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PT Tunas Baru Lampung Tbk (TBLA)

SUBJECT

On 24 November 2016, Foresthints News published a news regarding PT DGS, claimed to be a subsidiary of PT Tunas Baru Lampung Tbk (TBLA) has performed new planting in last year burned peatlands targeted for peat restoration, in the province of South Sumatera, Indonesia.

On 28 November 2016, another news published by Foresthints News, reported the investigation actions taken by Indonesia’s Ministry of the Environment and Forestry on this grievance. It is stated in the news that, “Two director generals of the ministry concluded from the results of the field investigation that PT DGS, a subsidiary of PT Tunas Baru Lampung Tbk (TBLA), has failed to comply legally with the terms of its permit granted by the ministry in 2012.”

On 19 December 2016, Chain Reaction Research published a report “2016 Sustainability Benchmark: Indonesian Palm Oil Growers”. Allegations were made against PT TBLA for clearing forests and/or peatlands.

PROGRESS

December 2016

01 December 2016: Apical requested for clarification from PT Tunas Baru Lampung Tbk (TBLA) on the allegations.

08 December 2016: Apical received clarification letter from PT TBLA, stated in denial of any new planting on burned peatlands, and the operations of plantation is run in compliance with the location permit obtained from the ministry.

July 2017

11 July 2017: Apical engaged with Sungai Budi Group on latest update of the case, Apical continues engaging with Sungai Budi Group with a letter to demand that:

  1. There must not be oil palm planting on the concession where the permit was granted for sugarcane (PT DGS);
  2. Any land clearing on peatland related to palm oil operations must cease immediately;
  3. A time-bound action plan to rectify the current situation; and
  4. A grievance verification visit to the implicated concessions.

We will closely monitor further development of the case.

Apical has stop sourcing from Sungai Budi group while continue to monitor the development of the allegation.

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