Astra Agro communicates transparently in response to every report on the Company’s official website, grievance mechanism, email, and other platforms. Hence, it is unexpected that there are still unconfirmed reports on alleged deforestation, human rights violations, and environmental destruction in the Company’s business supply chain.
By its commitment, Astra Agro openly accepts input, criticism, and suggestions needed to run a sustainable and responsible business process. Astra Agro has also provided a grievance mechanism that can be accessed publicly through our website to confirm any issues related to the Company.
Following stakeholder recommendations, Astra Agro has appointed EcoNusantara (ENS) as an independent assessor with the capability and objectivity to conduct a review of all allegations and issues as written in the Friends of Earth (FoE) and Wahana Lingkungan Hidup (WALHI) reports in September 2022. During the verification process, ENS invited the parties, but only WALHI did not fulfil the attendance confirmation. The EcoNusantara verification results can be accessed through the following [link].
Regardless of the results of Econusantara’s verification and without confirmation, in June 2024, FOE and WALHI again published excerpts of the Bengkulu Genesis Foundation report that did not match the data and facts on the ground. As is known, previously Yayasan Genesis Bengkulu published a revised report in June 2024. Against the report, Astra Agro has responded to our official website, which can be accessed through the following [link].
Astra Agro remains consistent in emphasizing that:
- Astra Agro and all its subsidiaries operate by applicable laws and policies in Indonesia.
- Astra Agro’s Sustainability Policy was formally implemented in 2015, and it has not undertaken any expansion or new land clearing since then.
Astra Agro has identified limitations in the data sources used, both in the FoE and WALHI Reports as well as in the Yayasan Genesis Bengkulu Report, which resulted in inaccuracy and information that does not reflect the actual conditions:
- Yayasan Genesis Bengkulu only utilizes the Atlas Nusantara Map and land parcel maps from the Indonesian National Land and Spatial Planning Agency (ATR/BPN) as data sources for the deforestation research in forest areas alleged by Astra Agro.
- Yayasan Genesis Bengkulu also explained that government data on land use rights (HGU) is private.
The two statements above give the impression that Yayasan Genesis Bengkulu does not use data on the HGU / location permits of Astra Agro subsidiaries that the Indonesian government legally grants. HGU data is fundamental for assessing overlapping forest areas with HGU / oil palm plantation business licenses. Without verified HGU/license location data, study results can be misleading.
The indications of the use of data that lead to misleading conclusions are described as follows:
- Yayasan Genesis Bengkulu’s reference data shows that the boundaries of the plantation area are different from the HGU/license location of Astra Agro’s subsidiaries.
- Yayasan Genesis Bengkulu reference data presents that the analyzed plantation area is in two different regencies from the HGU/license location of Astra Agro’s subsidiaries.
- Yayasan Genesis Bengkulu reference data shows that the plantation area is more significant than Astra Agro’s subsidiaries’ HGU/license location.
Overlapping Forest Areas versus Oil Palm Plantations Suspected of Deforestation
Astra Agro also identified that the Yayasan Genesis Bengkulu report should have examined evolved historical regulations, particularly regarding national spatial planning and its implications for the overlap between HGU and Forest Estate. HGU itself could be defined as a legal product. The case of overlapping HGU and Forest Estate interpreted as a form of deforestation in the Yayasan Genesis Bengkulu Study Report may provide misleading perceptions to the public. The issue of overlapping forest areas and HGU/oil palm plantation licenses has been regulated in the UUCK (Job Creation Law).
It should be noted that regulatory changes always occur over time. In some cases, particularly when carrying out the regional spatial planning program, the government has repeatedly revised regulations related to spatial planning, as explained in our response statement, which can be accessed through the following [link]. Based on the regulations listed in the response statement report, the Indonesian Ministry of Forestry and Environment has been redesignating forest areas in stages. Thus, there have been
many cases of returning part of the HGU area to a forest area, even though the HGU was obtained long before. A decree on Forest Area Designation was issued. Astra Agro’s HGU data comparison to forest area designation can be seen in response statement report through the following [link].
Replanting activities are misinterpreted as deforestation.
Yayasan Genesis Bengkulu reports on deforestation within forest areas in 15 concessions of Astra Agro subsidiaries between 2015 and 2023. This report is highly inaccurate. Since the Sustainability Policy was established in 2015, Astra Agro has never cleared any land for new development.
In the development of plantations, the Company has carried out all processes under laws and regulations, including implementing land acquisition involving stakeholders and communities, by first conducting socialization to obtain mutual agreement, which, in current terminology, is known as FPIC.
For further information :
Fenny A. Sofyan
Vice President of Investor Relations & Public Affairs
