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Nestlé severs ties with leading Indonesian palm oil supplier IndoFood
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Monday, 08 October, 2018, 08 : 00 AM [IST]
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Jakarta
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Nestlé has announced that it would stop sourcing palm oil, either directly or indirectly, from IndoFood, one of Indonesia’s largest palm oil companies, citing commercial reasons.
Recently, PepsiCo announced that it would also be severing ties with IndoFoods, but explicitly called out the ongoing human rights abuses by the latter.
Earlier this year, PepsiCo suspended direct sourcing of palm oil from one of IndoFood’s subsidiaries, IndoAgri after complaints of labour abuses surfaced from plantations and were investigated by Rainforest Action Network, the International Labour Rights Forum and Indonesian labour rights group Oppuk.
In reaction to the news, Fatah Sadaoui, campaigns manager, SumOfUs, an international consumer watchdog that urged Nestlé to sever ties with IndoFood, issued a statement that read, “Nestlé made the right decision in ending its joint venture partnership with Indofood. The Roundtable on Sustainable Palm Oil now has to send a strong message to Indofood and other palm oil suppliers clearing rainforests, abusing workers and destroying orangutan habitat by suspending Indofood.”
“Nestlé’s decision is also a reminder for PepsiCo that it is time put its money where its mouth is and either bring Indofood in line with its No Deforestation, No Peat, No Exploitation commitment or put an end to their joint venture partnership.”
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