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Jakarta Post

IFC suspends investment in palm oil over Wilmar case

  • The Jakarta Post

Jakarta   /   Thu, September 10 2009   /  01:01 pm

The International Finance Corporation (IFC), the private arm of the World Bank, has decided to suspend funding in the palm oil sector, affecting the world's top producer, Wilmar International, pending a review of internal procedures on environmental and social standards. In a press release, it was confirmed Wednesday that World Bank President Robert Zoellick had taken the decision in response to an appeal by a global coalition of NGOs. A group of 19 environmental groups, plantation smallholders and local organizations representing indigenous people filed in 2007 a complaint to the IFC ombudsman over Wilmar's business practices in Sumatra and Kalimantan. They claimed that Wilmar International did not comply with prevailing laws in Indonesia, particularly concerning social and environmental impact assessments, and was not working in accordance with IFC operating procedures a...