DOCSLIB.ORG

RSPO Sanctions Indofood Agri Subsidiary for Labour Violations | Chain Reaction Research | Sustainability Risk Analysis

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
RSPO Sanctions Indofood Agri Subsidiary for Labour Violations | Chain Reaction Research | Sustainability Risk Analysis 9/8/2020 The Chain: RSPO Sanctions Indofood Agri Subsidiary for Labour Violations | Chain Reaction Research | Sustainability Risk Analysis CHAIN REPORTS EVENTS METHODOLOGY ABOUT PARTNERS SUBSCRIBE Search REPORT TYPES No Categories COMMODITIES Soy Palm Oil Other (Beef, Timber, Coee) The Chain: RSPO GEOGRAPHY Sanctions Indofood Africa Latin America Agri Subsidiary for Southeast Asia Labour Violations ARCHIVES Palm Oil • Southeast Asia November 9, 2018 September 2020 August 2020 The Roundtable on Sustainable Palm Oil (RSPO) has sanctioned Jakarta-based July 2020 PT PP London Sumatra Indonesia Tbk (Lonsom), a subsidiary of Indofood Agri June 2020 Resources (IndoAgri), for labour rights violations by revoking its sustainability May 2020 certificate for selling palm oil and calling for audits at four of the company’s April 2020 sites. This action comes a little over two years aer the Rainforest Action March 2020 Network (RAN), the Indonesian Labour Rights Association (OPPUK), and the February 2020 https://chainreactionresearch.com/the-chain-rspo-sanctions-indofood-agri-subsidiary-for-labour-violations/ 1/4 9/8/2020 The Chain: RSPO Sanctions Indofood Agri Subsidiary for Labour Violations | Chain Reaction Research | Sustainability Risk Analysis International Labour Rights Forum (ILRF) filed a complaint in October 2016 with January 2020 the RSPO on the grounds that Indofood and PepsiCo, one of its customers, December 2019 SUBSCRIBE CviHolAatIeNd labRouErP laOwRsT oSn palEmV oEiNl pTlaSntatiMonEsT. HODOLOGY ABOUT PARTNNEoRvSember 2019 October 2019 While examining IndoAgri facilities, which included one palm oil mill and three September 2019 palm oil estates, the RSPO found more than 20 violations of its standards and August 2019 ten violations of Indonesian labor laws, including gender discrimination, low July 2019 pay and poor safety conditions. Despite these findings, units of Lonsom not June 2019 subject to the complaint are still certified to sell RSPO-certified palm oil, and May 2019 they will be audited within the next three months. April 2019 The Salim Group runs First Pacific, which owns a majority stake in PT Indofood March 2019 Sukses Makmur Tbk (Indofood), Indonesia’s largest food company. The February 2019 company is listed on the Indonesia Stock Exchange. Singapore-listed IndoAgri, January 2019 a vertically integrated palm oil producer, is a subsidiary of Indofood. December 2018 November 2018 Since the initial complaint, RAN, OPPUK and ILRF further exposed IndoAgri’s October 2018 violations in subsequent reports. In February 2017, Chain Reaction Research September 2018 (CRR) showed that 42 percent of IndoAgri’s landbank may be contested due to August 2018 environmental abuses, community conflicts, land tenure risks, or a lack of July 2018 transparent boundaries. In April 2018, CRR partner Aidenvironment updated its June 2018 report of ongoing deforestation at plantation companies linked to the Salim May 2018 Group despite the Indonesian government implementing new regulations, April 2018 finding that 9,534 hectares had been cleared in five years. February 2018 Indofood and its subsidiaries have experienced negative eects from these January 2018 controversies. PepsiCo suspended both direct and indirect purchases of palm December 2017 oil from IndoAgri this year, and Nestlé ended it joint venture with Indofood in November 2017 October 2018. Other buyers such as Hershey’s, Kellogg’s, General Mills, October 2017 Unilever, Mars and Cargill have also cut ties with the company. The Norwegian September 2017 Government Pension Global Fund, the largest sovereign wealth fund in the August 2017 world, divested from Indofood in 2016 because of worries about sustainability July 2017 surrounding palm oil production. June 2017 May 2017 Moving forward, the company faces increasing material, financial and April 2017 reputational risks from its labor practices being exposed. Customer market March 2017 power through NDPE policies and a more active Indonesian government will February 2017 likely increase pressure on Indofood and its subsidiaries. Financial risks will January 2017 https://chainreactionresearch.com/the-chain-rspo-sanctions-indofood-agri-subsidiary-for-labour-violations/ 2/4 9/8/2020 The Chain: RSPO Sanctions Indofood Agri Subsidiary for Labour Violations | Chain Reaction Research | Sustainability Risk Analysis likely persist despite the fact that Indofood, which is vertically integrated, uses December 2016 its palm oil for its own food production and it has a heavy presence in November 2016 SUBSCRIBE CInHdAonINesia. SRaElimPO GRroTuSp comEVpaEnNieTsS still hMavEeT jHoiOntD vOenLtOurGesY withA PBepOsUiCTo, PARTNOEcRtSober 2016 Wilmar and Yum!Brands. Despite halting purchases from IndoAgri, PepsiCo is September 2016 continuing its JV with Indofood, the only producer of PepsiCo products in August 2016 Indonesia. July 2016 June 2016 Banks lending to Indofood will also likely play a major role in influencing the May 2016 company’s actions moving forward. RAN has called on banks to cancel all April 2016 financing to Indofood immediately. Major financiers of Indofood and the wider March 2016 Salim Group include Japan’s three largest banks: Mizuho Financial Group, February 2016 Mitsubishi UFJ Financial Group (MUFG), and SMBC Group, as well as Indonesia’s December 2015 Bank Central Asia and Bank Mandiri. Some banks have already reduced their November 2015 exposure to Indofood. Citigroup, earlier this year, said it is no longer lending to October 2015 IndoAgri and also cancelled an existing loan, while BNP Paribas now only September 2015 maintains a relationship with Indofood’s parent company First August 2015 Pacific. Deutsche Bank has stopped lending to Indofood and the wider Salim July 2015 Group. With more banks using RSPO membership as a benchmark to measure June 2015 companies’ sustainability policies, their decisions will be critical in determining May 2015 whether Indofood sees increasing financial risks from its violations. April 2015 March 2015 February 2015 Indofood, Indonesia, RSPO January 2015 « Bolsonaro’s Presidency to The Chain: Austindo Nusantara December 2014 Increase Deforestation Risk in Brazil Jaya Subsidiary First to Violate New November 2014 RSPO Standards » October 2014 September 2014 August 2014 July 2014 May 2014 April 2014 March 2014 February 2014 December 2013 November 2013 https://chainreactionresearch.com/the-chain-rspo-sanctions-indofood-agri-subsidiary-for-labour-violations/ 3/4 9/8/2020 The Chain: RSPO Sanctions Indofood Agri Subsidiary for Labour Violations | Chain Reaction Research | Sustainability Risk Analysis SUBSCRIBE C© H20A20I CNhain ReaRctEioPn OResReaTrcSh | SustEaiVnaEbNilityT RSisk AnaMlysiEs |T PHrivOacyD POolicLyO | CGooYkie PolicAy BOUT PARTNERS https://chainreactionresearch.com/the-chain-rspo-sanctions-indofood-agri-subsidiary-for-labour-violations/ 4/4.
Load more

Recommended publications
  • Citigroup Cancels Financing of Indofood Over Palm Oil Labor Abuses
    Wednesday| June 19 2019 Citigroup Cancels Financing Of Indofood Over Palm Oil Labor Abuses Major Asian, European banks and US brands still linked to controversial company San Francisco, CA – Citigroup has canceled all financing to Indonesian food giant and agribusiness company Indofood (INDF:IJ) following the company’s ousting from the leading palm oil certification scheme, the Roundtable on Sustainable Palm Oil (RSPO). Indofood’s palm oil subsidiaries were dropped from the RSPO after failing to address over 20 violations of the RSPO standard, as well as 10 violations of Indonesian labor law, both of which were found on Indofood-owned palm oil plantations. Citigroup’s cancellation of $140 million represents the loss of Indofood’s second largest source of funds from a Western bank. However, major Japanese, Indonesian, and European banks, as well as US brands such as Pepsico, continue to do business with Indofood. “We are glad to see Citigroup enforce its policy and cut ties with Indofood, as this company has been flouting Indonesian laws, certification standards and international business norms for far too long,” said Hana Heineken, Senior Campaigner on Responsible Finance with Rainforest Action Network (RAN). “This should send a strong signal to Indofood’s remaining financiers and business partners that Indofood is a bad investment.” The largest food company in Indonesia, Indofood has a market cap of 4 billion USD and is a core company of the Salim Group, which has the second largest oil palm land bank in Indonesia. The RSPO investigation of palm oil plantations operated by Indofood’s subsidiaries was sparked by a complaint against the company, brought by Rainforest Action Network (RAN), International Labor Rights Forum (ILRF) and Indonesian labor rights organization OPPUK in October 2016.
    [Show full text]
  • Palm Oil Sustainability Assessment of Indofood Agri Resources
    Palm oil sustainability assessment of Indofood Agri Resources Commissioned by: September 2015 Colophon Report: Palm oil sustainability assessment of Indofood Agri Resources Commissioned by: Rainforest Foundation Norway, Rainforest Action Network. Authors: Albert ten Kate, Adriani Zakaria. Project number: 3152 Date: September 2015 Cover photo: IndoAgri Kedang Makmur estate, East Kalimantan May 2015, © Aidenvironment Coordinates: S 0°26'12.60"; E 116°1'31.63" Aidenvironment Barentszplein 7 1013 NJ Amsterdam The Netherlands + 31 (0)20 686 81 11 [email protected] www.aidenvironment.org Palm oil sustainability assessment of IndoAgri 2 Contents Executive Summary 4 1. Basic facts about Indofood 7 1.1 Indonesia's largest food company 7 1.2 Indofood companies 7 1.3 Ownership structure 8 2. Oil palm business 9 2.1 The number 3 private palm oil company in Indonesia 9 2.2 Oil palm planted area 9 2.3 Oil palm expansion 10 2.4 IndoAgri’s palm oil customers 11 2.5 Indofood’s joint ventures 13 3. Sustainability assessment 15 3.1 Methodology 15 3.2 Sustainability policy 15 3.3 Metau forest 18 3.4 Lonsum and its land disputes 23 3.5 Fires 25 3.6 Greenhouse gas emissions 28 3.7 Conserving biodiversity 29 3.8 Salim group clearing orangutan habitat 30 4. Stakeholders demanding sustainability 32 Conclusion 34 Glossary and explanation of terms 35 References 36 Palm oil sustainability assessment of IndoAgri 3 Executive Summary Oil palm business and ownership structure PT Indofood Sukses Makmur (Indofood) is Indonesia's largest food company. Its revenue for 2014 was IDR 63.6 trillion, equivalent to USD 5.1 billion.
    [Show full text]
  • Indofood Sukses Makmur and First Pacific
    Indofood Sukses Makmur and First Pacific: Financial Risks from Chain Reaction Research is a coalition of: Aidenvironment Climate Advisers Upstream Investments Profundo 1320 19th Street NW, Suite 400 PT Indofood Sukses Makmur Tbk. (Indofood SM), listed on the Indonesia Stock Washington, DC 20036 Exchange, is the country’s largest food company and the market leader in instant United States noodles, flour, cooking oils, margarine and fats. Its largest shareholder is First Pacific Website: www.chainreactionresearch.com Co. Ltd., a Hong Kong-listed conglomerate with interests in food, telecom, Email: [email protected] construction, and natural resources. The Indonesian Salim family controls First Pacific. Primary contacts: Both Indofood SM and First Pacific face financial risks from their upstream Fenneke Brascamp, Aidenvironment investments. These material risks include contested land and labor risks associated Gabriel Thoumi, CFA, FRM, Climate Advisers with their supply chains and reputation risks from their investments in their Bruna Tomaidis Lima, Profundo Singapore-listed oil palm plantation subsidiary Indofood Agri Resources. Key Findings 42 percent of Indofood Agri Resources’ 549,287 ha total landbank is contested. Indofood Agri Resources (Indofood Agri) controls 63 concessions. Six plantations (7 percent of its total landbank) allegedly have community conflicts and labor controversies. Four plantations (9 percent of its undeveloped landbank) are located on peat and/or forest areas, potentially prohibited from development given Indonesian government regulations. Approximately 5,900 ha of peatland burned in 2015 on Indofood concessions. 16 plantation companies (29 percent of its total landbank) do not publish concession maps. PT Indofood Sukses Makmur Tbk Bloomberg ticker INDF:JK A RSPO complaint was recently filed accusing Indofood Agri of employing child No.
    [Show full text]
  • Annual Report 2020 at a Glance
    ANNUAL REPORT 2020 AT A GLANCE Indofood Agri Resources Ltd. (IndoAgri) is a vertically integrated agribusiness group with activities spanning the entire supply chain from research and development (R&D), seed breeding, oil palm cultivation and milling; as well as the production and marketing of cooking oil, shortening and margarine. Headquartered in Singapore, we are among the largest palm oil producers in Indonesia. Our branded cooking oil, shortening and margarine products together garner a leading share in the domestic market. As a diversified agribusiness group, IndoAgri also engages in the cultivation of sugar cane, rubber and other crops. OUR VISION To become a leading integrated agribusiness, and one of the world-class agricultural research and seed breeding companies. OUR VALUES With discipline as the basis of our way of life; we conduct our business with integrity; we treat our stakeholders with respect; and together we unite to strive for excellence and continuous innovation. OUR MISSION To be a low-cost producer, through high yields and cost- effective and efficient operations. To continuously improve our people, processes and technology. To exceed our customers’ expectations, whilst ensuring the highest standards of quality. To recognise our role as responsible and engaged corporate citizens in all our business operations, including sustainable environmental and social practices. To continuously increase stakeholders’ value. INDOFOOD AGRI RESOURCES LTD ANNUAL REPORT 2020 1 CONTENTS GROUP OVERVIEW Our Milestones 2 Geographical
    [Show full text]
  • 第一太平有限公司 (Incorporated with Limited Liability Under the Laws of Bermuda) Website: (Stock Code: 00142)
    THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this circular. If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult your stockbroker or other registered dealer in securities, bank manager, solicitor, professional accountant or other professional adviser. If you have sold or transferred all your shares in First Pacific Company Limited, you should at once hand this circular, together with the enclosed form of proxy, to the purchaser or transferee or to the bank, stockbroker or other agent through whom the sale or transfer was effected for transmission to the purchaser or transferee. 第一太平有限公司 (Incorporated with limited liability under the laws of Bermuda) Website: www.firstpacific.com (Stock Code: 00142) VERY SUBSTANTIAL ACQUISITION AND CONNECTED TRANSACTION PROPOSED ACQUISITION OF THE ENTIRE ISSUED SHARE CAPITAL OF PINEHILL COMPANY LIMITED BY PT INDOFOOD CBP SUKSES MAKMUR TBK AND NOTICE OF SGM Independent Financial Adviser to the Independent Board Committee and to the Independent Shareholders SOMERLEY CAPITAL LIMITED A letter from the Board is set out on pages 6 to 28 of this circular. A letter from the Independent Board Committee is set out on pages 29 and 30 of this circular.
    [Show full text]
  • Revision of Annual Caps in Respect of Indofood's Continuing Connected
    The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. (Incorporated in Bermuda with limited liability) (Stock code: 00142) Website: http://www.firstpacco.com ANNOUNCEMENT (1) REVISION OF 2008 AND 2009 ANNUAL CAPS FOR NOODLES BUSINESS TRANSACTIONS AND ANNUAL CAPS FOR 2010 IN RESPECT OF NOODLES BUSINESS TRANSACTIONS (2) REVISION OF 2008 AND 2009 ANNUAL CAPS FOR PLANTATIONS BUSINESS TRANSACTIONS, ANNUAL CAPS FOR 2010 IN RESPECT OF PLANTATIONS BUSINESS TRANSACTIONS AND NEW PLANTATIONS BUSINESS TRANSACTIONS (3) REVISION OF 2008 ANNUAL CAPS FOR OTHER PACKAGING BUSINESS TRANSACTIONS AND ANNUAL CAPS FOR 2009 AND 2010 IN RESPECT OF OTHER PACKAGING BUSINESS TRANSACTIONS (4) REVISION OF 2008 AND 2009 ANNUAL CAPS FOR DISTRIBUTION BUSINESS TRANSACTIONS AND ANNUAL CAPS FOR 2010 IN RESPECT OF DISTRIBUTION BUSINESS TRANSACTIONS (5) REVISION OF 2008 AND 2009 ANNUAL CAPS FOR SNACK FOOD BUSINESS TRANSACTIONS AND ANNUAL CAPS FOR 2010 IN RESPECT OF SNACK FOOD BUSINESS TRANSACTIONS (1) REVISION OF 2008 AND 2009 ANNUAL CAPS FOR NOODLES BUSINESS TRANSACTIONS AND ANNUAL CAPS FOR 2010 IN RESPECT OF NOODLES BUSINESS TRANSACTIONS Shareholders are referred to the April 2007 Announcement and the May 2007 Circular, which set out a series of related continuing connected transactions relating to Indofood’s Noodles Business, which are also set out in Table A below. – 1 – Indofood has been monitoring the amount of the Noodles Business Transactions, having regard to internal estimates of demand and operating conditions.
    [Show full text]
  • Surya Citra Media REDUCE Sector: Media (Underweight) (Unchanged) Rating Momentum*
    Asiamoney'sAsiamoney’s 2014 20132013 Finance Asia's BestBestDomestic Domestic Best Corporate flash EquityEquity House House Equity House 3 December 2014 Surya Citra Media REDUCE Sector: Media (Underweight) (Unchanged) Rating momentum*: Wendy Chandra Price: IDR3,435 - TP: IDR2,360 (From IDR2,550) E-mail: [email protected] TP/consensus: 68.8% Phone: +6221 250 5081 ext. 3606 TP momentum*: JCI:5,176 Dimming the lights Exhibit 1. Company information Market cap (IDRt/USDb) : 50.2/4.1 . Severe revisions likely to come from the street: Consensus remains 3M avg.daily t.o.(IDRb/USDm) : 3.57/2.9 too bullish on SCMA’s outlook (exhibit 5), in our view, despite the recent Bloomberg code : SCMA IJ disappointing 3Q14 earnings caused by weak top-line growth (+4% y-y; Exhibit 2. Shareholders information -21% q-q). Following its weak performance, SCMA management recently PT Elang Mahkota Teknologi : 66.68 (%) lowered the company’s 2014 top-line growth expectations, from 15% y-y Free float : 33.32 Source: Company initially to just 8% at present. Also, guidance for SCMA’s 2015 revenue Exhibit 3. Key forecasts and valuations growth has also been further cut to just 11% y-y. Given consensus Year to 31 Dec 2013 2014F 2015F 2016F estimates of nearly 14% y-y top line growth in 2014 and 17% in 2015, Revenue (IDRbn) 3,695 3,973 4,339 4,899 we expect the consensus to see severe downward earnings revisions. EBIT (IDRbn) 1,759 1,832 1,987 2,264 Net profit (IDRbn) 1,280 1,367 1,536 1,766 .
    [Show full text]
  • BCA Vista Indonesia Morning Digest 11 MAY 2016
    BCA Vista Indonesia Morning Digest 11 MAY 2016 Vol TODAY'S HEADLINES INDICES Last Chg (%) YTD (%) (US$ m) ASEAN Economy Indonesia (IDX) 4,763.12 0.29 3.70 327.71 Forex reserves stood at USD107.7bn in Apr-16. (Jakarta Post) Malaysia (KLCI) 1,635.84 0.22 (3.38) 292.22 Philippines (PCOMP) 7,174.88 2.62 3.20 151.51 Industry/Corporate Singapore (STI) 2,741.15 (0.90) (5.00) 479.49 Retail car sales dropped by 8.4% MoM in Apr-16. (Bisnis Indonesia) Thailand (SET) 1,390.13 (0.29) 7.93 1,109.44 2W sales dropped by 15.1% MoM in Apr-16. (Bisnis Indonesia) REGIONAL & USA Subsidized loan rates to be reduced to 7% in 2017. (Investor Daily) China (SHCOMP) 2,832.59 0.02 (20.72) 19,705.88 The completion of Jabodetabek LRT Project may get delayed to 2019. Hongkong (Hang Seng) 20,242.68 0.43 (7.49) 2,261.28 (Investor Daily) India (SENSEX) 25,772.53 0.33 (0.72) 60.69 Jasa Marga (JSMR IJ) wins toll road projects worth of IDR24.7tn. (Investor Japan (Nikkei) 16,565.19 2.15 (12.97) 13,435.83 Daily) Korea (KOSPI) 1,982.50 0.75 1.08 4,068.00 Taiwan (TWSE) 8,156.29 0.30 (1.49) 1,873.18 USA (Dow Jones) 17,928.35 1.26 1.84 5,044.75 Source: Bloomberg Please see the overleaf for news details CURRENCIES & RATES Last -1 Week -1 Month EoP 2015 IDR/USD 13,286 13,188 13,144 13,788 IDR/USD (1-month NDF) 13,385 13,290 13,175 13,918 BI Rate 6.75 6.75 6.75 7.50 JIBOR (ON / 1 yr) 4.94 / 7.81 4.92 / 7.81 4.89 / 7.86 8.26 / 9.07 FASBI ON / SBI 9 mth 4.75 / 6.60 4.75 / 6.60 4.75 / 6.60 5.50 / 7.10 Term Deposit ( 1 mth / 6 mth) 4.70 / 4.85 4.70 / 4.85 4.70 / 4.85 4.70 / 4.85 Base
    [Show full text]
  • Indoagri's New Sustainable Palm Oil Policy Fails To
    INDOAGRI’S NEW SUSTAINABLE PALM OIL POLICY FAILS TO ADDRESS KEY ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RISKS February 2017 Salim Group’s Indofood Agri Resources Ltd (IndoAgri) has published a new “Sustainable Palm Oil Policy” amidst an ongoing RSPO complaint relating to labor rights violations on its palm oil plantations operated by subsidiaries PT. PP London Sumatra Indonesia Tbk. (Lonsum) and PT. Salim Ivomas Pratama Tbk. (Salim Ivomas). Unfortunately, IndoAgri’s policy falls short on addressing key ESG risks such as protecting valuable forests, preventing the exploitation of workers or committing to independent verification of its palm oil suppliers to No Deforestation, No Peatland and No Exploitation (NDPE) principles. Without such policy provisions, IndoAgri’s investors and financiers continue to be exposed to serious ESG risks. Figure 1: Indofood’s company structure IndoAgri, and its controlling companies Indofood and First Pacific (see Figure 1), have extensive direct ties to major financial institutions, investors, joint venture partners and palm oil supply chain customers. Prominent financiers include HSBC, Sumitomo Mitsui Financial, Malayan Banking, Deutsche Bank, Bank Mandiri, Citigroup, Mizuho, Bank of Tokyo-Mitsubishi UFJ, Bank of America, JP Morgan Chase, Royal Bank of Scotland, Rabobank, Standard Chartered, BNP Paribas and DBS. More than 200 independent institutional investors are also known to hold significant equity positions in Indofood, with significant shares held by Brandes Investment Partners and Lazard. Key joint venture partners and customers include Pepsico, Nestle, Wilmar and Unilever. These companies share responsibility with IndoAgri in relation to environmental and social violations, and continue to be exposed to serious ESG risks until IndoAgri’s policies and practices are brought into line with responsible palm oil production.
    [Show full text]
  • Download Case Study
    (INDF:IJ) Indonesia’s largest integrated food company PT Indofood Sukses Makmur TBK (Indofood) faces material risks related to labour, land rights and deforestation from upstream investments in the palm oil sector through its subsidiary Indofood Agri Resources, and by association with plantations controlled by the Salim Group. COMPANY PROFILE & SUSTAINABILITY COMMITMENTS CEO Anthoni Salim FOREST RISK COMMODITIES Palm oil First Pacific Co (0142:HK), majority owned Plantations, processing, manufacturing, PARENT COMPANY by Salim Group SUPPLY CHAIN EXPOSURE wholesale AFFECTED TROPICAL MARKET CAP (USD) 5.3 billion USD (FT.com) Indonesia FOREST AREAS Direct subsidiary: Indofood Agri ANNUAL REVENUE (USD) FY2015 5 billion USD (FT.com) RELEVANT SUBSIDIARIES Resources (SGX: 5JS). Plantation companies: PP London HEADQUARTERS Indonesia Sumatra Indonesia (Lonsum) (LSIP:IJ), Salim Ivomas Pratama (SIMP:IJ), PT Gunta Total: 549,287 ha across 63 concessions Samba & PT Gunta Samba Jaya. See LANDBANK (HA) Planted: 246,359 ha Figure 1. NDPE POLICY No KNOWN BUSINESS RELATIONSHIPS Joint venture Partners: PepsiCo, Nestlé, Wilmar Partial THIRD PARTY VERIFICATION RSPO member. 60% of Indofood subsidiaries’ planted area not RSPO certified (SPOTT, 2017 & SPOTT, 2017a). Salim Group-connected plantations are not covered (Mongabay, 2016). No commitment to third party verification Other buyers: Unilever, Procter & beyond RSPO for entire supply chain. Gamble, Golden Agri Resources, Musim Mas Group, Apical, Cargill, IOI Group TRACEABILITY Weak (Greenpeace, 2017) 36% of palm oil processed by IndoAgri not traceable to origin. SPOTT.org scores on traceability to mill: PP London Sumatra Indonesia: 37.5% Salim Ivomas Pratama: 25% TRANSPARENCY Partial SPOTT.org scores: PP London Sumatra Indonesia: RSPO reporting: 57.1% Landbank and maps: 62.5% Salim Ivomas Pratama: RSPO reporting: 50% Landbank and maps: 62.5% * Financiers of both Indofood and/or parent company First Pacific.
    [Show full text]
  • 44 BAB IV HASIL PENELITIAN DAN PEMBAHASAN A. Gambaran
    BAB IV HASIL PENELITIAN DAN PEMBAHASAN A. Gambaran Umum Objek Penelitian Pasar modal syariah dapat diartikan sebagai kegiatan dalam pasar modal sebagaimana yang diatur dalam UUPM yang tidak bertentangan dengan prinsip syariah. Penerapan prinsip syariah di pasar modal tentunya bersumberkan pada Al Quran sebagai sumber hukum tertinggi dan Hadits Nabi Muhammad SAW. Selanjutnya, dari kedua sumber hukum tersebut para ulama melakukan penafsiran yang kemudian disebut ilmu fiqih. Salah satu pembahasan dalam ilmu fiqih adalah pembahasan tentang muamalah, yaitu hubungan diantara sesama manusia terkait perniagaan. Berdasarkan itulah kegiatan pasar modal syariah dikembangkan dengan basis fiqih muamalah.Terdapat kaidah fiqih muamalah yang menyatakan bahwa Pada dasarnya, semua bentuk muamalah boleh dilakukan kecuali ada dalil yang mengharamkannya. Konsep inilah yang menjadi prinsip pasar modal syariah di Indonesia.1 Bertransaksi di JII merupakan salah satu bentuk perdagangan yang dibangun berdasarkan atas persaingan, kompetensi dan berorientasi keuntungan (profit oriented). Terkadang para pelaku bisnis di bursa efek telah mengikuti peraturan yang berkaitan dengan jenis akad kesepakatan yang dilakukan, meliputi surat-surat berharga yang mubah (boleh bermuamalah dengannya) dan mereka jauh dari perjudian (spekulasi), pegadaian dan pembiayaan ribawi atau transaksi lainnya yang diharamkan. Disamping itu mereka juga harus berakhlaq dan beretika dengan akhlaq yang benar dan lurus sebagaimana disebutkan berikut:2 1. Jujur dalam transaksi dan informasi. 1 Situs resmi bursa efek Indonesia, www.ojk.go.id, diakses tanggal 11 November 2015 2 Muhammad Mustaqim, Pengaruh Kurs Rupiah, Inflasi, dan Jumlah Uang Beredar terhadap Indeks Harga Saham pada JII, 2015, hlm. 59-60 44 45 2. Tidak menyembunyikan informasi (transparan). 3. Amanah dalam transaksi. 4. Menepati janji dan akad.
    [Show full text]
  • PT. Indofood Sukses Makmur Tbk Strategies for More International Growth & Global Competition
    PT. Indofood Sukses Makmur Tbk Strategies for more International growth & Global Competition. Abdulrahman Khaled Ba Wazir1, Daisy Mui Hung Kee2, Aric Farrel Gunawan Siregar3, Chan Siow Tian4, Chang Seng Loong5, Andre Wijaya Yamaputra6, Sara Wahbeh7 Universiti Sains Malaysia1,2,3,4,5 Ma Chung University6 Kuwait University7 Correspondence Email: [email protected] ABSTRACT This research aims to explore the internationalization process of PT.Indofood Sukses Makmur Tbk. To know how the strategies deployed by the company compete in the international market as well as suggest potential internationalization method for PT.Indofood Sukses to pursue for more internationally existence. In this research the author used secondary data, such as previous journal and report issued by the company. The conclusion of this research is that the key of success from PT.Indofood Sukses Makmur Tbk, is the mix marketing strategy and also their cooperation with multi-national companies. Their cooperation with other multi-national companies also will help the company to avoid being collapsed and instead growing steadily in the local market and international market as well. For that reason the author will try to analyse the strategies deployed by PT.Indofood Sukses Makmur INTRODUCTION PT Indofood Sukses Makmur Tbk is a food and beverage manufacturing company located at the Pasuruan, Indonesia. The company was established on 14th August 1990 and the founder was Sudono Salim with the name of PT Panganjaya Intikusuma. Later in 5th February 1994 the company’s name was changed to what we know today which is PT Indofood Sukses Makmur Tbk. The company focused on the developing of instant noodle in the beginning of the establishment and then moves on to the other kind of food and beverages.
    [Show full text]