SUSTAINABLE PALM OIL INSIGHT

MINAMAS PLANTATION

17 JANUARY 2018

Our Background

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Sime Darby Plantation

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World’s largest palm oil producer - >2.8 mil MT of CPO or 4% of total global annual output.

96% or >2.7 mil MT is certified sustainable - world largest producer of CSPO.

Upstream total planted ha: 620,900 248 estates and 72 mills

Malaysia, Indonesia, Liberia, PNG & Solomon Islands

11 refineries 10 kernel crushing plants 1 biodiesel plant

Sime Darby Plantation Berhad

Sime Darby Plantation Upstream operations encompass 248 estates and 72 mills located in Malaysia, Indonesia, Liberia PNG and the Solomon Islands

2001 year established Plantation

Industry

Operations in 3 regions With 70 estates and 23 mills

located in: -Sumatra–

-Kalimantan- -Sulawesi-

Committed to building a sustainable future for all our stakeholders

30,000 employees across

Indonesia Key businesses

• Upstream •Downstream

279,691 Ha total land bank 202,182 Ha are planted with oil palm

(74% of the company’s total land bank)

Minamas Plantation

Minamas Plantation

Consumer

Products

Sustainable Palm Oil Supply Chain

Downstream

Processing Midstream Upstream

Seed production

Nursery

Cultivation

Harvesting

Milling

Trading & marketing

Crude palm oil bulking

Refining

Fractionation

Refined product storage

Kernel Crushing

Packaging and branding

Food & beverage products

ACTIVITIES

DxP seeds

Fresh Fruit Bunches

Crude Palm Oil

Palm Kernel

Biomass (Empty Fruit Bunches, kernel shell, fronds)

Palm oil mill effluent

Crude palm oil

Palm kernel

Crude palm kernel oil

Palm kernel cake

RBD Palm Oil

Palm Fatty Acid Extract

RBD Palm Olein

RBD Palm Stearin

RBD PK Olein

RBD PK Stearin

Cocoa Butter Equivalent

Cocoa Butter Substitute

Cocoa Butter Replacers

Fatty acid, alcohols, amines, amides

Glycerines

Palm methyl esters

Tocotrienol

Cooking oil, frying fats

Shortening

Vitamin E supplements

Milk fat replacements

Bakery fats

Confectionery fats

Biodiesel

Vegetable ghee

Palm oil and derived products are channeled into worldwide industrial and commercial activities to churn out food products as well as non-food applications.

PRODUCTS

8 R&D, Sustainability & Quality Management are key enablers in the Value Chain

Fully integrated operations across the Sustainable Palm Oil Supply Chain

R&D

Oil Palm Nursery

UPSTREAM

Mills/ CPO and PK production (Biomass and POME by

products)

Refining/ PK crushing/ Oleochemicals/

Biodiesel processing

Packaging & branding

MIDSTREAM

Trading & marketing/ CPO bulking / Logistics

DOWNSTREAM

Food and non-food ingredients/ Consumer products/ Biodiesel

Cultivation & Harvesting DxP seeds (Calix)

RENEWABLES

Non-food/ Oleochemicals/ Biochemical/

Biomass/ Minerals

Seed Production

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Minamas Research Center (MRC)

The Main Research Activities:

Research on palm oil to improve yield productivity

Plant Protection Research

Research on Plant Breeding

R & D Services

Statistic & Data Processing

Analytical Laboratory Services

Technical Training

Planting Material Unit

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• Traceability of the origin of planting materials

• Selection of high quality DxP planting materials

• Stringent culling process

• Adopt best nursery practices

Certificate of Geminated Seeds supplied

Selection of High Quality Planting Materials For Sustainable Yielding

High quality seeds planting

Optimum Irrigation

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Land Preparation With Zero Burning Replanting Techniques

Shredding of oil palm stand during replanting

Planting of DxP material

Cover Crop

Minamas Plantation observes best agro-management practices in all field operations:

• Full compliance to RSPO/ISPO principles

• Soil management & conservation

• Integrated Pest Management (IPM)

• Palm oil mill effluent (POME) treatment

• Optimum utilisation of mill by-products

• Biodiversity and HCV management

• Land use and management with EIA

• Water and moisture content management

• Stringent safety and health programme

• Social impact assessment to protect surrounding communities

Zero burning replanting technique

Optimum utilization of oil mill by-products

Integrated Pest Management (IPM)

Beneficiary Plants

Other Sustainable Practices

A Leader in Sustainable Plantation Management

Good Water Management

Ground cover crops for soil and moisture conservation

Excellent Plantation Management Practices

Balanced Age Profile Through Replanting Exercise

Best Mill Practices

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Ripeness > 95% Clean loose fruits

Harvesting Operation Loose Fruit collection

Field Check for crop recovery

Block Harvesting System (BHS)

FFB sent to Collection point

Mill FFB quality check FFB Transport

In field quality Check

FFB Evacuation Process

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• FFB to be evacuated to mill before 24 hours

• Preventive Maintenance for vehicle efficiency and safety

• Road Management

• Claycrete method

• Probase method

• Roads cambered and water diverted into fields and roadside pits

FFB Evacuation Process

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Best Milling Practices

• Compliance to Regulatory Requirements

• Employee Safety

• Mill Cleanliness

• Effluent Treatment System

• Recycle of EFB

• Milling new technology – vertical & Continuous sterilizer, press for optimal production

• Food Safety Standard

• Production of high quality CPO for niche market

• Initiatives for mill Organic waste process

PT. Golden Hope Nusantara built a CPO refinery project in an area of 32 Ha in Pulau Laut, Kalimantan - Selatan with a production capacity of 2,500mt / day. Certified for RSPO SCCS sheme

Downstream Activities

Fractionation Plant

Laboratory Private JETTY

Tank Farm

•Around 407,000MT of Minamas CSPO or 57% from total CPO production, is sold to PT GHN.

• PT GHN’s customers among others Sime Darby Futures Trading Sdn Bhd, Just Oil and Grain PTE LTD, IFFCO (MALAYSIA) SDN BHD, NESTLE SINGAPORE PTE LTD, SIME DARBY AUSTRAL SDN BHD

Main Office

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Sustainable Certification Process ISPO/RSPO

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Sustainable Certification

Indonesian Sustainable Palm Oil (ISPO) As of today, 22/23 subsidiaries have received Indonesian Sustainable Palm Oil (ISPO) Certification from Ministry of Agriculture:

22 subsidiaries are: Kalimantan Selatan • 7 PTs Kalimantan Tengah • 3 PTs Kalimantan Barat • 3 PTs

Sumatera • 8 PTs Sulawesi • 1 PT

Sustainable Certification

2012 2013 2014 2015 2016 2017

PT 2 1 2 6 6 6

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IS T

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ISPO Certified PTs

Roundtable Sustainable Palm Oil (RSPO)

As of today, 22 mill, 2 KCP and 1 Refinery have been RSPO Certified.

Achievements

2010 2011 2012 2013 2014 2015 2016 2017

Certified 2 8 6 2 3 1 1

Certified 1 1

Certified 1

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RSPO Certified Mill, KCP & Refinery

PALM TRACE

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• RSPO PalmTrace is the RSPO’s traceability system for certified oil palm products. From the mill to the refineries, certified members of RSPO register their physical sales and processing activities of palm oil, palm kernel and its (double) fractions under the supply chain models Identity Preserved, Segregated and Mass Balance.

• RSPO PalmTrace also offers a marketplace and

the possibility to register off market deals (Book and Claim) for RSPO Credits. The usage of RSPO PalmTrace is part of the RSPO certification program.

PALM TRACE

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• Registration

All members who want to get certified, and buyers of RSPO Credits need to register in RSPO PalmTrace. Registration needs to be done using the name of the parent company that is an RSPO member or its subsidiaries.

• License For members who are certified, after the successful audit, the certification body uploads the audit report to RSPO PalmTrace and requests a license for the member, which needs to be approved by the RSPO Secretariat. The validity period of the license is one year. Both the member and the auditor will receive a yearly reminder for the next audit.

• Traceability System The certified volume of mills and independent smallholder groups is the starting point for all sales under the four supply chain models. Certified members between the mill and the refineries who make use of the supply chain models need to register their sales and processing activities.RSPO PalmTrace keeps track of the volumes, so they can only be sold once – either as physical or as RSPO Credits.

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Minamas Plantation bekerja sama dengan Masyarakat sekitar operasiona, pemerintah daerah RT/RW, Desa, Kecamatan dan Kabupaten, Kepolisian untuk:

1. Meningkatkan pemahaman dan merubah pola pikir masyarakat tentang bahaya kebakaran lahan dan hutan serta dampak dari kebakaran.

2. Mendorong peran aktif masyarakat dalam masalah membuka lahan dengan konsep zero burning

3. Meningkatkan keekonomian masyarakat melalui peningkatan ekonomi lokal sehingga masyarakat menjadi mandiri

PRINSIP DESA MANDIRI CEGAH API

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TUJUAN

Untuk mendukung Program ini, keterlibatan langsung masyarakat ketempatan, pejabat desa, pemerintah daerah dan aparat penegak hukum sangat di butuhkan sehingga : 1. Terciptanya lingkungan yang sehat, bebas

dari api dan asap 2. Meningkatkan kesadaran masyarakat dalam

pencegahan serta penanganan kebakaran Lahan dan hutan

3. Mengingkatkan produktifitas lahan serta mencegah kerugian yang lebih besar

4. Mendesak peran aktif masyarakat dan Pemerintahan Desa dalam pencegahan dan penanggulangan kebakaran lahan dan hutan

5. Meningkatkan keekonomian masyarakat melalui pemanfaatan potensi daerah sehingga masyarakat mempunyai pendapatan lain selain bertani

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KERJASAMA PROGRAM

Langkah Minamas Plantation dalam mendukung

program pencegahan kebakaran berbasis desa

agar tepat sasaran, bekerjasama dengan

Universitas daerah yaitu :

1. Universitas Riau

2. Universitas Lambung Mangkurat

3. Universitas Jambi

4. Universitas Sriwijaya

Sime Darby Plantation Sustainability Leadership

1985 Zero

burning

1990 Biological

control for IPM

1994

EMS-ISO 14001

2002

POME utilisation

as compost

TODAY

• Largest producer of certified sustainable palm oil (CSPO)

• Leading total sustainable production, food safety, CSR, and GHG reduction

• Pioneers of the Zero Burning Policy

1992 EUNEP Global 500 Roll of Honour for commercialisation of Zero Burning

practice

2002 Founding member of RSPO

2008 Achieved

RSPO certification

2004 First

GlobalGAP certification

2010 First

certification of SCCS and

ISCC

2016 and beyond

Responsible Agriculture Charter (RAC)

2014 Sustainable

Palm Oil Manifesto – HCS Study

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Thank you