Alert! AS Boycotts Palm Oil of This Company, Its Plantation in RI

Jakarta, CNBC Indonesia – United States (US) reportedly blocked imports of palm oil (CPO) and derivative products from FGV Holding Bhd Malaysia. This company is one of the largest producers in the world.

Written Bloomberg, shipments from the company and its subsidiaries are held at all US ports of entry. This was stated by the US Department of Customs and Border Protection, Wednesday (30/09/2020) local time.

In the report, it was stated that forced labor was carried out. “The order is the result of a year-long investigation that reveals fraud, restrictions on movement, isolation, intimidation, physical and sexual violence against workers,” the US media quoted the US Customs statement as saying.

Search CNBC Indonesia on the company’s website it says that FGV owns 439,725 hectares of oil palm plantations in Malaysia and Indonesia. In RI, the plantations are spread across 5 regions in West Kalimantan (Kalbar) and Central Kalimantan (Kalteng).

Malaysia is the second largest exporter of palm oil. In 2019, US $ 441 million was imported from the neighboring country to Malaysia.

In a previous statement, FGV said it was fully committed to respecting human rights (HAM) and upholding labor standards.

The US Customs Block came after the US media, Associated Press (AP) reports an investigation that claims millions of workers from some of Asia’s poorest regions, who work to produce palm oil, experience various forms of exploitation. The media accused child labor, slavery and allegations of rape.

AP News said it had interviewed more than 130 employees and former employees of 24 oil palm plantations in Malaysia and Indonesia. The workers interviewed were mostly from Indonesia, Malaysia, Bangladesh, India, Nepal, the Philippines, Cambodia and Myanmar, as well as stateless Rohingya Muslims.

The report named companies such as Unilever, L’Oreal, Nestle, Procter & Gamble (P&G), Colgate-Palmolive and Ikea, as well as several giant bank names, such as Deutsche Bank, BNY Mellon, Citigroup, HSBC, and Vanguard Group, and Maybank. , is involved in this violation problem.
Malaysia and Indonesia alone produce about 85% of the estimated US $ 65 billion supply of palm oil in the world.

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