Korindo Group – Green Tigers Index Rankings

2020 PALM OIL SCORE

53

Korindo Group, whose landbank is 121,000 ha, is a private Indonesian palm oil, rubber, and timber company owned by the South Korean Seung family.

Between 2013 and 2016, Korindo cleared 30,000 ha of forest in West Papua and North Maluku, where it is the area’s largest oil palm plantation developer. Approximately 12,000 ha of this amount were primary forest. Extensive forest fires and land tenure disagreements on PT Gelora Mandiri Membangun in North Maluku constituted additional NDPE policy non-compliance by the company.

In response, Korindo has been largely excluded from the NDPE market, with companies such as Wilmar, Musim Mas, Bunge Loders Croklaan, and Nestlé publicly committing to suspending Korindo from their supply chains. Subsequently, Korindo was suspended by multiple NDPE traders after evidence of deforestation and illegal burning on its concessions.

Faced with restricted NDPE market access, the company is now looking at business opportunities in the regional biofuel market, which has begun to serve as a replacement market for oil palm growers suspended from the NDPE market.

In 2020, Korindo came under greater scrutiny by investigative journalists and human rights groups for bribes connected to its expansion in Papua. Because of Korindo’s land clearing and possible human rights violations, NGOs have pressured its biggest lender, Bank Negara Indonesia, to drop its financing of the company.

Korindo is not a member of the RSPO.

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.

on December 17 | by

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