Between 2013 and 2016, Korindo cleared 30,000 hectares (ha) of forest in West Papua and North Maluku, where it is the area’s largest oil palm plantation developer. 12,000 ha of this was primary forest. Extensive forest fires and land tenure disagreements on PT Gelora Mandiri Membangun in North Maluku constituted additional NDPE policy non-compliance by the company.
In response, Korindo was largely excluded from the NDPE market, with companies such as Wilmar, Musim Mas, Bunge Loders Croklaan and Nestlé publicly committing to suspending Korindo from their supply chains. Subsequently, Korindo was suspended by multiple NDPE traders after evidence of deforestation and illegal burning on their concessions.
Faced with restricted NDPE market access, the company is now looking at business opportunities in the regional biofuel market, which has begun to serve as a replacement market for oil palm growers suspended from the NDPE market.
Korindo is not a member of the RSPO.