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Indonesian Food Firm Withdraws from RSPO

Thursday, February 28, 2019

One of the largest food firms in Indonesia, Indofood, has withdrawn from the Roundtable of Sustainable Palm Oil (RSPO) certification scheme amid allegations of labor violations in its plantations, just-food reported on 30 January. The decision was made following audits carried out by RSPO on two its oil palm plantations in Indonesia, after allegations made by the Rainforest Action Network (RAN), International Labor Rights Forum and the Indonesian labour rights body OPPUK in November last year. 
The case dates back to at least 2016, with the allegations disputed by Indofood, which operates oil palm plantations through its subsidiary IndoAgri Resources and is also the partner of US food and drink giant PepsiCo in Indonesia.  PepsiCo previously said it had held consultations with the company over the alleged abuses of workers’ rights.  In an update from the food and drinks business sent to just-food, the company said: “PepsiCo and our Indonesian joint venture decided some time ago to no longer receive palm oil from IndoAgri, owner of PT Lonsum.”
Before Indofood took the decision to exit RSPO earlier in January, the not-for-profit organisation had sanctioned the company in November over 20 violations of its Principles and Criteria, as well as ten violations of local labour laws associated with its oil-palm facilities.

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