Noble invests in palm oil production in Indonesia

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Noble Group | 14 June 2010

Photo: Nick Lyon

Noble Group, a global supplier of agricultural, energy, metals and mineral products, has acquired a 51% stake in PT. Henrison Inti Persada. The Company intends to develop approximately 32,500 ha of land for palm oil production in Sorong Regency, West Papua Province, Indonesia.

The transaction is Noble’s first project in the oil palm sector and establishes a strong platform for the Group to expand and increase its investments in this area in the future. The investment enables Noble to expand its edible oil supply chain and secure a continuous flow of crude palm oil.

The Company is to be registered as a member of the Roundtable on Sustainable Palm Oil (“RSPO”). The RSPO are an organisation whose membership is made up of, amongst others, palm growers, palm oil producers, retailers, investors in the sector and environmental/conservation NGOs. The RSPO promotes the production of palm oil in a sustainable manner based on economic, social and environmental criteria.

“We focus our investments on areas that are synergistic with our businesses both in terms of product and geography,” said Noble Group Executive Chairman Richard Elman. “This move into palm oil plantations will complement our global agriculture and energy businesses. Our operating experience in Indonesia should prove to be an asset in helping us manage this and future projects.” He added, “With increasing convergence between agriculture and energy, this investment is a clean fit for the Group’s diversified portfolio.”
Original source: Noble Group
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2 Comments


  1. Narayanan Govindan
    15 Jan 2013

    A similar situation arose between the local community and Investor. Amount paid was returned and a fresh mandate made amical to parties concerned.

  2. Jago Wadley
    08 Oct 2010

    The Environmental Investigation Agency (EIA) and Telapak visited the plantation of PT Henrison Inti Persada (PT HIP) in April 2009. We met a four year old boy who had been forced to "sign" a contract committing his land to PT HIP for many decades. Neither he, nor his mother, nor any other landowner we met had been permitted to keep copies of contracts they had signed. On average, landowners received about $2.50 per hectare of forest land - for 35 years, not each year. Many landowners were angry, and wanted their land back, claiming the promised benefits had not been forthcoming. There is credible evidence that PT HIP began clearing forests for this plantation before it had received relevant permits, which is clearly illegal. PT HIP has since applied for membership of the RSPO (the Round table on Sustainable Palm Oil). EIA believes that any RSPO auditor needs to seriously investigate alleged license irregularities, the exploitation of local Moi tribe members, and how these issues break the RSPO standards and indicators. A fuller picture on PT HIP is available in EIA/Telapak's report, Up for Grabs: Deforestation and Exploitation in Papua's Plantations Boom (2009) http://www.eia-international.org/files/news566-1.pdf

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