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Anglo-Eastern Plantation

SUBJECT

On 19 September 2018, the Greenpeace published a report, Final Countdown: Now or Never to Reform the Palm Oil Industry. The report stated that between 15 February 2015 and 21 December 2017, PT Kahayan Agro Plantation (PT KAP) cleared about 2,650 ha of secondary forest and some of the cleared forest was orangutan habitat.

Apical responded to Greenpeace request for clarification on 31 May 2018 and 3 September 2018 in regard to the alleged suppliers.

In 12 April 2019, Mighty Earth published Rapid Response 14 where it alleged that 189 ha of forest were cleared between 18 May 2018 and 1 Apr 2019 in PT KAP concession despite moratorium.

Mighty Earth published Rapid Response 15 on 24 May 2019. The report stated that between 1 April 2019 and 2 May 2019, PT KAP cleared 40 ha of forest.

Mighty Earth published Rapid Response 24 on 1 Feb 2020. The report stated that between 15 Dec 2019 and 13 Jan 2020, a total of 11 ha of forest (HK2/HCS) were cleared in the concession. Mighty Earth requested that the company re-instate the moratorium in this area until this dispute is resolved and recommended that the company contacted the HCSA Secretariat to seek guidance on resolving this dispute.

In January 2020, HCSA Secretariat informed AEP that there may have been an interpretation error in the HCSA peer reviewed assessment. To address this situation the HCSA secretariat will commission a rapid review by a new peer reviewer to examine the Medium Priority Patch (MPP) area under question in the PT KAP HCSA assessment. Given the risk that of deforesting HCS-HCV forest/areas that should be conserved, the HCSA secretariat highly recommends PT KAP issues an immediate stop work order on any further clearance in the area under question until clarification on the matter is obtained.

In February 2020, the peer review concluded the area was incorrectly designated as a MPP and is in fact a High Priority Patch (HPP) according to the HCSA Toolkit requirements. The HCSA Toolkit clearly states that HPP areas must be conserved and therefore any development or management plans related to this revised HCS assessment outcome will need to be updated. It also requested that PT KAP to confirms in writing that it has issued a stop work order for the area of concern and will work toward a solution that supports the conservation of this area and an alternative development area for the community

PROGRESS

4 June 2018

Apical acted upon the allegations made against AEP by demanding a clarification and resolution of grievance matters from AEP.

12 June 2018

Apical had a meeting with AEP further clarification on this issue.

AEP has been cooperative and provided us with clarifications on the allegations supported by a HCV report done by Aksenta, a socio-environment management consultant.

AEP has now assigned PT. Meganesia Tirta Foresta, a registered High Carbon Stock (HCS) Network assessor to conduct a High Carbon Stock Assessment for its concession.

Apical will continue engaging AEP on this issue.

Jan 2019

Apical had a meeting with AEP to further discuss on the grievance case. AEP informed that the HCS has completed and they plan to submit their HCS to HCSA Steering Committee for peer review.

PT KAP informed that they stop land clearing in early 2018 and HCS assessment was completed in July 2018. PT KAP resume land clearing around August 2018 which based on the HCS assessment.

Apr 2019

AEP responded to Apical on the latest grievance cases stated in Mighty Earth 14 where they denied the allegation. Based on AEP verification and overlay the alleged area with HCV/HCS map, the 189 ha mentioned in the Might Earth report is located outside of the HCV/HCS area.

Although HCS peer review is yet completed, AEP reiterated that they’re still referring to the HCS documents conducted by their consultants in the development of concession area of PT KAP.

AEP informed that they’re fully committed toward sustainability in all its subsidiaries.

May 2019

AEP has issued a memorandum to cease all the land clearing effective on 27 May 2019 until the completion of HCSA peer review or further instruction from management.

Sept 2019

Apical seek clarification on allegation of on-going deforestation in PT KAP by Mighty Earth in their RRR 19. AEP denied the allegation as PT KAP has not conducted any clearing since the moratorium. Apical also conducted internal verification and the finding is the same that no new clearing in the concession. Meanwhile on the HCSA peer review, AEP informed that it is still on going.

Dec 2019

AEP notified Apical that HCSA peer review has been completed. The report can be found here.

Feb 2020

Apical seek clarification on the latest issue reported by Mighty Earth that PT KAP had started further land clearing in the areas classified as HK2 after 15 December 2019. Mighty Earth wants that PT KAP put back the moratorium in the area until the issue is resolved. They recommended that PT KAP engaging HCSA Secretariat on resolving the matter.

According to AEP, HCSA informed that there may has an error in their interpretation of the peer review assessment. Therefore, HCSA will conduct a rapid review by a new peer reviewer and recommended PT KAP to stop work order on the clearance in the area until this matter is resolved.

On 10 Feb 2020, HCSA informed the results of the second HCSA peer review which focused on the area of concern in the southwestern portion of PT KAP’s plantation. The peer review concluded the area was incorrectly designated as a Medium Priority Patch and is in fact a High Priority Patch (HPP) according to the HCSA Toolkit requirement. Whilst it is recognized the area is a community plasma, HCSA Secretariat provided some recommendation which includes to issue again stop work order and identify a new plasma area for the community to develop.

However, AEP stated that they will continue to follow the results of the first peer review assessment and submit a complaint to HCSA on 28 February 2020, and to also inform that the surrounding community has refused to move from plasma location based on the engagement they conducted earlier. The development of plasma still in progress.

May 2020

A meeting was held between PT KAP and HCSA Secretariat. Based on the meeting, HCSA Secretariat willing to help to engage with plasma community in explaining the proposal to conserve the area and its importance. HCSA Secretariat to help PT KAP to explain to community on why the decision must be taken and HCS forest must be conserved.

At the same time, PT KAP willing to conserve and put the area (disputed area – south west area designated for plasma) under moratorium.

Nov 2020

AEP informed that due to Covid-19 pandemic the visit to plasma area has been postponed and no decision made by HCSA.

Feb 2021

AEP has engaged the community and announced commitment to the conservation of the remaining plasma area of 150 ha as HCS area. Based on this commitment, they conclude that the HCS assessment and peer review process is completed. PT KAP already ensured that the areas to be cleared does not have important values in relation to and outside the conservation area based on HCS assessment and final peer review outcome. Full statement of PT KAP can be found here.

At Apical Group, our commitment to sustainability stems right from the top. Apical’s President is supported by the Director of Sustainability and various business heads, to ensure sustainability is integrated within business and functional units, and embedded in the company’s core values and initiatives.

Sustainability topics are discussed at Board meetings held quarterly. We also have dedicated Sustainability teams based in Kuala Lumpur, Malaysia, and Pekanbaru, Dumai, Medan, Jakarta and Balikpapan in Indonesia. The Sustainability teams are tasked with implementing and monitoring our commitments through constructive stakeholder engagement and collaboration.

In addition, there is also a dedicated Social, Security and Licensing (SSL) department in each refinery we own, to handle social and licensing matters in compliance with national regulations as well as Apical Sustainability Policy. The team also oversees Corporate Social Responsibility (CSR) programmes to support better livelihoods in local communities.

Achieving sustainability goals requires more than just collaboration with our key stakeholders. Collaboration across industries and peer companies is also crucial and hence, we constantly look for and participate in new partnerships, relevant industry membership and certification schemes.

We participate in industry membership and certification schemes such as the Tropical Forest Alliance 2020, Roundtable on Sustainable Palm Oil (RSPO), including the RSPO P&C Review Taskforce and the RSPO Indonesia National Interpretation Working Group, the International Sustainability and Carbon Certification (ISCC), and the Indonesian Sustainable Palm Oil (ISPO)

Dato' Yeo How

APICAL GROUP PRESIDENT

Di Apical Group, komitmen kami terhadap keberlanjutan didukung penuh dimulai dari jajaran managemen teratas. Presiden Apical didukung oleh Direktur Keberlanjutan bersama seluruh kepala bisnis, memastikan keberlanjutan terintegrasi dalam unit bisnis dan fungsional, dan tertanam dalam nilai dan inisiatif inti perusahaan.

Topik keberlanjutan dibahas pada rapat dewan yang diadakan setiap tiga bulan. Kami juga memiliki tim keberlanjutan yang berdedikasi berbasis di Kuala Lumpur; Malaysia, dan Indonesia; Pekanbaru, Dumai, Medan, Jakarta dan Balikpapan. Tim Keberlanjutan ditugaskan untuk menerapkan dan memantau komitmen kami melalui keterlibatan dan kolaborasi pemangku kepentingan yang konstruktif.

Selain itu, kami didukung penuh oleh departemen Sosial, Keamanan, dan Perizinan (SSL) khusus di setiap unit bisnis yang kami miliki, untuk menangani masalah sosial dan perizinan sesuai dengan peraturan nasional serta kebijakan keberlanjutan Apical. Tim juga mengawasi program Tanggung Jawab Sosial Perusahaan (CSR) untuk mendukung penghidupan yang lebih baik di masyarakat setempat.

Mencapai tujuan keberlanjutan membutuhkan lebih dari sekadar kolaborasi dengan pemangku kepentingan utama kami. Kolaborasi lintas industri dan perusahaan sejenis juga penting dan karenanya, kami terus mencari dan berpartisipasi dalam kemitraan baru, keanggotaan industri yang relevan, dan skema sertifikasi.

Kami berpartisipasi dalam skema keanggotaan dan sertifikasi industri seperti Tropical Forest Alliance 2020, Roundtable on Sustainable Palm Oil (RSPO), termasuk P&C Review Taskforce RSPO dan National Interpretation Working Group RSPO Indonesia, International Sustainability and Carbon Certification (ISCC), dan Indonesian Sustainable Palm Oil (ISPO).

Dato' Yeo How

PRESIDEN APICAL GROUP