Mr Mahmudin (Independent Smallholder)
The Allegation
RAN alleged that an illegal palm oil plantation controlled by independent smallholder Mr Mahmudin was located within the Rawa Singkil Wildlife Reserve (RSWR), with fruit sold through intermediaries into Permata's supply chain.
Timeline
20 Sep 2022
RAN released a report titled “Carbon Bomb Scandals – Big Brands Driving Climate Disaster For Palm Oil” indicating that an illegal palm oil plantation controlled by Mr Mahmudin was found to be located inside the boundary of Rawa Singkil Wildlife Reserve (RSWR) Through a collection point facility owned by Mr Mahmudin, the oil palm fruits were sold to CV. Buana Indah (broker) then to PT. Runding Putra Persada (RPP)
21 Sep 2022
Since Mr Mahmudin does not supply directly to Permata, Permata has engaged with PT. RPP to help seek clarification in regards to the grievance
28 Sep 2022
PT. RPP has helped facilitate Permata's communication with Mr Mahmudin and has conducted a field visit to Mr Mahmudin's plantation They confirmed Mr Mahmudin already has a land certificate (Sertifikat Hak Milik) issued in 2017 The said land certificate consist of 6 blocks namely Blok A, B, C, D, E & F amounting to around 29 hectares, which are all located outside of RSWR boundaries
5 Oct 2022
Permata conducted an internal investigation and review PT RPP’s verification documents which consist of Mr Mahmudin land certificates along with the coordinates boundary After analyzing the said documents and by conducting a spatial analysis, we can confirm Mr Mahmudin's plantation is indeed outside of RSWR boundaries
11 Nov 2022
Despite this, field verification confirmed that a portion of Mr Mahmudin's land had crossed inside the RWSR boundaries Permata Group has halted any purchases from PT. RPP while monitoring for RPP's action plan The action plan consists of : a. engaging with Mr Mahmuddin to release the overlapped land with the RSWR to the goverment b. a written commitment from PT.RPP, prohibiting the sourcing of FFB from protected areas, including Leuser Ecosystem and Rawa Singkil Wildlife Reserve c. Ensure FFB sources is 100% Traceable to Plantation
13 Jul 2023
Permata Group dan PT. RPP suspended Mr. Mahmuddin from its supply chain as a result of his rejection of the action plan Prior to that, CV Buana Indah has also excluded Mr Mahmuddin from its supply chain, effective immediately on 23 June 2023
Current Status / Resolution
Based on the findings and response above, we consider this case closed. Following this, Mr Mahmudin has suspended from Permata Group's supply chain after Mr Mahmudin did not accept the corrective action plan.
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