In October 2020, we received information from Procter & Gamble that WALHI Central Sulawesi submitted a complaint regarding land conflict at PT AAL’s subsidiaries; PT Mamuang, PT LTT and PT ANA.

The allegations are as follows:

• PT Mamuang allegedly seized 50 ha of land belonging to local farmers. The company has criminalised farmers from Panca Mukti Village. One community member was wrongfully criminalised on three occasions, and imprisoned as a result.
• PT LTT has allegedly seized approximately 100 ha from farmers in the villages of Rio Mukti and Tawiora. The company also implements an outsourcing system, mismatches working hours and fails to follow a wage system in accordance with Indonesian labour law, whereby the price of palm oil fruits produced by the farmers are determined by the company alone.
• PT ANA has allegedly seized 5,000 ha of land belonging to farmers of Molino Village, Bungintimbe Village, Tompira Village and Bunta Village, and is operating without a land use permit (HGU). The company is alleged to have only location permits, thus being in violation of local laws concerning taxation and regional income.

Wilmar immediately reached out to PT AAL to investigate the above allegations, where AAL has clarified accordingly. In November 2020, Wilmar also held a meeting with AAL for further discussion on the matter.

• PT Mamuang: PT AAL explained that since the 1990s, PT Mamuang has established and maintained a harmonious relationship with the surrounding community, especially because its existence has provided benefits to the community. Several media articles had also reported the positive relationship between PT Mamuang and the local community. News clippings available here and here.

With regards to the allegation of criminalisation, here is the summary of events that led to the arrest and imprisonment:

• In 2006, a claim was made against PT Mamuang for ownership of 8 ha of land. Albeit PT Mamuang is the legal owner of the land, and have obtained legal operating permits, PT Mamuang’s management was still willing to engage with the complainant from 2006 to 2016 via negotiations and mediation processes with local authorities; their efforts however yielded little success.
• Between 2017 to 2019, the complainant and his son allegedly engaged in activities that resulted in his son being convicted for criminal charges. As a result of this, he was imprisoned.

PT ALL reiterated that these were decisions made by legal authorities and the courts, with no influence from the company.

• PT LTT: The alleged land grab of 100 ha from local farmers has not been verified and PT AAL has sought for further information from the complainant in order to investigate the allegation. PT LTT clarified that it does not use outsourcing mechanisms or individual outsourcing for its operational activities. Determination of the price of Fresh Fruit Bunch (FBB) at PT LTT is carried out in accordance to the Regulation of the Minister of Agriculture of the Republic of Indonesia, Number 01 / Permentan / Kb.120 / 1/2018. PT LTT added that it has not received complaints from its farmers or farmer group institutions regarding pricing.
• PT ANA operates in accordance with all relevant legal permits. In the plantation development process, PT ANA always respects the rights of the community and ensures that each land tenure has gone through a process agreed upon with the community concerned.
  

Procter & Gamble (P&G) officially lodged the case with Wilmar in March 2021. P&G has played a pivotal role in our repeated attempts to engage with WALHI to better understand the details of the allegations raised. We understand that P&G are also working closely with the international non-profit and land rights advocacy organisation, Landesa. The purpose of this collaboration is to further strengthen P&G's grievance mechanism and resolution approach related to land rights cases, with a specific focus on ongoing concerns raised by WALHI in relation to PT AAL.

To accelerate progress, Landesa recommended an independent field verification to establish the facts on the ground. In March 2022 P&G commissioned and funded EcoNusantara (ENS), an independent advisory and consultancy expert to conduct field verification of the grievances submitted. The selection of ENS was made in consultation with and alignment of WALHI with local communities, PT AAL and Wilmar. ENS conducted the verification using an “open investigation” approach where every relevant party was informed in advance about the purpose of these activities. In addition to reviewing documents, in-depth interviews were conducted with key stakeholders, such as, WALHI National Executive and Sulawesi Central Regional Office, TUK Indonesia, PT AAL, the Sulawesi Plantation Department and Land Agency, Donggala District of Central Sulawesi Plantation Department and Land Agency and North Morowali District of Central Sulawesi Plantation Department. Direct face to face discussions were also held with community representative at six villages, including Panca Mukti, Tawiora, Bunta, Bungintimbe, Tompira, and Molino villages. All discussions were held in appropriate relevant local languages. ENS confirmed that all the stakeholders demonstrated goodwill, acted collaboratively during the interviews, and shared key information transparently in a way that is vital for the assessment and ultimate grievance resolution. ENS has transparently shared their findings in unilateral meetings with P&G, WALHI (held in Bahasa Indonesia), Wilmar and PT AAL. The final report was shared with Wilmar in September 2022. For more information on the outcome of the verification process commissioned by P&G, please refer to the executive summary report on the verification process prepared by P&G.

PT AAL on the other hand has engaged with the Conflict Resolution Unit (CRU) to evaluate their current human rights related practices. Incubated through the Indonesia Business Council for Sustainable Development (IBCSD) in 2015, CRU is a conflict resolution service agency that provides independent support for resolving conflicts in the management of agrarian and natural resources.

During the grievance investigation and verification process, we have closely engaged with all related parties, including PT AAL, P&G and ENS, where our last meeting was on 22 September 2022. PT AAL is committed to work towards the resolution of the case and more information related to their action plan will be provided in due course.

On  31 March 2023, PT AAL released their public statement on the appointment of ENS to carry out comprehensive independent verification on the issues raised.  The terms of reference (TOR) was finalised jointly with key stakeholders and supported by PT AAL’s sustainability consultant Robertsbridge Group. During the course of investigation, ENS will also open a complaint channel to capture issues raised by affected parties.  

On 12 May 2023, PT AAL published their progress update; where ENS will carry out the field assessment on the third week of May 2023 for initial set of interviews with community members, WALHI as the communities' advocate, and AAL related staff. On broader engagement level, ENS will be engaging with WALHI at local and national level, while Robertsbridge will be engaging with Friends of the Earth (US). 

ENS began the field verification process in late May 2023.  A kick off meeting between ENS and WALHI was scheduled; unfortunately, WALHI did not participate at the last minute.  Nonetheless, ENS commenced the field visits to affected communities of PT LTT, PT ANA, and PT Mamuang and the needs assessments in Toviora village, as planned.  By early June 2023, ENS had completed the field visits and the initial interviews with local government officials and community representatives, with the aim to identify locations of disputed land claims.

ENS conducted second phase of on-the-ground interviews starting from late June 2023 to verify findings from the initial interviews and to conduct further interviews with community members. The needs assessment with targeted communities at PT LTT was carried out with support from Tadulako University. 

ENS completed the field verification process by mid-August 2023 and commenced on the process of data analysis thereafter. 

In mid-September 2023, ENS highlighted that a government mediation process is taking place in two villages in the PT ANA area.  ENS will monitor the outcome of the mediation process to assess the implications for its reporting.  PT AAL, together with ENS, released the verification report on 27 November 2023.  The report has been shared to the stakeholders and PT AAL has released their response to stakeholders who have raised queries about the report.   

On 2 January 2024, PT AAL published its response on the alleged intimidation and coercive action by PT AAL security staff against community members in Rio Mukti Village, which was reported by WALHI and FoE on 8 December 2023.  PT AAL stated that it will carry out an internal fact-finding to gather all information related to the alleged coercion against two community members on signing a letter regarding land conflicts in PT. LTT.  The findings of the internal investigation was published in the statement released on 9 February 2024.  PT AAL clarified that the visit to the village by its CSR team was carried out at the invitation of the village head to discuss individual support measures for community members and to dispel rumours from unknown sources of criminalization, and that the visit was misconstrued as an act of intimidation.  

In the same statement released on 9 February 2024, PT AAL announced that it has re-appointed ENS to assist in developing an action plan to implement the recommendations of ENS’s independent verification of allegations raised by FoE in 2022. PT AAL will publish the finalized action plan and keep stakeholders updated with a monthly progress report.

In June 2024, PT AAL published the final action plan, followed by the First Progress Report on Action Plan Implementation in September 2024 and second progress report on action plan implementation in November 2024.

On 20 December 2024, PT AAL issued a statement responding to allegations made by FoE related to claims that United Nations rapporteurs for human rights supported FoE’s grievances against PT AAL and that PT AAL had failed to respond within the specified timeframe to the UN rapporteurs' request for a reply. In its statement, PT AAL reiterated that it had responded to all relevant stakeholders in a timely manner and reaffirmed its commitment to maintaining an open dialogue with all parties, including FoE and Walhi.

 For more information related to the activities, please refer to the reports as follow:

• Progress Update on Independent Third Party Verification Publish On 26 May 2023
• Progress Update on Independent Third Party Verification Publish On 9 June 2023
• Progress Update on Independent Third Party Verification Publish On 23 June 2023
• Progress Update on Independent Third Party Verification Publish On 7 July 2023
• Progress Update on Independent Third Party Verification Publish On 21 July 2023
• Progress Update on Independent Third Party Verification Publish On 4 August 2023
• Progress Update on Independent Third Party Verification Publish On 18 August 2023
• Progress Update on Independent Third Party Verification Publish On 1 September 2023
• Progress Update on Independent Third Party Verification Publish On 15 September 2023
• Progress Update on Independent Third Party Verification Publish On 29 September 2023
• Progress Update on Independent Third Party Verification Publish On 13 October 2023
• Progress Update on Independent Third Party Verification Publish On 27 October 2023
• Progress Update on Independent Third Party Verification Publish on 10 November 2023
• Progress Update on Independent Third Party Verification Publish On 24 November 2023
• Joint AAL and ENS Official Statement in Presenting Independent Third-Party Verification Report
• Verification of Complaints Against PT Mamuang, PT Lestari Tani Teladan and PT Agro Nusa Abadi, Raised by Friends of the Earth–US (FoE-US) and Walhi
• Stakeholders’ Responses To Econusantara’s Independent Report Into Grievances Related To Three Of AAL’s Subsidiaries
• Response To Allegations Of Intimidation And Coercive Action By AAL Security Staff Against Community Members In Rio Mukti Village, Sulawesi
• Joint Statement AAL – EcoNusantara : Action Plan and Rio Mukti Case
• Update on Action Plan Development Progress – 4 April 2024
• Astra Agro Lestari Statement Following The Protest in London By Walhi, FoE UK, and Members of The Sulawesi Community
• Joint Statement AAL and ENS : AAL Publishes Action Plan As Follow Up On The Third Party Verification Report
• Astra Agro Lestari Action Plan as a Follow Up on Third Party Verification
• Astra Agro First Progress Report On Action Plan Implementation (As Of August 2024) 
• Astra Agro second progress report on action plan implementation (As of October 2024)
• AAL repeats its open door offer to Friends of the Earth and Walhi
• AAL 3-Year Action Plan as Follow up on Third Party Verification Report (1st Semester)

1. First statement dated 8 July 2020
2. Second statement dated 10 July 2020
3. Third statement dated 7 August 2020

Non-compliant palm products from Mr. Mahmudin, a smallholder operating in the Rawa Singkil Wildlife Reserve (RSWR) area allegedly entered Wilmar’s supply chain through its supplier, PT Runding Putra Persada (PT RPP) via a Fresh Fruit Bunch (FFB) dealer CV Buana Indah (CV BI).

Wilmar does not source from CV BI. However, our supplier, PT RPP was allegedly sourcing from CV BI. Wilmar immediately initiated engagement with PT RPP when allegations of their non-compliant sourcing within RSWR was brought to our attention in September 2022.  According to the report, Mr. Mahmudin was operating illegally within RSWR and was supplying to PT RPP via CV BI. 

On 31 October 2022, RAN published additional information on the case titled “Major Indonesian Palm Oil Suppliers Falsely Deny Sourcing Illegal Palm Oil” on the issue linked to Mr. Mahmudin’s farm that allegedly extends beyond the boundary of the RSWR. 

A series of meeting and engagement with PT RPP was carried out thereafter. A field verification from 7 to 15 November 2022 has been carried out to verify the allegation and to support the development of an action plan to address the issues identified. The field visit concluded that Mr Mahmudin has a certificate of ownership (SHM) covering an area of 29 hectares. However, he has further claimed ownership of additional 4 hectares within RSWR which has not yet been allocated SHM. In addition, Mr Mahmudin’s FFB collection point also lacks adequate traceability mechanism to map the FFB that are sourced from the local community farms around Mr Mahmudin's farm. It has been confirmed that CV BI is indeed PT RPP’s supplier, which they have started sourcing since April 2022.

The outcome of the investigation and the action plan were discussed with RAN on 1 December 2022. The final field verification report has also been shared with RAN on 21 December 2022.

In March 2023, a verification field visit was undertaken to assess the progress of the action plan.  It was found that PT RPP has made improvements to the traceability system but the supply chain data collection at CV BI and the handover of 4 hectares of Mr. Mahmudin's land inside RSWR were progressing slower than expected. In order to accelerate progress to meet the action plan targets by June 2023, further assistance will be extended to PT RPP on its traceability programme and our team will engage with Mr. Mahmudin and CV BI in May 2023.  The full report is available here.  

In May 2023, a follow up field visit was carried out.  PT RPP has achieved 94% Traceability to Plantation (TtP) and its staff have been trained on the traceability system.  After a delayed start on the traceability mapping process due to unforeseen circumstances, Koltiva began the traceability work on CV BI’s and Mr Mahmudin’s suppliers in March and May 2023 respectively. Thus, Koltiva has revised timeline for 100% TtP to September 2023. During this visit, the field team also discussed with Mr. Mahmudin on the progress of the land release of the 4 hectares. 

In early June 2023, our team met with Balai Konservasi & Sumber Daya Alam, BKSDA (Agency of Conservation and Natural Resources) as the authority for management and monitoring of RSWR, and Balai Pemantapan Kawasan Hutan, BPKH (Agency of Forest Area Consolidation Center) as the authority for boundary marking of RSWR, with the aim to understand the management and monitoring of RSWR, and process of releasing land occupied by community within the RSWR. 

In June 2023, another follow up field visit was carried out.  Mr. Mahmudin was not available to meet with field team during this field visit.  The field team was later informed that Mr. Mahmudin was not willing to sign the commitment letter to release the 4 hectares. Consequently, PT RPP and CV BI have issued a statement on 13 July 2023 to exclude Mr. Mahmudin from their supply chain. With this latest development, Wilmar has also included Mr. Mahmudin on its list of “high risk” FFB supplier, where all Wilmar direct suppliers operating within the 50km radius of the Leuser Ecosystem will be notified on the development of this case. Mr. Mahmudin’s FFB will only be allowed to enter their supply chain when the case is resolved to our satisfaction. 

AA Sawit is not a supplier to Wilmar. Our supplier, Jernih Kemboja, however is implicated due to their association with AA Sawit.  

Wilmar immediately initiated engagement with Jernih Kemboja when allegations of deforestation at PTD 4882, 4085, 4963, 4118, 4177 and 4121  by AA Sawit was brought to our attention in July 2022. A field investigation was carried in August 2022 to verify the allegations. Our field investigation as well as LUCA analysis on their concession maps thereafter has confirmed that there is non-compliance to the No Deforestation commitment to the NDPE Policy.

Wilmar’s last purchase from this supplier was in September 2022.

As of October 2023, Jernih Kemboja has met all the requirements stipulated in our re-entry criteria. This includes their commitment to the development of a Recovery Plan for Non-Compliant Land Clearing to the NDPE policy at group level, for activity that has taken place from January 2016 onwards. Based on the detailed review of documentation, reports and a letter of commitment from Jernih Kemboja, the Wilmar Suspension Committee has given due consideration of this progress and lifted the suspension of Jernih Kemboja in October 2023. 

In July 2021, a letter was sent to Wilmar’s customers from the NGO Global Witness (GW), alleging environmental and social non-compliance incidents by Gilford Limited (GL). A summary of the allegations in the letter were as follows:

• Environmental degradation and deforestation activities;
• Violence and harassment against community members, through local police;
• Lack of Free, Prior, Informed Consent (FPIC) prior to development of land;
• Decent accommodation and facility for employees living in company housing; and
• Workers’ health and safety.

GL is not a direct supplier to Wilmar; however, they were allegedly linked to our supplier, Rimbunan Hijau (RH), at the group level. Wilmar immediately reached out to RH for clarification on the issues raised by GW and has been actively engaging with the company since. RH has rebutted the allegations and provided us with all relevant documentation, which includes;

• A field visit report by an independent consultant;
• Evidence of engagements between GL and GW since 2017;
• Landowner consent forms to ascertain FPIC and identify cultural sites requiring protection;
• Voluntarily written statements by a landowner, the contents of which were further corroborated by a statement given by a local ward councillor;
• Correspondence between GL and the Royal Papua New Guinea (PNG) Constabulary;
• Board meeting minutes by landowner companies; and
• A mediated agreement between GL and a landowner company issued by the PNG National Court.

The extensive supporting documents provided by RH has generally clarified the issues raised in GW’s letter, except on the matter of Personal Protective Equipment (PPE) provision to its workers; which still warrants further investigation and continued engagement with RH to resolve the issue.

On the allegation of lack of FPIC, GL has reaffirmed that landowners’ consent (i.e. FPIC) is a legally stipulated requirement in PNG to obtain a Special Agricultural Business Lease (SABL), to which they fully adhere. Furthermore, a voluntary statement from one of the landowners, which was shared with us, has also indicates that FPIC was in order, prior to land development. Concerning the allegation of violence and harassment, GL informed us that any reported police presence was sanctioned by the Royal PNG Constabulary and that no malpractice was found following investigations by high-level authorities, including the Ombudsman Commission.

Regarding the allegation of deforestation and environmental issues, GL has clarified that their operational planning and execution are compliant with all legal requirements. In fact, this compliance has been monitored by the PNG Forest Authority Project Supervisor on-site, to ensure protection of all culturally important sites and other specific protected areas such as buffer zones along rivers and streams, village reserves, conservation zones for fauna and flora, as well as sites of historical importance such as old village sites and caves. Since project commencement, GL has not received any specific complaints from any affected landowners, ward councillors, village court officials, or any government officials on environmental matters. In addition, it is also important to note that Wilmar has engaged with GL since 2018 on their compliance to NDPE, where GL has committed to carrying out HCV-HCS assessments prior to any new land clearing. A moratorium on new land clearing has been imposed since 2018. For more information related to this case, please refer to Wilmar’s Grievance List, specifically the case registered in 2018 under Gilford Ltd.

On the matter of PPE provision, Wilmar has worked closely with GL to improve their practices in alignment with our NDPE Policy. This includes improvements to their PPE Policy, as well as the socialisation of the policy to all levels of management and operations, with effective on-the-ground implementation.

On 7 October 2021, GW released a public report titled ’The True Price of Palm Oil’. The allegations on GL in this report are largely similar to those made in the letter sent to Wilmar’s customers in July 2021. However, the report contains additional information related to GL’s health and safety practices, where Wilmar has conducted further investigation and provided support to GL in addressing the identified gapsby enhancing their policies, staff training as well as improving the reporting and monitoring of health and safety incidents, among other measures.

From 19 to 28 September 2024, Wilmar conducted a field assessment at GL with the support from an external international consultancy and management organisation with extensive experience in PNG. The field team comprised five members: Wilmar’s Assistant General Manager for Sustainability,  Health and Safety Lead for Wilmar's Malaysia operations, Supplier Engagement & Compliance Lead for Wilmar Indonesia, and two representatives from the consultancy firm, including the Director and a local consultant based in PNG.

The objective of this field visit was to assess GL’s progress in closing identified gaps and verify certain allegations raised in the GW report. The primary areas of focus were Health and Safety, Grievance Procedures, FPIC, community engagement, worker welfare, and the verification of deforestation claims. Additionally, prior to our field assessment, GL had engaged Certification Bodies to evaluate their compliance with the Malaysian Sustainable Palm Oil (MSPO) Certification standard, which serves as a reference for the implementation of sustainability practices, covering various criteria related to the aforementioned areas.

The outcome of our field assessment confirmed that GL has made significant progress in addressing the gaps, particularly in enhancing their Health and Safety measures, a key area for improvement identified previously. The assessment also confirmed that GL has not engaged in deforestation since September 2018, following their commitment to a moratorium on land clearing. Furthermore, GL has appointed a Head of Sustainability to oversee the Sustainability Department and ensure continued implementation of its policies and commitments.

Meanwhile, Wilmar remains actively engaged in supporting and working with GL to further strengthen their sustainability practices.

Wilmar immediately initiated engagement with IOI when the allegations were brought to our attention in June 2021. Full details of this case is available on IOI’s grievance list.

We understand that Finnwatch has engaged with IOI since August 2020, where they have informed IOI of several allegations highlighted by a grievance raiser on behalf of five workers, consisting of:

On 2 June 2023, RSPO Complaint Panel who investigated the case has dismissed the case.

For more information on RSPO’s deliberation, please refer to the case tracker. 

1. Mistreatment from the estate’s supervisor
2. Inconsistency in issuance of Personal Protective Equipment (PPE)
3. Not allowing workers to speak to auditors
4. Dissatisfaction regarding housing facilities
5. Disagreement in wage payments
6. Alleged payment of recruitment fees

Following this, IOI immediately formed an internal investigation team to address the allegations.

On 11 September 2020, IOI updated Finnwatch on the matter of mistreatment, issuance of PPE and the worker being disallowed from speaking to auditors. In the update, IOI included explanations on the regular issuance of PPEs, and that in IOI, there was no restriction placed on auditors with regards to who they choose to interview during audits. IOI also disputed the allegation that workers were not allowed to speak with auditors. IOI further acknowledged that there was an incident of mistreatment of a worker by an estate employee and clarified that action had been taken by IOI management against the employee in question.  

On 14 October 2020, IOI provided supporting documents, photos and videos from its internal investigations to Finnwatch on the issue of wage disagreement, and dissatisfaction regarding housing facilities.

On 13 November 2020, IOI informed Finnwatch that on the issue of illegal payments made during recruitment by the aggrieved workers, IOI had made several attempts to contact the person involved but was not successful.

On 16 December 2020, IOI presented its “Guideline for Providing Basic Amenities to Workers” which ensures uniform implementation of amenities provided to all estate workers, and a guideline on “Worker’s Work Verification”, which enables workers to verify their working hours. IOI also shared updates with Finnwatch on progress made with regards to workers’ repatriation back to India. On the issue of recruitment fee, IOI provided reassurance to Finnwatch that investigations were ongoing on the matter, in line with IOI’s No Recruitment Fee policy.

On 23 February 2021, IOI informed Finnwatch that it had no way of confirming transactions that had occurred in India relating to recruitment fees. In response to the issue however, IOI suspended the recruitment agency involved as well as recruitment of workers from India, and added that it would be reporting the findings to authorities in India for further formal investigation.

On 28 June 2021, IOI reiterated that the issue of illegal monies collected from workers in India for recruitment was beyond their jurisdiction and would require cooperation from the Indian government.

On 2 July 2021, IOI published a Statement in Response to Finnwatch’s Report addressing the allegations. In the Statement, IOI also reaffirmed commitment to its “No Recruitment Fees Policy” since 2017, highlighted its “Guideline for Minimum Wage & Leave Pay” and “Worker’s Work Verification Guideline”, and mentioned that it will be undergoing an audit on its plantation operating units to ascertain non-compliance with its labour policies or unsatisfactory working conditions. 

On 21 July 2021, IOI published an update on its first virtual Sustainability Consultation Forum. IOI engaged BSR (Business for Social Responsibility) to develop and facilitate the Forum, which was held in May 2021 and attended by 40 of IOI’s internal and external stakeholders. Discussions at the Forum were centred around efforts to address current labour challenges faced by IOI and the Malaysian palm oil sector, with a specific focus on Responsible Recruitment Practices especially in Peninsular Malaysia and legalisation of undocumented workers in Sabah. An Executive Summary of the Forum can be found here.

On 13 January 2022, IOI published a further update on outcomes and action plans arising from the Forum, which includes active engagement with relevant stakeholders such as RSPO and ILO to develop solutions for responsible recruitment practices, and the setting up of a working group to discuss approaches to legalise undocumented workers in Sabah. Further details are available here.

On 2 June 2023, the RSPO Complaints Panel concluded its investigation into the allegations and dismissed the case.  For more information on RSPO Complaints Panel's deliberation, please refer to the case tracker. 

Wilmar and our supplier LKPP Corporation Sdn Bhd do not source from PKPP Plantation Sdn Bhd, the company that’s allegedly involved in deforestation.

Our supplier LKPP Corporation Sdn Bhd clarified that, PKPP Plantation Sdn Bhd is a different entity from LKPP Corporation Sdn Bhd.

Wilmar has therefore established direct engagement with PKPP Plantation Sdn Bhd to seek their clarification on the alleged deforestation. While the case is still undergoing investigation in verifying the allegation, PKPP Plantation Sdn Bhd has committed to cease any new clearing and published their NDPE commitment. In the meantime, PKPP Plantation Sdn Bhd has decided to reserve two lots of land from their landbank for potential recovery site, while continues to embark their conservation project to replanting rare wild jungle fruit trees and wild herbs trees in a secondary jungle area at Paya Bungor, Kuantan, in collaboration with local University, UiTM. The project with UiTM which involved 40 acres is still going and now entering Phase 2.

Wilmar’s last purchase from LKPP Corporation Sdn Bhd was in November 2020.

As of March 2024, LKPP Corporation Sdn Bhd has met all the requirements stipulated in our re-entry criteria. This includes their commitment to the implementation of a Recovery Plan for Non-Compliant Land Clearing to the NDPE policy at group level, for activity that has taken place from January 2016 onwards. Based on the detailed review of documentation, the Wilmar Suspension Committee has given due consideration of this progress and lifted the suspension of LKPP Corporation Sdn Bhd in March 2024.

1. PT SPMN has revoked its termination on Pak Subit, where Pak Subit will remain as PT SPMN’s employee and enjoy the same renumeration and benefit as before.
2. Pak Subit has apologised and acknowledged that his behaviour during the meeting on 30^th March is inappropriate and has violated the company’s code of conduct/ethic.
3. Pak Subit accepted the sanction from the company where he has been given an official warning letter.
4. Both parties agreed to resolve any future industrial relationship dispute in the manner of bipartite discussion.

Based on Wilmar’s investigation with our supplier TH Plantations Berhad (THP), THP does not own any shares in Deru Semangat Sdn Bhd (DSSB). However their holding company, Lembaga Tabung Haji (LTH) owns 55% of DSSB.

The CRR report which alleged the involvement of THP in the development of DSSB was shared with THP in April 2020. At that point in April, THP agreed to investigate the case together with their holding company, but informed that there could be delays in getting the required evidence due to Movement Control Order (MCO) imposed by the Malaysia government to curb the spread of Covid-19 that was then in place. In subsequent updates from THP, we understand that THP does not have management control over the operation of DSSB, and THP’s role was providing management services related to oil palm operations to DSSB.  THP has also conveyed its intention to terminate the Management Agreement with DSSB.

A meeting with THP’s management team finally took place in July 2020 after the easing of the Malaysian Movement Control Order. We understand that THP is in the process of finalising the termination of their Management Agreement with DSSB which is targeted to be completed by end July 2020. THP has also agreed to put in place NDPE commitments. Meanwhile THP have ceased all oil palm development in DSSB.

Based on Wilmar’s internal LUCA assessment of the DSSB concession area, there has been no land clearing in 2020.

Engagement with THP in relation to our re-entry criteria has been triggered since July 2020.

As of July 2021, THP has met all the requirements in the re-entry criteria. This includes their commitment to the development of a Recovery Plan for Non-Compliant Land Clearing to the NDPE policy at group level, for activity that has taken place from January 2016 onwards. Based on the detailed review of documentation, reports and a letter of commitment from THP, the Wilmar Suspension Committee has given due consideration of this progress and lifted the suspension of THP in July 2021.

In the meantime, THP established a partnership to develop the recovery project with Global Environment Centre (GEC). Following an assessment of various locations and discussions with related stakeholders, the project in and around Gunung Arong Forest Reserve (GAFR) in Mersing District in Johor, Malaysia was established in July 2022.

For more information related to the project, please refer to the reports as follow:

• Progress Update from July – December 2022
• A Brief Progress Update from January to June 2023
• Summary Annual Progress Update from January to December 2023
• Summary of Semi-Annual Report (January – June 2024) Conservation of Coastal Forest and Peatlands in Gunung Arong Forest Reserve, Johor
• Conservation of Coastal Forest and Peatlands in Gunung Arong Forest Reserve, Johor - Annual Report (January – December 2024)

Wilmar initiated engagement with PT Pipit Mutiara Indah (PMI)  since April 2019 to seek clarification on deforestation alert detected through our Supplier Group Compliance Verification programme. Based on the supporting document submitted by supplier, it was clarified that the deforestation happened outside their concession boundary. PMI did not carry out any land clearing inside their concession for oil palm development. First meeting with PMI was conducted in May 2019, where Wilmar has reiterated the NDPE policy compliance. PMI had also provided written confirmation to the commitment of NDPE policy and shared their concession map for our ongoing monitoring.

We continue to monitor the case and our internal monitoring report in October 2019 has detected land clearing at PT PMI. During our investigation and engagement with PMI, it was clarified that the area has already being felled several years ago and now being cleared for planting. However, as there was no HCS/HCV assessment conducted, we considered this as a non-compliant to the NDPE policy. PMI has committed to immediate moratorium and we continue to guide PMI in NDPE policy compliance.

Due to non-compliance to the NDPE policy, we have ceased sourcing from QL  Group of companies where the last purchase was in November 2019. Several meetings have taken place since then to guide QL Group of companies  to the compliance of NDPE policy and meeting the re-entry criteria.

A field visit to PT PMI was conducted in January 2020 to assess the situation on the ground and develop an action plan for PT PMI to close the gaps identified during the field visit. In April 2020, QL Group has met all the criteria stipulated in the re-entry criteria, including their commitment to the development of Recovery Plan for Non-Compliant Land Clearing in line with the NDPE policy at group level incurred from January 2016 onwards.

Based on detailed review of documentation, reports and  letter of commitment from QL Group, the Wilmar Suspension Committee gave due consideration of this progress and lifted the suspension on QL Group in April 2020. 

In 2020, PT PMI developed a recovery plan that focused on the rehabilitation of river buffers, conservation of unplanted areas,  and training on firefighting and fire prevention for local communities. PT PMI began the implementation of this recovery initiative since October 2021.

In June 2023, Wilmar conducted a field visit to PT PMI to assess the progress of the recovery plan. The visit confirmed that PT PMI has established the nursery, installed river buffer signboards, carried out active planting of 622 tree seedlings, and conducted outreach on firefighting and fire prevention for the local community. 

• Earthworm Foundation Report 6: Wilmar's Operation Linked to Pasaman Barat Community, West Sumatra (Final report, May 2022)
• Earthworm Foundation Report 5: Wilmar's Operations Linked to Pasaman Barat Community, West Sumatra (May 2021)
• Earthworm Foundation Report 5: Wilmar's Operations Linked to Pasaman Barat Community, West Sumatra (May 2021) - Bahasa Indonesia
• Earthworm Foundation Report 4: Wilmar's Operations Linked to Pasaman Barat Community, West Sumatra (September 2020)
• Earthworm Foundation Report 4: Wilmar's Operations Linked to Pasaman Barat Community, West Sumatra (September 2020) - Bahasa Indonesia
• Earthworm Foundation Report 3: Wilmar's Operations Linked to Pasaman Barat Community, West Sumatra (April 2020)
• Earthworm Foundation Report 2: Wilmar's Operations Linked to Pasaman Barat Community, West Sumatra (February 2020)
• Earthworm Foundation Report 1: Wilmar’s Operations Linked to Pasaman Barat Community, West Sumatra (November 2019)

Non-compliant palm products from Alas Kusuma allegedly enter Wilmar’s supply chain through its suppliers.

A meeting was further held with DD POM on 29 April 2019 to share the outcome field visit report and expectation from Wilmar on DD POM in complying to the NDPE policy and re-entry criteria. Wilmar has committed to support and provide guidance to DD POM in developing action plan in addressing the issues identified in the field visit.

Wilmar’s last purchase from DD POM was in April 2019.

In July 2019, DD Group has met all the criteria stipulated in the re-entry criteria, including their commitment to the Development of Recovery Plan for Non-Compliant  Land Clearing to NDPE policy at group level incurred from January 2016 onwards. Based on the detailed review of documentation, reports and letter of commitment from DD Group, the Wilmar Suspension Committee have given due consideration of this progress and have lifted the suspension on the DD Group in July 2019.

In the meantime, we continue actively guiding DD Group in the development of the recovery plan and monitor DD Group's activities on monthly basis  through our Supplier Group Compliance Verification programme.

Prior to the publication of the Mighty Earth Rapid Response Report 6 in July 2018, Wilmar had already initiated engagement with Widya Corporation at the end of 2017, in line with  our Supplier Group Compliance Verification programme that brought the alleged issues to our attention. Widya Corp clarified that PT MIP is operating legally and is located at legal non-forest area (APL). We have shared our NDPE policy with the supplier and requested for them to be compliant to our policy. In May 2018, we detected that PT MIP resumed land clearing activities. We sought their clarification and were informed that they had cleared a small area of plasma smallholder land. A meeting was held with Widya Corp in August 2018 where we re-emphasised our NDPE Policy and sought their commitment on a moratorium. To comply with Wilmar’s Policy, Widya Corp agreed to stop clearing the remaining undeveloped plasma area and proceed with a HCS and HCV assessment. The assessment was completed in September 2018 and the reports were shared with Wilmar.

We continue to monitor PT MIP’s activities and so far, no deforestation within the identified HCS/HCV area has taken place. PT MIP has committed to a long term moratorium of land clearing on PT MIP effective March 2020.

In September 2020, PT MIP submitted their HCV assessment to HCVRN for peer review and achieved a satisfactory result in April 2021. Additionally, the HCSA peer review on the HCS assessment report was also completed in April 2023.

PT MIP has also published its total liability for  Non-Compliant Land Clearing to the NDPE policy for activity that has taken place from January 2016 onwards. A recovery plan that includes both on-site and off-site initiatives has been implemented since 2023.

In October 2018, after due investigation and reviewing evidences submitted by PT Inecda and PT Gandaerah Hendana, it is confirmed that GAMA has no management control on these two companies. Samsung C&T as the major shareholder has been solely managing these companies since 2008. Wilmar therefore has lifted its suspension on PT Inecda and PT Gandaerah Hendana .

On 10 August 2018, GAMA Plantation and Aidenvironment signed a statement on their collaboration in developing and implementing a sustainability Policy. To be able to implement the Sustainability Polic, GAMA plantation voluntarily consolidated as a "Group" under a single management. All entities under GAMA's management shall follow the Group's Sustainability Policy, that presently covers 27 companies with 29 plantations units. The Group operates 20 mills and has a total planted area of nearly 200,000 hectares in Sumatera, Kalimantan, Sulawesi and Papua. 

A comprehensive Sustainability Policy was released in September 2018 and followed by its first progress in February 2019 report detailing the implementation and progress of their NDPE policy commitments. 

Based on detailed review of documentation, reports, and gestational from GAMA Plantation group, and after consultation with Aidenvironment on the group's performance and overall commitment - the Wilmar Suspension Committee have given due consideration of this progress and have lifted the suspension in March 2019. 

For more details, please refer to the Grievance Case allegedly linked to GAMA Plantation on PT GAN, PT APM and PT ACP filed on 13 Dec 2017.

• Director(s) shall not own shares in plantation companies that do not subscribe to the GAMA Plantation Sustainability Policy. 
• No divestment of land bank until outstanding grievances are fully resolved, or obligations have been legally transferred to another party. Take more responsibility on potential problematic plantations instead to sell it and suspension of land acquisition for two years. 
• No acquisition of land (through crop and land compensation, or GRTT i.e. payments made for crops on land) that was burnt after 1 July 2018. 
• No procurement of Fresh Fruit Bunches (FFB) from oil palms planted on land that is burnt after 1 July 2018. 
• Commitment to implement Recovery Plans to deliver tangible and long-term benefits to conservation and local communities. 
• Online maps publication of the entire GAMA Plantation group for more transparency. 

On 10 January 2024, FGV announced that total of RM72.2 million has been reimbursed to 19,673 workers.   FGV appointed LRQA, formerly known as ELEVATE to conduct a verification of the reimbursement exercise.  LRQA is expected to conduct its follow-up assessment in the first quarter of 2024 which is to verify the implementation of FGV’s overall remediation plan. With the outcome of the assessment, FGV will then prepare a petition to the CBP to modify the WRO, which will be submitted by the end of the second quarter of 2024.

On 30 June 2024, FGV submitted its petition to CBP for the modification of the WRO, after significant remediation efforts across its operations towards ensuring labour rights and improving the welfare of workers.

• Sustainability Journey - Monthly Update - May 2017
• Sustainability Journey - Monthly Update - June 2017
• Sustainability Journey - Monthly Update - July 2017
• Sustainability Journey - Aug 2017 - Issue No. 4
• Sustainability Journey - Sep 2017 - Issue No. 5
• Sustainability Journey - Oct 2017 - Issue No. 6
• Sustainability Journey - Nov 2017 - Issue No. 7
• Sustainability Journey - Jan 2018 - Issue No. 9
• Sustainability Journey - Feb 2018 - Issue No. 10
• Sustainability Journey - March 2018 - Issue No. 11
• Sustainability Journey - April 2018 - Issue No. 12
• Sustainability Journey - May 2018 - Issue No. 13
• Sustainability Journey - June 2018 - Issue No. 14
• Sustainability Journey - July 2018 - Issue No. 15
• Sustainability Journey - Aug 2018 - Issue No. 16
• Sustainability Journey - Sep 2018 - Issue No. 17
• Sustainability Journey - Oct 2018 - Issue No. 18
• Sustainability Journey - Nov 2018 - Issue No. 19
• Sustainability Journey - Dec 2018 - Issue No. 20
• Sustainability Journey - Jan 2019 - Issue No. 21
• Sustainability Journey - Feb 2019 - Issue No. 22
• Sustainability Journey - Mar 2019 - Issue No. 23
• Sustainability Journey - Apr 2019 - Issue No. 24
• Sustainability Journey - May 2019 - Issue No. 25
• Sustainability Journey - June 2019 - Issue No. 26
• Sustainability Journey - July 2019 - Issue No. 27
• Sustainability Journey - Oct 2019 - Issue No. 28
• Sustainability Journey - Jan 2020 - Issue No. 29
• Sustainability Journey - April 2020 - Issue No. 30
• Sustainability Journey - June 2020 - Issue No. 31
• Sustainability Journey - Sep 2020 - Issue No. 32
• Sustainability Journey - Jan 2021 - Issue No. 33

Status: Case closed

Non-compliant palm products in and around the Leuser Ecosystem from PT. Agra Bumi Niaga’s (ABN) allegedly enter Wilmar’s supply chain through its supplier, PT Ensem Sawita (ES)

Wilmar has mapped all suppliers who operate mills within a 50-km radius of the Leuser Ecosystem, and engaged directly with all these suppliers to ensure that we have clearly communicated our NDPE Policy requirements to all suppliers who may be at risk of sourcing from illegal or protected areas within the Leuser Ecosystem. Most recently in April 2017, we have also checked and confirmed that all these suppliers, including PT Ensem Sawita (ES) were not sourcing from PT Agra Bumi Niaga (ABN). Following RAN’s latest report, we contacted PT ES for clarifications and were informed that PT ES was not aware that their FFB supplier PT. Putri Hijau was acquired by PT ABN. Therefore, PT ABN’s FFB may have entered PT ES’s supply chain through PT Putri Hijau.

Wilmar met with PT ES on 28 July 2017, PT ES informed that they have ceased sourcing from PT ABN since early July 2017 when they were alerted that PT ABN’s fruits had entered their supply chain. PT ES decided not to resume purchase from PT ABN until this FFB supplier has been assessed and implemented the necessary corrective actions as per recommended by an independent assessor.

Together with TFT, one of PT ES’s buyers has scheduled a site visit to the operations of PT ES & PT ABN in early August 2017. To avoid duplicating the same assessment, PT ES has agreed to share the assessment report with Wilmar for our deliberation of next course of action. The field assessment report has been shared with Wilmar in October 2017 and we have met with PT ES on 17 November 2017 to follow up with them on their progress.

While PT ES is committed to close the gaps identified during the assessment, we continue to monitor their progress, which includes regular physical meetings with PT ES where we will provide support to improve their sourcing practices. Our last meeting with PT ES was conducted on 17 January 2020.

1. Developed and implemented policies that commits to non-retaliation against HRDs and grievance raisers and protect HRDs and grievance raisers who submit a complaint in good faith
2. Action plan on Sustainability related matter for specific department has also been developed for Human Resources, Occupational Health & Security, Community Relations
3. Repsa has constantly been through evaluations, audits and due diligence by independent actors in sustainability and Human Rights
4. Engagement with various human rights defenders, civil society advocates and organisations by participating in various types consultations

• “That no children are present on the plantation to help their parents”,
• “That the workers are not paid a minimum wage on the basis of achieving a target in terms of tons FFB, number of sprayed tanks or number of fertilizer bags applied to the land”
• “That the minimum monthly wage is always paid to permanent workers regardless of their performance”
• “That non-permanent workers are paid 90,000 IDR (= min. wage) even if they don’t achieve their targets.”

Prior to the publication of Mighty Earth Report - Burning Paradise in September 2016, Wilmar has already initiated engagement with Korindo Group since late 2015, following our Supplier Group Compliance Verification programme that alerted us of the allegations of noncompliance to Wilmar’s Sustainability Policy. While the supplier has committed to moratorium of land clearing after our meetings, we detected land clearing continued to happen while they were exploring options for various assessments, including HCV and HCS assessment.  Wilmar has therefore put on hold purchases from Korindo Group, where our last purchase was in June 2016.

On 1 August 2016, PT Tunas Sawa Erma, a subsidiary of Korindo, declared an immediate three month moratorium on new land development, while developing a comprehensive “No Deforestation, No Peat, No Exploitation” (NDPE) policy.

On 10 November 2016, PT Tunas Sawa Erma Group extended its moratorium to include PT Tunas Sawa Erma, PT Berkat Cipta Abadi, and PT Dongin Prabhawa.

On 12 November 2021, TSE published its  Environmental, Social and Governance (ESG) commitments, demonstrated its commitment aligned with NDPE Policy.

As of April 2024, Korindo Group has met all the requirements stipulated in our re-entry criteria. This includes their commitment to the development of a Recovery Plan for Non-Compliant Land Clearing to the NDPE policy at group level, for activity that has taken place from January 2016 onwards. Based on the detailed review of documentation, reports and a letter of commitment from Korindo Group, the Wilmar Suspension Committee has given due consideration of this progress and lifted the suspension of Korindo Group in April 2024.

Korindo/TSE Group has also published their total liability and recovery plan for 2024–2049, which indicates the locations where the recovery plan activities will take place, as well as a list of initiatives included in their recovery plan. These initiatives encompass river buffer-zone rehabilitation, enhancing biodiversity, supporting the socio-economic development of local communities and rehabilitating mangrove areas in North Maluku, among others.

Dialogue was initiated with Eagle High Plantations (EHP), while verification of Greenomics report was ongoing.

A further meeting was held with EHP on 8 July 2015 wherein EHP agreed to a moratorium on landclearing activities in PT VMA. EHP has engaged a reputable HCS assessor to conduct the HCS assessments. A few more meetings were held with EHP thereafter.

The HCS assessments were completed in 2016; as a result almost 50% of PT VMA’s concession will need to be conserved.  The full report has completed the HCSA peer review, and the summary report and the peer review feedback can be found here.   

On 27 September 2016, Wilmar received a new report from Greenpeace alleging deforestation by PT Arrtu Energie Resources (PT AER) and exploitations in PT Tandan Sawita Papua (PT TSP). Report is available here (http://www.greenpeace.nl/Global/nederland/report/2016/bossen/Deadly-Trade-off-IOI-Report.pdf)

Dialogue was immediately initiated with EHP to seek clarifications on the allegations. EHP issued the following statement responding to the report: http://www.eaglehighplantations.com/media-center/news-views/161-october-2016.html

A meeting was further held with EHP on 8 November 2016, where Wilmar sought further clarification on the allegations.

According to EHP, the deforestation in PT AER was carried out by surrounding communities. In order to avoid similar incident from recurring, EHP has committed to conduct land tenure study. EHP is also in the process of enhancing its firefighting effort to prevent similar fire incidences from occuring in their concessions in the future.

With regards to the allegations of exploitation at PT TSP, the chronology of events on the labour dispute and the shooting incident was shared by EHP.  EHP was also in the process of seeking official statement from the authority to support the clarifications.

A follow up meeting was held on 4 April 2019 to obtain updates on the various issues raised against PT VMA, PT AER and PT TSP.  EHP clarified that that no new development has taken place in PT VMA, and presented information on its conservation project i.e. “AMOUR” (Arrtu, Mayak, Orangutan Rescue), which is located on an area of 4,000 ha within PT AER.  The AMOUR project is aimed at protecting and restoring the habitats of orang utan in the PT AER’s HCV areas. Additionally, EHP has also worked to Rimba Raya and Yasiwa to develop other conservation programmes in Central Kalimantan and in East Kalimantan, respectively. On PT TSP’s case, EHP updated that third party auditors have conducted site visit between 11 to 13 January 2019 to assess and verify the allegations reported by Greenpeace. According to the findings of the audit report: (i) the palm oil development within PT TSP that took place between 2011 to 2013 was carried out in accordance to the HCV and SIA reports, and (ii) on the allegations related to labour, the audit report concluded that PT TSP complied with RSPO P&C requirements. Supporting documentation was also shared by EHP and these corroborated the clarifications provided to Wilmar.