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Central Cipta Murdaya (CCM)

SUBJECT

On 19 September 2018, the Greenpeace published a report, Final Countdown: Now or Never to Reform the Palm Oil Industry. The report claimed that between 26 December 2014 and 8 March 2018, CCM subsidiary, PT Hardaya Inti Plantations (PT HIP) cleared 434 ha of forest including primary forest according to the Ministry of Environment and Forestry 2015 national land cover map.

Based on our internal monitoring system found that there was a potential forest clearing of 78 ha from Jan 2020 to June 2020 in PT HIP.

PROGRESS

7 September 2018

Apical demanded clarification from CCM on the allegations.

26 September 2018

PT HIP responded claiming that they have acted in compliance with all governmental requirements with regards to the development of the area mentioned in the report. PT HIP also has responded to Greenpeace on 19 September 2018 in regard to the allegation.

Based on desktop analysis, our finding is consistent with PT HIP clarification.

Apical will monitor future development of the case and gather information when necessary.

January 2019

Apical had a meeting with CCM. They’ve stop land clearing in all the concessions and currently in the process of conducting HCV-HCSA for all the concessions. They’re working with Aidenvironment in developing the sustainability policy.

Apical will continue monitor the progress of implementation.

February 2020

Apical conducted site visit under Priority Supplier Engagement Program at PT HIP. Based on the site visit, both Apical and PT HIP agreed to implement action plan in addressing the gaps identified during visit.

September 2020

Apical seek clarification on the potential clearing happening in PT HIP within first six month of 2020.

According to CCM, they have conducted verification on Apical report and found that the clearing was conducted by local communities for farming purposes. CCM also confirmed that no new land clearing conducted at PT HIP.