Permata Group

LIST OF GRIEVANCES AND COMPLAINTS

Last Updated : February 2023

Received Period : May 2018
Company Name	Requester	Description	Status
Austindo Jaya Nusantara	Cargill	Alleged deforestation	Closed

May 2018	PHG was informed by Cargill that ANJ through its subsidiary PT Permata Putera Mandiri and PT Permata Mununggal Perkasa conducted deforestation
Jun 2018	PHG reach out to ANJ to discuss the issue and ANJ's action plan. PHG put a hold on sourcing from ANJ
May 2019	PHG conducted a meeting with ANJ to discuss ANJ's action plan
Oct 2019	ANJ released their Sustainability Policy
Feb 2020	ANJ released their HCS area loss declaration and recovery plan
Oct 2020	ANJ released their HCS area loss declaration and recovery plan first progress report
Oct 2020	PHG conducted a meeting with ANJ to discuss ANJ's progress

Received Period : March 2019
Company Name	Requester	Description	Status
Asam Jawa	Cargill	Alleged development on peat area	Closed

Mar 2019	PHG was informed by Cargill that Asam Jawa through its subsidiary PT. Sumur Pandanwangi developed peat area
Mar 2019	PHG put a hold on sourcing from Asam Jawa and is monitoring further development

Received Period : April 2020
Company Name	Requester	Description	Status
Permata Hijau Sawit	Permata Hijau Group	Labor benefits/facility	Closed

08 Apr 2020	PHG received information from RSPO that a complaint has been lodged against PT. Permata Hijau Sawit by Federasi Serikat Pekerja Metal Indonesia (FSPMI) on behalf of anonymous PHS workers
09 Apr 2020	PHG launched an internal investigation to verify the veracity of the allegation
27 Apr 2020	PHG, RSPO and FSPMI agreed to activate the bilateral engagement process
08 Jun 2020	PHS and FSPMI conducted first bilateral meeting
24 Jun 2020	PHS and FSPMI conducted second bilateral meeting and sign bilateral settlement agreement
11 Aug 2020	RSPO officially closed the complaint against PT. PHS and the complaint is now in monitoring phase

Received Period : June 2020
Company Name	Requester	Description	Status
Kallista Alam	Rainforest Action Network	Alleged deforestation and burning on peat area	Closed

9 Jun 2020	PHG received information through RAN's report titled “Will Nestle and Mars intervene to protect Indonesia's peatland?” that PT. Kallista Alam which is accused of deforestation remains in PHG's supply chain unacknowledged
10 Jun 2020	PHG started an internal investigation and put immediate halt to all purchases from PT. Kallista Alam
12 Jun 2020	RAN lodged a formal grievance against PHG for continuing to buy from PT. Kallista Alam and failing to report it in PHG's mill list
16 Jun 2020	PHG published an official statement on this matter to reaffirm its committment to its NDPE policy and laid out an action plan to rectify the mistake

Surya Panen Subur

Rainforest Action Network

Alleged deforestation and burning on peat area

Closed

09 Jun 2020	PHG received information through RAN's report titled “Will Nestle and Mars intervene to protect Indonesia's peatland?”
10 Jun 2020	PHG started an internal investigation in response to the report
22 Jun 2020	PHG internal investigation found that SPS which was extensively reported by RAN as problematic supplier was in PHG supply chain. PHG suspended all purchases from SPS
01 Jul 2020	RAN released a new report titled " Permata Hijau exposed again for sourcing conflict palm oil" and lodged a formal grievance against PHG for buying from PT. SPS and failing to report it in PHG's mill list
02 Jul 2020	PHG published an official statement clarifying that SPS had been suspended once it was found to be in PHG supply chain during the earlier

Received Period : Agustus 2020
Company Name	Requester	Description	Status
Dua Perkasa Lestari	Rainforest Action Network	Alleged deforestation and community land grab	Closed

24 Aug 2020	PHG received information from RAN's report titled “Major Brands and Banks Complicit in the Production of Conflict Palm Oil on Stolen Community Lands in Indonesia” that our indirect supplier PT. Dua Perkasa Lestari is alleged to have conducted deforestation and community land grab
24 Aug 2020	PHG do not have direct relationship with PT. Dua Perkasa Lestari and reached out to PT. Beurata Subur Persada as our direct supplier sourcing from DPL for clarification
26 Aug 2020	As PHG is currently not sourcing from BSP, BSP declined to provide clarification. We will engage BSP on DPL issue when BSP reenter our supply chain
1 Nov 2020	BSP reenter PHG supply chain and is facilitating our engagement with DPL
5 Apr 2022	Through Kuala Lumpur Kepong, PHG received a report from Earthqualizer indicating PT. Dua Perkasa Lestari (DPL) was found to have allegedly develop 4 hectares of peatland in February 2022 PHG immediately seek clarification regarding the allegation with PT Beurata Subur Persada (BSP)
6 Apr 2022	After engaging with PT. BSP, PT. BSP forwarded PT. DPL permits from Aceh government regarding the maximization of HGU land and the RKPPLP (Rencana Kerja Pembukaan dan/atau Pengolahan Lahan Perkebunan - Work Plan for Plantation Land Clearing and/or Processing) of the said land to be developed PHG informed PT. BSP that even though PT. DPL has full legal right to open the land, since it is allegedly opened on peat, it infringed on PHG sustainability policy as well as PHG supplier code PHG requested PT. DPL to clarify on the peat development allegation
20 Apr 2022	PT. DPL suggested PHG to send a team to visit PT. DPL to discuss the allegation. PHG requested a zoom meeting instead No agreement on the mode of communication reached. Further communication with PT. DPL was unsuccessful
22 Sept 2022	After a long deliberation, PHG requested PT. BSP to immediately stop sourcing from PT DPL, since it is not aligned with PHG’s Sustainability Policy PT . BSP has complied with PHG's request and has stopped sourcing from PT. DPL effective immediately

Teupin Lada

Rainforest Action Network

Alleged deforestation

Closed

24 Aug 2020	PHG received information from RAN's report titled “Fresh Evidence: Major Global Brands Refuse to Stop Sourcing Fire-Fueled Conflict Palm Oil, Despite Promises” that Teupin Lada is buying from PT. Indo Alam which is alleged to have conducted deforestation
24 Aug 2020	PHG reached out to Teupin Lada for clarification
28 Aug 2020	PHG received information from Teupin Lada that they have ceased sourcing from PT. Indo Alam on 25 August 2020. PHG also received commitment from PT. Teupin Lada that they will no longer source FFBs from PT. Indo Alam until PT. Indo Alam has resolved its deforestation issues. Teupin Lada also declared their readiness to furnish traceability to plantation information to PHG

Received Period : September 2020
Company Name	Requester	Description	Status
Syaukath Sejahtera	Rainforest Action Network	Alleged deforestation	Closed

22 Sept 2020	PHG received information from RAN's report titled “Royal Golden Eagle Group Links Global Brands and Financiers to Deforestation In the Leuser Ecosystem” that Syaukath Sejahtera is buying from PT. Tualang Raya
23 Sept 2020	PHG reached out to Syaukath Sejahtera for clarification
24 Sept 2020	PHG received information from Syaukath Sejahtera that they have ceased sourcing from PT. Tualang Raya on 23 September 2020. PHG also received commitment from Syaukath Sejahtera that they will no longer source FFBs from PT. Tualang Raya until PT. Tualang Raya has resolved its deforestation issues

Received Period : January 2021
Company Name	Requester	Description	Status
Nubika Jaya	Permata Hijau Group	Alleged improper handling of wastewater	Closed

06 Jan 2021	PHG received information from RSPO that a complaint has been lodged against PT. Nubika Jaya by LSM Barisan Rakyat Indonesia Satu
07 Jan 2021	PHG launched an internal investigation to verify the veracity of the allegation
20 Jan 2021	PHG submitted a formal response to RSPO answering the allegation levied against PT. Nubika Jaya

Received Period : January 2022
Company Name	Requester	Description	Status
Dewa Rencana Perangin Angin	Permata Hijau Group	Slave labor violations	Closed

28 Jan 2022	PHG received news from the media that 48 men were locked up in barred cells and working for no pay on an oil palm plantation owned by Terbit Rencana Perangin Angin, the head of Langkat district and owner of PT. Dewa Rencana Perangin Angin.
28 Jan 2022	PHG started an investigation and reached out to PT. Dewa Rencana Perangin Angin
31 Jan 2022	PT. Dewa Rencana Perangin Angin is not reachable. PHG suspended and discontinued any purchases from Dewa Rencana Perangin Angin effective immediately.

Received Period : January 2022
Company Name	Requester	Description	Status
Mopoli Raya	Louis Dreyfus	Alleged deforestation	In Progress

26 Jan 2022	Louis Dreyfus Company provided PHG with information on an alleged deforestation involving PT Mopoli Raya via its subsidiary PT Gading Bhakti.
27 Jan 2022	PHG engaged with PT Mopoli Raya and asked for clarification.
02 Feb 2022	Mopoli Raya shared their concession map with PHG, stating that the land clearing is outside of the Gading Bhakti concession.
25 Feb 2022	PHG require more clarification and continue to engage with Mopoli Raya
03 Feb 2022	Mopoli Raya conducted another round of investigation and found that part of Gading Bhakti HGU has been encroached by the local villagers. Mopoli Raya has engaged with the local villagers to stop their encroachment.

Received Period : May 2022
Company Name	Requester	Description	Status
Sawit Sukses Sejati	Mighty Earth	Alleged deforestation	In Progress

18 May 2022	PHG received information from Mighty Earth's Rapid Response Report No.39 that PT. Sawit Sukses Sejati (SSS) is alleged to have conducted deforestation
18 May 2022	Since PT. SSS is not direct PHG supplier but supplied to PHG through STA Resources, PHG has engaged with STA to help engage PT. SSS for clarification
19 May 2022	STA Resources informed PHG that they have reached out to PT. SSS for clarification and will update PHG once more information is available
31 May 2022	After having engaged with PT. SSS, STA Resources informed us that the concession of PT. SSS was previously known to have belonged to PT Anugerah Langkat Makmur. The change of name took place in December 2020 STA also noted that the said concession has not conducted HCV/HCS assessment STA Resources has ceased sourcing Fresh Fruit Bunches (FFB) from PT. SSS and will monitor PT.SSS for further updates

Received Period : May 2022
Company Name	Requester	Description	Status
Palmaris Raya	Kuala Lumpur Kepong	Alleged peat forest clearing	In Progress

9 May 2022

PHG received information from Kuala Lumpur Kepong that Earthqualizer (EQ) reported that PT. Rendi Permata Raya (RPR) was allegedly found to have cleared 6 hectares of peat forest in March 2022

Based on EQ field investigation in Apr 2022, PT RPR was found to be selling Fresh Fruit Bunches (FFB) to PT. Palmaris Raya's palm oil mill

Since PT. RPR is not a direct PHG supplier, PHG has engaged with PT. Palmaris Raya for clarification

18 May 2022

PT. Palmaris Raya informed PHG that they do not source FFB from PT. RPR but is unable to provide Traceability to Plantation (TTP) data

PHG has halted purchases from PT. Palmaris Raya while we engage with PT. Palmaris Raya to advance their traceability to plantation progress

Received Period : Apr 2022
Company Name	Requester	Description	Status
Alamsari Lestari	Kuala Lumpur Kepong	Alleged peat forest clearing dan peat development	In Progress

5 Apr 2022	PHG received information from Kuala Lumpur Kepong that Earthqualizer (EQ) reported that PT. Alamsari Lestari was allegedly found to have cleared 6 hectares of peat forest in January 2022 and developed a total of 45 hectares of peatland in the two months of Jan and Feb 2022 Based on EQ report, Mentari Group owned PT. Alamsari Lestari and one of Mentari Group's mills, which is PT. Risman Scham Palm Indonesia (RSI) lastly sourced palm oil to PHG in 2021
6 Apr 2022	PHG engaged with Mentari Group and asked for clarification
15 Jun 2022	Mentari Group confirmed that PT. Alamsari Lestari concession consists of peatland and it was a recent acquisition in 2019 Mentari Group stated that the land clearing carried out was in fact a recovery / replanting of unproductive planting areas where the land had previously been cleared, developed and planted by the old owner but was not managed properly, resulting in the growth of natural plants
16 Jun 2022	PHG asked Mentari Group to provide evidence regarding the period of the initial opening or development was first carried out (before the recovery / replanting which is currently being carried out by the Mentari Group) in the area that became the problem PHG has halted any purchases from PT. Risman Scham Palm Indonesia until further notice

Received Period : Agustus 2022
Company Name	Requester	Description	Status
Cemerlang Abadi	RAN	Alleged deforestation	In Progress

11 Aug 2022	PHG received information from RAN's report titled "Leuser Watch: New Rogue Palm Oil Producer Found Destroying Rainforests and Peatlands in the Leuser Ecosystem" indicating PT. Cemerlang Abadi has resumed clearance of forests and peatland areas since September 2021 until at least February 2022 The report stated PT. CA allegedly cleared 24 acres of secondary forests, as well as a further 740 acres of young regenerating forests According to analysis by Earthworm Foundation, there is a possible connection between PT. CA and palm oil mill, PT. Raja Marga (RM), a direct supplier of PHG
12 Aug 2022	Since PT. CA is not direct PHG supplier but supplied to PHG through PT. RM, PHG has engaged with PT. RM to seek clarification
28 Aug 2022	PT. Raja Marga (RM) has communicated with PT. CA and clarified that the alleged land clearing was actually a rehabilitation/replanting of a previously established palm plantation PT CA stated that the initial land clearing dan planting started in 1990 and ran through 1995. However due to the poor management, flood, fire, pest attacks and political unrest (GAM rebellion), many of the palms died and PT CA is unable to replant them again due to the political unrests and funding availability. It is only now that PT CA is able to rehabilitate and replant the land
29 Aug 2022	PHG has conducted an internal review of the land history through satellite imagery provided by Google Earth engine and found that the land clearing indeed started in 1992 and by 1994 all of the land of interest has already been cleared and planted with palms Since the land use change occurred in 1990-1995, PHG concluded the reestablishment of palm plantation in the area is not a new development of palm plantation

Received Period : September 2022
Company Name	Requester	Description	Status
Mr Mahmudin (independent smallholder)	RAN	Allegedly planting palm fruits in protected areas	In Progress

20 Sep 2022	RAN released a report titled "Carbon Bomb Scandals – Big Brands Driving Climate Disaster For Palm Oil" indicating that an illegal palm oil plantation controlled by Mr Mahmudin was found to be located inside the boundary of Rawa Singkil Wildlife Reserve (RSWR) Through a collection point facility owned by Mr Mahmudin, the oil palm fruits were sold to CV. Buana Indah (broker) then to PT. Runding Putra Persada (RPP)
21 Sep 2022	Since Mr Mahmudin does not supply directly to PHG, PHG has engaged with PT. RPP to help seek clarification in regards to the grievance
28 Sep 2022	PT. RPP has helped facilitate PHG's communication with Mr Mahmudin and has conducted a field visit to Mr Mahmudin's plantation They confirmed Mr Mahmudin already has a land certificate (Sertifikat Hak Milik) issued in 2017 The said land certificate consist of 6 blocks namely Blok A, B, C, D, E & F amounting to around 29 hectares, which are all located outside of RSWR boundaries
5 Oct 2022	PHG conducted an internal investigation and review PT RPP’s verification documents which consist of Mr Mahmudin land certificates along with the coordinates boundary After analyzing the said documents and by conducting a spatial analysis, we can confirm Mr Mahmudin's plantation is indeed outside of RSWR boundaries

Received Period : December 2022
Company Name	Requester	Description	Status
Nia Yulided Bersaudara (Recurring Deforestation)	RAN	Deforestation	In Progress

08 December 2022	RAN released a report titled "Notorious Rainforest Destroyer Caught Taking Palm Oil To Global Market" indicating that PT Nia Yulided Bersaudara (NYB) has yet again continued destroying rainforests throughout September 2022 amounting to 900 ha (2224 acres) In the span of five years, PT NYB repeatedly committed deforestation with no regards and since 2016, the forest cover with the company's palm oil concession area has been reduced from 4873 ha to 2664 ha in October 2022 Through RAN's field investigation, palm oil fruits from PT NYB were sold to PT Bumi Sama Ganda (BSG) via RAM UD Makmur Jaya, a ramp collection point
12 December 2022	Since PT NYB does not supply directly to PHG, PHG has engaged with PT. BSG to help seek clarification in regards to the grievance
13 December 2022	PT BSG clarified it only sources palm fruits from RAM UD Makmur Jaya, a sub agent from their main FFB supplier, TW and doesn't have any commercial relations with PT NYB Moreover, PT BSG has previously signed a commitment of not buying from PT NYB and claims that RAM UD Makmur Jaya no longer supply palm fruits to them as of 14 November 2022
20 December 2022	Despite PT BSG's commitment of not sourcing from PT NYB, the fact remains that it still found its way to enter PT BSG's supply chain through an agent /FFB dealers As a result, for preventive measures, PHG has communicated with PT BSG's representatives to further socialize a "No Buy List Plantation" from PHG to their FFB suppliers, especially to agent/FFB dealers

Received Period : December 2022
Company Name	Requester	Description	Status
Permata Sawit Mandiri (Recurring Deforestation)	Chain Reaction Research	Deforestation	Closed

14 December 2022	Analysis conducted by Chain Reaction Research shown a recurring deforester , PT Permata Sawit Mandiri (PSM) still continued clearing forest in Ketapang , West Kalimantan since 2018 In the first half of 2022, PT PSM cleared 1,300 ha and in total has cleared around 5,400 ha between 2018 to July 2022
14 December 2022	PT PSM is not a direct supplier to Permata Hijau Group PT PSM sold Fresh Fruit Bunches (FFB) to Bumitama Agri Ltd through Bukit Belaban Jaya mill in West Kalimantan Although Bumitama Agri Ltd remains as PHG direct supplier, PHG does not source Crude Palm Oil or Palm Kernel from Bukit Belaban Jaya mill.
14 December 2022	On November 24 2022, Bumitama Agri Ltd released a statement clarifying their commitment to NDPE Policy and confirm that PT PSM has indeed source FFB to Bukit Belaban Jaya mill Due dilligence study from Bumitama Agri ensure that PT PSM had sufficient legality (ILOK, AMDAL, IUP and HGU), while also being an RSPO member Despite PT PSM already signing an NDPE commitment to comply with Bumitama's sourcing policy, a further investigation uncovered that PT PSM is no longer an RSPO member and that its land development does not comply with RSPO NPP requirements As a result, Bumitama has stopped sourcing FFB from PT PSM since August 2022 and will remain blacklisted from Bumitama's future supply chain