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Makin Group

SUBJECT

Mighty Earth released the Rapid Response Report 21 on 6 November 2019. The report alleged PT Cipta Karsa Kahuripan (PT CKK), a subsidiary of Makin Group of clearing 79 ha forest between 25 February 2019 and 6 September 2019. According to the report, Makin Group supply to Apical from other mills but not directly from PT CKK.

On 18 July 2019, Mighty Earth released the Rapid Response Report 17. The report alleged PT Mekar Karya Kahuripan (PT MKK), a subsidiary of Makin Group of clearing 25 ha of peat forest between 5 January 2019 and 29 June 2019. According to the report, Makin Group supplied to Apical from other mills but not directly from PT MKK.

PROGRESS

July 2019

Apical demanded a clarification from Makin Group on the grievance case reported.

Makin Group denied the allegation of land clearing stated in the report. Makin Group informed that the management has stopped all the PT MKK’s business activities since 15 September 2016 as stated in the Notory Act No 12/2016. Makin Group provided copy of the act to Apical.

August 2019

Makin Group informed that the concession mentioned in the report do not belong to PT MKK. Makin has engaged Bupati Ketapang via letter dated 19 August 2019 recently on the land status and to confirm that:

  • PT MKK never conducted any activities including pre-survey on the land after received the letter from Bupati Ketapang dated 1 June 2015.
  • The six months period from the issuance of Bupati Ketapang letter (dated 1 June 2005) has passed with no activities conducted, hence, the proposed land for PT MKK was automatically cancelled.
  • Operation of the company has been ceased since 15 September 2016 as per the copy of Notory Act.
  • Reiterated that the company had not performed any activities in the propose area since the issuance of the letter from Bupati Ketapang dated 1 June 2015.

Makin also shared with Apical the PT MKK letter to Bupati Ketapang to affirm that no activities conducted therefore the land notice is no longer valid.

November 2019

Apical demanded a clarification from Makin Group on the PT CKK issue reported in Rapid Response Report 21.

Makin Group clarified the PT CKK do not own the location permit for the concession mentioned in the report and the company has been ceased its operation since September 2016. Makin explained that similar to PT MKK case, it did receive land offer from Bupati Ketapang in June 2005. PT CKK has issued a letter to Bupati Ketapang dated 19 August 2019 and informed that:

  • PT CKK never conducted any activities including pre-survey on the land after received the letter from Bupati Ketapang dated 1 June 2015.
  • The six months period from the issuance of Bupati Ketapang letter (dated 1 June 2005) has passed with no activities conducted, hence, the proposed land for PT CKK was automatically cancelled.
  • Operation of the company has been ceased since 15 September 2016 as per the copy of Notory Act.
  • Reiterated that the company had not performed any activities in the propose area since the issuance of the letter from Bupati Ketapang dated 1 June 2015.

Apical received a copy of the letter including the land offer by Bupati Ketapang.

June 2020

With consent from Makin, Apical has shared with Mighty Earth the confidential copy of Notory Act on the deactivation of PT MKK / PT CKK operation dated 15 Sept 2016 as well as copy of official letter to Bupati Ketapang dated 19 August. Bupati Ketapang acknowledged receipt as evidenced by stamp and signature dated 21 Aug 2019 on the letter (content of the letter as per our update in Aug 2019 and Nov 2019).

Following further engagement with Mighty Earth on the evidence, this matter has been resolved to Mighty Earth’s satisfaction.

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