IndoAgri Commits To Labour Right

JAKARTA, SAWIT INDONESIA – 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  to Worker Exploitation in Indonesia.” on RAN’s website. The report contains defamatory claims and  allegations  related  to  labour  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.

In the official website, IndoAgri  has  reiterated  the  request  for  substantive  evidence  to  support  these  allegations  on multiple ocassions, but nothing beyond the intial 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 certifed under their sustainability Principles and Criteria, and remain compliant and certified. We have also 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 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 labour or human rights abuses has been found during the Compliance Audits.

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 labour allegations raised by RAN, OPPUK and ILRF. Following below are actions taken and a chronology of key events and timelines relating to these allegations.


1. We have complied fully with the RSPO Complaints Panel process, and subsequent audits of  our North  Sumatra  mills  and  estates,  confirm  we  remain  compliant  with  the  RSPO Principle and Criteria and RSPO certified.

2. We maintain our membership of RSPO and ISPO, and remain compliant and certified.

3.  We have yet to receive any supporting evidence from the Complainants to substantiate their allegations, despite numerous requests.

4. We will follow the RSPO Complaint process for the settlement of the complaint and we are open to receive feedbacks as part of our on-going improvement process.

5. We are awaiting confirmation from RSPO on the final TOR’s for the Independent Field  Verification, which RSPO has indicated will take place in April 2018.

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