SUBJECT
On 11th November 2024, Rainforest Action Network (RAN) published a report titled ‘Orangutan Capital Under Seige’. Prior to publishing the report, RAN did reach out to Apical in October 2024 to highlight the concerns and requested for clarification.
The report primarily highlighted illegal deforestation within the Leuser Ecosystem located in Sumatra. One of the allegations within the publication is that PT. Global Sawit Semesta (PT. GSS), a supplier of Apical, is sourcing illegal FFB from the Rawa Singkil Wildlife Reserve (RSWR), located within the Leuser Ecosystem through a supplier, UD Iqbal Jaya.
Additionally, the report also alleges that a palm oil collection point operated by a land speculator located in le Meudema village, UD Daya, is supplying to PT.GSS. The allegation is that UD Daya is involved in active deforestation, canal development and accepting illegal FFB from inside the RSWR.
PROGRESS
October 2024
Based on the initial reach out by RAN to Apical, an investigation was initiated along with engagement with PT Global Sawit Semesta (GSS) for clarification.
Based on the initial investigation conducted and the preliminary findings issued by RAN, as a precautionary measure, PT GSS suspended UD Iqbal Jaya as of 25 October 2024, and any crops delivered from this supplier have been rejected through PT GSS’ weighbridge system until investigations are concluded.
Separately, the PT GSS FFB sourcing team have confirmed that UD Daya is not a supplier of FFB to PT GSS but is supplying to another mill by the name of PT. Aceh Trumon Anugerah Kita (PT. ATAK). Apical does not source from PT. ATAK.
November 2024
Apical will continue to engage with PT.GSS for a complete investigation and to identify systemic changes that need to be improved for their traceability, NDPE compliance and adherence to Apical’s Sustainability and Sourcing Policies.
December 2024
After thorough consideration, Apical management has decided to stop sourcing from PT. GSS as of end of November 2024. With the decision in place, we consider this case closed and encourage PT GSS to further strengthen their traceability systems to ensure that it mitigates the risk of any FFB sourced from illegal areas, before any consideration is made for future sourcing by Apical.
