BurningParadiseTheoilpalmpracticesofKorindoinPapuaandNorthMaluku

CommissionedbyMighty,theKoreaFederationforEnvironmentalMovements,SKP-KAMeMeraukeandPUSAKAAugust2016

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Photo:PristineforestinPapua

©Greenpeace/ArdilesRante,2008Photo:KorindohavingclearedforestforoilpalminPapua

©Mighty;4June2016;Latitude6°45'43.49"S,Longitude140°48'27.70"E;Credit:YudhiMahendra

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ColophonAidenvironmentreport:BurningParadise:TheoilpalmpracticesofKorindoinPapuaandNorthMalukuCommissionedby:Mighty,theKoreaFederationforEnvironmentalMovements,SKP-KAMeMeraukeandPUSAKADate:August2016Mighty:Address:2000MStNW#720,Washington,DC20036,UnitedStates.E-mail:deborah@mightyearth.orgCoverphoto:SmokerisingfromburningwoodrowsinKorindo’sPTBerkatCiptaAbadiconcession©ArdilesRante/Greenpeace;26March2013AidenvironmentJalanBurangrangNo.18Bogor16153,WestJava,Indonesia+62(0)2518371219E-mail:info@aidenvironment.orgwww.aidenvironment.orgAidenvironmentispartofStichtingAERA,registeredattheChamberofCommerceofAmsterdamintheNetherlands,number41208024

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Burningparadise:TheoilpalmpracticesofKorindoinPapuaandNorthMaluku

Executivesummary 5

Foreword 7

1. Korindo’soilpalmbusinesses 91.1 Plantations 91.2 IntroductiontoPapua 111.3 IntroductiontoSouthHalmahera 12

2. Practicesandsustainabilitycommitments 132.1 Practice:extensivedeforestation 132.2 Practice:systematicuseoffiretoclearland 152.3 Practice:denialofcommunityrights 182.4 Forestsatriskofbeingcleared 202.5 Commitments 21

3. (Former)CustomersofKorindooilpalm 23

4. Issuesbyplantationcompany 244.1 PTGeloraMandiriMembangun 244.2 PTPapuaAgroLestari 264.3 PTBerkatCiptaAbadi1 284.4 PTTunasSawaErma1B 304.5 PTDonghinPrabhawa 324.6 Daewoo’sPTBioIntiAgrindo 35

5. Korindocompanyprofile 385.1 Businessesandownership 385.2 Loggingandplywood 405.3 Pulpwood 435.4 Indonesia’slargestnewsprintmanufacturer 445.5 Finance 445.6 Heavyindustry 455.7 Coalmining 455.8 Smallerbusinesses 46

Conclusion 47

References 48

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Executivesummary

Korindo,acompanywhosenameconstitutesacompositeofthewordsKoreaandIndonesia,isalargeenterprisethatemploysaround20,000peopleinIndonesia.Thecompany’smainbusinessesareinnaturalresourceswithoperationsinvolvinglogging,pulpwoodandoilpalmconcessions,andplywood,woodchipandpalmoilproduction.OtherKorindobusinessesincludenewsprintpapermanufacturing,heavyindustriesincludingwindtowers,financing,andrealestate.KorindoiscontrolledbytheSouthKoreanSeungfamily.In2013,Korindobeganitsaggressiveclearingoftropicallowlandforestsforoilpalmplantations.Ithaseightareastotaling160,000hectares.Sevenofthese,covering149,000hectares,areinPapuawhereKorindoisthelargestpalmoilcompany.Theremaining11,000hectaresareintheprovinceofNorthMaluku.Inaddition,KorindohelpstheKoreancompanyDaewoowithits30,000-hectareplantationinPapua.AsofJune2016,75,000hectaresofvaluableforestsremainedinKorindo’soilpalmconcessions.Theseforestsareallatriskofclearinginthecomingyears.AccordingtoIndonesiangovernmentdata,morethanhalfofthemarepreviouslyuntouched,so-calledprimaryforests.TherearethreemainfindingswithregardtothesustainabilityofKorindo’soilpalmpractices:- Deforestation-Intotal,Korindohasclearedmorethan50,000hectaresoftropicallowlandforests

inPapuaandNorthMaluku,Indonesia;anareaapproximatelythesizeofSouthKorea’scapitalcity,Seoul.Since2013aloneithascleared30,000hectaresofforestsinthetwoprovinces,12,000hectaresofwhichwereprimaryforests.Korindomakeslittleefforttoidentifyandpreserveconservationareaswithinitsconcessions.

- Fires-KorindocontributedsignificantlytoIndonesia’shazedisasterin2015,whichresultedinenormousenvironmentalandeconomiclossesforthecountry.KorindowasthelargestcontributorinPapua.Allevidence-satelliteimagery,hotspotdata,andaerialphotographs-pointstoKorindo’ssystematicandabundantuseoffireduringitslandclearingprocesses.ThisisillegalinIndonesia,whichKorindoiswellawareof.InOctober2015,thePapuaDeputyGovernorstatedthatcompaniescausingfiresshouldimmediatelybeshutdown.

- Communityrights-Ingeneral,KorindohasfailedtorecognizetherightoflocalcommunitiestogiveorwithholdtheirFree,PriorandInformedConsent(FPIC)toanynewdevelopmentsoncommunitylands.Korindo’ssubsidiary,PTGeloraMandiriMembangunisoccupyingthefarmlandandforestsofcommunitiesinSouthHalmaheradistrictinNorthMaluku.Mostofthecommunities,whichhavelivedthereforhundredsofyears,arestronglyopposedtoanoilpalmplantation.Korindoisdisregardingtheircustomaryrightsbycontinuingitsoperationsthere.

Tradedatashowthat,untilrecently,Korindo’spalmoilendedupwithconsumersinEuropeandNorthAmerica,ChinaandIndia.Productswereboughtbymaintrading/refiningcompanies,manyofwhichareactivelyworkingonensuringsuppliers’compliancetotheirNoDeforestation,NoPeat,NoExploitation(NoDeforestation)policies.Korindodoesnotcomplywiththesepolicies,asshownbythethreefindingsabove.TwocompaniesthatwereamaincustomerofKorindo,WilmarandMusimMas,havealreadystoppedsourcingfromthecompany.ThiswasafterrepeatedwarningsfrombothcompaniesthatKorindoshouldchangeitspractices.Presently,itisuncleartowhichcompaniesKorindosellsitspalmoil.Korindopresentsitselfasanenvironmentallyfriendlycompany.However,itsoilpalmoperationscauseproblemsofglobalconcern,suchasbiodiversityloss,climatechange,hazardousairquality,andlossoflivelihoods.Companiesaccountingforthevastmajorityofgloballytradedpalmoilhavecommitted

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themselvestostrictNoDeforestationpolicies.Korindo,however,hasyettopublishaspecificsustainabilitypolicy.AnotherconcernisKorindo’ssourcingoflogsfromthirdpartiesforplywoodproduction.Thecompanyhasnoknownsafeguardsforensuringthatillegallyharvestedtimberortimberfromdeforestationdoesnotenteritssupplychain.Photo:Lesserbirdofparadise

©Greenpeace/TakeshiMizukoshi.

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Foreword

Foryears,KorindohasgottenawaywithdevastatingsomeofthelastpristinerainforestlandscapesleftinIndonesia,floutingIndonesia’sno-burninglaws,runningroughshodoverlocalcommunities,andviolatingtheresponsiblesourcingrequirementsofitsmajorcustomers.Asaresult,Korindohasalreadylosttwomajorcustomers:WilmarandMusimMas.BothweremajordirectbuyersofKorindooilpalm.IfKorindocontinuesdownthispath,itwillbeathighriskoflosingadditionalcustomers,losinginvestors,facingextremereputationaldamage,andbeingheldlegallyaccountableforitsactions.Or,Korindocouldchoosetojointherevolutioninresponsibleagricultureandturnanewleafbydoingthefollowing:- Immediatelyenforceamoratoriumonallnewforestclearingandburning;- Adoptandimmediatelyimplementacross-commoditypolicythatprotectshighcarbonstock

landscapes(followingtheHighCarbonStockApproachavailableathttp://www.highcarbonstock.org),highconservationvalueforestsandpeatlandsofanydepth,andthatrespectshuman,community,andlaborrights.ThispolicyshouldapplytoallofKorindo’sglobaloperations,subsidiaries,jointventureandsupplychainpartners.Korindoshouldalsoissueanimplementationplan,workwithacredibleimplementationpartner,issueregularprogressreports,andverifycompliancethroughanindependentthirdparty.

- CeasealloperationsinPTGeloraMandiriMembanguninSouthHalmahera(NorthMaluku),whereKorindoisencroachingontothecustomarylandsoflocalcommunities,andimmediatelyexcisecommunitycustomarylandsfromlicenseareas;

- Addressandremedyitslegacyofenvironmentalharm,landgrabbingandhumanrightsviolations–includingbyreturningcustomarylands,resolvingsocialconflictsandgrievancesandrestoringdamagedecosystems.Financetherestorationofanareaatleastequivalenttothatwhichithasdestroyedoverthepasttwodecades.

- Agreetobroadtransparency,includingreleasingthelocationofitsmillsandconcessionboundariesacrossallcommodities,revealingthenamesandlocationsofthirdpartysuppliers,andreportingregularlyonthirdpartysuppliercompliance.

- ComplywithanylegalproceedingsregardingKorindo’suseoffiretoclearlandandseizingcontrolofcustomarylandswithouttheconsentofcommunitiestowhomthoselandsbelong.

Thereismuchatstake:75,000hectaresofforestsremaininKorindo’sconcessionsandareatimminentriskofdestruction.ThefiresKorindowilllikelysetthisdryseasonwillcontributetohazardousairquality,endangeringthehealthofpeopleacrosstheregion,andcontributingmassivelytoclimatechange.TherichculturalheritageofPapuaandNorthMalukuwillbefurthererodedifKorindocontinuestoseizecontrolof,anddestroy,thecustomarylandsofcommunities.Speciesonthebrink,likethetreekangaroo,maybelostforever.AndKorindocouldsetadangerousprecedentofcommercialexploitationofoneofthelastforestedlandscapesleftinwhatwasonceaglobalepicenterofthrivingrainforestsandbiodiversity.WeknowwecansavetheseforestsandstopthedestructionifenoughpeoplearoundtheworlddemandthatKorindoreformandcallontheIndonesianandKoreangovernmentstoholdKorindolegallyaccountable.Visitourcampaignwebsiteformoreinformation,additionalphotosandvideosofKorindo’soperations,andtotakeaction:www.MightyEarth.org/BurningParadise.Thankyou,DeborahLapidusCampaignDirectorMighty

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Photo:Atreekangaroowithababyinherpouch

©Mighty;13July2016.Photo:ForestclearingbyKorindoforoilpalminPapua

©Mighty;4June2016;Latitude6°47'2.69"S,Longitude140°45'48.58"E.Credit:YerimiaLeo.

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1. Korindo’soilpalmbusinesses

1.1 Plantations

Korindoemploysaround20,000people.Itsmainbusinessesareinnaturalresourceswithoperationsinvolvinglogging,pulpwoodandoilpalmconcessions,aswellasplywood,woodchipandpalmoilproduction.OtherKorindobusinessesincludenewsprintpapermanufacturing,heavyindustriesincludingwindtowers,financing,andrealestate.1KorindoiscontrolledbytheSouthKoreanSeungfamily.Korindo’soilpalmoperationstakeplaceintheIndonesianprovincesofPapuaandNorthMaluku.ThecompanybeganitsloggingoperationsinPapuain1993,whiledevelopmentofitsfirstoilpalmplantationcommencedin1998.2Korindohaseightconcessionareastotaling160,000hectares.Sevenofthese,covering149,000hectares,areinPapuawhereKorindoisthelargestpalmoilcompany.Korindo’splantationcompanyPTGeloraMandiriMembangun(PTGMM)accountsfortheother11,000hectares,andislocatedinSouthHalmaheradistrictinNorthMaluku.OnitswebsiteKorindostatesatargetof200,000hectaresofoilpalmplantationsby2020.3Figure1.LocationsofKorindo’soilpalmoperationsinIndonesia

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Concessionboundariesandownership

Theconcessionareas-sizesaswellasboundaries-usedforthisreportwerederivedfrommapsandforestlandreleasepermitsfromthecentralgovernment.Table1belowshowsthesizeoftheseareas,accordingtotheforestlandreleasepermits.PalmoilcompaniesarealsorequiredtoacquirePlantationBusinessPermits(IUP,IzinUsahaPerkebunan)and/orRightstoExploit(HGU,HakGunaUsaha)fortheirconcessionareas.Theseareissuedbydistrictgovernments.Inmanycases,ourinvestigationfoundnoevidenceofsuchpermitseverbeingissued.4Table1.ForestlandreleasepermitsreceivedbyKorindo

Abbreviation Plantationcompany Forestlandreleasepermit Hectares

PTTSE1A PTTunasSawaErma1A171/KPTS-II/1998(27February1998)

14,800

PTTSE1B PTTunasSawaErma1B 19,500

PTGMM PTGeloraMandiriMembangun SK.22/MENHUT-II/2009(29January2009) 11,000

PTDP PTDonghinPrabhawa SK.623/MENHUT-II/2009(5October2009) 34,100

PTBCA1 PTBerkatCiptaAbadi1 SK.328/MENHUT-II/2011(22June2011) 14,500

PTPAL PTPapuaAgroLestari SK.52/MENHUT-II/2012(4October2012) 32,300

PTBCA2 PTBerkatCiptaAbadi2 SK.835/MENHUT-II/2014(29September2014) 14,400

PTTSE2 PTTunasSawaErma2 SK.844/Menhut-II/2014(29September2014) 19,000

Total 159,600Source:MinistryofEnvironmentandForestry,Progressinreleasingforestland,May2015,http://bit.ly/1R5haD5Koreanpartners:HyosungandDaewoo

HyosungCorporation,aSouthKoreanindustrialconglomerate,istheonlyentityotherthanKorindowithashareinKorindo’splantationcompanies.In2014,thecorporationbought15%sharesinPTPapuaAgroLestariandPTGeloraMandiriMembangun.Asof31December2015itstillownedtheseshares.Primarily,Hyosungmanufacturesandsellssyntheticfiberproductsandelectronicproducts,butitisalsoengagedinconstructionandotherrelatedbusinessactivities.5TheKoreanconglomerateDaewoohasanoilpalmconcessioninthesameregionasKorindo’sPapuanoilpalmconcessions.Daewoo’splantationcompany,PTBioIntiAgrindo(PTBIA),islocatedinMeraukedistrict,andaccordingtoitsforestlandreleasepermit,theconcessioncoversanareaof36,400hectares.6InMay2016,DaewooconfirmedthatKorindoadvisesitwithregardtoitsplantationoperations.7Daewoohasan85%stakeinPTBIA.Itisunknownwhoownstheremaining15%,thoughKorindomaybethephantomowner.Korindo’sproducts

Oilpalmsstartbearingfruit(FreshFruitBunches(FFB)afterapproximatelyfouryears.ThismeansthatinorderforKorindotobeabletoharvestFFBin2015/2016,itsoilpalmsmusthavebeenplantedinorbefore2011/2012.ThisiscertainlythecasefortheKorindoplantationcompaniesPTTSE1AandPTTSE1B,whereapproximately17,700hectaresofoilpalmswereplantedbefore2010.BothplantationcompanieshavepalmoilmillsinsidetheirconcessionthatprocessharvestedFFBintoCrudePalmOil(CPO).Combinedtotalproductionfromthesemillsamountedto109,000tonnesofCPOintheperiodfromOctober2014toSeptember2015.Inaddition,23,800tonnesofpalmkernelwereharvested.8PTDonghinPrabhawa(PTDP)hasalsobegunharvestingFFBfromoilpalmsplantedbyearly2011.Asyet,PTDPhasnopalmoilmill.TheharvestedFFBarelikelytransportedtoPTTSEpalmoilmills.PalmoilmillsforbothPTDonginPrabhawaandPTBerkatCiptaAbadiarecurrentlyunderconstruction.9

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1.2 IntroductiontoPapua

OfallregionsinIndonesia,Papuahoststhelargestareaofpreviouslyuntouchedprimarytropicalrainforest.Attheendof2012,primaryforestwasestimatedtocover35.2millionhectares,or86.2%ofitstotallandarea.Bycomparison,inSumatraonly13.4millionhectaresofprimaryforestremained,coveringonly28.3%ofitssurfacearea.FiguresforKalimantanwere27.6millionhectaresand51.9%.10Papuahostsaround50%ofIndonesia’sbiodiversity.Itishometo15,000–20,000plants(55%endemic),602birds(52%endemic),125mammals(58%endemic)and223reptiles(35%endemic).Endemicspeciesincludetreekangaroos,birdsofparadise,rainbowfishes,birdwingbutterflies,variousorchidsandthousandsofotherfloraandfaunaspecies.11In2010,Papuahadapopulationof3.6millionpeople.IthasthehighestpopulationgrowthofallIndonesia’sregions,causedbytransmigrationandahighbirthrate.12Itishometoaround312differenttribes,includingsomeuncontactedpeoples.13Thesituationinareaswithnewactivities,suchasoilpalmplanting,isoftentenseduetothemilitarypresence.Themilitary’sviolentandindiscriminaterepressionofallegedOPMmembers(OrganisasiPapuaMerdeka-theFreePapuaMovement)inPapuaiswellknown,andoftencauseswidespreadpanicwithinvillages.14LargetractsoflandhavebecomeincreasinglydifficulttofindinSumatraandKalimantanbecausesomuchareahasalreadybeendeforested,andduetoincreasingimplementationofbothgovernmentandprivatesectorlimitsondeforestation,peatlandconversion,andexpropriationofindigenouscommunityland.Consequently,plantationcompanieshavebeenlookingtoexpandinPapua.In2005,therewereonlyfiveoilpalmplantationsoperatinginPapua.Bytheendof2014,therewere21operationalplantations,withanother20concessionsatadvancedstagesoftheirpermitprocesses.15Korindo,activeintheforestrysectorinPapuasince1993,hasexpandeditsoilpalmareainPapuamostaggressivelyoverthelastfiveyears,andisthebiggestoilpalmcompanyinPapua.Photo:Treekangaroo

©Greenpeace/GeraldCubitt

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1.3 IntroductiontoSouthHalmahera

TheKorindosubsidiarycompanyPTGeloraMandiriMembangunislocatedinSouthHalmaheradistrictonHalmaheraIsland,inNorthMaluku.Halmaheraisoneoftheoriginal"SpiceIslands”andpartoftheWallaceaecoregion,whichcontainsaverydistinctivefaunarepresentingamixofAsianandAustralasianspecies.16Communitiesinthearea,whohavelivedthereforhundredsofyears,livemostlyofftheseaandtheland,whichprovidesourcesofcarbohydrates,protein,mineralsandvitamins,woodforhousesandboats,aswellasherbalmedicines.Theyalsorelyheavilyonlocalgardens,wheretheygrowfruits,vegetables,yams,chili,coconut,nutmegandcloves.17Figure2.SouthHalmaherainMay2016(forestsclearedbyKorindoareinsidetheyellowboundary)

Source:Landsat7imageryfor8Mayto9June2016.

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2. Practicesandsustainabilitycommitments

2.1 Practice:extensivedeforestation

Acceleratedclearingsince2013

KorindohasbeenacceleratingitsclearingandplantinginPapuasince2013,andin2014commencedwidespreadclearinginSouthHalmahera.Figure3showsthelossofforestcoverfrom2013upuntiltheendofMay2016,whichcanbesummarizedasfollows:- TotaldeforestationbyKorindointheperiodfrom2013toMay2016amountedto30,000hectares,

comprising11,700hectaresofprimaryforestand18,300hectaresofsecondaryforest.- ThemostrecentclearingofprimaryforesthasbeenbyPTPAL(3,800hectaressincelate2015)and

PTTSE1B(500hectaresin2016).Figure3.Areaofforestclearedsince2013

Source:Landsat8imagery,comparedwithIndonesianMinistryofForestryforestcovermapsfor2011,andinthecaseofPTDPforestcovermapsfor2009.Clearingbefore2013

KorindostartedplantingoilpalminPapuain1998,afterPTTunasSawaErmareceivedareleasepermitfor34,300hectaresofforestland.By2000,PTTSE1Ahadalreadyplanted7,500hectaresofoilpalm.PTTSE1Bstarteditsdevelopmentin2006andhadplanted7,000hectaresby2008.18By2010,thetotalareadevelopedbyPTTSE1Aand1Bamountedto21,400hectares.19Mostofthisdevelopmentcameattheexpenseofprimaryforest.20KorindobegandevelopingthePTDonghinPrabhawa(PTDP)concessioninlate2010.By2012,atotalof1,600hectaresofsecondaryforesthadbeencleared.Intotal,Korindohasclearedmorethan50,000hectaresofforesttomakewayforoilpalmplantations.ThisareaisapproximatelythesizeofSeoul,thecapitalofSouthKorea.

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Timberintheoilpalmconcessionareas

ThetimberfromtreesKorindocutsdowntomakewayforoilpalmsprobablygoestoitsplywoodmillinAsiki.Timberrevenuesmayfinanceasubstantialportionofitsoilpalmplantationdevelopment.In2014,theCenterforInternationalForestryResearch(CIFOR)estimatedthatthe22,000hectaresofmostlyprimaryforestclearedbyTSE1Aand1Bbefore2010wouldgenerateenoughtimberrevenuetofinancethecostsofdevelopingatleast10,000hectaresofoilpalmplantations.21Photo:LogsmadereadyfortransportfromKorindo’sPTPapuaAgroLestarioilpalmconcession

©Mighty;4June2016;Latitude6°45'42.82"S,Longitude140°48'17.75"E.Credit:YerimiaLeoPhoto:KorindotrucktakingoutlogsfromKorindo’sPTGMMoilpalmconcessioninNorthMaluku

©Walhi,November2014.

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2.2 Practice:systematicuseoffiretoclearland

SystematicuseoffirebyKorindo

AllevidencegatheredbyAidenvironmentpointstoKorindo’ssystematicuseoffireduringitslandclearingprocesses.22Intheperiodfrom2013to2015,nolessthan894hotspots(>50%confidence)wererecordedwithinKorindosubsidiarycompanyconcessionboundaries.In2013,Korindowasclearingforestandlandintwoconcessionareas,inthreeconcessionsin2014,andfourconcessionsin2015.Figure4belowshowsaclearcorrelationbetweentheamountofconcessionsbeingclearedbyKorindoandthenumberofhotspotsrecorded.Figure4.HotspotsinsideKorindoconcessionboundaries,2013-2015

Source:FireInformationforResourceManagementSystem(FIRMS),http://go.nasa.gov/27awNFgHotspotsappearedafterKorindohadclearedtheforestandbeforeitstartedplantingoilpalm.ThetypicalsequenceofactivitiesperformedbyKorindowhileconvertingforestintooilpalmplantationsisasfollows:- Lining(carvingoutofplantationblocksintheforest);- Logging(extractinghigh-qualitytimberfromtheforest);- Clearing(uprootingtheforestwithexcavatorsorbulldozers);- Stackingwoodrows(pushingwoodresidue,branchesetc.intorows);- Settingfiretowoodrowsafterafewweeks.Papuanforestshavealotofbiomass,andfireswill

acceleratethebreakdownofthismaterial.Afterabadburn,Korindomaysetthewoodrowsonfireagainafewweekslater;and

- Planting.Korindo’smanagementlikelybelievesthechanceofbeingheldaccountableforopenburningthroughlegalsanctionorasaresultofpublicopiniontobesmall.Localindigenousgroupshavelittleaccesstomediaforreportingillegalpractices,andKorindoiswellconnectedwiththelocalarmedforces.InMay2016,initsresponsetoaninquirybytheKoreannewsoutletSisaIN,aKorindogrouprepresentative

2013 2014 2015PTPAL 221

PTTSE1B 88

PTGMM 106 21

PTDP 43 144 164

PTBCA1 19 97 1

050

100150200250300350400450500

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denieditsstrategicuseoffireinlandclearanceprocessessaying,“Ourcompanydoesnotcreateplantationsthroughintentionalman-madearson.”23However,thecompanyofferednoevidencetosubstantiatethisclaimortocounterthesubstantialevidencetothecontrary.FiresareillegalinIndonesia

Burningtoclearforestsand/orlandisprohibitedunderIndonesianLawNo.32/2009onEnvironmentalProtectionandManagement,amongothers.Possiblepenaltiesforthosefoundguiltyofbreakingthislawincludefinesandprisonterms.24Forexample,on11August2016thejudgesoftheSouthJakartaDistrictCourtorderedtheIndonesiancompanySampoernaAgrotopayIDR1.07trillion(equivalenttoUSD76million)forcompensationandenvironmentalrestoration,inacaseofforestfirescoveringanareaof3,000hectaresinRiauprovince(Sumatra)in2014.25InSeptember2015Indonesia’sSupremeCourtinJakartafoundtheoilpalmcompanyPTKallistaAlamtobeinbreachofLawNo.32/2009.ThecompanywasorderedtopayIDR366billion(approximatelyUSD26million)forillegallyburningforestswithintheTripaPeatSwamps,partoftheprotectedLeuserEcosysteminSumatra.26Lawsprohibitingpeoplefromdeliberatelystartingforestorlandfireswerealsoestablishedin1999and2001.27InOctober2015,thePapuaDeputyGovernor,KlemenTinal,spokeoutagainstcompanies“thatreducethecostofclearingbyburning”.Hesaidthatcompaniescausingforestfiresshouldimmediatelybecloseddown.28However,despitefloutinglaws,byandlargeKorindohasgotawaywithitsforestburning,withonenotableexception:InNovember2015Korindoreceivedapermitsuspensionofsixmonthsduetofiresin2015inoneofitspulpwoodconcessions,PTKorintigaHutani,locatedinCentralKalimantan.29BytheendofFebruary,afterthreemonths,theministerre-instatedKorintiga’slicense.ItwasdecidedthatKorintigahadfulfilleditsobligationsorordersbytheminister.30InMay2016,KorindostatedtotheKoreanweeklymagazineSisaINthatthesuspensionwasduetoadministrativemeasuresbytheIndonesianGovernment“thatwecannotcomprehend”.31In2015,therewere72hotspotsinsidePTKorintigaHutani’sconcession,following43in2014.32Indonesia’sburningproblem

Throughoutlate2015,muchofSoutheastAsiasufferedfromrecordlevelsofhazecausedbyfiresinIndonesia.Theclearingoflandforoilpalm,pulpandpaper,andotheragriculturalcommoditieswasoneofthemainreasonsforthefires.Thehazecrisiscausedmillionsofpeopletosufferrespiratoryillnesses,andtheWorldBankestimateditledtoIndonesiasufferingeconomicdamagesofUSD16billion.33Duetothefires,Indonesia’semissionscontributedmoretoclimatechangein2015thanthoseofJapan,Germany,andSouthKorea,andonmanydaysduringthehazecrisis,Indonesia’scarbonpollutionwashigherthantheemissionsoftheentireUSeconomy.34ThetotalnumberofhotspotsinsideKorindooilpalm,pulpwoodandloggingconcessionsin2015was856,ofwhich495occurredinoilpalmplantationsundergoingdevelopment.TotalfiredetectionsinIndonesiain2015stoodat122,568.35Thismeans0.7%ofthesefiresoccurredinsideKorindoconcessionareas.Thispercentageisparticularlyhigh,consideringthehundredsofforestryandoilpalmcompaniesactiveinIndonesia,andthattheoilpalmandforestrysectorsweretwoofthemainreasonsforthefires.

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Photo:SmokerisingfromburningwoodrowsinthePTBerkatCiptaAbadiconcession

©ArdilesRante/Greenpeace;PTBerkatCiptaAbadi(KorindoGroup);26March2013Photo:WoodrowsstackedbyPTPapuaAgroLestari,readyforburning?

©Mighty,4June2016;Latitude6°45'41.80"S,Longitude140°48'18.78"E

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2.3 Practice:denialofcommunityrights

Customaryrights

On16May2013,theIndonesianConstitutionalCourtruledcertainprovisionsofthe1999IndonesianForestryLawtobeunconstitutionalduetotheirclassificationofcustomaryforestasstateforest,thusimproperlydenyingindigenouscommunitiesrightstotheirlandsinfavorofanownershiprightassertedbytheState.36SomethingKorindo’soilpalmconcessionshaveincommonisthattheyarealllocatedinforestareassubjecttoindigenouspeoples’customaryrights,whichthecentralgovernmenthasreleasedtoKorindoasiftheyweretheirs.However,theConstitutionalCourthasruledthatthesecustomaryforestareasbelongtotheindigenouspeople,thusbringingthelegalityofKorindo’soilpalmconcessionsintoseriousquestion.Korindo’sPTGeloraMandiriMembangunconcessionisoccupyingthefarmlandandforestsofcommunitiesinSouthHalmahera,NorthMaluku.Mostofthecommunities,whoallhavelivedthereforhundredsofyears,arestronglyopposedtotheoilpalmplantation.Korindoisdisregardingtheircustomaryrightsbycontinuingtooperatethere.ThiscaseisdescribedinmoredetailinSection4.1.Photo:SignonhouseinGaneDalamvillagetellingPTGMM(Korindo)toleave

©RainforestActionNetwork,May2016.InPapua,Korindousuallyseemstomakeagreementswiththeownersofcustomaryoradatforests.Thisdoesnotmean,however,thatKorindohasrecognizedtherightoflocalcommunitiestogiveorwithholdtheirFree,PriorandInformedConsent(FPIC)toanynewdevelopmentsoncommunitylands:- InthecaseofPTDonginPrabhawa,anagreementwasmadein2012afterKorindohadalready

commencedoilpalmoperationsinlate2010.Despitetheagreement,theindigenousNggutipeopleregrettedtheforestsandswampstheyhadpreviouslyusedforhuntingandgatheringbeingreplaced.37

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- InthecaseofKorindo’sPTTunasSawaErma1A(PTTSE1A),elevenclanswithtraditionallandscoveringmorethan7,000hectaresagreedtotheoilpalmdevelopmentin2005,butlaterstatedtheyhadnotbeenadequatelyinformed.38

- The25clansowningmorethan12,000hectaresinthePTTSE1Aconcessionarearejectedtheplantationproposalin2006.Korindohadrespectedtheirrejection,39butin2015,developmentstartedinthispartoftheconcessionarea,apparentlyduetoanagreementwiththelandowners.

SocialissuesinPapua

ThereislittleinformationpubliclyavailableeitherontheplightoflaborersontheplantationsoronthepeoplelivingadjacenttoKorindo’sconcessionsinPapua.Thisiswhatweknowfromtheinformationavailable:- ThePapuanNGOYayasanPusakareportedinJune2016thatPTTSE1Athreatenedtolayoffthree

workers.ThethreeworkersheldademonstrationtogetherwithhundredsofnativePapuanworkersinfrontofthePTTSE1AofficeinMay2016.Theworkersprotestedthecompanypayinglittleattentiontocareers,capacitybuildingandraisingtechnologicalknowledgeforPapuanworkers.ItappearsKorindohasnotacceptedtheworkers'protestsanddemands.40In2010,only13%ofthe3,400peopleemployedbyPTTSE1Aand1BwereindigenousPapuans.ThegreatmajorityofemployeesweremigrantsfromotherregionsofIndonesia.41

- InJanuary/February2014,theIndonesianorganizationJPICMSCIndonesiaconductedafieldinvestigationintothePTDonginPrabhawaconcession.Itfoundanumberofhumanrightsviolationsbythecompanyandbythepoliceandmilitaryondutyinthecompany’sworkarea.Employeesandcasuallaborershadnoaccesstocleandrinkingwater,andhadreceivednogroceriesfromPTDonginPrabawaforthreemonths.Policeofficerswereinvolvedinsellingconfiscatedliquorandgambling.In2013,aPTDonginPrabhawaemployeewasarrestedandallegedlytorturedbyamemberofthearmedforces.TheUK-basedNGOBusiness&HumanRightsResourceCentreinvitedKorindotorespondtotheallegations,butnoresponsewasforthcoming.42

- InApril2010,theCenterforInternationalForestryResearch(CIFOR)interviewed97workers,customarylandowners,andpeoplelivingadjacenttothePTTSE1Aand1Bplantations.Allthreerespondentgroupssaidtheplantationhadreducedtheirincomefromforestproducts,andtheirabilitytocollectwoodforhousingandfuel.Thelandownersinparticularnotedthediminishedaccesstofoodandincomefromforestresources.Frombeingself-sufficienttheyhadbecomedependentonsubsidizedricetofulfilltheirfoodrequirements.Over60%oflandownersandpeopleinthevicinityoftheseplantationsreportedreducedwaterquality.Bothgroupsusedriverandlakewaterfordrinking,bathingandfishing.43

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2.4 Forestsatriskofbeingcleared

Currently,75,000hectaresofforestsremaininKorindo’sconcessions.Theseforestsareathighriskofbeingcleared.ThefourplantationscurrentlybeingdevelopedbyKorindo(PTPAL,PTGMM,PTTSE1BandPTDP)stillhave29,300hectaresofprimaryforestand11,300hectaresofsecondaryforest.ItiscommonpracticeamongoilpalmcompaniestoidentifyandconserveHighConservationValue(HCV)areaswithintheirconcessions.SignatoriestoNoDeforestation,NoPeat,NoExploitation(NoDeforestation)policiesevengoonestepfurther,identifyingandconservingHighCarbonStock(HCS)areasaswell.Sofar,Korindohasshownlittleornoefforttoconserveanysignificantareasinsideitsconcessions.Theareasithasdevelopedsofarhavebeencompletelycleared,withtheexceptionofanoccasionalriverbufferorsmallpatchofforest.KorindohasyettostartdevelopingthePTTSE2andPTBCA2concessions;areasthatcurrentlyhave11,400hectaresofprimaryforestand21,400hectaresofsecondaryforest.Figure5.Remainingat-riskforestsinKorindo’sconcessionsasofMay2016(hectares)

Source:Landsat8imagery,comparedwithIndonesianMinistryofForestryforestcovermapsfor2011,andinthecaseofPTDPforestcovermapsfor2009

PAL BCA1 GMM TSE1B DP TSE1A TSE2 BCA2 TotalSecondaryforests 1,100 700 2,800 6,400 1,000 900 16,100 5,300 34,300

Primaryforests 26,500 0 0 700 2,100 0 2,600 8,800 40,700

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

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2.5 Commitments

Nosustainabilitypolicyforoilpalm

Korindohaspublishednospecificsustainabilitypolicieswithregardtoitsoilpalmandforestryoperations,andisnotevenoneofthe2,800membersoftheRoundtableonSustainablePalmOil(RSPO).44OntheKorindowebsite,ChairmanoftheKorindoGroup,SeungEun-ho,says,“TheKORINDOGroupisreachingouttotheworldtoemphasizeitsroleasanenvironmentallyfriendlycompany.”45Thecompanyhasalsoputapromotionalvideoonitswebsite,inwhichitprofilesthecompanyasensuringa“greentomorrow”.46In2015,thecompanydidengageinseveralenvironmentalprojects,suchascleaningtheCiliwungriverthroughthecityofBogorinWestJava,donating50,000seedlingstoEastTimor,anddonatingIDR1billion(approximatelyUSD74,000)toanenvironmentalorganizationPaguyubanBudiasiforvariousactivities.47ItisalsocurrentlybuildingahealthclinicinAsiki,Papua.48Suchmeasurescannot,however,substituteforthelackofastrongsustainabilitypolicyorthenegativeenvironmentalandhumanrightsimpactsofKorindo’soperations.MajorcustomerswithNoDeforestation,NoPeat,NoExploitation(NoDeforestation)policies

WilmarandMusimMas,whichwerebothmajordirectbuyersofKorindooilpalm,haveadoptedNoDeforestation,NoPeat,NoExploitationpolicies(hereinafterNoDeforestationpolicies).Wilmar,theworld’slargestoilpalmtrader,wasthefirsttoannouncesuchapolicy,inDecember2013.49MusimMasadopteditspolicyinDecember2014.50CompaniesthathaveadoptedNoDeforestationpoliciescommitthemselvestoanumberofactionsincluding:- EndingalldeforestationandconservingHighConservationValue(HCV)areasandHighCarbonStock

(HCS)areas(usingtheHighCarbonStockapproach);- Protectingallpeatlands(regardlessofdepth);- RecognizingtherightoflocalcommunitiestogiveorwithholdtheirFree,PriorandInformed

Consent(FPIC)toanynewdevelopments;- ComplyingwiththefundamentalconventionsoftheInternationalLabourOrganisation(ILO)51and

upholdingthewiderUnitedNationsGuidingPrinciplesonBusinessandHumanRights.52Thepoliciesapplytoasignatory’sownplantationoperationsandtheirthird-partysuppliers.Whenasupplierisfoundtobenon-compliant,thetraders’procurementandsustainabilityteamstypicallyengagewiththesuppliertoexplainthepurposeandimpactoftheirNoDeforestationpolicy.Ifthesupplierisfoundtobedevelopinglandincontested(forest,peat,conflict)areas,itistypicallyrequestedtoissuea“stop-workorder”untilrelevant(HCV,HCS)studiesarecompletedand/orlandconflictsareresolved.Suppliergroupswhofailtoenforcesuch“stop-workorders”runaparticularlyhighriskofseeingtheirtradewithNoDeforestationpolicysignatoriessuspendedorceased.Asthisreportdetailsbelow,KorindocompanieshaverepeatedlyandegregiouslyviolatedbothWilmarandMusimMas’NoDeforestationpolicies,despiterepeatedwarningsfrombothcompaniesthattheymustchangetheirpractices.Asaconsequence,KorindohaslostWilmarandMusimMasascustomers,whichwillhaveaseriousimpactonKorindo’snetincome.Dozensofothercompaniesacrossthepalmoilsupplychainhaveadoptedstrongconservationpolicies,includingthemajortradersApicalGroup53,GoldenAgri-Resources54andADM,55aswellasmajorproducerssuchasAstraAgroLestari,FirstResources,andBumitama.Together,NoDeforestationsignatoriescoverthevastmajorityofthegloballytradedpalmoilmarket.56Thepacesettoensure

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suppliers’complianceisthecriticalfactorastowhethertheadoptedpolicieshaveabigimpactontheground.PTTunasSawaErma(PTTSE)announcesmoratorium

Recently,afterbeingengagedonsustainabilitymattersbyMusimMas57andWilmar,Korindo’ssubsidiaryPTTunasSawaErma(PTTSE)hasdeclaredathree-monthmoratoriumonitsnewlanddevelopments.PTTSEannouncedthisinalocalnewspaperon9August2016(seephotobelow).DuringthethreemonthsPTTSEplanstoestablishacomprehensiveNoDeforestation,NoPeat,andNoExploitationpolicyandconductstakeholderengagement.PTTSEcontrolsthreeplantations.PTTSE1Aisalreadyplantedwithoilpalm,forPTTSE1Bclearingactivitiesweregoingonin2016,forPTTSE2nodevelopmenthasbeenstartedyet.AsofMay2016around25,000hectaresofforestswereremainingintheplantationsofPTTSE1BandPTTSE2.SubjectingPTTSEtoaNoDeforestationpolicywouldbringaboutsignificantbenefitsforecologyandthecommunities,ascomparedtopreviousdevelopedoilpalmplantationsbyKorindo.Korindo’ssubsidiariesPTGMMandPTPALarepresentlyalsodevelopingoilpalmplantations.Yet,forthesecompaniesKorindohasnotdeclaredamoratoriumandhasnotannouncedaNoDeforestationpolicy.Perhapsthefactthatthesetwoplantationcompaniesare15%ownedbytheKoreancompanyHyosung(incontrasttoPTTSE,whichisa100%Korindocompany)hassomethingtodowiththis.KorindohasalsonotdeclaredaNodeforestationpolicyforitswood-relatedbusinesses.Photo.TheannouncementbyPTTSEinalocalnewspaperon9August2016

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3. (Former)CustomersofKorindooilpalmSupplychaintransparency

Sixmajorglobalpalmoiltraders/processorshavecommittedthemselvestosupplychaintransparency.Thesecompanieshavemadeinformationpubliclyavailableregardingwhichmillstheysourcetheirpalmoil(CrudePalmOiland/orPalmKernel)from.Fromtheinformationthesecompanieshaveprovideditappearsthatfourlargepalmoiltraders/processors:Wilmar,MusimMas,ADMandIOIweresourcingpalmoilfromKorindorecently.However,WilmarandMusimMashavestoppedsourcingfromKorindoasofJuly/August2016.IOIandADMdidnotsourcedirectlyfromKorindo,andhavebeenbuyingKorindopalmoilfromWilmarand/orMusimMas.Presently,itisuncleartowhichcompaniesKorindosellsitspalmoil.Table2.KnownFormerCustomersofKorindo’sPapuanOilPalm

Processor Processingunit ProcessingunitlocationPeriodforwhichcompaniesrevealedsupplychains

MusimMas58PTAMR,BitungPTAMR,Madidir

NorthSulawesi,Indonesia 2015

Wilmar59PTMNS,BitungPTWINA,GresikPTSAP,Palembang

NorthSulawesi,IndonesiaEastJava,IndonesiaSouthSumatra,Indonesia

January-Dec2015

ADM(indirectly)60

ADMEurope,SIOADMNorthAmerica(allfacilities)ADMEurope,CzerninADMEurope,NobleeADMEurope,Purfleet

FranceNorthAmericaPolandGermanyUK

July2015–Sept2015

IOILodersCroklaan(indirectly)61

ChannahonRexdaleRotterdamWormerveer

USACanadaNetherlandsNetherlands

1Q2016

WheredidKorindo’sproduceendup?Table2aboveshowsthatKorindo’sproduceendedupatEuropeanandNorthAmericanmarketsthroughADMandIOILodersCroklaan.Inaddition,refineriesinthefollowingcountriesweresourcingfromWilmar’sprocessingunitsPTMNS,PTWINAandPTSAP:ChinaandIndia(bothvariouslocations),Netherlands(RotterdamandRozenburg),Germany(Brake)andtheUnitedStates(Stockton).62Allinall,untilrecently,theendconsumersofKorindo’spalmoilcouldbefoundinatleastEurope,NorthAmerica,ChinaandIndia.

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4. Issuesbyplantationcompany

4.1 PTGeloraMandiriMembangun

Socialissues

Korindo’sPTGMMhasfailedtorecognizetherightoflocalcommunitiestogiveorwithholdtheirFree,PriorandInformedConsent(FPIC)toanynewdevelopmentsoncommunitylands.Fromtheoutsetoftheproject,thecommunitieshavebeeninadequatelyinformed.InJanuary2012,residentsdemonstrated,demandinganendtoPTGMMoperations.Inthemiddleof2013,theconflictescalatedwiththearrest/criminalizationof13villagersfromGaneDalamandSekelybytheSouthHalmaherapoliceoveralandconflictwithPTGMM.Residentsfiledacomplaintalleginghumanrightsviolationsoverthedetentionofthe13villagers.ThistriggeredaninvestigationbytheIndonesianHumanRightsCommission(KomnasHAM),whichmadeastatementemphasizingthat,whenmakinginvestments,governmentsandcompaniesshouldconsiderthatindigenouspeoples’livesarehighlydependentonnaturalresources.Thecommissionfurthernotedthatthereportingof13villagerstothepolicehadhadanadverseeffectoncommunicationsbetweenthecompanyandthecommunities,andthatingeneralthepresenceofthecompanyhadcausedinsecurityanddisruptedpeople'slives.63InFebruary2016,theconflictbetweenvillagersandthecompanyflaredupagain.Thecompanyevictedpeoplefromtheirproductivefarmland,andthreatenedthosewhorefusedtoleave.Italsopressuredpeopleintogivinguptheirlandatpricessetbythecompany.64On11May2016,theNorthMalukubranchoftheIndonesianenvironmentalNGOWalhiannounceditwouldsueKorindooveranumberofissues,includingrestrictingcommunityaccesstocleanwater,notfulfillingEnvironmentalImpactAssessment(EIA)procedures,itslackofaRighttoExploit(HGU,HakGunaUsaha)permit,plantingoilpalmonsteepslopes,burning,anddisregardingcommunities’customaryrights.65InMay2016,villagersfromGaneDalam,Jibubu,Pasipalele,Sekely,andGaneLuarsubmittedaformallettertotheNationalLandAgency(BPN),rejectingtheprojectandaskingtheheadofBPNnottoissueanHGU.66On5August2016KorindostartedloggingintheareaalongtheriverDukolo,despiteanearlieragreementwiththecommunityGaneLuarnottodoso.TheagreementwasmadeinApril2015inattendanceofthepolice.Theriveristhesourceofcleanwaterforthecommunity.67Hotspotsanddeforestation

BythebeginningofDecember2015,PTGMMhadalreadycleared5,200hectares.Clearingcontinuedin2016,increasingto6,100hectaresbytheendofApril.68Theareaofsecondaryforestlosttoclearingamountedto5,100hectares.Therehavebeenmanyfiresinthearea,suggestingaseriousriskthatKorindohasviolatedIndonesia’slawsagainstburning.Asmanyas127hotspotswererecordedin2014and2015(106in2014and21in2015),whereasin2013,priortoKorindo’slanddevelopment,therehadbeennone.InSeptember2015,firesinsidetheKorindoconcessionspreadtofarmlandbelongingtovillagersfromSekely.Thecompanytooknoaction.Instead,itaccusedthevillagerreportingthefiresofaccidentlyburninghisownfarmland.69InMay2016,TomPickenoftheUS-basedNGORainforestActionNetworkconductedafieldinvestigationintheconcessionarea.Hestatedthat“ManyvillagersconfirmedthattheKorindoGroupexpandsoilpalmplantationsthroughtheuseoffire.”70

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Figure6.Hotspotsin2014and2015inareasclearedbyPTGMM

Sources:Landsat8imagery:3to11December2015.FIRMS,http://go.nasa.gov/27awNFgPhoto:ClearedforestsandhazewithinKorindo’sPTGMMconcession

©Walhi,November2014.

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4.2 PTPapuaAgroLestari

Clearanceofprimaryforestin2015

LanddevelopmentbyPTPapuaAgroLestari(PTPAL)beganafterApril2015.Theconcessionareacomprises32,300hectares,ofwhich94%containedprimaryforest.Bytheendof2015,some2,600hectaresofprimaryforesthadalreadybeencleared.71Theclearingwasaccompaniedbyfireswithatotalof221hotspotsrecordedbetweenAugustandNovember2015.Intheyears2013and2014,priortolanddevelopment,therehadbeennone.Figure7.FiresraginginthePTPapuaAgroLestariconcession,September2015

Sources:Imageleft,Landsat8imagery,6to14September2015.Imageright,Landsat8imagery,22to30September2015Clearingcontinuingin2016

BylateDecember2015,PTPALhadcarvedoutplantationblocksin2,300hectaresofprimaryforesteastoftheclearedareaaspartofpreparationsfordevelopingtheoilpalmplantation.BythefirstweekofJune2016,1,200hectaresofprimaryforesthadalreadybeenclearedinsidethenewplantationblocks.72ThesatelliteimagerybelowfromJune2016alsoshowsnoriparianbuffersaroundthefloodarea.ThismeanstherehasbeennoproperassessmentofHighConservationValue(HCV)areas.

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Figure8.Clearingcontinuingin2016(clearedareasmarkedinorange)

Source:Landsat8imagery

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4.3 PTBerkatCiptaAbadi1

Forestloss

TheentirePTBCA1concessionareawasforestedbeforeKorindostarteditsoilpalmoperations.During2013and2014,atotalof4,500hectaresofprimaryforestwerecleared,alongwith8,700hectaresofsecondaryforest.Onlyarivercorridorof700hectareswasspared,asshowninFigure9below.Figure9.PTBCA1forestlossin2013and2014

Sources:IndonesianMinistryofForestryforestcovermapsfor2011;Landsat8imageryfor22to30September2015.

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Hotspotpattern

Forestclearanceandoilpalmplantingtookplacein2013and2014insidethePTBerkatCiptaAbadi1(PTBCA1)concessionarea.Landdevelopmentbeganinthenorthandendedinthesouth.Hotspotsfolloweddeforestationandsubsequentlanddevelopment.Intotal,106hotspotswererecordedin2013and2014(19in2013and97in2014).In2015,afterthelandhadbeenfullydeveloped,onlyonehotspotwasrecorded.73Inaletterdated22June2011,theIndonesianMinistryofForestryspecificallyprohibitedPTBCAfromburningwoodwaste,whenitreleasedforestlandtoPTBCA1thatyear.74Burningwouldhavebeenillegalanyway,yetKorindoalsoignoredthisextrawarning.Figure10.PTBCAhotspotpatternin2013and2014

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4.4 PTTunasSawaErma1B

Northernsection:alreadydevelopedby2008

PTTunasSawaErma1B(PTTSE1B),whichholdsanareaof19,000hectares,beganworkingin2005.ItapproachedinhabitantsinthevillagesofGetentiriandUjungKia,andidentifiedtheclansthatownedtheland.ClansfromtheAuyuJairtribeowncustomarylandinbothvillages.InGetentirivillage,11clanshavetraditionallandscoveringmorethan7,000hainthenorthernpartoftheconcessionarea.On25August2005,atraditionalceremonycalledUpacaraDermaAdatwasheldinGetentirivillagetomarktheestablishmentoftheoilpalmplantation.By2008,7,000hectareshadbeenplantedwithoilpalm.75Southernsection:newdevelopmentrecentlystarted

IntheSouthernpartoftheconcessionarea,25AuyuJairtribeclansownmorethan12,000hectaresofland.On22March2006,thelandownersinUjungKiarejectedtheplantationproposal.76Nevertheless,landclearingcommencedintheSouthernpartoftheconcessionareain2015.Alongwiththisdevelopment,88hotspotswererecordedin2015withafurther6inJanuary2016(seethemassivefiresshowninFigure11below).BytheendofApril2016,some2,800hectareshadbeencleared(seethebrownishcolorontherighthandimageinbelow)comprising500hectaresofprimaryforestand2,300hectaresofsecondaryforest.77Figure11.PTTSE1B,newdevelopmentsince2015

Sources:Left:Landsat8imageryfor24October2015to1November2015.Right:Sentinel-2image,11May2016

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Remainingforests

InMay2016,mostoftheundevelopedareainthePTTSE1Bconcessionwascoveredwithprimaryandsecondaryforest,asisshownbyFigure12below.Theremainingforeststandscomprise700hectaresofprimaryforestand6,400hectaresofsecondaryforest.Theseareatimminentriskofdestruction.Figure12.RemainingforestinPTTSE1BconcessionasofMay2016

Sources:Sentinel-2satelliteimagefor11May2016andIndonesianMinistryofForestryforestcovermapsfor2011

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4.5 PTDonghinPrabhawa

24,000hectaresalreadyplanted

LanddevelopmentbyKorindo’sPTDonghinPrabhawa(PTDP)commencedattheendof2010.Bytheendof2015,ithadalreadyplanted24,200hectares.Atotalof6,700hectaresofforestwereclearedintheperiodfrom2011toMay2016,2,900hectaresofwhichwasprimaryforest.78AsofMay2016,thewesternsideofthePTDPconcessionhadnotbeencleared.Approximately2,100hectaresofprimaryforestand1,000hectaresofsecondaryforestremained,asisshowninFigure13.Figure13.RemainingforestinthePTDPconcessionasofMay2016

Source:IndonesianMinistryofForestryforestcovermapsfor2009Fireanalysis

Figure14belowshowsthehotspotsrecordedin2013,2014and2015,eachoverlaidwithsatelliteimagesoftheirrespectiveyears.PTDP’sdevelopmenthasbeenaccompaniedbyfires.Intotal,351hotspotswererecordedinthePTDPconcessionduringtheperiodfrom2013to2015(43in2013,144in2014and164in2015).Firestypicallyfollowedafewmonthsafterdeforestation,makingitclearthatKorindousedfiretoclearbiomassfromthelandinpreparationforplanting.

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Figure14.Hotspotsin2013,2014and2015

Sources:Landsat8imageryfor21to29August2013,24Octoberto1November2014,and16to26June2015respectively.FireInformationforResourceManagementSystem(FIRMS),http://go.nasa.gov/27awNFg

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Hotspotdatawasretrievedfortheareainsidetheorangerectangle.Figure14aboveshowsthatduringtheperiodfrom2013to2015,therewerealmostnofiresintheforestedareasurroundingtheplantationdevelopment,andalsonofiresintheareasthathadalreadybeenplantedwithoilpalm.Thisshowsthatfiresoccurredonlyduringthelandclearingstage,withthevastmajorityoffiresoccurringduringthedryseasonbetweenJulyandOctober.Figure15belowshowsallthehotspotsrecordedintheperiodfrom2013to2016.In2016,12hotspotshadbeenrecordedbymidMay.Figure15.HotspotsinthePTDPconcession,2013–2016

Sources:Landsat8imageryfor8to16May2016.FireInformationforResourceManagementSystem(FIRMS),http://go.nasa.gov/27awNFg

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4.6 Daewoo’sPTBioIntiAgrindo

TheKoreanconglomerateDaewoo(recentlyrenamedPoscoDaewoo)hasanoilpalmconcessionadjacenttoKorindo’s.Figure16belowshowsKorindoplantationsmarkedinorange,whileDaewoo’sismarkedinred.Daewoo’splantationcompany,calledPTBioIntiAgrindo(PTBIA),islocatedinMeraukedistrict,andaccordingtoitsforestlandreleasepermit,coversanareaof36,400hectares.79Daewoohasrecentlyconfirmed(May2016)thatitgetsadvicefromKorindowithregardtoitsplantationoperations.80Daewooacquiredan85%stakeinPTBIAinSeptember2011.81Theowneroftheremaining15%ofthecompanyisunknown,thoughinalllikelihooditisKorindo.Figure16.LocationsofDaewoo’sPTBioIntiAgrindoplantationcompany(markedinred)

Exclusionfromtheworld’slargestsovereignwealthfund

Theworld’slargestsovereignwealthfund,theNorwegianGovernmentPensionFundGlobal(theFund),isamajorplayerinthefieldofSociallyResponsibleInvesting(SRI).On17August2015,itannouncedtheexclusionofDaewooanditsparentcompanyPOSCO,becausePTBIArepresentedanunacceptableriskofsevereenvironmentaldamage.82Earlier,theFundhadalreadydivestedfrom27palmoilcompaniesonaccountoftheir“unsustainableproductionpractices”.83Increasingly,theFundseescompaniesandsectorswith“unsustainablesocialandenvironmentalpractices”asarisktoitslong-termfinancialobjectives,andhascompletedstrategicsalesofequitiesinthepalmoil,coal,andminingsectors.Hotspots

AswithKorindo’splantationcompanies,withPTBIAallevidencealsopointstothesystematicuseoffireduringitslandclearingprocesses.ClearingofPTBIA’s6,800-hectarewesternblockcommencedin2012,continuedin2013andfinishedin2014.Figure17showsthecorrelationbetweendeforestationandthefiresinthewesternblock,aspublishedonthewebsiteAwasMIFEEinNovember2015.84Thepurplecolormarksdeforestation,whilethefiresareshowninorange.

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Figure17.DeforestationandfiresinthewesternblockofPTBIAin2012,2013and2014

Source:AwasMifee,Meraukeburns,butweretheplantationstoblame?,20November2015,http://bit.ly/28LFIFf.InSeptemberandOctober2015,158hotspotswererecordedintheconcession’s29,400-hectareeasternblock,concentratedintheareathatwasdeforestedearlierthatyear.ThesatelliteimageinFigure18belowalsoshowstwolargefires,togethercoveringmorethan200hectares.Figure18.HotspotsinthePTBIAconcessionareainSeptemberandOctober2015

Sources:Landsat8imagery22to30September2015.FIRMS,http://go.nasa.gov/27awNFg.Deforestation

AccordingtoIndonesianMinistryofEnvironmentandForestryforestcovermaps,thePTBIAconcessionareacomprised19,800hectaresofprimaryforest,15,900hectaresofsecondaryforestand500hectaresofwaterwaysin2011.WhilePTBIA’swesternblockhadbeenfullyconvertedtooilpalmplantationbytheendof2014,deforestationiscurrentlyongoinginitseasternblock.Figure19belowshowstheareaoftheeasternblockclearedbyMay2016.Theareasmarkedinorange(atotalof3,300hectares)wereclearedinthe8-monthperiodfromOctober2015toMay2016.InMay2016,approximately16,000hectaresofforestwasstillstandinginsidethePTBIAconcessionarea,morethan9,000hectaresofwhichwasprimaryforest.85Thismeansthatsince2012,Daewoohasdeforestedmorethan10,000hectaresofprimaryand9,000hectaresofsecondaryforest.

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Figure19.AreaclearedinPTBIA’seasternblockbyMay2016

Sources:Landsat7imageryfor8Mayto9June2016.Landsat8imageryfor22to30September2015Photo:PTBIA,Westernblock

©Mighty;5June2016;Latitude6°54'53.46"S,Longitude140°28'26.20"E

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5. Korindocompanyprofile

5.1 Businessesandownership

Korindohasaround20,000employeesandcomprisesmorethan30affiliatedcompanies.Itsmainbusinessesareinnaturalresourceswithoperationsinvolvinglogging,pulpwoodandoilpalmconcessions,aswellasplywood,woodchipandpalmoilproduction.OtherKorindobusinessesincludenewsprintpapermanufacturing,heavyindustriesincludingwindtowers,financing,andrealestate.86Itsrevenuesarenotdisclosed.Photo:TheKorindoofficetowerinJakarta

Source:Flickr,BxHxTxCx,takenon22December2011,http://bit.ly/1t2RjbeAnopaquecompany

Korindoisanopaquecompany.Sinceitisnotapubliccompany,itisnotsubjecttothetransparencyrequirementsofstockexchanges.Korindodoesnotmakeitsannualreportsavailabletothepublic,andthusprovidesnoinformationonbusinessareas,revenuesandearnings.Korindohasacomplexbusinessstructurewith30affiliatedcompaniesoperatinginseveralquitediversebusinesses.ManyofKorindo’sIndonesianaffiliatesareownedbySingaporeorHongKongregisteredcompanies,whicharemostlikelyownedbyothercompaniesinotherjurisdictions.Thoughlinkstothesecompaniesinotherjurisdictionscouldnotbetrackeddown,throughthePanamapapersKorindoChairmanSeungEun-howasfoundtohaveseveralcompaniesregisteredintheBritishVirginIslands.87Thecomplexbusinessstructure,amongotherthings,makesitimpossibletodeterminetheexactownershipofthesebusinessesandwhetherorwherethecompanyfulfilsitstaxobligations.

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Ownership

KorindoismajorityownedbytheSouthKoreanSeungfamily.In1948,theKoreancompanyDongwhaEnterprisewasfoundedbySeungSang-bae,whopassedawayin2009.88Sincethemid-1960s,DongwhahasimportedtimberfromIndonesia,Malaysiaandothercountries.SeungSang-bae’sson,SeungEun-hotravelledtoIndonesiain1969insearchofhigherqualitytimber.In1970,DongwhaboughtaloggingconcessioninKalimantanandestablishedanIndonesiancompany.In1976,theKorindoGroupwaslaunched,itsnamebeingacompositeofthewordsKoreaandIndonesia.89SeungEun-horemainedinIndonesiaastheChiefExecutiveOfficer(CEO)ofKorindo,extendingbusinessoperationstoothersectors,suchasplywoodandnewsprint,andlateraddingheavymachineryandoilpalm.SeungEun-hohasbeenreportedasbeingtheChairmanandCEOofKorindo.90However,severaldocumentsshowhimcurrentlyactingasChairman,whileBeomSoo(Robert)SeungisnamedasCEO.91SeungSang-bae’ssecondson,SeungMyung-hocurrentlyservesasCEOofDongwhaEnterpriseCo.Ltd(Dongwha).Thetotal2015revenueofDongwha,whichislistedontheKoreaStockExchange92,wasKRW675billion,equivalenttoUSD0.6billion.93Thecompanyproducesawiderangeofprocessedwoods,suchasMDF(medium-densityfiberboard)andparticleboard.Italsosellstimberproducts,andownstwoKoreannewspapers(theKoreaTimesandHankookIlbo).94Asof31December2015,SeungEun-ho,theChairmanofKorindo,hada9.3%shareinDongwhaEnterprises.95Inthepast,SeungEun-howasalsoChairmanofDongwhaHoldings.96Now,thebusinessesofDongwhaEnterprisesandKorindoappeartoberunseparatelyandforthemostparthavedifferentowners.Korindo’sbusinessactivities

Figure20belowprovidesanoverviewofKorindo’sbusinessesbasedonitswebsite.97ResourceManagementhasalwaysbeenthemaincomponentofKorindo’soperations,comprisinglogging,timberprocessing(plywood,woodchips),pulpwoodplantationsandoilpalmoperations.Figure20.Korindo’sbusinessesanddivisions

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5.2 Loggingandplywood

OneofthelargestIndonesianplywoodmanufacturers

Korindo’sResourceManagementoperationshavethreegeographicalclusters:AsikiinPapua,PangkalanBuninCentralKalimantanandBalikpapaninEastKalimantan.Thesethreeclustersrepresentthecompany’sloggingandwoodprocessing–predominantlyplywood-operations.KorindoisoneofthelargestplywoodmanufacturersinIndonesia.In2004,itsshareofworldproductionwasestimatedat4%.98Now,however,Indonesiaexportslessplywood,whileglobalplywoodproductionhasincreasedsignificantly.99In2014,Japan(27%),China(26%)andtheMiddleEast(14%)werethemainexportdestinationsforIndonesianplywood.100Korindo’spresentannualplywoodproductioncapacityisintherangeof500,000–800,000cubicmeters(m3).RecentdocumentationbycertificationbodiesstatethatKorindo’stotalplywoodcapacityamountsto772,000m3.101Korindoitselfreportsanannualproductioncapacityof564,000m3onitswebsite,thoughthisseemsoutdatedinformation.102InformationonKorindo’sactualproductionofplywoodisnotpubliclyavailable.Asiki(Papua)

KorindostartedlogginginPapuain1993inits464,000-hectarePTBadeMakmurOrissaloggingconcession.103Atpresent,ithastwoactiveloggingconcessionsinPapua:PTTunasTimberLestariandPTInocinAbadi,withconcessionareasof215,000104and100,000105hectaresrespectively.Figure21belowshowsthelocationsofKorindo’sPapuanloggingconcessions(inred)andoilpalmconcessions(inpurple).ProductionfromthelargePTBadeMakmurOrissaconcessionwaslastreportedfor2012.106ThecompanyPTKorindoAbadiprocesseswoodinAsikivillage.Ithasalicensetoproduce100,000m3ofplywood,100,000m3offilmfacedplywood,and8,000m3ofsawntimberannually.107ItislikelythatKorindousesitsownloggedtimberinthePTKorindoAbadiplywoodfactory.Nevertheless,itprobablyhasthird-partysuppliersaswell.Korindoisalsoathird-partysupplierofproduceunsuitableforplywoodandsawnwoodproduction.Itislikely,forexample,thatKorindosellssomeofitswoodproduceinPapuatothelargePTMedcoPapuaIndustriLestarifactoryinMerauke;afactorywithannualproductioncapacitiesof1,800,000m3forwoodchipsand200,000m3forwoodpellets.TheKoreancompanyLGInternationalhassecureda50%offtakeofoutputanda40%stakeintheproject.108Figure21.LocationsofKorindooperationsinPapua

41

Photo:SignboardsforKorindo’sPTInocinAbadiloggingconcession

©Mighty;4June2016;Latitude6°46'32.46"S,Longitude140°38'32.78"EBalikpapan(EastKalimantan)

PTBalikpapanWanaLestari,formerlyPTBalikpapanForestIndustries,hasa141,000-hectareloggingconcessionspanningthethreedistrictsofPaser,NorthPenajamPaserandWestKutai.109PTBalikpapanForestIndustries’factory,locatedinJeneboravillageinNorthPenajamPaserdistrict,hasannualproductioncapacitiesof100,000m3forplywood,52,000m3forfilmfacedplywoodand7,000m3forsawntimber.110ThecompanyceasedoperationsinDecember2012andlaidoff1,700employeesaftermakinglossesintheperiodfrom2009to2011.Itreopenedin2013withanewworksystem.Reportedly,in2013itsproducewasexportedmainlytoSaudiArabia(55%)andJapan(25%).111Figure22.LocationofKorindooperationsinEastKalimantan

42

PangkalanBun(CentralKalimantan)

KorindocurrentlyhasoneactiveselectiveloggingconcessioninCentralKalimantanbelongingtoPTTrisetiaIntiga.Theconcessioncoversanareaof69,000hectaresandislocatedinLamandaudistrict.112Thesouthernpartoftheconcessionoverlapswithoilpalmplantationscoveringanestimated18,000hectares.AccordingtocertificationbodyPTEqualityIndonesiatherehasbeennoresolutionprocesswithregardtotheoverlappingareas.113ThecompanyPTKorindoAriabimaSarioperatesinthecityofPangkalanBunproducingplywood,filmfacedplywoodandUCP(UrethaneCoatedPlywood).114Itsannualcapacityissaidtobe210,000m3ofplywood,20,000m3ofveneer,137,500m3offilmfacedplywood,72,500m3ofUrethaneCoatedPlywood,24,000m3ofblockboardand16,000m3ofsawntimber.115Inaddition,15,000tonnesofformaldehydeand24,500tonnesofureaformaldehydescanbeused.116AreportinFebruary2016saidthecompanyhad1,228permanentemployeesand645temporaryemployees,andthatKorindoplannedtolayoffhalfofthetemporaryemployees,andreducethepermanentemployees’workinghoursduetoalowerdemandforitsplywoodintheMiddleEast.Workersplannedamassstrikeinresponse.117PTKorindoAriabimaSarialsolikelyhasthird-partysuppliersthatdeliverhigh-qualitytimberneededforplywoodproduction.On1August2016thegovernorofCentralKalimantanprovince,Mr.SugiantoSabran,visitedthefactoryofPTKorindoAriabimaSariinPangkalanBun.Citizenshadbeencomplainingaboutthesmokeanddustcomingfromthefactory’schimneys.Thiscauseditchesandotherillnesses.Thefactoryislocatedneartoadenselypopulatedarea.ThegovernortoldKorindothatitshouldsolvethepollutionproblemwithin6months.Otherwise,sanctionswouldfollow.118Figure23.LocationsofKorindooperationsinCentralKalimantan

43

CustomersofKorindo’splywood

ReportssuggestthatKorindo’splywoodismainlyexportedtotheMiddleEast.119ThecompanyTranscontinentalIndentingCo.LLC(TIC),locatedinDubaiintheUnitedArabEmirates,claimstobetherepresentativeofficeofKorindo’splywoodproductsfortheMiddleEast(excludingSaudiArabia),bookinginexcessof200,000Korindoproductseveryyear.120AnarticleinApril2009statedthatKorindoshipstoallportsintheGulfCooperationCouncil(GCC)region121onamonthlybasisinordertomeetclientneeds.“[Korindo]chartersitsownvesselattheendofeverymonthduetothehighvolumeofordersfromtheirGCCcustomers,”saidTICmanagingdirectorJitendraBhatia.122

5.3 Pulpwood

KorindohasalargepulpwoodconcessioninCentralKalimantanbelongingtoPTKoritingaHutani(PTKTH).The94,000-hectareconcessionareaspansthetwodistrictsofLamandauandWestKotawaringin.123In2014,29,000hectareswereplantedwitheucalyptus(Eucalyptuspellita),25,000hectareswithacacia(Acaciamangium)and2,500hectareswithwaru(Hibiscussimilis).PTKTHalsohasachipmillinPangkalanBunforprocessingitspulpwood.Ithasanannualproductioncapacityof963,636m3forwoodchips.Additionally,thefactoryisabletoproduce265,000m3ofwoodpellets,50,000m3ofveneer,and35,000m3ofsawntimber.124PTKTHcustomersintheperiodfromMaytoNovember2013includedPTTanjungenimLestariPulpandPaper(PTTELPP)ownedbytheJapaneseMarubeniCorporation125,PTAlamAbadiPerkasa(PTAAP),andUDFayarJaya.126TheJapanesepulpandpaperconglomerateOjiHoldingshasa34.34%shareinPTKTH.127ItacquiredthestakeinMarch2010forUSD103million.128ReportsinJuly2013andMarch2014saidsubstantialvolumesofPTKTH’swoodchipswouldbesuppliedtoOjiinJapanforpapermanufacturing.129ThewoodpelletsarelikelyshippedtoKoreaandJapan.130PTBelantaraSuburisanotherKorindopulpwoodconcession.Itcovers16,475hectaresandislocatedadjacenttoKorindo’sPTBalikpapanWanaLestariloggingconcessioninEastKalimantan.131AnewpulpwoodplantationinPapua?

InSeptember2015,KorindoandPapuangovernmentsourcesreportedthatKorindoisconsideringestablishingapulpwoodplantationinPapua.PapuaGovernor,LukasEnembe,andKorindoarebothinterestedinsettingupabiomassplanttogenerateelectricity,combinedwithapulpwoodplantation.Discussionswerealreadyunderwayovertheacquisitionof12,000hectaresoflandinJayapuradistrictandJayapuraMunicipality.Thelocationofthelandunderdiscussionisunclear,sothepresentforestcoversituationalsoremainsvague.However,Jayapuradistrictcurrentlyhassubstantialprimaryandsecondaryforestcover.AccordingtoaKorindospokesperson,10MWofelectricitycouldbegeneratedfrom7,000hectaresofeucalyptus.132

44

5.4 Indonesia’slargestnewsprintmanufacturer

PTAspexKumbong

LocatedinCileungsinearJakartaontheislandofJava,PTAspexKumbong(Aspex),a100%Korindocompany,isIndonesia’slargestnewsprintmanufacturerwithaproductioncapacityof440,000tonnesperyear.133LargeAspexcustomersincludetheIndonesianmediacompanyKompasGramedia-publisherofthenationalKompasnewspaperandregionalTribunnewspapersamongothers134-andtheAustraliancompanyOceanicHolding.135OceanicexportswastepapertoAspex,whichisthenimportedbackintoAustraliaasnewsprint,aswellasgoingtoNewZealandandSouthAfrica.Aspex’snewsprintpaperissaidtobemadefrom100%recycledpapercollectedfromAustralia,NewZealand,theUSAandIndonesia.136Aspexisalsoreportedtoproducepapergradesotherthannewsprint,suchaspaperfornotebooks,textbooksandtelephonedirectories.137LittleInformationwasavailableonthisaspectofAspex’sbusiness;however,itdoeshaveanFSCChainofCustodycertificatefornewsprint,printing&writingandfoodwrappingpaper.138Korindo’sUSsubsidiaryKousaInternationalisAspex’sexclusiveUSpurchasingagent.139Dealinginbothrecoveredandprimepaper,thecompanyissaidtohandlevolumesexceeding200,000tonnesayear.Theprimepapersoldissaidtocomprisenewsprint,telephonedirectorypaper,printing&writingpaperandpaperforotheruses.However,adatabasethattracksshipmentstotheUSrevealednoimportsofpaperbyKousaInternationaltotheUS.Kousa’smostrecentexportofrecycledpapertoPTAspexKumbongwasfromJuly2015.140Taxevasion?

AspexisrelatedtoacaseofallegedtaxevasionbyKorindoChairmanSeungEun-hoandhissons.TheKoreanNationalTaxServicefirstinvestigatedthecaseandreferredittotheSeoulCentralDistrictProsecutors'OfficeinApril2014.Accordingtotheprosecutor,SeungEun-ho,aKoreancitizen,andhissonsallegedlyusedapapercompanysetupinanoverseastaxhavenwiththenamesofotherpeopleinordertoavoidpayingtaxesinKorea.SeunghasreportedlyclaimedthathehasnoreasontopaytaxesinKorea,becauseheiscurrentlynotaresident.TheNTS,however,believedthatheandhissonsstayedinKoreaformorethanoneyearduringthe2-yeartaxationperiod,sotheywouldbeobligedtopaytaxesinaccordancewithKoreanlaw.AsofOctober2014,SeungEun-hohadyettobesummonedforquestioning.141InquiriesintohiswhereaboutsandincomewerestillbeingreportedonaKoreanNationalTaxServicewebsiteinApril2016.142

5.5 Finance

Korindohasa20%shareintheIndonesiancompanyPTNongHyupKorindoSecuritiesIndonesia.143Amongotheractivities,thecompanyisengagedinequitybrokerageandinvestmentbanking.144ItcurrentlyrunsKorindo’sFinanceandSecuritiesbusinesses,whichwerelistedseparatelyonKorindo’swebsitein2010.Themajorityowner,theNongHyupFinancialGroup,isKorea’ssecondlargestfinancialgroupbyassets.145PTMeritzKorindoInsuranceisajointventuregeneralinsurancecompanyinvolvingMeritzFire&MarineInsuranceCompany,Ltd.(51%)andtheKorindoGroup(49%).Thecompanyprovidesseveralinsuranceproducts,suchasfireinsurance,propertyallrisk,marinecargo,contractor/constructionandmotorvehicleinsurance.146

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5.6 Heavyindustry

Accordingtothe2010Korindowebsite,Korindo’sHeavyIndustrybusinesscomprisesfourdivisions:windtowers,foundryforging(steelstructures),specialvehiclesandcommercialvehicles.147Duringthecourseofpreparingthisreport,itwasnotpossibletogetacompleteupdatedpictureofKorindoHeavyIndustryactivities,sotheinformationbelowshouldbeviewedinthatlight.KorindowindtowershavebeeninstalledintheUS,India,AustraliaandNewZealand.TheproductionareaislocatedinCilegoninBantenprovinceonJava.Since2006,Korindohasproducedmorethan1,200towersfortheUSmarket.Korindo’sUSsubsidiaryKousaInternationalistheexclusiveagentforKorindoWind.ThepresidentofKousaInternationalisRickySeung.148CheckingadatabaseofshipmentstotheUS,KousaInternationalwasfoundtohaveimported5,900tonnesofwindtowercomponentsfromPTKorindoHeavyIndustryinFebruary2016,andanother2,000tonnesinApril2016.149KorindowindEnergycustomersincludetheSpanishenergycompanyIberdrola150,theGermancompanySiemens151,theDanishcompanyVestas,theUS-basedcompanyClipperandtheSpanishcompanyGamesa.152Overtheyears,clientsofKorindo’sfoundryandforgingbusinesshaveincludedPTDoosanHeavyIndustries(2010-2012),SookookEngineering(2012),PTKrakatauSteel(2011-2012),PTHanazonoEngineeringIndonesia(2012),PTAdhiKarya/PTGS-Korea(2013-2014),PTFLSmidtIndonesia(2011-2012),PTJGCIndonesia;asubsidiaryofJapanGasCorporation(2012),andSWC-BREJO(2012).153ItappearsthisareaofKorindo’sbusinesshasnothadmanyclientssince2012.Ofthoseclientslisted,manytypicallystemfromSouthKoreaandJapan.Recently,KorindoHeavyIndustryhasalsoworkedontheconstructionofitsownCPOMillsforPTDonginPrabhawaandPTBerkatCiptaAbadi.154KorindoEnergy(Singapore)Pte.Ltd.wasincorporatedinSingaporeon3November2010,andwasnotlistedonKorindo’s2010website.155Itprovidesengineservicesforthemarineandenergysectors,anditsbrochurereferstoalonglistofclients;mainlyinthemarinesector.156In2007,KorindobecameHyundai’sassemblypartnerfortheproductionoftrucksandbuses.ItestablishedaplantinBantenprovinceinthewesternpartofJavaafterinvestingUSD25million.157Hyundaiendedthecontractin2012.158AccordingtoKorindo’s2010website,KorindoHeavyIndustryproducedautomobilecomponentsforawiderangeofcustomersatitsplantinTangeranginBantenprovince.159TheIndonesianconglomerateBakrie&Brothersacquiredthecompanyin2012or2013160,thoughsomepartsofthecompanystillappeartoexist.InMarch2015,ChenChongKyong,oneofthedirectorsofKorindoMotors(alsolocatedinTangerang)wasarrestedforallegedinvolvementinacorruptioncasesurroundingthegovernment’sprocurementofTransjakartabusesin2013.161KorindoSpecialVehicles’businessboastsawiderangeofcustomersaccordingtothe2010Korindowebsite.Thesecustomersaremainlytransportationandminingcompanies.162

5.7 Coalmining

Korindoholdsastakeofatleast30.6%inalargecoalprojectlocatedinKapuasdistrictinCentralKalimantan.Estimatedreservesare337milliontonnesofbituminouscoal,andestimatedannualproductioncapacityis4milliontonnes.However,delaysinobtainingthenecessarypermitsfromtheIndonesiangovernmenthavemeanttheprojectbeingunabletostart.163

46

5.8 Smallerbusinesses

SomeofKorindo’ssmallercompaniesinclude:- PTDongbangDevelopment-thisisthecompanybehindKorindo’srealestatebusiness.Itmanages

the16-floorWismaKorindoofficetowerinJakarta,and163apartmentsforleasetoexternalsandemployees.164

- PTMagnaDigitalLab-thiscompanyfocusesondigitalapplications.165- PTSeparindoIndustry-thisisKorindo’sbatteryseparatorbusiness,locatedinCileungsi,near

JakartaonJava.166- PTBumiIndawaNiaga-atradingcompany.- PTKorindoKonstruksi-aconstructionservicescompany.167- Onitswebsite,Korindostatesthatitalsohasarubberplantation,butnoinformationonthisrubber

plantationcouldbefound.

47

Conclusion

Korindo’soilpalmpracticesfloutIndonesianlaw.AllevidencepointstosystematicandwidespreaduseoffirebyKorindoduringlandclearingprocesses.ThisisillegalinIndonesia.KorindowasalargecontributortoIndonesia’shazedisasterin2015accountingforalmost1%ofallfires.Korindo’soilpalmpracticesfallfarshortofthesustainabilitycommitmentsmadebythemaincompaniesthatgrow,refine,andtradepalmoil.Korindois,therefore,atseriousriskoflosingitsmainoilpalmcustomers.TwoofKorindo’smaincustomers,WilmarandMusimMas,haverecentlyalreadystoppedsourcingfromKorindo.NoteventherelativelylaxstandardsoftheRoundtableonSustainablePalmOil(RSPO)allowtheclearingofprimaryforests,whichKorindoisdoing.ThemaincompaniesintheoilpalmsupplychaindemandmuchhigherstandardsthanthoseoftheRSPO.ClearlyKorindodoesnotrespectthecustomaryrightsofcommunitiesinNorthMalukuthathavebeenlivingintheregionforhundredsofyears.Korindoshouldreturnthelandtheretoitsowners.KorindoispassingitshazardouspracticesontootherKoreanconglomerateslikePoscoDaewoo.ItisalsosettingadangerousprecedentforcommercialexploitationinPapua,hometothelargestremainingtractsofpristinerainforestinIndonesia.Inadditiontoitspracticesofdeforestationandburning,thecompanyisalsosurroundedbyallegationsoftaxevasionandcorruption.Korindoisanextremelyopaquecompany.Itshouldembracetransparency,soitscustomers,investorsandglobalconsumerscanassesswhetheritsactionsliveuptoitsdubiousclaimsofbeinga“green”company.Photo:ClearingofprimaryforestsbyPTPapuaAgroLestari(Korindo).

©Mighty(dronephoto);4June2016;Latitude6°45'42.90"S,Longitude140°48'28.38"E.Credit:YudhiMahendra

48

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49

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Wilmar,NoDeforestation,NoPeat,NoExploitationpolicy,5December2013,http://bit.ly/1hDCOBB50 MusimMasGroup,MusimMasaffirmsitscommitmenttosustainability,4December2014,http://bit.ly/1vyEi9C

MusimMasGroup,SustainabilityPolicy,December2014,http://bit.ly/1vyEi9C51 UnitedNations,InternationalLabourOrganization,ConventionsandRecommendations,http://bit.ly/1FiYJYd52 UnitedNations,OfficeoftheHighCommissionerforHumanRights(OHCHR),UNGuidingprinciplesonbusinessandhuman

rights,2011,http://bit.ly/18WbEUy53 ApicalGroup,SustainabilityPolicy,September2014,http://bit.ly/1SOdxDz

ApicalGroup,Apicalpalmoilsourcingpolicy,12October2015,http://bit.ly/1NsO7i454 GoldenAgri-ResourcesLtd,GARSocialandEnvironmentalPolicy(GSEP),2016,http://bit.ly/1Wuv7lX55 ADM,OurCommitmenttoNo-Deforestation,March2015,http://bit.ly/1PKKgbe

ADM,Sustainabilityprogresstracker,Palmoil,http://bit.ly/27j5gBz(accessed13May2016)56 Unilever,Leadingmarkettransformationinpalmoil,http://bit.ly/1AHHFgU57 MusimMas,TunasSawaErma:amoratoriumondevelopmentwithimmediateeffect,9August2016,http://bit.ly/2bxHvRC58 MusimMas,Supplychainmap,AgroMakmurRaya,Madidir,http://bit.ly/29zkk9C

MusimMas,Supplychainmap,AgroMakmurRaya,Bitung,http://bit.ly/29likNu59 WilmarInternational,Supplychainmap,http://bit.ly/1UXR0t3

50

60 ADM,SustainabilityProgressTracker,PalmOil,SupplyChainMap,http://bit.ly/1UEoA7561 IOILodersCroklaan,Takingresponsibility,Listofmills,http://bit.ly/1O2ykXn(accessrequestneeded;accessedon12May

2016))62 WilmarInternational,Supplychainmap,http://bit.ly/1UXR0t363 WALHIMalukuUtara,KronologiKonflikdiGaneBaratSelatan,GaneTimurSelatan,danKepulauanJoronga,

http://bit.ly/1QXuadP64 SemutNews,TakAdaHGU,KegiatanPT.KorindoIlegal,15February2016,http://bit.ly/27gajCD65 SemutNews,TutupAksesAirBersih,WalhiPolisikanKorindo,11May2016,http://bit.ly/1WrMxAz66 MalutPost,WargaGaneTolakHGUPTKorindo,19May2016,http://bit.ly/1TEi4v1

WalhiandTuKIndonesia,SiaranPers:HentikanPenerbitanHGUPTKorindoGroupdiGane,MalukuUtara,26May2016,http://bit.ly/28VUREV

67 MalutPost,KorindoTebangKayudiSumberMataAir,11August2016,http://bit.ly/2bvylDdKoranRadarHalmahera,PTKorindoingkarkesepakatanbersamawarga,9August2016,http://bit.ly/2aWI0Aa

68 Landsat8imageryfor21to29March2016and30Aprilto8May2016.69 KabarPulau,HutanGaneBaratSelatanTerbakar,15September2015,http://bit.ly/1QZML9d70 SouthKoreanweeklymagazineSisaIN,IsaKoreancorporationthearsonistoftropicalrainforestfires?(translatedfrom

Koreanlanguage),31May2016,http://bit.ly/1UNjukp71 Landsat8imageryfor1to9January2016.72 Landsat8imageryfor29Marchto6April2016.73 FireInformationforResourceManagementSystem(FIRMS),http://go.nasa.gov/27awNFg74 MinistryofForestryIndonesia,ForestlandreleasetoPTBerkatCiptaAbadi,22June2011.75 CenterforInternationalForestryResearch(CIFOR),Workingpaper,Theimpactsofoilpalmplantationsonforestsand

peopleinPapua,acasestudyfromBovenDigoelDistrict,2014,http://bit.ly/1Ow7b8I76 CenterforInternationalForestryResearch(CIFOR),Workingpaper,Theimpactsofoilpalmplantationsonforestsand

peopleinPapua,acasestudyfromBovenDigoelDistrict,2014,http://bit.ly/1Ow7b8I77 ComparisonofSentinel-2satelliteimagefor11May2016withtheIndonesianMinistryofForestryforestcovermapsfor

2011.78 ComparisonofLandsatimagerywiththeIndonesianMinistryofForestryforestcovermapsfor2009.79 MinistryofEnvironmentandForestry,Progressinreleasingforestland,May2015,http://bit.ly/1R5haD580 SouthKoreanweeklymagazineSisaIN,Koreancompanyrejectedbecauseof'environmentaldegradation',(translatedfrom

Koreanlanguage),8June2016,http://bit.ly/28MJd0u81 DaewooInternational,DaewooInt’ltoProducePalmOilinIndonesia,8September2011.82 NorgesBankInvestmentManagement,DecisiononexclusionofcompaniesfromtheGovernmentPensionFundGlobal,17

August2015,http://bit.ly/1ESb7NyCouncilonEthicsfortheNorwegianGovernmentPensionFundGlobal,Recommendations2014and2015onDaewooInternationalCorporation,POSCO,GentingBerhadandIJMCorporationBerhad,http://bit.ly/1USLCoF

83 TheGovernmentPensionFundGlobal,Reportonresponsibleinvestments,5February2015,page72,http://bit.ly/1vZpeBW

84 AwasMIFEE,Meraukeburns,butweretheplantationstoblame?,20November2015,http://bit.ly/28LFIFf85 ComparisonofLandsat7imageryfor8Mayto9June2016withIndonesianMinistryofForestryforestcovermapsfor2011.86 Korindo,AboutChairman,http://bit.ly/1TSxXh987 PanamaOffshoreLeaks,Eun-HoSeung,http://bit.ly/1sqlGIe

PanamaOffshoreLeaks,SeungEunHo,http://bit.ly/1VxVFlw88 DongwhaEnterprise,InMemoryofFounderSeungSang-bae,http://bit.ly/1Ou0h5r89 Dongwha,HistoryofDongwha,http://bit.ly/1Xs2g1m

SamsungEconomicResearchInstitute,Asia'sBusinessMoguls:Korindo’sIntegrityDrivesIttoSuccess,13August2007,http://bit.ly/1R2pxPX

90 Bloomberg,CompanyOverviewofKorindoGroupPT,http://bloom.bg/251AZZg91 NotaryactsoilpalmplantationcompaniesKorindo.

MinistryofEnergyandMineralResources,DirectorateGeneralofOilandGas,KorindoHeavyIndustry,2016,http://bit.ly/1XpjLyY

92 KoreanStockExchange(KRX),DongwhaEnterprise,http://bit.ly/1Tc0Hoc93 DongwhaEnterprises,Annualreport2015,30March2016,page13,http://bit.ly/1Os9d0f

Exchange-Rates.org,USDollars(USD)toKoreanWon(KRW)exchangeratefor31December2015,1USD=1,180.21KRW,http://bit.ly/1ThnrAi

94 DongwhaEnterprise,Business,http://bit.ly/1ZSO4x7DongwhaEnterprises,Annualreport2015,30March2016,http://bit.ly/1Os9d0f

95 DongwhaEnterprises,Annualreport2015,30March2016,page284,http://bit.ly/1Os9d0f96 Bloomberg,CompanyOverviewofKorindoGroupPT,http://bloom.bg/28MXZnR97 WebsiteKorindo,AffiliatedCompanies,http://bit.ly/1XbmPP398 ITTO,Revivingtropicalplywood,May2004,http://bit.ly/20hZxqg

51

99 TonnesofplywoodexportedbyIndonesiadeclined30%intheperiod2003-2014.Source:InternationalTradeCenter(ITC),

HScode4412group,plywood,veneeredpanelsandsimilarlaminatedwood.BasedonUNComtradestatistics,http://bit.ly/1zeXtXj

100 InternationalTradeCenter(ITC),HScode4412group,plywood,veneeredpanelsandsimilarlaminatedwood.BasedonUNComtradestatistics,http://bit.ly/1zeXtXj

101 PTKorindoAriabimaSari.MutuHijauIndonesia,ResumeHasilVerifikasi,PTKorindoAriabimaSari,2016,http://bit.ly/2b7Kccx.Mutucertificationinternational,VerifikasiLegalitasKayuPTKorindoAbadi,3December2015,http://bit.ly/1WFnJVM.Mutucertificationinternational,VerifikasiLegalitasKayu,PTBalikpapanForestIndustries,1April2016,http://bit.ly/28UxNcA

102 Korindo,Website,Plywoodproducts,2010,http://bit.ly/1U6Ldz5

103 KorindoWebsite,AsikiDivision,http://bit.ly/1sME2DR104 PTAyamaruSertifikasi,PerformanceassessmentPengelolaanHutanProduksiLestari(PHPL),PTTunasTimberLestari,

March2016,http://bit.ly/1XDHnAo105 PTEqualityIndonesia,PerformanceassessmentPengelolaanHutanProduksiLestari(PHPL),PTInocinAbadi,4January

2016,http://bit.ly/1Tntt03106 ReportedproductionSistemPenatausahaanHasilHutan(SIPUHH),IndonesianministryofEnvironmentandForestry,Boven

Digoel2013,http://bit.ly/1W7tOd2107 Mutucertificationinternational,VerifikasiLegalitasKayuPTKorindoAbadi,3December2015,http://bit.ly/1WFnJVM108 PTEqualityIndonesia,VerifikasiLegalitasKayu(VLK),PTMedcoPapuaIndustriLestari,1November2012,

http://bit.ly/1VcXfsZLGInternationalCorp,Annualreport2013,7March2014,http://bit.ly/1TQUjDgLGInternational,LGIEntersIndustrialForestationBusinessInIndonesia,30September2009,http://bit.ly/1WZNlMt

109 PTAyamaruSertifikasi,PerformanceassessmentPengelolaanHutanProduksiLestari(PHPL),PTBalikpapanWanaLestari,March2016,http://bit.ly/1TRa8nt

110 Mutucertificationinternational,VerifikasiLegalitasKayu,PTBalikpapanForestIndustries,1April2016,http://bit.ly/28UxNcA

111 CiputraNews,BalikpapanForestIndustriesTutupMulai26Desember,21December2012,http://bit.ly/1Tt6iDKProKaltim,InginEksis,KayuLapisHarusEfisienKamis,2January2014,http://bit.ly/25esTwm

112 PTEqualityIndonesia,VerifikasiLegalitasKayu(VLK),PTTrisetiaIntiga,18February2015,http://bit.ly/1TnG82QPTEqualityIndonesia,DirectoryCustomerCertified(VLK),http://bit.ly/27Gnlte

113 PTEqualityIndonesia,PerformanceassessmentPengelolaanHutanProduksiLestari(PHPL),PTTrisetiaIntiga,16March2016,http://bit.ly/2avcA3OPTEqualityIndonesia,VerifikasiLegalitasKayu(VLK),PTTrisetiaIntiga,18Februari2015,http://bit.ly/1TnG82Q

114 Mutucertificationinternational,VerifikasiLegalitasKayu,PTKorindoAriabimaSari,12March2015,http://bit.ly/1XnISC8115 MutuHijauIndonesia,ResumeHasilVerifikasi,2016,http://bit.ly/2b7Kccx116 AlamatKantorIndonesia.com,PTKorindoAriabimaSari,10September2013,http://bit.ly/1rYGDtv117 BorneoNews,PTKorindoMelunak,PekerjaBatalMogokMassal,26February2016,http://bit.ly/23cDotT118HarianUmumTabengan,GubernurKaltengPeringatkanPTKorindo,2August2016,http://bit.ly/2aFqJ0V119 ProKaltim,InginEksis,KayuLapisHarusEfisienKamis,2January2014,http://bit.ly/25esTwm

BorneoNews,PTKorindoMelunak,PekerjaBatalMogokMassal,26February2016,http://bit.ly/23cDotTPapuaPos,OlahHutanDenganSistemHPH,SerapSekitar4000Karyawan,undated(likelyolderthan2013),http://bit.ly/1RqjLb2

120 TranscontinentalIndentingCo.,Korindo,http://bit.ly/1TRN9Zz121 GulfCooperationCouncil(GCC).ItsmemberstatesareBahrain,Kuwait,Oman,Qatar,SaudiArabia,andtheUnitedArab

Emirates.122 ArabianBusiness,WoodWorking,18April2009,http://bit.ly/1WcGsr3123 Mutucertificationinternational,PerformanceassessmentPengelolaanHutanProduksiLestari(PHPL),PTKorintigaHutani,

12February2016,http://bit.ly/27Gqyt0124 Mutucertificationinternational,VerifikasiLegalitasKayu(VLK),PTKorintigaHutani,September2015,http://bit.ly/1XDX62v125 Marubeni,AnnualReport2015,page185,http://bit.ly/1qy67wz

FSC,CertificatedataPTTanjungenimLestariPulpandPaper,http://bit.ly/1RcJfsf126 SGS,Controlledwoodcertificationreport,PTKorintigaHutani,28August2014,page27,http://bit.ly/25d8xUl127 OjiHoldingsCorporation,NoticeRegardingLossonStockEvaluationofSubsidiariesandAffiliatesandDifferencesbetween

theForecastsandtheResultsfortheYearendedMarch2016,13May2016,http://bit.ly/1sq18PG128 OjiHoldingsCorporation,OverseasActivities,http://bit.ly/1TXxQyf

AsianLegalBusiness,September2015,page25,http://bit.ly/27ycbqq129 GlobalWood,March2014,http://bit.ly/1sxLRMK

SuryaKarya,DPD:InvestasidiDaerahSejahterakanRakyat,26July2013,http://bit.ly/1Wj6wRA130 Korindo,presentation,KorindoplantstheGreen,September2013,http://bit.ly/1OSJaQc131 Mutucertificationinternational,VerifikasiLegalitasKayu,PTBelantaraSubur,29July2015,http://bit.ly/1RdASwr132 BeritaPapua,PT.KorindodimintaberinvestasidiPapua,7September2015,http://bit.ly/28BP1QE

AntaraNews,KorindomintalahanujicobadiPapua,4September2015,http://bit.ly/1WMDSIz

52

133 Korindo,PaperBusiness,http://bit.ly/1WzZSqj

AzbilCorporation,PTAspexKumbong,2016,http://bit.ly/22dmU5QPapermart,DrumsandDIPsforimprovednews,15April2013,http://bit.ly/1OuMNM3

134 Liputan,TujuhJamSebelumSuratKabarTerbit,May2015,http://bit.ly/1sqV36iKompas,PabrikKertasTerpaksaTutup,31March2008,http://bit.ly/1rOuerSKompasGramedia,Newspaper,http://bit.ly/28QjxNT

135 OceanicHolding,PaperImport,NewsprintGrade,http://bit.ly/1TRw15H136 i-Graphix.com,NewsprintalternativeofferedbyOceanic,15January2011,http://bit.ly/1ZW8bKG137 Korindo,PaperBusiness,http://bit.ly/1WzZSqj

Andritz,AndritztosupplystockpreparationequipmenttoP.T.AspexKumbong,Indonesia,10August2010,http://bit.ly/1ZW9ppw

138 ForestStewardshipCouncil,CertificatePTAspexKumbong,http://bit.ly/1Tves1F139 KousaInternational,Paper,http://bit.ly/1Tj9GRw

FredricksCommunications,KousaInternational,http://bit.ly/1Th9xiP140 www.tradesparq.com,ascheckedon23May2016.141 KoreaTimes,Korindoheadprobedforallegedtaxevasion,6October2014,http://bit.ly/1TV5wiR142 Korea’sNationalTaxService,April2016,http://bit.ly/1Vi5KD0(inKorean)143 WebsiteOtoritasJasaKeuangan(OJK,FinancialServicesAuthority),PTNongHyupKorindoSecuritiesIndonesia,

http://bit.ly/1TxasMd144 PTNongHyupKorindoSecuritiesIndonesia,Products,http://bit.ly/22iWbVE145 TheKoreaTimes,NongHyuptakes2ndplacebyassets,14April2015,http://bit.ly/1svVifB146 MeritzKorindoInsurance,Aboutus,http://bit.ly/1sJlLHr

MeritzKorindoInsurance,FinancialStatements2015,http://bit.ly/1YKXF8V147 WebsiteKorindo,AffiliatedCompanies,http://bit.ly/1XbmPP3148 KorindoWind,Website,http://bit.ly/1TrA1Lb

KorindoWind,Equippedforprecision,http://bit.ly/22jSG10149 www.tradesparq.com,ascheckedon23May2016.150 DailyAdvance,Windenergyblowsintoarea--piecebymammothpiece,26May2016,http://bit.ly/1UhUzbo151 http://portexaminer.com152 KorindoWind,FrequentlyAskedQuestions,http://bit.ly/1Ps6v68

KorindoWind,YouTubevideo,KorindoHeavyIndustry-WindTowerDivision,May2016,http://bit.ly/28QhYjV153 MinistryofEnergyandMineralResources,DirectorateGeneralofOilandGas,KorindoHeavyIndustry,2016,

http://bit.ly/1XpjLyYMinistryofEnergyandMineralResources,DirectorateGeneralofOilandGas,KorindoHeavyIndustry,2012,http://bit.ly/27Mqzvl

154 MinistryofEnergyandMineralResources,DirectorateGeneralofOilandGas,KorindoHeavyIndustry,2016,http://bit.ly/1XpjLyYMinistryofEnergyandMineralResources,DirectorateGeneralofOilandGas,KorindoHeavyIndustry,2012,http://bit.ly/27Mqzvl

155 SGPBusiness(businessandcompanydirectoryinSingapore),KorindoEnergy(Singapore)PteLtd,http://bit.ly/1swxMPF156 KorindoEnergy,Brochure,http://bit.ly/27MD9eg157 HyundaiMotorCompany,Webmagazine,spring2007,http://bit.ly/1OGAoze158 TheKoreaHerald,HyundaiendsbussupplycontractwithKorindo,26February2012,http://bit.ly/1NEAhtl

Inilah,KorindoTuduhHyundaiPutusKontrakSepihak.16March2012,http://bit.ly/1YNuXnK159 Korindo,Automotivecomponents,motorcyclecomponents,industrialparts,http://bit.ly/1swyBrQ160 AntaraNews,Bakrieoptimalkanpabrikkomponeneks-Korindo,30April2013,http://bit.ly/1YNCQd9161 DetikNews,JaksaTahanDirutKorindoMotorsterkaitKasusKorupsiTransJ2013,26March2015,http://bit.ly/1TDHpXd

Baranews,MAPerberatVonisUdar,DakwaanTindakPidanaPencucianUangJugaTerbuktiKamis,24March2016,http://bit.ly/27PCubUTempo,TransjakartaLunasiBusSisaPengadaanEraUdarPristono,23December2015,http://bit.ly/1TxDA4LKomisiPengawasPersainganUsaha,PutusanPerkaraNomor15/KPPU-I/2014,http://bit.ly/1s3RwdJ

162 Korindo,SpecialVehicles,http://bit.ly/1ORAk5g163 MinerayMetalúrgicadelBoleo,S.A.P.I.deC.V.,U.S.$120,000,0002.875%GuaranteedNotesdue2019(Unconditionally

andIrrevocablyGuaranteedbyKoreaResourcesCorporation),24June2015,http://bit.ly/1W9IpVcYosefardi,CoalJournal:SouthKoreanPlayers,23September2014,http://bit.ly/22kcS2R

164 Korindo,RealEstateManagementBusiness,http://bit.ly/24ijrSXDaftarAlamatLengkapPerusahaan,PTDongbangDevelopment,http://bit.ly/25A6Osi

165 WartaBuana,SACIVA,AplikasiYangMampuSimpanRibuanKartuNama,14May2016,http://bit.ly/1TXBPzfDutaWisata,KorindoGroupSemarakanDuaTahunForwanBerbagiKasih,15May2016,http://bit.ly/1TXDJyn

166 AlamatKantorIndonesia.com,PTSeparindoIndustry,5August2015,http://bit.ly/24UjWF3167 CapitalProvinceofJakarta,IzinUsahaJasaKonstruksiPTKorindoKonstruksi,8June2015,http://bit.ly/28T8IK7