20251010_SMAR_Tanggapan atas Permintaan Penjelasan Bursa_31966868_lamp2.pdf

smart

agribusiness and food

Unofficial Translation
..No Ref: 085//SMART-IR/X/2025

Response:
To date, the Company has not received any notification letters, bills, or administrative sanctions
from any relevant authorities.

4. In the event the Company receives a letter as referred to in point 3 above, please explain the
estimated total potential fines that may be imposed on the Company, assuming a maximum fine
of IDR 25 million per hectare per year since the start of land ownership.

Response:
To date, the Company has not received any notification letter, billing letter, or administrative
sanction from the relevant authorities.

5. What is the material impact of these potential fines on the Company's financial statements,
particularly on assets, contingent liabilities, and annual net income?

Response:
To date, there is no material impact on the Company's financial statements as explained in
numbers 1 and 3.

6. What is the Company's plan for settling the payment of such fines/administrative sanction?

Response:

The Company is committed to settling the payment of any potential fines/administrative
sanctions in accordance with the applicable regulations, should any fine be issued by relevant
authorities.

7. What are the Company's main strategy and actions that have been or will be taken to resolve
the legality status of land indicated to be within forest areas?

Response:
The Company has followed and will continue to follow due processes to resolve the legality
status of the affected land in accordance with applicable laws and regulations.

8. Has the Company submitted an application through the mechanism for Settlement of Land
Tenure in Forest Areas (PPTKH) or pursuant to the Job Creation Law (Omnibus Law)?

Response:

Referring to response number 1, the Company has submitted additional permit applications in
accordance with the provisions of the Indonesian Government Regulation No 104 of 2015 jo.
the Indonesian Government Regulation No 60 of 2012 and the Job Creation Law (Omnibus Law)
along with their implementing regulations.

PT Sinar Mas Agro Resources and Technology Tbk (PT SMART Tbk)

Sinar Mas Land Plaza, Menara 2 Lt. 28-30, Jl. M.H. Thamrin No. S1, Jakarta 10350 Indonesia
T: 62 21 5033 8899 | F: #62 21 5038 9999

@ smart-tbk.com M investor@smart-tbk.com

smart

agribusiness and food

Unofficial Translation
...No Ref: 085//SMART-IR/X/2025

9. Please explain the targeted timeline for the overall resolution of the land legality.

Response:
The timeline for resolving land legality will follow the applicable laws and regulations.

10. What internal corrective measures have been taken to ensure that all plantation operational
activities are in compliance with the licensing reguirements and forestry area regulations?

Response:

The Company has and continues to take any actions needed to ensure compliance with
additional reguirements on its operational permits. The Company remains committed to
conducting its operations in accordance with applicable laws and regulations and in line with
the Company's sustainability commitments.

11. What is the Company's strategy for managing the risk of potential seizure or takeover of land
whose legality cannot be resolved?

Response:
The Company conducts its operations under licenses that comply with applicable laws and
regulations, aligned with its sustainability commitments.

12. How does the Company assess the materiality of the risks of fines and land enforcement to the
Company as a going concern and share price?

Response:
Referring to response number 1, the Company assesses that this will not have a material impact
on the Company as a going concern.

Furthermore, we inform you that, to date, there are no other material facts/information/ significant
events that could affect the Company as a going concern or the Company's share price.

The Company will always comply with the Financial Services Authority (OJK) and Stock Exchange
regulations regarding Disclosure of Information, especially if there are any material
facts/information/Significant events that could impact the Company as a going concern and could
affect the Company's share price.

We hereby submit this explanatory letter and hope it will be well received. Thank you very much for
your kind attention.

Best regards,

Jimmy Pramono
Vice President Director

CC to:
e Direktur Penilaian Keuangan Perusahaan Sektor Riil, Otoritas Jasa Keuangan

PT Sinar Mas Agro Resources and Technology Tbk (PT SMART Tbk)

Sinar Mas Land Plaza, Menara 2 Lt. 28-30, Jl. M.H. Thamrin No. S1, Jakarta 10350 Indonesia
T: 462 21 5033 8899 | F: 462 21 5038 9999

@ smart-tbk.com M investor@smart-tbk.com