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Update on IOI’s statement in response to report and complaint to RSPO by Aidenvironment on PT. SKS, PT. BNS and PT. BSS, Indonesia dated 30 March 2015
10/06/2015Corporate Communications

Update on IOI’s statement in response to report and complaint to RSPO by Aidenvironment on PT. SKS, PT. BNS and PT. BSS, Indonesia dated 30 March 2015

On 15 April 2015, IOI issued a statement stating that its sustainability team is investigating the allegations by Aidenvironment with the assistance of a local consultant firm. The English version of the report by the local consultant firm is now completed and can be viewed here .

As mentioned in the same statement, an RSPO-accredited auditor has already conducted the site investigation in mid-May and the report by the auditor is expected to be completed by end-June 2015.

At this juncture, IOI does not wish to make a final stand on the allegations raised by Aidenvironment until after the publication of the auditor’s report.

Briefly, the five main allegations from the Aidenvironment report are:

  1. The rapid development of PT. BSS resulted in several non-compliance with IOI’s sustainability commitments

  2. HCV site was lost in PT. BSS in 2014

  3. After IOI signed up to the peat restoration project in writing, PT. BSS still cleared all peat forest in the restoration project area

  4. In spite of public policy commitments, IOI continued to deforest in PT. BSS throughout 2014

  5. PT. BNS: illegal forestland occupation

These complaints are found to be unproven and unsubstantiated except for complaint no. (2).

With regard to complaint no. (2), a 4-meter wide canal occupying a total area of 0.9 ha was found to have been constructed in the HCV area. According to IOI’s operational management, the canal was constructed to alleviate flooding which occurred at the upper end of the non-HCV area. IOI will liaise with RSPO in due course on the remediation measure to be taken on the land occupied by the canal.

IOI will continue to provide capacity building and infrastructural support to its employees and contractors to ensure their understanding and compliance with IOI’s sustainability commitments. Surrounding local communities will also be made aware of the conservation areas within IOI’s concession through stakeholder meetings and dissemination of appropriate sustainability information.

 

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