Indonesian billionaire using ‘shadow companies’ to clear forest for palm oil, report alleges

The owner of Indonesia’s largest conglomerate has been accused of participating in the illegal deforestation of Borneo’s Ketungau peat swamp to make way for oil palm plantations. The Salim Group, owned by tycoon Anthoni Salim, Indonesia’s fourth-richest man according to Forbes, is reportedly linked either by ownership or association with the two companies that cleared nearly 10,000 hectares of the protected rainforest. The Salim Group notably includes Indofood, a joint-venture partner with major brands such as PepsiCo and Nestle, as well as First Pacific, the joint owner of Goodman Fielder, a leading food producer in the Asia-Pacific region. In a new report released today, Aidenvironment, a sustainability consultancy, said that the Salim Group’s continuing reliance on “shadow companies” to sidestep legal oversight also raised questions over the complicity of major banks, such as Citibank, Mizuho, Standard Chartered, BNP Paribas and Rabobank, that finance the Salim Group. “This report provides clear evidence of shady business dealings and inaction at the highest levels of business, all while tropical rainforests continue to fall for Conflict Palm Oil,” said Gemma Tillack, forest policy director of Rainforest Action Network (RAN), which commissioned the research along with Rainforest Foundation Norway (RFN) and SumOfUs. The report, titled “Palm oil sustainability assessment of Salim-related companies in Borneo peat forests”, also alleged that The Salim Group was made aware of the deforestation carried out by PT Duta Rendra Mulya — majority owned by Anthoni Salim — and PT Sawit Khatulistiwa Lestari — linked with the tycoon through business associates…

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