the oil palm practices of korindo in papua and north maluku
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BurningParadiseTheoilpalmpracticesofKorindoinPapuaandNorthMaluku
CommissionedbyMighty,theKoreaFederationforEnvironmentalMovements,SKP-KAMeMeraukeandPUSAKAAugust2016
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Photo:PristineforestinPapua
©Greenpeace/ArdilesRante,2008Photo:KorindohavingclearedforestforoilpalminPapua
©Mighty;4June2016;Latitude6°45'43.49"S,Longitude140°48'27.70"E;Credit:YudhiMahendra
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ColophonAidenvironmentreport:BurningParadise:TheoilpalmpracticesofKorindoinPapuaandNorthMalukuCommissionedby:Mighty,theKoreaFederationforEnvironmentalMovements,SKP-KAMeMeraukeandPUSAKADate:August2016Mighty:Address:2000MStNW#720,Washington,DC20036,UnitedStates.E-mail:[email protected]:SmokerisingfromburningwoodrowsinKorindo’sPTBerkatCiptaAbadiconcession©ArdilesRante/Greenpeace;26March2013AidenvironmentJalanBurangrangNo.18Bogor16153,WestJava,Indonesia+62(0)2518371219E-mail:info@aidenvironment.orgwww.aidenvironment.orgAidenvironmentispartofStichtingAERA,registeredattheChamberofCommerceofAmsterdamintheNetherlands,number41208024
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Burningparadise:TheoilpalmpracticesofKorindoinPapuaandNorthMaluku
Executivesummary 5
Foreword 7
1. Korindo’soilpalmbusinesses 91.1 Plantations 91.2 IntroductiontoPapua 111.3 IntroductiontoSouthHalmahera 12
2. Practicesandsustainabilitycommitments 132.1 Practice:extensivedeforestation 132.2 Practice:systematicuseoffiretoclearland 152.3 Practice:denialofcommunityrights 182.4 Forestsatriskofbeingcleared 202.5 Commitments 21
3. (Former)CustomersofKorindooilpalm 23
4. Issuesbyplantationcompany 244.1 PTGeloraMandiriMembangun 244.2 PTPapuaAgroLestari 264.3 PTBerkatCiptaAbadi1 284.4 PTTunasSawaErma1B 304.5 PTDonghinPrabhawa 324.6 Daewoo’sPTBioIntiAgrindo 35
5. Korindocompanyprofile 385.1 Businessesandownership 385.2 Loggingandplywood 405.3 Pulpwood 435.4 Indonesia’slargestnewsprintmanufacturer 445.5 Finance 445.6 Heavyindustry 455.7 Coalmining 455.8 Smallerbusinesses 46
Conclusion 47
References 48
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Executivesummary
Korindo,acompanywhosenameconstitutesacompositeofthewordsKoreaandIndonesia,isalargeenterprisethatemploysaround20,000peopleinIndonesia.Thecompany’smainbusinessesareinnaturalresourceswithoperationsinvolvinglogging,pulpwoodandoilpalmconcessions,andplywood,woodchipandpalmoilproduction.OtherKorindobusinessesincludenewsprintpapermanufacturing,heavyindustriesincludingwindtowers,financing,andrealestate.KorindoiscontrolledbytheSouthKoreanSeungfamily.In2013,Korindobeganitsaggressiveclearingoftropicallowlandforestsforoilpalmplantations.Ithaseightareastotaling160,000hectares.Sevenofthese,covering149,000hectares,areinPapuawhereKorindoisthelargestpalmoilcompany.Theremaining11,000hectaresareintheprovinceofNorthMaluku.Inaddition,KorindohelpstheKoreancompanyDaewoowithits30,000-hectareplantationinPapua.AsofJune2016,75,000hectaresofvaluableforestsremainedinKorindo’soilpalmconcessions.Theseforestsareallatriskofclearinginthecomingyears.AccordingtoIndonesiangovernmentdata,morethanhalfofthemarepreviouslyuntouched,so-calledprimaryforests.TherearethreemainfindingswithregardtothesustainabilityofKorindo’soilpalmpractices:- Deforestation-Intotal,Korindohasclearedmorethan50,000hectaresoftropicallowlandforests
inPapuaandNorthMaluku,Indonesia;anareaapproximatelythesizeofSouthKorea’scapitalcity,Seoul.Since2013aloneithascleared30,000hectaresofforestsinthetwoprovinces,12,000hectaresofwhichwereprimaryforests.Korindomakeslittleefforttoidentifyandpreserveconservationareaswithinitsconcessions.
- Fires-KorindocontributedsignificantlytoIndonesia’shazedisasterin2015,whichresultedinenormousenvironmentalandeconomiclossesforthecountry.KorindowasthelargestcontributorinPapua.Allevidence-satelliteimagery,hotspotdata,andaerialphotographs-pointstoKorindo’ssystematicandabundantuseoffireduringitslandclearingprocesses.ThisisillegalinIndonesia,whichKorindoiswellawareof.InOctober2015,thePapuaDeputyGovernorstatedthatcompaniescausingfiresshouldimmediatelybeshutdown.
- Communityrights-Ingeneral,KorindohasfailedtorecognizetherightoflocalcommunitiestogiveorwithholdtheirFree,PriorandInformedConsent(FPIC)toanynewdevelopmentsoncommunitylands.Korindo’ssubsidiary,PTGeloraMandiriMembangunisoccupyingthefarmlandandforestsofcommunitiesinSouthHalmaheradistrictinNorthMaluku.Mostofthecommunities,whichhavelivedthereforhundredsofyears,arestronglyopposedtoanoilpalmplantation.Korindoisdisregardingtheircustomaryrightsbycontinuingitsoperationsthere.
Tradedatashowthat,untilrecently,Korindo’spalmoilendedupwithconsumersinEuropeandNorthAmerica,ChinaandIndia.Productswereboughtbymaintrading/refiningcompanies,manyofwhichareactivelyworkingonensuringsuppliers’compliancetotheirNoDeforestation,NoPeat,NoExploitation(NoDeforestation)policies.Korindodoesnotcomplywiththesepolicies,asshownbythethreefindingsabove.TwocompaniesthatwereamaincustomerofKorindo,WilmarandMusimMas,havealreadystoppedsourcingfromthecompany.ThiswasafterrepeatedwarningsfrombothcompaniesthatKorindoshouldchangeitspractices.Presently,itisuncleartowhichcompaniesKorindosellsitspalmoil.Korindopresentsitselfasanenvironmentallyfriendlycompany.However,itsoilpalmoperationscauseproblemsofglobalconcern,suchasbiodiversityloss,climatechange,hazardousairquality,andlossoflivelihoods.Companiesaccountingforthevastmajorityofgloballytradedpalmoilhavecommitted
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themselvestostrictNoDeforestationpolicies.Korindo,however,hasyettopublishaspecificsustainabilitypolicy.AnotherconcernisKorindo’ssourcingoflogsfromthirdpartiesforplywoodproduction.Thecompanyhasnoknownsafeguardsforensuringthatillegallyharvestedtimberortimberfromdeforestationdoesnotenteritssupplychain.Photo:Lesserbirdofparadise
©Greenpeace/TakeshiMizukoshi.
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Foreword
Foryears,KorindohasgottenawaywithdevastatingsomeofthelastpristinerainforestlandscapesleftinIndonesia,floutingIndonesia’sno-burninglaws,runningroughshodoverlocalcommunities,andviolatingtheresponsiblesourcingrequirementsofitsmajorcustomers.Asaresult,Korindohasalreadylosttwomajorcustomers:WilmarandMusimMas.BothweremajordirectbuyersofKorindooilpalm.IfKorindocontinuesdownthispath,itwillbeathighriskoflosingadditionalcustomers,losinginvestors,facingextremereputationaldamage,andbeingheldlegallyaccountableforitsactions.Or,Korindocouldchoosetojointherevolutioninresponsibleagricultureandturnanewleafbydoingthefollowing:- Immediatelyenforceamoratoriumonallnewforestclearingandburning;- Adoptandimmediatelyimplementacross-commoditypolicythatprotectshighcarbonstock
landscapes(followingtheHighCarbonStockApproachavailableathttp://www.highcarbonstock.org),highconservationvalueforestsandpeatlandsofanydepth,andthatrespectshuman,community,andlaborrights.ThispolicyshouldapplytoallofKorindo’sglobaloperations,subsidiaries,jointventureandsupplychainpartners.Korindoshouldalsoissueanimplementationplan,workwithacredibleimplementationpartner,issueregularprogressreports,andverifycompliancethroughanindependentthirdparty.
- CeasealloperationsinPTGeloraMandiriMembanguninSouthHalmahera(NorthMaluku),whereKorindoisencroachingontothecustomarylandsoflocalcommunities,andimmediatelyexcisecommunitycustomarylandsfromlicenseareas;
- Addressandremedyitslegacyofenvironmentalharm,landgrabbingandhumanrightsviolations–includingbyreturningcustomarylands,resolvingsocialconflictsandgrievancesandrestoringdamagedecosystems.Financetherestorationofanareaatleastequivalenttothatwhichithasdestroyedoverthepasttwodecades.
- Agreetobroadtransparency,includingreleasingthelocationofitsmillsandconcessionboundariesacrossallcommodities,revealingthenamesandlocationsofthirdpartysuppliers,andreportingregularlyonthirdpartysuppliercompliance.
- ComplywithanylegalproceedingsregardingKorindo’suseoffiretoclearlandandseizingcontrolofcustomarylandswithouttheconsentofcommunitiestowhomthoselandsbelong.
Thereismuchatstake:75,000hectaresofforestsremaininKorindo’sconcessionsandareatimminentriskofdestruction.ThefiresKorindowilllikelysetthisdryseasonwillcontributetohazardousairquality,endangeringthehealthofpeopleacrosstheregion,andcontributingmassivelytoclimatechange.TherichculturalheritageofPapuaandNorthMalukuwillbefurthererodedifKorindocontinuestoseizecontrolof,anddestroy,thecustomarylandsofcommunities.Speciesonthebrink,likethetreekangaroo,maybelostforever.AndKorindocouldsetadangerousprecedentofcommercialexploitationofoneofthelastforestedlandscapesleftinwhatwasonceaglobalepicenterofthrivingrainforestsandbiodiversity.WeknowwecansavetheseforestsandstopthedestructionifenoughpeoplearoundtheworlddemandthatKorindoreformandcallontheIndonesianandKoreangovernmentstoholdKorindolegallyaccountable.Visitourcampaignwebsiteformoreinformation,additionalphotosandvideosofKorindo’soperations,andtotakeaction:www.MightyEarth.org/BurningParadise.Thankyou,DeborahLapidusCampaignDirectorMighty
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Photo:Atreekangaroowithababyinherpouch
©Mighty;13July2016.Photo:ForestclearingbyKorindoforoilpalminPapua
©Mighty;4June2016;Latitude6°47'2.69"S,Longitude140°45'48.58"E.Credit:YerimiaLeo.
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1. Korindo’soilpalmbusinesses
1.1 Plantations
Korindoemploysaround20,000people.Itsmainbusinessesareinnaturalresourceswithoperationsinvolvinglogging,pulpwoodandoilpalmconcessions,aswellasplywood,woodchipandpalmoilproduction.OtherKorindobusinessesincludenewsprintpapermanufacturing,heavyindustriesincludingwindtowers,financing,andrealestate.1KorindoiscontrolledbytheSouthKoreanSeungfamily.Korindo’soilpalmoperationstakeplaceintheIndonesianprovincesofPapuaandNorthMaluku.ThecompanybeganitsloggingoperationsinPapuain1993,whiledevelopmentofitsfirstoilpalmplantationcommencedin1998.2Korindohaseightconcessionareastotaling160,000hectares.Sevenofthese,covering149,000hectares,areinPapuawhereKorindoisthelargestpalmoilcompany.Korindo’splantationcompanyPTGeloraMandiriMembangun(PTGMM)accountsfortheother11,000hectares,andislocatedinSouthHalmaheradistrictinNorthMaluku.OnitswebsiteKorindostatesatargetof200,000hectaresofoilpalmplantationsby2020.3Figure1.LocationsofKorindo’soilpalmoperationsinIndonesia
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Concessionboundariesandownership
Theconcessionareas-sizesaswellasboundaries-usedforthisreportwerederivedfrommapsandforestlandreleasepermitsfromthecentralgovernment.Table1belowshowsthesizeoftheseareas,accordingtotheforestlandreleasepermits.PalmoilcompaniesarealsorequiredtoacquirePlantationBusinessPermits(IUP,IzinUsahaPerkebunan)and/orRightstoExploit(HGU,HakGunaUsaha)fortheirconcessionareas.Theseareissuedbydistrictgovernments.Inmanycases,ourinvestigationfoundnoevidenceofsuchpermitseverbeingissued.4Table1.ForestlandreleasepermitsreceivedbyKorindo
Abbreviation Plantationcompany Forestlandreleasepermit Hectares
PTTSE1A PTTunasSawaErma1A171/KPTS-II/1998(27February1998)
14,800
PTTSE1B PTTunasSawaErma1B 19,500
PTGMM PTGeloraMandiriMembangun SK.22/MENHUT-II/2009(29January2009) 11,000
PTDP PTDonghinPrabhawa SK.623/MENHUT-II/2009(5October2009) 34,100
PTBCA1 PTBerkatCiptaAbadi1 SK.328/MENHUT-II/2011(22June2011) 14,500
PTPAL PTPapuaAgroLestari SK.52/MENHUT-II/2012(4October2012) 32,300
PTBCA2 PTBerkatCiptaAbadi2 SK.835/MENHUT-II/2014(29September2014) 14,400
PTTSE2 PTTunasSawaErma2 SK.844/Menhut-II/2014(29September2014) 19,000
Total 159,600Source:MinistryofEnvironmentandForestry,Progressinreleasingforestland,May2015,http://bit.ly/1R5haD5Koreanpartners:HyosungandDaewoo
HyosungCorporation,aSouthKoreanindustrialconglomerate,istheonlyentityotherthanKorindowithashareinKorindo’splantationcompanies.In2014,thecorporationbought15%sharesinPTPapuaAgroLestariandPTGeloraMandiriMembangun.Asof31December2015itstillownedtheseshares.Primarily,Hyosungmanufacturesandsellssyntheticfiberproductsandelectronicproducts,butitisalsoengagedinconstructionandotherrelatedbusinessactivities.5TheKoreanconglomerateDaewoohasanoilpalmconcessioninthesameregionasKorindo’sPapuanoilpalmconcessions.Daewoo’splantationcompany,PTBioIntiAgrindo(PTBIA),islocatedinMeraukedistrict,andaccordingtoitsforestlandreleasepermit,theconcessioncoversanareaof36,400hectares.6InMay2016,DaewooconfirmedthatKorindoadvisesitwithregardtoitsplantationoperations.7Daewoohasan85%stakeinPTBIA.Itisunknownwhoownstheremaining15%,thoughKorindomaybethephantomowner.Korindo’sproducts
Oilpalmsstartbearingfruit(FreshFruitBunches(FFB)afterapproximatelyfouryears.ThismeansthatinorderforKorindotobeabletoharvestFFBin2015/2016,itsoilpalmsmusthavebeenplantedinorbefore2011/2012.ThisiscertainlythecasefortheKorindoplantationcompaniesPTTSE1AandPTTSE1B,whereapproximately17,700hectaresofoilpalmswereplantedbefore2010.BothplantationcompanieshavepalmoilmillsinsidetheirconcessionthatprocessharvestedFFBintoCrudePalmOil(CPO).Combinedtotalproductionfromthesemillsamountedto109,000tonnesofCPOintheperiodfromOctober2014toSeptember2015.Inaddition,23,800tonnesofpalmkernelwereharvested.8PTDonghinPrabhawa(PTDP)hasalsobegunharvestingFFBfromoilpalmsplantedbyearly2011.Asyet,PTDPhasnopalmoilmill.TheharvestedFFBarelikelytransportedtoPTTSEpalmoilmills.PalmoilmillsforbothPTDonginPrabhawaandPTBerkatCiptaAbadiarecurrentlyunderconstruction.9
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1.2 IntroductiontoPapua
OfallregionsinIndonesia,Papuahoststhelargestareaofpreviouslyuntouchedprimarytropicalrainforest.Attheendof2012,primaryforestwasestimatedtocover35.2millionhectares,or86.2%ofitstotallandarea.Bycomparison,inSumatraonly13.4millionhectaresofprimaryforestremained,coveringonly28.3%ofitssurfacearea.FiguresforKalimantanwere27.6millionhectaresand51.9%.10Papuahostsaround50%ofIndonesia’sbiodiversity.Itishometo15,000–20,000plants(55%endemic),602birds(52%endemic),125mammals(58%endemic)and223reptiles(35%endemic).Endemicspeciesincludetreekangaroos,birdsofparadise,rainbowfishes,birdwingbutterflies,variousorchidsandthousandsofotherfloraandfaunaspecies.11In2010,Papuahadapopulationof3.6millionpeople.IthasthehighestpopulationgrowthofallIndonesia’sregions,causedbytransmigrationandahighbirthrate.12Itishometoaround312differenttribes,includingsomeuncontactedpeoples.13Thesituationinareaswithnewactivities,suchasoilpalmplanting,isoftentenseduetothemilitarypresence.Themilitary’sviolentandindiscriminaterepressionofallegedOPMmembers(OrganisasiPapuaMerdeka-theFreePapuaMovement)inPapuaiswellknown,andoftencauseswidespreadpanicwithinvillages.14LargetractsoflandhavebecomeincreasinglydifficulttofindinSumatraandKalimantanbecausesomuchareahasalreadybeendeforested,andduetoincreasingimplementationofbothgovernmentandprivatesectorlimitsondeforestation,peatlandconversion,andexpropriationofindigenouscommunityland.Consequently,plantationcompanieshavebeenlookingtoexpandinPapua.In2005,therewereonlyfiveoilpalmplantationsoperatinginPapua.Bytheendof2014,therewere21operationalplantations,withanother20concessionsatadvancedstagesoftheirpermitprocesses.15Korindo,activeintheforestrysectorinPapuasince1993,hasexpandeditsoilpalmareainPapuamostaggressivelyoverthelastfiveyears,andisthebiggestoilpalmcompanyinPapua.Photo:Treekangaroo
©Greenpeace/GeraldCubitt
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1.3 IntroductiontoSouthHalmahera
TheKorindosubsidiarycompanyPTGeloraMandiriMembangunislocatedinSouthHalmaheradistrictonHalmaheraIsland,inNorthMaluku.Halmaheraisoneoftheoriginal"SpiceIslands”andpartoftheWallaceaecoregion,whichcontainsaverydistinctivefaunarepresentingamixofAsianandAustralasianspecies.16Communitiesinthearea,whohavelivedthereforhundredsofyears,livemostlyofftheseaandtheland,whichprovidesourcesofcarbohydrates,protein,mineralsandvitamins,woodforhousesandboats,aswellasherbalmedicines.Theyalsorelyheavilyonlocalgardens,wheretheygrowfruits,vegetables,yams,chili,coconut,nutmegandcloves.17Figure2.SouthHalmaherainMay2016(forestsclearedbyKorindoareinsidetheyellowboundary)
Source:Landsat7imageryfor8Mayto9June2016.
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2. Practicesandsustainabilitycommitments
2.1 Practice:extensivedeforestation
Acceleratedclearingsince2013
KorindohasbeenacceleratingitsclearingandplantinginPapuasince2013,andin2014commencedwidespreadclearinginSouthHalmahera.Figure3showsthelossofforestcoverfrom2013upuntiltheendofMay2016,whichcanbesummarizedasfollows:- TotaldeforestationbyKorindointheperiodfrom2013toMay2016amountedto30,000hectares,
comprising11,700hectaresofprimaryforestand18,300hectaresofsecondaryforest.- ThemostrecentclearingofprimaryforesthasbeenbyPTPAL(3,800hectaressincelate2015)and
PTTSE1B(500hectaresin2016).Figure3.Areaofforestclearedsince2013
Source:Landsat8imagery,comparedwithIndonesianMinistryofForestryforestcovermapsfor2011,andinthecaseofPTDPforestcovermapsfor2009.Clearingbefore2013
KorindostartedplantingoilpalminPapuain1998,afterPTTunasSawaErmareceivedareleasepermitfor34,300hectaresofforestland.By2000,PTTSE1Ahadalreadyplanted7,500hectaresofoilpalm.PTTSE1Bstarteditsdevelopmentin2006andhadplanted7,000hectaresby2008.18By2010,thetotalareadevelopedbyPTTSE1Aand1Bamountedto21,400hectares.19Mostofthisdevelopmentcameattheexpenseofprimaryforest.20KorindobegandevelopingthePTDonghinPrabhawa(PTDP)concessioninlate2010.By2012,atotalof1,600hectaresofsecondaryforesthadbeencleared.Intotal,Korindohasclearedmorethan50,000hectaresofforesttomakewayforoilpalmplantations.ThisareaisapproximatelythesizeofSeoul,thecapitalofSouthKorea.
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Timberintheoilpalmconcessionareas
ThetimberfromtreesKorindocutsdowntomakewayforoilpalmsprobablygoestoitsplywoodmillinAsiki.Timberrevenuesmayfinanceasubstantialportionofitsoilpalmplantationdevelopment.In2014,theCenterforInternationalForestryResearch(CIFOR)estimatedthatthe22,000hectaresofmostlyprimaryforestclearedbyTSE1Aand1Bbefore2010wouldgenerateenoughtimberrevenuetofinancethecostsofdevelopingatleast10,000hectaresofoilpalmplantations.21Photo:LogsmadereadyfortransportfromKorindo’sPTPapuaAgroLestarioilpalmconcession
©Mighty;4June2016;Latitude6°45'42.82"S,Longitude140°48'17.75"E.Credit:YerimiaLeoPhoto:KorindotrucktakingoutlogsfromKorindo’sPTGMMoilpalmconcessioninNorthMaluku
©Walhi,November2014.
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2.2 Practice:systematicuseoffiretoclearland
SystematicuseoffirebyKorindo
AllevidencegatheredbyAidenvironmentpointstoKorindo’ssystematicuseoffireduringitslandclearingprocesses.22Intheperiodfrom2013to2015,nolessthan894hotspots(>50%confidence)wererecordedwithinKorindosubsidiarycompanyconcessionboundaries.In2013,Korindowasclearingforestandlandintwoconcessionareas,inthreeconcessionsin2014,andfourconcessionsin2015.Figure4belowshowsaclearcorrelationbetweentheamountofconcessionsbeingclearedbyKorindoandthenumberofhotspotsrecorded.Figure4.HotspotsinsideKorindoconcessionboundaries,2013-2015
Source:FireInformationforResourceManagementSystem(FIRMS),http://go.nasa.gov/27awNFgHotspotsappearedafterKorindohadclearedtheforestandbeforeitstartedplantingoilpalm.ThetypicalsequenceofactivitiesperformedbyKorindowhileconvertingforestintooilpalmplantationsisasfollows:- Lining(carvingoutofplantationblocksintheforest);- Logging(extractinghigh-qualitytimberfromtheforest);- Clearing(uprootingtheforestwithexcavatorsorbulldozers);- Stackingwoodrows(pushingwoodresidue,branchesetc.intorows);- Settingfiretowoodrowsafterafewweeks.Papuanforestshavealotofbiomass,andfireswill
acceleratethebreakdownofthismaterial.Afterabadburn,Korindomaysetthewoodrowsonfireagainafewweekslater;and
- Planting.Korindo’smanagementlikelybelievesthechanceofbeingheldaccountableforopenburningthroughlegalsanctionorasaresultofpublicopiniontobesmall.Localindigenousgroupshavelittleaccesstomediaforreportingillegalpractices,andKorindoiswellconnectedwiththelocalarmedforces.InMay2016,initsresponsetoaninquirybytheKoreannewsoutletSisaIN,aKorindogrouprepresentative
2013 2014 2015PTPAL 221
PTTSE1B 88
PTGMM 106 21
PTDP 43 144 164
PTBCA1 19 97 1
050
100150200250300350400450500
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denieditsstrategicuseoffireinlandclearanceprocessessaying,“Ourcompanydoesnotcreateplantationsthroughintentionalman-madearson.”23However,thecompanyofferednoevidencetosubstantiatethisclaimortocounterthesubstantialevidencetothecontrary.FiresareillegalinIndonesia
Burningtoclearforestsand/orlandisprohibitedunderIndonesianLawNo.32/2009onEnvironmentalProtectionandManagement,amongothers.Possiblepenaltiesforthosefoundguiltyofbreakingthislawincludefinesandprisonterms.24Forexample,on11August2016thejudgesoftheSouthJakartaDistrictCourtorderedtheIndonesiancompanySampoernaAgrotopayIDR1.07trillion(equivalenttoUSD76million)forcompensationandenvironmentalrestoration,inacaseofforestfirescoveringanareaof3,000hectaresinRiauprovince(Sumatra)in2014.25InSeptember2015Indonesia’sSupremeCourtinJakartafoundtheoilpalmcompanyPTKallistaAlamtobeinbreachofLawNo.32/2009.ThecompanywasorderedtopayIDR366billion(approximatelyUSD26million)forillegallyburningforestswithintheTripaPeatSwamps,partoftheprotectedLeuserEcosysteminSumatra.26Lawsprohibitingpeoplefromdeliberatelystartingforestorlandfireswerealsoestablishedin1999and2001.27InOctober2015,thePapuaDeputyGovernor,KlemenTinal,spokeoutagainstcompanies“thatreducethecostofclearingbyburning”.Hesaidthatcompaniescausingforestfiresshouldimmediatelybecloseddown.28However,despitefloutinglaws,byandlargeKorindohasgotawaywithitsforestburning,withonenotableexception:InNovember2015Korindoreceivedapermitsuspensionofsixmonthsduetofiresin2015inoneofitspulpwoodconcessions,PTKorintigaHutani,locatedinCentralKalimantan.29BytheendofFebruary,afterthreemonths,theministerre-instatedKorintiga’slicense.ItwasdecidedthatKorintigahadfulfilleditsobligationsorordersbytheminister.30InMay2016,KorindostatedtotheKoreanweeklymagazineSisaINthatthesuspensionwasduetoadministrativemeasuresbytheIndonesianGovernment“thatwecannotcomprehend”.31In2015,therewere72hotspotsinsidePTKorintigaHutani’sconcession,following43in2014.32Indonesia’sburningproblem
Throughoutlate2015,muchofSoutheastAsiasufferedfromrecordlevelsofhazecausedbyfiresinIndonesia.Theclearingoflandforoilpalm,pulpandpaper,andotheragriculturalcommoditieswasoneofthemainreasonsforthefires.Thehazecrisiscausedmillionsofpeopletosufferrespiratoryillnesses,andtheWorldBankestimateditledtoIndonesiasufferingeconomicdamagesofUSD16billion.33Duetothefires,Indonesia’semissionscontributedmoretoclimatechangein2015thanthoseofJapan,Germany,andSouthKorea,andonmanydaysduringthehazecrisis,Indonesia’scarbonpollutionwashigherthantheemissionsoftheentireUSeconomy.34ThetotalnumberofhotspotsinsideKorindooilpalm,pulpwoodandloggingconcessionsin2015was856,ofwhich495occurredinoilpalmplantationsundergoingdevelopment.TotalfiredetectionsinIndonesiain2015stoodat122,568.35Thismeans0.7%ofthesefiresoccurredinsideKorindoconcessionareas.Thispercentageisparticularlyhigh,consideringthehundredsofforestryandoilpalmcompaniesactiveinIndonesia,andthattheoilpalmandforestrysectorsweretwoofthemainreasonsforthefires.
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Photo:SmokerisingfromburningwoodrowsinthePTBerkatCiptaAbadiconcession
©ArdilesRante/Greenpeace;PTBerkatCiptaAbadi(KorindoGroup);26March2013Photo:WoodrowsstackedbyPTPapuaAgroLestari,readyforburning?
©Mighty,4June2016;Latitude6°45'41.80"S,Longitude140°48'18.78"E
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2.3 Practice:denialofcommunityrights
Customaryrights
On16May2013,theIndonesianConstitutionalCourtruledcertainprovisionsofthe1999IndonesianForestryLawtobeunconstitutionalduetotheirclassificationofcustomaryforestasstateforest,thusimproperlydenyingindigenouscommunitiesrightstotheirlandsinfavorofanownershiprightassertedbytheState.36SomethingKorindo’soilpalmconcessionshaveincommonisthattheyarealllocatedinforestareassubjecttoindigenouspeoples’customaryrights,whichthecentralgovernmenthasreleasedtoKorindoasiftheyweretheirs.However,theConstitutionalCourthasruledthatthesecustomaryforestareasbelongtotheindigenouspeople,thusbringingthelegalityofKorindo’soilpalmconcessionsintoseriousquestion.Korindo’sPTGeloraMandiriMembangunconcessionisoccupyingthefarmlandandforestsofcommunitiesinSouthHalmahera,NorthMaluku.Mostofthecommunities,whoallhavelivedthereforhundredsofyears,arestronglyopposedtotheoilpalmplantation.Korindoisdisregardingtheircustomaryrightsbycontinuingtooperatethere.ThiscaseisdescribedinmoredetailinSection4.1.Photo:SignonhouseinGaneDalamvillagetellingPTGMM(Korindo)toleave
©RainforestActionNetwork,May2016.InPapua,Korindousuallyseemstomakeagreementswiththeownersofcustomaryoradatforests.Thisdoesnotmean,however,thatKorindohasrecognizedtherightoflocalcommunitiestogiveorwithholdtheirFree,PriorandInformedConsent(FPIC)toanynewdevelopmentsoncommunitylands:- InthecaseofPTDonginPrabhawa,anagreementwasmadein2012afterKorindohadalready
commencedoilpalmoperationsinlate2010.Despitetheagreement,theindigenousNggutipeopleregrettedtheforestsandswampstheyhadpreviouslyusedforhuntingandgatheringbeingreplaced.37
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- InthecaseofKorindo’sPTTunasSawaErma1A(PTTSE1A),elevenclanswithtraditionallandscoveringmorethan7,000hectaresagreedtotheoilpalmdevelopmentin2005,butlaterstatedtheyhadnotbeenadequatelyinformed.38
- The25clansowningmorethan12,000hectaresinthePTTSE1Aconcessionarearejectedtheplantationproposalin2006.Korindohadrespectedtheirrejection,39butin2015,developmentstartedinthispartoftheconcessionarea,apparentlyduetoanagreementwiththelandowners.
SocialissuesinPapua
ThereislittleinformationpubliclyavailableeitherontheplightoflaborersontheplantationsoronthepeoplelivingadjacenttoKorindo’sconcessionsinPapua.Thisiswhatweknowfromtheinformationavailable:- ThePapuanNGOYayasanPusakareportedinJune2016thatPTTSE1Athreatenedtolayoffthree
workers.ThethreeworkersheldademonstrationtogetherwithhundredsofnativePapuanworkersinfrontofthePTTSE1AofficeinMay2016.Theworkersprotestedthecompanypayinglittleattentiontocareers,capacitybuildingandraisingtechnologicalknowledgeforPapuanworkers.ItappearsKorindohasnotacceptedtheworkers'protestsanddemands.40In2010,only13%ofthe3,400peopleemployedbyPTTSE1Aand1BwereindigenousPapuans.ThegreatmajorityofemployeesweremigrantsfromotherregionsofIndonesia.41
- InJanuary/February2014,theIndonesianorganizationJPICMSCIndonesiaconductedafieldinvestigationintothePTDonginPrabhawaconcession.Itfoundanumberofhumanrightsviolationsbythecompanyandbythepoliceandmilitaryondutyinthecompany’sworkarea.Employeesandcasuallaborershadnoaccesstocleandrinkingwater,andhadreceivednogroceriesfromPTDonginPrabawaforthreemonths.Policeofficerswereinvolvedinsellingconfiscatedliquorandgambling.In2013,aPTDonginPrabhawaemployeewasarrestedandallegedlytorturedbyamemberofthearmedforces.TheUK-basedNGOBusiness&HumanRightsResourceCentreinvitedKorindotorespondtotheallegations,butnoresponsewasforthcoming.42
- InApril2010,theCenterforInternationalForestryResearch(CIFOR)interviewed97workers,customarylandowners,andpeoplelivingadjacenttothePTTSE1Aand1Bplantations.Allthreerespondentgroupssaidtheplantationhadreducedtheirincomefromforestproducts,andtheirabilitytocollectwoodforhousingandfuel.Thelandownersinparticularnotedthediminishedaccesstofoodandincomefromforestresources.Frombeingself-sufficienttheyhadbecomedependentonsubsidizedricetofulfilltheirfoodrequirements.Over60%oflandownersandpeopleinthevicinityoftheseplantationsreportedreducedwaterquality.Bothgroupsusedriverandlakewaterfordrinking,bathingandfishing.43
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2.4 Forestsatriskofbeingcleared
Currently,75,000hectaresofforestsremaininKorindo’sconcessions.Theseforestsareathighriskofbeingcleared.ThefourplantationscurrentlybeingdevelopedbyKorindo(PTPAL,PTGMM,PTTSE1BandPTDP)stillhave29,300hectaresofprimaryforestand11,300hectaresofsecondaryforest.ItiscommonpracticeamongoilpalmcompaniestoidentifyandconserveHighConservationValue(HCV)areaswithintheirconcessions.SignatoriestoNoDeforestation,NoPeat,NoExploitation(NoDeforestation)policiesevengoonestepfurther,identifyingandconservingHighCarbonStock(HCS)areasaswell.Sofar,Korindohasshownlittleornoefforttoconserveanysignificantareasinsideitsconcessions.Theareasithasdevelopedsofarhavebeencompletelycleared,withtheexceptionofanoccasionalriverbufferorsmallpatchofforest.KorindohasyettostartdevelopingthePTTSE2andPTBCA2concessions;areasthatcurrentlyhave11,400hectaresofprimaryforestand21,400hectaresofsecondaryforest.Figure5.Remainingat-riskforestsinKorindo’sconcessionsasofMay2016(hectares)
Source:Landsat8imagery,comparedwithIndonesianMinistryofForestryforestcovermapsfor2011,andinthecaseofPTDPforestcovermapsfor2009
PAL BCA1 GMM TSE1B DP TSE1A TSE2 BCA2 TotalSecondaryforests 1,100 700 2,800 6,400 1,000 900 16,100 5,300 34,300
Primaryforests 26,500 0 0 700 2,100 0 2,600 8,800 40,700
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
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2.5 Commitments
Nosustainabilitypolicyforoilpalm
Korindohaspublishednospecificsustainabilitypolicieswithregardtoitsoilpalmandforestryoperations,andisnotevenoneofthe2,800membersoftheRoundtableonSustainablePalmOil(RSPO).44OntheKorindowebsite,ChairmanoftheKorindoGroup,SeungEun-ho,says,“TheKORINDOGroupisreachingouttotheworldtoemphasizeitsroleasanenvironmentallyfriendlycompany.”45Thecompanyhasalsoputapromotionalvideoonitswebsite,inwhichitprofilesthecompanyasensuringa“greentomorrow”.46In2015,thecompanydidengageinseveralenvironmentalprojects,suchascleaningtheCiliwungriverthroughthecityofBogorinWestJava,donating50,000seedlingstoEastTimor,anddonatingIDR1billion(approximatelyUSD74,000)toanenvironmentalorganizationPaguyubanBudiasiforvariousactivities.47ItisalsocurrentlybuildingahealthclinicinAsiki,Papua.48Suchmeasurescannot,however,substituteforthelackofastrongsustainabilitypolicyorthenegativeenvironmentalandhumanrightsimpactsofKorindo’soperations.MajorcustomerswithNoDeforestation,NoPeat,NoExploitation(NoDeforestation)policies
WilmarandMusimMas,whichwerebothmajordirectbuyersofKorindooilpalm,haveadoptedNoDeforestation,NoPeat,NoExploitationpolicies(hereinafterNoDeforestationpolicies).Wilmar,theworld’slargestoilpalmtrader,wasthefirsttoannouncesuchapolicy,inDecember2013.49MusimMasadopteditspolicyinDecember2014.50CompaniesthathaveadoptedNoDeforestationpoliciescommitthemselvestoanumberofactionsincluding:- EndingalldeforestationandconservingHighConservationValue(HCV)areasandHighCarbonStock
(HCS)areas(usingtheHighCarbonStockapproach);- Protectingallpeatlands(regardlessofdepth);- RecognizingtherightoflocalcommunitiestogiveorwithholdtheirFree,PriorandInformed
Consent(FPIC)toanynewdevelopments;- ComplyingwiththefundamentalconventionsoftheInternationalLabourOrganisation(ILO)51and
upholdingthewiderUnitedNationsGuidingPrinciplesonBusinessandHumanRights.52Thepoliciesapplytoasignatory’sownplantationoperationsandtheirthird-partysuppliers.Whenasupplierisfoundtobenon-compliant,thetraders’procurementandsustainabilityteamstypicallyengagewiththesuppliertoexplainthepurposeandimpactoftheirNoDeforestationpolicy.Ifthesupplierisfoundtobedevelopinglandincontested(forest,peat,conflict)areas,itistypicallyrequestedtoissuea“stop-workorder”untilrelevant(HCV,HCS)studiesarecompletedand/orlandconflictsareresolved.Suppliergroupswhofailtoenforcesuch“stop-workorders”runaparticularlyhighriskofseeingtheirtradewithNoDeforestationpolicysignatoriessuspendedorceased.Asthisreportdetailsbelow,KorindocompanieshaverepeatedlyandegregiouslyviolatedbothWilmarandMusimMas’NoDeforestationpolicies,despiterepeatedwarningsfrombothcompaniesthattheymustchangetheirpractices.Asaconsequence,KorindohaslostWilmarandMusimMasascustomers,whichwillhaveaseriousimpactonKorindo’snetincome.Dozensofothercompaniesacrossthepalmoilsupplychainhaveadoptedstrongconservationpolicies,includingthemajortradersApicalGroup53,GoldenAgri-Resources54andADM,55aswellasmajorproducerssuchasAstraAgroLestari,FirstResources,andBumitama.Together,NoDeforestationsignatoriescoverthevastmajorityofthegloballytradedpalmoilmarket.56Thepacesettoensure
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suppliers’complianceisthecriticalfactorastowhethertheadoptedpolicieshaveabigimpactontheground.PTTunasSawaErma(PTTSE)announcesmoratorium
Recently,afterbeingengagedonsustainabilitymattersbyMusimMas57andWilmar,Korindo’ssubsidiaryPTTunasSawaErma(PTTSE)hasdeclaredathree-monthmoratoriumonitsnewlanddevelopments.PTTSEannouncedthisinalocalnewspaperon9August2016(seephotobelow).DuringthethreemonthsPTTSEplanstoestablishacomprehensiveNoDeforestation,NoPeat,andNoExploitationpolicyandconductstakeholderengagement.PTTSEcontrolsthreeplantations.PTTSE1Aisalreadyplantedwithoilpalm,forPTTSE1Bclearingactivitiesweregoingonin2016,forPTTSE2nodevelopmenthasbeenstartedyet.AsofMay2016around25,000hectaresofforestswereremainingintheplantationsofPTTSE1BandPTTSE2.SubjectingPTTSEtoaNoDeforestationpolicywouldbringaboutsignificantbenefitsforecologyandthecommunities,ascomparedtopreviousdevelopedoilpalmplantationsbyKorindo.Korindo’ssubsidiariesPTGMMandPTPALarepresentlyalsodevelopingoilpalmplantations.Yet,forthesecompaniesKorindohasnotdeclaredamoratoriumandhasnotannouncedaNoDeforestationpolicy.Perhapsthefactthatthesetwoplantationcompaniesare15%ownedbytheKoreancompanyHyosung(incontrasttoPTTSE,whichisa100%Korindocompany)hassomethingtodowiththis.KorindohasalsonotdeclaredaNodeforestationpolicyforitswood-relatedbusinesses.Photo.TheannouncementbyPTTSEinalocalnewspaperon9August2016
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3. (Former)CustomersofKorindooilpalmSupplychaintransparency
Sixmajorglobalpalmoiltraders/processorshavecommittedthemselvestosupplychaintransparency.Thesecompanieshavemadeinformationpubliclyavailableregardingwhichmillstheysourcetheirpalmoil(CrudePalmOiland/orPalmKernel)from.Fromtheinformationthesecompanieshaveprovideditappearsthatfourlargepalmoiltraders/processors:Wilmar,MusimMas,ADMandIOIweresourcingpalmoilfromKorindorecently.However,WilmarandMusimMashavestoppedsourcingfromKorindoasofJuly/August2016.IOIandADMdidnotsourcedirectlyfromKorindo,andhavebeenbuyingKorindopalmoilfromWilmarand/orMusimMas.Presently,itisuncleartowhichcompaniesKorindosellsitspalmoil.Table2.KnownFormerCustomersofKorindo’sPapuanOilPalm
Processor Processingunit ProcessingunitlocationPeriodforwhichcompaniesrevealedsupplychains
MusimMas58PTAMR,BitungPTAMR,Madidir
NorthSulawesi,Indonesia 2015
Wilmar59PTMNS,BitungPTWINA,GresikPTSAP,Palembang
NorthSulawesi,IndonesiaEastJava,IndonesiaSouthSumatra,Indonesia
January-Dec2015
ADM(indirectly)60
ADMEurope,SIOADMNorthAmerica(allfacilities)ADMEurope,CzerninADMEurope,NobleeADMEurope,Purfleet
FranceNorthAmericaPolandGermanyUK
July2015–Sept2015
IOILodersCroklaan(indirectly)61
ChannahonRexdaleRotterdamWormerveer
USACanadaNetherlandsNetherlands
1Q2016
WheredidKorindo’sproduceendup?Table2aboveshowsthatKorindo’sproduceendedupatEuropeanandNorthAmericanmarketsthroughADMandIOILodersCroklaan.Inaddition,refineriesinthefollowingcountriesweresourcingfromWilmar’sprocessingunitsPTMNS,PTWINAandPTSAP:ChinaandIndia(bothvariouslocations),Netherlands(RotterdamandRozenburg),Germany(Brake)andtheUnitedStates(Stockton).62Allinall,untilrecently,theendconsumersofKorindo’spalmoilcouldbefoundinatleastEurope,NorthAmerica,ChinaandIndia.
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4. Issuesbyplantationcompany
4.1 PTGeloraMandiriMembangun
Socialissues
Korindo’sPTGMMhasfailedtorecognizetherightoflocalcommunitiestogiveorwithholdtheirFree,PriorandInformedConsent(FPIC)toanynewdevelopmentsoncommunitylands.Fromtheoutsetoftheproject,thecommunitieshavebeeninadequatelyinformed.InJanuary2012,residentsdemonstrated,demandinganendtoPTGMMoperations.Inthemiddleof2013,theconflictescalatedwiththearrest/criminalizationof13villagersfromGaneDalamandSekelybytheSouthHalmaherapoliceoveralandconflictwithPTGMM.Residentsfiledacomplaintalleginghumanrightsviolationsoverthedetentionofthe13villagers.ThistriggeredaninvestigationbytheIndonesianHumanRightsCommission(KomnasHAM),whichmadeastatementemphasizingthat,whenmakinginvestments,governmentsandcompaniesshouldconsiderthatindigenouspeoples’livesarehighlydependentonnaturalresources.Thecommissionfurthernotedthatthereportingof13villagerstothepolicehadhadanadverseeffectoncommunicationsbetweenthecompanyandthecommunities,andthatingeneralthepresenceofthecompanyhadcausedinsecurityanddisruptedpeople'slives.63InFebruary2016,theconflictbetweenvillagersandthecompanyflaredupagain.Thecompanyevictedpeoplefromtheirproductivefarmland,andthreatenedthosewhorefusedtoleave.Italsopressuredpeopleintogivinguptheirlandatpricessetbythecompany.64On11May2016,theNorthMalukubranchoftheIndonesianenvironmentalNGOWalhiannounceditwouldsueKorindooveranumberofissues,includingrestrictingcommunityaccesstocleanwater,notfulfillingEnvironmentalImpactAssessment(EIA)procedures,itslackofaRighttoExploit(HGU,HakGunaUsaha)permit,plantingoilpalmonsteepslopes,burning,anddisregardingcommunities’customaryrights.65InMay2016,villagersfromGaneDalam,Jibubu,Pasipalele,Sekely,andGaneLuarsubmittedaformallettertotheNationalLandAgency(BPN),rejectingtheprojectandaskingtheheadofBPNnottoissueanHGU.66On5August2016KorindostartedloggingintheareaalongtheriverDukolo,despiteanearlieragreementwiththecommunityGaneLuarnottodoso.TheagreementwasmadeinApril2015inattendanceofthepolice.Theriveristhesourceofcleanwaterforthecommunity.67Hotspotsanddeforestation
BythebeginningofDecember2015,PTGMMhadalreadycleared5,200hectares.Clearingcontinuedin2016,increasingto6,100hectaresbytheendofApril.68Theareaofsecondaryforestlosttoclearingamountedto5,100hectares.Therehavebeenmanyfiresinthearea,suggestingaseriousriskthatKorindohasviolatedIndonesia’slawsagainstburning.Asmanyas127hotspotswererecordedin2014and2015(106in2014and21in2015),whereasin2013,priortoKorindo’slanddevelopment,therehadbeennone.InSeptember2015,firesinsidetheKorindoconcessionspreadtofarmlandbelongingtovillagersfromSekely.Thecompanytooknoaction.Instead,itaccusedthevillagerreportingthefiresofaccidentlyburninghisownfarmland.69InMay2016,TomPickenoftheUS-basedNGORainforestActionNetworkconductedafieldinvestigationintheconcessionarea.Hestatedthat“ManyvillagersconfirmedthattheKorindoGroupexpandsoilpalmplantationsthroughtheuseoffire.”70
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Figure6.Hotspotsin2014and2015inareasclearedbyPTGMM
Sources:Landsat8imagery:3to11December2015.FIRMS,http://go.nasa.gov/27awNFgPhoto:ClearedforestsandhazewithinKorindo’sPTGMMconcession
©Walhi,November2014.
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4.2 PTPapuaAgroLestari
Clearanceofprimaryforestin2015
LanddevelopmentbyPTPapuaAgroLestari(PTPAL)beganafterApril2015.Theconcessionareacomprises32,300hectares,ofwhich94%containedprimaryforest.Bytheendof2015,some2,600hectaresofprimaryforesthadalreadybeencleared.71Theclearingwasaccompaniedbyfireswithatotalof221hotspotsrecordedbetweenAugustandNovember2015.Intheyears2013and2014,priortolanddevelopment,therehadbeennone.Figure7.FiresraginginthePTPapuaAgroLestariconcession,September2015
Sources:Imageleft,Landsat8imagery,6to14September2015.Imageright,Landsat8imagery,22to30September2015Clearingcontinuingin2016
BylateDecember2015,PTPALhadcarvedoutplantationblocksin2,300hectaresofprimaryforesteastoftheclearedareaaspartofpreparationsfordevelopingtheoilpalmplantation.BythefirstweekofJune2016,1,200hectaresofprimaryforesthadalreadybeenclearedinsidethenewplantationblocks.72ThesatelliteimagerybelowfromJune2016alsoshowsnoriparianbuffersaroundthefloodarea.ThismeanstherehasbeennoproperassessmentofHighConservationValue(HCV)areas.
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Figure8.Clearingcontinuingin2016(clearedareasmarkedinorange)
Source:Landsat8imagery
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4.3 PTBerkatCiptaAbadi1
Forestloss
TheentirePTBCA1concessionareawasforestedbeforeKorindostarteditsoilpalmoperations.During2013and2014,atotalof4,500hectaresofprimaryforestwerecleared,alongwith8,700hectaresofsecondaryforest.Onlyarivercorridorof700hectareswasspared,asshowninFigure9below.Figure9.PTBCA1forestlossin2013and2014
Sources:IndonesianMinistryofForestryforestcovermapsfor2011;Landsat8imageryfor22to30September2015.
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Hotspotpattern
Forestclearanceandoilpalmplantingtookplacein2013and2014insidethePTBerkatCiptaAbadi1(PTBCA1)concessionarea.Landdevelopmentbeganinthenorthandendedinthesouth.Hotspotsfolloweddeforestationandsubsequentlanddevelopment.Intotal,106hotspotswererecordedin2013and2014(19in2013and97in2014).In2015,afterthelandhadbeenfullydeveloped,onlyonehotspotwasrecorded.73Inaletterdated22June2011,theIndonesianMinistryofForestryspecificallyprohibitedPTBCAfromburningwoodwaste,whenitreleasedforestlandtoPTBCA1thatyear.74Burningwouldhavebeenillegalanyway,yetKorindoalsoignoredthisextrawarning.Figure10.PTBCAhotspotpatternin2013and2014
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4.4 PTTunasSawaErma1B
Northernsection:alreadydevelopedby2008
PTTunasSawaErma1B(PTTSE1B),whichholdsanareaof19,000hectares,beganworkingin2005.ItapproachedinhabitantsinthevillagesofGetentiriandUjungKia,andidentifiedtheclansthatownedtheland.ClansfromtheAuyuJairtribeowncustomarylandinbothvillages.InGetentirivillage,11clanshavetraditionallandscoveringmorethan7,000hainthenorthernpartoftheconcessionarea.On25August2005,atraditionalceremonycalledUpacaraDermaAdatwasheldinGetentirivillagetomarktheestablishmentoftheoilpalmplantation.By2008,7,000hectareshadbeenplantedwithoilpalm.75Southernsection:newdevelopmentrecentlystarted
IntheSouthernpartoftheconcessionarea,25AuyuJairtribeclansownmorethan12,000hectaresofland.On22March2006,thelandownersinUjungKiarejectedtheplantationproposal.76Nevertheless,landclearingcommencedintheSouthernpartoftheconcessionareain2015.Alongwiththisdevelopment,88hotspotswererecordedin2015withafurther6inJanuary2016(seethemassivefiresshowninFigure11below).BytheendofApril2016,some2,800hectareshadbeencleared(seethebrownishcolorontherighthandimageinbelow)comprising500hectaresofprimaryforestand2,300hectaresofsecondaryforest.77Figure11.PTTSE1B,newdevelopmentsince2015
Sources:Left:Landsat8imageryfor24October2015to1November2015.Right:Sentinel-2image,11May2016
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Remainingforests
InMay2016,mostoftheundevelopedareainthePTTSE1Bconcessionwascoveredwithprimaryandsecondaryforest,asisshownbyFigure12below.Theremainingforeststandscomprise700hectaresofprimaryforestand6,400hectaresofsecondaryforest.Theseareatimminentriskofdestruction.Figure12.RemainingforestinPTTSE1BconcessionasofMay2016
Sources:Sentinel-2satelliteimagefor11May2016andIndonesianMinistryofForestryforestcovermapsfor2011
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4.5 PTDonghinPrabhawa
24,000hectaresalreadyplanted
LanddevelopmentbyKorindo’sPTDonghinPrabhawa(PTDP)commencedattheendof2010.Bytheendof2015,ithadalreadyplanted24,200hectares.Atotalof6,700hectaresofforestwereclearedintheperiodfrom2011toMay2016,2,900hectaresofwhichwasprimaryforest.78AsofMay2016,thewesternsideofthePTDPconcessionhadnotbeencleared.Approximately2,100hectaresofprimaryforestand1,000hectaresofsecondaryforestremained,asisshowninFigure13.Figure13.RemainingforestinthePTDPconcessionasofMay2016
Source:IndonesianMinistryofForestryforestcovermapsfor2009Fireanalysis
Figure14belowshowsthehotspotsrecordedin2013,2014and2015,eachoverlaidwithsatelliteimagesoftheirrespectiveyears.PTDP’sdevelopmenthasbeenaccompaniedbyfires.Intotal,351hotspotswererecordedinthePTDPconcessionduringtheperiodfrom2013to2015(43in2013,144in2014and164in2015).Firestypicallyfollowedafewmonthsafterdeforestation,makingitclearthatKorindousedfiretoclearbiomassfromthelandinpreparationforplanting.
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Figure14.Hotspotsin2013,2014and2015
Sources:Landsat8imageryfor21to29August2013,24Octoberto1November2014,and16to26June2015respectively.FireInformationforResourceManagementSystem(FIRMS),http://go.nasa.gov/27awNFg
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Hotspotdatawasretrievedfortheareainsidetheorangerectangle.Figure14aboveshowsthatduringtheperiodfrom2013to2015,therewerealmostnofiresintheforestedareasurroundingtheplantationdevelopment,andalsonofiresintheareasthathadalreadybeenplantedwithoilpalm.Thisshowsthatfiresoccurredonlyduringthelandclearingstage,withthevastmajorityoffiresoccurringduringthedryseasonbetweenJulyandOctober.Figure15belowshowsallthehotspotsrecordedintheperiodfrom2013to2016.In2016,12hotspotshadbeenrecordedbymidMay.Figure15.HotspotsinthePTDPconcession,2013–2016
Sources:Landsat8imageryfor8to16May2016.FireInformationforResourceManagementSystem(FIRMS),http://go.nasa.gov/27awNFg
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4.6 Daewoo’sPTBioIntiAgrindo
TheKoreanconglomerateDaewoo(recentlyrenamedPoscoDaewoo)hasanoilpalmconcessionadjacenttoKorindo’s.Figure16belowshowsKorindoplantationsmarkedinorange,whileDaewoo’sismarkedinred.Daewoo’splantationcompany,calledPTBioIntiAgrindo(PTBIA),islocatedinMeraukedistrict,andaccordingtoitsforestlandreleasepermit,coversanareaof36,400hectares.79Daewoohasrecentlyconfirmed(May2016)thatitgetsadvicefromKorindowithregardtoitsplantationoperations.80Daewooacquiredan85%stakeinPTBIAinSeptember2011.81Theowneroftheremaining15%ofthecompanyisunknown,thoughinalllikelihooditisKorindo.Figure16.LocationsofDaewoo’sPTBioIntiAgrindoplantationcompany(markedinred)
Exclusionfromtheworld’slargestsovereignwealthfund
Theworld’slargestsovereignwealthfund,theNorwegianGovernmentPensionFundGlobal(theFund),isamajorplayerinthefieldofSociallyResponsibleInvesting(SRI).On17August2015,itannouncedtheexclusionofDaewooanditsparentcompanyPOSCO,becausePTBIArepresentedanunacceptableriskofsevereenvironmentaldamage.82Earlier,theFundhadalreadydivestedfrom27palmoilcompaniesonaccountoftheir“unsustainableproductionpractices”.83Increasingly,theFundseescompaniesandsectorswith“unsustainablesocialandenvironmentalpractices”asarisktoitslong-termfinancialobjectives,andhascompletedstrategicsalesofequitiesinthepalmoil,coal,andminingsectors.Hotspots
AswithKorindo’splantationcompanies,withPTBIAallevidencealsopointstothesystematicuseoffireduringitslandclearingprocesses.ClearingofPTBIA’s6,800-hectarewesternblockcommencedin2012,continuedin2013andfinishedin2014.Figure17showsthecorrelationbetweendeforestationandthefiresinthewesternblock,aspublishedonthewebsiteAwasMIFEEinNovember2015.84Thepurplecolormarksdeforestation,whilethefiresareshowninorange.
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Figure17.DeforestationandfiresinthewesternblockofPTBIAin2012,2013and2014
Source:AwasMifee,Meraukeburns,butweretheplantationstoblame?,20November2015,http://bit.ly/28LFIFf.InSeptemberandOctober2015,158hotspotswererecordedintheconcession’s29,400-hectareeasternblock,concentratedintheareathatwasdeforestedearlierthatyear.ThesatelliteimageinFigure18belowalsoshowstwolargefires,togethercoveringmorethan200hectares.Figure18.HotspotsinthePTBIAconcessionareainSeptemberandOctober2015
Sources:Landsat8imagery22to30September2015.FIRMS,http://go.nasa.gov/27awNFg.Deforestation
AccordingtoIndonesianMinistryofEnvironmentandForestryforestcovermaps,thePTBIAconcessionareacomprised19,800hectaresofprimaryforest,15,900hectaresofsecondaryforestand500hectaresofwaterwaysin2011.WhilePTBIA’swesternblockhadbeenfullyconvertedtooilpalmplantationbytheendof2014,deforestationiscurrentlyongoinginitseasternblock.Figure19belowshowstheareaoftheeasternblockclearedbyMay2016.Theareasmarkedinorange(atotalof3,300hectares)wereclearedinthe8-monthperiodfromOctober2015toMay2016.InMay2016,approximately16,000hectaresofforestwasstillstandinginsidethePTBIAconcessionarea,morethan9,000hectaresofwhichwasprimaryforest.85Thismeansthatsince2012,Daewoohasdeforestedmorethan10,000hectaresofprimaryand9,000hectaresofsecondaryforest.
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Figure19.AreaclearedinPTBIA’seasternblockbyMay2016
Sources:Landsat7imageryfor8Mayto9June2016.Landsat8imageryfor22to30September2015Photo:PTBIA,Westernblock
©Mighty;5June2016;Latitude6°54'53.46"S,Longitude140°28'26.20"E
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5. Korindocompanyprofile
5.1 Businessesandownership
Korindohasaround20,000employeesandcomprisesmorethan30affiliatedcompanies.Itsmainbusinessesareinnaturalresourceswithoperationsinvolvinglogging,pulpwoodandoilpalmconcessions,aswellasplywood,woodchipandpalmoilproduction.OtherKorindobusinessesincludenewsprintpapermanufacturing,heavyindustriesincludingwindtowers,financing,andrealestate.86Itsrevenuesarenotdisclosed.Photo:TheKorindoofficetowerinJakarta
Source:Flickr,BxHxTxCx,takenon22December2011,http://bit.ly/1t2RjbeAnopaquecompany
Korindoisanopaquecompany.Sinceitisnotapubliccompany,itisnotsubjecttothetransparencyrequirementsofstockexchanges.Korindodoesnotmakeitsannualreportsavailabletothepublic,andthusprovidesnoinformationonbusinessareas,revenuesandearnings.Korindohasacomplexbusinessstructurewith30affiliatedcompaniesoperatinginseveralquitediversebusinesses.ManyofKorindo’sIndonesianaffiliatesareownedbySingaporeorHongKongregisteredcompanies,whicharemostlikelyownedbyothercompaniesinotherjurisdictions.Thoughlinkstothesecompaniesinotherjurisdictionscouldnotbetrackeddown,throughthePanamapapersKorindoChairmanSeungEun-howasfoundtohaveseveralcompaniesregisteredintheBritishVirginIslands.87Thecomplexbusinessstructure,amongotherthings,makesitimpossibletodeterminetheexactownershipofthesebusinessesandwhetherorwherethecompanyfulfilsitstaxobligations.
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Ownership
KorindoismajorityownedbytheSouthKoreanSeungfamily.In1948,theKoreancompanyDongwhaEnterprisewasfoundedbySeungSang-bae,whopassedawayin2009.88Sincethemid-1960s,DongwhahasimportedtimberfromIndonesia,Malaysiaandothercountries.SeungSang-bae’sson,SeungEun-hotravelledtoIndonesiain1969insearchofhigherqualitytimber.In1970,DongwhaboughtaloggingconcessioninKalimantanandestablishedanIndonesiancompany.In1976,theKorindoGroupwaslaunched,itsnamebeingacompositeofthewordsKoreaandIndonesia.89SeungEun-horemainedinIndonesiaastheChiefExecutiveOfficer(CEO)ofKorindo,extendingbusinessoperationstoothersectors,suchasplywoodandnewsprint,andlateraddingheavymachineryandoilpalm.SeungEun-hohasbeenreportedasbeingtheChairmanandCEOofKorindo.90However,severaldocumentsshowhimcurrentlyactingasChairman,whileBeomSoo(Robert)SeungisnamedasCEO.91SeungSang-bae’ssecondson,SeungMyung-hocurrentlyservesasCEOofDongwhaEnterpriseCo.Ltd(Dongwha).Thetotal2015revenueofDongwha,whichislistedontheKoreaStockExchange92,wasKRW675billion,equivalenttoUSD0.6billion.93Thecompanyproducesawiderangeofprocessedwoods,suchasMDF(medium-densityfiberboard)andparticleboard.Italsosellstimberproducts,andownstwoKoreannewspapers(theKoreaTimesandHankookIlbo).94Asof31December2015,SeungEun-ho,theChairmanofKorindo,hada9.3%shareinDongwhaEnterprises.95Inthepast,SeungEun-howasalsoChairmanofDongwhaHoldings.96Now,thebusinessesofDongwhaEnterprisesandKorindoappeartoberunseparatelyandforthemostparthavedifferentowners.Korindo’sbusinessactivities
Figure20belowprovidesanoverviewofKorindo’sbusinessesbasedonitswebsite.97ResourceManagementhasalwaysbeenthemaincomponentofKorindo’soperations,comprisinglogging,timberprocessing(plywood,woodchips),pulpwoodplantationsandoilpalmoperations.Figure20.Korindo’sbusinessesanddivisions
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5.2 Loggingandplywood
OneofthelargestIndonesianplywoodmanufacturers
Korindo’sResourceManagementoperationshavethreegeographicalclusters:AsikiinPapua,PangkalanBuninCentralKalimantanandBalikpapaninEastKalimantan.Thesethreeclustersrepresentthecompany’sloggingandwoodprocessing–predominantlyplywood-operations.KorindoisoneofthelargestplywoodmanufacturersinIndonesia.In2004,itsshareofworldproductionwasestimatedat4%.98Now,however,Indonesiaexportslessplywood,whileglobalplywoodproductionhasincreasedsignificantly.99In2014,Japan(27%),China(26%)andtheMiddleEast(14%)werethemainexportdestinationsforIndonesianplywood.100Korindo’spresentannualplywoodproductioncapacityisintherangeof500,000–800,000cubicmeters(m3).RecentdocumentationbycertificationbodiesstatethatKorindo’stotalplywoodcapacityamountsto772,000m3.101Korindoitselfreportsanannualproductioncapacityof564,000m3onitswebsite,thoughthisseemsoutdatedinformation.102InformationonKorindo’sactualproductionofplywoodisnotpubliclyavailable.Asiki(Papua)
KorindostartedlogginginPapuain1993inits464,000-hectarePTBadeMakmurOrissaloggingconcession.103Atpresent,ithastwoactiveloggingconcessionsinPapua:PTTunasTimberLestariandPTInocinAbadi,withconcessionareasof215,000104and100,000105hectaresrespectively.Figure21belowshowsthelocationsofKorindo’sPapuanloggingconcessions(inred)andoilpalmconcessions(inpurple).ProductionfromthelargePTBadeMakmurOrissaconcessionwaslastreportedfor2012.106ThecompanyPTKorindoAbadiprocesseswoodinAsikivillage.Ithasalicensetoproduce100,000m3ofplywood,100,000m3offilmfacedplywood,and8,000m3ofsawntimberannually.107ItislikelythatKorindousesitsownloggedtimberinthePTKorindoAbadiplywoodfactory.Nevertheless,itprobablyhasthird-partysuppliersaswell.Korindoisalsoathird-partysupplierofproduceunsuitableforplywoodandsawnwoodproduction.Itislikely,forexample,thatKorindosellssomeofitswoodproduceinPapuatothelargePTMedcoPapuaIndustriLestarifactoryinMerauke;afactorywithannualproductioncapacitiesof1,800,000m3forwoodchipsand200,000m3forwoodpellets.TheKoreancompanyLGInternationalhassecureda50%offtakeofoutputanda40%stakeintheproject.108Figure21.LocationsofKorindooperationsinPapua
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Photo:SignboardsforKorindo’sPTInocinAbadiloggingconcession
©Mighty;4June2016;Latitude6°46'32.46"S,Longitude140°38'32.78"EBalikpapan(EastKalimantan)
PTBalikpapanWanaLestari,formerlyPTBalikpapanForestIndustries,hasa141,000-hectareloggingconcessionspanningthethreedistrictsofPaser,NorthPenajamPaserandWestKutai.109PTBalikpapanForestIndustries’factory,locatedinJeneboravillageinNorthPenajamPaserdistrict,hasannualproductioncapacitiesof100,000m3forplywood,52,000m3forfilmfacedplywoodand7,000m3forsawntimber.110ThecompanyceasedoperationsinDecember2012andlaidoff1,700employeesaftermakinglossesintheperiodfrom2009to2011.Itreopenedin2013withanewworksystem.Reportedly,in2013itsproducewasexportedmainlytoSaudiArabia(55%)andJapan(25%).111Figure22.LocationofKorindooperationsinEastKalimantan
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PangkalanBun(CentralKalimantan)
KorindocurrentlyhasoneactiveselectiveloggingconcessioninCentralKalimantanbelongingtoPTTrisetiaIntiga.Theconcessioncoversanareaof69,000hectaresandislocatedinLamandaudistrict.112Thesouthernpartoftheconcessionoverlapswithoilpalmplantationscoveringanestimated18,000hectares.AccordingtocertificationbodyPTEqualityIndonesiatherehasbeennoresolutionprocesswithregardtotheoverlappingareas.113ThecompanyPTKorindoAriabimaSarioperatesinthecityofPangkalanBunproducingplywood,filmfacedplywoodandUCP(UrethaneCoatedPlywood).114Itsannualcapacityissaidtobe210,000m3ofplywood,20,000m3ofveneer,137,500m3offilmfacedplywood,72,500m3ofUrethaneCoatedPlywood,24,000m3ofblockboardand16,000m3ofsawntimber.115Inaddition,15,000tonnesofformaldehydeand24,500tonnesofureaformaldehydescanbeused.116AreportinFebruary2016saidthecompanyhad1,228permanentemployeesand645temporaryemployees,andthatKorindoplannedtolayoffhalfofthetemporaryemployees,andreducethepermanentemployees’workinghoursduetoalowerdemandforitsplywoodintheMiddleEast.Workersplannedamassstrikeinresponse.117PTKorindoAriabimaSarialsolikelyhasthird-partysuppliersthatdeliverhigh-qualitytimberneededforplywoodproduction.On1August2016thegovernorofCentralKalimantanprovince,Mr.SugiantoSabran,visitedthefactoryofPTKorindoAriabimaSariinPangkalanBun.Citizenshadbeencomplainingaboutthesmokeanddustcomingfromthefactory’schimneys.Thiscauseditchesandotherillnesses.Thefactoryislocatedneartoadenselypopulatedarea.ThegovernortoldKorindothatitshouldsolvethepollutionproblemwithin6months.Otherwise,sanctionswouldfollow.118Figure23.LocationsofKorindooperationsinCentralKalimantan
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CustomersofKorindo’splywood
ReportssuggestthatKorindo’splywoodismainlyexportedtotheMiddleEast.119ThecompanyTranscontinentalIndentingCo.LLC(TIC),locatedinDubaiintheUnitedArabEmirates,claimstobetherepresentativeofficeofKorindo’splywoodproductsfortheMiddleEast(excludingSaudiArabia),bookinginexcessof200,000Korindoproductseveryyear.120AnarticleinApril2009statedthatKorindoshipstoallportsintheGulfCooperationCouncil(GCC)region121onamonthlybasisinordertomeetclientneeds.“[Korindo]chartersitsownvesselattheendofeverymonthduetothehighvolumeofordersfromtheirGCCcustomers,”saidTICmanagingdirectorJitendraBhatia.122
5.3 Pulpwood
KorindohasalargepulpwoodconcessioninCentralKalimantanbelongingtoPTKoritingaHutani(PTKTH).The94,000-hectareconcessionareaspansthetwodistrictsofLamandauandWestKotawaringin.123In2014,29,000hectareswereplantedwitheucalyptus(Eucalyptuspellita),25,000hectareswithacacia(Acaciamangium)and2,500hectareswithwaru(Hibiscussimilis).PTKTHalsohasachipmillinPangkalanBunforprocessingitspulpwood.Ithasanannualproductioncapacityof963,636m3forwoodchips.Additionally,thefactoryisabletoproduce265,000m3ofwoodpellets,50,000m3ofveneer,and35,000m3ofsawntimber.124PTKTHcustomersintheperiodfromMaytoNovember2013includedPTTanjungenimLestariPulpandPaper(PTTELPP)ownedbytheJapaneseMarubeniCorporation125,PTAlamAbadiPerkasa(PTAAP),andUDFayarJaya.126TheJapanesepulpandpaperconglomerateOjiHoldingshasa34.34%shareinPTKTH.127ItacquiredthestakeinMarch2010forUSD103million.128ReportsinJuly2013andMarch2014saidsubstantialvolumesofPTKTH’swoodchipswouldbesuppliedtoOjiinJapanforpapermanufacturing.129ThewoodpelletsarelikelyshippedtoKoreaandJapan.130PTBelantaraSuburisanotherKorindopulpwoodconcession.Itcovers16,475hectaresandislocatedadjacenttoKorindo’sPTBalikpapanWanaLestariloggingconcessioninEastKalimantan.131AnewpulpwoodplantationinPapua?
InSeptember2015,KorindoandPapuangovernmentsourcesreportedthatKorindoisconsideringestablishingapulpwoodplantationinPapua.PapuaGovernor,LukasEnembe,andKorindoarebothinterestedinsettingupabiomassplanttogenerateelectricity,combinedwithapulpwoodplantation.Discussionswerealreadyunderwayovertheacquisitionof12,000hectaresoflandinJayapuradistrictandJayapuraMunicipality.Thelocationofthelandunderdiscussionisunclear,sothepresentforestcoversituationalsoremainsvague.However,Jayapuradistrictcurrentlyhassubstantialprimaryandsecondaryforestcover.AccordingtoaKorindospokesperson,10MWofelectricitycouldbegeneratedfrom7,000hectaresofeucalyptus.132
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5.4 Indonesia’slargestnewsprintmanufacturer
PTAspexKumbong
LocatedinCileungsinearJakartaontheislandofJava,PTAspexKumbong(Aspex),a100%Korindocompany,isIndonesia’slargestnewsprintmanufacturerwithaproductioncapacityof440,000tonnesperyear.133LargeAspexcustomersincludetheIndonesianmediacompanyKompasGramedia-publisherofthenationalKompasnewspaperandregionalTribunnewspapersamongothers134-andtheAustraliancompanyOceanicHolding.135OceanicexportswastepapertoAspex,whichisthenimportedbackintoAustraliaasnewsprint,aswellasgoingtoNewZealandandSouthAfrica.Aspex’snewsprintpaperissaidtobemadefrom100%recycledpapercollectedfromAustralia,NewZealand,theUSAandIndonesia.136Aspexisalsoreportedtoproducepapergradesotherthannewsprint,suchaspaperfornotebooks,textbooksandtelephonedirectories.137LittleInformationwasavailableonthisaspectofAspex’sbusiness;however,itdoeshaveanFSCChainofCustodycertificatefornewsprint,printing&writingandfoodwrappingpaper.138Korindo’sUSsubsidiaryKousaInternationalisAspex’sexclusiveUSpurchasingagent.139Dealinginbothrecoveredandprimepaper,thecompanyissaidtohandlevolumesexceeding200,000tonnesayear.Theprimepapersoldissaidtocomprisenewsprint,telephonedirectorypaper,printing&writingpaperandpaperforotheruses.However,adatabasethattracksshipmentstotheUSrevealednoimportsofpaperbyKousaInternationaltotheUS.Kousa’smostrecentexportofrecycledpapertoPTAspexKumbongwasfromJuly2015.140Taxevasion?
AspexisrelatedtoacaseofallegedtaxevasionbyKorindoChairmanSeungEun-hoandhissons.TheKoreanNationalTaxServicefirstinvestigatedthecaseandreferredittotheSeoulCentralDistrictProsecutors'OfficeinApril2014.Accordingtotheprosecutor,SeungEun-ho,aKoreancitizen,andhissonsallegedlyusedapapercompanysetupinanoverseastaxhavenwiththenamesofotherpeopleinordertoavoidpayingtaxesinKorea.SeunghasreportedlyclaimedthathehasnoreasontopaytaxesinKorea,becauseheiscurrentlynotaresident.TheNTS,however,believedthatheandhissonsstayedinKoreaformorethanoneyearduringthe2-yeartaxationperiod,sotheywouldbeobligedtopaytaxesinaccordancewithKoreanlaw.AsofOctober2014,SeungEun-hohadyettobesummonedforquestioning.141InquiriesintohiswhereaboutsandincomewerestillbeingreportedonaKoreanNationalTaxServicewebsiteinApril2016.142
5.5 Finance
Korindohasa20%shareintheIndonesiancompanyPTNongHyupKorindoSecuritiesIndonesia.143Amongotheractivities,thecompanyisengagedinequitybrokerageandinvestmentbanking.144ItcurrentlyrunsKorindo’sFinanceandSecuritiesbusinesses,whichwerelistedseparatelyonKorindo’swebsitein2010.Themajorityowner,theNongHyupFinancialGroup,isKorea’ssecondlargestfinancialgroupbyassets.145PTMeritzKorindoInsuranceisajointventuregeneralinsurancecompanyinvolvingMeritzFire&MarineInsuranceCompany,Ltd.(51%)andtheKorindoGroup(49%).Thecompanyprovidesseveralinsuranceproducts,suchasfireinsurance,propertyallrisk,marinecargo,contractor/constructionandmotorvehicleinsurance.146
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5.6 Heavyindustry
Accordingtothe2010Korindowebsite,Korindo’sHeavyIndustrybusinesscomprisesfourdivisions:windtowers,foundryforging(steelstructures),specialvehiclesandcommercialvehicles.147Duringthecourseofpreparingthisreport,itwasnotpossibletogetacompleteupdatedpictureofKorindoHeavyIndustryactivities,sotheinformationbelowshouldbeviewedinthatlight.KorindowindtowershavebeeninstalledintheUS,India,AustraliaandNewZealand.TheproductionareaislocatedinCilegoninBantenprovinceonJava.Since2006,Korindohasproducedmorethan1,200towersfortheUSmarket.Korindo’sUSsubsidiaryKousaInternationalistheexclusiveagentforKorindoWind.ThepresidentofKousaInternationalisRickySeung.148CheckingadatabaseofshipmentstotheUS,KousaInternationalwasfoundtohaveimported5,900tonnesofwindtowercomponentsfromPTKorindoHeavyIndustryinFebruary2016,andanother2,000tonnesinApril2016.149KorindowindEnergycustomersincludetheSpanishenergycompanyIberdrola150,theGermancompanySiemens151,theDanishcompanyVestas,theUS-basedcompanyClipperandtheSpanishcompanyGamesa.152Overtheyears,clientsofKorindo’sfoundryandforgingbusinesshaveincludedPTDoosanHeavyIndustries(2010-2012),SookookEngineering(2012),PTKrakatauSteel(2011-2012),PTHanazonoEngineeringIndonesia(2012),PTAdhiKarya/PTGS-Korea(2013-2014),PTFLSmidtIndonesia(2011-2012),PTJGCIndonesia;asubsidiaryofJapanGasCorporation(2012),andSWC-BREJO(2012).153ItappearsthisareaofKorindo’sbusinesshasnothadmanyclientssince2012.Ofthoseclientslisted,manytypicallystemfromSouthKoreaandJapan.Recently,KorindoHeavyIndustryhasalsoworkedontheconstructionofitsownCPOMillsforPTDonginPrabhawaandPTBerkatCiptaAbadi.154KorindoEnergy(Singapore)Pte.Ltd.wasincorporatedinSingaporeon3November2010,andwasnotlistedonKorindo’s2010website.155Itprovidesengineservicesforthemarineandenergysectors,anditsbrochurereferstoalonglistofclients;mainlyinthemarinesector.156In2007,KorindobecameHyundai’sassemblypartnerfortheproductionoftrucksandbuses.ItestablishedaplantinBantenprovinceinthewesternpartofJavaafterinvestingUSD25million.157Hyundaiendedthecontractin2012.158AccordingtoKorindo’s2010website,KorindoHeavyIndustryproducedautomobilecomponentsforawiderangeofcustomersatitsplantinTangeranginBantenprovince.159TheIndonesianconglomerateBakrie&Brothersacquiredthecompanyin2012or2013160,thoughsomepartsofthecompanystillappeartoexist.InMarch2015,ChenChongKyong,oneofthedirectorsofKorindoMotors(alsolocatedinTangerang)wasarrestedforallegedinvolvementinacorruptioncasesurroundingthegovernment’sprocurementofTransjakartabusesin2013.161KorindoSpecialVehicles’businessboastsawiderangeofcustomersaccordingtothe2010Korindowebsite.Thesecustomersaremainlytransportationandminingcompanies.162
5.7 Coalmining
Korindoholdsastakeofatleast30.6%inalargecoalprojectlocatedinKapuasdistrictinCentralKalimantan.Estimatedreservesare337milliontonnesofbituminouscoal,andestimatedannualproductioncapacityis4milliontonnes.However,delaysinobtainingthenecessarypermitsfromtheIndonesiangovernmenthavemeanttheprojectbeingunabletostart.163
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5.8 Smallerbusinesses
SomeofKorindo’ssmallercompaniesinclude:- PTDongbangDevelopment-thisisthecompanybehindKorindo’srealestatebusiness.Itmanages
the16-floorWismaKorindoofficetowerinJakarta,and163apartmentsforleasetoexternalsandemployees.164
- PTMagnaDigitalLab-thiscompanyfocusesondigitalapplications.165- PTSeparindoIndustry-thisisKorindo’sbatteryseparatorbusiness,locatedinCileungsi,near
JakartaonJava.166- PTBumiIndawaNiaga-atradingcompany.- PTKorindoKonstruksi-aconstructionservicescompany.167- Onitswebsite,Korindostatesthatitalsohasarubberplantation,butnoinformationonthisrubber
plantationcouldbefound.
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Conclusion
Korindo’soilpalmpracticesfloutIndonesianlaw.AllevidencepointstosystematicandwidespreaduseoffirebyKorindoduringlandclearingprocesses.ThisisillegalinIndonesia.KorindowasalargecontributortoIndonesia’shazedisasterin2015accountingforalmost1%ofallfires.Korindo’soilpalmpracticesfallfarshortofthesustainabilitycommitmentsmadebythemaincompaniesthatgrow,refine,andtradepalmoil.Korindois,therefore,atseriousriskoflosingitsmainoilpalmcustomers.TwoofKorindo’smaincustomers,WilmarandMusimMas,haverecentlyalreadystoppedsourcingfromKorindo.NoteventherelativelylaxstandardsoftheRoundtableonSustainablePalmOil(RSPO)allowtheclearingofprimaryforests,whichKorindoisdoing.ThemaincompaniesintheoilpalmsupplychaindemandmuchhigherstandardsthanthoseoftheRSPO.ClearlyKorindodoesnotrespectthecustomaryrightsofcommunitiesinNorthMalukuthathavebeenlivingintheregionforhundredsofyears.Korindoshouldreturnthelandtheretoitsowners.KorindoispassingitshazardouspracticesontootherKoreanconglomerateslikePoscoDaewoo.ItisalsosettingadangerousprecedentforcommercialexploitationinPapua,hometothelargestremainingtractsofpristinerainforestinIndonesia.Inadditiontoitspracticesofdeforestationandburning,thecompanyisalsosurroundedbyallegationsoftaxevasionandcorruption.Korindoisanextremelyopaquecompany.Itshouldembracetransparency,soitscustomers,investorsandglobalconsumerscanassesswhetheritsactionsliveuptoitsdubiousclaimsofbeinga“green”company.Photo:ClearingofprimaryforestsbyPTPapuaAgroLestari(Korindo).
©Mighty(dronephoto);4June2016;Latitude6°45'42.90"S,Longitude140°48'28.38"E.Credit:YudhiMahendra
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peopleinPapua,acasestudyfromBovenDigoelDistrict,2014,http://bit.ly/1Ow7b8I21 CenterforInternationalForestryResearch(CIFOR),Workingpaper,Theimpactsofoilpalmplantationsonforestsand
peopleinPapua,acasestudyfromBovenDigoelDistrict,2014,http://bit.ly/1Ow7b8I22 TherehasbeenanearlieranalysisofthefiresofKorindo.Thisanalysiscanbefoundin:AwasMIFEE,Meraukeburns,but
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25 Mongabay,Companyorderedtopayrecord$76moverfiresinSumatra,12August2016,http://bit.ly/2boYDa7JakartaGlobe,MinistryofEnvironmentandForestryWinsWildfireLawsuit,12August2016,http://bit.ly/2aT0WphAntaraNews,WalhilaporkanSampoernakepolisi,26February2014,http://bit.ly/2aVqoGM
26 ApeAlliance,HistoriclegalcasefortheLeuserEcosystem’sTripaPeatSwampsfinallywonagainstpalmoilcompanyPTKallistaAlam,14September2015,http://bit.ly/1T5Q015
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27 HanimKamaruddin(NationalUniversityofMalaysia),CecepAminuddin(BandungInstituteofTechnology,Indonesia),
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28 AntaraPapua,WagubPapuamintaperusahaanpenyebabkebakaranhutanditutup,20October2015,http://bit.ly/28OCSRO
29 BorneoNews,PembekuanIzinMelumpuhkanPTKorintigaHutaniMinggu,17January2016,http://bit.ly/1QEJ8oU30 Mutucertificationinternational,PengumumanPublikPembekuanSertifikatPHPL–PTKorintigaHutani(announcement
freezingofcertificate),16February2016,http://bit.ly/29BWkgXMutucertificationinternational,PengumumanPencabutanStatusPembekuanSertifikatPHPL–PTKorintigaHutani(announcementrevocationfreezingstatus),25February2016,http://bit.ly/29HfiEC
31 SouthKoreanweeklymagazineSisaIN,IsaKoreancorporationthearsonistoftropicalrainforestfires?(translatedfromKoreanlanguage),31May2016,http://bit.ly/1UNjukp
32 FIRMS,FireInformationforResourceManagementSystem,http://go.nasa.gov/27awNFg33 TheWorldBank,Indonesia'sFireandHazeCrisis,25November2015,http://bit.ly/25SSZWc34 GlobalFireEmissionsDatabase(GFED),Lastandfinalupdate,16November2015,http://bit.ly/1WJvDIG35 Until16November2015.GlobalFireEmissionsDatabase(GFED),Lastandfinalupdate,16November2015,
http://bit.ly/1WJvDIG36 TheConstitutionalCourtoftheRepublicofIndonesia,DecisionNumber35/PUU-X/2012,16May2013,
http://bit.ly/1TQVSRuChairmanofUNCERD,AlexeiAvtonomov,lettertothePermanentRepresentativeofIndonesiatotheUnitedNations,30August2013,http://bit.ly/1tIZ84R
37 Kompas,Rp30MiliaruntukTanahUlayat,4June2012,http://bit.ly/28NUhYJ38 CenterforInternationalForestryResearch(CIFOR),Workingpaper,Theimpactsofoilpalmplantationsonforestsand
peopleinPapua,acasestudyfromBovenDigoelDistrict,2014,http://bit.ly/1Ow7b8I39 CenterforInternationalForestryResearch(CIFOR),Workingpaper,Theimpactsofoilpalmplantationsonforestsand
peopleinPapua,acasestudyfromBovenDigoelDistrict,2014,http://bit.ly/1Ow7b8I40 YayasanPusaka,PimpinanPT.TSEMengancamPHKkanBuruhOrangAsliPapua,19June2016,http://bit.ly/299XRvZ41 CenterforInternationalForestryResearch(CIFOR),Workingpaper,Theimpactsofoilpalmplantationsonforestsand
peopleinPapua,acasestudyfromBovenDigoelDistrict,2014,http://bit.ly/1Ow7b8I42 AwasMIFEE,CatatandariKunjungankePerkebunanPTDonginPrabhawadiMam,19February2014,
http://bit.ly/28UMUiwBusiness&HumanRightsResourceCentre,KorindoGroupdidnotrespondtoallegedabusesofworkersatpalmplantationinIndonesia,18February2014,http://bit.ly/28YuQaq
43 CenterforInternationalForestryResearch(CIFOR),Workingpaper,TheimpactsofoilpalmplantationsonforestsandpeopleinPapua,acasestudyfromBovenDigoelDistrict,2014,http://bit.ly/1Ow7b8I
44 RSPO,Aboutus,http://bit.ly/1s9gmZj45 KorindoWebsite,AboutChairman,http://bit.ly/1TSxXh9(accessedon13May2016)46 KorindoWebsite,GreenTomorrow(promotionalvideo),http://bit.ly/1TfOUlQ
YouTube,TheKorindoGroup-StrengthfromStrength,http://bit.ly/1XbDOAT47 RadarIndonesia,KorindoPeduliCiliwungLangkahNyataCintaAlamIndonesia,August2015,http://bit.ly/1U6EPor
SatuNusantara,KorindoGrupIndonesiaSumbangkan50.000BibitPohonuntukTimorLeste,August2015,http://bit.ly/1Xq1iSYHarianTerbit,KomitmenKorindodanBudiasiTerhadapPelestarianLingkungan,25February2015,http://bit.ly/22kuGLbIndonesianJurnal,EksisdiBisnis,KorindojugaConcerndiBidangSosial,Lingkungan,Pendidikan,31March2015,http://bit.ly/25bJZYg
48 DutaWisata,KORINDOdanKOICAPerkuatLayananKesehatanMasyarakatPapua,24February2016,http://bit.ly/296fXir49 Wilmar,WilmarInternationalAnnouncesPolicytoProtectForestsandCommunities,5December2013,http://bit.ly/IOviVF
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MusimMasGroup,SustainabilityPolicy,December2014,http://bit.ly/1vyEi9C51 UnitedNations,InternationalLabourOrganization,ConventionsandRecommendations,http://bit.ly/1FiYJYd52 UnitedNations,OfficeoftheHighCommissionerforHumanRights(OHCHR),UNGuidingprinciplesonbusinessandhuman
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MusimMas,Supplychainmap,AgroMakmurRaya,Bitung,http://bit.ly/29likNu59 WilmarInternational,Supplychainmap,http://bit.ly/1UXR0t3
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60 ADM,SustainabilityProgressTracker,PalmOil,SupplyChainMap,http://bit.ly/1UEoA7561 IOILodersCroklaan,Takingresponsibility,Listofmills,http://bit.ly/1O2ykXn(accessrequestneeded;accessedon12May
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http://bit.ly/1QXuadP64 SemutNews,TakAdaHGU,KegiatanPT.KorindoIlegal,15February2016,http://bit.ly/27gajCD65 SemutNews,TutupAksesAirBersih,WalhiPolisikanKorindo,11May2016,http://bit.ly/1WrMxAz66 MalutPost,WargaGaneTolakHGUPTKorindo,19May2016,http://bit.ly/1TEi4v1
WalhiandTuKIndonesia,SiaranPers:HentikanPenerbitanHGUPTKorindoGroupdiGane,MalukuUtara,26May2016,http://bit.ly/28VUREV
67 MalutPost,KorindoTebangKayudiSumberMataAir,11August2016,http://bit.ly/2bvylDdKoranRadarHalmahera,PTKorindoingkarkesepakatanbersamawarga,9August2016,http://bit.ly/2aWI0Aa
68 Landsat8imageryfor21to29March2016and30Aprilto8May2016.69 KabarPulau,HutanGaneBaratSelatanTerbakar,15September2015,http://bit.ly/1QZML9d70 SouthKoreanweeklymagazineSisaIN,IsaKoreancorporationthearsonistoftropicalrainforestfires?(translatedfrom
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peopleinPapua,acasestudyfromBovenDigoelDistrict,2014,http://bit.ly/1Ow7b8I76 CenterforInternationalForestryResearch(CIFOR),Workingpaper,Theimpactsofoilpalmplantationsonforestsand
peopleinPapua,acasestudyfromBovenDigoelDistrict,2014,http://bit.ly/1Ow7b8I77 ComparisonofSentinel-2satelliteimagefor11May2016withtheIndonesianMinistryofForestryforestcovermapsfor
2011.78 ComparisonofLandsatimagerywiththeIndonesianMinistryofForestryforestcovermapsfor2009.79 MinistryofEnvironmentandForestry,Progressinreleasingforestland,May2015,http://bit.ly/1R5haD580 SouthKoreanweeklymagazineSisaIN,Koreancompanyrejectedbecauseof'environmentaldegradation',(translatedfrom
Koreanlanguage),8June2016,http://bit.ly/28MJd0u81 DaewooInternational,DaewooInt’ltoProducePalmOilinIndonesia,8September2011.82 NorgesBankInvestmentManagement,DecisiononexclusionofcompaniesfromtheGovernmentPensionFundGlobal,17
August2015,http://bit.ly/1ESb7NyCouncilonEthicsfortheNorwegianGovernmentPensionFundGlobal,Recommendations2014and2015onDaewooInternationalCorporation,POSCO,GentingBerhadandIJMCorporationBerhad,http://bit.ly/1USLCoF
83 TheGovernmentPensionFundGlobal,Reportonresponsibleinvestments,5February2015,page72,http://bit.ly/1vZpeBW
84 AwasMIFEE,Meraukeburns,butweretheplantationstoblame?,20November2015,http://bit.ly/28LFIFf85 ComparisonofLandsat7imageryfor8Mayto9June2016withIndonesianMinistryofForestryforestcovermapsfor2011.86 Korindo,AboutChairman,http://bit.ly/1TSxXh987 PanamaOffshoreLeaks,Eun-HoSeung,http://bit.ly/1sqlGIe
PanamaOffshoreLeaks,SeungEunHo,http://bit.ly/1VxVFlw88 DongwhaEnterprise,InMemoryofFounderSeungSang-bae,http://bit.ly/1Ou0h5r89 Dongwha,HistoryofDongwha,http://bit.ly/1Xs2g1m
SamsungEconomicResearchInstitute,Asia'sBusinessMoguls:Korindo’sIntegrityDrivesIttoSuccess,13August2007,http://bit.ly/1R2pxPX
90 Bloomberg,CompanyOverviewofKorindoGroupPT,http://bloom.bg/251AZZg91 NotaryactsoilpalmplantationcompaniesKorindo.
MinistryofEnergyandMineralResources,DirectorateGeneralofOilandGas,KorindoHeavyIndustry,2016,http://bit.ly/1XpjLyY
92 KoreanStockExchange(KRX),DongwhaEnterprise,http://bit.ly/1Tc0Hoc93 DongwhaEnterprises,Annualreport2015,30March2016,page13,http://bit.ly/1Os9d0f
Exchange-Rates.org,USDollars(USD)toKoreanWon(KRW)exchangeratefor31December2015,1USD=1,180.21KRW,http://bit.ly/1ThnrAi
94 DongwhaEnterprise,Business,http://bit.ly/1ZSO4x7DongwhaEnterprises,Annualreport2015,30March2016,http://bit.ly/1Os9d0f
95 DongwhaEnterprises,Annualreport2015,30March2016,page284,http://bit.ly/1Os9d0f96 Bloomberg,CompanyOverviewofKorindoGroupPT,http://bloom.bg/28MXZnR97 WebsiteKorindo,AffiliatedCompanies,http://bit.ly/1XbmPP398 ITTO,Revivingtropicalplywood,May2004,http://bit.ly/20hZxqg
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99 TonnesofplywoodexportedbyIndonesiadeclined30%intheperiod2003-2014.Source:InternationalTradeCenter(ITC),
HScode4412group,plywood,veneeredpanelsandsimilarlaminatedwood.BasedonUNComtradestatistics,http://bit.ly/1zeXtXj
100 InternationalTradeCenter(ITC),HScode4412group,plywood,veneeredpanelsandsimilarlaminatedwood.BasedonUNComtradestatistics,http://bit.ly/1zeXtXj
101 PTKorindoAriabimaSari.MutuHijauIndonesia,ResumeHasilVerifikasi,PTKorindoAriabimaSari,2016,http://bit.ly/2b7Kccx.Mutucertificationinternational,VerifikasiLegalitasKayuPTKorindoAbadi,3December2015,http://bit.ly/1WFnJVM.Mutucertificationinternational,VerifikasiLegalitasKayu,PTBalikpapanForestIndustries,1April2016,http://bit.ly/28UxNcA
102 Korindo,Website,Plywoodproducts,2010,http://bit.ly/1U6Ldz5
103 KorindoWebsite,AsikiDivision,http://bit.ly/1sME2DR104 PTAyamaruSertifikasi,PerformanceassessmentPengelolaanHutanProduksiLestari(PHPL),PTTunasTimberLestari,
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http://bit.ly/1VcXfsZLGInternationalCorp,Annualreport2013,7March2014,http://bit.ly/1TQUjDgLGInternational,LGIEntersIndustrialForestationBusinessInIndonesia,30September2009,http://bit.ly/1WZNlMt
109 PTAyamaruSertifikasi,PerformanceassessmentPengelolaanHutanProduksiLestari(PHPL),PTBalikpapanWanaLestari,March2016,http://bit.ly/1TRa8nt
110 Mutucertificationinternational,VerifikasiLegalitasKayu,PTBalikpapanForestIndustries,1April2016,http://bit.ly/28UxNcA
111 CiputraNews,BalikpapanForestIndustriesTutupMulai26Desember,21December2012,http://bit.ly/1Tt6iDKProKaltim,InginEksis,KayuLapisHarusEfisienKamis,2January2014,http://bit.ly/25esTwm
112 PTEqualityIndonesia,VerifikasiLegalitasKayu(VLK),PTTrisetiaIntiga,18February2015,http://bit.ly/1TnG82QPTEqualityIndonesia,DirectoryCustomerCertified(VLK),http://bit.ly/27Gnlte
113 PTEqualityIndonesia,PerformanceassessmentPengelolaanHutanProduksiLestari(PHPL),PTTrisetiaIntiga,16March2016,http://bit.ly/2avcA3OPTEqualityIndonesia,VerifikasiLegalitasKayu(VLK),PTTrisetiaIntiga,18Februari2015,http://bit.ly/1TnG82Q
114 Mutucertificationinternational,VerifikasiLegalitasKayu,PTKorindoAriabimaSari,12March2015,http://bit.ly/1XnISC8115 MutuHijauIndonesia,ResumeHasilVerifikasi,2016,http://bit.ly/2b7Kccx116 AlamatKantorIndonesia.com,PTKorindoAriabimaSari,10September2013,http://bit.ly/1rYGDtv117 BorneoNews,PTKorindoMelunak,PekerjaBatalMogokMassal,26February2016,http://bit.ly/23cDotT118HarianUmumTabengan,GubernurKaltengPeringatkanPTKorindo,2August2016,http://bit.ly/2aFqJ0V119 ProKaltim,InginEksis,KayuLapisHarusEfisienKamis,2January2014,http://bit.ly/25esTwm
BorneoNews,PTKorindoMelunak,PekerjaBatalMogokMassal,26February2016,http://bit.ly/23cDotTPapuaPos,OlahHutanDenganSistemHPH,SerapSekitar4000Karyawan,undated(likelyolderthan2013),http://bit.ly/1RqjLb2
120 TranscontinentalIndentingCo.,Korindo,http://bit.ly/1TRN9Zz121 GulfCooperationCouncil(GCC).ItsmemberstatesareBahrain,Kuwait,Oman,Qatar,SaudiArabia,andtheUnitedArab
Emirates.122 ArabianBusiness,WoodWorking,18April2009,http://bit.ly/1WcGsr3123 Mutucertificationinternational,PerformanceassessmentPengelolaanHutanProduksiLestari(PHPL),PTKorintigaHutani,
12February2016,http://bit.ly/27Gqyt0124 Mutucertificationinternational,VerifikasiLegalitasKayu(VLK),PTKorintigaHutani,September2015,http://bit.ly/1XDX62v125 Marubeni,AnnualReport2015,page185,http://bit.ly/1qy67wz
FSC,CertificatedataPTTanjungenimLestariPulpandPaper,http://bit.ly/1RcJfsf126 SGS,Controlledwoodcertificationreport,PTKorintigaHutani,28August2014,page27,http://bit.ly/25d8xUl127 OjiHoldingsCorporation,NoticeRegardingLossonStockEvaluationofSubsidiariesandAffiliatesandDifferencesbetween
theForecastsandtheResultsfortheYearendedMarch2016,13May2016,http://bit.ly/1sq18PG128 OjiHoldingsCorporation,OverseasActivities,http://bit.ly/1TXxQyf
AsianLegalBusiness,September2015,page25,http://bit.ly/27ycbqq129 GlobalWood,March2014,http://bit.ly/1sxLRMK
SuryaKarya,DPD:InvestasidiDaerahSejahterakanRakyat,26July2013,http://bit.ly/1Wj6wRA130 Korindo,presentation,KorindoplantstheGreen,September2013,http://bit.ly/1OSJaQc131 Mutucertificationinternational,VerifikasiLegalitasKayu,PTBelantaraSubur,29July2015,http://bit.ly/1RdASwr132 BeritaPapua,PT.KorindodimintaberinvestasidiPapua,7September2015,http://bit.ly/28BP1QE
AntaraNews,KorindomintalahanujicobadiPapua,4September2015,http://bit.ly/1WMDSIz
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133 Korindo,PaperBusiness,http://bit.ly/1WzZSqj
AzbilCorporation,PTAspexKumbong,2016,http://bit.ly/22dmU5QPapermart,DrumsandDIPsforimprovednews,15April2013,http://bit.ly/1OuMNM3
134 Liputan,TujuhJamSebelumSuratKabarTerbit,May2015,http://bit.ly/1sqV36iKompas,PabrikKertasTerpaksaTutup,31March2008,http://bit.ly/1rOuerSKompasGramedia,Newspaper,http://bit.ly/28QjxNT
135 OceanicHolding,PaperImport,NewsprintGrade,http://bit.ly/1TRw15H136 i-Graphix.com,NewsprintalternativeofferedbyOceanic,15January2011,http://bit.ly/1ZW8bKG137 Korindo,PaperBusiness,http://bit.ly/1WzZSqj
Andritz,AndritztosupplystockpreparationequipmenttoP.T.AspexKumbong,Indonesia,10August2010,http://bit.ly/1ZW9ppw
138 ForestStewardshipCouncil,CertificatePTAspexKumbong,http://bit.ly/1Tves1F139 KousaInternational,Paper,http://bit.ly/1Tj9GRw
FredricksCommunications,KousaInternational,http://bit.ly/1Th9xiP140 www.tradesparq.com,ascheckedon23May2016.141 KoreaTimes,Korindoheadprobedforallegedtaxevasion,6October2014,http://bit.ly/1TV5wiR142 Korea’sNationalTaxService,April2016,http://bit.ly/1Vi5KD0(inKorean)143 WebsiteOtoritasJasaKeuangan(OJK,FinancialServicesAuthority),PTNongHyupKorindoSecuritiesIndonesia,
http://bit.ly/1TxasMd144 PTNongHyupKorindoSecuritiesIndonesia,Products,http://bit.ly/22iWbVE145 TheKoreaTimes,NongHyuptakes2ndplacebyassets,14April2015,http://bit.ly/1svVifB146 MeritzKorindoInsurance,Aboutus,http://bit.ly/1sJlLHr
MeritzKorindoInsurance,FinancialStatements2015,http://bit.ly/1YKXF8V147 WebsiteKorindo,AffiliatedCompanies,http://bit.ly/1XbmPP3148 KorindoWind,Website,http://bit.ly/1TrA1Lb
KorindoWind,Equippedforprecision,http://bit.ly/22jSG10149 www.tradesparq.com,ascheckedon23May2016.150 DailyAdvance,Windenergyblowsintoarea--piecebymammothpiece,26May2016,http://bit.ly/1UhUzbo151 http://portexaminer.com152 KorindoWind,FrequentlyAskedQuestions,http://bit.ly/1Ps6v68
KorindoWind,YouTubevideo,KorindoHeavyIndustry-WindTowerDivision,May2016,http://bit.ly/28QhYjV153 MinistryofEnergyandMineralResources,DirectorateGeneralofOilandGas,KorindoHeavyIndustry,2016,
http://bit.ly/1XpjLyYMinistryofEnergyandMineralResources,DirectorateGeneralofOilandGas,KorindoHeavyIndustry,2012,http://bit.ly/27Mqzvl
154 MinistryofEnergyandMineralResources,DirectorateGeneralofOilandGas,KorindoHeavyIndustry,2016,http://bit.ly/1XpjLyYMinistryofEnergyandMineralResources,DirectorateGeneralofOilandGas,KorindoHeavyIndustry,2012,http://bit.ly/27Mqzvl
155 SGPBusiness(businessandcompanydirectoryinSingapore),KorindoEnergy(Singapore)PteLtd,http://bit.ly/1swxMPF156 KorindoEnergy,Brochure,http://bit.ly/27MD9eg157 HyundaiMotorCompany,Webmagazine,spring2007,http://bit.ly/1OGAoze158 TheKoreaHerald,HyundaiendsbussupplycontractwithKorindo,26February2012,http://bit.ly/1NEAhtl
Inilah,KorindoTuduhHyundaiPutusKontrakSepihak.16March2012,http://bit.ly/1YNuXnK159 Korindo,Automotivecomponents,motorcyclecomponents,industrialparts,http://bit.ly/1swyBrQ160 AntaraNews,Bakrieoptimalkanpabrikkomponeneks-Korindo,30April2013,http://bit.ly/1YNCQd9161 DetikNews,JaksaTahanDirutKorindoMotorsterkaitKasusKorupsiTransJ2013,26March2015,http://bit.ly/1TDHpXd
Baranews,MAPerberatVonisUdar,DakwaanTindakPidanaPencucianUangJugaTerbuktiKamis,24March2016,http://bit.ly/27PCubUTempo,TransjakartaLunasiBusSisaPengadaanEraUdarPristono,23December2015,http://bit.ly/1TxDA4LKomisiPengawasPersainganUsaha,PutusanPerkaraNomor15/KPPU-I/2014,http://bit.ly/1s3RwdJ
162 Korindo,SpecialVehicles,http://bit.ly/1ORAk5g163 MinerayMetalúrgicadelBoleo,S.A.P.I.deC.V.,U.S.$120,000,0002.875%GuaranteedNotesdue2019(Unconditionally
andIrrevocablyGuaranteedbyKoreaResourcesCorporation),24June2015,http://bit.ly/1W9IpVcYosefardi,CoalJournal:SouthKoreanPlayers,23September2014,http://bit.ly/22kcS2R
164 Korindo,RealEstateManagementBusiness,http://bit.ly/24ijrSXDaftarAlamatLengkapPerusahaan,PTDongbangDevelopment,http://bit.ly/25A6Osi
165 WartaBuana,SACIVA,AplikasiYangMampuSimpanRibuanKartuNama,14May2016,http://bit.ly/1TXBPzfDutaWisata,KorindoGroupSemarakanDuaTahunForwanBerbagiKasih,15May2016,http://bit.ly/1TXDJyn
166 AlamatKantorIndonesia.com,PTSeparindoIndustry,5August2015,http://bit.ly/24UjWF3167 CapitalProvinceofJakarta,IzinUsahaJasaKonstruksiPTKorindoKonstruksi,8June2015,http://bit.ly/28T8IK7