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Powerbroker for

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  • Overall approach
    3/10
    • Overarching commitment on deforestation
      0/4
    • Signatory to an initiative tackling deforestation
      0/1
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "The implementation of the Controlled Wood standard is that Perum Perhutani complies not to produce wood originating from: 1. Illegal Logging 2. Violations of civil and traditional rights 3. Destruction of high conservation value"
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      What revenue comes from industries relevant to each forest risk commodity?: NA

      What proportion of revenue that comes from relevant industries is exposed to each forest risk commodity?: NA
      "Perhutani is a Company based on Forest Management, every of its activity prioritizes forest resources management, the forest resources conservation will also preserve Perhutani as a company....It becomes a duty of Perhutani to be committed in preserving forest resources and environment conservation in the area under the Company’s management and its neighborhood."
    • High-level management of deforestion
      1/1
      High-level management
      Yes
      1/1
      Which commodities does it apply to?: Timber

      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: NA
      "As means of transparency, Supervisory Board had performed supervisory and controlling processes in the Company throughout 2018 according to our roles and functions to answer challenge, needs and expectations of the stakeholders through review and evaluation on the Company’s performance and operations, both in terms of operational and financial performance. The Supervisory Board also encourages the Board of Directors to continuously innovate to ensure achievement of the designated work program and performance target." - The supervisory board assess company against commitments to uphold FSC certification
    • Executive compensation linked to deforestation
      Executive compensation
      No
      0/0
      Does it disclose the percentage of pay at risk?: No
    • Target to reduce emissions from land-use change
      0/1
    • Reporting on emissions from land-use change
      0/1
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
  • Commodity score
    24/90
    • Timber
      24/90
      • Commitment Strength
        4/17
        • Commodity-specific deforestation commitment
          4/9.5
          • Commitment details
            Credible certification scheme
            2/6
            Commodity-specific deforestation commitment
            Credible certification scheme
            2/6
            When was this commitment set?: NA

            If other certification, specify: NA

            Which certification schemes are used?: FSC

            Does the company have a commitment to the protection of other specific named ecosystems?: HCS
            "As a commitment in implementing Sustainable Forest Management, Perum Perhutani will be audited by a Certification Body (PT. SGS Indonesia) with FSC Controlled Wood standards in accordance with FSC Std 30 010 V2 0 En Controlled Wood...The implementation of the Controlled Wood standard is that Perum Perhutani complies not to produce wood originating from:1. Illegal Logging2. Violations of civil and traditional rights3. Destruction of high conservation value4. Conversion of natural forest (primary/secondary)5. Forest management with transgenic species"
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            What is the rationale for any exclusions?: NA

            If no, what is excluded?: Location

            What subsidiaries are explicitly included?: Central Java, East Java, West Java and Banten

            What percentage of commodity production/sourcing is excluded?: NA

            What subsidiaries are explicitly excluded?: NA
            "Perum Perhutani is a state-owned company assigned by the state to manage production forests and protected forests in the provinces of Central Java, East Java, West Java and Banten. Perum Perhutani has 57 KPHs in an effort to realize sustainable forest management. Perhutani's achievements in managing forests sustainably are manifested in its certificates, including PHPL, FSC Forest Management and FSC Controlled Wood."
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: NA
            "As a commitment in implementing Sustainable Forest Management, Perum Perhutani will be audited by a Certification Body (PT. SGS Indonesia) with FSC Controlled Wood standards in accordance with FSC Std 30 010 V2 0 En Controlled Wood...The implementation of the Controlled Wood standard is that Perum Perhutani complies not to produce wood originating from:1. Illegal Logging2. Violations of civil and traditional rights3. Destruction of high conservation value4. Conversion of natural forest (primary/secondary)5. Forest management with transgenic species"
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: NA
            "As a commitment in implementing Sustainable Forest Management, Perum Perhutani will be audited by a Certification Body (PT. SGS Indonesia) with FSC Controlled Wood standards in accordance with FSC Std 30 010 V2 0 En Controlled Wood...The implementation of the Controlled Wood standard is that Perum Perhutani complies not to produce wood originating from:1. Illegal Logging2. Violations of civil and traditional rights3. Destruction of high conservation value4. Conversion of natural forest (primary/secondary)5. Forest management with transgenic species"
        • Commitment to a traceable supply chain
          0/7.5
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
      • Associated Human Rights Abuses
        6/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          Details of commitment: ILO; Discrimination; Forced labour; Child labour; Freedom of association

          How far back in the supply chain does this commitment apply?: Tier 1
          "Perum Perhutan explicitly agrees, currently and in the future as long as it is associated with the FSC, it will not directly or indirectly engage in activities that are unacceptable to the FSC as follows: 6. Violation of ratified ILO Conventions, including the ILO Convention on forced labour, freedom of association and organization, remuneration, discrimination in employment and occupation, and the minimum age to be allowed to work."
        • Inclusion of small-scale farmers
          Yes
          2/2
          Inclusion of small-scale farmers
          Yes
          2/2
          What is the nature of that support?: Technical assistance/support

          If other, specify: NA

          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: NA
          "The partnership program revolving fund assistance provided through PKBL is prioritized for small entrepreneurs around forest areas so that later they can develop into entrepreneurs with integrity, tough, professional and independent."
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/2
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          0.5/2
          "Respect employee performance and achievements without discriminating against race, religion, gender or employee status"
        • Commitment to remediation
          No
          0/1
        • Commitment to test Free, Prior and Informed Consent
          No
          0/3
        • Commitment to respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        15/56
        • Reporting proportion of compliant volumes
          0/0
        • Reporting is independently verified
          Yes, using a third-party verification scheme or certification scheme
          0/2
          Reporting is independently verified
          Yes, using a third-party verification scheme or certification scheme
          0/2
          Which tools, approaches, third-party verification, including certification, schemes are used?: FSC

          Is the performance of compliance of some suppliers, sources, or origins not verified, and if so why not?: NA

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: NA

          Which processes or groups does the company use for third party verification?: FSC

          What methods are used for verification?: FSC

          What percent of the company's supply volume is verified using company verification systems?: NA
          "As a commitment in implementing Sustainable Forest Management, Perum Perhutani will be audited by a Certification Body (PT. SGS Indonesia) with FSC Controlled Wood standards in accordance with FSC Std 30 010 V2 0 En Controlled Wood...The implementation of the Controlled Wood standard is that Perum Perhutani complies not to produce wood originating from:1. Illegal Logging2. Violations of civil and traditional rights3. Destruction of high conservation value4. Conversion of natural forest (primary/secondary)5. Forest management with transgenic species"
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Jurisdictional approach focused on sustainable land use
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "Promoting Corporate Culture, GCG principles and fully implementing the principles of integrity include: Prioritize compliance and understanding of laws and regulations and heeding the prevailing norms in society including considering the best practices, which are deemed necessary and important to be done"[...]"Supervisory Board of Perhutani has been equipped with board manual for the duty implementation as included in Board Manual for Board of Directors and Supervisory Board and ratified as well as signed by the Supervisory Board and Board of Directors. The Manual is prepared according to the prevailing law and regulation and always be reviewed and updated periodically. The Board Manual for Board of Directors and Supervisory Board is a manuscript that has been agreed by the Board of Directors and Supervisory Board and shall be used as guidance or reference in implementing main duties and work function of each organ, to improve quality and effectiveness of work relation among the Company’s Organs to be in line with GCG principles implementation to achieve Vision and Mission of the Company." - Supervisory Board monitor compliance with laws
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          What is the nature of the grievance mechanism used by the company?: Own mechanism

          Which issues does the grievance mechanism cover?: Social; Environmental
          "Whistleblowing System (WBS) applies universally and equally to all Perhutani individuals, at all levels of employment including the Board of Directors, the Supervisory Board and members of the Committees under the Supervisory Board, the implementers of the violation reporting system itself as well as external parties who can provide information related to the violations that occurred."
        • Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          Total volume: 61,399m3

          Reporting certified/compliant volume: NA

          Reporting non-certified/non-compliant volume: NA

          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA

          What product types/sectors is this in?: Timber Product Processing
          "In 2020, the Perhutani wood industry has processed 61,399m3 of raw logs or 106% of the 2020 RKAP target. The processed teak logs are 19,738m3 and 98% of the 2020 RKAP targets have been processed. As much as 41,661m3 of logs were processed or reached 112% of the 2020 RKAP target. In total, compared to 2019, the realization of logs processing in 2020 was 10% higher"
        • Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What steps has the company taken to implement their labour rights commitment?: Training and Audits via Internal Control System

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA

          What is the status of those FPIC processes?: NA
          "Respect employee performance and achievements without discriminating against race, religion, gender or employee status. [...] In addition, Perhutani requires every contractor and supplier, as our partners, to always comply with employment regulations and prevailing safety, health and environmental standards in Perhutani. In addition, we firmly reject existence of any means of forced and child labors [...] Freedom To UniteAccording to the mandate disclosed in Law No.13 of 2003 on Employment, and Minister of Manpower and Transmigration Decree No. Kep 255/Men/2003 concerning Bipartite LKS Establishment Procedure and Membership Composition, Perhutani has a Collective Labor Agreement (CLA) that is prepared altogether with the workers union and reviewed regularly every two year. [...] Understanding on Internal Control System in Perhutani is done continuously by Executives in the Company and all employees to provide sufficient assurance on achievement of the Company’s organization through effectiveness and efficiency of implementation goals achievements from the program and activity that are carried out by the Company, reliability of the prepared financial and performance reporting, and compliance with prevailing law and regulation."
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Upstream: Impact assessments for land development/acquisition
          No
          0/4
        • Upstream: Reporting production/processing locations
          Reports location of company-owned processing facilities
          1/4
          Upstream: Reporting production/processing locations
          Reports location of company-owned processing facilities
          1/4
          What is the total area of land (in ha) that is available for future production, e.g. concessions?: NA

          What type of conservation designation and/or conservation status is used?: NA

          For what percent are point locations (of holdings under conservation) disclosed?: NA

          What types of ecosystems are these?: NA

          What is the total area (in ha) of natural ecosystem on land owned, managed, or controlled by the company?: NA

          In what jurisdiction(s)/subnational region does the company operate and/or source material?: Banten ; West Java ; Central Java ; East Java

          In what country(ies) does the company operate and/or source material?: Indonesia

          What is the area, in hectares of production units, on which non-DCF commodities are produced or processed, by country and jurisdiction: NA

          From what sub-national jurisdiction(s) does the company source material?: NA

          For what percent are boundaries (of holdings under conservation) disclosed?: NA

          For what percent are point locations (of certified land holdings) disclosed?: NA

          What is the total area in production (in ha)?: NA

          For what percent are boundaries disclosed?: NA

          What is the total land area owned, managed, or controlled by the company for the forest risk commodity?: NA

          For what percent are boundaries (of certified land holdings) disclosed?: NA

          What is the volume of each forest risk commodity that the company produced/processed/sourced in the previous year from each national or subnational location?: NA

          For what percent are point locations (of land holdings and processing facilities) disclosed: NA
          Perum Perhutani outline their regional divisions and the different regions of Java they source timber products from.
        • Downstream: Reporting suppliers
          No
          0/4
        • Upstream: Monitor compliance of production/processing
          Yes, using an internal verification system
          4/4
          Upstream: Monitor compliance of production/processing
          Yes, using an internal verification system
          4/4
          Does the company use a jurisdictional monitoring mechanism?: No

          If so, what jurisdictions and mechanisms does the company use?: NA

          Does the company use a certification system?: No

          How frequently is compliance assessed?: Not specified

          What tools, processes, bodies carry out monitoring of the company's production or processing operations?: NA

          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA

          For what percentage of production or primary processing operations that it owns, manages, or otherwise controls does the company use external processes or actors, such as certification, to monitor compliance?: NA
          "The responsibility for managing partnership programs and environmental development as well as CSR activities in Perhutani is carried out by the PKBL Unit which is under the supervision of the Board of Directors.Implementation of partnership programs, environmental development programs and CSR activities as a form of corporate social responsibility covering the business sector/sector, the form of the assistance program and the region. The scope of the distribution of the partnership program includes 8 (eight) fields/sectors, namely: a. Trading b. Industry c. Agriculture d. Plantation e. Fishery f. Farm g. Service h. Other."
        • Upstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
          Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No

          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
          Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
  • Commitment strength
    4/17
    Avg. score
  • Implementation and Reporting
    15/56
    Avg. score
  • Associated Human Rights Abuses
    6/17
    Avg. score

Profile

Perum Perhutani is a state-owned enterprise, which manages the state forests in Java and Madua, Indonesia. The total area covers over 2.4 million hectares. Perum Perhutani is selected as a powerbroker for timber.

Sector
Industry sector 
Forest Products
Segments
Producer, Trader, Processor
HQ
HQ 
Indonesia
Company Type
Company type 
CO
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.