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Date Progress
April 2019 12 April 2019:

Mighty Earth RRR14 alleged deforestation by PT Arjuna Utama Sawit (ARJ) where a total of 33 hectares of forest were cleared and 94 hectares were prepared for clearance in Central Kalimantan from 09 January to 19 February 2019.

We engaged with ARJ to verify the allegations of deforestation and clearance preparation.
ARJ has informed us that they will study the allegations in the report and come back to Musim Mas. We will be following up with ARJ on this very closely.
May 2019 ARJ informed us the clearance area is outside of their HGU and that ARJ is not a subsidiary of Pactra Group.
January 2020 Mighty Earth RRR23 alleged deforestation by PT Arjuna Utama Sawit (ARJ) where a total of 70 hectares of forest were cleared and 39 hectares were prepared for clearance in Central Kalimantan from 2 September – 24 December 2019.

We reached out to ARJ after the allegations made in RRR23 were raised.
ARJ explained that the land clearing was intended for community plasma where it is required by companies to fulfil corporate responsibilities towards the community, according to Government’s requirements.

We are still engaging with ARJ to identify the condition of the plasma area in detail to see if they are in line with our NDPE policy. If the results of the engagement find non-compliance to our NDPE Policy, we will review our business relation with ARJ.
April 2020
 Our last business transaction with ARJ was in October 2019.

Our engagement with ARJ on the environmental and social aspects is still ongoing. Therefore, we hope that a solution compatible to our NDPE commitment can be found.
April 2020 – April 2021
 The communication process regarding the NDPE commitment with PT ARJ continues.
April 2021 – August 2021
 Communications were progressing with updates from PT ARJ on sustainability improvements that have been carried out by PT ARJ so far. On May 2021, we held an online meeting with PT ARJ to discuss the steps for PT ARJ re-entry into Musim Mas supply chain.

August 2021
Summary of milestones during engagement process:

  1. PT ARJ has a SWO in place, issued on 25 May 2020.
  2. PT ARJ has updated their Sustainability Policy, incorporated with NDPE elements.
  3. PT ARJ is in the process of implementing integrated HCV-HCS assessment. Future new development will be based on the results and recommendation of the assessment.
  4. PT ARJ has committed to do remediation for past non-compliance peat development, which area will be based on the HCV-HCS assessment result and recommendations.

Based on the evidence submitted for PT ARJ commitment and progress relevant with Musim Mas’ re-entry criteria, we consider PT ARJ has fulfilled Stage 1 of the re-entry process and decided that PT ARJ can re-enter Musim Mas supply chain.

Musim Mas will continue to monitor PT ARJ progress.
July 2023 PT ARJ decided to not proceed with HCV-HCS assessment registration process with the HCVRN Quality Control panel team and to continue land clearing for plasma development.

As per the agreement during previous Re-entry process, we are engaging PT ARJ and to urge them to complete the HCV-HCS assessment until obtain ‘Satisfactory’ status from HCVN prior to continuing the land clearing process.
August 2023 PT ARJ confirm the decision to continue land clearing and will not proceed to the process of HCV-HCS assessment registration to HCVRN Quality Control Panel system.

Considering that PT ARJ decision is not align with Musim Mas Sustainability Policy commitment and with the Re-entry agreement, we decide not to continue the commercial relationship with PT ARJ by the end of August 2023.