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Bumitama Group

SUBJECT

On 6 December 2019, Mighty Earth released the Rapid Response Report 22. The report claimed PT Damai Agro Sejahtera, a subsidiary of Bumitama of clearing 948 ha of peat forest between 6 September 2019 and 13 November 2019.

On 8 January 2020, Mighty Earth published the Rapid Response Report 23. The report claimed PT Andalan Sukses Makmur, a subsidiary of Bumitama cleared 129 ha of forest between 4 September 2019 and 24 December 2019.

PROGRESS

December 2019

Apical demanded a clarification from Bumitama on the grievance case reported.

Bumitama explained that the areas located under the concession of PT Damai Agro Sejahtera (DAS) were not cleared but impacted by forest fires that struck the landscape of Sungai Putri forest during the peak of the dry season in September 2019.

While the change in vegetation colour from the satellite imagery may seem as a result of land-clearing, the ground-truthing check identified varied extent of damage, from apparently un-impacted to scorched and burned vegetation.

Bumitama is conducting internal investigation to identify the causes and prevent repeated occurrences of fires in its areas in the future, especially in conservation areas where habitats of endangered species and Borneo’s unique biodiversity are at risk. As majority of the burn scarred areas falls under designated conservation zones, these will be rehabilitated in partnership with local community and expert organisations.

The report on fires in PT DAS was release by Bumitama on 4 November 2019 which can be found here.

January 2020

Apical seeking clarification from Bumitama on the deforestation allegation at PT Andalan Sukses Makmur (PT ASM).

Bumitama informed ground checking was conducted upon receiving the report. The reports showed that this is not a result of land clearing but a fire scar from forest fires that occurred in the area in September 2019.

According to Bumitama, these areas which are owned by the local community and thus enclaved from the management, are a part of the set-aside areas of 2,500 hectares (about 36% of PT ASMR’s permit) that were excluded from its plantation development plans and were set-aside for conservation based on the rapid HCS assessment and peat delineation study conducted in April 2014 (refer to announcement on 12 September 2014: http://ir.bumitama-agri.com/static-files/5ce66171-9006-449f-9189-b206eca3e0c7 ).

Upon reporting by the patrolling team, the fires were tackled by fire-response personnel. Two teams of 24 men were dispatched to the site, equipped with pumps and water hoses to douse the flames. However the forest terrain, lack of access roads and peat soil made it very difficult extinguish. Once put out, both incidents were recorded and reported accordingly to relevant local authorities, as well as to the RSPO under the hotspot monitoring scheme.

Although Bumitama has been successfully working with the larger community of Sekonyer village on alternative livelihood programmes and conservation and rehabilitation of set-aside areas in PT ASMR, however, certain individuals that own parts of this land persisted in mining activities, or used this land to develop small scale paddy and oil palm plantation. Bumitama has notified them that the fruits from this land will not be accepted by our mills in other locations (Bumitama does not have a mill in PT ASMR) as such development violates Bumitama’s 2015 Sustainability policy.

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