IndoAgri’s new palm oil policy wholly inadequate, also leaves out many Salim Group companies

Press release - 14 March, 2017
London, 14 March 2017 - Greenpeace International today dismissed as inadequate in both substance and scope a new palm oil policy issued by Indofood’s agriculture subsidiary Indofood Agri Resources Ltd (IndoAgri).[1]

The policy follows long-standing criticism from NGOs of IndoAgri and other Salim Group palm oil companies.[2] Salim Group companies stand accused of profiting from child labour, paying unethically low wages, developing peatland and destroying rainforest including orangutan habitat.[3]

“IndoAgri is still refusing to meaningfully protect peatlands, forests or communities. It offers few protections to workers despite overwhelming evidence of human rights abuses on its plantations. The policy also doesn’t apply to other Salim Group companies like PT Gunta Samba Jaya,” said Annisa Rahmawati, Greenpeace Indonesia forest campaigner.

IndoAgri subsidiaries PT Lonsum and PT Salim Ivomas Pratama (SIMP) are members of the RSPO, but other Salim Group companies are not. The new palm oil policy however applies only to IndoAgri, its palm oil operations and suppliers. It does not apply to Salim Group’s palm oil and other forestry and plantation interests held outside of the Indoagri structure.

Traders like Wilmar, Golden Agri Resources and Musim Mas are still buying palm oil directly from IndoAgri. Dozens of consumer brands have IndoAgri’s palm oil in their products. High street banks from across the world are funding IndoAgri and other Salim Group companies.

“It’s clear from this latest policy that engagement with Indofood and IndoAgri has failed. Palm oil traders like Wilmar International need to stop making excuses and start cancelling contracts with IndoAgri and the Salim Group,” said Annisa.

Notes to editors:

[1] ‘IndoAgri Sustainable Palm Oil Policy 2017’ http://www.indofoodagri.com/misc/Sustainable_Palm_Oil_Policy_2017.pdf

[2] The Salim Group, headed by Indonesian tycoon Anthoni Salim, includes the vertically integrated Indoagri, with its own palm oil interests, and links to a number of separate palm oil concession-holding companies.

[3] See, for instance:

[4] The policy:

  • commits to protecting High Carbon Stock forests, but uses the insufficient RSPO methodology of carbon emissions assessment. The most credible standard is the High Carbon Stock Approach, which properly identifies and prevents clearance of all HCS forest.

  • does not prevent the exploitation of workers in its palm oil concessions and fails adopt a credible grievance mechanism which aligns with international standards set out in the UN Guiding Principles on Business and Human Rights.

Media contacts:

Annisa Rahmawati, Forest Campaigner, Greenpeace Indonesia:  +62 8111097527

Igor O'Neill, International Media for Greenpeace Indonesia Forest Campaign:  +62 811 1923 721

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