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  1. A letter dated January 24, 2024, No. S.16/BPPHH/SPHH/HPL.3.2/B/1/2024, from the Ministry of Environment and Forestry (KLHK).
  1. On January 24, 2024, KLHK issued a letter to several Independent Assessment and Verification Institutions (LPVIs), including PT Mutu Hijau Indonesia. The letter pertained to allegations of illegal logging by PT Cakra Sejati Sempurna, as reported by online news media. According to data from the RPBBI system, PT Korindo Ariabima Sari had been sourcing raw materials from PT Cakra Sejati Sempurna. As per KLHK’s directive, LPVIs are tasked with tracing the origin of these raw materials to ensure their legality.
  1. PT Korindo Ariabima Sari procured timber that had been previously verified for legality under the company’s VLK/PHL Certificates. This verification was done through the Timber Legality Information System (SILK) and the Forest Product Administration Information System (SIPUHH). The timber was purchased from PT Cakra Sejati Sempurna in May and June 2023.
  2. No further transactions have taken since then.
  3. The transactions were conducted following timber legality verification procedures, which included:
    • Checking the availability of the VLK/PHL (Timber Legality Verification System) certificate.
    • Verifying the concordance of SKSHHKB (Certificate of Legality of Log Forest Products) documents with the log barcodes in SIPUHH.
    • Including clauses b and c of Article 11 in the contract, which stipulate that PT Cakra Sejati Sempurna as the first party, guarantees compliance with Indonesian Government regulations and takes into account environmental sustainability.
  4. As of January 31, 2024, in accordance with the letter issued by KLHK, the Korindo Group has excluded PT Cakra Sejati Sempurna from its supply chain
  5. PT Mutu Hijau Indonesia will conduct further investigations into the case according to the official letter received on February 13, 2024. Korindo Group and PT Korindo Ariabima Sari will maintain a cooperative attitude throughout the investigation.
  6. Korindo Group remains committed to transacting only in timber that has been are legally and sustainably harvested, in line with VLK/PHL standards.
  1. On February 23rd, 2024, PT Mutu Hijau Indonesia confirmed, through a letter of clarification addressed to the Ministry of Environment and Forestry, that the transaction involving the purchase of logs by PT Korindo Ariabima Sari from PT Cakra Sejati Sempurna was properly conducted, with the necessary evidence and supporting documents. PT Korindo Ariabima Sari has demonstrated competence and commitment to the responsible purchase of raw materials by verifying their legality and source, as required by the Ministry