Nestle severs ties with Indonesia's largest palm oil supplier

Nestlé has announced that it is cutting ties with IndoFood, one of Indonesia's largest palm oil companies, citing commercial reasons. With this, Nestlé would stop sourcing palm oil, either directly or indirectly, from IndoFood.

Recently, PepsiCo has also announced that it would be severing ties with IndoFoods.

Earlier, PepsiCo suspended sourcing palm oil from IndoAgri, one of IndoFood’s subsidiaries, after complaints of labour abuses surfaced from plantations. The complaints were further investigated by Rainforest Action Network, the International Labour Rights Forum and Indonesian labour rights group Oppuk.

Fatah Sadaoui, campaigns manager, SumOfUs, an international consumer watchdog, stated, "Nestlé made the right decision in ending its joint venture partnership with Indofood. The Roundtable on Sustainable Palm Oil now has to send a strong message to Indofood and other palm oil suppliers clearing rainforests, abusing workers and destroying orangutan habitat by suspending Indofood."

"Nestlé's decision is also a reminder for PepsiCo that it is time put its money where its mouth is and either bring Indofood in line with its No Deforestation, No Peat, No Exploitation commitment or put an end to their joint venture partnership," Fatah added.