Supply chains of major brands found to be tainted with Conflict Palm Oil, Again
As Indonesia’s extraordinary Leuser Ecosystem has gained international recognition as a global biodiversity hotspot, the conservation of the last home of Sumatran orangutans, elephants, tigers and rhinos has become somewhat of a litmus test for the seriousness and effectiveness of the deforestation commitments of global consumer goods giants like Nestlé, Colgate Palmolive, Nissin Foods and PepsiCo. And while overall rates of forest destruction have indeed started to decline in recent years, one rogue palm oil company has emerged as the primary remaining culprit responsible for continued clearance of the Leuser’s irreplaceable rainforests inside government allocated concessions. That controversial company, PT. Nia Yulided Bersaudara (PT. NYB), has been repeatedly exposed for destroying rainforests in the province of Aceh and continues to decimate the lowland rainforests in the north-east of the Leuser Ecosystem.
Drone footage of lowland rainforest destruction for palm oil plantations inside PT. NYB concession in Aceh Timur.
Rainforest Action Network has documented evidence of forest destruction by PT. NYB that has continued through September 2022 with nearly 2224 acres of rainforests destroyed for logging operations and the expansion of palm oil. The forest cover within the company’s palm oil concession area has been reduced from 4873 hectares in 2016 to 2664 hectares in October 2022. The scale of damage can be seen from new drone footage, satellite images, and on the ground images taken from within the palm oil plantation that have been obtained by RAN’s field investigation team.
For years, major brands have claimed that they can not intervene to stop the destruction caused by PT. NYB because the company was not supplying palm oil to mills in their supply chains. Now, over 5 years after some areas were destroyed to plant palm oil seedlings, the oil palm trees are bearing fruit and the company and Mr Deddy Sartika––its owner and son in law of the former acting governor of Aceh, Tarmizi Abdul Karim– is looking to profit from the destruction by selling its palm oil to the suppliers of major brands. RAN’s field investigators have gathered evidence proving that the companies’ palm oil plantation is now producing fruit on deforested lands and the oil palm fruit that is being harvested is being collected by a dealer called RAM UD Makmur Jaya and sold to a mill called PT. Bumi Sama Ganda. PT. Bumi Sama Ganda is listed as a supplier of palm oil to Nestlé, Colgate Palmolive, PepsiCo, Nissin Foods and major traders including Wilmar, Golden Agri Resources, Sime Darby, ADM and Bunge Loders Croklaan.
Despite years of back to back scandals from being exposed for driving deforestation in the Leuser Ecosystem ––including the recently published carbon bomb scandals report, where the brands were caught sourcing illegal palm oil from controversial supplier in protected peatlands in south-west Leuser–– the monitoring and procurement systems of major brands are failing to stop sourcing palm oil from producers responsible for the destruction of the Leuser Ecosystem. RAN is calling on these brands and traders to stop sourcing from PT. Nia Yulided Bersuadara, PT. Bumi Sama Ganda, and the brokers and traders involved in supplying Conflict Palm Oil to the market.
Satellite image showing forest loss within PT. NYB concession. September 2022.
Forest loss within PT. NYB concession. September 2022.
RAN’s field investigators have proof that PT. Nia Yulided Bersaudara’s palm oil plantation is now producing fruit on deforested lands and the oil palm fruit that is being harvested is being collected by a dealer called RAM UD Makmur Jaya and sold to a mill called PT. Bumi Sama Ganda. PT. Bumi Sama Ganda is listed as a supplier of palm oil to Nestlé, Colgate Palmolive, PepsiCo, Nissin Foods and major traders including Wilmar, Sime Darby, ADM and Bunge Loders Croklaan.
Oil palm fruit harvested within PT. NYB concession is being collected by a dealer called RAM UD Makmur Jaya. This image shows the collection point. Kenuning Hulu Village, Bireum Bayeun subdistrict, Aceh Timur.
GPS 04º26’39″N 97º53’93″E
Oil palm fruit visible on a young oil palm tree inside PT. NYB’s concession. GPS Coordinate: 04º26’18.81″N 97º50’06.25″E
Oil palm fresh fruit bunches at the collection point.
Oil palm fruit was loaded up at the collection point of RAM UD Makmur Jaya and delivered to a Crude Palm Oil mill called PT. Bumi Sama Ganda.
A purchase receipt showing the oil palm fruits collected by RAM UD Makmur Jaya were sold to PT. Bumi Sama Ganda (PT. BSG).
Published mill lists show that PT. Bumi Sama Ganda is a supplier to Nestlé, Colgate Palmolive, PepsiCo, Nissin Foods and major palm traders. So despite years of being exposed for driving deforestation in the Leuser Ecosystem ––including the recent carbon bomb scandals where the brands were caught sourcing illegal palm oil from controversial supplier in protected peatlands in south-west Leuser–– the monitoring and procurement systems of major brands are failing to stop sourcing palm oil from producers responsible for the destruction of the Leuser Ecosystem. Published mill lists also show that Wilmar, Sime Darby, ADM and Bunge Loders Croklaan are sourcing from PT. BSG.
Nestlé, Colgate Palmolive, PepsiCo, Nissin Foods must effectively immediately stop sourcing from PT. Nia Yulided Bersuadara, PT. Bumi Sama Ganda and palm oil traders that have failed to break their ties with the destruction of the Leuser Ecosystem. Actions and investments must be scaled up to ensure the protection of the last remaining threatened lowland rainforests inside government allocated palm oil concessions and outside concessions in areas allocated for conversion to agriculture in Aceh Timur. Aceh Timur is one of nine priority districts on the frontline of palm oil expansion in Aceh, Indonesia. To date, only PepsiCo and Unilever have commitments to invest in landscape level programs in Aceh Timur. It is critical that their peers in the Consumer Goods Forum––and palm oil traders that source from Aceh––follow suit to address their role in driving deforestation in the north-east of the Leuser Ecosystem
