BANKS DODGY DEALS CAMPAIGNS
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate
Banks and Human Rights
Banks and Nature
Our projects
Tracking the NZBA
Banks and Russia
Banks and Steel
Tracking the Equator Principles
Tracking the PRBs
Find a Better Bank
Banks and the OECD Guidelines
Media
News Publications
Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Donate Mailing list Facebook Twitter Linkedin Login
Home › Dodgy Deals ›
Dodgy Deal
Sinar MasIndonesia

Company – On record

This profile is no longer actively maintained, with the information now possibly out of date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

nature@banktrack.org

Last update: 2023-03-31 00:00:00
Photo: Greenpeace

Company – On record

This profile is no longer actively maintained, with the information now possibly out of date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

nature@banktrack.org

Last update: 2023-03-31 00:00:00
Why this profile?

Why this profile?

Sinar Mas Group has a complex and opaque corporate structure, which contributes to its lack of transparency and makes it difficult to hold the company accountable for human rights violations and environmental impacts. Sinar Mas' subsidiaries and partner-suppliers (listed here) have an extensive track record of community conflict and land rights violations, with a heritage of over 100 active community conflicts. The company has also massive environmental impacts: Sinar Mas' pulpwood concessions and those of its suppliers had the largest burned area of any corporate group in 2019. In 2020, Sinar Mas has also been involved in many more conflicts, being recently found to be clearing 3,500 hectares of Sumatran peatland for pulpwood plantations and digging 53 kilometres of drainage canals, in direct breach of its own commitments.

What must happen

The Sinar Mas group has serious corporate governance risks that should be a concern for banks. Banks and other financial institutions should stop new rounds of financing for Sinar Mas and should divest of any existing investments in the company until it is proven and independently verified that it has made meaningful changes across its business operations. Buyers and investors should avoid brands and papers linked to Sinar Mas and its sister companies controlled by the Widjaja family.

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

The company is owned by Eka Tjipta Widjaja.

Subsidiaries
Asia Pulp and Paper – Indonesia (profile)
Golden Agri – Singapore
PT Sinar Kencana Inti Perkasa – Indonesia
PT Smart – Indonesia
Website http://www.sinarmas.com/en/

Sinar Mas Group is one of the largest conglomerates in Indonesia, and it is APP's parent conglomerate. Sinar Mas' main activities are in the palm oil and pulp and paper sectors, operating as well in real estate, financial services, agribusiness, telecommunications and mining. The company was founded in 1962 by the Chinese Indonesian tycoon, Eka Tjipta Widjaja. Its subsidiaries, affiliates, and brands include APP. For updates on Sinar Mas forestry activities, please refer to the APP dodgy deal profile.

Impacts

Impact on human rights and communities

Its subsidiaries APP, Golden Agri and PT SMART have been accused of involvement in several conflicts with local communities. PT Sinar Kencana Inti Perkasa, which started operating in West Papua in 1994, has been in conflict with the Kaureh-Yapsi people over land grabbing issues ever since.

Sinar Mas subsidiaries and partners-suppliers have an extensive track record of community conflicts and land rights violations, with a heritage of over 100 active community conflicts. The social impacts on local communities include land grabbing and the displacement of local populations with the use of brutal violence. In 2020, Sinar Mas has been involved in many more conflicts, such as spraying the food crops of a local community with herbicide and the sentence of the prison of an Indigenous farmer for cutting 20 trees on disputed land. 


Impact on nature and environment

In December 2009, Unilever ended its contracts with Sinar Mas, after the release of the Greenpeace reports Burning up Borneo and Illegal Forest Clearance and RSPO Greenwash. Others, like Mars, Nestlé and Burger King followed soon.

In 2010, after the publication of the report Pulping the Planet, other large multinational groups like Carrefour, Gucci, H&M, Hugo Boss, Volkswagen, Fuji Xerox, Ricoh, Sainsbury’s, Marks & Spencer and Tesco also ended their contracts with Sinar Mas. In 2011 HSBC and BNP Paribas divested from Sinar Mas, after pressure from Greenpeace.

Its subsidiaries APP, Golden Agri, and PT SMART have been accused of involvement in several environmental impacts, such as large-scale deforestation and biodiversity loss, and greenhouse emissions due to peatland destruction. For more details on the social and environmental impacts of APP and Golden Agri, please refer to the dodgy deal profiles. 


Other impacts

In 2014, Sinar Mas was accused of defrauding the Indonesian government of USD15 million by avoiding reforestation taxes on 2,000 hectares in Jambi province.

 

Financiers
Institution type
Finance type
Year

See the finance tabs of its subsidiaries APP and Golden Agri for more information.

Projects
There are no active project profiles for Sinar Mas now.

OKI Pulp & Paper Mills

Indonesia
Project
On record
Pulp, Paper and Paperboard Mills

OKI Pulp & Paper Mills

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
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
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
Blog
BankTrack news BankTrack blog Partner news Partner blog

On International Forests Day, new briefing paper urges banks and financiers to exclude harmful financing that negatively impacts primary and vulnerable secondary forests

2023-03-21 | Friends of the Earth US
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
Blog
BankTrack news BankTrack blog Partner news Partner blog

UOB's new sectoral policies need stronger requirements for forest-risk commodities companies

2021-09-27 | BankTrack, Forests & Finance Coalition
BankTrack news BankTrack blog Partner news Partner blog

Pulp mill in Sumatra connected to fires and respiratory illness plans to triple production

2021-08-25 | Environmental Paper Network
Blog
BankTrack news BankTrack blog Partner news Partner blog

Indonesian paper giant APP takes over North American Domtar, putting the company’s credibility at risk

2021-07-30 | Sergio Baffoni – Environmental Paper Network
Blog
BankTrack news BankTrack blog Partner news Partner blog

Social and environmental organizations worldwide urge Domtar stakeholders to reject US$2.8 billion Paper Excellence deal, stressing social and environmental concerns

2021-06-24 | Environmental Paper Network
BankTrack news BankTrack blog Partner news Partner blog

Destroying Lives and Stealing Land

Indonesian Giant Sinar Mas Group’s Human Rights Record and the Frontline Communities Fighting Back
2020-12-24 | Rainforest Action Network
BankTrack news BankTrack blog Partner news Partner blog

Area burned in Indonesia fires ‘greater than the Netherlands’

Greenpeace slams Indonesia for lack of action against the palm oil sector as vast areas of forests burned in five years.
2020-10-23 | Al Jazeera
Blog
BankTrack news BankTrack blog Partner news Partner blog

A call to action on the Principles for Responsible Banking: End climate-destructive financing now

2020-10-20
Blog
BankTrack news BankTrack blog Partner news Partner blog

Principles for Responsible Banking no obstacle to finance climate destruction

Twenty PRB banks provided over US$1.25 trillion in fossil fuel financing since Paris Agreement
2020-09-22 | Nijmegen | BankTrack, Rainforest Action Network
BankTrack news BankTrack blog Partner news Partner blog

International Brands and Banks Financing Conglomerate with Largest Connection to Indonesia’s Annual Fires and Haze Crisis, Analysis Reveals

2020-09-14 | 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 2nd largest bank – Mizuho – announces strictest ESG policies to date in Japan

Japan’s 2nd largest bank – Mizuho – adopts NDPE criteria for forest sector clients and announces strictest ESG policies to date in Japan – This puts the bank well ahead of its competitors SMBC & MUFG
2020-04-22 | Forests & Finance
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

AP Exclusive: Pulp giant tied to companies accused of fires

2017-12-20 | AP News
BankTrack news BankTrack blog Partner news Partner blog

Swiss banks bankrolling illegal deforestation in Africa and East Asia

2017-03-24 | Illegal Deforestation Monitor
BankTrack news BankTrack blog Partner news Partner blog

As accusations fly, paper giant appears to stand by its replanting of burned peat in Sumatra

A tug-of-war over Indonesia’s peatland policy?
2016-12-22 | Mongabay
BankTrack news BankTrack blog Partner news Partner blog

Google Earth images demonstrate true extend of burned in pulp giant's concessions

2016-10-19 | Jakarta | Foresthints.news
BankTrack news BankTrack blog Partner news Partner blog

Asia Pulp & Paper denial shown to be false

2016-09-01 | Foresthints.news
BankTrack news BankTrack blog Partner news Partner blog

Another Indonesian court convicts a company of causing fires

2016-08-30 | Mongabay
BankTrack news BankTrack blog Partner news Partner blog

Sinarmas Forestry company found guilty of unlawful conduct by High Court over peat fires

2016-08-29 | Foresthints.news
BankTrack news BankTrack blog Partner news Partner blog

Sinar Mas prepares to launch pulp mill this year

2016-03-02 | The Jakarta Post
BankTrack news BankTrack blog Partner news Partner blog

Sinar Mas says it is 'victimized' in recent forest fires

2016-03-01 | The Jakarta Post
BankTrack news BankTrack blog Partner news Partner blog

Pupuk Indonesia Needs $534m for Merauke Food Estate

2015-05-18 | Jakarta Globe
BankTrack news BankTrack blog Partner news Partner blog

Banks raising $400m for palm oil expansion 'must examine high risks'

2015-04-20 | The Ecologist
BankTrack news BankTrack blog Partner news Partner blog

Banks cautioned to examine high risks in palm oil finance

2015-04-16 | FoE US
Blog
BankTrack news BankTrack blog Partner news Partner blog

Briefing to banks and potential investors on the ongoing risks and outstanding social conflicts in the palm oil agribusiness sector: Golden Agri-Resources (GAR) bond offering

Joint NGO statement
2015-04-15 | Nijmegen
BankTrack news BankTrack blog Partner news Partner blog

Indonesia's Sinarmas says targets coal miner to support power business

2015-04-15 | Reuters
BankTrack news BankTrack blog Partner news Partner blog

70% Perusahaan Sawit Di Sulteng Beroperasi Ilegal - 70% of palm oil companies operate illegally in Central Sulawesi

2015-03-23 | industri.bisnis
BankTrack news BankTrack blog Partner news Partner blog

Forest Peoples Programme complaint against Golden Agri Resources upheld

2015-03-09 | Forest Peoples Programme
BankTrack news BankTrack blog Partner news Partner blog

Sinar Mas Group Earmarks USD4.3 billion for Investment

2015-01-07 | The Jakarta Globe
BankTrack news BankTrack blog Partner news Partner blog

Golden Agri Resources - A Progress Report

2014-12-22 | Greenpeace
BankTrack news BankTrack blog Partner news Partner blog

Tjiwi Kimia to Place July Stake Sale Proceeds in Oki Stock Fund

2014-06-27 | The Jakarta Globe
BankTrack news BankTrack blog Partner news Partner blog

Indonesia blames eight firms for fires affecting region

2014-06-21 | Reuters
BankTrack news BankTrack blog Partner news Partner blog

WALHI Jambi: Forestry giant allegedly evaded $15m in taxes

2014-01-16 | Mongabay
BankTrack news BankTrack blog Partner news Partner blog

Conflict or Consent? The oil palm sector at a crossroads

2013-11-07 | Forest Peoples Programme
BankTrack news BankTrack blog Partner news Partner blog

Singapore officials consider legal action against forest fire companies over the heaviest smog to ever cover the city

2013-06-22 | The Independent
BankTrack news BankTrack blog Partner news Partner blog

Sinarmas Resmi Bangun PLTU IPP Sumsel-5 Kapasitas 2 x 150 MW

2013-05-23 | Warta Ekonomi
BankTrack news BankTrack blog Partner news Partner blog

Sinar Mas firm to invest $1.6 billion in Liberian palm oil

2013-03-26 | The Jakarta Post
BankTrack news BankTrack blog Partner news Partner blog

Communities in conflict with Sinar Mas Subsidiaries met the top Officials of Golden AgriResources

2012-11-01 | Sawit Watch
BankTrack news BankTrack blog Partner news Partner blog

Sinar Mas, Tanjung Enim Lestari Eye Pulp, Paper Plants on South Sumatra

2012-09-04 | The Jakarta Globe
BankTrack news BankTrack blog Partner news Partner blog

HSBC pulls investment from Sinar Mas after Greenpeace protest

2010-07-08 | The Guardian
Resources
Documents
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
2021-09-09 00:00:00

OPEN LETTER CONCERNING THREATS FROM THE PROPOSED EXPANSION OF PT. OKI PULP AND PAPER MILL – APP SINAR MAS

NGO document
2021-09-09 00:00:00 | Environmental Paper Network
2021-07-30 00:00:00

Paper Excellence Expansion Shows Threats to Canada’s Forests

NGO document
2021-07-30 00:00:00 | NRDC
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
2017-04-28 00:00:00

Too Much Hot Air

The failure of the Indonesian pulp and paper industry to reform its management of peatlands
NGO document
2017-04-28 00:00:00 | Environmental Paper Network
2020-10-20 00:00:00

A Call to Action on the Principles for Responsible Banking: End Climate-Destructive Financing Now

Joint civil society statement
BankTrack publication
2020-10-20 00:00:00 | BankTrack, Rainforest Action Network, and others
2019-10-01 00:00:00

Conflict Plantations

Chapter 1: Revealing Asia Pulp & Paper’s trail of disputes across Indonesia
NGO document
2019-10-01 00:00:00 | EPN, RAN
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
2016-06-03 00:00:00

Sinar Mas overview

Company document
2016-06-03 00:00:00 | Sinar mas
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
2015-04-16 00:00:00

Response to press release by NGOs issued on 15 April 2015

Company document
2015-04-16 00:00:00 | GAR
2015-04-15 00:00:00

Golden Agri-Resources (GAR) bond offering

Briefing to banks and potential investors on the ongoing risks and outstanding social conflicts in the palm oil agribusiness sector
NGO document
2015-04-15 00:00:00 | Joint NGO statement
2015-02-16 00:00:00

Tycoon-controlled oil palm groups in Indonesia - Executive Summary

NGO document
2015-02-16 00:00:00 | TuK, Profundo
2014-12-16 00:00:00

Golden Agri Resources - A progress report

NGO document
2014-12-16 00:00:00 | Greenpeace
2013-11-01 00:00:00

Conflict or Consent? - Full report

The oil palm sector at a crossroads
NGO document
2013-11-01 00:00:00 | FPP, Walhi, TuK and others
2012-11-06 00:00:00

Letter

Correspondence
2012-11-06 00:00:00 |
2012-06-07 00:00:00

Asia Pulp & Paper (APP) default in its obligations with the export credit agencies

NGO document
2012-06-07 00:00:00 | Greenpeace
2011-01-01 00:00:00

Le rôle d’UBS dans le financement du groupe Sinar Mas et la déforestation des forêts vierges indonésiennes

NGO document
2011-01-01 00:00:00 | Profundo, Greenpeace
2010-07-01 00:00:00

How Sinar Mas is pulping the planet

NGO document
2010-07-01 00:00:00 | Greenpeace
2009-03-20 00:00:00

ILLEGAL FOREST CLEARANCE AND RSPO GREENWASH: CASE STUDIES OF SINAR MAS

NGO document
2009-03-20 00:00:00 | Greenpeace
2008-04-30 00:00:00

Burning up Borneo

How Unilever palm oil suppliers are Burning up Borneo
NGO document
2008-04-30 00:00:00 | Greenpeace

FSC Watch

Global Forest Watch: Commodities

Updates

2019

2019-09-24 00:00:00 | Sinar Mas sets fire to a forest larger than Singapore

An area larger than Singapore was burned in a concession linked to Sinar Mas/Asia Pulp & Paper between 2015 and 2018. The concession had the largest total burned area out of all concessions across Indonesia, and was only sanctioned for replanting in previously burned areas.

2019-02-27 00:00:00 | Sinar Mas is accused by the Riau provincial legislature of tax avoidance

Sinar Mas has been accused by the Riau provincial legislature of avoiding taxes. In 2018, the group paid 84 billion rupiah ($ 5.8 million) in taxes to the province, but should have been liable for another 400 billion rupiah ($ 27.8 million), according to the legislators. Sinar Mas has denied allegations of tax avoidance, saying it has filed all taxes online since 2017 and thus is monitored by the tax agency.  

2016

2016-03-02 00:00:00 | Sinar Mas prepares to launch pulp mill this year

Sinar Mas is set to commence the operation of one of the world'€™s largest pulp mills. The new pulp and paper mill will occupy 1,700 hectares of land in a downtown area of Ogan Komering Ilir (OKI). The mill is set for operation in October 2016 to produce two million tons of pulp each year (source: The Jakarta Post).

Send feedback on this profile
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate Banks and Human Rights Banks and Nature
Our projects
Tracking the NZBA Banks and Russia Banks and Steel Tracking the Equator Principles Tracking the PRBs Find a Better Bank Banks and the OECD Guidelines
Media
News Publications
Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Vismarkt 15
6511 VJ Nijmegen
The Netherlands
Contact@banktrack.org
Donate Mailing list Facebook Twitter Linkedin
©2023 BankTrack
BankTrack is a registered charity in the Netherlands (ANBI) - RSIN 813874658
Find our privacy policy here

Stay up to date

Sign up now for all BankTrack's news


Make a comment

Your comment will be reviewed, before being posted