RSPO Temporarily Suspends IOI Certification

JAKARTA, IndonesiaThe Roundtable on Sustainable Palm Oil (RSPO) temporarily suspended Malaysia's second-largest palm oil planter, IOI Corp., over land dispute complaints and charges of deforestation by non-governmental organizations.

RSPO sent a formal letter to IOI informing the company it breached two core membership mandates and obligationsland conflicts and conversion of lands with high conservation values into crop lands. The grievances were brought to the RSPOs attention by several Non Governmental Organizations (NGOs) and the local community of Long Teran Kanan in Malaysia's Borneo state of Sarawak.

IOI has 28 days to revert with an acceptable solution to these matters, which preferably should be mutually agreed upon by parties involved. Failure to deliver the required proposal by the due date of May 2, 2011, will result in the group considering further sanctions against IOI, which may include the suspension of your license for new transactions involving Certified Sustainable Palm Oil materials including GreenPalm certificates."

IOI responded by stating that it accepts this decision and will work closely with RSPO in developing a plan to find an acceptable solution to the issue of compensation. However, IOI said it is concerned over the sustained actions by various NGOs and some online news websites which seek to mislead public opinion on the issue by repeating various false statements and unfair allegations against IOI.