Indonesia: United Nations express concerns over human rights & environmental abuses associated with PT Astra Agro Lestari's palm oil operations
"UN accuses Indonesia’s No. 2 palm oil firm of rights & environmental abuses" 3 March 2025
The United Nations has called out Indonesia’s No. 2 palm oil company for alleged human rights and environmental abuses, the first time it has singled out a company rather than the industry.
Various U.N. agencies and officials have long highlighted issues within the palm oil industry in Indonesia, the world’s top producer of the commodity, but this time the specific allegations are against PT Astra Agro Lestari (AAL), the second-largest palm oil company in the country.
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The company was most recently embroiled in a string of violence and criminalization in October 2024, which saw community members clash several times with antiriot police accompanying AAL subsidiary PT Agro Nusa Abadi (ANA) in harvesting palm oil fruit on lands claimed by the communities.
When community members protested against ANA’s actions, the antiriot police allegedly fired shots to suppress the protests. At the end of the month, the police charged six community members from North Morowali district with stealing palm oil fruit from ANA.
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However, FoE U.S. and Walhi note that at least three of AAL’s subsidiaries are operating without an HGU. These are ANA, PT Sawit Jaya Abadi (SJA), and PT Rimbunan Alam Sentosa (RAS). The fact that there are active disputes and that the companies continue to operate without an HGU suggests the “clean and clear” status of these concessions, as the government puts it, is questionable, indicating regulatory gaps in oversight.
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Operating without an HGU permit is generally considered a violation of multiple Indonesian laws, such as the 2014 Plantation Law, rendering ANA’s activities technically illegal. Indonesia’s land minister, Nusron Wahid, recently said palm oil plantations must have an HGU before they can operate.
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AAL has received backlash from buyers due to the myriad allegations of environmental and human rights violations. At least 10 major consumer brands have suspended their sourcing of palm oil from AAL, with the latest to do so being U.S. food giant Kellogg’s. The cereal maker joined the likes of Hershey’s, PepsiCo and Oreo maker Mondelēz in distancing itself from AAL.
While a growing number of entities are cutting ties with AAL, major agribusiness traders like ADM, Bunge, Cargill and Olam still source palm oil from mills associated with implicated AAL subsidiaries. And at least 18 global consumer brands, including Unilever, Barry Callebaut and General Mills, have a recent history of sourcing palm oil from AAL.