Tunas Sawaerma’s

Policy on Sustainable
Palm Oil

PT. Tunas Sawaerma

Palm oil trees are amazing natural resources, high-yielding and high land efficiency
­compared with other similar crops. Blessed with the optimum natural characteristics and
weather condition for palm oil tree cultivation, palm oil has become one of Indonesia’s
most successful agricultural products and largest agricultural exports with value reaching
U$D18.64 billion in 2015 and 8% annual growth. Palm oil has become one of I­ndonesia’s
economic anchors, contributing to 1.6% of the national GDP, providing livelihood for
more than 4.5 millions people, most of them in rural, remote and poor areas. It provides
the means of income and economic development to the country and its people.

Alongside with the increase of global demand for palm oil, stakeholders’ concern
­towards sustainable and responsible palm oil practices has increased, especially in these
last few years. As a response to this increasing concerns, PT. Tunas Sawaerma is committed
to implement sustainable and responsible palm oil production, which includes ­compliance
to all relevant law and regulations, conservation of biodiversity, eco-friendly operation,
labor practices, protection of human rights, and improvement of local c­ ommunities’ live-
lihoods. It is critical for us that all parts of our palm oil products are produced in environ-
mentally sustainable and socially responsible manner. We endorse the Indonesia Sustain-
able Palm Oil (ISPO) and as the primary sustainability standard for palm oil products and
support the efforts of the ISPO to develop mechanisms to distinguish sustainable palm oil
products.

SCOPE & BOUNDARY

This policy applies to all operation areas of PT. Tunas Sawaerma in Indonesia. It applies
to all internal operation and all activities conducted within our operational areas by
­suppliers, workers, employees, visitors, and other third parties. The policy is designed to
drive sustainable improvement and transformation throughout the company through
collaboration with local and central government, industry associations, academics, local
communities, customers, employees, and NGOs.
OUR COMMITMENTS

Compliance yy We are committed to comply to all relevant law and regulation of the ­Indonesian
to Law and government.
Regulation yy We conduct routine communication with local and central government and
contribute actively to the improvement of the Indonesian palm oil indus-
try through industry associations and our support towards the government
­programs.
yy We do not collaborate with illegal and/or unregistered organization/­institutions
under the law of the Republic of Indonesia.
yy We encourage transparency throughout our operation through reports, public
presentation, or other means of communication.

Efficient yy We are proud of what we do and committed to ensure the best quality of
Operation ­products for our customers.
& Quality of yy We implement strict quality control mechanism throughout our operation, from
Product seeds selection, plantation, harvesting, production and delivery of p
­ roduct to
our customers.
yy We constantly strive to improve yield and efficiency through innovation and
continuous improvement, namely integrated pest management s­ ystem, agron-
omy, plant nutrition studies, and/or other best practices where ­applicable and
suitable to our operation.

Sustainable yy We do not develop peat lands and do not plan to develop peat land into our
and Re- operational areas.
sponsible yy We commit to protect peat defined as soil containing greater than 65% o
­ rganic
Palm Oil matter, regardless of depth.
Plantation
yy We collaborate with the local and central government and competent, legal,
registered independent third party under the law of Indonesia to conduct High
Conservation Value (HCV) and High Carbon Stock (HCS) studies for our opera-
tion areas.
yy We involve and conduct stakeholders’ consultation, especially the local
­authorities, the government, local communities and our plasma farmers in con-
ducting HCV and HCS studies. As the result, we are committed to d ­ evelop our
new palm oil plantation area in accordance with these studies and c­ onsultation
results.
yy No slash and burn. We do not use fire for any operational purposes in our
­plantation area will maintain our long-standing zero burning policy.

Protecting yy We prohibit illegal, abusive, forced or child labor within our operations a­ nywhere
Human in our plantations and mills.
Rights and yy We commit to the respect and protection of human rights, the rights of all­
­Respecting ­workers, including contract, temporary, migrant workers, the elimination of dis-
Local crimination in employment and the promotion of equal rights, the freedom of
­Culture association and the right to collectively bargain.
 yy We respect the rights of indigenous and local communities to give or ­withhold
their Free, Prior and Informed Consent (FPIC) to the utilization of lands to which
they hold legal, communal or customary rights.
yy We strongly against the use of forced labor, and will work with parties to resolve
complaints and conflicts based on Indonesian government’s regulations.

Safe and yy We commit to provide our employees, workers and visitors a safe, healthy and
Healthy secured working environment.
Working En- yy We commit to comply with national and/or international health and safety
vironment ­standard in our workplace.
yy We provide health and safety trainings and socializations to all employees,
workers, and visitors.
yy We aim to achieve zero accident
yy We commit to provide all employees with the appropriate and adequate
­Personal Protective Equipment (PPE) and continuously promote health and
safety culture to all employees and our contractors.
yy We avoid the use of hazardous chemicals and fertilizers in our operations.

Contribu- yy We commit to develop Plasma Palm Oil Plantation that is regulated by

tion to Local ­Indonesian regulation to contribute to economic growth of local community.
Community yy Support the integration of our Plasma farmers into the sustainable supply chain.
and Local
Economy yy We commit to contribute to the local economy development through ­Corporate
Social Responsibility activities and programs, which include infrastructure,
healthcare, education, and other suitable social empowerment programs that
can help boost welfare and livelihood of the local communities.

REVIEW ON POLICY
We will continue to offer sustainable palm oil products in support of our customer de-
mands. We will monitor the implementation of this policy in our operation and processes
and constantly improve operations related to palm oil plantation and production. To that
end, this policy will be reviewed annually by the Management.

October 2016
PT. Tunas Sawaerma