SUBJECT
Apical received non-compliance alerts claiming that there was forest clearance (51 Ha) located within the PT. Loka Indah Lestari (LIL) concession between January to September 2024.
In January 2026, Mighty Earth published Rapid Response Report 54. The report highlighted land clearing activities within the concession of LIL. The report claimed that between October 2023 and January 2025, there was a total of 401 ha of forest loss within the LIL concession. Satellite imagery also showed that between January 2025 and December 2025, there was a total of 339 ha of forest loss.
Apical received information from its key stakeholders that PT Loka Indah Lestari (LIL), one of Kencana Agri Ltd subsidiaries, has total land clearing post Dec 2015 to Nov 2025 amounting to 766 ha.
PROGRESS
October 2024
Apical recognises that Kencana Agri Ltd. has committed to NDPE principles as published in their 2018 Sustainability Report. Apical reached out to PT LIL to seek clarification regarding the above allegations.
December 2024
LIL responded that the land clearing is within the Cultivation Rights area (HGU) and intended for oil palm developement in order to fulfill the obligation of the concession holder. LIL also mentioned that the land clearing is not within the High Conservation area and High Carbon Stock forests (HCV-HCS). LIL (previously named as Sawindo Cemerlang) had conducted their HCV and HCS assessments which included a licensed assessor in the assesors team. The assessments were conducted in 2014 and 2015 respectively.
Based on Apical’s internal analysis, the land clearing appears to occupy the HCS forest that was previously identified which should be considered as a “No Go” area.
2025
Continuous engagement was made between Apical and LIL to clarify the deforestation alerts and to seek evidence.
January 2026
As LIL is still actively clearing forest area without adequate justification, Apical consider’s this as breach of NDPE commitments and has decided to stop sourcing from Kencana Agri Ltd. With the decision in place, we consider this case closed.
We continue to engage with Kencana Agri Ltd. to further understand the challenges at hand and support the process of re-entry into Apical’s supply chain following the grievance procedure requirements.
