PT Cemerlang Abadi
The Allegation
RAN reported that PT Cemerlang Abadi resumed clearance of forests and peatland in the Leuser Ecosystem from September 2021 to at least February 2022, including 24 acres of secondary forest and 740 acres of young regenerating forest.
Timeline
11 Aug 2022
Permata received information from RAN's report titled "Leuser Watch: New Rogue Palm Oil Producer Found Destroying Rainforests and Peatlands in the Leuser Ecosystem" indicating PT. Cemerlang Abadi has resumed clearance of forests and peatland areas since September 2021 until at least February 2022 The report stated PT. CA allegedly cleared 24 acres of secondary forests, as well as a further 740 acres of young regenerating forests According to analysis by Earthworm Foundation, there is a possible connection between PT. CA and palm oil mill, PT. Raja Marga (RM), a direct supplier of Permata
12 Aug 2022
Since PT. CA is not direct Permata supplier but supplied to Permata through PT. RM, Permata has engaged with PT. RM to seek clarification
28 Aug 2022
PT. Raja Marga (RM) has communicated with PT. CA and clarified that the alleged land clearing was actually a rehabilitation/replanting of a previously established palm plantation PT CA stated that the initial land clearing dan planting started in 1990 and ran through 1995. However due to the poor management, flood, fire, pest attacks and political unrest (GAM rebellion), many of the palms died and PT CA is unable to replant them again due to the political unrests and funding availability. It is only now that PT CA is able to rehabilitate and replant the land. Permata has conducted an internal review of the land history through satellite imagery provided by Google Earth engine and found that the land clearing indeed started in 1992 and by 1994 all of the land of interest has already been cleared and planted with palms Since the land use change occurred in 1990-1995, Permata concluded the reestablishment of palm plantation in the area is not a new development of palm plantation After a deliberate investigation, Permata also noted that PT CA is proposing for a HGU (cultivating rights) renewal for its concession of 4,847 ha. However, BPN's final decision to renew PT CA's HGU was reducted to only 2,002 ha. Due to this discovery, Permata deemed PT CA to be lacking in legalities compliance and decided to suspend PT CA from Permata's supply chain
Current Status / Resolution
Based on the findings and response above, we consider this case closed. Following this, Permata Group has also placed PT CA on its suspension list due to legality compliance gaps.
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