PT Runding Putra Persada – popup

RAN report titled “Carbon Bomb Scandals: Big Brands Driving Climate Disaster for Palm Oil” highlights a case of palm oil plantation controlled by Mr. Mahmudin.

He is alleged for operating a farm located in Desa Ie Meudama inside the Rawa Singkil Wildlife Reserve.

The report alleged that the FFB’s from Mr. Mahmudin’s farm were delivered to PT Runding Putra Persada (RPP)

1. Legal Status

• RPP presented 6 (six) copies of individual land ownership (Sertifikat Hak Milik) issued since 2017, with number 1006, 1007, 1008, 1009, 1010, and RPP also shared the coordinates for each block.
• Our internal analysis found that these coordinates correspond to the blocks that have been registered in ATRBPN. This information is accessible through the database of National Land Agency (Badan Pertanahan Nasional/BPN). https://bhumi.atrbpn.go.id/

2. Farm location

Our spatial analysis result by overlaying the coordinates of Mr. Mahmudin farm with map Ministry of Environment and Forestry’s Decree No. 580/MENLHK/SETJEN/SET.1/12/2018 confirmed that these blocks are located outside of Rawa Singkil Wildlife Reserve.

RAN released an article titled “Major Indonesian Palm Oil Suppliers Falsely Deny Sourcing Illegal Palm Oil”  providing further information on Mr. Mahmudin’s farm that allegedly extends beyond the boundary to the Rawa Singkil Wildlife Reserve.

The site visit to enter the national reserve will depend upon local authorities’ permission.

The summary of the site visit is as follows:

1.FFB traceability SOP

It was found that:

• PT RPP has a written SOP on the implementation of Traceability to Plantation
• Based on the recent TTP (August – October 2022) presented by PT RPP, the reported agent is one of the new FFB suppliers of PT RPP in 2022.

2.Site visit to Mr. Mahmudin’s farm

• Part of Mr. Mahmudin’s farm owns individual land ownership (Sertifikat Hak Milik)
• We identified that some part of Mr. Mahmudin’s farm extended inside the Rawa Singkil Wildlife Reserve. Mr. Mahmudin was not aware of this overlap.
• Mahmudin also owns a ramp for FFB collection. He keeps no record of FFB sources (i.e coordinates, legality) and no traceability system is in place.
• The result of the visit to land clearing reported in RAN second article dated 31 October 2022 concludes that the location is seen to be recently cleared with the presence of newly planted oil palm seedlings. We were informed by Mr. Mahmudin that those areas belong to other parties unrelated to him.

Conclusion and recommendation

Action plan has been set for the following parties:

1. Mr. Mahmudin

• Return part of the farm located inside Rawa Singkil Wildlife Reserve to the government
• Declare all farms that also belong to Mr. Mahmudin
• Create and maintain traceability records for all FFB sources entering the ramp. This will be done in stages, within 6 months.

2.CV Buana Indah

• Declare all farms supplying FFB along with necessary information (i.e land legality/ status, etc.)
• Collect TTP data from all FFB suppliers periodically (maximum within 6 months)

3.PT RPP

• Review the SOP implementation on TTP , especially on the fulfillment of NDPE criteria at FFB producer level (i.e farmers) who supply through agents (i.e CV Buana Indah)
• Improve TTP system and ensure TTP data reaches 100% within the next 6 months
• Monitor the action plan progress of CV Buana Indah and Mr. Mahmudin as their FFB suppliers.
• Willing to be verified using random sample.

We will continue to monitor the implementation of the action plans to ensure consistent fulfilment the suppliers NDPE commitment.

PT RPP is in the process of engaging CV BI and Mr Mahmudin.

During the discussions, PT RPP informed us that they have proactively stopped sourcing from Mr. Mahmudin farm and ramp in Ie Meudama village until the land return process is completed.

To check progress of the action plan implementation, site visit is scheduled to take place on May 2023.

We are collaborating with other refiners to effectively support PT RPP in achieving the targeted action plan.

Musim Mas and other refiners did a follow up site visit. The summary of the visit is as follows:

1. PT RPP

• Conducted a coaching and mentoring session for PT RPP staffs for the completion of action plan.
• PT RPP has achieved 94% traceability to plantation (TTP).

2. CV BI and Mr Mahmudin

• Direct meetings with CV BI and Mr. Mahmudin to follow up the next steps. Musim Mas and other refiners team reiterated their NDPE commitment and the consequences for suppliers who do not comply with the policies.

3. Natural Resources Conservation Center (Balai Konservasi Sumber Daya Alam/ BKSDA) and Forest Area Designation Bureau (Balai Pemantapan Kawasan Hutan /BPKH)

• Engagement with BKSDA to understand further on challenges and protection efforts around Rawa Singkil Wildlife Reserve (RSWR) area
• Land returning procedure

PT RPP

• Informed PT RPP on the results of the discussion with BKSDA and BPKH.
• To accelerate the action plan implementation, Musim Mas and other refiners plan another site visit to further engage with CV BI and Mr. Mahmudin.

19-22 June 2023

Site visit to meet with CV BI and Mr. Mahmudin

• Informed CV BI on the results of the discussion with BKSDA and BPKH.
• Since Mr. Mahmudin was out of reach during the site visit, we conveyed the results of the discussion with BKSDA and BPKH to the staff at Mr. Mahmudin’s ramp.
• On the third day of the visit, we received information that Mr. Mahmudin confirmed his refusal to follow through with the commitment for land return.

Following Mr Mahmudin’s refusal to fullfill the agreed action plan, CV BI and PT RPP have excluded Mr. Mahmudin (ramp and farm) from their supply chain effective 13 July 2023.

TTP work with PT RPP and CV BI is continuing.

We will monitor the progress of the action plan’s completion and implementation. We will also informour suppliers in Aceh, in writing to not supply FFB from Mr. Mahmudin.

Upon completion of the TTP work of CV BI supply base to RPP, Musim Mas and other refiners implemented another site visit to PT RPP and CV BI.

The summary of the site visit is as follows:

– PT RPP has achieved 100% Traceability to Plantation (TtP) in September 2023.

– Based on CV BI FFB supplier list, CV BI has not received FFB source from Mr. Mahmudin since 13 July 2023.

– PT RPP demonstrated consistent implementation of the Traceability System. Sample check shows that PT RPP has not received FFB sourced from Mr. Mahmudin since 13 July 2023.

Taking into account that PT RPP has completed all items in the agreed action plan and is committed to comply with the implementation of NDPE commitment, we consider this case is resolved.

Joint closing statement for the case can be accessed here.