Chain Reaction Research Analysis: Palm Oil Producer Triputra Agro Persada’s Lack of Transparency and Responsibility Puts Rapid Growth at Serious Risk
Triputra Agro Persada (Triputra/TAP) is a privately owned Indonesian palm oil and rubber plantation company. The company has a land bank of approximately 300,000 hectares, of which around 164,000 ha is currently planted with palm oil. The company is one of the fastest growing palm oil companies in Indonesia, planting an estimated 100,000 ha from 2010 to 2014, and is aiming to expand its operations even further in the coming years. With 25 palm oil plantation subsidiaries, the company produced an estimated 323,000 tonnes of crude palm oil (CPO) in 2014. However, it is not active further downstream in the supply chain, selling all of its CPO to processors and traders.
As the palm oil sector undergoes radical transformation, Chain Reaction Research (CRR) assessed the sustainability and financial risks of Triputra’s policies and practices, based on compliance with national laws and regulations, customer sustainability policies, and certification standards. This report gives an overview of the company, delves into the environmental and social issues it faces, and presents a financial analysis of how sustainability risks may impact the bottom line.
A draft version of the sustainability risks identified in this report was sent to Triputra for review on April 10, 2015. Triputra representatives did not provide any specific information to CRR in response to the report’s findings before the time of publication.
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For more information, please contact Annemieke Beekmans.