Greenpeace has been investigating the environmental transgressions of one of the world's largest pulp and paper companies—Indonesia's Royal Golden Eagle Group (RGE)—for years now. The non-profit’s latest explosive investigative report, Under the Eagle's Shadow, has just unveiled what researchers describe as one of the most sophisticated corporate structures designed to obscure environmental destruction in Indonesia.
The multi-year investigation reveals that RGE, controlled by Indonesian tycoon Sukanto Tanoto, operates through a labyrinthine network of 257 shadow companies spanning multiple jurisdictions. RGE is the owner of viscose fibre producers Sateri and Asia Pacific Rayon (APR).
This corporate maze includes 194 Indonesian entities and 63 overseas holding companies registered in tax havens such as Singapore, Hong Kong, and the British Virgin Islands. The intricate structure appears to have been deliberately designed to shield RGE from legal accountability and reputational damage associated with ongoing deforestation activities.
Between January 2021 and May 2024, Greenpeace documented approximately 68,000 hectares of forest clearance across concessions believed to be under common control with the RGE group. This destruction has occurred despite RGE's high-profile "No-Deforestation" commitments and sustainability pledges that have earned the company various certifications and international recognition.
The environmental toll extends far beyond mere tree loss. Much of the cleared land encompasses sensitive peatland ecosystems that serve as massive carbon storage reservoirs. When destroyed, these peatlands release enormous quantities of greenhouse gases, undermining both Indonesia's climate commitments and global efforts to combat climate change. The habitat destruction has particularly impacted critically endangered species, including the Sumatran orangutan, whose forest homes continue to shrink under plantation expansion.