SUBJECT
On 8 March 2019, Mighty Earth released the Rapid Response Report 13. The report alleged PT Global Primatama Mandiri (PT GPM), a subsidiary of Palma Serasih Group of clearing a total of 102 ha of forest in the PT GPM concession between 4 January 2019 and 7 February 2019.
Based on our supply chain alert system in August 2020, there was a potential forest clearing happening inside PT Nusantara Agro Sentosa (PT NAS). It indicated about 262 ha of clearing conducted between Jan 2020 to 31 August 2020.
PROGRESS
March 2019
Apical demanded clarification from Palma Serasih Group with regards to the allegations made in the report.
As no response received, Apical has issued two reminders to Palma Serasih.
April 2019
Apical had a meeting Palma Serasih Group to discuss on the allegation. Palma Serasih informed that they conducted HCV assessment from August 2016 to December 2016 by third party consultant, PT Gagas Dinamiga Aksenta. Based on the HCV report, the alleged land clearing is outside of the HCV areas.
Apart from the HCV, they also conducted a survey of Population and Habitat of Orangutan by Borneo Orangutan Survival Foundation in May 2016. They also clarified that its operational activities has obtained all the legality / permits required.
Apical recommended for Palma Serasih to conduct HCS and they’re currently looking into this. We will monitor the progress.
July 2019
Apical has temporarily ceased entering new contract with Palma Serasih until they addressed the issue.
March 2020
Apical had several engagement with Palma Serasih on the deforestation issues at GPM and highlighted the need for land clearing moratorium as well as HCS assessment to be conducted. After series of meeting, Palma Serasih has agreed to stop land clearing but not committed to conduct HCS assessment.
April 2020
Apical emphasized again the importance of HCS Assessment to be conducted PT GPM in preventing any deforestation. Palma Serasih agreed to conduct HCS assessment once the Covid-19 outbreak is cleared.
June 2020
Based on the commitment by Palma Serasih on carrying out HCS assessment, Apical has now resume sourcing from the company.
September 2020
Apical requested for clarification on our internal monitoring system that found a potential forest clearing happening inside PT Nusantara Agro Sentosa (PT NAS).
Palma Serasih informed that the clearing was not in a forest area. However, the management of PT NAS has stopped all the clearing since 13 September 2020. It is now in the midst of conducting HCS assessment by an independent consultant. The land clearing will stop until the assessment completed and accepted by management.
Jan 2021
Apical received another report that PT NAS has continue to clear the land despite commitment earlier that clearing has stopped while conducting HCS assessment. According to Palma Serasih, HCS assessment has completed in October 2020 in both PT NAS and PT GPM. They clarified that the clearing was not in the HCS areas. Apical requested for the report to be shared, however, Palma Serasih need to seek approval from their management.
Feb 2021
Palma Serasih agreed to share the HCS report but required NDA to be signed by both parties. At the same time, Apical highlighted the importance for Palma Serasih to develop NDPE policy. Palma Serasih needs to discuss internally on the suggestion.
April 2021
Palma Serasih informed that they are still studying on the NDPE policy in a group level as suggested by Apical. Palma Serasih shared the HCS assessment report of both PT GMP and PT NAS for Apical to review.
October 2021
After several engagements conducted, no satisfactory response was received from Palma Serasih. Apical has stopped sourcing from the company.
August 2025
Apical re-engaged with Palma Serasih as they have taken steps towards addressing their sustainability concerns and acknowledged that positive steps have been taken to address the deforestation issues as a group. These steps taken include the following:
- Liability Assessments completed between 2015 to 2023 by a 3rd party consultant
- NDPE policy completed and published by 1st November 2021
- The HCV and HCS assessments for subsidiaries with existing land bank as below have been peer reviewed by HCVN with a satisfactory outcome
- A timebound recovery plan has been developed from 2025 to 2050 highlighting both in-situ and ex-situ recovery which goes beyond their estimated liability
With the above steps taken, Apical has resumed sourcing from Palma Serasih and continue to monitor the progress of the recovery plans closely.
We consider this case closed.
February 2026
Apical’s internal deforestation monitoring detected land clearing at two Palma Serasih subsidiaries; PT Anugerah Lahan Kaltim and PT Anugerah Energitama Gunung Tabur totaling approximately 500 ha between January 2025 – January 2026. Apical sought clarification from Palma Serasih.
April 2026
Palma Serasih informed Apical that they are unable to provide clarification related to the allegations. Since no satisfactory response was received, Apical’s decision is to suspend sourcing from Palma Serasih group.
We note this as a re-opened case and consider this closed.
