Carrefour said on Wednesday he did not buy certain products in paper group in Indonesia Asia Pulp and Paper (APP), for environmental issues.
On the eve of the decision, Greenpeace accused APP, a subsidiary of Sinar Mas, of wanting to destroy the Indonesian rainforest and called distributors, including Carrefour, to stop buying its products.
APA has rejected the accusations, calling them "ridiculous".
The protection of the rainforest is seen as crucial in the fight against climate change as it absorbs a significant portion of greenhouse gas emissions.
Hendri Satrio, a spokesman of the Indonesian subsidiary of Carrefour, said that the French group had met with APA to advise of its decision.
"Carrefour is committed to sustainable development and decided to stop working with APP for products sold under its own brand from the mid-2010 until further notice," said Hendri Satrio in a statement .
He did not specify the amount of sales affected by this decision.
Carrefour does not sell products under its private label APA in its stores in Indonesia.
Other large groups of buyers of palm oil as Nestle and Unilever have announced they will cease to buy from Sinar Mas Group and its subsidiaries including APP and the producer of palm oil after LTP Smart Tbk Similar accusations of Greenpeace about the rainforest.
Another client of Sinar Mas, Cargill also announced it would stop to buy from the Indonesian firm if these allegations were proven.
Bustar Maitar, a Greenpeace activist in Indonesia, welcomed the decision of Carrefour.
"I am pleased to learn that the Carrefour group has acted. We also urge other companies to clean up from their suppliers that contribute to deforestation as the Sinar Mas group," he said.