SUBJECT
A report by Mighty Earth published on 4 April 2020 claimed that PT Sawit Lamandau Raya (PT SLR) and PT Jaya Jadi Utama (PT JJU), a subsidiary of CBPIH, of deforestation. In the Rapid Response Report 26, clearing 22 hectares of forest between 19 September 2019 and 27 March 2020 at PT SLR. Meanwhile on PT JJU, there was 14 hectares clearing reported and another 163 hectares were prepared for clearance in the concession between 24 May 2019 and 24 March 2020.
PROGRESS
April 2020
We seek clarification from CBPIH on the allegation involving 2 subsidiaries. CBPIH in a letter stated that both companies are properly registered under Convertible Production Forest (Hutan Produksi Konservasi) land licensing with valid forestry IPKH approval. It is their policy to strictly adhere to no illegal logging or deforestation activities within our land concession.
Apical to further engage with CBPIH.
May 2020
CBIPH again clarified that all the planting done in both concessions is in accordance with approval IPKH from Dinas Kehutanan. CBIPH shared the necessary documents with Apical.
April 2025
Apical notes that the following action has been taken by CBIP Group for the following subsidiaries:
- Planting in PT SLR and PT JJU has been done in accordance with approval by the IPKH from Dinas Kehutanan.
- PT Sawit Lamandau Raya has conducted a High Conservation Value (HCV) Assessment in 2018. There are no plans to carry out a High Carbon Stock (HCS) assessment.
- PT JJU has no plans for new clearing and has committed to a Stop Work Order (SWO) since Sept 2022. There are no plans to conduct an integrated HCV-HCS assessment.
While the above measures have been taken, it has still not met the satisfactory level of sustainability compliance required by Apical. As such, Apical has decided to stop sourcing from the group until more commitment is displayed.
Apical is open to further discussions and collaboration to achieve NDPE compliance.
