In early 2015, scientists monitoring satellite images at Global Forest Watch raised the alarm about the destruction of rain forests in Indonesia.
Environmental groups raced to the scene in West Kalimantan province, on the island of Borneo, to find a charred wasteland: smoldering fires, orangutans driven from their nests, and signs of an extensive release of carbon dioxide into the atmosphere.
“There was pretty much no forest left,” said Karmele Llano Sánchez, director of the nonprofit International Animal Rescue’s orangutan rescue group, which set out to save the endangered primates. “All the forest had burned.”
Fingers pointed to the Rajawali Group, a sprawling local conglomerate known for its ties to powerful politicians like Malaysia’s scandal-plaguedprime minister. But lesser known is how some of the world’s largest banks have helped Rajawali — and other global agricultural powerhouses — expand their plantation empires.
The year before the clearing of trees in West Kalimantan, Rajawali’s plantation arm secured $235 million in loans — funds that the Indonesian company used to buy out a partner and bolster its landholdings — from banks including Credit Suisse and Bank of America, according to an examination of lending data by The New York Times.