"Widespread corruption and the absence of adequate law enforcement continue to enable deforestation in Indonesia, despite recent pledges from the world's largest agricultural corporations to halt forest clearing and a national moratorium on the issuance of new logging permits, according to a report from the Environmental Investigation Agency (EIA)."
Indonesian firm BW Plantation’s (BWPT) $900M share rights offering rife with concerns over labour rights, wildlife and deforestation.
FOR IMMEDIATE RELEASE
CONTACT: Laurel Sutherlin, 415.246.0161, Laurel@ran.org
Indonesian palm oil firm BW Plantation (BWPT) approved last week a USD $900 million share rights offering in a bid to finance its merger with Green Eagle Holdings (GEH). New stock not purchased by existing shareholders will be traded on the Jakarta Stock Exchange (IDX) from Monday December 8. Already lagging behind its competitors who have committed to zero deforestation policies, BWPT has failed to declare to investors the serious environmental, social and financial risks involved with deforesting and planting over its massive new land bank.
Rainforest Action Network (RAN) has published an in-depth backgrounder/briefing document titled Conflict Palm Oil Case Study PT BW Plantation (BWPT) $900 Million Stock Offer Warning: Investors Need Greater Disclosure of Environmental, Social and Legal Risks.
The deal expands BWPT's holdings from just under 100,000 ha to over 400,000 ha, making it Indonesia’s third largest palm oil company listed on the IDX. However, 75% of the new land bank - with holdings in Papua, Sulewesi, West, East and South Kalimantan and Sumatra - is unplanted and likely includes large tracts of primary forests, Indigenous and local community lands, and areas of carbon-rich peatlands.
Tom Picken of Rainforest Action Network said, “The last thing Indonesia needs is a near-billion dollar injection of cash that will simply fuel Conflict Palm Oil production. We encourage potential investors to steer clear of this controversial deal until BWPT discloses the true extent of risks, and publicly commits to no deforestation, no exploitation, and no peatland expansion across its entire operations.
Publicly available information on GEH plantations should raise alarm bells for investors. A basic review of available satellite data and local media reports indicates aggressive clearance of High Carbon Stock (HCS) forest since 2010, orangutans needing to be rescued from a Kalimantan concession two weeks ago, at least one case of serious labour rights violations this year in Papua, as well as a number of community conflicts.
Picken added, “BWPT is already failing to comply with its obligations under the Roundtable on Sustainable Palm Oil (RSPO) relating to new plantations. Adding the Green Eagle operations into the mix may seriously jeopardise BWPT’s eligibility to remain a member of RSPO at all, judging by the little information that is in the public domain highlighting numerous scandals in Green Eagle plantations.
“Aside from being a disaster in the making for the climate, local communities and the environment, this deal is a risky gamble for investors. That’s because this offering completely ignores the changing business climate. There has been a tide of deforestation-free commitments from major players in this arena recently, including BWPT’s two largest buyers of Crude Palm Oil (CPO) -- Wilmar International and Golden Agri-Resources (GAR), which make up almost half of BWPT’s sales. Unless BWPT gets into line with these improved palm oil standards, then it will lose its biggest clients while investors could see their stock plunge.”
RAN briefing finds pending $900 million deal threatens forests, peatlands and communities across Indonesia.
Indonesian palm oil firm BW Plantation (BWPT) approved last week a USD $900 million share rights offering in a bid to finance its merger with Green Eagle Holdings (GEH). New stock not purchased by existing shareholders will be traded on the Jakarta Stock Exchange (IDX) from Monday December 8.
RAN released a briefing note, available here, on the controversial deal today, alerting investors to poorly disclosed Conflict Palm Oil risks.
The deal expands BWPT's holdings from just under 100,000 ha to over 400,000 ha, propelling it into the rank of Indonesia’s third largest palm oil company listed on the IDX. However, 75% of the new land bank - with holdings in Papua, Sulewesi, West, East and South Kalimantan and Sumatra - is unplanted and includes large tracts of rainforests, Indigenous and local community lands, and areas of carbon-rich peatlands.
Tom Picken, Senior Advisor for Forests and Finance campaign work at RAN, notes, “The last thing Indonesia needs is a near-billion dollar injection of cash that will simply fuel further Conflict Palm Oil production. We encourage potential investors to steer clear of this controversial deal until BWPT discloses the true extent of risks, and publicly commits to no deforestation, no exploitation, and no peatland expansion across its entire operations.”
The briefing finds evidence of aggressive clearance of High Carbon Stock (HCS) forest since 2010, orangutans needing to be rescued from a Kalimantan concession two weeks ago, at least one case of serious labour rights violations this year in Papua, as well as a number of community conflicts in the expanded holdings of the BWPT plantations group.
BWPT is already failing to comply with its obligations under the Roundtable on Sustainable Palm Oil (RSPO) relating to new plantations, much less meet the additional “no deforestation, no peatland expansion and no exploitation” criteria of its major customers.
Actions on the ground will tell the tale. For now, BWPT looks like the new bad boy on the block, making it an important target for intensified public scrutiny and accountability.
"Greenpeace, WWF, the Forest People’s Programme and Rainforest Action Network laud commitments by some companies to protect forest areas classified as ‘High Carbon Stock’, but say challenges still remain."
Outgoing President Susilo Bambang Yudhoyono’s Green Legacy Stands or Falls on Protection of the Leuser Ecosystem, NGOs say
[Jakarta, Sept. 22] In the final weeks of his presidency, Susilo Bambang Yudhoyono has come under massive international pressure to act to protect one of the world’s most biodiverse forests.
On the eve of the UN Climate Summit in New York, thousands of tweets flooded the President’s personal twitter account, @SBYudhoyono, asking him to protect the Leuser Ecosystem, as recent studies found Indonesia to have overtaken Brazil in having the highest rate of deforestation in the world. Located at the country’s most western tip, the fate of the Leuser Ecosystem rests entirely on the cancellation of an illegal spatial plan drawn up by the government of Aceh province.
“The Aceh Spatial Plan is invalid and illegal,” said Effendi Isma, spokesperson of Aceh Forest Care Coalition. “The plan is clearly at odds with National Spatial Planning Law and the President’s own moratorium on new plantations. It even goes as far as violating Aceh’s own 2006 Law on Aceh Governance, which is causing much distress for all those in Indonesia and abroad who supported the Helsinki Peace process.”
The Aceh Spatial Plan, which opens up the nationally protected Leuser Ecosystem to logging, mining and clearing for plantations, has become a global and national scandal. An evaluation by the Ministry of Home Affairs requires Aceh’s government to revise the plan and ensure protection of the Leuser Ecosystem, but to date the Aceh Government has completely ignored this obligation.
“The situation is very clear. If President SBY does not cancel the Aceh Spatial Plan an extremely dangerous precedent will be set for law enforcement in Indonesia, and environmental commitments right across the country. Time is running out for President SBY. He only has a couple of weeks before he steps down from office,” said Greenpeace forest campaigner Teguh Surya.
“Thousands of Aceh residents have already lost their livelihoods, and many have lost their lives, because of bad land-use planning” said Effendi. “The will of the people of Aceh is to restore our forests, not destroy them, as they protect our communities from flooding and are the key to our long term prosperity. They are a huge natural asset to the economy of Aceh, millions of people rely on having Leuser’s forests protected,” he concluded.
“Losing the Leuser Ecosystem would be a humanitarian and environmental disaster,“ said leading primatologist Dr Ian Singleton, Director of the Sumatran Orangutan Conservation Programme. “It is the last place on earth where orangutans, rhinos, tigers, and elephants coexist in the wild. President SBY has said he never wants to have to tell his granddaughter, Almira, that these species disappeared like the dinosaurs. But he risks having to tell her exactly that, and that it was he himself who allowed it to happen! He risks having to admit to Almira that by his own failure to enforce national laws, he was personally accountable for the extinction of these iconic Indonesian treasures.”
“The President of Indonesia can respond to the calls of thousands of people rallying for bold climate action by rejecting the plan to destroy the Leuser Ecosystem for palm oil and pulp plantations. Business as usual practices are no longer tenable as consumers, investors and governments are taking action to secure a safe climate by demanding deforestation and conflict free commodities,” concluded Gemma Tillack, Agribusiness Campaign Director for Rainforest Action Network. [ends]
Images available on request:
Farwiza Farhan – Media Officer – Forest Nature and Environment Aceh
+62 821 6261 0756
For further comment:
Teguh Surya – Forest and Climate Campaigner – Greenpeace Indonesia
+62 819 1519 1979
Dr Ian Singleton – Director – Sumatran Orangutan Conservation Programme
+62 811 650 491
Effendi Isma – Spokesperson – Aceh Forest Care Coalition
+62 813 6016 0055
Video available at: http://www.youtube.com/watch?v=7x5UyXKYnYg
We launched a campaign to turn up the heat on Pepsico and its use of Conflict Palm Oil. The goal has been to takeover its darkly ironic #LiveForNow advertising campaign that encourages consumption while ignoring human rights abuses, land grabs, and deforestation. Supporters like you have been doing just that by tweeting pictures from events and anywhere they spot the logo of Pepsico’s flagship brand Pepsi, calling out the truth.
Our “#LiveForNow Shouldn’t Mean Destroying Tomorrow” site is built for people like you to use to crank up the pressure on PepsiCo. Pictures coming in from people across the US and the globe will make it clear to PepsiCo that our movement is building and we won’t stop until it ends its use of Conflict Palm Oil.
Remember, take a selfie with a Pepsi sign and tweet it out with the hashtag #LiveForNow and we’ll feature you on the site too!
We know your pressure is working. PepsiCo is one of the 5 laggards companies we called out in April who have refused to take effective steps to eliminate Conflict Palm Oil, but other companies are moving. This week, palm oil laggard Conagra Foods announced a new commitment to eliminate Conflict Palm Oil. Together we can push PepsiCo to do the right thing and fix the weaknesses in its Palm Oil Commitment. So keep up the pressure! Start now by sharing our spoof site with your friends and family on Twitter and Facebook.
On May 20, thousands of us united in a Global Day of Action to tell PepsiCo to eliminate Conflict Palm Oil. PepsiCo responded by announcing a Forestry Stewardship Policy and Palm Oil Commitment, but neither of these new promises are strong enough to guarantee that Pepsi’s use of palm oil is not driving rainforest destruction, species extinction and human and labor rights abuses.
PepsiCo is the largest globally distributed snack food company in the world - the company uses enough palm oil every single year to fill Pepsi cans that would stretch around the Earth 4 times - but it has fallen out of step with its peers and still has no truly responsible palm oil purchasing policy.
Instead of cutting Conflict Palm Oil from its products, PepsiCo continues to push its darkly ironic #LiveForNow campaign. PepsiCo is telling people not to worry about climate change, the fate of the last wild orangutans and children that are forced to work in slave-like conditions on oil palm plantations and just #LiveForNow!
It’s our job to tell PepsiCo that #LiveForNow isn’t good enough. This summer we’re turning up the heat.
PepsiCo is pushing its #LiveForNow propaganda out through it’s “Real Big Summer” marketing campaign which includes Pepsi sponsored concerts and events across the US. We need YOU to crash Pepsi-sponsored events and deliver the message that #LiveForNow shouldn’t mean rainforest destruction, climate change and human rights abuses.
Because of you PepsiCo has made some progress. With your help we’ve convinced the snack food giant to go beyond just sourcing Roundtable on Sustainable Palm certified palm oil. However, PepsiCo’s policies lack a commitment to trace its palm oil back to the plantations where the oil palm fruit was grown and to verify that its suppliers operations are free of forced and child labor, conflicts with Indigenous Peoples and local communities, and clearance of rainforests and peatlands. It also lacks a time bound action plan, so it’s hard for its consumers to know what steps it will take to clean up its palm oil supply chain.
This isn’t good enough. PepsiCo must adopt a policy that is inline with what forests, the people that rely on them and our planet need and demand that its suppliers, like Cargill, do the same.
With your help we’ll convince the global snack food giant to take the steps that will guarantee that its products - like Quaker Oats and Frito-Lay Chips - will be free of Conflict Palm Oil for good.
Help us turn up the heat on PepsiCo this summer. Sign up to let us know you’re in.
Almost six months after the release of its Sustainable Forest Management Policy, Asia Pacific Resources International Ltd (APRIL)—the second-largest Indonesian pulp & paper company—continues business-as-usual rainforest destruction, betraying the spirit and substance of its policy.
The Sydney Morning Herald reported in May that APRIL-owned PT RAPP cleared massive swaths of carbon-rich peatlands on Pulau Padang, an island off the Sumatran coast that APRIL promised to help restore. Members of island community Desa Bagan Melibur have called on APRIL to terminate operations on their community land, and Desa Bagan Melibur’s May 17 protest is the most recent clash in a stark legacy of land disputes between APRIL and Padang’s thirteen villages since 2009.
Pulau Padang’s peatlands store millions of tons of carbon and are home to endangered species and communities that depend on these forests for their livelihoods. You could also say the island itself is endangered: decaying peat causes the low-lying island to subside, and scientists warn that if no action is taken, Padang may very well be under sea level and useless for any type of cultivation by 2050.
APRIL’s forest policy itself is rife with loopholes and allows APRIL to continue slashing natural forests in its concessions through December and source rainforest fiber until 2020. Yet the company’s refusal to uphold even its weak policy commitments brings APRIL’s intentions entirely into doubt. In addition to the Pulau Padang case, earlier this year, APRIL suppliers were caught clearing natural forests on legally protected peat land in Borneo and high conservation value forest on peat land in Riau. In the latter case, not only were internationally protected ramin trees cut down, but APRIL supplier PT Triomas allegedly attempted to hide the evidence by burying the contraband logs.
There is mounting recognition that APRIL’s policy and actions are insufficient and not credible. Last Friday, RAN and an international collation of allies co-authored a letter highlighting the severe shortcomings in APRIL’s policies, such as the lack of a moratorium on natural forest and peat land conversion, unclear commitments on resolving social conflicts, and the policy’s narrow scope, which does not extend to cover APRIL’s sister companies within owner Sukanto Tanoto’s rogue cartel of companies, such as Toba Pulp Lestari, Sateri, and Asian Agri. The letter also points to the inadequacy and questionable credibility of the Stakeholder Advisory Committee (SAC) APRIL set up to help develop, implement, and monitor the forest policy in a transparent and independent manner.
APRIL’s new policy and the SAC risk being nothing but a parade of environmental lip service built on teetering scaffolds of environmental destruction, social conflict, and corruption. Customers and financiers must cut ties with APRIL and other companies owned by Sukanto Tanoto and pressure APRIL to end rainforest clearing and respect community rights.
We don’t get to do this as often as we would like. Today, we get to share some good news with you. Thanks to your hard work and support over the past four years, the world’s top publishers are moving in the right direction when it comes to eliminating rainforest destruction, human rights violations, and species extinction from their supply chains.
We’re publishing A New Chapter for the Publishing Industry: Putting Promises into Practice today, which outlines the shift in the entire sector as the implementation of publishers’ Indonesian forest commitments proceeds. Given the progress that publishers have undertaken in the last four years (since our 2010 report), we can confidently say that you have successfully prodded the 10 biggest publishers—and hence the whole industry—in the right direction. Click here to read the new report.
To really illustrate the point, we are pleased to tell you about two recently announced paper policies from Houghton Mifflin Harcourt and Macmillan. These policies go farther, in many ways, than past commitments from other companies. They demonstrate a new level of thoughtfulness and attention to detail—and a fierce commitment to eliminating controversial fiber and suppliers in order to protect the forests facing the greatest threats. Over the last four years, RAN has worked closely with publishers to develop and innovate the best practices for eliminating controversial fiber and suppliers from supply chains, and verifying and implementing forest commitments. What has emerged is a set of best practices (spelled out in the report) that could guide companies--not just in paper but in many forest commodities--in tracing their supply chains and protecting forests in the process. Of course, there’s still work to be done.
In order to translate this work to change on the ground, publishers should urge all of their supply chain partners to develop and implement strong, comprehensive paper policies. And, in particular, all companies should either stop buying (or maintain their no-buy stance) on controversial Indonesian pulp and paper giant APRIL and all affiliated companies.
Of course, this transformative work would never have been possible without you. While much of this work has happened behind the scenes, you were with us every step of the way through your commitment to RAN and its work.
Have you seen the press around Years of Living Dangerously yet? We're amazed by what's happening over at Showtime right now and we think you will be too. Not since Al Gore's An Inconvenient Truth has this much time, talent and money been put into bringing the dramatic reality of climate change into the mainstream. We're at a tipping point in our historic effort to end the devastating effects of Conflict Palm Oil on people and the planet, and this kind of primetime, star-studded exposure on the issue has the potential to become a catalyst for major change. But that can only happen if enough people share this gripping program with everyone they know.
To achieve the huge changes we seek, we need to spread the word beyond the choir who already know climate change is the defining crisis of our time, and this new series provides us with a great tool to do just that. During filming, I walked with Harrison Ford down the snack food aisle of a local grocery store explaining how Conflict Palm Oil is destroying Indonesia’s forests. It was a truly memorable moment in my work as a forest advocate.
Now, I’m thrilled to share this link with you where you can watch the premiere episode of ShowTime’s groundbreaking new series on climate change, Years of Living Dangerously, which features our conversation—for free—a week before it will air on cable TV next Sunday, April 13th. (You can also watch the full episode above.)
The forest team at Rainforest Action Network has been working closely with the show’s producers for many months and we are confident that it has the potential to be the most important, highest profile story on climate change in a generation. This hard-hitting 9-part series – vetted by a team of respected climate scientists—brings together some of the biggest names in Hollywood and investigative journalism to dramatically tell the biggest story of our time to a larger audience than ever before. Check it out yourself, then make sure every person you know who is on the fence gets a chance to see this.
The first two episodes, called "The Last Stand, Part 1 and 2," include the story of how Conflict Palm Oil is wreaking havoc on Indonesia’s lush rainforests while spewing immense amounts of carbon pollution into the atmosphere. And crucially, the story brings the issue home by showing how each of us are connected to this growing crisis and how the actions we take to change corporate behavior can make a real difference.
There could not be a more urgent time for as many people as possible to see this unflinching program and hear the compelling message it contains—help us get this message out to everyone by sharing this video with your friends and family.