Citigroup has canceled its loans to Indofood Agri Resources and its subsidiaries. Citigroup is exiting its overall relationship with Indofood other than specific financial relationships not related to palm oil ingredients.
Three recent reports have documented labour and environmental violations by Indofood and companies related to Anthoni Salim, who with his family owns 44 percent of First Pacific, which owns 74 percent of Indofood.
Citigroup now joins other financial institutions like the Norwegian Government Pension Fund Global in cutting ties with Indofood. In 2016, the Norwegian Government Pension Fund Global sold its position in Indofood over deforestation related risks.
Indofood Agri Resources has long been known for its extensive environmental violations in the pursuit of palm oil. In the wake of recent reports the response from the financial sector has been encouraging. However, we also need to see action from those companies who knowingly use Indofood to supply their palm oil, so as to fully echo the sentiment set by the financial institutions.