Too Green to be True

The report finds that IOI Corporation is failing to meet its sustainability commitments in Ketapang, West Kalimantan. Evidence shows the company developed plantations without approved Environmental Impact Assessments, made fraudulent statements about physical activity on the ground, and encroached on permanent forests and peat lands. Additionally, the report notes a significant increase in fire hotspots in newly cleared areas and potential for land rights conflicts with local villagers.

• IOI developed oil palm plantations in the Ketapang district without the legally required approval of Environmental Impact Assessments (EIAs). Specifically, PT Sukses Karya Sawit (PT SKS), PT Berkat Nabati Sejahtera (PT BNS), and PT Bumi Sawit Sejahtera (PT BSS) started land clearing and planting before obtaining these approvals.
• The directors of PT BNS and PT SKS committed intentional fraud by signing sworn statements in July 2009 declaring that no physical activities would be undertaken on the ground until EIAs were approved, while satellite imagery and field research show land clearing continued after these statements.
• IOI subsidiaries operated in permanent forest areas without full approval from the Ministry of Forestry. PT BSS developed a nursery and canals in the Sungai Jelai forest reserve with only preliminary approval, and PT BNS cleared Production Forest outside its concession boundary in the Danau Manismata area.
• The company violated its own corporate responsibility policy to avoid deforestation and peat land encroachment. Overlays of EIA reports and satellite imagery show land clearing in areas identified as forest cover for PT SKS and PT BNS, and the PT BNS concession is found to be 88% peat land, where active development and canal digging occurred.
• IOI's zero-burning policy has been ineffective, as data from the Fire Information Management System (FIRMS) for 2007-2009 shows a substantial increase in fire hotspots specifically in newly cleared land within the PT SKS and PT BNS concessions in 2009.
• There is a high risk of land conflicts because IOI's land acquisition practices are not transparent and lack evidence of Free, Prior and Informed Consent (FPIC). Local farmers have placed signboards warning against encroachment on their land in PT SKS and PT BNS areas.

APA

Friends of the Earth International (2010). Too Green to be True. https://www.foei.org/wp-content/uploads/2020/12/Too_Green_to_be_True0310.pdf

Chicago

Friends of the Earth International. Too Green to be True. 2010. https://www.foei.org/wp-content/uploads/2020/12/Too_Green_to_be_True0310.pdf.

Wikipedia

{{cite report |author=Friends of the Earth International |title=Too Green to be True |date=March 2010 |url=https://www.foei.org/wp-content/uploads/2020/12/Too_Green_to_be_True0310.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{friendsoftheearthinternational2010too, author = {{Friends of the Earth International}}, title = {{Too Green to be True}}, institution = {Friends of the Earth International}, year = {2010}, month = mar, url = {https://www.foei.org/wp-content/uploads/2020/12/Too_Green_to_be_True0310.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }