Will PepsiCo Drop Indofood?

Despite having commitments to no deforestation and no exploitation, PepsiCo is partnering with a company proven to be clearing rainforests and abusing workers’ rights.

Chelsea Matthews headshot posted by Chelsea Matthews

Indonesia’s largest food company, Indofood, has been kicked out of the world’s largest palm oil sustainability certification system — the Roundtable on Sustainable Palm Oil (RSPO) — after it refused to address worker exploitation on its palm oil plantations.

Now that the RSPO has finally stopped giving this exploitative company a false “sustainable” stamp of approval, there is nowhere for companies still buying from, bankrolling, and otherwise partnering with Indofood to hide.

Numerous companies, including major global brands, banks and palm oil traders, have already cut ties to Indofood. They’ve recognized that this company is bad for business.

But despite having commitments to no deforestation and no exploitation, PepsiCo has yet to drop Indofood.

PepsiCo has known about Indofood’s exploitation since RAN and our partners ILRF and OPPUK first exposed the abuses three years ago. While PepsiCo stopped buying palm oil from Indofood, it still remains in a business partnership with the company. PepsiCo cannot simply stop purchasing from Indofood and consider the problem solved. By continuing to have a formal business relationship with Indofood, PepsiCo knowingly continues to support an abusive company, and is therefore contributing to the harm being done to workers.

The exploitative situation for workers has not improved and Indofood continues to avoid its responsibilities to them. There is no excuse to remain in business with Indofood. We need companies to cut their ties — including PepsiCo — to signal to Indofood that it cannot gain access to the international market until it cleans up its act. Anything less proves that these companies are complicit in Indofood’s exploitation and destruction.

A worker transports fresh fruit bunches to a collection point in PT. London Sumatra Plantation. North Sumatra

The world’s largest palm oil trader Wilmar and snack food giant Nestle have ended their joint venture partnerships with Indofood. When will PepsiCo do the same?

There is no more time for delays. Call on PepsiCo to urgently clean up its palm oil supply chain and end business with Indofood.