SUBJECT
On 17 January 2017, Greenpeace published a report, “Dirty Bankers” accusing three companies owned by Bumitama (PT Andalan Sukses Makmur, PT Karya Bakti Agro Sejahtera and PT Ladang Sawit Mas) involved in deforestation, destruction of HCV forest, development on peatland, developing without permit, and failure to meet timetables in pursuing for RSPO certification.
In the report, “Moment of Truth” released in March 2018, Greenpeace published visuals of drone footage captured on 11 December 2016 that revealed a new canal cutting into peatland forest from the PT Damai Agro Sejahtera (PT DAS) oil palm concession within the Sungai Putri peatland landscape of Ketapang district, West Kalimantan. The landscape is a vital habitat for orangutans and other endangered wildlife.
On 19 September 2018, Greenpeace published Final Countdown, Now or Never to Reform Palm Oil Industry report alleging Bumitama involved in scheme to obscure control of a number of concession areas and plantations which either did not have permits or where the permits had been revoked. The scheme was also to mislead RSPO into closing complaints against Bumitama.
PROGRESS
In January 2017, Bumitama has proactively informed us the claims made by Greenpeace, and sent us a letter of clarification on the allegations made against the company.
Apical will continue to engage with supplier and monitor further development of the case.
28 May 2018: Apical had sought clarification from Bumitama on the Greenpeace report, Moment of Truth. They responded by stating that the image featured on page 4-5 of the report was taken on 11 December 2016 – before the acquisition of PT DAS by Bumitama on 20 December 2016.
Upon takeover, Bumitama’s management had issued a strict stop-order for any plantation development until all requirements under the RSPO New Planting Procedure and NDPE are fulfilled.
With regards to allegations in the recent report, “Final Countdown”, Bumitama responded in a statement in related to PT GHL and PT HPA. The response is available here. The company also in a news release, is firmly stands by its commitments stated in its 2015 Sustainability Policy of NDPE. As a continuous improvement measure, it will adopt all constructive input to carry on improving the existing policy, procedures and processes as well as its communication to deliver and share the commitments in line with the set time-bound plans.
UPDATES
1. Allegation: Bumitama subsidiaries; PT Andalan Sukses Makmur (ASM), PT Karya Bakti Agro Sejahtera (KBAS) and PT Ladang Sawit Mas (LSM) involved in deforestation, destruction of HCV forest, development on peatland, developing without permit, and failure to meet timetables in pursuing for RSPO certification.
Clarification obtained: Bumitama’s sustainability policy requires the handling of any arisen conflicts through bilateral engagement with relevant parties in an open, equitable, objective, transparent, legal and constructive manner. All past complaints lodged against the operations of Bumitama were resolved through engagement with the complainants, followed with independent verification and supplementary assessments such as peat delineation survey, rapid HCS assessment and rapid biodiversity study. The RSPO complaint updates can be found here:
PT ASM – Case: GR-000916 (site.com)
PT LSM – Case: GR-000902 (site.com)
PT KBAS – Public Summary for HCV assessment provided here. HCVN peer review satisfactory outcome as of September 2016 (Size of Development Area (6680 ha), Total Conservation Area (396 ha).
2. Allegation: Greenpeace published visuals of drone footage captured on 11 December 2016 that revealed a new canal cutting into peatland forest from the PT Damai Agro Sejahtera (PT DAS) oil palm concession within the Sungai Putri peatland landscape of Ketapang district, West Kalimantan.
Clarification obtained: The image featured on page 4-5 of the report was taken on 11 December 2016, before the acquisition of PT DAS by Bumitama on 20 December 2016.
3. Allegation: Bumitama has a scheme to control concessions that have no permits (permits revoked)
Clarification obtained: Bumitama is operating legally in accordance to the laws and regulations of Indonesia.
- Development of the 119,162 ha mentioned in the prospectus for oil palm plantation is based on the rights of the IUP holder and is therefore not uncertified. Both the older (UU 18/2024) as well as the current (UU 39/2014) Plantation Act recognize the Plantation Business License (IUP) as the permit for a plantation company to cultivate land.
- Application for the extension of expired Ijin Lokasi has been requested and the group has applied for the HGU in respected of the 101,820 ha under the expired Ijin Lokasi. The extension of the expired Ijin Lokasi is not usually required for land that is in the more advanced processes of obtaining HGU certification. At the latest practicable date, 101,820 ha of the groups expired Ijin Lokasi (excluding plasma program) are under the application process for HGU certification.
4. Allegation: Bumitama misled RSPO into closing complaints against them.
Clarification obtained: All past complaints lodged against the operations of Bumitama were resolved through engagement with the complainants, followed with independent verification and supplementary assessments such as peat delineation survey, rapid HCS assessment and rapid biodiversity study. The details of the complaint updates can be found on the RSPO Complaints Portal.
5. Allegation: Against PT Gunajaya Harapan Lestari (GHL) and Hati Prima Agro (HPA) for land permit, legality and license validity issues.
Clarification obtained: The complaint against HPA and GHL were issues from 2010 and 2013 which were highlighted again in 2018. Our 2015 Sustainability Policy has resolved these issues. GHL has received its RSPO certification in 2023 and has conducted HCV compensation (https://mutucertification.com/wp-content/uploads/2023/06/RSPO-ASA-4-Summary-Report-of-Pembangunan-Raya-POM-PT-Agro-Sejahtera-Manunggal-subdiary-of-Bumitama-Agri-Ltd.pdf). The HPA grievance case in the RSPO Complaints Portal has been closed (Case: GR-000932 (site.com) )
Based on the above action that have been taken by Bumitama, we consider this case closed.
