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Indonusa

SUBJECT

In August 2018, Mighty Earth published Rapid Response 7. The report alleged PT Internusa Jaya Sejahtera (PT IJS), the subsidiary of Indonusa Group, of clearing 502 ha of forest and 168 ha opened through stacking lines between 9 March 2018 to 28 July 2018.

On 29 November 2018, Mighty Earth released a Rapid Response 10. The report claimed that between 28 July 2018 to 9 October 2018, a total of 517 ha of forest were cleared. According to the report, Indonusa supplied to Apical from other mills but not directly from PT IJS.

On 20 December 2018, Rapid Response 11 published. The report alleged that between 9 October 2018 and 4 December 208, a total of 253 ha of forest were cleared in area A within PT IJS concession. Also between 6 October 2018 and 11 December 2018, 382 ha of forest were cleared in Area B.

On 30 January 2019, Mighty Earth released Rapid Response 12. The report claimed between 4 December 2018 and 6 January 2019, a total 109 ha of forest were cleared in area A of PT IJS. Also between 11 December 2018 and 6 January 2019, 108 ha of forest were cleared in area B.

PROGRESS

On 24 September 2018:

Apical demanded clarification from Indonusa on the allegation in the Mighty Earth Rapid Response 7.

26 September 2018:

PT IJS clarified and claimed that they are in compliance with statutory procedures by the government. They conducted operational activities in the area stated in the report with approval by the authorities. They also clarified on 19 November 2018 that its operational activities has obtained all the legality / permits required. It has implemented SOPs relating to the group NDPE policy and its concessions in accordance with its allocations and Regional Spatial Plan (RTRW). Indonusa has also registered for ISPO certification in 2017.

9 November 2018:

Apical engage with Indonusa enquiring for evidence of compliance.

6 December 2018:

Apical met with Indonusa and give recommendations for the company to stop land clearing and to conduct HCV-HCSA assessment in order to determine on the next course of action.

Indonusa is very cooperative and Apical to monitor the progress of this matter.

Apical has put on hold sourcing until the resolution of the matter.