A deeper look into major palm oil groups operating in Indonesia
This case study of Citra Borneo Indah (CBI) Group – a major Indonesian palm oil group – is the first in a series that will highlight the companies, financial institutions, and individuals behind deforestation, focusing specifically on Indonesian palm oil firms. By documenting the group’s history of deforestation as well as its connections to prominent Western financiers, including Blackrock, State Street, Nuveen, and more, this study helps illustrate not just the harmful activities that often go hand in hand with deforestation, but also the ways convoluted ownership structures can obscure the identities of the individuals and organizations responsible.
Subsidiaries and shareholders of CBI Group
Here and throughout, claims about the ownership and governance of CBI group companies are based on corporate records examined by Lucida. For more information, please contact Lucida’s editorial staff at firstname.lastname@example.org.
Government concessions by land area in hectares, permit date, and purpose
Villagers created a guard post and installed a portal on the road of PT. SML that continues to displace the Laman Kinipan customary forest and take wood, including ironwood
CBI Group activities on Kinipan customary lands
PT SML concessions include 16,857 hectares of secondary forest that is identified as the habitat of the bornean orangutan, clouded leopard, critically endangered flora and dozens of other endangered species
Concerns included a lack of community consultation, a flawed Environmental Impact Assessment, no Free, Prior, and Informed Consent process, and insufficient permits
Understanding the financial and familial linkages between PT SML and CBI Group
Hectares deforested by CBI Group subsidiary, 2003 – 2019
PT SML has blurred the lines between family relationships, business operations, and company oversight
CBI Group directors and commissioners blur lines across the Indonesian palm oil sector
Financiers that lend to and own shares in PT SSMS
*Other shareholders include TIAA-CREF Investment Management, State Street, American Century Investment Management, UBS Asset Management, and Northern Trust Investments
Financiers are waking up to the financial risks of ESG impacts in investments