Reference is made to the recent report by Rights & Resources Initiative titled "Turning Point: What future for forest peoples and resources in the emerging world order?" released on 1 February 2012. The report contains false and inaccurate statements about Sime Darby Plantation and its Liberian operations, which is misleading and misrepresents the actual situation in Liberia.

Sime Darby Plantation is a world leader in sustainable agricultural practices and is the world's largest producer of certified sustainable palm oil. Eighty seven per cent of the Group's total palm oil production has been certified by the Roundtable on Sustainable Palm Oil (RSPO). This commitment to sustainable agriculture is enforced in all Sime Darby Plantation's business units, including the fledgling operations under Sime Darby Plantation Liberia (SDPL) Inc. The RSPO's guidelines as adhered to by SDPL, encompass all aspects of operations. It also includes regular and direct engagement with communities, adherence to national laws and regulations, environmental stewardship and the use of best agricultural practices. As a company that works within communities, SDPL respects the traditions and practices of the people of Liberia and engages regularly with local communities and civil society groups. Such engagements have resulted in the withdrawal of a complaint alleging land grabbing, among others, made by Liberian civil society groups to RSPO in October 2011. Thus, the alleged transgressions attributed to SDPL in the RRI report are untrue.

Sime Darby Plantation signed a 63-year concession agreement with the Government of Liberia for 220,000 hectares of land to be developed into oil palm and rubber plantations. SDPL was set up to manage the plantations in Liberia and the first estate was launched in May 2011. To date, SDPL employs more than 3,000 Liberians. As of 11 December 2011, SDPL has developed 12,594 hectares and planted oil palm on 1,180 hectares.

All SDPL's estate managers are Liberians. They are trained and given the opportunity to learn best agricultural practices from the largest plantation company in the world. These managers are learning on the job and in turn pass on their knowledge to field workers. Once its estates are fully planted, SDPL will create up to 35,000 jobs, which will help Liberia address critical unemployment issues and rebuild her economy. SDPL not only provides jobs to local communities but also assists to improve infrastructure, amenities and schools. SDPL contributes to the wellbeing of its stakeholders while ensuring its plantations are developed responsibly and sustainably.

SDPL's employees and workers are compensated based on the signed Collective Bargaining Agreement (CBA) with the worker's union, General Agriculture and Allied Workers Union of Liberia (GAAWUL).

Sime Darby Plantation respects the local laws of Liberia and the traditions and practices of the Liberian people. As its standard operating procedure, SDPL undertakes Social & Environmental Impact Assessments (SEIA) before any development begins. SDPL will only start developing land after Free, Prior and Informed Consent (FPIC) has been obtained from the local communities. This is in keeping with Sime Darby Plantation's own internal policies, the FPIC guidelines under the New Planting Procedures (NPP) of the RSPO and Article 32 of UN Declaration of Rights of Indigenous People. Additionally, SDPL has hired independent assessors such as Flora & Fauna International, to study the SEIA process. SDPL has not evicted legal land owners nor relocated legal residents and neither has it desecrated cemeteries or sacred sites. No virgin forests have been cleared and neither have wetlands been filled in.

Within its present concession area, SDPL actively engages with community leaders and the community itself before any development. This means the plan of action for the specific area is shared at fora, where two-way communication is practiced between the people and the company. Specially designed awareness programmes have been and are consistently carried out in the concession areas. Where appropriate, compensation is paid to landowners who agree to develop their lands. Compensation plans are actively communicated to land owners during the many engagement sessions. Land owners are compensated for each palm, banana, kola and any other tree that is within their own land boundary, with as much as US$6.00 per plant. As of 30 September 2011, SDPL has paid US$1,348,978.94 as crop compensation to 2,132 farmers who have agreed to have their land developed, after negotiations were completed. If such agreement is not forthcoming, SDPL will NOT enter the land and force development.

Similarly, SDPL has strict policies against the clearing of virgin forests. In fact, it is Sime Darby Plantation's policy to conserve high conservation value forests (HCVF). This policy is applicable in all its operations regardless of geography. Areas that are preserved include:(i) natural forests within the estates (ii) wetland areas (iii) river and riparian boundaries (iv) water catchments and effluent pond areas (v) marginal soil areas (vi) areas with slopes of more than 20 degrees gradient (vii) land belonging to local indigenous peoples for which FPIC has not been obtained.

SDPL's Liberian concession area is mostly abandoned agricultural land neglected during the civil wars, and degraded forests. For example, some of the rubber estates within SDPL's area still contain trees planted in the 1960's. The age profile of these retards productivity, minimising the economic potential of the land and the communities that depend on the land.

Sime Darby Plantation is committed to the balanced development of the economy and the people of Liberia. SDPL is and will continue to ensure that all development carried out is done so in accordance with the best practices its parent company is well known for. Sime Darby Plantation believes in proactive engagement and supports responsible and accountable reporting.

All core businesses registered double-digit earnings growth

Kuala Lumpur, 29 February 2012 – Sime Darby Berhad’s diversified portfolio of core businesses delivered a strong, all-round financial performance for the first half of FY2011/2012 ended 31 December 2011. The Group registered a pre-tax profit of RM3.1 billion and a net profit of RM2.2 billion for the period under review, an increase of 40 percent and 42 percent respectively compared to the corresponding period in the previous year.

Higher realised crude palm oil (CPO) prices and operational efficiency improvements boosted the Plantation Division’s operating profit to RM1.8 billion in the first half of the year under review, an increase of 38 percent over the same period a year ago. For the first six months of the financial year, the Division achieved an average CPO price of RM2,872/MT against RM2,692/MT in the corresponding period last financial year.

Fresh fruit bunch (FFB) production in the period under review rose by 5 percent to 5.4 million MT, largely driven by the higher production in Malaysia. FFB yield per mature hectare for the Group rose by 4 percent, led by the 11 percent increase in Malaysia, which more than offset the 8 percent decline in Indonesia that was due to change in the cropping pattern. The Group’s CPO production was also higher by 10 percent compared to the first half of FY2010/2011 as oil extraction rate (OER) for the Group improved by 0.5 percent to 21.9 percent. Indonesia’s OER had improved significantly by 1.1 percent to 22.9 percent while Malaysia’s OER increased by 0.2 percent to 21.3 percent.

The midstream and downstream segment however reported a loss of RM37 million for the first six months of FY2011/2012 as it continued to be adversely affected by negative margin due to higher feedstock costs, lower demand for refined products in Europe and competition from other downstream players in Indonesia.

The Industrial Division continued to thrive on the back of robust activity in the mining, logging and construction sectors in Australia and Malaysia to post an operating profit of RM628 million, an increase of 38 percent over the same period in the preceding year. The Singapore operations also rebounded with an improvement of 34 percent in comparison with the corresponding period last financial year due to the stronger demand for engines and higher delivery of heavy equipment.

The China and Hong Kong operations meanwhile reported a decline of 11 percent in the period under review against the first half of FY2010/2011, affected by the slowdown in construction activities following the tightening credit policies by both banks and local governments. Nevertheless, in the second quarter, operating profit for the China and Hong Kong operations recorded a 71 percent growth to RM26 million compared to the preceding quarter as certain sectors of the Chinese economy continue to remain robust and active.

The Malaysia and China operations continued to be the main forces behind the Motors Division’s resilient performance in the first half of FY2011/2012. The Division’s operating profit rose by 11 percent from RM277 million to RM308 million, resulting from the strong demand for all marques and the receipt of dividend. Driven by the sustained popularity of its BMW, Hyundai, Porsche and Ford models, the Malaysia operations registered an operating profit of RM117 million in the period under review, more than double the RM58 million recorded in the same period a year ago.

While the operating profit of the China, Hong Kong and Macau operations were weaker by 32 percent in the first half compared to the corresponding period last financial year, the second quarter results had improved by 29 percent against the preceding quarter supported by higher unit sales of BMW in Hong Kong and better margins in China.

The Property Division showed a significant increase of 46 percent in its operating profit to RM193 million in the first half of FY2011/2012 against the same period in the previous year. This was mainly attributable to the higher percentage of property development works completed and sales in the various townships including USJ Heights, Bandar Bukit Raja and Ara Damansara. New launches during the quarter under review such as the Isola in Subang Jaya and Eleven Avenue in Bandar Bukit Raja were also well received, with an average take-up rate of 92 percent.

The Energy & Utilities Division’s operating profit grew by 127 percent in the first half of the year under review compared to the corresponding period a year ago. This was primarily due to the recognition of deferred revenue of RM99 million from the Malaysia power plant. The China Utilities operations reported a slightly lower operating profit of RM37 million, a decline of 3 percent compared to the first half of FY2010/2011 as it incurred higher costs associated with capacity expansion.

The Healthcare Division posted a higher operating profit of RM14 million, a 7 percent increase compared to the same period in the preceding year. This was underpinned by the higher inpatient and outpatient visits, offsetting the higher overhead costs incurred for the Sime Darby Medical Centre Ara Damansara, which had its soft launch on 12 January 2012.

President/CEO’s Summary

Commenting on the overall performance of the Group, Sime Darby President and Group Chief Executive, Dato’ Mohd Bakke Salleh said, “The Group had a commendable first half with all divisions achieving double-digit earnings growth. Our continuous emphasis on enhancing earnings quality has resulted in a robust performance across each Division. Though there has been considerable economic uncertainty in the global economy over the past six months, our businesses have persevered and remained resilient in the face of a challenging business environment.”

With regards to the execution of the strategy blueprint, he reported that key strategic initiatives to drive operational excellence and build an optimal investment portfolio for growth have been put in place in the first half of FY2011/2012. “Each division has established a strong platform for continuous operational improvements. Indeed, the current financial performance is partly a result of the efforts undertaken to enhance operational efficiencies. All divisions are also focused on pursuing organic and inorganic growth opportunities that had been identified in the strategy blueprint,” he added.

In particular, he highlighted the completion of the acquisition of the Bucyrus distribution business in Sime Darby Industrial Caterpillar dealership territories in December 2011. “This represents an opportunity to grow our presence in the region and also expand our leading position in our territories in Australia. The addition of the former Bucyrus product line will create new profit opportunities for the Division and we expect the transaction to be accretive to earnings by the fourth quarter of FY2011/2012.” He also assured that the disposal of the Sime Darby Engineering (SDE) fabrication yards remains on track and is targeted to be completed by the end of this financial year.

In view of the recent concerns over the performance of Malaysian palm oil downstream players, he stated that the Division has been intensifying its efforts to rationalise and strengthen the processes in its downstream operations. “Our main focus is on prudent cost management and enhancing plant efficiency as well as productivity. We also have a pipeline of planned investments to diversify our product range into higher-margin speciality products.”

Interim Dividend

The Group announced an interim dividend of 10 sen per share for the financial year ending 30 June 2012.

For more information and materials, please visit Sime Darby's Investor Relations's page.

Kuala Lumpur, 8 November 2012 - Tun Musa Hitam, Chairman of Sime Darby Bhd, has announced today that he is not seeking reelection to the Board of Directors of the country’s largest conglomerate, at its Annual General Meeting. Following Tun Musa’s retirement, Tan Sri Samsudin Osman will serve as Chairman of the Board in the interim.

Tun Musa had earlier stated that he would seek re-election at this year’s AGM as stated in the company’s annual report 2012. However, he explained to the Board this morning that he had, at the time, been unable to communicate his true intention due to several reasons, including a desire to contain speculation. Tun Musa also said that his retirement was something he had originally planned for much earlier. “I had intended to serve Sime Darby for three years from 2007. However, due to a number of reasons, that decision was delayed to now. Now, as I hand over the reins of this great company to the next generation of leaders, I do so with an easy heart,” Tun Musa told shareholders this morning.

Tun Musa will also relinquish the Chairmanships of the Sime Darby Board Remuneration and Nomination Committee, the Boards of Sime Darby Plantation Sdn Bhd, Sime Darby Unimills, Sime Darby Hudson & Knight and the Kuala Lumpur Golf and Country Club (KLGCC).

Tun Musa, 78, was appointed to the Board of Synergy Drive Bhd on 29 September 2007 as Chairman and Non-Executive Director. Synergy Drive acquired Kumpulan Sime Darby Bhd, Golden Hope Plantations Bhd and Kumpulan Guthrie Bhd in 2007 and was listed on Bursa Malaysia on 27 November 2012 as Sime Darby Bhd.

Tun Musa is currently the Chairman of Lion Industries Corporation Berhad and United Malayan Land Berhad, both of which are listed on the Main Market of Bursa Malaysia Securities Berhad, the CIMB Group’s International Advisory Panel and the World Islamic Economic Forum. He is also a member of the International Advisory Board Rotterdam and a member of the Advisory Board of the Malaysian “Journal of Diplomacy and Foreign Relations”. He is also a member of the Advisory Panel of the Iskandar Regional Development Authority.

Over the years, Tun Musa has held a number of key positions, including Chairman of Federal Land Development Authority (FELDA), Kumpulan Guthrie Berhad and Joint-Chairman of the Malaysia-China Business Council. Tun Musa has held several key positions in the Malaysian government including Deputy Minister of Trade and Industry, Minister of Primary Industries and Minister of Education, before becoming Malaysia’s fifth Deputy Prime Minister and Minister of Home Affairs from 1981 to 1986.

Between 1990 and 1991, he was Malaysia’s Special Envoy to the United Nations and also led the Malaysian delegation to the United Nations Commission on Human Rights from 1993 to 1998 and was elected Chairman of the 52nd Session of the Commission in 1995. From 1995 to 2002, he was the Prime Minister’s Special Envoy to the Commonwealth Ministerial Action Group. In 2005, he was Joint-Chairman of the Eminent Persons Group to chart out the Association of South East Asian Nations (ASEAN)/China’s next 15 years’ programme and was appointed as Chairman of the Eminent Persons Group to draft the ASEAN Charter.

The Board and Management of Sime Darby Berhad would like to take this opportunity to thank Tun Musa for his distinguished service to the Company over the last five years. Tun Musa has shown exemplary leadership and steered the Company through some of its most challenging times. We wish him all the best for the future.

Kuala Lumpur, 14 June 2013 - Sime Darby Plantation would like to categorically state that there are no fires in any of its operating areas in Indonesia.

There have been no land clearing activities in the operating areas managed by PT Tunggal Mitra Plantation (PT TMP) and PT Bhumireksa Nusa Sejati (PT BNS) in Riau since April 2013. It should be further noted that the replanting of palm trees occurs only once every 20-25 years and not annually.

Sime Darby Plantation strictly practises a zero burning policy throughout its operations. This policy has been in place since 1985. However, both PT TMP and PT BNS are in areas where there are local communities and smallholders occupying parts of the concession area. In accordance with Indonesian regulations protecting the rights of local communities, PT TMP and PT BNS are unable to control activities in its concession areas that are occupied by others. These local communities who occupy the land plant cash crops as well as oil palm. Indonesian regulations allow these communities to cultivate and use the land as they see fit, without the company's consent, agreement or knowledge. Additionally, during extremely dry weather, fires can be caused accidentally and through natural causes as well.

The management of PT TMP and PT BNS and all the estate managers in Indonesia are extremely vigilant of the possibility of fires especially when the dry season approaches. The companies' fire prevention teams have been trained and on alert since the second week of June. They monitor the situation with the use of global positioning systems on a daily basis and cooperate with local authorities where required. They have also lodged 5 reports of fire incidences outside the estates to the local authorities since 19 June.

Once hotspots are detected, these fire prevention teams are despatched to check on the identified sites and to verify the accuracy of the satellite reports. This is crucial as there is a marked difference between satellite reports and the actual situation on the ground. Over the last few weeks in PT BNS, 11 teams have been monitoring hotspots from fire towers as high as 15 metres, which are erected in strategic locations within its estates. If fires are spotted, the fire prevention teams will report to the authorities and work with them to ensure any hazards are managed appropriately and urgently.

Sime Darby Plantation and its companies will continue to collaborate with local authorities to manage any hotspots and fires as they are not only polluting the environment, they present serious hazards to all its workers and operations, as well as the general public.

Kuala Lumpur, 21 June 2013 - Sime Darby Plantation would like to stress that there are no fires in any of our operating areas in Indonesia. The company strictly follows its zero burning policy throughout its operations. Current reports of hot spots in Riau included an area within PT Tunggal Mitra Plantation's (PT TMP) concession area.

The total concession area of PT TMP is 13,836 hectares. The total planted area is 10,825 hectares with 537 hectares consisting of nurseries and development areas with buildings, nursery, roads and bridges. 2,474 hectares are occupied by local communities.

PT TMP, a subsidiary of PT Minamas Gemilang, and a Sime Darby Plantation company, is unable to exert control over activities beyond its operating areas and where it is occupied by others. Nevertheless PT TMP will continue to monitor the situation, cooperate with local authorities, and assist with its fire prevention teams to ensure that any hazards are managed appropriately.

Kuala Lumpur, 24 June 2013 - Dato' Abdul Ghani Othman has been appointed as a director and the new Chairman of Sime Darby Berhad from 1 July 2013, replacing Acting Chairman Tan Sri Samsudin Osman.

Dato' Abdul Ghani, 66, the former Chief Minister of Johor, will serve as an Independent & Non-Executive Director of Sime Darby. Tan Sri Samsudin meanwhile, has been redesignated as a Non Independent & Non Executive Director of Sime Darby.

Tan Sri Samsudin Osman was appointed Acting Chairman of Sime Darby following the retirement of Tun Musa Hitam as Chairman at the Annual General Meeting held on 8 November 2012.

A Colombo Plan scholar, Dato' Abdul Ghani pursued his undergraduate studies at La Trobe University in Melbourne, Australia and graduated with a Bachelor's Degree in Economics (Hons). Dato' Abdul Ghani subsequently obtained a Master's Degree in Political Economics from the University of Queensland, Australia.

He began his career in 1974 as a lecturer at the Faculty of Economics, University of Malaya and later served as the Dean of the Faculty of Economics and Administration, University of Malaya from 1980 to 1984.

He was appointed a Member of the Senate in December 1984 and subsequently was elected Member of Parliament for Ledang in August 1986. He was appointed the Deputy Minister of Energy, Telecommunications and Post in May 1987 and became the Deputy Minister of Finance in 1990. He was appointed Minister of Youth and Sports in December 1993 until March 1995 when he became the Chief Minister of Johor until May 2013.

Sime Darby President and Group Chief Executive Tan Sri Dato' Mohd Bakke Salleh welcomed Dato' Abdul Ghani's appointment, saying it would augur well for the multinational group.

“Dato' Abdul Ghani brings with him a wealth of experience and is well-known for his exemplary and distinguished accomplishments in the field of academia at University Malaya. Besides that, he was well regarded as a very effective and respected member of the government administration.

“Sime Darby is honoured to have him onboard and we are confident he would help contribute towards efforts to steer the company to greater heights and through challenging times ahead,” Bakke added.

Kuala Lumpur, 26 June 2013 - Sime Darby Plantation has provided satellite data of hotspots, matched against its own concession area map to relevant authorities. The data confirms that there are no fires on Sime Darby Plantation’s operating areas in Indonesia.

Sime Darby Plantation reviewed hotspot data from the NASA (National Aeronautics and Space Administration) satellite for the period 25 May - 25 June 2013, and overlaid the company’s own global positioning system map of the concession areas under PT Tunggal Mitra Plantation (TMP) and PT Bhumireksa Nusa Sejati (PT BNS) in Riau.

The matching of the hotspot data and the maps of the concession areas showed that all hotspots were outside of PT TMP’s concession. There were three hotspots within PT BNS’ concession area. However, they are located outside of the company’s operating area. As explained previously, local communities occupy and plant both cash crops such as corn, sugarcane and pineapple as well as perennial crops such as coconut and areca nuts on these lands.

Sime Darby Plantation would also like to point out that the NASA satellite had outdated information on our land concession areas. The concession areas had been reduced after the final land licensing process was concluded. The NASA satellite showed PT BNS’ concession area as 180,392 hectares when it is in fact only 25,662 hectares. Of this, 18,688 hectares are the actual planted area, 1,530 hectares, the company’s residential and development areas. The remaining land is now mostly occupied by local communities.

There were also discrepancies with regard to PT TMP’s concession area. Data from the NASA satellite states the size of the company’s concession area as 38,473 hectares. The actual concession area is only 13,836 hectares, out of which 2,474 hectares is occupied by local communities.

Sime Darby Plantation will publish and submit these findings to the Roundtable on Sustainable Palm Oil as requested. Sime Darby Plantation and its companies will continue to cooperate with local authorities to manage any hotspots and fires in the interest of its workers, the general public and the environment.

Sime Darby Plantation would like to reiterate its commitment to the zero burning policy throughout all its operations worldwide. This practice has been a strict policy for Sime Darby Plantation since 1985.

Sime Darby Plantation Liberia (SDPL) is, once again, the subject of erroneous criticism by Friends of the Earth (FoE) and its Liberian partner organisation, Sustainable Development Institute (SDI).

SDPL has refuted your previous false allegations several times and we believe it is unacceptable for you to continue to publish what you call “fact sheets” that contain few facts and many factual inaccuracies.

Indeed, SDPL has sought to meet with FoE to share information and engage positively with you. It is surprising that you have never agreed to meet, preferring to make allegations without seeking to substantiate them.

You have raised specific concerns about SDPL clearing land in Golidee Town in Bomi County, where the Gorbli clan live. In fact, SDPL has written consent from the clan committee, who are now offering more land and have asked us to enter as soon as possible.

Additionally, you refer to a recent report by the University of Reading (published 24 June 2013), which lacks credibility and rigour, relying on out-of-date secondary research and a five-day visit to Liberia. It also covers an area which Sime Darby has not even entered.

Most importantly, its authors did not seek to speak to SDPL at any point in the preparation of their report, despite the fact that the company is their main subject matter. We believe this is completely unacceptable and have made a complaint to the University as a result.

SDPL signed a concession agreement with the Government of Liberia, which gives us rights to the land. We have entered into a legal contract with a democratically-elected Government, and do not believe there is any evidence whatsoever that it violates human rights.

Sime Darby welcomes responsible engagement and is committed to learning lessons and using best practice about how best to build on its investment in Liberia. Sime Darby is engaged in full consultation with all stakeholders, including responsible NGOs. We firmly believe that active, responsible engagement is a positive way to proceed in Liberia.

Unlike FoE, other NGOs actively engage with SDPL to help meet our shared objective of ensuring responsible economic development in Liberia. Recently, we created the Sustainable Partnership Initiative (SPI) – which includes representatives of the Project Affected Community, the UN, World Bank and Green Advocates – as a forum for responsible engagement. We also have a relationship with Tropical Forest Trust (TFT), which has given SDPL advice on how to improve our processes. We are now putting its recommendations into practice.

As will be clear, we have grave concerns about the practices of FoE and SDI. We are not alone in this. Local community representatives in Liberia are on record as criticising the claims and behaviour of both SDI and FoE. The community Elders of Gbarpolu county issued a statement that concluded: ‘we would like to state categorically that SDI is no longer welcomed as their activities are creating more harm than good for our people’.

As stated on numerous past occasions:

Sime Darby Plantation has entered Liberia with the best intentions of developing a viable business that will generate a return for the company and transform the economic and social viability of the nation. At each stage of the development, we have reflected on what has gone well, and rectified where there are gaps in our processes. We have improved our manner of engagement and consultation, and are working to ensure that our plantations are expanded responsibly and with the consent of all stakeholders.

Sime Darby Plantation will not develop any land without the express permission of the local communities. A recent example of how this has worked in practice is in Bopolu District in Gbarpolu County, where SDPL has conducted two sensitisation processes to assess the local community’s attitude towards SDPL’s investment. In November 2010, the residents stated that they were against any oil palm development. SDPL agreed not to enter, and did not, therefore, even start the process of obtaining Free, Prior and Informed Consent (FPIC) from the residents. When a second sensitisation process was conducted in Bopolu District in April 2011, residents were positive and welcomed the prospect of economic development. SDPL will in due course undertake FPIC from the local people and, without that consent, we will not enter Bopolu.

As a matter of policy, we engage in a process called “participatory mapping”, which requires more active involvement from the communities, and ensures that all areas which are of importance and off limits to SDPL are clearly marked. We have established a new Charter that deals directly with the affected communities. This will address the outstanding issues around land and human rights. We are aware that there have always been two contracts: the concession agreement with the Government; and our social contract with the people. The new Charter will strengthen that social contract.

We again reiterate our willingness to meet with you to discuss both our activity in Liberia, and the reports you have issued. We presume that you will now wish publicly to accept our invitation.

Everybody – from the UN to the World Bank to the British Prime Minister – recognises that responsible private inward investment is the key to transforming developing economies. Without the investment of companies like Sime Darby, Liberia would face a precarious future. Sime Darby wants to be part of creating a self-sustaining successful Liberia for the 21st Century.

28 June 2013 - In an effort to address proactively the current issue with the haze from fires in Riau Province in Sumatra, Indonesia, and its causes, PT Minamas Gemilang calls on all other stakeholders to enter into constructive dialogue to find a sustainable solution to the problem.

PT Minamas, a subsidiary of Sime Darby Plantation, is one of the largest players in the Indonesian palm oil industry with operations in the Riau Province.

“It is time for all stakeholders to work together to find a way to address what has become an annual problem of the haze, and the tremendous toll it takes on the environment and the health of affected communities on both sides of the Straits of Malacca,” said Sime Darby Plantation Managing Director, Datuk Franki Anthony Dass. “On our part, PT Minamas would be happy to assist and participate in any constructive discussion on this matter. Local communities, civil society groups, academics and other companies operating in affected areas should offer technical assistance and support to the Government of Indonesia to study the issues and address the root causes of the problem,” Dass added. Among the issues that would need to be addressed include:

• the responsibilities of different stakeholders
• how various stakeholder groups can work together to prevent future occurrences
• legal issues pertaining to land use and occupation
• best agricultural management practices

In the last few weeks, fires in the Riau Province have resulted in a hazardous smog blanketing Singapore, parts of Malaysia and southern Thailand. Indonesian authorities have long sought a solution to this annual problem. Between 11 June and 19 June, five hot spots were found on land within the concession area of PT Bhumireksa Nusa Sejati (PT BNS), a company owned by PT Minamas. However, examination of satellite data and on ground assessment teams established that these fires were not in areas planted by the company. (The result of the on-ground assessment or berita acara is attached as Appendix 1). Local communities in these areas plant a variety of cash crops such as corn and sugar cane. Under current regulations and conventions dealing with local communities and the preservation of traditional farming methods, concession holders are unable to control or influence the practices and activities of these communities.

“PT Minamas has conducted awareness programmes on the negative impact of slash and burn activities on local communities in the peat areas. It intends to intensify this awareness programme together with other plantation companies and local authorities,” Dass said.

Sime Darby Plantation, the world’s largest producer of certified sustainable palm oil, has had a zero burning policy since 1985. In Indonesia, 20 of the company’s 25 mills under PT Minamas have been certified by the Roundtable on Sustainable Palm Oil (RSPO). The RSPO is a voluntary certification body, whose members include civil society groups and players along the entire palm oil value chain.

“There are several companies within the palm oil industry who observe high agricultural standards. As an industry, we could contribute significantly to discussions on how to solve this problem,” Dass said.

For its part, Sime Darby Plantation and PT Minamas would bring to the table, more than 100 years of expertise in best agricultural practices backed by cutting edge R&D capabilities, experience in establishing responsible and successful outgrowers’ schemes and experience in the management of land, on both peat and non-peat soil.

Sime Darby Plantation has studied two other areas, one where the company is managing an area cultivated on peat land by local communities under the plasma, or outgrowers’ scheme, and another where it had acquired a plantation established on peat soil (attached as Appendix 2). In the first area in Jambi, South Sumatra, local farmers, under the plasma scheme, plant oil palm but are exposed to and educated in the company’s best agricultural policies.

In the other area in Lavang, Sarawak, Malaysia, Sime Darby Plantation manages a small estate in which no fires have been recorded since the inception of planting in the mid 1990s as a result of efficient water table management, encouraging beneficial vegetation to protect the soil and strict adherence to the company’s policies.

“Out in Riau, our officials and fire fighting teams are already assisting the local authorities and communities to spot and put out fires,” Dass said. “However, for the longer term, sustainable solutions that do not undermine the rights of local communities and traditional farming methods need to be found. For this to be effective, we need multi-stakeholder discussions.”

In 2008, Sime Darby Plantation implemented a strict policy prohibiting the clearing of peat areas. Existing areas that were cleared before the implementation of policy are carefully managed to ensure that there is minimal environmental impact.

12 November 2013 - Sime Darby Plantation Liberia Inc (SDPL) notes the report titled “Conflict or consent: the oil palm sector at a crossroads”, which was released on 7 November 2013. SDPL welcomes positive input that would serve to truly assist the development of communities and safeguard their economic and social interests, while recognizing the need for responsible investment. The conclusions drawn in the report are also a reflection of SDPL’s position: “…negotiations with communities currently involving Sime Darby and the government are a positive sign. From the perspectives of communities at Grand Cape Mount County (GCM) it is imperative that both the company and the government respect the full range of relevant cross-cutting human rights of communities, including their property rights to customary lands and resources.”

“Good faith negotiations must proceed on this premise for there to be a lasting solution that protects the human rights of the local communities, and yield concrete, timely and visible results”.

However, the report dwells on events that occurred in 2011, based on a field research conducted in February 2012. This information is dated and thus does not offer an accurate reflection of SDPL’s operations in Liberia today. The report fails to mention or examine the numerous improvements and changes that have been implemented by SDPL with a view to overcoming some of the gaps and lapses that had initially affected the company’s operations in Liberia.

Following initial difficulties with land acquisition, SDPL temporarily halted operations to engage in more active and wide-ranging consultation with various stakeholders. SDPL adopted a three-pronged strategy to ensure smoother development in Liberia, namely, (i) remedial measures to correct and/or improve the situation in GCM; (ii) develop a new approach to the Free Prior Informed Consent model for Liberia; (iii) establish the Sustainable Partnership Initiative (SPI), a multi-stakeholder platform, to engage with project affected communities in GCM.

Through the SPI, which includes the leaders of local communities, World Bank and IFC, SDPL has engaged with disenfranchised communities in the areas where it had encountered difficulties, to ensure that the company’s operations bring the intended benefit to the people of GCM. The SPI helped facilitate successful negotiations with Project Affected Communities and the fulfillment of several remedial activities including the intensive farming plots and new social amenities.

Since then, SDPL has announced its charter; a commitment to the communities wherever it operates. The signing of a memorandum of understanding with the Zodua Clan to develop a further 5,000 hectares is evidence of the success of SDPL’s approach.

As a company that believes in corporate responsibility and sustainable development, SDPL will always take stock of its challenges and successes and continue to refine and improve its operations further. In the interest of transparency and good governance, SDPL has reported its activities on its website.