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Bumitama

SUBJECT

On 17 January 2017, Greenpeace published a report, “Dirty Bankers” accusing three companies owned by Bumitama (PT Andalan Sukses Makmur, PT Karya Bakti Agro Sejahtera and PT Ladang Sawit Mas) involved in deforestation, destruction of HCV forest, development on peatland, developing without permit, and failure to meet timetables in pursuing for RSPO certification.

In the report, “Moment of Truth” released in March 2018, Greenpeace published visuals of drone footage captured on 11 December 2016 that revealed a new canal cutting into peatland forest from the PT Damai Agro Sejahtera (PT DAS) oil palm concession within the Sungai Putri peatland landscape of Ketapang district, West Kalimantan. The landscape is a vital habitat for orangutans and other endangered wildlife.

On 19 September 2018, Greenpeace published Final Countdown, Now or Never to Reform Palm Oil Industry report alleging Bumitama involved in scheme to obscure control of a number of concession areas and plantations which either did not have permits or where the permits had been revoked. The scheme was also to mislead RSPO into closing complaints against Bumitama.

PROGRESS

In January 2017, Bumitama has proactively informed us the claims made by Greenpeace, and sent us a letter of clarification on the allegations made against the company.

Apical will continue to engage with supplier and monitor further development of the case.

28 May 2018: Apical had sought clarification from Bumitama on the Greenpeace report, Moment of Truth. They responded by stating that the image featured on page 4-5 of the report was taken on 11 December 2016 – before the acquisition of PT DAS by Bumitama on 20 December 2016.

Upon takeover, Bumitama’s management had issued a strict stop-order for any plantation development until all requirements under the RSPO New Planting Procedure and NDPE are fulfilled.

With regards to allegations in the recent report, “Final Countdown”, Bumitama responded in a statement in related to PT GHL and PT HPA. The response is available here. The company also in a news release, is firmly stands by its commitments stated in its 2015 Sustainability Policy of NDPE. As a continuous improvement measure, it will adopt all constructive input to carry on improving the existing policy, procedures and processes as well as its communication to deliver and share the commitments in line with the set time-bound plans.

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