In 2022, three subsidiaries of Astra Agro Lestari Tbk (Astra Agro)—namely, PT Lestari Tani Teladan (LTT), PT Mamuang, and PT Agro Nusa Abadi (ANA)—were the subject of complaints filed by Friends of the Earth (FoE) US and Wahana Lingkungan Hidup Indonesia (Walhi). These complaints pertained to allegations of land grabbing and the criminalization of farmers, thereby raising significant concerns among relevant stakeholders.
The inquiry originated from a report prepared by EcoNusantara (ENS), an independent consulting agency retained by Procter and Gamble (P&G) in the same year. P&G engaged ENS to evaluate the complaints and to assess the evidence presented by the community in comparison with the documentation held by the company.
The ENS report indicates that the verification process is considered insufficient, necessitating a factual reconciliation between the community and the company within a more defined framework. Through the collaborative engagement of all parties involved, it is possible to identify the root causes of the issues and reach a consensus on viable solutions.
On March 31, 2023, Astra Agro appointed EcoNusantara (ENS) as a third party to conduct a comprehensive verification of various allegations concerning the practices of three subsidiaries of Astra Agro operating in Central Sulawesi and West Sulawesi. These allegations have been raised by Walhi and Friends of the Earth United States (FoE US).
From March to September 2023, ENS has undertaken a comprehensive verification of the complaint to uncover the actual issues and the factual circumstances it.
Astra Agro stated that the main objective of this comprehensive verification is to thoroughly validate the complaints against its three subsidiaries and provide comprehensive problem-solving recommendations to the relevant parties.
Following the outcomes of the verification process, ENS released a report that has been publicly accessible since November 27, 2023. This report addresses two primary areas: a comprehensive analysis and an examination of the complaints lodged against PT LTT, PT Mamuang, and PT ANA.
The report additionally presents a set of recommendations intended for consideration by all relevant parties, including Astra Agro, as part of the complaint resolution process.
Following extensive consultations with stakeholders and the evaluation of these recommendations, Astra Agro, in collaboration with ENS, developed a three-year action plan specifically for its three subsidiaries.
Subsequently, in July 2024, Astra Agro and ENS published a Three-Year Action Plan as a subsequent step related to the Third-Party Verification Report.
