Bumitama Agri Ltd: GY Plantation

Friends of the Earth in November 2013, published the report ‘Commodity Crimes‘ showing ongoing land clearing since April 2013 in LSM plantation, and new evidence of palm oil production on GY Plantation under Bumitama’s management without legal permits, thus producing illegal palm oil.1 According to the report, Bumitama entered into deals with illegal plantations knowingly. The company acknowledged ahead of its 2012 initial public offering that managing and harvesting palm fruits from a plantation operating without a license was part of its expansion plan. The operation of unlicensed palm oil plantations results in deforestation and habitat loss.

According to Friends of the Earth in February 2014, Bumitama admitted that GY Plantation did not have the required permits, but they refused to release GY Plantation from their holdings or cease production within the concession.2

In August 2014, Bumitama ended the management contract with GY due to public pressure and has committed to further sustainability criteria, however these commitments will need to be continuously monitored to ensure compliance. 

  1.  https://www.foeeurope.org/commodity-crimes-211113 []
  2.  http://foeeurope.org/sites/default/files/publications/foee_bumitama_

    factsheet_march2014_0.pdf []

Case location
West Kalimantan, Indonesia
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Affected topics
  • Human and Labour Rights
  • Environmental and Climate protection
Directly and indirectly (through shareholding) involved companies Indirect investors through shareholding

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