On 8 June 2016, a report was published by Rainforest Action Network (“RAN”), Organisasi Perjuangan dan Penguatan Untuk Kerakyatan (“OPPUK”), and International Labour Rights Forum (“ILRF”) entitled, “The Human Cost of Conflict Palm Oil: Indofood, PepsiCo’s Hidden Link toWorker Exploitation in Indonesia.” on RAN’s website. The report contains defamatory claims and allegations related to labor issues in palm oil plantations in North Sumatra owned and operated by Indofood Agri Resources Ltd (“IndoAgri”), and its subsidiary PT PP London Sumatra Indonesia Tbk (“Lonsum”). No substantive facts, evidence or supporting documents have been provided to us to support these allegations.

IndoAgri has reiterated the request for substantive evidence to support these allegations on multiple occasions, but nothing beyond the initial report has been provided.

IndoAgri’s subsidiary Companies are members of The Roundtable for Sustainable Palm Oil(“RSPO”), and Indonesian Sustainable Palm Oil (“ISPO”) bodies, and we are certified under their sustainability Principles and Criteria and remain compliant and certified. We comply fully with all Indonesian laws and regulations, relating to our operations. We have received an award from the Indonesian Government in 2017, for zero accidents at 7 Palm Oil Mills and Estates in North Sumatra.

On 11 October 2016, RAN, ILRF, and OPPUK lodged a complaint (“Complaint”) to the RSPO Complaints Panel and since then the allegations have been the subject of an ongoing review and audit by RSPO.

As a member of RSPO, we have complied fully and followed the process and procedures as outlined by the RSPO Complaints Panel, through the engagement with the RSPO independent auditor from Accreditation Services International (“ASI”) and SAI Global with regards to the resolution of this complaint. After the various Compliance Audits conducted by RSPO auditors, our plantations remain certified under RSPO, as no evidence of labor or human rights abuses has been found during the Compliance Audits.

Updated 24 January 2019

Since the issuance of the allegation report in June 2016, we have had the following audits from RSPO :

  • 8 Compliance Assessments and Special Audits conducted by RSPO accredited auditors (three audits were witnessed by ASI), relating to the Complaint in North Sumatra.
  • 15 RSPO certification audits as part of regular RSPO certification process in North Sumatra.

Based on the above 23 audits (all carried out by accredited RSPO auditors) all of our mills in North Sumatra remain RSPO certified, as there have been no material findings to substantiate the allegations.

In addition, we have also carried out our own review and actions to ensure the implementation of our policies, compliance to Government regulations and RSPO Principles and Criteria, especially related to the labor allegations raised by RAN, OPPUK, and ILRF. Full chronologies click here

 

Summary

  1. We have complied fully with the RSPO Complaints Panel process, and subsequent audits of our North Sumatra mills and estates, and have to date implemented all NC’s arising from the RSPO audits.
  2. We comply fully with all the Indonesian laws and regulations, relating to our operations.
  3. We have yet to receive any supporting evidence from the Complainants to substantiate

    their allegations, despite numerous requests.

  4. We are not in agreement with some of the Non-Conformities (NCs) from the audit carried

    out from 4 to 7 June 2018 as the basis of CP’s decision and have provided the Complaints Panel with documentary evidence to support our position. However, our comments on the draft audit report were ignored.

  5. We have yet to receive an explanation from the Complaints Panel on the material difference in findings from the 23 Compliance Audits and the Verification Audit.
  6. We remain committed to our Sustainability Policy and complying with the Indonesian Sustainable Palm Oil Principles and Criteria, and Indonesian Regulations to guide us on our Sustainability journey.
Share This