The Chain: Jhonlin Group’s Refining Company Goes Public to Raise Capital

A subsidiary of Jhonlin Group, PT Jhonlin Agro Raya (JAR), is currently launching an Initial Public Offering (IPO) through the Indonesia Stock Exchange. According to the prospectus, the IPO was held from July 12-15, 2022, with the anticipation of a share listing on August 3, 2022. The company is issuing 1.22 billion new shares, with …

EU Deforestation Regulation: Implications for the Palm Oil Industry and Its Financers

This report discusses the EU’s regulation on deforestation-free products and how its requirements will affect the palm oil industry, one of the key commodities driving deforestation. The upcoming law, expected to be implemented in 2023, will have implications for palm oil supply chain actors and their financers. Watch our webinar covering the findings of this …

Wilmar’s Refineries and Brands Lag in Implementation of ESG Policies

Wilmar International is a leading company in the palm oil sector. It has 230,000 hectares of planted area and a 10 times greater palm oil footprint through its trading, refining, and fast-moving consumer good activities. Concerns about ESG violations and investor ratings have hampered Wilmar, an early adopter of RSPO certification and a frontrunner in …

The Chain: How Limited Supply, Alleged Corruption, and the Biodiesel Market Led to Indonesia’s Cooking Oil Crisis

In April 2022, the government of Indonesia introduced a new regulation to ban the export of palm oil. The regulation (Minister of Trade Regulation Number 22/2022) covered crude palm oil and its derivatives, including refined, bleached, and deodorized palm oil (RBDPO), refined, bleached, and deodorized olein (RBDO), and used cooking oil. The regulation sought to …

The Chain: Investors Back Proposed Laws in the United States That Aim to Reduce Deforestation in Commodity Supply Chains

Investors are continuing to urge governments and companies to take actions to conserve forests and curb commodity-driven deforestation. A group of NGOs and activist investors are currently putting together a sign-on letter in support of three key pieces of legislation in the United States that aim to decrease deforestation risks and human rights abuses in …

WEBINAR: The Changing Context of Indonesian Deforestation: Explaining Declining Rates and Remaining Threats

Chain Reaction Research held a webinar on April 14th to share our research on deforestation in Indonesia that is attributed to the development of oil palm plantations. Palm oil-driven deforestation has fallen to its lowest level in four years in 2021. The declining deforestation rates for oil palm in Indonesia are promising. However, recent …

The Chain: Revocation of Permits, Increased Biofuel Volumes Point to Significant Developments in Indonesia’s Palm Oil Sector in 2022

In the past month, there have been two significant developments in Indonesia’s palm oil sector: 1) the increased allocation for the country’s biodiesel program; and 2) multiple plantation companies — including oil palm plantation companies, together with industrial tree plantations and mining companies — have had their licenses revoked as a result of their concessions …

The Chain: EU Proposal on Deforestation-Linked Products Poses Risks for Companies, Investors

Just two weeks after a watershed announcement by more than 100 countries at COP26 on eliminating deforestation, the EU released a draft law on November 17 that would require companies to show that their products are not tied to forest clearing. Essentially, the legislation would ban commodities that are linked to deforestation, whether legal or …

The Chain: Astra International’s Mine Expansion Threatens Forest and Astra Agro Lestari’s NDPE Supply Chain Access

Indonesia’s multi-businesses company group, Astra International, is reportedly expanding its gold mine in North Sumatra. This mine is operated by Astra International’s subsidiary PT Agincourt Resources and is in the habitat of the Critically Endangered Tapanuli orangutan (Pongo tapanuliensis). The expansion puts the approximately 800 orangutans in the region at greater risk and raises questions …

The Chain: COP26 – Crucial Breakthroughs in Combatting Deforestation

Commitments coming out of COP26 could represent a structural shift in efforts to conserve forests and tackle commodity-driven deforestation. The announcement that more than 100 countries, including those with vast amounts of tropical forests such as Brazil and Indonesia, pledged to eliminate deforestation by 2030 is a crucial breakthrough. Fossil fuels typically get most of …