- A publication by RAN (Rainforest Action Network) and TuK Indonesia (Tranformasi untuk Indonesia) titled “Perilous: Korindo, Land Grabbing & Banks” (12 November 2018)
- RAN and TuK Indonesia made several allegations against Korindo:
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- Evading tax by using shell companies in tax haven countries and making company’s financial report containing inaccurate information.
- Land clearing by using fire
- Using intimidation and violence against the residents, and land grabbing without any prior agreement or engagement with the residents.
- Developing land before issuing permits
- PT Gelora Mandiri Membangun (GMM) expansion on steep slopes with high risks of erosion and fertilizer runoff
- Clearing HCV (High Carbon Value)/HCS (High Carbon Stock) forests, violating the NDPE policies (No Deforestation, No Expansion on Peat, No Exploitation), violating the RSPO principles (Roundtable on Sustainable Palm Oil), and violating the FSC Policy for Association (Forest Stewardship Council).
- On November 12, 2018, TuK Indonesia staged a demonstration in front of Korindo’s Head Office without a permit or prior notice.
- On June 22, August 29, and November 2, 2018, Korindo gave its clarification to RAN through emails and letters.
- On November 12, 2018, Korindo posted a press release containing clarifications on its official website:
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- Korindo’s business operation in South Halmahera have contributed to the regional development of North Maluku Province in accordance with the Indonesian Government’s program to develop the region.
- Korindo never uses illegal timber. All timbers are SVLK (Timber Legality Assurance System) certified in accordance with the Regulation of the Minister of Environment and Forestry number P.30/Menlhk/Setjen/PHPL.3/3/2016 article 9(1), which states that all timber producers must be SVLK certified in compliance with the SVLK scheme.
- Korindo is committed to respecting and complying with the laws and regulations of Indonesia. Korindo built oil palm plantation in areas designated and approved by the Government of Indonesia and follows the rules of the Indonesian Sustainable Palm Oil
(ISPO). - On February 16, 2016, the South Halmahera Forestry Office stated through a letter number 522.1/110/206 that Korindo did not use fire for land clearing. Korindo clears land mechanically with heavy equipment in ways that cause minimum environmental damage.
- Korindo respects and upholds the residents’ rights by conducting dialogue through forums with the local community, village government, and the related stakeholders prior to the land development. The community and Korindo agreed on the land release, in accordance with the regulations in Indonesia. Korindo never forces, threaten, or uses violence against the community.
- KORINDO Group has never been involved in any questionable practices. Korindo has secured all permits and licenses for its business operations (such as PKH (Use of Forest Area Permit), ILOK (Location Permit), IUP (Utilization License), AMDAL (Environmental Impact Assessment), HGU (Cultivation Rights)) and is eager to demonstrate transparency for its activity and practice.
- In conclusion, the accusations in RAN and TuK Indonesia’s report regarding Korindo’s lack of permits, violations of Indonesian regulations, and violation of human rights are not true.
- Korindo will continue to actively contribute to the community around its operational areas through CSC (Corporate Social Contribution) programs.
- Korindo always upholds the residents’ rights by implementing the FPIC (Free, Prior and Informed Consent) principles.
