Sinar Masis one of the largestconglomeratesinIndonesia.It was formed in1938.[1]It has numerous subsidiaries includingAsia Pulp & Paperandpalm oilproducerPT SMART.The company also acquiredBerau Coal EnergyfromAsia Resource Minerals PLC,a major mining group founded byNathaniel Rothschild,in a takeover initiated byFuganto Widjaja.[2]
Formerly | Sinar Mas Group (1938-2006) |
---|---|
Company type | Private |
Industry | Conglomerate |
Founder | Eka Tjipta Widjaja |
Headquarters | , Indonesia |
Website | www |
Sinar Mas was founded by a Chinese Indonesian tycoon,Eka Tjipta Widjaja.
Sinar Mas businesses operate in different sectors such as pulp & paper, real estate, financial services,agribusiness,telecommunications, and mining. The businesses are listed in the Indonesian and Singapore stock exchanges.
Business units
edit- PT Innovate Mas Indonesia
- PT Mora Quatro Multimedia (CEPAT NET,HOMELinks)
- PT Sinar Mas Komunikasi Teknologi Tbk (Sinar Mas Communication & Technology)
- PT The Univenus
- PT Sinar Dunia Makmur (Sinar Dunia)
- PT Indah Kiat Pulp & Paper Tbk (Asia Pulp & Paper)
- PT Indah Kiat Pulp & Paper Industries Tbk
- PT Pabrik Kertas Tjiwi Kimia Tbk
- PT Pindo Deli Pulp and Paper Mills
- PT Lontar Papyrus Pulp & Paper Industry
- PT Ekamas Fortuna
- PT Purinusa Ekapersada
- PT Sinar Mas Agro Resources and Technology Tbk[3][4]
- PT Sinar Mas Multiartha Tbk (Sinar Mas Multiartha)
- PT Bank Sinarmas Tbk (Sinarmas Bank)
- PT Simas Money Changer
- PT Asuransi Jiwa Sinarmas MSIG
- PT Arthamas Konsulindo
- PT Sinarartha Konsulindo
- PT Asuransi Sinar Mas (Sinar Mas Insurance)
- PT KB Insurance Indonesia
- PT Asuransi Summit Otto
- PT Sinar Mas Multifinance
- PT AB Sinar Mas Multifinance
- PT Sinartama Gunita
- PT Sinarmas Sekuritas
- PT Sinarmas Aset Management
- PT Sinarmas Futures
- PT Komunindo Arga Digital
- PT Arthamas Informatika
- PT Arthamas Solusindo
- PT Sinar Artha Inforindo
- PT Sinar Artha Solusindo
- PT Super Wahana Tehno
- PT Panji Ratu Jakarta
- PT Wapindo Jasaartha
- PT Balai Lelang Sinarmas
- PT Artha Bina Usaha
- PT Sinarmas LDA Maritime
- PT Sinar Artha Trading
- PT Autopro Utama Perkasa
- Sinar Mas Land
- PT Dian Swastatika Sentosa Tbk
- PT Golden Energy Mines Tbk (Sinar Mas Mining)
- Eka Tjipta Foundation
Criticism and controversies
editDefaults
editIn 2001,Asia Pulp & Paper (APP),the subsidiary of Sinar Mas, called a standstill on $14 billion worth of bonds and loans and stopped repaying its debt, including interest payments, in what is still the largest default to foreign investors in Asian market history.[5]On August 15, 2018, the Anti Forest Mafia Coalition, published a report revealing that two APP suppliers in East Kalimantan had cleared nearly 32,000 hectares of natural forest, in violation of APP’s no-deforestation commitment in February 2013.[6]Prior to this, APP and its pulpwood suppliers had a history of almost 30 years ofdeforestationand related destruction in the region. APP has hence remained one of only three companies in the world that the Forest Stewardship Council has disassociated from since October 2007.[7]On September 7, 2018, theWorld Wide Fund for Nature (WWF)openly recommended that companies and financial investors end their business relationships with APP and its affiliates.[8]
In 2015, Sinar Mas through APP Sinar Mas introduced the "Desa Makmur Peduli Api" (DMPA) program as a development of various public empowerment programs it had previously done. Originally, the DMPA was initiated to mitigate fires and encroachment of forests and lands around the company's concession area. But in its development, the DMPA's role became more holistic and not only mitigated, but also developed self-sufficiency for the villagers through eco-friendly forestry and eradicated tenure disputes in the region.[9]
Berau Coal
editBerau Capital Resources Pte issued US$450 million worth of 12.5% guaranteed senior secured notes, in 2015. PT Berau Coal Energy also issued US$500 million worth of 7.25% guaranteed senior notes in 2017. Both the 2015 and 2017 notes are currently in default. Since July 2015, the Berau Group has brought 4 separate rounds of scheme of arrangement / moratorium proceedings, with terms which have been described as “frankly insulting”at a time when global coal prices had doubled.[10]None of the schemes has succeeded.[11]
Environmental concerns
editSmart Tbk,thepalm-oilproducing subsidiary of Sinarmas Group, has been accused byGreenpeaceof causingdeforestationofIndonesian rainforests.[12]To investigate this accusation, Smart Tbk has appointedControl Union CertificationandBSI Group,[13]assisted by two researchers from theBogor Agricultural Institute.[14]
Haze in Singapore and Malaysia
editSinar Mas is one of the eight companies responsible for sending hazardous level of smog to Singapore and Malaysia. Yet, company said forest fires within concession areas did not mean that it was the company that had started the fire. Sinar Mas had not been involved in any deforestation since 2013 and have zero burning policy since 1997. [15]
Unilever
editIn December 2009,Unileversuspended purchases of palm oil from Smart Tbk, citing concerns that Smart Tbk had not provided sufficient evidence that they are not involved in unacceptable environmental practices.[16]However, Unilever plan to resume Palm Oil purchases if independent auditors, formed by Sinar Mas and Unilever, disprove allegations of forest destruction.[17]
Nestlé
editIn March 2010,Nestléfaced a public reputation crisis over its procurement of palm oil from Sinar Mas whose plantations are reported to be the cause of widespread rainforest andorangutanhabitat destruction.[18]To avert the public reputation disaster, Nestlé quickly moved to stop its palm oil procurement from Sinar Mas. After Sinar Mas appointed independent auditors to investigate the issue, Nestlé joined the committee and may resume palm oil procurement from Sinar Mas if they are cleared of the allegations.[19]In August 2010 the Nestlé chairman Peter Brabeck-Letmathe stated that the focus on his company is misguided. "You know very well that it's not Nestle's 350,000 tons of palm oil that brought about deforestation in Indonesia", he said, "but a political decision to use food as a source for biofuels." The United Kingdom and Germany alone have consumed 500,000 tons of palm oil for biofuels between them, he said.
Abengoa
editIn May 2010,Abengoa Bioenergyasked its raw material suppliers to boycott palm oil from any company in the Indonesian group of Sinar Mas, until it can demonstrate that it fully complies with Abengoa’s environmental and social sustainability policy. [20]
HSBC
editIn May 2010, focus of theGreenpeacecampaign moved toHSBC,[21]calling for them to sell their stocks in Sinar Mas. HSBC had admitted it held shares in Golden Agri-Resources Ltd, the palm oil arm of the Sinar Mas Group, via asset management funds including its Climate Change Fund.[22]Although according to the bank's ethical forestry policy, the bank would not finance plantations converted from natural forest since June 2004, the rule then did not apply to its asset management funds.[23]
By July 2010, HSBC had written to Greenpeace to inform them that the shares had been sold.[22]
Carrefour
editIn July 2010,Carrefourhas dropped Sinar Mas as its supplier.[24]“Carrefour is committed to sustainable development and has decided to cease sourcing of APP supplies for private label products from mid-year this year until further notice.” Carrefour Indonesia external communication manager Hendri Satrio toldThe Jakarta Postin a letter.[25]
Burger King
editIn September 2010,Burger Kingannounced that they would no longer source Palm Oil from Sinar Mas. They published a statement announcing: "After completing a thorough review of the independent verification report conducted by Control Union Certification (CUC) andBSI Group,we believe the report has raised valid concerns about some of the sustainability practices of Sinar Mas' palm oil production and its impact on the rainforest. These practices are inconsistent with our corporate responsibility commitments "[26]
Mattel
editOn 7 June 2011,Greenpeacelaunched "Barbie, It's Over", a global campaign to bring awareness and encourageMattelto switch pulp and paper producers.[27][28] Mattel uses paper sourced fromAsia Pulp & Paper,one of the subsidiaries of Sinar Mas Group in its product packaging, particularly in packaging in theBarbieline of toys.[29]
Exhibition and convention center
editTogether withKompas Gramedia Group,Sinar Mas Landhas builtICEon 22 hectares of land inBumi Serpong Damai,which is the largest convention and exhibition centre in Indonesia.[30]The ICE, started in 2012 and completed in 2016, equipped with 10 exhibition halls, a convention center, and a 300-room hotel on site. The center will be able to accommodate at least 200,000 visitors a day and 10,000 people concert hall.[31]
Philanthropy
editRecently the company has created Eka Tjipta Foundation, a philanthropic foundation that focuses on Education, Poverty and Renewable Energy. Jaya Suprana from the Indonesian Museum of Records (MURI) presented a certificate to the Eka Tjipta Foundation, a non-profit organization under one of the country’s largest conglomerates, Sinar Mas, for granting “the largest number of scholarships for undergraduate students during certain period".[32]
Sponsorships
editThe Sinar Mas Group has been the jersey sponsor of theIndonesian national basketball teamsince 2021.
References
edit- ^"Sejarah Eka Tjipta Widjaja Bangun Kerajaan Bisnis Sinar Mas".Detik Finance.2019-01-27.
- ^""Fuganto Widjaja, Sinar Mas: a new start in Indonesia"".Financial Times.2015-08-30.
- ^"Sinar Mas Agro Resources and Technology Tbk PT, SMAR:JKT profile - FT".markets.ft.
- ^"Home".smart-tbk.
- ^""A Notorious Name Returns to the Bond Markets"".Wall Street Journal.2018-02-09.
- ^""APP and APRIL violate zero-deforestation policies with wood purchases from Djarum Group concessions in East Kalimantan""(PDF).Auriga.or.id.2018-08-15.
- ^"Asia Pulp and Paper (APP)".Forest Stewardship Council.
- ^""WWF advisory to buyers and investors of the Sinar Mas Group/Asia Pulp & Paper (SMG/APP)"".Wwf.panda.org.2018-09-07.
- ^"APP Sinar Mas village program gets govt's appreciation".Jakarta Post.2017-12-14.
- ^"Coal PRICE Today | Coal Spot Price Chart | Live Price of Coal per Ounce | Markets Insider".markets.businessinsider.
- ^"Release of Claims Against 3rd Parties in Schemes of Arrangement"(PDF).Rajah & Tann Asia.March 2018.
- ^"Caught Red-Handed: How Nestlé's Use of Palm Oil is Having a Devastating Impact on Rainforest, The Climate and Orang-utans | Greenpeace International".Greenpeace.org. 2010-03-17.Retrieved2014-02-26.
- ^"SMART Appoints Control Union Certification and BSI Group to Verify Greenpeace Reports"(PDF).Smart-tbk. 1 April 2010.Retrieved2014-02-26.
- ^"SMART Refutes Allegations Made on Greenpeace Website"(PDF).Smart-tbk. 5 July 2010.Retrieved2014-02-26.
- ^"Company blames haze crisis on illegal activities".The Jakarta Post.1 October 2015.
- ^"Unilever takes stance against deforestation | Media centre | Unilever Global".Unilever.Retrieved2014-02-26.
- ^"Unilever to resume buying CPO if Sinar Mas cleared".Reuters.7 April 2010.
- ^Tabacek, Kai (18 March 2010)."MIC: Guardian Sustainable Business, Palm oil (environment)".The Guardian.London.
- ^"Nestlé committed to traceable sustainable palm oil to ensure no-deforestation | Nestlé Global".Nestle. 2010-04-13.Retrieved2014-02-26.
- ^"News:: News Archive:: 2010:: May"(Press release). Abengoa.es. 2010-05-10.Retrieved2014-02-26.
- ^"HSBC forest policy has loopholes you could drive a bulldozer through | Greenpeace UK".Greenpeace.org.uk. 2013-12-28.Retrieved2014-02-26.
- ^abMaung, Zara (8 July 2010)."MIC: Guardian Sustainable Business, Palm oil (environment)".The Guardian.London.
- ^Maung, Zara (21 May 2010)."Greenpeace links HSBC climate change fund to deforestation".The Guardian.Retrieved20 April2016.
- ^"Carrefour drops products from Indonesia's APP".Reuters.7 July 2010. Archived fromthe originalon 12 July 2010.
- ^"Sinar Mas reels from PR woes as Carrefour ends deals".The Jakarta Post. 2010-07-07.Retrieved2014-02-26.
- ^"Burger King drops palm oil supplier linked to Borneo rainforest destruction".Mongabay.2 September 2010.Retrieved2014-02-26.
- ^"Barbie, It's over".greenpeace.org.Archived fromthe originalon June 10, 2011.
- ^Sarah Anne Hughes (2011-06-08)."Greenpeace protests Barbie at Mattel headquarters".The Washington Post.
- ^"How Sinar Mas is Pulping the Planet"(PDF).Greenpeace.org.Retrieved2014-02-26.
- ^Mimi Hudoyo."New Indonesia Convention Exhibition centre to boost space by 25%".TTGmice.TTGmice.Retrieved27 April2015.
- ^"KGG & Sinar Mas to build RI's largest convention center | the Jakarta Post".thejakartapost.Archived fromthe originalon October 26, 2011.
- ^"Eka Tjipta Foundation receives MURI Award".The Jakarta Post.2010-07-30.