Arjuna Utama Sawit (PT ARJ)

1) Mighty Earth report titled, “Rapid Response Report 14” (12 April 2019) sent to us via email.

2) Mighty Earth report titled, “Rapid Response Report 23” (8 January 2020)

(1) The report alleges 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.

(2) The report alleges 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.

April 2019
We engaged with PT Arjuna Utama Sawit (ARJ) to verify the allegations of deforestation and clearance preparation.

PT Arjuna Utama Sawit has informed us that they will study the allegations in the report and will come back to Musim Mas.

We will be following up with PT Arjuna Utama Sawit on this very closely.

January 2020
We reached out to PT ARJ after the allegations made in Mighty Earth RRR 23 were raised.

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.

May 2019
PT Arjuna Utama Sawit (PT ARJ) has informed us the clearance area is outside of their HGU and PT Arjuna Utama Sawit is not a subsidiary of Pactra Group.

January 2020
PT ARJ explained that the land clearing was intended for community plasma where it is required by companies to fulfill corporate responsibilities towards the community, according to Government’s requirements.

We are still engaging with PT 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 finds non-compliance to our NDPE Policy, we will review our business relation with PT ARJ.

April 2020
Our last business transaction with PT ARJ was in October 2019.

Our engagement with PT ARJ on the environmental and social aspects is still on going. Therefore, we hope that a solution compatible to our NDPE commitment can be found.

August 2021
Summary of milestones during engagement process:

  • PT ARJ has a SWO in place, issued on 25 May 2020.
  • PT ARJ has updated their Sustainability Policy, incorporated with NDPE elements.
  • 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.
  • 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.

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