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Created before Nov 2016
Last update: 2016-09-22 10:46:20 BankTrack & Mandy Haggith – Environmental Paper Network
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|Sectors||Agriculture for Palm Oil, Pulp, Paper and Paperboard Mills|
The company is owned by Eka Tjipta Widjaja.
About Sinar Mas
Sinar Mas Group is one of the largest conglomerates in Indonesia. Its 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.
Human rights and social issues
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 landgrabbing issues ever since.
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.
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.
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).