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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.

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