InfoSAWIT, JAKARTA – Rainforest Action Network (RAN) revealed peat damage scandal to supply palm oil for the world from illegal palm oil plantations in Rawa Singkil Wildlife Reserve (WR). The findings were published in investigation report “Carbon Bomb Scandals: Big Brands Driving Climate Disaster for Palm Oil”, heading to the 27th Conference of Parties (COP) which is still running in Egypt.
The investigation report described two cases of illegal palm oil plantations that supply palm oil products and used by world class consumer goods – producers.
The first case revealed palm oil plantation which is illegally operating in Village of Ie Meudama, Sub district of Trumon, District of South Aceh. Fresh fruit bunch (FFB) production was gathered before it was sold to mills around and then supplied to the global supply chain. The plantation was mastered by Mahmudin – a local businessman in South Aceh. Mahmudin also operates the second facility which is FFB collection spot in Village of Sigleng. RAN proved that Mahmudin has illegal palm oil plantations that operates in Rawa Singkil WR – the area within high conservation status, according to the legal in Indonesia. It means, the plantations illegally operate and violate the regulations in Indonesia.
The supply chain traceability found the evidence of FFB selling from Mahmudin’s plantations to FFB collector - CV. Buana Indah then supplied it to the mills of PT. Runding Putra Persada (PT. RPP). RAN also revealed that in 2019 that CV. Buana Indah supplied FFB to mills of PT. Global Sawit Semesta (PT. GSS).
Besides CV. Buana Indah, FFB from Mahmudin’s plantations was sold to other FFB collectors - CV. Natama Prima which supplied FFB to PT. GSS. The big brand – companies, such as, Colgate-Palmolive, Ferrero, Mondelēz, Nestlé, PepsiCo, Procter & Gamble, and Unilever bought palm oil both from one and the two mills. That is why such companies are involved in illegal palm oil operation from Mahmudin’s illegal plantations in Rawa Singkil WR
The second case is the illegal palm oil plantations of Nasti – a local business woman in Village of Binanga, City of Subulussalam, Aceh Province. Nasti operates a 27 hectare – palm oil plantations also in Rawa Singkil WR.
The investigation revealed that FFB from Nasti’s palm oil plantations was gathered and transported by middlemen called Alpian to the mills of PT. Bangun Sempurna Lestari (PT. BSL). PT. BSL sold CPO to Musim Mas – a giant palm oil refinery in Belawan Port North Sumatera Province.
Musim Mas is the main supplier to multi-national companies through its giant business called Inter-Continental Oil and Fats (ICOF) by having distribution access worldwide, including to USA, Europe, Japan, and China. Not only that, the mills of PT. BSL is CPO supplier to big brand – companies, such as, Procter & Gamble, Mondelēz, Nissin Food, Nestlé, PepsiCo, and Unilever.
“The companies should expand monitoring/traceability system and collaborative deforestation response in Aceh so that they effectively know how to deliver justice and commitment in every supply chain that may be risky to damage forests in Aceh namely in Leuser Ecosystem Area,” Director of Forest Policy RAN, Gemma Tillack said, as in the official statement to InfoSAWIT recently.
Gemma also mentioned RAN sued multi-national brand companies to stop CPO supply from illegal plantations belonging to Mahmudin and Nasti in Rawa Singkil WR and the mills which were found in the investigation because their production derived from illegal ones.
“The companies, such as, Procter & Gamble, Mondelēz, and Nissin Foods should do collaborative action and effective implementation to stop their business with every supplier which is not committed to zero deforestation, zero development in peat, and zero exploitation in theirs,” he said. (T2)
