In March 2022, Friends of the Earth (FoE) and Walhi released a report – “No Consent Astra Agro Lestari’s land grab in Central and West Sulawesi, Indonesia”. The report claimed that PT Agro Nusa Abadi, PT Lestari Tana Teladan, and PT Mamuang, AAL are responsible for various violations of the environment, human rights, and governance.
The report claimed that the three subsidiaries are embroiled in protracted land conflicts with local communities in Central and West Sulawesi, accused of violent land-grabbing abetted by Indonesian security forces, and implicated in illegal deforestation, forest encroachment, and soil, air, and water pollution with negative impacts to communities’ livelihoods.
Apical reached out to PT AAL to investigate the above allegations
Apical held a meeting with Astra on the allegation. Astra informed that they are aware of the report and has provided them with its response in March 2022. AAL informed that they always operated in accordance with Indonesia law.
In a statement that AAL further clarify that PT Mamuang (Mamuang), PT Lestari Tani Teladan (LTT) and PT Agro Nusa Abadi (ANA) have always operated in accordance with the law in Indonesia and hold all the necessary permits to conduct their business and operations. None of these AAL subsidiary companies is involved in any illegal land acquisitions.
AAL also informed that all of its subsidiaries do not engage in any form of ‘land grabbing’ or human rights violations. As a responsible and sustainable operator with a long history in Indonesia, AAL take any overlapping land ownership claims extremely seriously and rely on the established legal system to resolve any ownership disputes.
On the environmental issue, AAL committed to running its business in an environmentally and socially sustainable manner, in compliance with all applicable laws. This includes managing its impact on the local environment and helping to support the livelihoods of local communities. Since 2015, ALL has formalised their commitment to the NDPE principles of “No Deforestation, No Peat Development, and Respecting Human Rights”, following which there has been no new development of land. NDPE is also a critical element of its 5-year sustainability plan (2021-2025), in which AAL outlines specific steps for each category.
Having investigated each of the allegations made in the FoE report in detail, AAL is confident in the processes that it has in place across the group to ensure that it is operating responsibly and in accordance with its operating procedures and in line with all applicable regulations. The statement can be found here