Sustainability

We have been dedicated to conservation, human rights, and economic development for more than 50 years. These high standards apply to all our companies including palm oil, timber, and wind tower production. We are always exploring new ways in which we can advance our environmental and social contribution standards to uphold our commitment to accountability that guides us today.

KORINDO ESG Charter of Commitments

Through this document, we highlight Korindo’s commitments to ‘Sustainable Development’, the protection of human rights and good corporate governance.

Scope:

This Charter applies to all of Korindo’s current and future holdings, subsidiary companies, joint ventures, companies over which we have management control, and third-party suppliers. To work with us, all third-party suppliers must agree that they will abide by this Charter. The new Korindo ESG Progress monitoring report is open to the public and includes up to date information.

Implementation, enforcement, monitoring and reporting procedures in cooperation with third-party verifiers will ensure compliance for all aspects of the policy and commitments.

Environmental Responsibility

We commit ourselves to protecting the environment by working towards ‘Sustainable Development’.

For the purposes of this document, we understand the term ‘Sustainable Development’ (SD) as defined by the Brundtland Commission Report published in 1987.

“Sustainable development (SD) is the kind of development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

To achieve ‘Sustainable Development’, we will:

- Minimize Greenhouse Gas emissions, especially carbon dioxide (CO₂).
- Cease the development on High Conservation Value (HCV) or High Carbon Stock (HCS) areas. All natural forest clearance has been suspended since February 2017
- Strengthen conservation measures, especially those related to forests and their biodiversity. These measures are not limited to combat threats caused by humans but also threats posed by wildfire.
- Maintain our commitment to the Forest Stewardship Council guidelines with regards to our timber, plywood and palm oil operations.
- Continue with our belief and practice of not developing peatlands under any circumstances.
- Continue with our zero-burning policy. Korindo has never used and will never use fire to clear land in any of its operations.

These commitments reinforce, and by no means hinder, Korindo’s pledge to the development of land assigned by the Indonesian Government for the purposes of producing timber, plywood and palm oil.

Social Contribution

We are committed to the development of Indonesia and its people. In that sense, our actions are not limited to just following the law but also to creating a meaningful impact in the communities that we work with.

To further achieve this goal, we will:

- Continue to provide health resources for people in the communities.
- Keep supporting education facilities.
- Continue creating business opportunities within the communities to help reduce poverty.
- Maintain and enhance our efforts to support communities fight climate change and global warming.
- Improve our procedures with regards to respecting the customary and cultural land rights of communities.
- Establish and practice Free, Prior and Informed Consent (FPIC) principle and process.
- Improve our conflict resolution frameworks as well as better communicate these to stakeholders and community members.
- Establish participatory mapping prior to any new development to determine stakeholder boundaries and land uses.
- Develop plasma plantations for the community according to the regulation by the Government of Indonesia.
- Actively create new programs to help improve the lives of people in the communities.

Labor Rights

We conduct our business in a manner that respects and guarantees human rights. Labor rights are not an exception.

Consequently, we will:

- Ensure that the rights of all people working in any operation in our supply chain are respected according to local, national and international laws. This includes international standards like the ones set by the International Labour Organization.
- Ensure that the people employed in our operations understand their rights and work responsibilities.
- Establish fair working conditions, not only in terms of wages but also in terms of security inside the workplace.
- Guarantee fair and equal employment opportunities for all employees regardless of race, nationality, religion, linguistic background, or gender.

Stakeholder Engagement

We commit to resolving complaints and conflicts through an open, transparent and effective process. We seek to engage and collaborate with the local, regional and national governments, certification bodies, regional projects, and NGOs to help better manage our operations.

Consequently, we will:

- Work with key stakeholders and independent verification bodies to implement sustainable growth and promote industry transformation.
- Maintain a monitoring and assessment program to communicate information, progress toward policy compliance, complaints resolution, and supplier engagement and verification.
- Publish progress reports on implementation of sustainable growth.
- Resolve grievances promptly, responsibly, responsively, and proactively.

For a more detailed explanation of the ESG Charter or ESG programs, please contact Korindo PR Team at pr@korindo.co.id

Dashboard

(Last Updated: October 2020)

Conservation

Forestry

Kalimantan: 16,375 ha
Papua: 99,750 ha

Kalimantan: 199,265 ha
Papua: 314,600 ha

Palm Oil

1 Company

4 Companies

Plywood

Governance

A good management is a foundation of a company’s sustainability and to support that, Korindo Group through the Environment, Social, and Governance (ESG) Division has made a policy and management system starting from the central level to technical implementation level in all of the Group’s operational activities.

We have also adopted the principles of Corporate Social Contribution and embedded them into our business management processes. Corporate policies and a commitment to continuous improvement underpin our sustainability goals. Through our group’s sustainability, we defined our own vision and direction to manage our impacts and opportunities with increasing efficiency.

Above all, KORINDO Group is committed to continuous improvement as the means to achieve our vision.

KORINDO is committed to following a strict Code of Conduct:

Support and respect the protection of human rights.
Ensure that we are not complicit in human rights abuse.
Uphold the freedom of association and of the right to collective bargaining.
Eliminate all forms of forced and compulsory labor, child labor, and discrimination in respect of employment and occupation.
Support a precautionary approach to environmental challenges.
Participate in initiatives to promote greater environmental responsibility.
Encourage the development and diffusion of environmentally friendly technologies.
Realizing the spirit of building the company’s “good governance” in an ethical/fair manner, committing, and taking a proactive role in corruption prevention and eradication.

Korindo is committed to sustainable palm oil and timber production and sourcing. We have dedicated ourselves to the conservation of nature, the absolute and unconditional respect of human rights, and to sustainable economic development and growth for 50 years in Indonesia and we’re always exploring new ways in which we can advance our environmental and social responsibility standards to uphold our commitments.

We are committed to implementing practical solutions that will be beneficial to the environment and to the communities in which we live and work. These solutions will require innovation, dedication, determination and creativity.

ESG 2020

Preamble

As part of Korindo Group’s sustainability policy, the Environmental, Social and Governance (ESG) Division developed a Grievance Mechanism for stakeholders called ESG 2020. Grievance is an allegation of a violation or problem raised by individuals or groups who want Korindo to seek and find solutions to a problem. In the initial stage, we will apply the procedure to the Korindo's Palm Oil companies located in Papua by June 2021 and then expand it to other business areas after evaluation.

Submission

Grievance Submission Procedure: Please click here to fill out the form then submit it via:

Phone

021 797 5959 Ext 352

Mail

• Wisma Korindo 13th Floor
MT Haryono Kav 62, Pancoran, Jakarta Selatan, Indonesia 12780
Attention: Divisi Environment, Social and Governance (ESG)

• Korindo Operational Office in the Regional Area

Email

esg@korindo.co.id

Procedure

Grievance List

No	Case	Description	Complainant	Processing	Status
1	C-20200516 Marius Tigamirop	Accidental death of Marius Tigamirop	Initiated by Korindo ESG Team	May 28, 2020	Closed

Environment

As a developer and harvester of local resources and consistent with KORINDO Group’s values, we understand our responsibility to operate these businesses with the highest level of integrity. As such, our resources division operates under the following principles:

Only utilizing land that has been zoned for development by the Indonesian government, to produce timber, plywood, or palm oil.
Continuing a zero burning policy and not utilizing burning to clear land in all of the company’s operations.
Operating our timber and plywood divisions consistent with the guidelines of the Forest Stewardship Council^®.
Operating our palm oil division consistent with the guidelines of the Roundtable on Sustainable Palm Oil (RSPO).
Offering only Indonesia Sustainable Palm Oil (ISPO) certified palm oil endorsed by the Indonesian Ministry of Agriculture.
Committing to not develop on peat land regardless of depth.
Conducting ongoing dialogue with companies throughout the palm oil supply chain, local communities, and non-governmental organizations.

In accordance with Korindo’s aim to develop productive multi-purpose timber plantations, improve people’s livelihood, and ensure effective plantation management, we support sustainable timber production through PHPL. At the moment, Korindo is managing 4 natural forest management concessions of 524,515 ha located in Kalimantan and Papua, and a timber plantation concession of 16,475 ha in Kalimantan in compliance with PHPL.

In regard to the timber plantation, we have completed the tree planting in the designated area and there are no further plans for development in the undeveloped area.

With this, KORINDO commits to fulfill its role to work on sustainable forest management. Our sustainable timber production process is based on three core ideas: production of lasting and balanced profit (Profit), environmental sustainability (Planet), and social welfare (People). We commit to continuous improvement and transparency in the activities of sustainable forest management:

All of the operational activities that will be held by Korindo have been through an analysis study on environmental and social impacts (AMDAL) including the making of management plan and environmental monitoring (RKL-RPL)
Implementing Reduce Impact Logging in forest management, which is a systematic approach in planning, implementing, monitoring, and evaluating wood harvest, which is a practice refinement of road construction, logging, and skidding. With road construction in adherence to the standard by paying attention to the contour, drainage, so it would minimize the erosion.
Supporting the government’s program for the development of low emission and the reduction of greenhouses through peatland management
Implementing an integrated fire management strategy in the form of: prevention, preparation, early detection, and fast response. (lintasterkini.com/03/11/2016/Korindo–latihan-simulasi-kebakaran-hutan.html)
Implementing an integrated pest management, forest enroachment control, wild grazing, and illegal logging
Establishing, maintaining, and securing 41,012 Ha of protected areas that are effective and proportional
Management and monitoring of endemic species or endangered flora and fauna including no hunting of those species in order to maintain biodiversity

Forestry Certification and Standards:

We commit to achieving internationally-recognized third-party standards and certification for our assets.
For forestry assets, we commit to forest management certification with the Forest Stewardship Council® (FSC®) for all eligible assets.
In cases where an asset is not eligible for FSC certification, an alternate standard will be selected such as The Indonesian Timber Legality Verification System (Sistem Verifikasi Legalitas Kayu, SVLK) or Sustainable Production Forest Management (Pengelolaan Hutan Produksi Lestari, PHPL).

KORINDO’s commitments to responsible timber production by complying with policies of no peat, no exploitation, no burning, and no deforestation are already in effect. We will continue to offer sustainable forest products in support of our customer demands. Monitoring on deforestation is done using the Landsat imagery updated once every 2 years.

We will monitor the implementation process and constantly improve operations related to timber plantation and production.

KORINDO will adjust and follow policies in ways that are consistent with Indonesian government regulations to protect forests, peat lands, local communities, and human rights as well as appropriate global standards.

Korindo Timber Sourcing Policy

Korindo Group is committed to the responsible sourcing of timber. Our long term objective is that all timber used in production that we purchase is sourced from sustainably managed forests that have been certified to credible certification standards and/or from post-consumer recycled materials.

This commitment will be realized through a stepwise approach to responsible timber sourcing that uses the best available techniques and information.

Towards these ends, Korindo Group hereby establishes the following policy commitments:

We endorse the Timber Legality Assurance System of Indonesia (SVLK) as the primary standard for sustainable timber sourcing. We will ensure to comply with Forest Stewardship Council (FSC)’s timber sourcing code.
We will reduce and eliminate its purchase of timber from the conversion of natural forest to other land uses by September 30, 2020, unless the conversion is justified on grounds of net social and environmental gain in the surrounding landscape.
We will progressively increase the trade in FSC certified and controlled material.
We will work towards FSC FM certification for our natural forest concessions or FSC CW certification for timber plantations in Indonesia by December 31 2023.
We will not purchase timber from controversial sources, including illegally harvested wood, destruction of high conservation values, entities accused of human, civil and traditional rights violations and genetically modified trees.
We will follow the Core Conventions of the International Labour Organization as defined in the 1998 “Declaration on Fundamental Principles and Rights at Work”.
We will work with all vendors and associated suppliers to trace the origin of our current products.
We will require that all vendors and associated suppliers demonstrate compliance with all legal requirements for forest management, timber harvesting and related trade.
We will communicate with stakeholders for open and constructive dialogue to help us continuously improve our business and our performance in regard to responsible forest trade.

The palm oil industry has the potential to generate significant economic and social development in Indonesia. Palm oil is one of Indonesia’s most successful agricultural products and largest agricultural exports. It also provides a means of income and economic development to many of Indonesia’s rural poor. The Indonesian palm oil industry is expected to continue its rapid growth in the medium-term. However, with this opportunity comes the responsibility to address the known environmental, social, and economic challenges and risks associated with this supply chain.

As of 2018, we have planted a total of 57,157ha of palm oil plantation out of 120,955ha of ‘Right to Cultivate (HGU)’ permit including infrastructure for mill (40 ha), camp (264 ha), and road (3,296 ha). In particular, we have not obtained any license or planted oil palms on peatland, including plasma plantation. We commit to sustainable palm oil production, which includes reduction of greenhouse gases, improvement of livelihoods, and food security.

Our palm oil plantation area is located in Papua, which is very related with the local community. Wild animals hunting is only allowed if it is done by the local community and in limited manner to fulfill needs for food or traditional ceremony. Other that that, wild animals hunting is not allowed and this is shown with a signboard.

All of our palm plantations have conducted AMDAL evaluations based on Indonesian government regulations and will apply the same principles to all future developments.

In addition, RKL/RPL reports are prepared for each corporation in accordance with AMDAL regulations and are regularly submitted to relevant government agencies. The report includes contributions to water quality, air quality, soil erosion, biodiversity management and local community, and those contents are clearly stated and managed by a professional staff.

In addition, in 2017, the SEIA evaluation was conducted by a consulting organization called BIOREF.

We endorse the Indonesia Sustainable Palm Oil (ISPO) 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. We also supported the establishment of 7 plasma cooperatives to develop palm plantations of indigenous people as one of the core ISPO programs. As of 2018, the development of plasma plantation have not yet begun because of deforestation issues in Papua. Therefore, we are trying to reach consensus through consultation with various stakeholders in order to develop plasma plantations in accordance with sustainable development method. We also have a total of 4 CPO mills (TSE A Mill, TSE B Mill, BCA Mill, DP Mill), all of which produce CPO by ISPO standards. In addition, we will continue to improve our operations to comply with the Roundtable on Sustainable Palm Oil (RSPO) standard and its implementation.

As stakeholders and international community show an increasing concern towards climate change, we are responding accordingly. We are making consistent efforts to reduce greenhouse gas emissions by reviewing to introduce renewable energy. In the future, we plan to analyze greenhouse gas emission level by using ISPO Calculator Methodology for our palm plantation to build systematic greenhouse gas management.

Our commitments to the responsible palm oil production by complying with policies of no peat, no exploitation, no burning, and no deforestation are already in effect. Until now, our CPO mills have not purchased FFB from external supplier and have used 100% of FFB production from our own plantations. We plan to continue this policy in the future.

We have been monitoring deforestation (including in HCV and plasma areas) using GLAD deforestation alert and fire using VIIRS fire alert since 2019. Both alerts can be accessed via https://www.globalforestwatch.org/. We have conducted deforestation and forest fires monitoring in the palm oil and plasma areas of ± 133.000 ha

Water remains as an essential element for the environment protection and oil palm productions. In order to ensure the sustainability of this important resource, we protect rivers by designating buffer zones around the river. We also carry out various initiatives that aim to ensure optimal water conditions, thereby creating an ideal environment for oil palm cultivation. The objective of our water system management is to prevent flood, minimize erosion, and to secure the water supply for our plantation areas during the dry season. implementation of our water management systems has been designed with careful consideration and comprehensive hydrology, agronomy, and topography studies, as well as environmental and social impacts. The effectiveness and impact of the water management system, including its construction phase, have been carefully analyzed and evaluated.

We are aware that protecting water quality is an important part of our lives and the protection of the environment. Therefore, we make extraordinary efforts to protect water quality.

We strive to manage the quality of water by periodically testing samples and analyzing the results at locations designated by each palm plantation. Samples are analyzed and approved by the Indonesian government and we will continue to do so.

In regard to water, we are primarily focused on controlling and mitigating the impacts of chemicals and mill waste on water quality in natural waterways. POME is treated in the Company’s Waste Water Treatment Plant through Cooling Ponds, Mixing Ponds, Anaerobic Ponds, and Settling Ponds.

We also have long term plan to construct Land Application to recycle the wastewater from CPO Mill. Instead of discharging the wastewater from CPO Mill that is rich in organic substances, we plan to use it as a fertilizer at our farms through Land Application. Reusing wastewater into organic fertilizers will also help reduce the use of nitrogen fertilizer, which is known to contribute to global warming.

We recognize the problems posed by excessive use of other agrochemicals such as pesticides, fungicides and herbicides which may be washed off by the rain into nearby natural waterways. As a part of our commitment to reduce chemical usage in order to mitigate impacts on the environment, nonchemical pest control measures are preferred at all our palm oil plantations. In particular, through Integrated Pest Management Systems designed to minimize use of chemicals by relying on biological and cultural alternatives.

Integrated pest management is the practice of using a range of strategies to sustainably maintain pest populations within economic thresholds while causing minimal harm to local ecosystems. Encouraging natural predators reduces pesticide application, we managed to reduce our use of chemical pesticides. Oil palm pests include rats, rhinoceros beetles, bunch moths, bagworms, and nettle caterpillars.

We promise to offer sustainable palm oil products in support of our customer demands and will monitor the implementation process and constantly improve operations related to palm oil plantation and production.

We will adjust and follow policies in ways that are consistent with ISPO and Indonesian government regulations to protect forests, peatlands, local communities, and human rights.

We commit to continuous improvement and transparency in management and monitoring of endangered flora and fauna, endemics, and protected in order to maintain biodiversity.

HCV and HCS

KORINDO only develops lands that have been zoned for development by the Indonesian government. Additionally, since February 2017 moratorium, we do not develop in High Conservation Value (HCV) or High Carbon Stock (HCS) areas and commit to conduct HCV and HCS studies before any new development in accordance with standard of HCV Resource Network’s ALS and HCS Approach.

As part of our commitment to operating sustainably and not developing on high conservation value land, KORINDO recently undertook HCV (High Conservation Value) and HCS (High Carbon Stock) self-assessments across its palm oil land concessions. The field assessments were carried out over a period of time by independent third-party assessors who are listed in HCV Resource Network’s ALS and Registered HCSA Organizations respectively.

KORINDO has finished self-assessments of HCV and HCS. These studies are now being reviewed by HCVRN and HCS Approach. (https://www.hcvnetwork.org/als/public-summaries) and (http://highcarbonstock.org/registered-hcsa-assessments/). KORINDO is also a member of GAA (https://globalagribusinessalliance.com/members-v2).

HCV: http://www.hcvnetwork.org/als/public-summaries (No. 44, 52, 55, 56, 60)
HCS: http://highcarbonstock.org/registered-hcs-assessments/ (No. 34 ~ 39)

Based on the above self-assessment results, we are protecting 26,159ha of HCV area and 17,642ha of HCS area (as of Sep ’18), by excluding from development area.

In the process of developing palm oil plantation, KORINDO Group has been actively following the provisions of the Indonesian Government such as the Zero Burning policy and the moratorium on peatland to create a healthy and balanced ecosystem.

Some of the concrete steps that have been made include: carry on mechanical land clearance and without burning, have reliable firefighters to monitor and prevent forest fires so it will bring a sense of security and comfort in the surrounding area of the palm oil plantations.

Fire Rescue Team

Palm Oil Plantation &
Processing Mechanism

Furthermore, KORINDO Group also cooperates with the local relevant technical agencies to carry on joint monitoring and evaluation to ensure there is no land burning. Please see the fire fighting simulation video that we conduct every year.

Certification	Product
Timber Legality Information System (SVLK) Timber Legality Assurance System (SVLK) is a tracking system whose development was made by involving multi-stakeholders to ensure the legality of sources from which timber being traded in Indonesia originates. SVLK is also meant to encourage the implementation of the existing government’s regulations related to trade. Timber Legality Assurance System (SVLK) serves to ensure the origins and management of timber products and raw materials obtained or derived from sources meet the legal requirements. Timber is considered legal when its origin, logging permit, logging systems and procedures, transport, processing, and trade can be proven to meet all applicable legal requirements.	Timber, Plywood, Wood Products
Sustainable Production Forest Management (PHPL) In June 2009, the Minister of Forestry of Indonesia issued Ministerial Regulation No. P.38/2009 on Standards and Guidelines for Evaluating the Sustainability Performance of Production Forest Management (PHPL) and Timber Legality Verification. This regulation obliged timber utilization permit holders and timber industries to implement sustainable forest management and timber legality standards. Entire forest area (100%) is PHPL certified	Timber
Forest Law Enforcement, Governance and Trade (FLEGT) FLEGT stands for Forest Law Enforcement, Governance and Trade. The EU published the EU FLEGT Action Plan in 2003. The Action Plan aims to reduce illegal logging by strengthening the sustainability and legality of forest management, improving forest governance and promoting trade in legally produced timber. FLEGT takes a multidimensional, coherent approach to overcoming the complex drivers and enablers of illegal logging. Indonesia was one of the first countries to start negotiating FLEGT with the EU. It was the first Asian country to implement FLEGT with EU.	Plywood
Forest Stewardship Council FSC is an international, non-governmental organization dedicated to promoting responsible management of the world’s forests. FSC certifies forests all over the world to ensure they meet the highest environmental and social standards.	Timber, Plywood, Wood products
Indonesian Sustainable Palm Oil The Indonesian Sustainable Palm Oil (ISPO) Foundation is a national non-profit organization aiming to improve the sustainability and competitiveness of the Indonesian palm oil industry and contribute to the Indonesian government’s objectives to reduce greenhouse gas emissions and draw attention to environmental issues.	Palm Oil

Labor

Safety and Human Rights
Procedures

KORINDO has been dedicated to conservation, human rights, and economic development for more than 40 years. These high standards apply to all our companies including palm oil, forestry, timber, and wind tower production. We are always exploring new ways in which we can advance our environmental and social responsibility standards to uphold our commitment to accountability that guides us today. Each palm oil company of KORINDO has stated its sustainability policy, in compliance with the FPIC principles, to improve the quality of life for indigenous people as follows.

Protecting Human Rights and Respecting Local Culture

We prohibit illegal, abusive, forced or child labor within our operations anywhere in our plantations and mills.
We commit to the protection and respect of human rights (the rights of all workers, including contractual, temporary, and migrant workers), the elimination of discrimination in employment and the promotion of equal rights, and lastly the freedom of association and the right to collectively bargain.
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.
We are strongly against the use of forced labor, and will work with parties to resolve complaints and conflicts based on Indonesian government regulations.

Contribution to Local Community and Local Economy

We commit to develop a regulated Plasma Palm Oil Plantation to contribute to economic growth of the local community.
We support the integration of our plasma farmers into the sustainable supply chain.
We commit to contribute to the local economic development through Corporate Social Contribution activities and programs, which include infrastructure, healthcare, education, and other suitable social empowerment programs that can help boost the welfare and livelihood of the local communities.

We always ensure that our employees have freedom to form an independent labor union in the company. This is proven by the existence of independent labor union in KORINDO Group.

We also appreciate the contribution from our employees who continue to grow together with the company. For their dedications, KORINDO Group has promoted 70% of all employees to be permanent employees (in 2018). The advancement of women is also part of our concern. So far, 20% of our employees are women, that we support to reach their best potential (in 2018). We are always committed to provide wages in accordance to the applicable district minimum wage (UMK), in order to promote the welfare of employees.

in accordance to the procedure operational standard. We also provide training on pesticide use, in collaboration with the pesticide commission.

In order to implement these policies, our palm oil companies have set up a dedicated department of indigenous people support to conduct dialogue and assistance programs for indigenous people. In addition, we have prepared detailed procedures for receiving and processing complaints and requests of indigenous people by integrating the know-how that we have cumulated through the communication with indigenous during the past 20 years in Papua Province.

Korindo Respect Policy Statement

Korindo Human Rights Policy

Korindo Health Safety and Environmental Policy Statement

Korindo Community Policy

Assistance & grievance procedures

Other procedures

We have mechanism for any conflicts.

CSC

KORINDO Group has been operating in Indonesia for 50 years. During this period, KORINDO Group has made efforts to build sustainable societies in various fields through its Corporate Social Contribution (CSC) programs. This is carried out in accordance with the company’s philosophy to build a harmonious, beneficial, and sustainable relationship with the community and stakeholders for the sake of improvement and prosperity. Our CSC activities focus on strategic, systematic, and sustained programs throughout the 5 pillars of the main program:

Education

We are aware that the quality of human resource development is one of the keys to success in sustainable development. KORINDO Group provides development assistance in the field of education in the form of funding, learning facilities, and school buses.

Health

Health problems have been one of several concerns of KORINDO Group to be addressed through CSC programs such as free healthcare services and clinics established in each plantation block. To reach secluded citizens and build a healthy lifestyle, KORINDO Group also provides health education through itinerant doctors along with the ambulances and free health services every two weeks. Through these activities, people can receive health checks and immunizations as well as free medicine to boost health and prevent disease.

Economy

To improve the economic independence and welfare of society, KORINDO Group provides productive business assistance such as business support for fish, poultry, cattle, and pig farms, rubber and palm oil plantations, as well as the ownership units of shop houses and stalls. With productive and direct business assistance, it is expected to increase family income, economic development, and social welfare in a sustainable manner.

Environment

KORINDO Group always seeks to preserve the environment. Our concern for the environment has been proven by concrete actions through tree planting and routine environmental cleaning. We always engage and cooperate with various elements of society such as local authorities, military, police, as well as religious and customary leaders, so the entire community can participate in environment conservation.

Infrastructure

Since regions may be hard to reach, infrastructure support certainly becomes a major need for the people. Therefore, KORINDO Group actively participates in the development of infrastructure, such as repairing bridges, constructing sport facilities, and mending roads, as well as establishing public facilities such as clean water supply, electricity, schools, clinics, churches and mosques, markets, shops, sport fields, village halls, the clan chief’s house, etc. This proves the commitment of KORINDO Group management to building a harmonious and prosperous life together with all the stakeholders in all locations.

Education

KORINDO has given scholarships for 8,792 students from primary to secondary schools and universities. We have also provided learning and sport tools to 109 preschools and secondary schools, supported the building and operation of 28 schools with 208 teachers in remote areas in Indonesia, and provided 36 school buses.

8792

Scholarships

109

schools

208

Teachers

School Buses

Health and

Social Activities

We have provided health supplements and playful-children weighing scales for 4,680 children under 5 years old in 72 child medical centers, built 19 clinics and 1 polyclinic, provided 1,000 medicine packages for flood victims in Jakarta, supported the building of the Dharmais Hospital National Cancer Center in Jakarta, and provided 200,000 meal packages for the victims of Aceh Tsunami, Padang earthquake & Jakarta floods.

4680

Children

Clinics

1000

Medicine

200000

Meal

Environment

We have supported the building of an agricultural research center and nursery center for 100,000 original Indonesian trees in Bogor, planted 221,600 productive trees in Bogor (West Java), Wonogiri (Central Java), Boven Digoel (Papua) & Timor Leste, provided 200 waste sorting bins for primary, junior and senior high schools in Pancoran, Jakarta, and provided lessons on environment conservation to 2,660 people living around river banks and villages. We also removed 12 tons of garbage from rivers and cleaned the surrounding areas.

100000

Indonesian Trees

221600

Productive Trees

200

Garbage Bins

Garbage from Rivers

Infrastructure

We have built and maintained 551 Km road and 80 bridges, supported the construction of 66 religious buildings (mosques, churches, etc.), provided 8 MW of electricity to local people, and provided clean water to 13,350 people.

551

Road

Bridges

Religious Buildings

Electricity

13350

Clean Water to people

Job Creation and

Economic Impact

There have been 12,300 direct employments and 21,000 consequential jobs, including employment of the local indigenous people up to 31%. We have contributed up to 40% of the GDP of Boven Digoel Regency and Merauke Regency in Papua. We also supported 450 entrepreneurs through cooperation in Central Kalimantan, Papua, Bogor, and Jakarta.

12300

Employment

21000

Consequential Jobs

GDP of Boven Digoel & Merauke

450

Supported Entrepreneurs

Income Generation

Activities

We have developed and supported the operation of a 350 ha rubber plantation for the local community. We have also built and supported the operation of breeding farms for local community with capacities of 7,000 chickens, 100 cows, 50 pigs and 10,000 fishes. We have built & supported the operation of a greenhouse for urban farming for the local community with a capacity of 2,000 organic vegetables per week. Lastly, we have supported 300 farmer’s families in fruit farming in Wonogiri, Central Java.

350

Rubber Plantation

17150

Livestock Animals

2000

Organic Vegetables / week

300

Farmer Families

Awards & Collaboration

Institution	Activities
Boven Digoel Multi Stakeholder Forum (USAID LESTARI) USAID LESTARI supports the government of Indonesia to reduce greenhouse gas (GHG) emissions and conserve biodiversity in carbon rich and biologically significant forest and mangrove ecosystems. USAID LESTARI activities are targeted in six strategic landscapes across Aceh, Central Kalimantan, and Papua. Multi-stakeholder forum was established in Boven Digoel, Papua in 2016.	Sustainable Development in Landscape Level
Global Agribusiness Alliance The Global Agribusiness Alliance (GAA) is an international, CEO-led, private sector alliance committed to harnessing the collective strengths of the global agribusiness sector to tackle environmental, social, and sustainability challenges to improve the resilience of farmers across the world. Particularly, GAA wants to help achieve UN Sustainable Development Goal 2: “End hunger, achieve food security and improved nutrition, and promote sustainable agriculture.”	Sustainable Development in Agriculture
Korea Overseas International Cooperation Agency’s “Medical Service Improvement for the Local Communities in Indonesia“ Project The first general hospital in Asiki, Papua province was established by the cooperation between Korea Overseas International Cooperation Agency and KORINDO. Papua is the region with the poorest regional health indicators such as infant mortality rate, AIDS and HIV prevalence, maternal and child health, and various diseases. The hospital’s establishment is expected to play a major part in the improvement of these indicators. It is anticipated that medical access for local residents can be greatly improved.	Healthcare
Kampar REDD+ project It is a joint project between Indonesia and the Korean government to protect peat swamp forest and reduce greenhouse gas emission in Kampar peninsula, Sumatra, Indonesia. KORINDO Group contributed to this project by spearheading research and project development together with research institutions from various sectors.	Peat Swamp Forest Protection

FAQ

What is KORINDO’s involvement in the palm oil industry?

KORINDO’s palm oil operations were founded in 1998 in Papua province, Indonesia. We operate over 55,000 hectares in Indonesia producing 100,000 tons of palm oil each year and employing over 10,000 people in Indonesia.

What is KORINDO’s policy on developing land for palm oil in Indonesia?

We recently announced a temporary moratorium on new land use. This applies to new land development in our oil palm plantations including our two largest and oldest plantations. KORINDO only develops lands that have been zoned for development by the Indonesian government. Additionally, we do not develop in High Conservation Value (HCV) or High Carbon Stock (HCS) areas, or in virgin rainforest areas.

What standards does KORINDO follow to develop palm oil, timber, or plywood in Indonesia?

All KORINDO companies are committed to operating in a sustainable manner, including our palm oil, plywood, and timber operations. The company complies with all Indonesian laws and regulations for development, labor, and community relations; a requirement to obtain the necessary planning permissions to use any land in Indonesia for commercial purposes. KORINDO also follows the industry’s best practices on sustainable development, such as those of the Roundtable on Sustainable Palm Oil (RSPO) and the internationally respected Forest Stewardship Council. (https://us.fsc.org/en-us).

What practices does KORINDO use to develop land for palm oil?

KORINDO has a zero-burning policy for all its palm oil, plywood, and timber operation. The company does not utilize burning to clear land. We do understand that there are illegal palm oil production activities taking place in Indonesia, such as illegal burning, and we stand firmly against those activities. KORINDO has undertaken steps to help combat issues such as illegal burning, by funding local firefighting operations. However, it is important to recognize that images can be misconstrued, such as a heat map in which a naturally occurring forest fire may be misinterpreted as illegal burning to clear forest.

How does KORINDO work with local communities on land development planning and rights?

At KORINDO, 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. Before any land is developed and prior to the registration of any palm plantation, KORINDO participates in public hearings with local residents, villages, and other stakeholders. This is not just a KORINDO practice but is required by Indonesian law. If these discussions don’t take place, the company does not get its permits.

How does KORINDO support local communities?

KORINDO works closely with the local communities where we operate. We prohibit illegal, abusive, forced, or child labor within our operations anywhere in our plantations and mills. We are committed to respecting the human rights of all our workers, whether they are full time or temporary. This includes promoting equal rights, the freedom of association, and the right to collectively bargain.

We also work hard to bring additional benefits to the community. KORINDO employs more than 10,000 Indonesian workers, has provided scholarships for over 2,500 students and supported the building local schools and hiring of teachers. We provide free medical service and treatment to local residents near our developments and have even begun building a local hospital.

What are KORINDO’s policies for development in peatland, High Conservation Value (HCV) or High Carbon Stock (HCS) areas?

KORINDO has not applied for or developed any palm plantation or timber plantation concession in peatland, HCV or HCS areas. Therefore, KORINDO doesn’t have any peatland over our all operation area to date(2020). We work closely with the Indonesian government bodies and third-party experts to conduct HCV and HCS studies prior to any development.