Palm Oil Report
Report 43February 2024

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Table of Contents
Cases identified using Planet and other spatial imagery
Indonesian Companies
New cases
PT Kusuma Alam Sari: Alas Kusuma Group3

Malaysian Companies

New cases
PIJ Plantation and Agriculture SB: Johor Government

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Supply chain information:
Supply chain information included in Rapid Response reports is based on the latest public versions of mill
disclosures, recent export data, and/or company grievance logs. Mighty Earth encourages companies to send
updated versions of mill disclosures as soon as they become available and to share any decision to suspend
relations with a given group/company listed in those mill disclosures with rapidresponse@mightyearth.org.
Mighty Earth is now including biofuel companies and other manufacturers in the supply chain tables of Rapid
Response reports, as these companies have both direct and indirect trading relationships with groups highlighted
in these reports and should be filing grievances on these cases. These companies are listed in the “Supply Chain
Information” tables.

2New CaseGroup: Alas Kusuma
PT Kusuma Alam Sari

Concession location: (-0.18497, 109.79446)

Deforestation and/or peat development

ReportForest
Loss/Clearance
Preparation(ha)

Peatdevelopment
inc forestareas (ha)Peat forestdevelopment(ha)

Clearance
prep/Stackinglines (ha)~1,300
Report 43-

Jan 2016- Dec 2022
-107

Time period

Dec 2022- Apr 2023

Satellite imagery (see below) shows that between December 2016 and December 2022 there was atotal of ~1,300 ha of peat development (inc forest areas) in the PT Kusuma Alam Sari concession(Source: Planet Inc. 2016-2022)

Satellite imagery (see below) shows that between December 2022 and April 2023 there was a total of107 ha of peat development (inc forest areas) in the PT Kusuma Alam Sari concession (Source: Planet
Inc. 2022-23)

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Supply Chain Information
Company/GroupKPN(update to report:
suspended AlasKusuma Dec 2023)

Trader

AAK, COFCO Int., Fuji
Oil, Itochu, Musim Mas,Olam, Pacific Inter-Link(PIL),

COFCO Int., Fuji Oil

ADM, Itochu, LDC,
Musim Mas, Wilmar

BASF, Barry
Callebaut,
Bisterfeld
Spezialchemie,
Innospec, Nikko
Chemicals,
Oleon,
Searinerie
Dubois, Symrise,
Zschimmer &Schwarz

PT Pundi Lahan
Khatulistiwa(update to report:suspended Alas
Kusuma Nov 2022)

Barry Callebaut,Biesterfeld
Spezialchemie,
Neste, Oleon,
Stearinerie,
Symrise,Zschimmer &Schwarz
Barry Callebaut,
Bisterfeld
Spezialchemie,
Innospec,
Symrise,Zschimmer &Schwarz

Tunas Baru Lampung(FFB link to Alas
Kusuma TBD)

Biofuel / othermanufacturers

PT Cipta Tumbuh
Berbuah
ADM, Sime Darby(FFB link to Alas
Kusuma TBD)

Barry Callebaut,Oleon, Symrise,
Zschimmer &Schwarz

Consumer Brand

Colgate, Danone, Hershey,
Kellogg, Meg Snow,
Moldalez, P&G, PZ Cussons,PepsiCo, Reckitt Benckiser,
Dubois, Unilever,
Vandemoortele

Avon, General Mills, Kellogg,
Mondalez, P&G, PepsiCo,
Reckitt Benckiser

Avon, Friesland Campina,
General Mills, Hershey,Kellogg, Nisshin Oillio, P&G,
PZ Cussons, PepsiCo, Reckitt
Benckiser, Unilever, Upfield

Friesland Campina, GeneralMills, Kellogg, PZ Cussons,
Reckitt Benckiser, Unilever,
Upfield

PT Surya Borneo Indah(FFB link to Alas
Kusuma TBD)

Not identified

Not identified

Avon

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Background information on Ownership and the Concession
In August 2023, Mighty Earth filed a complaint against the Alas Kusuma Group with the Forest
Stewardship Council (FSC) for violating the FSC Policy of Association including the conversion offorests, peatlands and other High Conversation Value (HCV) areas to timber and oil palm plantations.
In December 2023, the FSC accepted the complaint.
Alas Kusuma’s PT Mayawana Persada (timber plantations) has cleared 14,000 ha of forest between
January and August 2023, making it the largest deforester in Indonesia with 4,970 ha cleared in July
2023 alone. Since 2018, the PT Mayawana Persada group has cleared over 30,000 ha of forest.
The Alas Kusuma Group also has two oil palm operations: PT Sawit Jaya Makmur and PT Kusuma AlamSari. In the PT Kusuma Alam Sari concession alone, we estimate that over 1,300 ha of peatland wasdeveloped between January 2016 and December 2022 and, in 2023, an additional 107 ha of peatareas have been developed – see Planet imagery on following page.

PT Sawit Jaya Makmur and PT Kusuma Alam Sari relies on external sales of Fresh Fruit Bunches (FFB)
from its oil palm operations as the group does not own any palm oil mills. Aidenvironment’s October
2023 report provides an ‘overview of mills situated in close proximity to PT Kusuma Alam Sari and PT
Sawit Jaya Makmur, outlining their NDPE policy status, and their responses regarding any potential
connections with Alas Kusuma’s palm oil business operations.’
The report states:‘AidEnvironment obtained private information indicating that Alas Kusuma supplies FFB to KPN’s PT
Graha Agro Nusantara and Tunas Baru Lampung’s PT Bumi Perkasa Gemilang. Despite efforts tocontact both parties for confirmation, no response has been received as of this report being written.’‘In 2021, investigations by an Indonesian NGO found that Pundi Lahan Khatulistiwa bought fresh fruitbunches from Alas Kusuma’s PT Kusuma Alam Sari. However, direct communication with PT Pundi
Lahan Khatulistiwa has not been established, making it impossible to confirm whether FFB from PTKusuma Alam Sari are still being supplied to PT Pundi Lahan Khatulistiwa.’‘Potential Buyers of Alas Kusuma’s Palm Oil’ also include PT Cipta Tumbuh Berbuah and PT Surya
Borneo Indah.

5Background information on Ownership and the Concession (cont.)

In December 2023, Mighty Earth contacted traders and refiners regarding this case and requested
that they make investigations to whether the above mills/groups are in their supplier chain, andwhether those mills are sourcing FFB from PT Sawit Jaya Makmur and PT Kusuma Alam Sari.
A small number of traders replied stating that:
1. PT Pundi Lahan Khatulistiwa stopped sourcing from Alas Kusuma in November 2022;
2. KPN’s PT Graha Agro Nusantara mill was sourcing from Alas Kusuma and that that KPN wasinvestigating the case. In January 2024, we were informed that KPN decided to stop sourcing from PT
Sawit Jaya Makmur and PT Kusuma Alam Sari in December 2023.
Since at least November 2023, KPN Plantation’s website shows ‘Under Construction’, so we have been
unable to verify if KPN has filed this case as a grievance.
To date, only Pacific Inter-Link (PIL) and Neste have filed this case as a formal grievance in theirgrievance logs:
Further Mighty Earth has not received email responses from traders/refineries (listed on the previouspage) that are sourcing from Tuna Baru Lampung and/or PT Cipta Tumbuh Berbuah and whether
these mills is sourcing FFB from PT Sawit Jaya Makmur and/or PT Kusuma Alam Sari. Hence, Mighty
Earth is the filing of this case in Rapid Response report 43 as a formal grievance for investigation.

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Mapping analysis

Alert Imagery (before and after satellite images)
Clearance location: (0.18497, 109.79446)
Date: December 2022

Date: April 2023

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New CaseGroup: Johor State government
PIJ Plantation and Agriculture SB Ladang Nilam
Concession location: (1.893768, 103.985849)

Deforestation and/or peat development

ReportReport 43

ForestLoss/Clearance
Preparation(ha)

Peatdevelopment(ha)

Peat forestdevelopment(ha)

Clearance
prep/Stackinglines (ha)Time period

239---June 2019-February
2021

Satellite imagery (see below) shows that between June 2019 and February 2021 there was a total of239 ha of forest loss in the Ladang Nilam estate of PIJ Plantation and Agriculture SB (Source: Planet
Inc. 2019-2021)

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Supply Chain Information
Company/GroupPIJ Plantation andAgriculture (FFBsales only)

MillTradern/an/aBiofuel / othermanufacturers

Consumer
Brandn/an/aFuji Oil, KLK, LDC,Olam, Sime Darby

ISF

Avon, Ferrero,
Friesland Campina,Hershey,
Johnson & Johnson,
Mars, Nestle, P&G,
Reckitt Benckiser,
Unilever

AAK, ADM, Bunge,
Fuji Oil, KLK, Mewah,
Sime Darby, Wilmar

ISF, Lipsa, Oleon,Colgate, Danone,
Ferrero, Friesland
Campina, Hershey,
Johnson & Johnson,Mars, P&G, PZ
Cussons, Reckitt
Benckiser, Upfield,
Vandemoortele

ADM, Fuji Oil, IFFCO,
KLK, Mewah,
Pacific Inter-link (PIL),
Sime Darby, WIlmar

ISF, Lipidos, Nisshin
OillioColgate, Danone,Ferrero, Friesland
Campina, Hershey,Johnson & Johnson,Mars, P&G, PZ
Cussons, Reckitt
Benckiser, Upfield

n/a
2019

n/aKulim(Malaysia)
Bhd

2021

n/a

2023

9Background information on Ownership and the Concession
A recent review of 2023 MSPO certification reports by Mighty Earth has identified a recently developedoil palm concession in the State of Johor, Malaysia. The March 2023 MSPO report for PIJ Plantation andAgriculture Sdn Bhd discloses its Ladang Nilam oil palm estate as ‘not having MPOB license due to thearea still in immature stage’ and provides a concession map – see following page.
Planet imagery shows that the development took place between June 2019 and February 2021. As mostof the NDPE palm oil industry have adopted a 31 December 2015 cut-off date as part of their policy
implementation, this deforestation would be a violation of this cut-off date.
The MSPO report list 5 certified estates, totalling 4,089 hectares (ha), which are producing Fresh Fruit
Bunches (FFB). The report does not reference any mill(s) owned by PIJ Plantation and Agriculture SdnBhd.
As shown by the group structure below, the Johor Government owns PIJ Plantation and Agriculture Sdn
Bhd and Kulim (Malaysia) Bhd - which has 5 palm oil mills in Johor which are in the supply chain ofnumerous palm oil traders, refiners, and consumer brand companies – as listed on the previous page.
Johor Government also owns (through Johor Corporation) the majority shares in QSR Brands, which
operates a ‘total of 1,354 KFC and Pizza Hut restaurants in Malaysia, Singapore and Brunei.’
As PIJ Plantation and Agriculture Sdn Bhd does not have an NDPE policy, the company should address
this case by adopting such a policy and address the 239 ha deforestation liability from the developmentof Ladang Nilam oil palm estate.

10Mapping analysis

Reference concession map from MSPO report

Alert Imagery (before and after satellite images)
Clearance location: (1.893768, 103.985849)
Date: June 2019

Date: February 2021

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