November 11, 2024 – [San Francisco, CA]—Rainforest Action Network (RAN) has released a groundbreaking report revealing significant illegal deforestation in Indonesia’s Rawa Singkil Wildlife Reserve. The report utilizes state-of-the-art Pléiades Neo satellite imagery sourced from Airbus. Captured in July 2024, the imagery, with a remarkable 30cm resolution, exposes the ongoing destruction of vital conservation areas within the Leuser Ecosystem, a global biodiversity hotspot renowned as the “Orangutan Capital of the World,” for palm oil production.
“The ongoing destruction of one of the world’s most critical ecosystems is a wake-up call for brands, banks, and consumers alike,” said Gemma Tillack, Forest Policy Director at Rainforest Action Network (RAN). “The evidence clearly shows that palm oil sourced from illegally cleared land is infiltrating global supply chains, putting iconic species like the Sumatran orangutan at grave risk.”
“Products we buy every day like Olay, Milo, Oreos, Lay’s, and CupNoodles are being exposed to illegal palm oil in their supply chains, and we have the receipts to prove it,” Tillack said.
Despite existing No Deforestation (NDPE) commitments from the palm oil sector and the new European Union Deforestation-free Regulation (EUDR) proposed to come into effect on December 31, 2025, the findings highlight that deforestation has escalated alarmingly since adopting these anti-deforestation rules. RAN’s satellite investigation with The TreeMap documented that since June 2016, a staggering 2,577 hectares of forest have been lost within the reserve. Shockingly, 662 hectares were cleared after the December 2015 cut-off date established by the global palm oil sector, with a further 1,915 hectares cleared post the December 2020 EUDR deadline.
The report underscores the devastating impact of illegal palm oil plantations, which RAN identified as the primary driver of deforestation. Of particular concern is the revelation that land speculators, rather than smallholder farmers, are the key actors behind this environmental crisis.
Key findings from RAN’s investigation include:
- Widespread Illegal Palm Oil Production: 652 hectares of illegal palm oil plantations have been established within the reserve, with 453 hectares classified as productive. This suggests that illegal palm oil could already be entering the supply chains of major global brands and traders.
- Impacted Brands and Banks: Major brands implicated include Procter & Gamble, Nestlé, Mondelēz, PepsiCo, and Nissin Foods, alongside banks such as MUFG, Rabobank, and HSBC. These entities risk exposure through their sourcing from or financing of traders Royal Golden Eagle Group (Apical), Musim Mas Group, and Permata Hijau Group caught sourcing illegal palm oil.
- Increasing Deforestation Rates: Despite its status as a legally protected area, the reserve saw a fourfold increase in deforestation between 2021 and 2023. An alarming 74% of total deforestation since 2016 occurred after the EUDR cut-off date of December 31, 2020, indicating a systematic disregard for legal protections and regulatory requirements.
- New Loopholes: This investigation documents the rise of a new palm oil ‘laundering’ loophole in which wealthy land speculators use the cover of smallholder farmers to avoid accountability for illegal deforestation.
The findings raise urgent questions about the effectiveness of current corporate implementation of no-deforestation commitments and the readiness of palm oil traders and brands to comply with the EUDR.
“For the first time, timely satellite images — detailed enough to capture individual palm trees, even young saplings — expose the full scale of the palm oil crisis in this protected wildlife reserve,” said Dr. David Gaveau, with The TreeMap. “With these advanced tools made public, violations previously missed by free satellite data can now be documented.”
RAN urges immediate collaborative action among brands, traders, and financial institutions to invest in sustainable solutions that protect the Singkil-Bengkung Trumon region. A shared vision must prioritize the conservation of lowland rainforests and peatlands while fostering community-led agriculture that respects the rights and livelihoods of local populations.
RAN contacted all the brands and banks mentioned in this report, and their responses are included within the report itself. For further insights and to view the satellite imagery, visit Forest Frontlines––RAN’s dedicated watchdog platform––and Nusantara Atlas.
Contact:
Emma Rae Lierley, RAN: +1 236 668 3135
Gemma Tillack, RAN: +1 456 843 690
David Gaveau, The TreeMap: +33 6104 56429