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Last update: 2016-03-22 00:00:00 BankTrack
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|Sectors||Agriculture for Palm Oil|
BW Plantations, incorporated in Indonesia and listed on the Indonesian Stock Exchange since October 2009, has a market capitalization of US$455 million as of May 28 2013. Its top 5 shareholders on 31/122/2013 were:
PT BW Investindo (Widodo family): 38.75%
Fendalton Investments (New Zealand): 23.25%
JPMCB Non Treaty CL: 5.57%
In september 2014, Rajawali Corporation (controlled by Indonesian billionaire Peter Sondakh), acquired 21.5% of the shares.
About BW Plantations
BW Plantations is an Indonesian oil palm company that is involved in plantation development as well as crude palm oil production. Through its subsidiaries, BWPT owns the rights to 89,468 hectares of land spread across 9 oil palm plantations in Kalimantan. In 2014 it also acquired a concession in West Papua.
Human rights and social issues
CRR has found reports on the destruction of customary land by BW Plantation.
In early 2014, a Greenpeace report linked plantations of BW Plantation in Central Kalimantan to habitat loss of endangered orangutans.
In its prospectus for is 2014 new rights issues, there is no evidence that the company has done a High Conservation Value assessment, or that it has done any actions towards biodiversity conservation. The company also has no clear policy to exclude development on peat lands nor has it disclosed the location of peatlands and High Carbon Stock forests in its plantations. Its prospectus reveals that BW Plantation presently cultivates oil palm trees on 17,000 ha of peatland.
PT BW has been a member of the RSPO since March 2008. As of November 18, 2014 it has yet to initiate a RSPO Principles and Criteria certification assessment of any of its holdings.
RSPO membership requires new planting procedures to be applied to all members, whether or not they have any certified and sustainable palm oil production. RSPO members are expected to follow the RSPO's New Planting Procedures (NPP) when expanding their planted areas, which help ensure that material environmental and social risks are identified and addressed consistent with RSPO criteria for sustainable palm oil. BW has sofar (nov 2014) failed to do so.
BW has also not yet reported, nor committed to report on its GHG emissions as it should according to RSPO protocols.
End 2014, BW plantations plans to take over Green Eagle Holding. This company has a large landbank (over 300,000 ha), but for 70% of it, it does not (yet) hold permits. Green Eagle Holding has been accused of illegal deforetation. In the period 2010-‐2014, approximately 7,000 hectares of primary rainforests were converted into oil palm plantations by PT Tandan Sawita Papua (PT TSP), a subsidiary of Green Eagle. Additionally, the company cleared more than 6,000 hectares of secondary forests in Papua. In November 2014, three orangutans were rescued after being stuck in the midst of clearings by PT Arrtu Energie Resources, a West Kalimantan subsidiary of Green Eagle. The company was reported to not have supported the rescue. Furthermore, a CCR research found reports about poor working conditions on the Papuan plantation operated by Green Eagle.
Despite some entities in the BW and GEH groups having joined RSPO, neither company has any RSPO certified and sustainable palm oil production. Both BW and GEH can be classified as non-active participants in the scheme.