Indonesia's Astra Agro Lestari appoints third party to review subsidiaries over alleged abuses

JAKARTA, March 31 (Reuters) - Indonesian palm oil company Astra Agro Lestari AALI.JK has appointed a third party to review practices of its subsidiaries following allegations by environmental groups of human rights abuses and procedural violations, the company said on Friday.

Several consumer goods companies have asked their suppliers to cease buying palm oil from AAL after environmental groups found last year that the company did not obtain consent from local communities before claiming land, that it improperly disposed of waste and cleared areas leading to flooding.

AAL appointed EcoNusantara, a company that advises firms on environment issues and social responsibility, to conduct the review at its three subsidiaries in Indonesia's Sulawesi island, which will start in April and last six months.

"During this period we will ensure access to all relevant information from AAL and its subsidiaries," the company said in a statement, adding it would publish findings of the review and determine necessary actions to solve the problems.

(Reporting by Bernadette Christina; Editing by Martin Petty)

((Bernadette.Christina@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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