The Borneo Post

IOI Group reaches settlement with Aidenviron­ment issues

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KUCHING: IOI Corporatio­n Bhd (IOI Group) has reached a settlement over the complaint raised by consultanc­y firm, Aidenviron­ment with regards to the group’s plantation estate in Ketapang, West Kalimantan in Indonesia.

IOI Group in a joint statement with Aidenviron­ment declared to have achieved agreement in closing the Ketapang complaint case.

These include overplanti­ng by its subsidiary PT Berkat Nabati Sawit (PT BNS), and new planting procedure required by the Roundtable on Sustainabl­e Palm Oil (RSPO).

To recap, IOI Group in a statement in October 2016 that it received a letter from the Indonesian Kementeria­n Lingkungan Hidup dan Kehutanan (KLHK) or Ministry of Environmen­t and Forestry of Indonesia dated October 11, 2016.

The letter stated there was a change from non-forestry land to forestry land in December 2013 pursuant to the decision of the Minister of Forestry.

Following a re-survey, it was confirmed in September 2014 that out of a total area of 11,800 hectares of land applied for by PT BNS, there was an overlap with Danau Manis Mata Production Forest amounting to 1,638 hectares.

Thus, Aidenviron­ment and IOI Group’s joint analysis subsequent­ly confirmed that the overlap comprises of 1,204 hectares (723 hectares of oil palm plantation­s and 481 hectares of other land) which was abandoned in year 2011 and another 434 hectares of land, cleared and planted between 2010 and 2014, was still managed by PT BNS during the joint field visit of September 2 to September 6, 2016.

In line with the instructio­n issued by KLHK, PT BNS will immediatel­y abandon the 434 hectares until such a time as there are new Ministeria­l instructio­ns regarding the said land.

On the new planting procedure by RSPO, a joint analysis of the chronology of land developmen­t confirmed that land developmen­t in its subsidiary PT Sukses Karya Sawit (PT SKS) and PT BNS which began in 2009, had straddled the RSPO new planting procedure (NPP’s) ‘cut-off date’ of January 1, 2010

As a result, IOI Group was required by RSPO to only comply with “on-going planting” NPPs.

The company noted that if it had agreed with Aidenviron­ment to follow the full NPP requiremen­ts, it would likely have revealed at a much earlier stage the noncomplia­nces occurring at that time.

Thus, IOI Group said it regretted not having taken necessary actions to be in full compliance with RSPO’s rules at all times.

IOI Group agreed to settle the outstandin­g issues with Aidenviron­ment in view of the company’s commitment to break with the past.

“Aalthough IOI Group will certify PT BNS and PT SKS under the RSPO time- bound plan, it undertakes not to market the palm oil produced from PT BNS and the affected areas of PT SKS3 with the RSPO certificat­ion claims for the duration of one planting cycle,” it detailled in the statement.

In the meantime, Aidenviron­ment said it has raised all other matters with IOI Group for perusal and declared that it has no further standing issues with IOI Group related to the Ketapang case.

Thedeclara­tionhasbee­nachieved with IOI Group, independen­t of RSPO’s decisions.

Hence, IOI Group said it will continue to disclose on progress after the declaratio­n, along with other developmen­ts of interest to its stakeholde­rs.

 ??  ?? IOI Group has reached a settlement over the complaint raised by consultanc­y firm, Aidenviron­ment with regards to the group’s plantation estate in Ketapang.
IOI Group has reached a settlement over the complaint raised by consultanc­y firm, Aidenviron­ment with regards to the group’s plantation estate in Ketapang.

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