Statement on TUK Factsheet

Kuala Lumpur, 8 November 2016 – We refer to the factsheet issued by Transformasi untuk Keadilan (TUK) Indonesia on 7 November 2016 related to PT Mitra Austral Sejahtera (PT MAS). Sime Darby Plantation is committed to assisting the communities to resolve these issues.

We are sympathetic to the situation of the people and have agreed to assist in dialogues with the authorities. However, we are unable to accede to their demands at this point as it is against the terms of the contract signed with the government of Indonesia.

We would also like to address certain inaccuracies in the factsheet.

1. In 2012, PT MAS and the local communities agreed to set up a working team (TKPP) comprising local communities and the company, to discuss the 14 demands made by the community. There were representatives from 9 communities who were part of the working team. In October 2013, representatives from 2 communities, Kerunang & Entapang villages, withdrew from TKPP, alleging it was improperly formed, there were different understanding of the issues, and claiming that the facts of their case and the solutions therefore would be different from other communities.

Other villages that make up 80% of the local population, have continued to engage PT MAS through TKPP. As at end July 2015, 12 demands have been resolved with the communities, excluding Kerunang & Entapang. This is documented in our 7th progress report to the RSPO.

2. Simultaneously, PT MAS continues to engage with the communities of Kerunang and Entapang. We have met with representatives of both communities several times.

Sime Darby Plantation will continue to engage with the communities and offer all assistance to resolve these issues. We will also continue to report on our engagements in a transparent manner to the RSPO.