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.
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.
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.
Apical has temporarily ceased entering new contract with Palma Serasih until they addressed the issue.
Apical had several engagement with Palma Serasih on the deforestation issues at GPM. We highlighted the need for land clearing moratorium and HCS assessment to be conducted. After series of meeting, Palma Serasih has agreed to stop land clearing but not committed to conduct HCS assessment.
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.
Based on the commitment by Palma Serasih, Apical has now resume sourcing from the company.
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, management of PT NAS has stopped all he clearing since 13 September 2020. It is now in the midst of conducting HCS assessment by independent consultant. The land clearing will stop until the assessment completed and accepted by management.
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 HCS area. Apical requested for the report to be shared, however, Palma Serasih need to seek approval from management.
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 need to discuss internally on the suggestion.
Palma Serasih informed that they are still studying on the NDPE policy in a group level as suggested by Apical. Palma Serasih shared the HCSA report of both PT GMP and PT NAS for Apical to review.
After several engagements conducted, no satisfactory response was received from Palma Serasih. Therefore Apical to stop sourcing from the company.