PepsiCo and Nestlé sever ties with Indonesia’s largest palm oil supplier in wake of alleged human rights abuses | Sustainable Procurement News |

Nestlé announced it closed its joint venture with the Indofood Group last month, while PepsiCo reiterated its stance to not source palm oil – either directly or indirectly – from the company and its subsidiaries, purportedly linked to deforestation and human rights abuses. In January 2017, PepsiCo announced its Indonesian joint venture (JV) with Indofood – IndoFood Fritolay Makamur – was suspending the procurement of palm oil from Singapore-listed IndoAgri, a subsidiary of Indofood. The company updated its “PepsiCo sourcing of palm oil from Indonesia” document in September 2018, reiterating the suspension. It did, however, note it will continue its JV with Indofood, which is the sole producer of PepsiCo products in Indonesia.