Investigations allege links between palm oil firms and Borneo forest loss
The story at a glance
A Rainforest Action Network (RAN) investigation, reported by Mongabay and the International Consortium of Investigative Journalists (ICIJ), alleges commercial, operational and logistical links between First Resources, KAS Group and FAP Agri in East Kalimantan. RAN says it traced palm oil from mills operated by KAS Group and FAP Agri to a First Resources storage and shipping facility on the Mahakam River. These are investigative findings, not a legal determination of shared ownership or control. 123
RAN also reports natural-forest clearance across a selected sample of concessions associated with the companies. First Resources denies controlling KAS Group, says it does not source from KAS Group, and describes FAP Agri as a supplier in which it has no ownership stake and whose operations it does not manage. 12
What you need to know
- RAN says its investigation, conducted from January to July 2026, drew on shipping records, internal accounting documents, employee testimony and field observations. It used these materials to trace palm oil from KAS Group and FAP Agri mills to a First Resources facility on the Mahakam River. The reporting presents this as evidence of supply-chain connections, not proof of legal ownership or control. 12
- Satellite analysis cited by RAN found more than 9,800 hectares of natural forest cleared between January 2021 and May 2026 across 11 selected concessions operated by eight companies it associates with the three groups. The figure covers that sample, not all concessions or the companies’ total operations. 12
- The companies’ alleged relationships are disputed. First Resources denied controlling KAS Group and said it does not buy palm oil from it. The company said FAP Agri is a supplier, but that it has no ownership stake in FAP Agri and does not manage its operations. 2
- First Resources has pointed to the outcome of an earlier RSPO complaint. Its December 2025 disclosure says the Appeals Panel dismissed the appeals while upholding a three-month membership suspension over process-related disclosure matters. That case predates the new investigation and did not adjudicate its 2026 evidence. 42
- RAN characterises the reported clearance as deforestation and raises potential concerns about sustainability commitments. First Resources said areas developed in one of its concessions were not classified by its assessors as high-conservation-value or high-carbon-stock areas. The reporting does not establish that all the reported clearance was illegal. 12
Why this matters
If the reported links and forest-loss findings are substantiated, they raise questions about how palm oil from forest-loss areas may move through wider supply chains and how companies’ sustainability commitments are applied. The evidence currently reported is contested, and responsibility has not been established by a legal ruling. 123
What happens next
The reporting leaves open whether buyers, lenders, regulators or certification bodies will conduct new reviews, and what any such reviews might conclude. Further company responses or complete supply-chain records could help clarify the reported shipment and corporate links. 123
What we know
- RAN says it used shipping records, accounting documents, employee testimony and field observations in its investigation. 12
- The reported forest-loss figure is more than 9,800 hectares in a sample of 11 concessions, covering January 2021 to May 2026. 12
- First Resources disputes the claimed control of KAS Group and says it does not buy palm oil from that company. 2
- The 2025 RSPO case concerned process-related disclosure matters and is separate from the newer investigation. 42
What we don't know
- Whether complete company, port and supply-chain records independently confirm the reported shipment and corporate links. 23
- The full extent and status of forest clearance across all concessions associated with the three groups, beyond RAN’s selected sample. 12
- Whether buyers, lenders, regulators or certification bodies will review the findings, and what conclusions they might reach. 23
- Whether First Resources or KAS Group will publish further evidence or respond to the specific shipment and personnel findings. 2
Read the reporting
This WildNews briefing synthesises and summarises reporting from the sources below. WildNews did not produce the original reporting. Learn more about how we use AI
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