Sinar Mas Group
Encyclopedia
Sinar Mas Group is one of the largest conglomerate
s in Indonesia
. It was formed in 1962. It has many subsidiaries including Asia Pulp & Paper
and palm oil producer PT SMART.
Sinar Mas Group was founded by a Chinese tycoon Eka Tjipta Widjaja. Its main businesses are: Pulp and Paper, Agribusiness, Property and Financial Services. Eka Tjipta Widjaja came to Indonesia at the age of 9 years with his parents during a difficult situation in their country of origin. It had set up a subsidiary in India in the 1990s, but sold it to Ballarpur Industries Limited
in 2001.
Sinarmas businesses operate in different sectors such as Pulp and Paper, Real Estate, Financial Services, Agribusiness, Telecommunications and Mining. The businesses are listed in the Indonesian and Singapore stock exchanges.
Recently the company has created Eka Tjipta Foundation, a philanthropic foundation that focuses on Education, Poverty and Renewable Energy.
Jaya Suprana from the Indonesian Museum of Records (MURI) presented a certificate to the Eka Tjipta Foundation, a non-profit organization under one of the country’s largest conglomerates, Sinar Mas Group, for granting “the largest number of scholarships for undergraduate students during certain period".
of causing deforestation of Indonesian rainforests. To investigate this accusation, Smart Tbk has appointed Control Union Certification and BSI Group, assisted by two researchers from the Bogor Agricultural Institute.Greenpeace states that they have never accused them of destroying primary rainforest - i.e. forest areas which show no signs of ever being disturbed by humans (August 2010).
The United Kingdom and Germany alone have consumed 500,000 tons of palm oil for biofuels between them, he said.
campaign moved to HSBC, calling for them to sell their stocks in Sinar Mas. By July 2010, HSBC had written to Greenpeace to inform them that the shares had been sold.
"After completing a thorough review of the independent verification report conducted by Control Union Certification (CUC) and BSI Group, we believe the report has raised valid concerns about some of the sustainability practices of Sinar Mas' palm oil production and its impact on the rainforest. These practices are inconsistent with our corporate responsibility commitments"
launched "Barbie, It's Over", a global campaign to bring awareness and encourage Mattel
to switch pulp and paper producers. Mattel uses paper sourced from Asia Pulp & Paper
, one of the subsidiaries of Sinar Mas Group in its product packaging, particularly in packaging in the Barbie
line of toys.
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
s in Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
. It was formed in 1962. It has many subsidiaries including Asia Pulp & Paper
Asia Pulp & Paper
Asia Pulp & Paper, also known in the paper industry as APP is based in Singapore, is one of the largest pulp and paper companies in the world. It was founded by Eka Cipta Widjaja, who had significant ties to the Suharto ruling family in Indonesia. APP claims to obtain 80-90% of the fiber for...
and palm oil producer PT SMART.
Sinar Mas Group was founded by a Chinese tycoon Eka Tjipta Widjaja. Its main businesses are: Pulp and Paper, Agribusiness, Property and Financial Services. Eka Tjipta Widjaja came to Indonesia at the age of 9 years with his parents during a difficult situation in their country of origin. It had set up a subsidiary in India in the 1990s, but sold it to Ballarpur Industries Limited
Ballarpur Industries Limited
Ballarpur Industries Limited is a flagship of the US$ 4 bn Avantha Group and India's largest manufacturer of writing and printing paper. The current chairman of the company is Gautam Thapar, who succeeded his late uncle L.M...
in 2001.
Sinarmas businesses operate in different sectors such as Pulp and Paper, Real Estate, Financial Services, Agribusiness, Telecommunications and Mining. The businesses are listed in the Indonesian and Singapore stock exchanges.
Recently the company has created Eka Tjipta Foundation, a philanthropic foundation that focuses on Education, Poverty and Renewable Energy.
Jaya Suprana from the Indonesian Museum of Records (MURI) presented a certificate to the Eka Tjipta Foundation, a non-profit organization under one of the country’s largest conglomerates, Sinar Mas Group, for granting “the largest number of scholarships for undergraduate students during certain period".
Environmental concerns
A palm-oil producing subsidiary of Sinarmas Group Smart Tbk has been accused by GreenpeaceGreenpeace
Greenpeace is a non-governmental environmental organization with offices in over forty countries and with an international coordinating body in Amsterdam, The Netherlands...
of causing deforestation of Indonesian rainforests. To investigate this accusation, Smart Tbk has appointed Control Union Certification and BSI Group, assisted by two researchers from the Bogor Agricultural Institute.Greenpeace states that they have never accused them of destroying primary rainforest - i.e. forest areas which show no signs of ever being disturbed by humans (August 2010).
Unilever
In December 2009 Unilever suspended purchases of palm oil from PT Smart, a Sinar Mas subsidiary, citing concerns that PT Smart had not provided sufficient evidence that they are not involved in unacceptable environmental practices. However, Unilever plan to resume Palm Oil purchases if independent auditors, formed by Sinar Mas and Unilever, disprove allegations of forest destruction.Nestle
In March 2010, Nestle faced a public reputation crisis over its procurement of palm oil from Sinar Mas whose plantations are reported to be the cause of widespread rainforest and orangutan habitat destruction. To avert the public reputation disaster, Nestle quickly moved to stop its palm oil procurement from Sinar Mas. After Sinar Mas appointed independent auditors to investigate the issue, Nestle joined the committee and may resume palm oil procurement from Sinar Mas if they are cleared of the allegations. In August 2010 the Nestle chairman Peter Brabeck-Letmathe stated that the focus on his company is misguided. "You know very well that it's not Nestle's 350,000 tons of palm oil that brought about deforestation in Indonesia," he said, "but a political decision to use food as a source for biofuels."The United Kingdom and Germany alone have consumed 500,000 tons of palm oil for biofuels between them, he said.
Abengoa
In May 2010, Abengoa Bioenergy asked its raw material suppliers to boycott palm oil from any company in the Indonesian group of Sinar Mas, until it can demonstrate that it fully complies with Abengoa’s environmental and social sustainability policy.HSBC
In May 2010, focus of the GreenpeaceGreenpeace
Greenpeace is a non-governmental environmental organization with offices in over forty countries and with an international coordinating body in Amsterdam, The Netherlands...
campaign moved to HSBC, calling for them to sell their stocks in Sinar Mas. By July 2010, HSBC had written to Greenpeace to inform them that the shares had been sold.
Carrefour
Jul 7: Carrefour has dropped Sinar Mas as its supplier. “Carrefour is committed to sustainable development and has decided to cease sourcing of APP supplies for private label products from mid-year this year until further notice.” Carrefour Indonesia external communication manager Hendri Satrio told The Jakarta Post in a letter.Burger King
In September 2010, Burger King announced that they would no longer source Palm Oil from Sinar Mas. They published a statement announcing:"After completing a thorough review of the independent verification report conducted by Control Union Certification (CUC) and BSI Group, we believe the report has raised valid concerns about some of the sustainability practices of Sinar Mas' palm oil production and its impact on the rainforest. These practices are inconsistent with our corporate responsibility commitments"
Mattel
In 7 June 2011, GreenpeaceGreenpeace
Greenpeace is a non-governmental environmental organization with offices in over forty countries and with an international coordinating body in Amsterdam, The Netherlands...
launched "Barbie, It's Over", a global campaign to bring awareness and encourage Mattel
Mattel
Mattel, Inc. is the world's largest toy company based on revenue. The products it produces include Fisher Price, Barbie dolls, Hot Wheels and Matchbox toys, Masters of the Universe, American Girl dolls, board games, and, in the early 1980s, video game consoles. The company's name is derived from...
to switch pulp and paper producers. Mattel uses paper sourced from Asia Pulp & Paper
Asia Pulp & Paper
Asia Pulp & Paper, also known in the paper industry as APP is based in Singapore, is one of the largest pulp and paper companies in the world. It was founded by Eka Cipta Widjaja, who had significant ties to the Suharto ruling family in Indonesia. APP claims to obtain 80-90% of the fiber for...
, one of the subsidiaries of Sinar Mas Group in its product packaging, particularly in packaging in the Barbie
Barbie
Barbie is a fashion doll manufactured by the American toy-company Mattel, Inc. and launched in March 1959. American businesswoman Ruth Handler is credited with the creation of the doll using a German doll called Bild Lilli as her inspiration....
line of toys.