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On record

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By: BankTrack
Created before Nov 2016
Last update: 2016-03-27 00:00:00

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Sectors Agriculture for Palm Oil
Headquarters
Ownership

Bumitama Agri was listed on the Singapore Stock Exchange in April 2012. The Hariyanto family is the
majority owner of Bumitama Agri. Its top shareholders are (source):

  • Fortune Holdings: 50.93 % 
  • IOI Corp Bhd (see profile): 31.4 % 
  • Affin: 15.68 % 
  • Value Partners: 9.46% 
  • Temasek: 4.42 % 
Subsidiaries
Bumitama Gunajaya Agro – Indonesia
En+Group – Russian Federation (profile)
PT Andalan Sukses Makmur – Indonesia
PT Ladang Sawit Mas – Indonesia
PT Nabatinduo Karya Utama – Indonesia
PT Windu Nabatindo Lestari –
Website http://www.bumitama-agri.com/

About Bumitama

Bumitama Agri Ltd. is one of the largest producers of Palm oil and Palm Kernel in Indonesia, where it controls over 200.000 hectares of palm oil plantations. It was established in 1996 by the Harita Group, a mining business conglomerate created by billionaire Lim Hariyanto. Its first operations were in Central Kalimantan, which it later expanded to West Kalimantan and Riau. In 2011 it sold 56,8% of its production to Wilmar. As of 31 December 2014 Bumitama Agri owns and controls 199,242 hectares of land of which 153,268 hectares is planted. 

Bumitama has repeatedly been found to be engaged in deforestation, including on orangutan habitat, as well as deforestation of peatland.

Bumitama has been a member of the Round table on Sustainable Palm Oil (RSPO) since 2007.

Latest developments

Bumitama divested from its subsidiary PT Hatiprima Agro

2015-01-15 00:00:00

Bumitama terminated contract with PT Gemilang Makmur Subur

2014-08-15 00:00:00

Impacts

Environmental and climate impacts

Since 1990, development of palm plantations by Bumitama and others has cleared about 16,000
square kilometers
of forested land in Kalimantan. In its Ladang Sawit Mas Plantation and its Gemilang Makmur Subur/Golden Youth Plantation, Bumitama operates with irregular permits. Its concessions overlap indigenous lands, forest reserves and contain pristine forest where orangutans live.

A complaint was filed at the RSPO and in response to that, in April 2013, Bumitama promised it would not clear land near forest reserves in West Kalimantan until studies were completed to appraise the land’s ecological importance. But it did clear 460 hectares, between May and September 2013. As of August 2013, and excluding the LSM concession, Bumitama exploits 7.305 ha outside location permits.

Major shareholder IOI is accused of illegaly clearing 10.000 ha and of developping plantations without approved Environmental Impact Assessments. By July 2014 there were five complaints filed against the company about violations of the RSPO Principles and Criteria, and one at the Dutch National Contact Point of the OECD. The RSPO Complaints Panel has confirmed that the company had been clearing land before carrying out the necessary HCV assessments. The panel noted that the noncompliant practices of Bumitama might be “systemic in nature.”

In August 2014 the Indonesian Supreme Court ruled that Bumitama's subsidiary PT. HPA illegally cleared 7,000 hectares of rainforest in Borneo for plantations.

More recently, Bumitama has promised repeatedly to stop deforestation on its plantations, and it has set aside 11,000 hectares for conservation. It has also started working with the HCS assessor Ata Marie to determine what areas are eligible for development and what should be protected. As a result of this HCS pilot study, Bumitama announced in September 2014 that it would protect more than 13,000 ha of forest across five subsidiaries. However, the policy does not apply to all subsidiaries, or to third party suppliers.

In August 2015, Bumitama adopted its new sustainability policy in which it states  that Bumitama is committed to ensure that there will be no more planting on peatland regardless of depth, it will subscribe to the HCS approach, a zero-burning policy during land development and replanting, amongst other commitments.

Other impacts

Its subsidiary Gemilang Makmur Subur, operating in Central Kalimantan,  was found to be operating without any of the critically required national permits in violation of Indonesia’s Forestry Act, the Environmental Act, and the Plantation Act.

Governance

Updates

Bumitama divested from its subsidiary PT Hatiprima Agro

2015-01-15 00:00:00

Bumitama divested all its assets from PT Hatiprima Agro in January 2015 following a court decision by the Supreme Court which decision states that HPA was required to sell of all of its assets to the new license holder, PT Langgeng Makmur Sejahtera. PT Hatiprima Agro had previously been subject to a court case as well as a RSPO complaint.

Bumitama terminated contract with PT Gemilang Makmur Subur

2014-08-15 00:00:00

In August 2014, Bumitama terminated its land management contract with PT Gemilang Makmur Subur. PT Gemilang Makmur Subur was involved in controversy regarding the environmental and legal permits relating to the land that it cultivated.

Financiers

See The financing of Bumitama Agri for information updated until December 2015. See Friends of the Earth's report Commodity Crimes  for more details and for the reactions of some of the financial institutions involved.

Related projects

Projects

There are no projects active for Bumitama now.
on record

Ladang Sawit Mas Plantation Indonesia

Agriculture for Palm Oil
on record

Golden Youth or Gemilang Makmur Subur Plantation Indonesia

Agriculture for Palm Oil

News

| |
Type:
Year:
blog
external news
our news

GREEN CATS 2020 UPDATE: SCORING PALM OIL AND SOY COMPANIES ON FOREST POLICIES AND TRANSPARENCY

2020-12-21 | Forest Heroes
blog
external news
our news

Dutch-based banks continue to finance deforestation and land-grabbing

2018-07-02 | Friends of the Earth Netherlands
blog
external news
our news

Dirty Bankers: How HSBC is financing forest destruction for palm oil

2017-01-17 | Greenpeace
blog
external news
our news

FoE response to final statement on complaint guidelines on Rabobank and Bumitama

2016-01-31 | Friends of the Earth Europe
blog
external news
our news

Indonesian peat fires linked to global palm oil companies and their financiers, Friends of the Earth report finds

2015-12-08 | Friends of the Earth
blog
external news
our news

Forest protection up in smoke

2015-02-11 | The Jakarta Post
blog
external news
our news

Bumitama cuts ties with illegal palm oil plantation following Friends of the Earth pressure

OECD accepts Friends of the Earth complaint against Rabobank
2014-12-16 | Brussels/Amsterdam | Friends of the Earth Europe
blog
external news
our news

Publication initial assessment for Friends of the Earth/Milieudefensie - Rabobank

2014-12-16 | OECD
blog
external news
our news

Bumitama Pilot s High Carbon Stock Assessment

2014-09-12 | Bumitama
blog
external news
our news

Palm oil company continues to operate illegal plantation despite court ruling

2014-09-12 | Mongabay
blog
external news
our news

Indonesia: Supreme Court rules against Big Palm Oil

2014-08-15 | Rainforest Rescue
blog
external news
our news

Friends of the Earth files OECD complaint against Rabobank finance for illegal palm oil

2014-07-01 | Amsterdam, Brussels | FOE Netherlands, FOE Europe
blog
external news
our news

OECD complaint against Rabobank concerning financial services to Bumitama

2014-06-27 | Milieudefensie
blog
external news
our news

Deutsche Bank divests from Bumitama

2014-05-26 | Frankfurt am Main | Friends of the Earth Europe
blog
external news
our news
private

Bumitama’s diary of destruction

2014-04-15 | Friends of the Earth US
blog
external news
our news

European and US financial institutions continue to finance illegal palm oil

2014-03-28 | Amsterdam/Brussels/Berlin | Friends of the Earth Europe
blog
external news
our news

Malaysia Taxes Spur Indonesian Oil-Palm Sukuk: Islamic Finance

2014-01-28 | The Jakarta Globe
blog
external news
our news

Singapore's Bumitama to raise $602 mln through Islamic bonds

2014-01-21 | Reuters
blog
external news
our news

Palm oil company Bumitama under fire for clearing rainforest, endangering orangutans

2013-12-02 | Kalimantan | Mongabay
blog
external news
our news

Palm oil company Bumitama under fire for clearing rainforest

2013-12-02 | Mongabay
blog
external news
our news

From Main Street to Wall Street, US banks and brands support illegal forest destruction for palm oil

International investigation names brands and investors behind commodity's boom
2013-11-21 | Washington / Jakarta | Friends of the Earth US
blog
external news
our news

Conservationists urge RSPO member to cease rainforest destruction after starving orangutans rescued from concession

2013-04-05

Documents

Type:
Year:
ngo documents
2017-01-17 00:00:00

Dirty Bankers

How HSBC is financing forest destruction for palm oil
2017-01-17 00:00:00 | Greenpeace
annual reports
2016-03-01 00:00:00

Bumitama annual report 2015

2016-03-01 00:00:00 | Bumitama
ngo documents
2016-02-01 00:00:00

FoE response to final statement on complaint guidelines on Rabobank and Bumitama

2016-02-01 00:00:00 | Friends of the Earth Europe
annual reports
2015-12-15 00:00:00

Sustainability Report 2014

2015-12-15 00:00:00 | Bumitama Agri Ltd.
ngo documents
2015-12-03 00:00:00

The financing of Bumitama Agri

A research paper prepared for Friends of the Earth Europe
2015-12-03 00:00:00 | Profundo
csr policies
2015-08-13 00:00:00

Sustainability Policy

2015-08-13 00:00:00 | Bumitama Agri Ltd.
annual reports
2015-05-01 00:00:00

Bumitama annual report 2014

2015-05-01 00:00:00 | Bumitama
ngo documents
2015-02-16 00:00:00

Tycoon-controlled oil palm groups in Indonesia - Executive Summary

2015-02-16 00:00:00 | TuK, Profundo
other documents
2014-12-16 00:00:00

Initial assessmentFriends of the Earth Europe, Friends of the Earth Netherlands/Milieudefensie - Rabobank

2014-12-16 00:00:00 | OECD
ngo documents
2014-10-01 00:00:00

Dirty Profits III

Reporting on Companies and Financial Institutions Benefiting from Violations of Human Rights 
2014-10-01 00:00:00 | Facing Finance
ngo documents
2014-09-23 00:00:00

The Green Tigers

Which Southeast Asian Companies Will Prosper in the New Age of Forest Conservation?
2014-09-23 00:00:00 | Forest Heroes
ngo documents
2014-07-05 00:00:00

Overview of five complaints to the RSPO

extracted from FoE complaint to the Dutch NCP of the OECD aigainst the Rabobank, regarding Bumitama
2014-07-05 00:00:00 | FoE, Milieudefensie
ngo documents
2014-06-27 00:00:00

Complaint with Dutch national contact point on Rabobank financing Bumitama Resources

2014-06-27 00:00:00 | FoE Europe, Milieudefensie
ngo documents
2014-03-28 00:00:00

Bumitama’s diary of destruction

Broken promises, land grabs and illegal palm oil in Indonesia
2014-03-28 00:00:00 | Friends of the Earth Europe
ngo documents
2014-03-07 00:00:00

Response to BAL rebuttal (27 February 2014) to Aidenvironment’s Valuation of Bumitama Agri’s commitments to stakeholders and RSPO (14 February 2014). Prepared for RSPO Secretariat

2014-03-07 00:00:00 | Aid Environment
annual reports
2014-01-01 00:00:00

Financial statement 2013

Unaudited
2014-01-01 00:00:00 | Bumitama
ngo documents
2013-11-22 00:00:00

Commodity Crimes: Illicit Land Grabs, Illegal Palm Oil and Endangered Orangutans (European version)

The Case of Bumitama Agri in West Kalimantan and its connection to global markets
2013-11-22 00:00:00 | Friends of the Earth Europe
ngo documents
2013-11-16 00:00:00

Conflict Palm Oil Case Study: Bumitama Agri LTD

The banks behind Bumitama Agri's destruction of rainforests, peatlands and orangutan habitat
2013-11-16 00:00:00 | Rainforest Action Network
ngo documents
2013-11-16 00:00:00

Banking on Extinction

Oil palm, orangutans and the certified failure of HSBC's forest policy
2013-11-16 00:00:00 | Environmental Investigation Agency
csr policies
2013-05-29 00:00:00

Environment Policy

2013-05-29 00:00:00 | Bumitami
annual reports
2012-12-31 00:00:00

Annual Report 2012

2012-12-31 00:00:00

Media






Links

Bumitama

Friends of the Earth Europe page on Bumitama
http://www.foeeurope.org/Last-chance-financiers-palm-oil-companies-211113

Bumitma

Milieudefensie page on Bumitama
https://www.milieudefensie.nl/biomassa/landroof/Nederlands-geld-in-landroof-Indonesie

Bumitama

Pictures of deforestation caused by Bumitama, from Greenpeace
http://photo.greenpeace.org/C.aspx?VP3=ViewBox&STID=27MZIF3ZW0QH&CT=Story

Global Forest Watch - Commodities

http://commodities.globalforestwatch.org/

WALHI, Friends of the Earth, indonesia

http://www.walhi.or.id/
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