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Home › Dodgy Deals ›
Dodgy Deal
Royal Golden Eagle Group (RGE)Singapore

Company – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

climate@banktrack.org

Last update: 2024-05-01 00:00:00
RGE's head office at UOB Plaza, Singapore. Photo: Zairon via Wikimedia Commons (CC BY SA 4.0)

Company – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

climate@banktrack.org

Last update: 2024-05-01 00:00:00
Why this profile?

Why this profile?

Royal Golden Eagle Group owns several companies (APRIL, Toba Pulp Lestari) which have severe adverse impacts on people and the environment due to deforestation and human rights violations.

About
Sectors Agriculture for Palm Oil, Oil and Gas Extraction, Pulp, Paper and Paperboard Mills
Headquarters
Ownership

The company is owned by its founder Sukanto Tanoto, listed by Forbes as one of Indonesia's richest businessmen.

Subsidiaries
Apical Group – Indonesia
April – Indonesia (profile)
Asia Symbol – China
Asian Agri – Indonesia
Bracell – Singapore
Pacific Oil and Gas – Singapore
Sateri Holdings – China
Website https://www.rgei.com/

Royal Golden Eagle Group (RGE), previously known as Raja Garuda Mas, is a global resources-based manufacturing group with companies operating in the palm oil, pulp and paper, cellulose, gas and oil industries. The company was founded in 1973 in Singapore, by Sukanto Tanoto, who still chairs  it. The company employs some 50,000 people and has assets of more than USD 15 billion. Its subsidiaries, affiliates and brands include APRIL. Please refer to the APRIL dodgy deal profile for updates. 

Impacts

Environmental and climate impacts

 


Impact on human rights and communities

The paper mills run by APRIL and Toba Pulp have had serious impacts on local communities, as a result of forest concessions being granted for industrial exploitation without the free, prior and informed consent (FPIC) of the people with claims on the land and dependent on the forest resources for their livelihoods. This situation has led to significant social conflict and human rights violations. With the Constitutional Court ruling "MK 35" last year, there is also a material risk that areas in concessions allocated to APRIL, Toba Pulp Lestari and their suppliers and claimed by indigenous communities may be illegal.


Impact on nature and environment

RGE daughter company APRIL, the affiliated company Toba Pulp Lestari (which is also owned by Mr. Tanoto) and their suppliers, are having profound negative impacts on biodiversity and the climate. Many concessions supplying the mills owned by Mr. Tanoto are in areas representing some of the last refuges for the critically endangered Sumatran elephant and Sumatran tiger. Forest clearance of these areas pushes these species closer towards extinction. Drainage of deep peat soils both for natural forest clearance and for plantation establishment is an issue of global concern due to greenhouse gas emissions: a study released by the University of Helsinki, shows that APRIL's Acacia plantations on peatland in Sumatra release around 80 tons of carbon dioxide per hectare per year. Additional concerns include the continued subsidence of peatland areas, caused by drainage, leading to longer terms risks of flooding and inundation.


Other impacts

In 2012, the founder and chairman of RGE, Sukanto Tanotom was involved in one of the biggest tax evasion cases in Indonesian history. RGE daughter company Asian Agri Group, one of Asia's largest palm oil producers, was found guilty of tax evasion. The company  agreed to pay 2.5 trillion rupiah (S$ 250 million) in fines after the Attorney General's Office threatened to seize its assets.

Financiers

For updated information on financiers of APRIL/RGE, please visit the Forests and finance database (flagging "Royal Golden Eagle Group"), and/or visit the APRIL Dodgy Deal profile.

In early 2024, RGE secured an USD 1 billion sustainability-linked loan (SLL) for the Apical Group and Asian Agri. The USD 1 billion SLL will be used to support the growth and expansion of RGE’s agribusiness operations. SLL was arranged by a consortium of eight Mandated Lead Arrangers and Bookrunners (MLABs): Commercial Bank of Dubai, E.SUN Commercial Bank, First Abu Dhabi Bank, Hua Nan Commercial Bank, Industrial Bank, MUFG, Shanghai Pudong Development Bank and Bank of Communications (Hong Kong). 

Institution type
Finance type
Year
Projects
There are no active project profiles for Royal Golden Eagle Group (RGE) now.

Phoenix pulp mill, Tarakan

Indonesia
Project
On record
Pulp, Paper and Paperboard Mills

Phoenix pulp mill, Tarakan

Indonesia
News
BankTrack
Partners
Blog
External
Blog
BankTrack news BankTrack blog Partner news Partner blog

Major banks fueling biodiversity collapse by $395 billion since the Paris Agreement; Governments failing to reign in banks

New reports reveal escalating financing to destructive sectors and highlight the urgent need for financial sector regulations to achieve Global Biodiversity Goals
2024-10-16 | San Francisco | BankTrack, Amazon Watch, CED Cameroon, Friends of the Earth US, Milieudefensie, Profundo, Rainforest Action Network, Repórter Brasil, Sahabat Alam Malaysia, TuK INDONESIA
BankTrack news BankTrack blog Partner news Partner blog

Royal Golden Eagle Group Receives Billions in Sustainability Loans Amid Ongoing Links to Deforestation Across its Business

2024-08-27 | Rainforest Action Network
Blog
BankTrack news BankTrack blog Partner news Partner blog

New Report: Bankrolling Ecosystem Destruction

EU banks have poured €256 billion into sectors that threaten nature and climate
2024-03-27 | Amsterdam | Greenpeace International, Harvest, Milieudefensie
BankTrack news BankTrack blog Partner news Partner blog

RGE closes US$1 billion sustainability-linked loan tagged to a sustainability-linked derivative

2024-01-24 | The Business Times
Blog
BankTrack news BankTrack blog Partner news Partner blog

Major bank and investor policies accelerating forest destruction, biodiversity loss, climate chaos and rights violations

New analysis documents $307 billion flowing from big finance into forest-risk commodities driving massive tropical deforestation
2023-12-04 | BankTrack, Forests & Finance Coalition
BankTrack news BankTrack blog Partner news Partner blog

Report links paper giant RGE to Indonesia deforestation despite pledges

2023-06-04 | Mongabay
BankTrack news BankTrack blog Partner news Partner blog

Deforestation found in RGE supply chain as paper and palm oil giant linked to mega mill in Indonesia: NGO report

RGE-owned Asia Symbol sourced wood from prime orangutan habitat, a new report alleges. Environmentalists have also found ties between RGE and a new pulp mill in Kalimantan, which they say will put pressure on natural forests in Indonesia. RGE has refuted the allegations made in the report.
2023-05-23 | Eco Business
BankTrack news BankTrack blog Partner news Partner blog

Viscose giant accused of deforestation links

2023-05-23 | Ecotextile
Blog
BankTrack news BankTrack blog Partner news Partner blog

Global bank policies ‘dangerously inadequate’ to prevent financing of deforestation, climate chaos and human rights abuses

As the climate and biodiversity crisis intensifies, credit to forest-risk commodity companies increased 160% between 2020 and 2021.
2022-10-18 | Forests & Finance Coalition
BankTrack news BankTrack blog Partner news Partner blog

Sustainability issues of a wood pulp giant: Indonesian Royal Golden Eagle Group

2022-06-20 | Amsterdam | Aid Environment
BankTrack news BankTrack blog Partner news Partner blog

Toba Pulp Lestari: In depth on one of the worst actors in pulp and paper

2021-06-24 | Rainforest Action Network
BankTrack news BankTrack blog Partner news Partner blog

Banks are fueling deadly fires, Covid-19 threatens to compound the risks

2020-09-08 | forestsandfinance.org
Blog
BankTrack news BankTrack blog Partner news Partner blog

Japan’s megabanks complicit in destroying critical carbon sinks & fueling illegality

2020-01-31 | Tokyo | Rainforest Action Network
BankTrack news BankTrack blog Partner news Partner blog

Bracell Group rebrands Bahia Specialty Cellulose and Lwarcel Celulose under ‘Bracell’ Brand

2019-05-09 | Brazil
BankTrack news BankTrack blog Partner news Partner blog

More peatland fire disasters for Indonesia?

2019-02-12 | Indonesia
BankTrack news BankTrack blog Partner news Partner blog

Defeat RAPP and the Importance of Sustainable Finance

2018-02-03 | Indonesia
BankTrack news BankTrack blog Partner news Partner blog

Advisory to Buyers and Investors of Royal Golden Eagle / Asia Pacific Resources International Limited (RGE/APRIL)

2016-12-09 | WWF-Indonesia
BankTrack news BankTrack blog Partner news Partner blog

APRIL, RGE finally commit to zero deforestation

2015-06-04 | Eco-business.com
BankTrack news BankTrack blog Partner news Partner blog

Indonesia Lawmakers Draft Bill to Slash Foreign Ownership of Plantations

2014-08-15 | The Jakarta Globe
BankTrack news BankTrack blog Partner news Partner blog

6 myths Indonesia's biggest forest destroyer wants you to believe

2014-07-10 | Greenpeace UK
private BankTrack news BankTrack blog Partner news Partner blog

Indonesian palm oil firm Asian Agri to pay $250 million tax fine

2014-01-30 | Indonesa | Strait Times
BankTrack news BankTrack blog Partner news Partner blog

Royal Golden Eagle’s Next Generation Seeks New Leaf

2013-07-25 | The Jakarta Globe
Resources
Documents
Images
Links
2024-10-16 00:00:00

Banking on biodiversity collapse 2024

Partner publication
2024-10-16 00:00:00 | Forest and Finance Coalition
2024-03-26 00:00:00

Bankrolling Ecosystem Destruction

EU banks have poured €256 billion into sectors that threaten nature and climate 
Partner publication
2024-03-26 00:00:00 | Greenpeace International, Milieudefensie, Harvest
2023-05-23 00:00:00

Pulping Borneo

NGO document
2023-05-23 00:00:00 | Environmental Paper Network
2021-03-16 00:00:00

The industrial tree operations of the Nusantara Fiber group.

NGO document
2021-03-16 00:00:00 | Aidenvironment
2021-01-18 00:00:00

The Need for Free, Prior and Informed Consent:

An Evaluation of the Policies and Standard Operating Procedures of Ten Major Corporate Groups involved in Forest-Risk Commodity Supply Chains in Southeast Asia
NGO document
2021-01-18 00:00:00 | Rainforest Action Network
2019-11-29 00:00:00

Conflict Plantations

Chapter 2: revealing Asia Pacific Resources International Limited’s trail of disputes across Indonesia
NGO document
2019-11-29 00:00:00 | Environmental Paper Network
2017-06-13 00:00:00

Japanese and Malaysian banks and investors continue to pump billions of dollars into forest-risk companies, without adequate environmental and social safeguards

NGO document
2017-06-13 00:00:00 | RAN, TuK Indonesia & Profundo
2015-05-06 00:00:00

West Papua palm oil atlas

The companies behind the plantation explosion
NGO document
2015-05-06 00:00:00 | Y.L. Franky and Selwyn Morgan
2014-02-01 00:00:00

P&G's Dirty Secret

Media briefing on Greenpeace International’s investigation of how P&G’s palm oil suppliers are pushing Sumatran tigers and orang-utans closer to extinction
NGO document
2014-02-01 00:00:00 | Greenpeace
2014-02-01 00:00:00

Procte & Gamble's Dirty Secret

NGO document
2014-02-01 00:00:00 | Greenpeace

RGE

2014-08-06

List of RGE and its Affiliates by EPN

RGE Sustainability framework

SPOTT - ESG policy transparency assessments for Toba Pulp Lestari

SPOTT - ESG policy transparency assessments for APRIL

FSC Watch

Statement on RGE’s Engagement with TPL

Updates

2021

2021-03-16 00:00:00 | Indonesia’s Royal Golden Eagle Group involved in deforestation, despite its sustainability commitments

One of Indonesia’s largest companies, the Royal Golden Eagle (RGE) group, is connected to 9,400 hectares of deforestation in 2020. RGE is among Indonesia’s largest companies in palm oil, pulp, paper and textile fibers. It claims to have a no-deforestation commitment.

2019

2019-05-09 00:00:00 | Bracell (part of RGE) starts a major expansion project in the state of São Paulo

Bracell’s pulp mill in Lençóis Paulista (formerly Lwarcel) has also officially launched ‘Project Star’, an ambitious expansion effort to increase its current production capacity of 250,000 by an additional 1,250,000 per annum to reach 1.5m ton per annum. Work on the expansion has already begun, and is expected to be completed by the end of 2021. By the time of its completion, Project Star is expected to represent the largest private investment in the state of São Paulo in the last 20 years. Bracell also announced that Bahia Specialty Cellulose (BSC) in Camacari, Bahia, and Lwarcel Celulose in Lençóis Paulista, São Paulo, will now operate under the unified Bracell brand.

2015

2015-06-04 00:00:00 | APRIL, RGE finally commit to zero deforestation

Indonesian paper company APRIl and its parent RGE group have joined the growing industry movement to tackle deforestation, with new policies that promise to end development on forest and forested peatlands (source: eco-business.com).

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