Nusantara Blog

Sumatran Tiger. Photo by Richard Ashurst VIEW IN ATLAS Photo by Richard Ashurst

Palm oil giant using ‘shadow companies’ to hide links to deforestation of tiger habitat in Sumatra?

Sumatran Tiger. Photo by Richard Ashurst VIEW IN ATLAS Photo by Richard Ashurst

PT Usaha Sawit Unggul (PT USU), a subsidiary of PT Sumatera Makmur Sejahtera, has cleared more than 350 hectares of natural forest in Mandailing Natal, Sumatra, since the start of the year. Clearing operations are ongoing, indicating that further losses are likely.

The area is part of the larger Batang Gadis-Rimbo-Panti forest landscape, the home of 10% of the critically endangered Sumatran tiger (Panthera tigris sumatrae) population. At its centre lies a hidden lake where wildlife can thrive.

Reportedly, as recently as 2019, PT USU was a subsidiary of Asian Agri, the palm oil production arm of Royal Golden Eagle (RGE) group, a conglomerate owned by one of Indonesia’s wealthiest tycoons, Sukanto Tanoto. Mighty Earth showed this in its December 2019 Rapid Response 17 report: “PT USU is a subsidiary of PT Asianagro Lestari,  which is part of the RGE conglomerate.” 

Asian Agri committed to a no-deforestation policy and conserving High Carbon Stock (HCS) forests in 2017. 

Time-lapse animation of Sentinel-2 imagery in natural colours (10 m x 10 m) revealing recent clearing of Tiger habitat

In responding to Mighty Earth’s findings on its grievance tracker, RGE’s palm oil trading and processing arm, APICAL did not challenge these claims: “Immediately upon receiving the (mighty Eath) report, Asian Agri commenced an investigation. Based on the evidence received, it is confirmed that the land clearing is located outside of PT USU concession.” 

APICAL’s response to Mighty Earth referred to a 2019 deforestation event found outside the concession boundaries for land controlled by PT USU.  Today’s deforestation is inside PT USU’s concession boundaries.

 What is most intriguing about this case is that PT Sumatera Makmur Sejahtera, the current owner of PT USU, is held by a BVI-registered company – the British Virgin Islands do not require public disclosure of directors or shareholders, so its ultimate ownership is unknown.

It is possible, therefore, that Asian Agri – or the Tanoto family – may still control PT USU. This would represent a severe breach of Asian Agri’s no-deforestation commitments, and warrants further investigation.

RGE has long been associated with deforestation, tax avoidance and profit shifting. It has aggressively established vast areas of oil palm and pulp plantations under the control of its subsidiary companies on peatlands in Sumatra and Kalimantan.


OPEN IN ATLAS

LATEST POST

Palm-Oil-Driven Deforestation Stable in Indonesia in 2025 but Doubles in Papua

Industrial palm oil mill surrounded by large-scale oil palm plantations in Kalimantan

Counting Palms from Space: Measuring Illegal Oil Palm Production in Rawa Singkil

Established in 1998, Rawa Singkil Wildlife Reserve is a globally recognized biodiversity hotspot within Aceh’s Leuser Ecosystem. Using an AI-based palm-counting approach and conservative assumptions, we produced the first estimate of illegal oil palm production and its economic value inside this reserve. As of July 2024, we detected 62,006 oil palm trees planted illegally within […]

Indonesian Pulp Exports and Deforestation

By Adelina Chandra, Jason Jon Benedict, Brian Orland and Florian Gollnow Originally published by trase on December 9, 2025 . Reposted here with permission. Indonesia’s pulp sector ranks seventh largest in the world and is an important contributor to the national economy, accounting for about 4% of non-oil-and-gas GDP and providing 1.5 million direct and […]