September 11, 2018

New peat drainage taints 20 palm oil traders, buyers

JAKARTA ( - In late April and early May this year respectively, PT AGL and PT CAA, two palm oil companies controlled by Ciliandri Anky Abadi (CAA/First Resources), were issued with a sanction from the Indonesian Environment and Forestry Ministry for peat violations they had committed.

Nonetheless, both companies continue to display legal non-compliance with the terms of these sanctions. The two companies operate in Central Kalimantan’s Pulang Pisau regency, one of the peat restoration priority regencies designated by President Joko Widodo in early January 2016.

Planet Explorer images from May-August 2018, which were analyzed by the team, clearly show that both the First Resources-controlled palm oil companies continue to clear and drain forested peatlands. 

The satellite images below demonstrate how PT AGL went ahead with the clearing and draining of peat forests even after the sanction was imposed on it by the Environment and Forestry Ministry in late April 2018.

Meanwhile, PT CAA, the second of the First Resources/CAA palm oil companies to be hit with a sanction - in early May 2018 - has also carried on flattening peat forests to be drained and developed into new palm oil plantations, as proven by the following satellite images.

As clearly stated within the sanction-related documents given to the two First Resources/CAA-controlled palm oil companies, the level of legal sanctions concerned can be raised if the two companies fail to comply with the initial sanction imposed on them.

20 global traders, buyers identified 

report from Chain Reaction Research (Jun 2018) revealed that First Resources, listed on the Singapore exchange and one of the leading palm oil producers to have committed to zero deforestation at all levels of its operations, also controls the CAA palm oil business group. 

The report also identified at least 20 global palm oil traders and buyers whose supply chains are connected to First Resources/CAA. These include major players such as Wilmar, IOI, Musim Mas, Asian Agri, Golden Agri-Resources, Cargill, Nestle and Unilever.

The other companies whose supply chains are linked to the peat drainage practices carried out by First Resources/CAA are Mars, Bunge, Sime Darby, ADM, AAK, Reckitt Benckiser, General Mills, PepsiCo, P&G, Nestle, Olam and Colgate Palmolive.               

First Resources/CAA’s ongoing clearing and draining of peat forests highlight the fact that the aforementioned 20 global palm oil traders and buyers remain tainted by peat destruction practices.