Consumer Brands Probe Palm Oil Sourcing After Alleged Deforestation in Indonesian Wildlife Reserve

Several major consumer brands, including Nestlé and Procter & Gamble, have launched investigations after the Rainforest Action Network (RAN), a U.S.-based environmental group, reported that palm oil from Indonesia’s protected Rawa Singkil Wildlife Reserve might be entering their supply chains. Citing satellite images, RAN alleges that illegal deforestation over the past eight years has cleared parts of the rainforest, replacing it with palm oil plantations. Field investigation images reportedly show palm trees planted on burnt land within the reserve, home to endangered species like orangutans, tigers, elephants, and rhinos.

According to RAN, two Indonesian mills, PT Global Sawit Semesta (GSS) and PT Aceh Trumon Anugerah Kita (ATAK), may be sourcing palm oil from illegal plantations within the reserve, supplying major brands such as Procter & Gamble, Nestlé, and PepsiCo. In response, Procter & Gamble suspended sourcing from GSS and ATAK, while Nestlé stated it is investigating the claims with its suppliers. RAN reported that the wildlife reserve has lost 2,609 hectares of forest since 2016, with 645 hectares now planted with palm trees.

The Indonesian government claims to have recently reduced the nation’s deforestation rate, but RAN’s findings suggest deforestation within the reserve has sharply increased since 2021. Described as the “Orangutan Capital of the World,” the reserve represents one of Indonesia’s few remaining habitats where multiple endangered species coexist. Environmental groups have long accused palm oil producers of illegal deforestation to expand plantations, despite laws against clearing protected rainforests.

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