Bumitama Agri – Green Tigers Index Rankings

2020 PALM OIL SCORE

62

Bumitama Agri is a rapidly growing palm oil producer with 232,837 ha of oil palm plantations. It  is 52 percent majority-owned by the Hariyanto family and 32 percent owned by the Lee family’s IOI Corporation.

Bumitama has repeatedly been found to be deforesting land, including on orangutan habitat, as well as the destruction of peatlands. As a result, it has drawn increased scrutiny from NGOs and consumer companies, as it has committed deforestation and illegal operations across many of its plantations. For instance, the company’s Gemilang Makmur Subur plantation in Central Kalimantan was found to be operating without any of the critically required national permits in violation of Indonesia’s Forestry Act, the Environmental Act, and the Plantation Act. The company has used an elaborate scheme to mask responsibility for much of its deforestation activity. Numerous complaints filed with the Roundtable on Sustainable Palm Oil accuse Bumitama of land-grabbing in multiple communities. It in fact is one of the companies that has faced the highest number of complaints. Bumitama has had to contend with fires on its concessions in West Kalimantan. Its exposure to independent smallholders makes it vulnerable to connections to land clearing.

The company has had an NDPE policy since 2015 and it has also used funds from its CSR budgets for projects that help communities with allocations for social forestry.

The firm’s majority shareholder is Fortune Holdings Ltd, a private company based in Singapore. Vanguard and BlackRock are among the top ten shareholders, as is activist CalPERs.

See all of the rankings of major palm oil and soy companies on their adherence to forest conservation requirements on the Green Tiger and Green Jaguar index.