August 28, 2018

16 global palm oil players linked to ongoing peat fires 

JAKARTA( - Four of the five palm oil concessions (PT SUM, PT PLD, PT AAN, and PT RJP) owned by GAMA Plantation in West Kalimantan's Kubu Raya regency have been sealed by the Indonesian Environment and Forestry Ministry (Aug 25-26) in law enforcement operations due to ongoing peat fires in the concessions. 

The operations were led in person by the Ministry's Law Enforcement Director General Rasio "Roy" Ridho Sani.

Roy explained that Environment and Forestry Minister Siti Nurbaya had ordered them to immediately go to the locations concerned and take law enforcement action against the companies within whose concessions evidence related to fires has been found. 

GAMA, a family company group owned by Ganda and Martua Sitorus, is a global supplier of palm oil.

Below are photos showing the law enforcement action taking place in which the four GAMA palm oil concessions were sealed by the ministry’s law enforcement team.


This situation confirms that global palm oil supply chains continue to be linked to suppliers, including GAMA Plantation, whose concessions are afflicted by ongoing peat fires.

16 traders and buyers 

According to a report recently published by Chain Reaction Research, there are 16 traders and consumer goods companies whose supply chains depend on palm oil from GAMA mills among others. 

The companies in question are NestleUnileverCargillSime Darby. General MillsPepsiCoMarsP & GAAKColgate PalmoliveADM GlobalReckitt BenckiserIOI corporationOlamMusim Mas and Wilmar

The sealing of the four GAMA palm oil concessions also proves that the supply chains of the 16 palm oil traders and buyers listed above remain linked to ongoing peat fires, at the very least in the GAMA palm oil concessions.

AidEnvironment responds 

Meanwhile, as announced in a press release (Aug 10), AidEnvironment has entered into a 3-year collaborative agreement with GAMA to develop and implement a No Deforestation, No Peat and No Exploitation (NDPE) policy.

Eric Wakker, co-founder of AidEnvironment Asia, when asked by for his response to the sealing of the concessions (Aug 28), said that he was aware of the law enforcement action taken against the GAMA palm oil companies.

“We appreciate the government’s proactive law enforcement, as always,” he stated. 

Wakker went on to say, “We will look into the affected areas - where they are, who really lays claim to the land and land use, and how the companies deal with fire risks, given the undisputed fact that fires have affected tracts of land in and around the companies' plantations.”