted the following:

A study was carried out with relevant stakeholders and in parallel data collection on farmers’ land claims was carried out through:

  • In depth interviews
  • Identifying perceptions of parties to alleged problems
  • Collecting and tracing the legality of documents and tracing history of land ownership
  • Validation by government authority with parties

Here are some of the key findings from the verification:
i. PT Lestari Tani Teladan (PT LTT)

  1. Claim: PT LTT has seized 100 ha of community land and community had requested for 60ha of land to be released by the company through the regency government
    Finding: Community was asking for 4 ha of land for a public cemetery and 10 ha for a residential reserve area
    Recommendation: PT LTT to explore ways of accommodating the communities request for 14 ha of land for cemetery grounds and residential areas in conjunction with village officials and local government
  2. Claim: PT LTT has seized 1,505 ha of community land and the company has been operating in 321 ha of land outside the HGU concession
    Finding: HGU documents that Walhi/FoE documents were not the same HGU documents possessed by PT LTT issued by BPN
    Recommendation: It is recommended that FoE/Walhi provide further supporting evidence in relation to the HGU documents
  3. There was a documented attempt to resolve disputes with the community in Feb 2002 after which PT LTT agreed to fulfil 7 requests made by the community during 2022 – 2005.
  4. PT LTT does not have a plasma plantation and the HGU permit was obtained before the obligation for plasma plantations came into effect.
  5. Finding: There is a difference in the results of the laboratory tests on the well water of the Towiora Village by the Environmental Service (Dinas Lingkungan Hidup- DLH) of the Donggala Regency compared to the laboratory results on 6 samples at the PT LTT monitoring well issued by the Industrial Reach and Development Agency of Makassar. Lab testing by DLH was based on 1 community well sampling point.
    Recommendation: It is advised that PT LTT take a proactive measure in ensuring that the complaints are handled properly at the field level and that there is involvement of key parties, experts and relevant government and communities for acceptance and accountability.

ii. PT Mamuang

  1. Claim:
    • Land claims on Block C26 by Hemsi based on 22 documents of Land Transfer Letters and 9 SHM’s obtained from 2017 to 2019.
    • Hemsi has been detained 3 times by Pasangkayu and North Mamuju police
    Finding:
    • After analysis, object of dispute discovered to be outside Block 26 HGU of PT Mamuang
    • No facts found to support that there has been systematic acts carried out by PT Mamuang without any legal basis or rational reasons as a basisRecommendation:
    • There should be improvements in relations between PT Mamuang and Hemsi to be carried out in a peaceful approach and programs to improve welfare of the surrounding communities to be intensified
  2. Claim: Land claims on Blocks C14, C15, C16,17 and C22 (172 ha) by the Sinar Rio Jaya (SRJ) Farmers Group based on claim on transmigration reserve land, a copy of a letter from PT Mamuang and a Land Statement Letter (SKT) issued in 2004
    Finding:
    • The SKT is registered under Donggola Regency (Central Sulawesi) whereas the HGU location is in Pasangkayu Regency (West Sulawesi);
    • The 2 individuals that signed the SKT were not authorised to do so at that time
    • The SKT is not in compliance with the Decree of the Governor of Central Sulawesi dated Jan 1993Recommendation:
    • PT Mamuang establish a good relationship with SRJ Farmers Group through more intensive program approaches
  3. Claim:
    • Land claims by parties on behalf of the Tado Kabuyu (TK) Indigenous Community in Dusun Kabuyu
    • PT Mamuang seized 2,302 ha belonging to TK community
    Finding:
    • There are about 113 families of the TK community living in the area following customary rules and conduct farming along Pasangkayu river and have been living in Dusun Kabuyu for a long time
    • The Kabuyu village covers approximately 250 ha and was never a part of PT Mamuang’s HGU. Most of the original TK community does not own the land as it has been sold to immigrant communitiesRecommendation:
    • Interested parties should provide more detailed and precise data to confirm the object of the claim
    • PT Mamuang is advised to continue to intensify programs that can improve the welfare of the TK community so that they receive the same opportunities as other Indonesian people

iii. PT Agro Nusa Abadi (ANA)

  1. Findings:
    • In 2014, PT ANA obtained a renewal of the location permit for an oil palm plantation covering an area of 7,244.33 Ha in Petasia Timur District, North Morowali Regency which includes 7 villages. There is still land recognition on the PT ANA oil palm plantation business permit by the community in each of these villages in order to resolve land recognition disputes. Compensation for 3,680.21 Ha of land with SKT/SKPT rights has been carried out, leaving 730.80 Ha of land without compensation spread over 4 villages.
    • In 2021, PT ANA obtained a renewal permit for an oil palm plantation business in Petasia Timur Sub-district, North Morowali Regency covering an area of 7,035.97 Ha which includes 7 villages. To follow up on the HGU processing, PT ANA submitted an HGU application based on a clean and clear village administrative area, including 3 villages. Currently, one of the conditions for the issuance of the PT ANA HGU Decree for all 7 villages, has been issued on September 22, 2023. PT ANA is waiting for updates regarding the issuance of the HGU Decree.
    • From investigations carried out, both reviewing documents and interviews with parties, both government and company, it was confirmed that until the time the verification was carried out, PT ANA did not have an HGU. This is due to the fact that the HGU can only be given when all disputes on the land have been settled by the government. There is complexity in this process due to multiple validation and verification that produced different results and non-clarity on boundaries and markers. The HGU application process has been carried out by PT ANA since 2007.
    • At least 28 community members stated that they owned land within PT ATA palm plantation area with a total area of 1,695.27 Ha spread across 4 villages. It was identified that 795.13 hectares of the total claim land area was land that still overlapped between communities.Recommendation:
    • PT ANA and AAL to involve key parties including the government, community and NGO/other groups to move towards a resolution that is accepted by all parties
    • The involvement of the government as a mediator is strategic with regards to overlapping land rights claimed
    • PT ANA and AAL to complete the process of HGU once the permit area is clear and clean with the necessary legalities in place

February 2024

PT AAL has announced that it has re-appointed EcoNusantara to develop an Action Plan to implement the recommendations of the Verification Report, based on the allegations raised by Friends of the Earth in 2022.

April 2024

PT AAL has announced that they will be establishing an action plan to follow up on the Verification Report that was published by EcoNusantara. The Action Plan is being reviewed by the Robertsbridge team.

June 2024

A final action plan has been published by PT. AAL which include the key issues, verified results and proposed activities that will be implemented for a period of 3 years (2024 to 2026) to address the issues related to PT. Mamuang, PT. Lestari Tani Teladan and PT. Agro Nusa Abadi.

July 2024

PT. AAL has submitted a formal application to join the Roundtable on Sustainable Palm Oil (RSPO) as a member.

PT. AAL has published two Progress Reports (August 24’ & October 24’) since the publication of the Action Plan.

Below are the key updates:

August 2024

  • PT.ANA
    • The legal processes related to obtaining the HGU is still ongoing
    • Coordination with the local government to resolve overlapping land issues
    • The release of land to the Bunta community will be in line with the directives by the Governor of Central Sulawesi
  • PT.LTT
    • Efforts were made to secure a suitable land and permit for a new cemetery area. The land was previously a privately owned land but has been converted for communal use. A Memorandum of Understanding (MoU) was signed between all parties to formalise the agreement between AAL, the community and the government.
    • Two clean water facilities and sanitisation units were built in the Towiora village
    • AAL has sent samples of well water, ambient air and boilers to a nationally accredited laboratory in Makassar for testing. The local environment department of Donggala explained to the community that the testing indicated that PT. LTT’s waste has not been polluting the surrounding environment.
    • The PT. LTT waste management processes were explained to the community
    • A new grievance/whistleblowing channel mechanism was introduced to the community
  • PT.Mamuang
    • Staple food assistance is being provided to the Kabuyu community since Sept 2023 and is ongoing
    • Income-generating programs are being developed to improve the livelihoods of the Kabuyu community

October 2024

  • PT.ANA
    • The construction of the public cemetery area is in its final stages. The work was conducted by local contractors from the Towiora Village. A ceremony was held which was attended by the village head, local leaders and community members
    • Efforts are being made to work together with 6 villages and the government for a mutually acceptable solution to address their grievances
  • PT.LTT
    • Five communal wells and sanitation facilities have been built in the Towiora Village, supporting 100 families with access to clean water
    • Local support to support welfare continues, which includes scholarships for students, incentives for honorary teachers and capacity building programs for local healthcare staff
  • PT.Mamuang
    • Mamuang organised two gatherings with 4 villages to gather feedback on the implemented activities by PT. AAL
    • Feedback was obtained from the Tado Kabuyu village to implement more livelihood enhancement programs and cultural preservation

Dec 2024

PT.AAL received a letter from the Ministry of Law and Human Rights and three other government offices requesting clarification regarding a UN Special Rapporteur’s report on AAL.

The Government of Indonesia provided a response to the UN Special Rapporteur accordingly.

March 2025

PT.AAL published a detailed progress report which captures the actions taken as well as the challenges faced for the period of July-December 2024.

PT.AAL reiterated its willingness to engage with the grievance raisers (Walhi & FoE) to engage and discuss further on their findings.

August 2025

Following the 3-year action plan that PT. AAL has published in June 2024 post verification by EcoNusantara, PT. AAL has published a 3rd party verification report of the 1st year of the action plan (July 2024 to June 2025) for the three subsidiaries. During the 1st year of implementation PT.AAL has conducted field visits with two of their appointed consultants’ (Robertsbridge and Econusantara).

Key updates are as follows:

PT.LTT – Public Cemetery & Environmental concerns

  • LTT secured 1.2 ha of land for the development of a public cemetery. The official handover to the community is pending Waqf certification. A funeral handling training program is being organized with an Islamic Boarding school to reinforce community ties
  • Bi-annual tests for air, water and soil conducted alongside community members and 3rd party laboratories. PT. LTT will include community representatives to participate in the process in future. Collaboration with a university has enhanced their waste management practices and the recommendations are being studied for implementation

PT.MMG – Land conflict resolution

  • Dialogues held with the village heads, district officials and community leaders. The verification confirmed that there is no overlap with HGU areas.
  • MMG targeted local farmer groups for Good Agricultural Practices (GAP) trainings
  • MMG collaborated with a local NGO to provide capacity building for women which includes empowerment of their role and institutional strengthening
  • Staple food distribution carried out to 135 households and cultural preservation efforts as a result of a Re-Need Assessment
  • For the 1st half of 2025, AAL facilitated in the registration of 60 families in relevant social welfare programs

PT.ANA – Land conflict resolution

  • ANA has made direct engagement with the affected communities and has initiated participatory dialogue in each of the villages which involve community members, local leaders and village governments to address the issues faced
  • ANA continues and is committed to an inclusive conflict resolution

For a more comprehensive overview of the verification results, details of the progress of activities, the challenges faced and the next steps of the 1st year implementation of the action plan, you may view the full report here. Apical continues its engagement with PT. AAL to monitor the progress made by the three subsidiaries.

January 2026

AAL published a progress report on the 3rd semester of implementation for the period of July 2024 to December 2025. The key updates are as follows:

PT.LTT – Public Cemetery, Land Grabbing, Plasma & Environmental concerns

  1. Allegations on confiscated farmers land in Rio Mukti Village and Towiora Village:
    • The administration of the waqf grant document for public cemetery area was finally completed and the official handover of the Public Cemetery to the Towiora Village was carried out on 30th October 2025 with representatives present from the local government and security sector
  2. Allegations on illegally claiming community land and operating outside of the HGU permit:
    • AAL continues to engage with local CSOs in Central Sulawesi to ensure inclusive participation by civil society to better understand the issues on the ground
  3. Allegations on community demands for plasma plantations:
    • PT. LTT continues its internal process to identify potential partnership activities and prepare the necessary administration
  4. Allegations on well water pollution and sewage odor:
    • The environmental monitoring results of for the 1st half of 2025 has been socialized to the local community followed by a tour of the palm oil mill and mill waste processing facility

PT.MMG – Land conflict resolution, Criminalisation & Community Welfare

  • Allegations regarding Hemsi’s claim on Block C26:
    • PT MMG is still identifying further details regarding the community managing Block C 26, while discussing the best course of action internally.
  • Allegations on land claim on Block C22 by Sinar Rio Jaya Farmers Group:
    • The CSR team at PT MMG is still identifying the needs of the Maju Jaya women’s group and collaborating with (Volunteers for People and Nature) ROA to provide assistance and empowerment.
    • The CSR team at PT MMG is also exploring the potential for empowerment in the Rio Mukti community through discussions with the village head and (Badan Usaha Milik Desa) BUMDES.
  • Allegations on land claims by parties on behalf of the Tado Kabuyu Indigenous Community:
    • The CSR program at the Tado Kabuyu community which includes mosque renovation, construction of Bantaya, providing routine staple food and scholarship is still ongoing
  • Allegations of PT.MMG repeatedly criminalizing farmers in Panca Mukti Village:
    • HRDD training has been carried out to our internal team with the instructors from the National Human Rights Commission (Komnas HAM) and the Cipta Rukun Upaya Association (CRU Indonesia).
    • PT. MMG participated in the socialization of the implementation of Human Rights Prism by the Regional Office of Law and Human Rights of West Sulawesi province.
  • Issues related to community welfare in Panca Mukti village:
    • PT MMG empowered communities by providing training on freshwater fish farming.
    • PT MMG also provided scholarships to high-achieving children from the Pancamukti village community.

PT.ANA – Land conflict resolution

  • Allegation that PT ANA operates without a HGU permit and only based on location permit:
    • Coordination with the Regent of North Morowali regarding the Regional Integrated Team, re-verification of village validation, and follow-up information on land release
  • Allegation that PT. ANA has confiscated farmers land in 4 villages covering an area of approximately 5,000 ha:
    • AAL was invited to participate in a multistakeholder discussion organized by Ekonesia, a local civil society organization to explore approaches to address agrarian conflicts in oil palm plantations in the Central Sulawesi Province. Participants included representatives from government, local CSO’s and national observers on agrarian conflicts. The discussions concluded with a shared commitment among participants to work toward the establishment of a multi-stakeholder forum in the first half of 2026

The full report which contains details of the progress of activities, the challenges faced and the next steps of the AAL 3rd Semester Implementation of the action plan, may be viewed here. Apical continues its engagement with PT. AAL to monitor the progress made by the three subsidiaries.

March 2026

AAL reached out to Apical bilaterally to provide updates on the 3 entities.

PT.LTT

  • AAL clarified that the ongoing issues involving the local communities are based on the perception that they are entitled to the 20% plasma allocation, notwithstanding that the request was made prior to the obligation of PT.LTT taking effect.
  • There are some local community members initiating protest and encroachment due to the abovementioned misunderstanding and the promise by a few instigators that by pressuring PT.LTT, it will lead to their financial enrichment.
  • AAL clarified that there are plans by the local government to provide allocation of the 20% to plasma smallholders by 2029, during the renewal of the HGU.
  • AAL have provided Apical with evidence of the water assessments that have been conducted by PT.LTT and the PROPER certification (2023 to 2024). The water assessments that were lab tested indicate compliance with regulatory requirements and PT. LTT received a ‘blue’ rating for the PROPER certification which indicates full compliance with mandatory environmental regulations.

PT.MMG

  • Based on the initial land claims by Hemsi on Block C26, PT. MMG notes that while the legality of the land is still in dispute, it has been verified as belonging to PT MMG, but the land is still occupied. A portion of the land that was controlled by Hemsi was sold to a 3rd party. PT. MMG’s target is to engage constructively with the 3rd party purchaser for a peaceful resolution.

AAL extended an invitation to one of its stakeholders for a site visit to PT. MMG and PT. LTT in January 2026. However, in consideration of the stakeholder’s logistical constraints, the visit was subsequently redirected to AAL’s site in Riau, at the stakeholder’s request.

PT. ANA

  • AAL has shared documentary evidence regarding PT ANA’s HGU process which has been submitted to the Ministry of Agriculture and Spatial Planning/ National Defense Agency in Jakarta in July 2025. They are currently awaiting a response.