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Report 25

March 2020

Palm Oil Report

Indonesian Companies

New Case

Capitol Group: PT Medcopapua Hijau Selaras

Unresolved Cases

Anglo-Eastern Plantations: PT Kahayan Agro Lestari

Mulia Sawit Group: PT Persada Era Agro Kencana

Widya Corporation: PT Mulia Inti Perkasa

Malaysian Companies

Unresolved Case

Shin Yang: Linau Mewah Group Sdn Bhd (Linau Sinar Oil Palm Estate)

New Cases

Medco: PT Energi Mitra Merauke

KTS: Wawasan Sedar Sdn Bhd

Repeat Cases

Salim/IndoGunta: PT Rimbun Sawit Papua

Salim/IndoGunta: PT Rimbun Sawit Papua

Cilandry Anky Abadi Group: PT Citra Agro Abadi

Salim/IndoGunta: PT Rimbun Sawit Papua

HSA Group: PT Megakarya Jaya Raya

Henan Jiujiu Chemical Co Ltd: PT Palem Segar Lestari

Shanghai Xinjiu Chemical Co Ltd: PT Sebaung Sawit Plantation (Smallholder)

NPC Resources Bhd: PT Sumber Alam Selaras

Henan Jiujiu Chemical Co Ltd: PT Palem Segar Lestari

Indounsa Group: PT Internusa Jaya Sejahtera

Unknown Group: PT Gapura Alas Lestari

Shanghai Xinjiu Chemical Co Ltd: PT Sebaung Sawit Plantation

Unknown Group: PT Gapura Alas Lestari

Julong Group: PT Sanjung Makmur

Unknown Group: PT Cipta Karya Sesayap

Green Yield Pte Ltd: PT Tri Investama

Fangiono Family: PT Tirta Madu Sawit Jaya

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Repeat Cases (continued)

Murad Family: PT Kurnia Luwuk Sejati

Unknown Group: PT Sumber Rahmat Sentosa

Unknown Group: PT Laot Bangko

Family ownership – Tuan Junus Sutiono and Tuan Watson Dharma

Unknown Group: PT Marita Makmur Jaya

Kayu Lapis Indonesia: PT Inti Kebun Sejahtera (Block II)

Unknown Group: PT Lestari Subur Indonesia

Unknown Group: PT Sumber Sawit Mitrajaya

Murad Family: PT Kurnia Luwuk Sejati

Puncak Niaga Holdings Bhd: Daum Sinar Sdn Bhd

Samling Group: LPF/0007 Samling Jelalong (OP)

Samling Group: LPF/0006 Samling Lana

Shin Yang Group: Dataran Linau OP (SY) (Lot 1 Block 14 Murum LD)

Double Dynasty Holdings Sdn Bhd: Mutiara Pelita Genaan Plantation Sdn Bhd

Samling Group: LPF/0007 Samling Jelalong (Part 3)

Samling Group: LPF/0008 Marudi & Batu Belah

Samling Group: LPF/0007 Samling Jelalong (Part 1)

Shin Yang Group / Sarawak Oil Palms Bhd: Shin Yang OP Planting Area (LPF/0018)

Unknown Group: Formerly Ekran Plantation

Puncak Niaga Holdings Bhd: Danum Sinar Sdn Bhd

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Supply chain information included in Rapid Response reports is based on the latest public versions of milldisclosures, recent export data and grievance logs. Mighty Earth encourages companies to send updated versionsof mill disclosures as soon as they become available and to share any decision to suspend relations with a givengroup/company listed in those mill disclosures; please send to rapidresponse@mightyearth.org.

Mighty Earth is now including biofuel companies in the supply chain tables of Rapid Response reports, as thesecompanies have both direct and indirect trading relationships with groups highlighted in these reports andshould be filing grievances on these cases. These biofuel companies are listed in the “Traders and BiofuelCompanies” tables.

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PT Medcopapua Hijau Selaras is now part of the The Capitol Group.1

The company is majority owned by PT Yabes Perkebunan Sawit,2 which is wholly owned by one of the sons and granddaughters of Eka Tjipta Widjaja (deceased), the founder of the Sinar Mas Group: Jimmy Widjaja and Raisa Widjaja respectively. The Sinar Mas Group includes GAR and Asia Pulp & Paper (APP), which both have NDPE policies.

1. http://thecapitolgroups.com2. Notary Acts for PT Medcopapua Hijau Selaras and PT Yabes Perkebunan Sawit

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PT Kahayan Agro Plantation is part of Anglo-Eastern Plantations PLC.3

3. p. 98 Anglo-Eastern Plantations Annual Report (2018), www.angloeastern.co.uk/~/media/Files/A/Anglo-Eastern/reports-and-documents/Anglo-Eastern%20AR2018.pdf

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The PT Kahayan Agro Plantation case, which was first included in a Rapid Response report in November 2017, remains unresolved as deforestation is still taking place. After its inclusion in our first Rapid Response report, the case was included in reports 14, 15, 18, 19, 20, 23, and 24.

Since the update on this case was included in report 24 in January 2020, this case has been further escalated with traders sourcing from Anglo-Eastern Plantations, including HCSA Plantation Companies, and the HCSA Secretariat.

At the request of the HCSA Secretariat, on 5 February 2020, Mighty Earth joined a call with Anglo-Eastern Plantations, the HCSA Secretariat and the Chair of the HCSA Quality Assurance Working Group. The meeting discussed the outcome of an HCSA Secretariat rapid peer review assessment of the original HCS report (only a review of the disputed area in question). The HCSA Secretariat followed up this meeting with a letter to Anglo-Eastern Plantations, requesting that the company “confirms in writing that it has issued a stop-work order for the area of concern and will work toward a solution that supports the conservation of this area and an alternative development area for the community.” We believe most HCSA Plantation Companies now have a copy of the letter from the HCSA Secretariat. A copy of the letter and rapid peer review assessment has been published on GAR’s grievance log.

The HCSA Secretariat is now discussing this case on 6 March 2020 with members of the HCSA Executive Committee, which includes Wilmar, GAR and Musim Mas (which all source from Anglo-Eastern Plantations), as well as Greenpeace, WWF, Forest Peoples Programme (FPP), Rainforest Action Network (RAN) and others. Mighty Earth has sent a letter to the members of the HCSA Executive Committee on this case for the meeting on 6 March; a copy can be found here.

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4. See Rapid Response report 20 for ownership details

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PT Persada Era Agro Kencana is part of the Mulia Sawit Group (also known as the MSAL Group).4

The PT Persada Era Agro Kencana case, which was first included in Rapid Response report 9 in October 2018, remains unresolved as deforestation is still taking place. The case was subsequently included in Rapid Response reports 10, 11, 12, 15, 16, 17, 18, 19, 20, 22, 23 and 24.

Based on company grievance logs, ADM, Apical, Bunge, Cargill, Felda IFFCO, and Fuji Oil have subsequently suspended Mulia Sawit from their supply chains.

Itochu, KLK, and Neste have so far failed to suspend Mulia Sawit from their supply chain. We have updated this case in this report and will be escalating this issue with these companies and any consumer good companies that still have Mulia Sawit in their supply chain.

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PT Mulia Inti Perkasa is part of Widya Corporation.5

5. See Rapid Response report 6 for ownership details.

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The PT Mulia Inti Perkasa case, which was first included in Rapid Response report 6 in July 2018, remains unresolved as deforestation is still taking place. The case was subsequently included in Rapid Response reports 15, 16, 20, 21, 22, 23, and 24.

In response to report 15, published in May 2019, PT Mulia Inti Perkasa claimed that the deforestation highlighted in the report was not in areas identified as HCS forest in the HCSA report, which had not been peer reviewed. The map below from the HCS report shows that most of the areas that hadn’t been developed into oil palm plantations were classified as “shrub,” i.e. the yellow areas.

The analysis included in the HCS report report shows that between August 13, 2018 and January 21, 2020 a total of 1,304 hectares were cleared in the PT Mulia Inti Perkasa concession, in areas mostly classified as “shrub.” The HCV report dated around September 2018, which Mighty Earth has seen, also shows these areas as “shrub.”

However, the Planet image from 13 August 2018, which is one month before the HCS report was completed in September 2018, shows that most of these so-called shrub areas in the map above were forest. See enlarged Planet image below, which shows the location of the 1,304 ha of land that was cleared.

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Given the above, we are including this evidence in this Rapid Response report as this case needs to be addressed by traders as a further or escalated grievance.

In addition, we are also submitting this evidence to the HCSA Secretariat for further consideration and investigation, as according to a letter Mighty Earth has seen, which is dated 15 January 2020, PT Mulia Inti Perkasa is intending to submit the HCS report for peer review.

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Linau Mewah Sdn Bhd (Linau Sinar oil palm estate) is part of the Shin Yang Group,6 which is a major shareholder (28.51%) in Sarawak Oil Palms Bhd (also part of the Shin Yang Group).7

Tan Sri Datuk Ling Chiong Ho is founder of the Shin Yang Group and serves as the Chairman of Shin Yang Holding Sdn Bhd and Sarawak Oil Palms Bhd. Tan Sri Datuk Ling Chiong Ho and his brothers, Ling Chiong Sing, Ling Chiong Pin and Ling Chiong Sieng, are substantial shareholders of Shin Yang Holding Sdn Bhd. Tan Sri Datuk Lin Chiong Ho, Ling Chiong Sing and Lin Lu Kwang (the eldest son of Tan Sri Datuk Lin Chiong Ho) are substantial shareholders of Sarawak Oil Palms Bhd.8

Shin Yang is a supplier to Sarawak Oil Palms (SOP).

6. Shin Yang website: www.shinyang.com.my/products-services/oil-palm-plantation.html; SGS website: www.sgs.com/en/certified-clients-and-products/fcm/malaysia/-/media/9ff2c9229a294253b64859b3c0e53409.ashx7. Shin Yang Shipping Corporation Bhd circular to shareholders, 31 October 2016 P9 http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=177560&name=EA_DS_ATTACHMENTS; Sarawak Oil Palm Bhd Annual Report 2018 p848. Sarawak Oil Palms Bhd Annual Report 2018, www.sop.com.my/wp-content/uploads/2019/05/SOP-AR-2018.pdf

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The following cases have been identified through screened GLAD alerts (see methodology below). As these cases are either repeat cases from previous Rapid Response reports or where Mighty Earth did not determine any supply chain links for these concessions/groups, no Planet image analysis was conducted for these cases to save resources.

Mighty Earth expects that palm oil traders and biofuel companies conduct their own due diligence to determine if they are exposed to such companies/Groups. Further, traders and biofuel companies without supply chain links to these cases should put them on their ‘no buy’ lists.

Methodology:For Indonesia, GLAD alerts are screened using the Indonesia Ministry of Forestry and the Environment land cover dataset for 2017 which classifies existing palm oil plantations and primary and secondary forest. Hence, only GLAD alerts in primary and secondary forest according to that dataset are included.

For Malaysia, GLAD alerts are screened to exclude known plantation areas using the Global Forest Watch (GFW) plantations dataset. This automatically eliminates the most common false positives, i.e. the replanting of palm that existed prior to the year 2000.

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*Rapid Response reports available on Mighty Earth’s Rapid Response website page, linked here.

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*Rapid Response reports available on Mighty Earth’s Rapid Response website page, linked here.

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Danum Sinar Sdn BhdPuncak Niaga Holdings Bhd

6.42ha

January 15-

February 17,

2020

Reports 14, 15, 16, 19, 20, 21, 23, 24

*Rapid Response reports available on Mighty Earth’s Rapid Response website page, linked here.

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The work of Mighty Earth is supported by Waxman Strategies. Waxman Strategies’ work on forest conservation is funded in part by Aidenvironment. Waxman is required under 22 U.S.C. § 614 to disclose that this material is distributed on behalf of the aforementioned organization, working under grant from the Norwegian Agency for Development Cooperation. Additional information is on file with the Department of Justice, Washington, D.C.