Complaint on : IOI


Sarawak, Malaysia

Processors & Traders

a. Local Community;
b. NGO (Grassroots)

16 March 2010

Infringement of P&C 2.2 the right to land use disputed

Land conflict
IOI Group's certification process for new certifications suspended in 1/4/11. Both parties have agreed for mediation. Mediator has been engaged through the RSPO Dispute Settlement Facility. Mediation process Stage 1 began in September 2011 and is on-going.(Note: Stage 1 is about Conflict assessment and Agreement to Participate in a Mediation. This stage would map the dispute through identifying the parties who should participate in the mediation and establish a primary agenda of issues that require resolution. It would also seek the commitment of the key parties to enter into a mediation, and establish their agreement to the mediation team).

Box F facilitating settlement (DSF)

25 July 2014

1. RSPO met with IOI, JOAS, on 9 Jan to find out JOAS's willingness to help facilitate the LTK communities in finding solution to the dispute between the LTK communities and IOI. 

2. JOAS agreed to facilitate and draft Terms of Reference was prepared. 

3. On 12 Feb 2014, IOI sent an email to RSPO & JOAS indicating that following the Court of Appeal decision in IOI's favour, it is unwilling to comply with the FPIC principles. An extract of the letter is as follows: 

As it is established that “The community has failed to get recognition of their claim to these lands in the courts” i.e. no NCR status in the 2 leases, why is it necessary to by-pass the country’s legal outcome to include NCR status of Berawan into the mediation process? Moreover, IOI-Pelita has no intention to widen the scope to include Long Jegah community into the scope of this mediation as stated in our earlier email. 

As IOI-Pelita is a 70:30 joint venture and Pelita being a state agency, the direction of TOR with participatory mapping is construed as indirect recognition of NCR status over the 2 leases and Company will not be a party to the process.  The FPIC process of participatory mapping is in direct conflict with the legal court’s decision of the land in this instance.  Company has no intention of breaking the country’s law in compliance with FPIC.

4. Following that, on 20 Feb 2014, JOAS sent a letter to RSPO withdrawing its offer to facilitate the resolution of the conflict through DSF because of IOI's rejection of the volunatry standards of the RSPO which goes beyond national legislation. JOAS had requested that the matter be sent back to the Complaints Panel. Please see letter attached.  

5. On 7 May 2014, the Complaints Panel sent a letter to IOI stating its disappointment and instructed IOI to state its stand and immediate plan of action towards the resolution of the dispute. 

6. On 20 May 2014, the Complaints Panel sent a letter to IOI reminding that the suspension of IOI was lifted because of IOI's earlier commitment to resolving the LTK dispute. The CP also asked IOI to honour its commitment as an RSPO member.  

7.  IOI replied on 21 May 2014 stating its willingness and readiness to resolve the dispute via DSF. 

8. On 18 July, Complaints Panel informed DSF that the matter is now handed over for resolution of the conflicts between the parties. 

All the relevant letters are attached.  

4 Feb 2013

The Dispute Settlement Facility (DSF) has been requested to step-up pre-mediation works with the parties, with a view to bringing the parties to the table by July 2013, for further mediated negotiations to resolve the conflict.

The Complaint Panel (formerly known as the Grievance Panel) have met up in November 2012 to review the status of the IOI-LTK case. The Panel recognizes the efforts and challenges faced by both parties in moving towards resolving the case.

Meanwhile, the Complaint Panel have agreed to lift the suspensions of new certifications by IOI with the exception of IOI-Pelita Plantation (Sarawak), which will not be certifiable until this dispute is being resolved.

8 Oct 2012

The hearing of the appeal by the state government has been postponed to a future date.

The scheduled LTK meeting at village level has been fixed for late October 2012.

9 Aug 2012

DSF arranged a meeting with the parties on 24 July 2012 in Miri, Sarawak.

Key decisions made at the meeting:/

a. All parties (IOI, LTK and LCDA) reiterate their commitment to go for mediated process.
b. LTK will conduct a meeting at village level, on 13th of August 2012, to select their leader who will represent them in the mediation process. Both IOI and LCDA were given the option to attend the meeting.


Statement from RSPO / Progress Update
Published on
RSPO's Complaints Panel letter to Dispute Settlement Facilities
18 July 2014
IOI's letter to RSPO's Complaints Panel 19 June 2014
IOI's letter to RSPO's Complaints Panel 21 May 2014
RSPO's Complaints Panel letter to IOI 7 May 2014
JOAS's reply to RSPO 20 February 2014
Progress Update on IOI Corporation Berhad (IOI) and the Long Teran Kanan community in Sarawak 8 May, 2012
RSPO Statement on The Status of The Mediation Between IOI Corporation Berhad (IOI) and The Long Teran Kanan Community In Sarawak 22 April, 2012
Announcement on IOI by RSPO Grievance Panel: Breach of RSPO Code of Conduct 2.3 & Certification Systems 4.2.4 (c) 5 April, 2012