Astra Agro Lestari

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PT Astra Agro Lestari Tbk
Company typePublic
IDXAALI
Industryplantation
Founded1981; 43 years ago (1981)
HeadquartersJakarta, Indonesia
Area served
Indonesia
ProductsPalm oil
RevenueRp 14.12 trillion (2016)
Rp 2 trillion (2016)
Total assetsRp 24.226 trillion (2016)
Number of employees
35,400 (2016)
ParentAstra International[1]
Websitewww.astra-agro.co.id

Astra Agro Lestari (AAL) is the second biggest palm oil company in Indonesia. It is a subsidiary of PT Astra International Tbk. At least in 2004, it controlled extensive land banks.[2] It has two concessions on peatlands in Riau, with an estimated total area of 20,000 hectares.[3]

AAL is Indonesia's second largest palm oil company and according to FIDH, "supplies Crude Palm Oil (CPO) through its mills to various consumer companies, including Procter & Gamble, Hershey’s, Kellogg, Unilever, Mondelēz, Colgate-Palmolive, PepsiCo, and Nestlé, amongst others."[4]

According to Greenpeace, 2007, it has seven concessions on peat in Central Kalimantan.[5] Greenpeace also reported hotspots on five Astra Agro concessions in Riau, two of which were on peatlands.[6] Joko Supriyono was or is a director at Astra Agro and secretary of a palm oil industry lobby group.[7] He said companies had no choice, but to continue establishing plantations on restricted areas.[8]

The company was listed on the Indonesia Stock Exchange in 1997.

Criticism[edit]

Astra Agro Lestari has been accused of "criminalisation, human rights abuses and land grabbing" in Indonesia by indigenous groups and human rights organisations like Global Witness.[4][9] Global Witness have also criticised members of GFANZ for continuing to invest in companies accused of contributing to deforestation like AAL.[10] Friends of the Earth have also published a report accusing AAL of responsibility for "longstanding land rights abuses and environmental destruction in operations undertaken without proper legal permits."[11] The claims were repeated by PepsiCo and FrieslandCampina in 2023.[12]

References[edit]

  1. ^ Annual Report 2012
  2. ^ Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 77
  3. ^ Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 131
  4. ^ a b "Astra Agro Lestari in Indonesia: Ongoing criminalisation, human rights abuses and land grabbing". International Federation for Human Rights. Retrieved 2022-11-09.
  5. ^ Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 132
  6. ^ Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 142
  7. ^ Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 134
  8. ^ Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 135
  9. ^ "Decade of defiance". Global Witness. Retrieved 2022-11-09.
  10. ^ "Zero Progress? One year on from COP26, GFANZ investors remain heavily exposed to deforestation". Global Witness. Retrieved 2022-11-09.
  11. ^ Mark, Merel van der (2022-03-23). "Report: Major Indonesian palm oil supplier linked to illegal deforestation, land rights violations". Forests & Finance. Retrieved 2022-11-09.
  12. ^ DiNapoli, Jessica; Christina, Bernadette; Sterling, Toby (13 March 2023). "PepsiCo, FrieslandCampina ask suppliers to stop buying AAL palm oil". Reuters. Archived from the original on 13 March 2023.