Permata Group
Permata Group facility
GR03-2019-01
Closed

PT Sumur Pandanwangi & PT Uni Primacom

May 2019
Peat DevelopmentDeforestationAffiliation

The Allegation

PT Asam Jawa was alleged to be involved in the development of peatland through PT Sumur Pandanwangi. A related report also documented deforestation at PT Uni Primacom, an affiliated company.

Timeline

  1. Mar 2019

    Permata was informed by our customer that PT Asam Jawa through its subsidiary PT. Sumur Pandanwangi developed peat area. Permata is linked to this case through PT Asam Jawa, as it allegedly affiliated with PT Sumur Pandanwangi. Permata put a hold on sourcing from PT Asam Jawa and is monitoring further development.

  2. Mar 2021

    Mighty Earth Rapid Response Report 33 stated that there is deforestation at PT Uni Primacom, which is also part of the Asam Jawa affiliated companies. Additionally, the report also illustrate the ownership structure of the Asam Jawa affiliated companies, indicating that PT Panca Bumisari Utama owned 75 percent of PT Uni Primacom and PT Sumur Pandanwangi, also 32.5 percent of PT Asam Jawa. According to RSPO’s definition, a beneficial owner must hold a controlling ownership interest of 25% or more in an entity. Wedhia, Ariyati, Budhi, Enny, and Hardini each own a 20% stake in PT Panca Bumisari Utama, which falls short of the required threshold for controlling ownership. PT Asam Jawa is not considered a subsidiary of PT Panca Bumisari Utama because PT Panca Bumisari Utama holds only 32.5% of Asam Jawa, which is below the RSPO's 50% shareholding threshold for parent companies. Therefore, Asam Jawa does not qualify as a subsidiary of PT Panca Bumisari Utama. Conversely, PT Panca Bumisari Utama owns 75% of both PT Uni Primacom and PT Sumur Pandanwangi, which exceeds the 50% shareholding threshold required for subsidiaries. Based on these ownership percentages, PT Uni Primacom and PT Sumur Pandanwangi should not be categorized as subsidiaries of PT Asam Jawa according to RSPO guidelines. Therefore this case is considered close

Current Status / Resolution

Considered closed.

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