- RSPO Complaint Panel Rules Against PT Inecda, a Samsung C&T Subsidiary, for Violating the Rights of the Talang Parit Indigenous Community
- Samsung C&T Must Implement Participatory Mapping and Improve Its Grievance Mechanism in Compliance with RSPO’s Decision
- Samsung C&T Must Listen to Civil Society Concerns Regarding Human Rights Violations in Its Overseas Operations
On March 11, 2025, the Roundtable on Sustainable Palm Oil (RSPO) finalized the decision that PT Inecda, a subsidiary of Samsung C&T operating palm plantations in Riau, Indonesia, had violated sustainability standards by infringing on the customary rights of the Talang Parit Indigenous Community. PT Inecda, along with PT Gandaerah Hendana, is a subsidiary through which Samsung C&T operates palm oil plantations in Indonesia. Samsung C&T manages approximately 24,000 hectares of palm plantations through these subsidiaries, producing around 100,000 tons of crude palm oil (CPO) annually.
Korean trading companies expanded into Indonesia during the biofuel development boom to secure palm oil. However, their plantation operations have been repeatedly criticized for human rights and environmental violations. POSCO International, which operates plantations in Papua, has faced allegations of violating the OECD Guidelines for Multinational Enterprises due to large-scale deforestation and indigenous rights violations. Daesang Group, which operates plantations in West Kalimantan, has been criticized for involvement in land disputes and the criminalization of local communities. Similarly, Samsung C&T’s palm oil operations have also been accused of child labor, failure to take responsibility for plantation fires, and indigenous rights violations. Despite these allegations, Samsung C&T has actively promoted its “sustainable” palm oil business since obtaining RSPO certification in 2019.
However, PT Inecda has long failed to recognize the customary rights of the Talang Parit Indigenous Community, leading to ongoing land disputes. The Talang Parit community has relied on the region’s lakes and forests for generations, but since PT Inecda began clearing forests for palm oil plantations in the 1990s, they have faced severe threats to their livelihood, cultural traditions, and spiritual practices. The community has continuously asserted its customary land rights, but PT Inecda has argued that, under Indonesian law, the Talang Parit community does not qualify as a customary law community and therefore does not hold legal customary land rights.
In response, the Talang Parit Indigenous community filed a complaint with the RSPO in March 2021, alleging that PT Inecda: (1) operated its plantation without obtaining Free, Prior, and Informed Consent (FPIC), (2) failed to provide plasma as required, and (3) lacked an accessible internal grievance mechanism for affected stakeholders.
Following an independent investigation, the RSPO Complaint Panel concluded in September 2024 that the Talang Parit Indigenous Community qualifies as a customary law community under RSPO standards, regardless of its legal status under Indonesian law. The panel found that PT Inecda violated RSPO standards by failing to obtain FPIC when extending its land use rights in 2020. Furthermore, RSPO concluded that PT Inecda failed to engage affected stakeholders, including the Talang Parit community, in the formulation and dissemination of internal grievance procedures. Consequently, RSPO ruled that PT Inecda should conduct participatory mapping with the direct involvement of the Talang Parit Indigenous community to document their environment and customary lands. PT Inecda is also required to improve internal grievance mechanisms by incorporating local residents’ input. PT Inecda appealed the decision, but it was dismissed, and RSPO’s ruling was finalized in March 2025.
We welcome RSPO’s recognition of the harsh reality faced by indigenous communities who have lost their lands and economic, social, and cultural rights under the guise of "sustainable palm oil production." However, we express deep regret that Samsung C&T failed to take civil society concerns regarding the Talang Parit Indigenous Community’s customary rights, thereby exacerbating their suffering. We strongly urge Samsung C&T to immediately comply with the RSPO Complaint Panel’s decision, issue a formal apology to the Talang Parit community, and actively implement participatory mapping to restore their customary land rights. We also call on Samsung C&T to take proactive responsibility for human rights violations and environmental destruction in its overseas operations.
March 28, 2025
Korea Transnational Corporations Watch