A report by Eyes on the Forest (EoF) published on 6 April 2016 highlighted that Apical and other companies had sourced CPO from palm oil mills receiving illegal FFB grown inside the Tesso Nilo National Park and government-protected areas. Report can be found here. RGE was named alongside Apical in the report. RGE is the management service company of Apical with no direct involvement in our operations.
We communicated immediately with the implicated palm oil suppliers to alert them of EoF’s report and sought clarification on the matter and measures they have taken. They have also been instructed to enforce measures to address the matter.
In order to ensure no illegal FFB sources enter our supply chain, we have instructed the implicated supplying mills to take the following immediate actions:
- Stop sourcing FFB from the identified FFB suppliers.
- Erect signboards of ‘No illegal FFB’ at their mill entrances.
- Request their FFB suppliers/dealers to sign declaration letters that they will not supply illegal FFB to the mill.
- Conduct a socialisation meeting with their FFB suppliers/dealers on the illegal FFB issue.
- Record the origins of all their third-party sourced FFB.
Apcial has visited one of the implicated suppliers located next to Tesso Nilo National Park together with TFT and we have found appropriate action taken to ensure no illegal FFB sourcing. However, recognizing the landscape issue in Tessa Nilo National Park, Apical will continue to monitor closely the FFB sourcing from this area.
Apical has stopped sourcing since June 2016 from PT Peputra Supra Jaya – mill which in the report claimed received illegal grown FFB.