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     CONTENTS
     PROLOGUE

     03   About This Report
     04   About ANJ Group
          Sustainability Performance Highlights 2023
     06
          (Compared to 2022)


     01      OUR SUSTAINABILITY COMMITMENTS                 04   PEOPLE
             11     Message from Our CEO                         122   Our Diverse and Inclusive Workforce
             18     Our Values                                         Fair And Responsible Recruitment
                                                                 125
                                                                       Practices
             20     Our Sustainability Commitment
                                                                       Empowering Employees’ Growth
             22     Our Material Topics                          126
                                                                       and Skills
             28     Our Governance                                     Championing Diversity and Women’s
                                                                 132
             35     Stakeholder Engagement                             Empowerment
                                                                       Protecting the Rights of Workers and
                                                                 135
     02      PROSPERITY                                                Children

                    Economic Performance Amid Global                   Protecting the Health and Safety
             45                                                  138
                    Challenges                                         of Our Workers

                    Upholding Best Practices in Supply                 Engaging and Empowering Local
             51                                                  150
                    Chain and Traceability                             Communities

                    Upholding Highest Commitments to
             58
                    Customer Excellence
                                                            05   APPENDIX
                    Fostering Community Prosperity and
             59                                                  00    Independent Assurance Statement
                    Well-Being
                                                                 00    GRI Content Index

     03      PLANET
                                                                 00
                                                                       Topics in the Applicable GRI Sector
                                                                       Standards Determined as not Material
                    Addressing Climate Change: Impacts,
             76
                    Risks and Our Response                       00    Cross-Reference to SDGs
                    Green Metrics on Our Emission and            00    POJK 51 Index
             81
                    Energy Consumption
                                                                       Notes on Methods and Conversion
                    Commuting to Sustainable Practices in        00
             92                                                        factors
                    Waste Management
                                                                       Response to The Previous Year's
                    Committing to the Safeguarding of            00
             98                                                        Report's Feedback
                    Forest and Biodiversity
                                                                 00    Feedback Form
                    Prioritizing Responsible Water
             114
                    Management                                   00    Abbreviations



ii   PT Austindo Nusantara Jaya Tbk.
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Together with our peers in the agribusiness sector, we have had to adapt to an ever-
shifting geopolitical landscape and the undeniable impact of climate change to
sustain a responsible and economically viable business. As a result, our targets and
processes are constantly evolving to remain relevant in this dynamic system. Yet, amid
continuous flux, two things endure – ANJ’s steadfast commitment to its core values
and the resulting trust we have earned with our brand.

Our values are our guiding star, the common denominator to our principles, functions,
and ambitions; and the glue that binds us. This year, we re-emphasized values
training and socialization across our business. While our employees are introduced to
our values during their induction, we acknowledge that commitment and adherence
may diminish over time. Introducing regular value training proved to be successful,
with employees assuming greater ownership of and pride in our values. Some
employees have even taken their dedication to greater heights by engaging with ANJ’s
values champion platform. Here, individuals actively promote adherence and guide
conversation around the importance of our values for our business and people. This
year we brought our values champions together in a two-day retreat, providing them
the opportunity to discuss the core values, and develop means to ensure consistent
and universal appreciation of our values across our business entities.

We work closely with communities, local governments, vendors and contractors
across our operating region; building strong relationships founded on trust is central
to our strategy. We are also accountable to our stakeholders and shareholders, who
are entitled to expect that ANJ will abide by its commitments and achieve the targets
it sets. By exhibiting continued commitment to our values, our people can place trust
in our mission, despite the changes they may observe to our structure, systems and
processes. Knowing that no matter the economic, social or environmental climate,
there will always be a common and steadfast foundation to our work is a comfort that
all our people can rely on, especially when all else seems to be in a state of uncertain
flux. When our people trust ANJ to perform to the highest standard of corporate
governance and responsible development, we receive the necessary support to execute
our mission to the best of our ability. Trust is bidirectional and mutually beneficial.
By safeguarding and championing our values, we can ensure a long and prosperous
future for our business and the people whose lives benefit from its presence.




                                                         PT Austindo Nusantara Jaya Tbk.   1
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2   PT Austindo Nusantara Jaya Tbk.
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ABOUT THIS REPORT

This is PT Austindo Nusantara Jaya Tbk’s (ANJ’s) eighth annual Sustainability Report, prepared in
accordance with the GRI Standards for the duration spanning from January 1, 2023, to December
31, 2023. The Sustainability Report includes all the business entities featured in our consolidated
financial statements. (2-2, 2-3)

Table 01. Entities included in the report (POJK51-C.3.D, 2-1,2-2)


                  Subsidiary                                Location              Type of Business

                                                                           Holding company, palm oil
 PT Austindo Nusantara Jaya Tbk.                  Jakarta
                                                                           production

 PT Austindo Nusantara Jaya Agri (ANJA)           North Sumatra            Palm oil production

 PT Austindo Nusantara Jaya Agri Siais (ANJAS)    North Sumatra            Palm oil production

 PT Sahabat Mewah dan Makmur (SMM)                Bangka Belitung          Palm oil production

 PT Kayung Agro Lestari (KAL)                     West Kalimantan          Palm oil production

 PT Galempa Sejahtera Bersama (GSB)               South Sumatra            Palm oil production

 PT Putera Manunggal Perkasa (PMP)                Southwest Papua          Palm oil production

 PT Permata Putera Mandiri (PPM)                  Southwest Papua          Palm oil production

 PT ANJ Agri Papua (ANJAP)                        Southwest Papua          Sago starch production

 PT Gading Mas Indonesia Teguh (GMIT)             East Java                Vegetables

 PT Austindo Aufwind New Energy (AANE)            Bangka Belitung          Renewable energy


There are restatements of the prior years' information in this report due to changes in how
measurement method and assumption are conducted. Restatement and any implications will
be acknowledged in the respective specific disclosure. No significant changes occurred to our
organization, core business, value chain, and other business relationships since our previous report.
(2-4, 2-6)


We adhere to a policy of obtaining independent external assurance for our report to enhance its credibility
and verify compliance with standards. The British Standards Institution (BSI) has been selected to provide
Type 2 Moderate Level Assurance under the 2018 Addendum, utilizing the AA1000 Assurance Standard
(2008) in accordance to our policy regarding appointment and evaluation of independent assurance
companies. BSI is an entirely independent third party selected and approved by our Board of Directors
for its complete impartiality, expertise and professionalism. Additional details regarding the assurance
process and its complete statement report can be found on pages XX - XX. (2-5)


The Global Reporting Initiative (GRI) content index, which specifies each of the GRI Standards used
and lists all disclosures included in the report is presented in the Annex to this report. Please contact
our Corporate Communications Department at anj.corcomm@anj-group.com for any questions
regarding this report. (2-3)




                                                                       PT Austindo Nusantara Jaya Tbk.        3
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    ABOUT ANJ GROUP

    PT Austindo Nusantara Jaya Tbk. (ANJ) is an agribusiness             Our palm oil business unit, currently representing 98.6% of
    company based and fully operates in Indonesia that aspires           our revenue, integrates the cultivation and harvesting of fresh
    to be globally recognized for its commitment to elevating the        fruit bunches (FFB) from our oil palm plantations; processing
    lives of people and nature. Founded in April 1993 as PT Austindo     CPO, PK and PKO; and selling these products. Our oil palm
    Teguh Jaya, the Company adopted its current name in 1998 and         supply chain incorporates several external parties, including
    became a public company in 2013. Throughout 2023, there were         independent farmers and cooperatives, from whom we purchase
    no significant changes to the Company led by corporate actions       additional palm fruit for processing at our mills. The CPO, PK
    such as acquisitions, mergers or the opening/closing of offices      and PKO are either sold directly to both domestic and foreign
    and operational areas. (2-1, POJK51-C.6)                             companies for further processing into derivative products or are
                                                                         sold to agents and distributors. (2-6)
    We engage directly and through subsidiaries in the production
    and sale of crude palm oil (CPO), palm kernel (PK), palm kernel      We pioneered Indonesia’s first commercial-scale natural
    oil (PKO) and other food crops such as sago and edamame. Our         sago harvesting and processing operation in South Sorong,
    renewable energy division operates a unit that utilizes Palm Oil     Southwest Papua, through our subsidiary that manages a
    Mill Effluent (POME) as its primary resource, converting biogas      40,000-hectare concession. The natural sago is harvested from
    into electricity that powers one of our plantations in Bangka        land owned by villagers under customary rights, who receive
    Belitung and serves the State Electricity Company (PLN) as an        payment for every sago log harvested. We process these logs at
    Independent Power Producer. Our operations are located in North      our sago mill to produce dry sago starch, which is mainly sold to
    Sumatra, South Sumatra, Bangka Belitung, West Kalimantan,            the domestic food industry but is also available for purchase by
    Southwest Papua and East Java. Our head office sits in Jakarta.      consumers under our retail brand called Sapapua®. (2-6)
    (2-6, POJK51-C.3.d, POJK51-C.4 )
                                                                         Since 2015, we have been producing fresh and frozen edamame
    In 2023, our Company experienced financial growth, with total        at our subsidiary in East Java which serves both domestic
    assets increasing by 1.9%, or USD 11.5 million from USD 602.6        and export markets. We have a strategic partnership with the
    million at the end of 2022 to USD 614.1 million at the end of        Asia Food Group, a company based in Taiwan, to export frozen
    2023. Concurrently, total liabilities rose by 5.8%, from USD 178.5   edamame to Japan. Aside from edamame, we have started to
    million in 2022 to USD 188.7 million. This financial movement        develop other vegetables, such as okra and green bean. These
    reflects our strategic efforts towards growth, demonstrating a       vegetables are cultivated and supplied by local smallholder
    balanced approach to managing our assets and liabilities for         farmers. Our frozen edamame retail brand is called Edashi®.
    long-term stability and expansion. (POJK51-C.3.a)                    (2-6)




4   PT Austindo Nusantara Jaya Tbk.
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COMPANY NAME (2-1)

PT Austindo Nusantara Jaya Tbk.
                                                                              Share Ownership As Of 31 December 2023
HEAD OFFICE (POJK51-C.2, 2-1)                                                 (POJK51-C.3.c, 2-1)

BTPN Tower, 40th Floor
Jl. Dr. Ide Anak Agung Gde Agung Kav. 5.5-5.6




                                                                                        40.85%
Jakarta 12950
        (62-21) 2965 1777
        (62-21) 2965 1788


BUSINESS ACTIVITY (POJK51-C.4)                                                          PT Austindo Kencana Jaya
Trading, services and operations related to palm oil plantation and




                                                                                        40.85%
processing, as well as trading of palm oil products, sago harvesting
and processing, vegetable production and processing (edamame) and
renewable energy business.


PRODUCTS AND SERVICES (POJK51-C.4)                                                      PT Memimpin Dengan Nurani
Crude Palm Oil (CPO), Palm Kernel (PK) and Palm Kernel Oil (PKO),
Sago, Vegetable (Edamame) and Renewable Energy from Palm Oil Mill




                                                                                        8.83%
Effluent (POME).


DATE OF ESTABLISHMENT

April 16, 1993                                                                          Public

LEGAL FORM (2-1)

• Publicly listed company, listed on the Indonesia Stock Exchange
  (IDX) since 2013 under the stock code ANJT.
• KBLI Code 01262 (Palm Oil) “Green” category under the Indonesian
                                                                                        4.74%
  Green Taxonomy Edition 1.0 (2022), as all operating estates have
                                                                                        George Santosa Tahija
  obtained ISPO and RSPO certification.


WEBSITE AND SOCIAL MEDIA (POJK51-C.2)



                                                                                        4.74%
      www.anj-group.com
      link : https://www.anj-group.com/

      anjgroup.id
      link : https://www.instagram.com/anjgroup.id/

      anjgroup.id                                                                       Sjakon George Tahija
      link : https://www.facebook.com/anjgroup.id

      PT Austindo Nusantara Jaya Tbk
      link : https://id.linkedin.com/company/pt-austindo-nusantara-jaya-tbk




                                                                                        0.00%
      ANJ Group
      link : https://youtube.com/@anjgroup2879




                                                                                        Yayasan Tahija




                                                                                                 PT Austindo Nusantara Jaya Tbk.   5
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                                                                                2023

                                                                                86%
    SUSTAINABILITY 2023
    PERFORMANCE HIGHLIGHTS
    (COMPARE TO 2022)



    PEOPLE                                          PROSPERITY
    Average Training Hours per Employee             Plasma & Partnership Cooperatives
                                                    RSPO Certification

    2023                         2022               2023                  2022



    4.9                                             86    %
                                 6.7                                      75%


    hours




    Number of
    Employee Fatality
                             2023
                                       0
    Case                     2022 0




    OUR SUSTAINABILITY
    COMMITMENTS

     Sustainalytics
     ESG Rating
                             2023
                                       15.4%
     (Low Risk)              2022 18.3%


     SPOTT
                             2023
                                       93.3%
                             2022 91.1%

             CDP            CDP Climate    CDP
            Forest            Change       Water

             A-                   B         B      2023
             A-                  A-         B      2022



6   PT Austindo Nusantara Jaya Tbk.
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PLANET
Net GHG Emission Intensity for Palm Oil   Water Intensity



2023                                      2023

0.66                                      0.971
(Ton CO2eq/Ton CPO)                       (M3/Ton FFB)


2022                                      2022
0.77                                      1.088



                                          Percentage Renewable Energy to
                                          Total Energy (%)


                                          2023

                                          43%
                                          2022
                                          38%




                                                               PT Austindo Nusantara Jaya Tbk.   7
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      OUR
      SUSTAINABILITY
      COMMITMENTS




8   PT Austindo Nusantara Jaya Tbk.
Page 11
       Message from Our CEO        11
                   Our Values      18
Our Sustainability Commitment      20
           Our Material Topics     22
              Our Governance       28
     Stakeholder Engagement        35




        PT Austindo Nusantara Jaya Tbk.   9
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     Our Sustainability Commitments    Prosperity   Planet   People   Appendix




     Lucas Kurniawan
     President Director




10   PT Austindo Nusantara Jaya Tbk.
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                                                                                                    2023 Sustainability Report




Message from

OUR CEO
Dear Stakeholders,

With the thought-provoking sentiments of COP28                It is with this statement that I must raise the importance of
reverberating in both the political sphere and                our sustainability model – one that encompasses People
sustainability landscape at large, I am pleased to present    (Human wellbeing), Planet (Stewardship of natural
ANJ’s commitment to and investment in climate action,         resources and management of the environment) and
as well as the other fundamental facets of responsible        Prosperity (Long-term economic viability). Responsible
development, in this Sustainability Report for the 2023       development is at the core of ANJ’s mission and we cannot
reporting period. Through this report, ANJ details            feasibly operate without paying the highest respect to
its approach to developing a productive and efficient         the communities and environment within our operating
agribusiness while consciously operating within the           regions. Supporting each of the three pillars through our
Planetary Boundaries and supporting Just Transition.          responsible development initiatives requires significant
To us, sustainable development means going beyond             capital investment, but each year we are reminded that
mitigating climate risk and pursuing our journey to Net       our hard work pays off and a sustainable business model
Zero. ANJ designs its strategies to maintain the equitable    is both profitable and successful long-term. The support
integration of three indivisible pillars of sustainability:   we have received from our people, communities, local
People, Planet and Prosperity. I believe that this report     and national governments and other actors within our
presents a transparent review of ANJ’s sustainability         industry, as well as the significant progress the Company
journey and contributing activities. We also highlight        has made toward its emissions reduction targets,
progress towards targets, notable achievements and            demonstrates that operating on a basis that generates
challenges and how ANJ has adapted its policies,              benefits beyond the scope of our production quota is a
projects and ambitions in consideration of this year’s        holistically advantageous strategy. I am also glad to
El Niño conditions and prevailing social and political        highlight that in 2023 we did not receive any complaints
climate.                                                      from communities which were not resolved within the
                                                              statutory 14 days as per the timeframe stipulated in
While I am relieved to see the catastrophic impacts           our Grievance Mechanism and the related Standard
of the COVID-19 pandemic waning and the gradual               Operating Procedures (SOP), nor was the Company the
resumption of ‘normal’ trade conditions, new challenges       subject of unsubstantiated negative press. As a company
have continued to arise throughout 2023. Of particular        that operates across a vast operating region, working
importance is the ongoing El Niño, which has already          with diverse and unique communities, I believe that this
caused extremes of weather across our operating region.       is a sentiment to ANJ’s inclusive approach to project
Unfortunately, we can only anticipate more erratic,           development that emphasizes community engagement
frequent and severe periods of El Niño and La Niña in         and autonomy. (POJK51-D.1.a)
addition to the projected intensification of extreme
weather events. The past few years have demonstrated          As 2023 drew to a close, ANJ’s governance model,
the importance of reinforcing our systems to be prepared      tailored to our expansive region, celebrated significant
for uncertainty. Our business model is not just devoted to    achievements when our subsidiaries, SMM and ANJA,
increasing production and yields through the expansion        secured the Gold PROPER award for outstanding
of our operations. Instead, we are acutely aware of the       environmental management and social innovation,
fundamental need to engineer mechanisms that are              marking their fourth and third consecutive wins.
adaptable and resilient in changing climates, because         Additionally, ANJAS and KAL attained the Green
without securing this foundation, our business will not       PROPER award for a second time. Beyond environmental
withstand what lies ahead.                                    efforts, ANJ’s sustainability commitment encompasses




                                                                                          PT Austindo Nusantara Jaya Tbk.        11
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     Our Sustainability Commitments            Prosperity           Planet              People               Appendix




     innovative programs targeting job creation, poverty           Corporate Social Responsibility and transparency,
     alleviation, gender equality and fostering a sustainable      and adheres to No Deforestation, No Peat and No
     food system. This year marks the completion of our            Exploitation (NDPE) guidelines. In October we published
     plasma certification project in Belitung, meaning that        our standalone Biodiversity Strategy, a public document
     86% of plasma and smallholder partnerships we work            which elaborates on our commitment to enhance and
     with are now RSPO/ISPO certified. This puts us ahead of       protect biodiversity. The United Nations Sustainable
     the plan for 2023, and well on track to meet our target of    Development Goals (UN SDGs) remained integral to
     100% certified in 2025. ANJ also went to additional lengths   ANJ’s mission. The Company was recognized by the
     to ensure that all certified cooperatives in Southwest        United Nations for its commitment to the SDGs when it
     Papua are Identity Preserved, which guarantees                was selected for the UN Global Compact Faster Forward
     complete traceability through the absence of uncertified      initiative. The initiative supports companies in their
     external FFB. The consistent attainment of Gold PROPER        achievement of one of the SDG’s. ANJ chose to focus
     since 2020 reflects ANJ’s dedication to maintaining high      on achieving Net Zero by 2030, a target towards which I
     environmental standards and sustainable community             believe we made good progress in 2023. (POJK51-D.1.a)
     development initiatives, setting a benchmark for others
     in the industry. The ongoing improvement in sustainability    Annually, we scrutinize the previous year’s key priorities
     ratings reaffirms our responsible development agenda. I       to gauge their ongoing relevance. Following an internal
     proudly present this report on behalf of ANJ and eagerly      review this year, both the Board of Directors (BOD) and
     anticipate our continued growth toward becoming a more        Board of Commissioners (BOC) affirmed the continued
     environmentally, socially and economically conscious          relevance of our material topics. Our strategic goals are
     agribusiness company. (POJK51-D.1.b)                          time-bound and subject to annual review, with outcomes
                                                                   detailed in our annual sustainability report. Notably,
                                                                   GHG emissions and carbon footprint remain our primary
     Strategies (POJK51-D.1.c)                                     concerns, followed by forest and biodiversity protection,
                                                                   and upholding good corporate governance practices and
     The relative market stability experienced in 2023 was         traceability within the supply chain. Setting ambitious
     a welcomed change that supported the Company’s                targets, such as achieving Net Zero Emissions by 2030
     increased investment in strengthening internal                and increasing renewable energy usage to over 60%,
     processes. The past few years of challenging conditions       underscore our sustainability agenda. We also aim to
     have allowed ANJ to value periods of relative calm but        reduce GHG intensity by 30% and fossil fuel dependence
     have also highlighted the need to seize stability and use     by 20% by 2030 and 2025, respectively, measured against
     it to ensure we are prepared for future uncertainty.          our 2015 baseline.

     This year, we critically reviewed existing strategies,        Our employees remain the cornerstone of ANJ’s success
     programs and initiatives during the annual strategic          and growth. Their well-being, rights, safety and health
     session and identified critical areas of weakness and         at work are fundamental to our operations. Prioritizing
     opportunities for improvement. Unfortunately, several         safety leadership and risk mitigation strategies
     events this year reflected concerning adherence to ANJ’s      underscores our commitment to preserving lives and
     values. Therefore, management made the conscientious          welfare across our workforce and local communities. We
     decision to reinforce ANJ’s core values across our            persist in emphasizing safety awareness, compliance,
     operating regions through improved values training,           and training to minimize workplace risks for both
     running the values champions retreat and introducing          employees and contractors.
     training courses with a specific value focus where we
     observed issues. (POJK51-D.1.a)
                                                                   ESG Journey
     In September 2023, we were also honoured to have
     our Legal Director invited by the United Nations Global       I am incredibly proud of ANJ’s progress in its ESG
     Compact to take part in the ThinkLab on Transformational      journey. In 2023, the Company solidified its position as
     Governance, a global initiative that aims to define           an industry leader in sustainable development, receiving
     thinking, curate best practices and develop knowledge,        notable recognition for its outstanding ESG performance.
     guidance and tools that empower business sector action        We observed further improvements to our SPOTT score,
     on transformational governance.                               which increased from 91.1% in 2022 to 93.3% in 2023,
                                                                   placing ANJ in fifth place in the global rankings and
     We continue to uphold our strict adherence to our             first position for the Indonesian companies assessed by
     Sustainability Policy, serving as the foundation for          SPOTT. While it is a wonderful indicator of success, ANJ
     reducing social and environmental risks. Aligned with         maintains that any claims of progress must be actualized
     the RSPO guiding principles, our policy encompasses           and the Company will not engage in superficial initiatives
                                                                   for the sake of winning awards. (POJK51-D.1.b)


12   PT Austindo Nusantara Jaya Tbk.
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                                                                                                 2023 Sustainability Report




With most assessment platforms with which ANJ engages       projects and initiatives and ensure that our progress is
awarding the Company the highest possible scores, we        maintained. (POJK51-D.1.b)
have shifted our attention towards maintaining our status
and identifying areas wherein we can strengthen our         We are also well on our way to achieving all other targets
performance even if it results in marginal gains to our     on schedule. Most notably, this year we recorded an
ESG scores. ANJ takes its responsibility as a role model    83.8% decrease in GHG emissions from baseline, which
very seriously, and with more industry actors using our     puts the Company on track to achieve the coveted goal
processes as a guide when developing their strategies,      of Net Zero by 2030. Contributors to the achievement
our people must adhere to the Company’s core principles     of this goal is the electrostatic precipitator at KAL and
and exhibit best practices across its operations.           the successful completion of solar panel installation on
                                                            the roof of the GMIT factory, in addition to the significant
A core ambition of ANJ’s ESG journey has been to develop    positive impact of ANJ’s decision to maintain a large
a culture of appreciation for the values underpinned        forest conservation and biodiversity area in Southwest
by ESG. I believe that our constant endeavour to            Papua. The solar panels at GMIT resulted in a reduction
transparently engage with several reporting platforms       in GHG emissions from the factory of 19% in its first year.
has allowed our people to gain an understanding             This year, we increased our renewable energy portfolio to
of what it takes to perform at the highest level in         43%, nearing our target of 60% by 2025. (POJK51-D.1.b)
sustainability practice. Throughout our operations, we
hope to promote authenticity in our activities. Not being   Our fire prevention and early warning systems are
driven by awards and accolades supports the genuine         nearing overall completion. By December 2023, the
development of projects and initiatives that will provide   development team had completed the construction
substantive benefits to people, the environment and         of the reservoir, allowing the system to function at full
the economy. I am glad to report that through our ESG       capacity. The final element remains the installation of
journey, I have observed a shift in mindset towards ESG     pipe protection, to ensure durability, after which we will
at all levels of the Company away from regarding it as a    be glad to announce project completion. I am happy to
mere checkbox and towards accepting its holistic worth      report that there were no major fire incidents in 2023.
for our development.                                        We acknowledge that the El Niño conditions will test our
                                                            fire prevention systems, but both management and our
Our commitment to sustainability performance reporting      on-site teams have faith in the robustness and efficacy
has also helped management to make key strategic            of the measures which we have invested in over the past
decisions. The integrated approach to reporting, which      few years. (POJK51-D.1.c)
we have adopted to streamline the process, provides our
teams with critical insights into areas of strength and     Finally, I am pleased to announce that ANJ observed
weakness and has been essential to identifying areas        zero working fatalities in 2023, which we owe to our
for improvement. In saying this, reporting is a long and    improved operational health and safety programs.
time-consuming process, with not all the assessments        Regrettably, however, there were two fatalities among
occurring concurrently or covering comparable topics.       our contractors. While contractor safety does not fall
With the recent proliferation of sustainability reporting   under ANJ’s responsibility, we feel that these events may
platforms, management is hesitant to make any further       reflect a lack of adherence to our policies. Therefore, our
commitments amidst concerns about investing too highly      management team has decided to focus on re-training
in reporting against numerous platforms.                    our staff on Occupational Health and Safety (OHS) and
                                                            investing in schemes to improve safety awareness and
As for ANJ’s ESG targets, we made excellent progress in     culture amongst our contractors. We have also turned
2023. The Company bases its ESG journey on achieving        our attention to the issue of heat stress among our
measurable, time-bound targets. In 2023, several            plantation workers. As the climate warms and workers
targets were ahead of schedule, or surpassed the target,    are exposed to harsher conditions, we must prioritize
such as 86% RSPO/ISPO certification of plasma and           developing systems to ensure adequate hydration and
partnerships in 2023, which puts us well on track to        opportunities to seek shade and respite from the heat.
achieve 100% by the target year of 2025; implementing       If we fail to address this growing concern, we are at risk
the electronic traceability system, eTIS, in 100% of our    of losing productivity in a component of our operations
oil palm operations and those of our suppliers; achieving   which cannot feasibly be mechanized, which could
99% traceability by 2025 (achieving 100% in 2023); and      potentially result in significant losses for the Company.
reducing water use intensity to below 1 ton for each        (POJK51-D.1.b)
ton of FFB. As ANJ is driven by continuous growth, we
hope to utilize the remaining resources allocated to the
achievement of these targets to enhance the respective




                                                                                        PT Austindo Nusantara Jaya Tbk.       13
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     Our Sustainability Commitments            Prosperity           Planet              People               Appendix




     Responsible Development Highlights                            The overall Most Outstanding RD Project award was
                                                                   won by Tumpas Lara at SMM, while the Most Valued
     At ANJ we have adopted an approach to sustainable             Project was the e-TIS system. Warung Mama won the
     development, termed responsible development, that             Most Valued Building Block Formation Project and Eco-
     emphasizes sustained and meaningful benefits to the           enzyme won the Best Adopted Building Block Project.
     environment, economy and people in our operating              Further recognition was given to the PENDAKI program,
     regions. We believe that the notion of responsible            which won the Best Project that Elevates Corporate
     development considers each of the three pillars of            Reputation Internationally, and RSPO certification of
     sustainable development with equal importance and             smallholders as the Best Completed Project. The event
     recognizes that within a complex and interdisciplinary        was an outstanding success, inspiring winners, runners-
     sustainability landscape, it is impossible to adequately      up, and attendees alike to persevere with their hard work
     support pillars in isolation. (POJK51-D.1.a)                  and continue to strive for greatness.

     Year-on-year our responsible development projects             I am also very proud to report on programs such as the
     are tested by the unique and ever-changing socio-             transportation and savings cooperatives which may not
     economic and environmental conditions. ANJ’s                  have received awards but have all matured in the past
     aim when developing and pursuing our responsible              year to a point where they are largely self-sufficient.
     development agenda is to remain adaptable and resilient       This is a wonderful achievement for our people, as the
     in unpredictable circumstances. While several awarding        central aim of ANJ’s responsible development ventures
     bodies, such as the PROPER award, require novel               is to develop programs that are sustainable and will live
     innovation on an annual basis, the Company prioritizes        on in the eventual absence of ANJ’s involvement.
     maintaining our responsible development initiatives,
     strengthening existing programs and partnerships              Our sustainability teams also introduced several new
     and adjusting ambitions and projections to best suit          programs in 2023 to support our communities, including
     prevailing contexts.                                          the farming of chicken and fish in ANJA, Mina Padi in
                                                                   SMM and the Kelas Bersinar environmental awareness
     While projects may evolve, we remain committed to our         program at KAL. Our flagship biodiversity monitoring
     priorities for responsible development. Once again, our       initiative, PENDAKI, entered an exciting new phase
     focus was on food security, which the UN Secretary-           with the launch of the PENDAKI Champion application
     General maintains is integral to achieving all 17             in September 2023, putting us a stronger position
     Sustainable Development Goals and fossil fuel phase-          to strengthen the statistical quality of the species
     out, which, for better or for worse, was the central          observation data.
     discussion point of COP28. The repeated acceleration
     of our priorities at the global scale further justifies our   In a further exciting development for ANJ’s sustainability
     decision to uphold them and encourages our people             agenda, which holds great potential to encourage
     to continue their devoted efforts in pursuing ANJ’s           additional financial support and community buy-in
     ambitious targets. Further confirmation of the propriety      for our sustainability initiatives, we commissioned a
     of our targets was ANJ’s selection for the United Nations     third party to conduct a comprehensive Biodiversity
     Global Compact (UNGC) Faster Forward initiative, where        Richness Valuation of our KAL estate. The assessment
     companies who are deemed to uphold exceptional                covers a range of factors, from the carbon value, the
     sustainability standards are selected to fast-track their     aesthetic value, and the direct economic contribution
     achievement of a chosen SDG. This year, ANJ chose to          of biodiversity to people living within the area, to the
     focus on achieving Net Zero.                                  impact value of active conservation management. The
                                                                   valuation calculates a Total Conservation Value for the
     In June 2023, ANJ held its first Responsible Development      area in USD, which is a very useful tool for companies,
     (RD) Excellence Awards in Belitung. Planning for              such as ANJ, to justify investment in sustainability and
     this year’s ceremony was a priority for the respective        biodiversity conservation.
     management teams to ensure that our outstanding
     responsible development initiatives received the high         I would also like to note that, this year, we placed a
     praise they deserved. The awards aim to highlight the         greater emphasis on female empowerment in each of our
     new and ongoing programs which have demonstrated              responsible development programs through providing
     great development over the course of the year. There          women with greater responsibility and autonomy by
     were several categories of award, each of which required      placing them in positions of authority. We believe that
     extensive deliberation on behalf of the Sustainability        such action sets a precedent for the rightful role of
     Committee to determine the most deserving winner.             women within the community and marks the start of a
                                                                   shift in culture towards one of gender equality.




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                                                                                                  2023 Sustainability Report




Moving Forward                                                sustainable, ethical approach even if it requires greater
                                                              investment on our behalf. I anticipate that going forward,
Planning for the future might appear inconsequential          we will continue refining our strategies in the constantly
amid unpredictable local and global conditions. Hence,        evolving sustainability landscape where communities,
establishing a resilient approach to responsible              governments, and other industry actors look towards
development that endures uncertainty and equips our           ANJ as a role model and a trustworthy partner.
workforce with robust strategies during challenging
times stands as a fundamental aspect of ANJ’s core            On behalf of the BOD, I would like to thank all
mission. While forecasting the future remains elusive,        ANJ’s people. To our commissioners, management,
readiness for whatever lies ahead remains within our          employees, contractors, smallholder farmers, partners,
reach.                                                        and investors, I am grateful for your continued support
                                                              in realizing ANJ’s sustainability targets. Our appreciation
ANJ’s future priorities chiefly revolve around fortifying     also goes to our stakeholders, including local
our operations and responsible development initiatives        communities in our operating areas, business partners,
to confront more severe weather patterns. Anticipating        local and national government, non-governmental
increased frequency and intensity of El Niño and La Niña      and community-based organizations, the scientific
years necessitates readiness to address the impacts of        community, and the media. ANJ’s sustainability agenda
extreme droughts, floods, and the environmental and           is extensive and interdisciplinary. Without the support of
human toll of abrupt shifts between these extremes. The       our vast network of collaborators and partners, progress
looming threat of dramatic climate change accentuates         in this area would fall short of the urgent requirement
the imminent rise in global food insecurity, a persistent     to make a dramatic and lasting change to the way that
issue in many of our operating regions. To counter            agribusinesses operate. We value the relationships that
these challenges, ANJ is poised to heavily invest in          allow ANJ to champion responsible development and
flood and fire prevention systems, community-based            set an example for others within our industry. Moving
farming programs, livelihood enhancements, forest             forward, I am very optimistic about the contributions
and biodiversity protection, and emissions reduction          we can make to the sustainability landscape, and I
initiatives. Additionally, prioritizing infrastructure        look forward to observing how future collaboration will
improvements across our regions stands as a crucial           support ANJ’s journey.
measure to safeguard both people and the environment.

Establishing enduring objectives, like our aim to
achieve Net Zero emissions by 2030, has enabled ANJ
to create a central roadmap guiding our advancement
and the adoption of responsible development strategies,
both current and future. The enhancements in our
sustainability reporting systems this year have also
empowered the Company to refine its reporting methods,
providing management with more intricate insights into
strengths and weaknesses, along with additional time
to manage and address any areas needing attention.
This heightened efficiency in our reporting systems                        LUCAS KURNIAWAN
has further enabled ANJ to participate across a wider
                                                                                 President Director
spectrum of reporting platforms.

Safeguarding Values, Securing Trust is an appropriate
theme for our Sustainability Report this year. By
upholding and reinvigorating our core values, ANJ has
cultivated a culture of trust among its People and external
stakeholders. Nurturing strong relationships means
that ANJ receives unwavering support, even in times of
shifting priorities, as we consistently earn trust in the
Company’s steadfast commitments to championing our
values, good corporate governance and a solid approach
to responsible development. As part of this commitment,
ANJ prioritizes transparency and authenticity in
facing challenges, meaning that we focus on taking a




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                                                                                                  2023 Sustainability Report




            STATEMENT OF RESPONSIBILITY
       By the Members of the Board of Directors and the Board of Commissioners
         for the 2023 Sustainability Report of PT Austindo Nusantara Jaya Tbk.

                                           Jakarta, April 30, 2024
       We, the undersigned, declare that the information contained in the 2023 Sustainability Report of
 PT Austindo Nusantara Jaya Tbk. is complete and we are responsible for the accuracy of the report’s content.
          Thus, this statement is duly made by the Board of Directors and Board of Commissioners.




                                        BOARD OF DIRECTORS




Lucas Kurniawan                               Geetha Govindan                                 Naga Waskita
President Director                         Vice President Director                              Director




 Aloysius D’Cruz                                 Nopri Pitoy                            Mohammad Fitriyansyah
     Director                                     Director                                    Director




                                    BOARD OF COMMISSIONERS




                                            Adrianto Machribie
                                   President Commissioner (Independent)




        George Santosa Tahija                                                  Sjakon George Tahija
           Commissioner                                                           Commissioner




        Anastasius Wahyuhadi                                                       J. Kristiadi
           Commissioner                                                     Independent Commissioner




        Darwin Cyril Noerhadi                                                 Istini Tatiek Siddharta
      Independent Commissioner                                                     Commissioner




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     OUR VALUES
     (POJK51-C.1)



     Responsible business practices are important to ANJ; thus, we take into account ethical,
     environmental, and social considerations alongside financial ones. Our Vision, Mission, and
     Values statement is available on our website and distributed to all employees and contractors
     in both Indonesian and English. It outlines our value system of integrity, respect for people
     and the environment, and continuous improvement. All ANJ contracts include sections that
     indicate expectations about respecting our principles and sustainable business practices. All
     our business partners, vendors, and investors are made fully aware of these expectations.
     Workers are inducted into the Company’s culture at the start of employment, and taught to
     cherish its vision, mission, and core values; subsequent trainings are held at regular intervals
     to reinforce these concepts. (POJK51-F.1)




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                                                                                2023 Sustainability Report




VISION
To become a world-class agribusiness-based food company that
elevates the lives of people and nature.



MISSION
• People and nature oriented:
  People and nature as the north star of the Company, guiding every aspect of all
  business activities.
• Striving for world-class excellence:
  A continuous quest to comply with and exceed local and global standards,
  exercising good corporate governance.
• Sustainable growth for prosperity:
  Achieving widespread economic prosperity without exhausting the finite
  resources at our disposal.
• Integrity:
  Doing the right thing at all times, in all circumstances, regardless of the
  consequences or of anyone watching.



VALUES




INTEGRITY               RESPECT FOR PEOPLE                          CONTINUOUS
                       AND THE ENVIRONMENT                         IMPROVEMENT




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     OUR SUSTAINABILITY COMMITMENT (POJK51-A.1)




     The ANJ Sustainability Policy represents our               development strategy. The Sustainability Policy is
     company’s commitment to Sustainable Development.           accompanied by an Implementation Guidance brief that
     It is accessible on our website [https://www.anj-          is updated for continual improvement or to reflect any
     group.com/en/sustainability-approach-and-policies].        changes to the RSPO Terms and Conditions. Several
     Following the RSPO Principles & Criteria (P&C 2018)        elements of the Sustainability Policy Implementation
     and other internationally recognized benchmarks, the       Guidance were revised in 2021 to provide greater clarity.
     Sustainability Policy was last amended on October 31,      This policy remains effective regardless of alterations in
     2019 and signed by the ANJ Board of Directors, making      the composition of the BOD. (2-23)
     clear our commitments to preventing and mitigating the
     negative impacts of our operations on communities and      The policy is governed by the guiding principles of
     the environment. It is formulated in a way that supports   Corporate and Social Responsibility, Transparency and
     and connects the 17 United Nations Sustainable             No Exploitation. The pillars of this policy are (1) long-
     Development Goals (UN SDGs) to our sustainable             term economic viability (Prosperity), (2) human welfare




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                                                                                              2023 Sustainability Report




(People) and (3) stewardship of natural resources and      Each of our suppliers must comply with and completely
environmental management (Planet). This strategy seeks     commit to our Sustainability Policy, putting into action
to strike a balance between economic growth, human         the requirements and commitments outlined therein and
welfare and environmental care and management.             allowing us to evaluate their sustainability efforts. The
(2-24)                                                     Sustainability Policy and its implementation guidance
                                                           are shared with all employees and suppliers.
As stated in the Universal Declaration of Human
Rights (UNHDR), our Sustainability Policy affirms our
commitment to safeguarding the human rights of all
actors who may be affected by our operations, including
our employees, local communities and vulnerable
groups that are put at risk due to our activities or our
suppliers’ activities, if any. (2-22, 2-23)




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     OUR MATERIAL TOPICS (POJK51-A.1)



     IN THIS SUSTAINABILITY REPORT, ANJ HAS METICULOUSLY
     ADHERED TO THE AA1000 PRINCIPLES OF INCLUSIVITY,
     MATERIALITY, RESPONSIVENESS AND IMPACT. OUR INTERNAL
     ANALYSIS, COLLATION AND IDENTIFICATION OF ISSUES THAT WE
     HAVE GATHERED FROM A WIDE RANGE OF STAKEHOLDERS OVER
     THE YEARS INFORM US OF THE CONTENT AND MATERIAL TOPICS
     CONTAINED IN THIS REPORT. WE CONDUCTED A THOROUGH
     ANALYSIS OF OUR ENVIRONMENTAL, SOCIAL AND GOVERNANCE
     (ESG) IMPACTS IN 2021 TO SET OUR SUSTAINABILITY STRATEGY
     AND ESG GOALS."
     After discussions with the BOD, BOC and senior executives              our topics. In this report, we are also exercising GRI 13,
     and managers in 2023, we feel that the items highlighted               the GRI Sector Standard for the Agriculture, Aquaculture
     through that process are still relevant and constitute the             and Fishing Sector. (3-1)
     most material sustainability issues for us. (3-1)
                                                                            The results of this process are summarized in the table
     In addition, the conversations we had with customers,                  below, where seven main subjects and twenty subtopics
     auditors and observers and the rise of sustainability-                 were selected. Our BOD and BOC were instrumental in
     conscious practices in our field, have solidified these                defining the subject matter of this report and setting
     topics as central to our work. Such contributions have                 sustainability targets. All of the topics and themes were
     supplemented the concerns and viewpoints we have                       discussed and approved by the BOD and BOC. During
     received via our continuous stakeholder engagement                     the writing process, members of the BOD and BOC were
     with the perspectives of a broader variety of stakeholders.            also interviewed to get their take on sustainability issues
     We also considered industry issues highlighted in the                  related to their specific roles. All members of the BOD
     GRI Sector Standard as additional input for reviewing                  and BOC have read and approved this report. (2-14)


     LIST OF MATERIAL TOPICS (3-2)
                                      Material topics                              Associated Targets
       Standard Disclosures
                                      GHG Emissions and Carbon Footprint           • 30% GHG (Scope 1&2) intensity
       GRI 302, GRI 305, GRI 306                                                     reduction from 2015 baseline by 2030
                                      Sub-topics
       Related SDGs                   • GHG emission and energy efficiency         • Net Zero emissions by 2030
                                      • Waste recycling                            • Increase renewable energy portfolio to above 60%
                                      • Climate risk and adaptation                • Reduce our fossil fuel dependence by 20% by 2025



                                      Material topics                              Associated Targets
                                      Protecting Forests and Biodiversity          • Have a robust biodiversity monitoring program
                                                                                     in place by 2025
       Standard Disclosures           Sub-topics
                                                                                   • Include biodiversity accounting of at least two
                                      • Biodiversity and conservation                business units into the reporting system by 2030
       GRI 303, GRI 304
                                      • Deforestation                              • Zero major fire incidents and no deforestation
       Related SDGs                   • Water management                           • Implement fire early warning system depending
                                      • Fire prevention and management               on likelihood and post-even impacts.
                                                                                   • Implement peat management system and best
                                                                                     practices to keep peat subsidence not exceeding
                                                                                     4.75 cm or lower on annual basis.
                                                                                   • Implement water management systems and
                                                                                     best practices




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                                                                                                  2023 Sustainability Report




                            Material topics                       Associated Targets
                            Supply Chain Practices                • RSPO/ISPO certification for all plasma and
                            Sub-topics                              partnerships by 2025
Standard Disclosures                                              • 90% smallholders engagement to advocate
                            • Supplier environmental and social
GRI 308, GRI 414
                              practices                             sustainable palm oil practices by 2025
                            • Traceability                        • 100% suppliers compliance with ANJ’s sustainable
Related SDGs
                                                                    palm oil sourcing commitment by 2030
                                                                  • Achieve 99% traceable FFB from 3rd parties by
                                                                    2025, at the latest
                                                                  • Implement the electronic traceability program to
                                                                    support the traceability of all suppliers by 2023
                                                                  • Suppliers due dilligence to assess compliance
                                                                    with ANJ sourcing policies



                            Material topics                       Associated Targets
                            Working Conditions                    • Improve working and living conditions for all
                            Sub-topics                              workers by providing access to affordable staple
Standard Disclosures                                                food ; clean and proper housing facilities; access
                            • Occupational Health and Safety
GRI 403, GRI 404, GRI 405
                            • Training and education                to clean water and sanitation; access to health,
                            • Diversity and women’s empowerment     recreational, and telecommunication facilities;
Related SDGs
                                                                    and facilitate religious practices by 2025
                                                                  • Increase environment, health and safety
                                                                    awareness to achieve zero fatality from work-
                                                                    related accidents
                                                                  • Implement a work environment which supports
                                                                    gender equality and no discrimination by 2023



                            Material topics                       Associated Targets
                            Labor rights                          • Provide access to early and primary education
                            Sub-topics                              facilities for children of workers in all of our
Standard Disclosures                                                operating concessions by 2027
                            • Forced labor
GRI 407, GRI 408, GRI 409
                            • Child labor                         • Zero grievances and findings related to forced
                            • Freedom of Association                labor, human trafficking and child labor issues
Related SDGs




                            Material topics                       Associated Targets
                            Local communities                     • -
Standard Disclosures        Sub-topics
                            • Rights of local communities
GRI 413
                            • Community Involvement and
Related SDGs                  Development




                            Material topics                       Associated Targets
                            Prosperity and inclusive growth       • -
Standard Disclosures        Sub-topics
                            • Economic performance
GRI 201, GRI 203
                            • Innovation and sustainable
Related SDGs                  production
                            • Socio-economic welfare and
                              livelihoods




                                                                                         PT Austindo Nusantara Jaya Tbk.       23
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     Our Sustainability Commitments    Prosperity   Planet           People                 Appendix




     ESG TARGET AND ACHIEVEMENTS 2023


                                                                     AMBITION


                                                                     Net- zero
                                                                     emissions/carbon neutral by 2030




                                                                     Reduce gross GHG intensity for

                                                             30 %    Scope 1 and Scope 2 without
                                                                     considering sequestration
            REDUCE GHG EMISSIONS                                     in 2030 compared to 2015




                                                                    60%
                                                                                Increase renewable
                                                                                energy portfolio by 2025




                                                                    20%         Reduce our fossil fuel
                                                                                dependence by 2025
           DECREASE FOSSIL FUELS



                                                                     Achieve water intensity of 1 ton
                                                                     of water for each ton of fresh fruit
                                                                     bunch (FFB) processed by 2027
                                                                     at the latest

                 WATER EFFICIENCY

                                                                     of all plasma and partnership
                                                             100%    smallholders are RSPO Certified
                                                                     by the end of 2025


                                                                     smallholders engagement to
                                                             90%     advocate the sustainable palm oil
                                                                     practices by 2025

          PROMOTE SUSTAINABILITY
             TO SMALLHOLDERS                                         suppliers to comply with ANJ’s
                                                             100%    sustainable palm oil sourcing
                                                                     commitment by 2030




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  ACHIEVEMENT BY END 2022                                   PROGRESS BY END 2023


       Net GHG emission of 274,970 Ton CO2eq
       80% net GHG emission decrease
                                                   226,219 83%                     Net GHG emission
                                                                                   decrease compared to
                                                   Ton CO2eq Net
       compared to the baseline year (2015)        GHG emission                    the baseline year (2015)



       Gross GHG intensity Palm Oil for                            Gross GHG intensity Palm Oil for
       Scope 1 and 2 without considering                           Scope 1 and 2 without considering
       sequestration is reduced by 6%                              sequestration is reduced by 17.8%
       compared to 2015                                            compared to 2015




 38%   Renewable energy portfolio                      43%         Renewable energy portfolio




       Fossil fuel dependence                                                 Fossil fuel dependence
       Reduced by 9.4% compared to 2017
                                                      17.8%                   Reduced compared to 2017




  1.088 ton                                                0.971 ton
                                                                                       of water for each ton
                        of water for each ton of
                                                                                       of FFB processed in
                        FFB processed in 2022
                                                                                       2023




 75%   RSPO certified                                    86%          RSPO certified




 9%                                                      33%
       smallholders engage                                           smallholders engage




53,672 tons                                         62,129 tons
                   of certified FFB
                                                                              of certified FFB
                   purchased
                                                                              purchased in 2022 (19%)
                   in 2021 (9.88%)




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     Our Sustainability Commitments    Prosperity   Planet       People                 Appendix




     ESG TARGET AND ACHIEVEMENTS 2023
                                                                 AMBITION


                                                                 Stable population trend for species
                                                                 which trigger HCV




                                                     Zero
                                                                 human-wildlife conflict in our areas
                                                                 of operation, related to IUCN
                                                                 Threatened and Protected Species,
             PROTECT BIODIVERSITY                                based on Indonesian regulations




                                                                 Zero             major fire incident



                  PROTECT FORESTS
                   AND PEATLANDS
                                                                 No deforestation




                                                                 • Zero work-related fatalities



                                                                 • Worker access to clean water
                                                                   and sanitation and health facilities
                                                                   by 2025
         KEEP A POSITIVE AND SAFE
           WORK ENVIRONMENT                                      • Worker access to recreational
                                                                   and telecommunication facilities
                                                                   by 2025




                                                                 Facilitate access to primary
                                                                 education facilities for children of
                                                                 workers in all
                                                                 of our operating concessions




                                                             0
                                                                 grievance and findings related
                 PROTECT CHILDREN                                to forced labor, human trafficking
                                                                 and child labor issues
                 AND LABOR RIGHTS

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        ACHIEVEMENT BY END 2022                                                   PROGRESS BY END 2023

                                                                      More than


                                                                      109,000
                                                                                                       observation records,
                   More than 78,000 observation records,
                                                                                                       from our internal
                   from our internal citizen scientists
                                                                                                       citizen scientists


                   80 fauna species and 53 flora species                                               in the IUCN threatened

                                                                        77 & 74
                   in the IUCN threatened species list were                                            species list were identified
                   identified in our areas. (Validated by an                                           in our areas. (Validated
                   independent third party)                         Fauna Species     Flora Species    by an independent
                                                                                                       third party)

 There was no human-wildlife conflict causing harm                     There was no human-wildlife conflict causing harm
 to the wildlife on the IUCN Red List of Threatened and                to the wildlife on the IUCN Red List of Threatened and
 Protected Species list                                                Protected Species list




                   No major fire incident                                                   No major fire incident



Integrated fire management infrastructure phase 2 in KAL             99.3% Integrated fire management phase 3 infrastructure
was completed in 2022                                                was completed in 2023
• No new planting and replanting in HCV (High Conservation           • No new planting and replanting in HCV (High Conservation
  Value), HCS (High Carbon Stock) and peat area since the              Value), HCS (High Carbon Stock) and peat area since the
  issuance of our sustainability policy on October 31, 2019            issuance of our sustainability policy on October 31, 2019
• No illegal or non-compliant palm oil land use change at            • No illegal or non-compliant palm oil land use change at
  ANJ since October 31, 2019 and FFB suppliers’ estates                ANJ since October 31, 2019 and FFB suppliers’ estates
  since December 31, 2020                                              since December 31, 2020
• No encroachment                                                    • No encroachment




                  0    fatality in 2022*                                               0    fatality in 2023*
 • Clean water, sanitation and health access are provided             • Clean water, sanitation and health access are provided
   to direct workers                                                    to direct workers
 • The access for contractors’ workers (indirect workers)             • The access for contractors’ workers (indirect workers)
   is in progress                                                       is in progress
 • Access to recreational facilities is available to all              • Access to recreational facilities is available to all
   workers                                                              workers
 • Access to worship facility with religious leader visiting          • Access to worship facilities with religious leaders
   the site                                                             visiting the sites

 *There is one contractor fatality case in 2022                       *There are two contractor fatality cases in 2023




                               Four out of six Palm Oil operating
                                                                                     all concessions have provided
   66   %                      concessions have provided access
                               for children of workers to primary        100%        access to early childhood /
                                                                                     preschool education
                               education facilities.

                               • No submitted grievance related to forced labor, human trafficking
                                 and child labor issues
                               • We have also provided training in all areas (Internal, Vendor /Contractor)
                                 regarding forced labor, human trafficking and child labor




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                                                    OUR
                                                    GOVERNANCE
                                                    Our corporate governance framework is made up of a
                                                    set of policies, controls, processes and standards that
                                                    apply to the whole company. These help to define roles
                                                    and responsibilities and ensure that everyone has a
                                                    mutual understanding and that decisions are made with
                                                    full transparency and accountability. The framework is
                                                    based on the Company’s basic values of integrity, respect
                                                    for people and the environment and a commitment to
                                                    continuous improvement, as outlined in the Company’s
                                                    Code of Ethics on Business Conduct.

     TRANSPARENCY,                                  According to Law No. 40/2007 on Limited Liability
     ACCOUNTABILITY,                                Companies, three mutually independent authorities

     RESPONSIBILITY,                                govern ANJ:
                                                    • The General Meeting of Shareholders (GMS) is the
     INDEPENDENCE                                     highest decision-making body.
     AND FAIRNESS ARE                               • The Board of Commissioners (BOC) advises the Board
                                                      of Directors and oversees Company management.
     CORNERSTONES OF GOOD                           • The Board of Directors (BOD) manages the Company
     CORPORATE GOVERNANCE                             for its shareholders. (2-9)

     (GCG) AND WE ARE                               The GMS is the main forum for shareholders to exercise
     DEDICATED TO WHOLLY                            their rights to make specific decisions about the
     RESPECTING THESE                               Company, receive reports from the BOC and BOD on
                                                    their performance and accountability, and question the
     VALUES. WE BELIEVE GCG IS                      relevant Boards. The Company must have an Annual
     ESSENTIAL FOR DELIVERING                       General Meeting of Shareholders (AGMS) within six

     SUSTAINABLE VALUES TO                          months after its financial year ends. At any time, an
                                                    Extraordinary General Meeting of Shareholders (EGMS)
     ALL OUR STAKEHOLDERS                           can be called. The GMS mandates the BOD and BOC
     AND ENSURING THE                               to manage issues and decisions regarding economic,

     COMPANY’S LONG-TERM                            environmental and social issues and holds them
                                                    accountable for these decisions.
     GROWTH IN LINE WITH
     OUR RESPONSIBLE                                The highest governing body is divided into two tiers: the
                                                    BOD, which serves as the executive board and the BOC,
     DEVELOPMENT GOALS."                            which serves as the supervisory board. The President
                                                    Commissioner of the BOC, a non-executive position and
                                                    the President Director of the BOD, an executive position,
                                                    chair the two-tier governance system. There are clearly
                                                    defined procedures in place for dealing with actual or
                                                    alleged conflicts of interest between the Company and
                                                    the personal interests of the BOD and BOC. Members of
                                                    the BOD, BOC and Controlling Shareholders’ affiliations
                                                    are stated in the Company’s Annual Report (page 167)
                                                    and comply with Financial Services Authority (Otoritas
                                                    Jasa Keuangan/OJK) rules. (2-11, 2-15)




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The BOC is assisted in its supervisory role by four            members of the BOD are not allowed to have jobs outside
Committees: The Audit Committee, Risk Management               of the Company’s Group. Under-represented social
Committee, Nomination and Remuneration Committee               groups or stakeholders are not represented.
and Corporate Social Responsibility (CSR) and
Sustainability Committee, each chaired by one of the           In 2023, following the GMS held on June 7, the
Commissioners. Each of these committees assists the            composition of the BOC and BOD underwent changes.
BOC in reviewing the effectiveness and due diligence of        This was after the shareholders consented to Mr. Istama
the organization concerning the Company’s impacts on           Tatang Siddharta stepping down as a Commissioner of
the economy, environment, society and human rights.            the Company and the subsequent appointment of Mr.
(2-12)                                                         Mohammad Fitriyansyah as a Director of the Company.
                                                               (POJK51-C.6)
The BOC is made up of seven non-executive
commissioners, three of whom are independent. The              More information about our BOD and BOC can be
BOD has six executive directors. Both the BOC and the          found on our website, [https://www.anj-group.com/
BOD are appointed for a period that lasts until the fifth      en/struktur-perusahaan] and our Annual Report
GMS following their appointment. Members of the BOC            page 62-77. (2-9)
may have jobs outside of the Company’s group, while


Table 02. Board of Commissioners (2-9)


                Name                     Position              Term started         Term ends            Independent
 Adrianto Machribie            President Commissioner           AGMS 2020           AGMS 2025                   √

 George Santosa Tahija         Commissioner                     AGMS 2020           AGMS 2025

 Sjakon George Tahija          Commissioner                     AGMS 2020           AGMS 2025

 Anastasius Wahyuhadi          Commissioner                     AGMS 2020           AGMS 2025

 J. Kristiadi                  Commissioner                     AGMS 2020           AGMS 2025                   √

 Darwin Cyril Noerhadi         Commissioner                     AGMS 2021           AGMS 2026                   √

 Istini Tatiek Siddharta       Commissioner                     AGMS 2021           AGMS 2026


Table 03. Board of Directors (2-9)


                 Name                             Position                    Term started              Term ends
 Lucas Kurniawan                     President Director                        AGMS 2021                 AGMS 2026

 Geetha Govindan                     Vice President Director                   AGMS 2021                 AGMS 2026

 Naga Waskita                        Director                                  AGMS 2022                 AGMS 2027

 Aloysius D’Cruz                     Director                                  AGMS 2021                 AGMS 2026

 Nopri Pitoy                         Director                                  AGMS 2021                 AGMS 2026

 Mohammad Fitriyansyah               Director                                  AGMS 2023                 AGMS 2028




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     Diversity is valued across all levels of the organization,   The BOD has key performance indicators (KPIs) linked to
     including the executive level. Members of the BOC and        the Company strategy and implementation plan, including
     the BOD have extensive experience, qualifications and        sustainability targets or objectives. Each member evaluates
     understanding that the Company feels are required            their performance against these KPIs at the conclusion
     to realize ANJ’s goals. The diversity of ANJ’s Board         of the evaluation period. Each member of the BOD is
     is consistent with the Appendix of the OJK Circular          accountable for at least one of the KPIs for Responsible
     Letter No. 32/SEOJK.04/2015 on Corporate Governance          Development (RD). The collegial performance assessment
     Guidelines for Public Listed Companies. Details of the       of the BOC is carried out by each Commissioner. The
     diversity of ANJ's Board are disclosed on our Annual         final evaluation will be presented to the Nomination and
     Report page 160-161.                                         Remuneration Committee in the Board of Commissioners
                                                                  meeting. The President Commissioner provides feedbacks
     The composition of the board reflects the Company’s          or improvements on the assessment of the Board of
     priorities through a fusion of collegial and individual      Commissioners, if deemed necessary. (2-18)
     expertise. Appointments to the Company’s BOC and BOD
     are made after careful deliberation that considers their     The President Director verifies and evaluates the annual
     knowledge and expertise in the plantation business, as       performance of BOD members. Meanwhile, the annual
     well as their integrity and dedication.                      performance of the President Director is reviewed and
                                                                  assessed by the NRC. The outcomes of the evaluations
                                                                  are further examined with the NRC, and compensation
     Board Nomination and Evaluation                              recommendations for Directors are made. Based on the
                                                                  self-assessment results, the Committee also directs the
     At the GMS, shareholders appoint Commissioners               development of areas of improvement. (2-18)
     and Directors based on the recommendations from
     the Company’s Nomination and Remuneration                    To integrate our commitments into our decision-making
     Committee (NRC). Candidates, including independent           and execution, ANJ has a policy to include 15% of the
     Commissioners, must be nominated by at least one             management performance, including at the Board level,
     shareholder who owns at least 10% of the total shares        in the ESG initiative targets, under the Responsible
     with voting rights. Other stakeholders, aside from           Development program. Every employee and member of
     shareholders, are not involved in the process. Diversity     the BOD should participate in at least one RD project.
     criteria, as well as skill and experience in economic,       Failure to fulfill agreed-upon objectives will result in a
     environmental and social domains, are taken into             poor performance evaluation grade for the respective
     account during the nomination and selection process.         Board members, hence reducing their performance-
     The independence of board members is also considered,        based annual bonus. (2-19, POJK51-F.1)
     since boards are made up of professional Directors
     and independent Commissioners who are not related
     to or affiliated with the Company’s shareholders, in         Board Remuneration
     accordance with the provisions of OJK Regulation No.33/
     POJK.04/2014. Furthermore, the NRC is chaired by             The Company is dedicated to developing a competitive,
     an independent Commissioner to guarantee that the            fair, risk-based remuneration structure that is consistent
     nomination and selection processes are as impartial          with industry practice and current laws and regulations.
     as possible. More information about the selection and        The Company also ensures that no individual is paid
     nomination of the BOD and BOC can be found on page           less than the government-mandated minimum wage.
     151-157 of the Annual Report. (2-10)                         Further, the Company examines the remuneration
                                                                  applicable in related businesses (peer group) and the
     Annually, the GMS evaluates the performance of the BOC       Company’s capabilities. (2-19)
     and BOD based on their annual accountability reports.
     Additionally, each Board conducts an annual self-            In compliance with applicable laws and regulations,
     evaluation of its performance. No external parties were      the Company implements remuneration policies that
     selected to examine the performance of the BOC or BOD.       encompass all levels of the organization, including the
     (2-18)                                                       BOC, the BOD, and the workers and include both mandatory
                                                                  components and additional benefits. Members of the
                                                                  BOC are paid a monthly honorarium, whereas members
                                                                  of the BOD are paid a base salary, a performance bonus,



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allowances, benefits, management stock options and long-            Due to confidentiality considerations, we are unable to
term retainer bonus if the member of the BOD remains at             disclose specifics regarding the annual compensation
the service with the Company at the end of fifth year after         ratio between the highest-paid individual and the median
the retainer bonus is granted. Liability insurance covers           annual total compensation for all employees, along with
all Commissioners and Directors. No clawback clauses                the percentage increase of this ratio. Nonetheless,
are included in the remuneration and benefits received by           relevant data and information regarding this matter are
the BOD and BOC. The shareholders at the GMS decide on              readily accessible and available upon request. (2-21)
the level of remuneration for both the Commissioners and
the Directors based on the suggestion of the NRC. Details
on remuneration are disclosed in our Annual Report on               Training for the BOD and BOC (POJK51-E.2)
page 164-166. We refrain from providing sign-on bonuses
and recruitment incentive payments, whereas termination             We take steps to ensure that our BOD members have the
compensation and retirement benefits are provided in                knowledge and skills necessary to properly implement
accordance with Indonesia’s labor law. (2-19, 2-20)                 our sustainability goals. Board members acquire
                                                                    sustainability training and knowledge through a variety
The Company did not hire outside advisors to develop its            of means, including short courses, workshops and
remuneration policy. However, to remain competitive, the            seminars, self-study and participation in sustainability-
Company conducted salary benchmarking using third-                  related projects. Certain members of the BOD underwent
party surveys. The remuneration policy of the Company               training on sustainable development subjects in 2023, as
is based on performance, competitiveness, fairness and              shown in the table below. (2-17)
risk. There is no system in place to seek stakeholder
inputs when considering board remuneration. (2-20)


Table 04. Training and Development of BOD on Sustainable Development Topics


  No                               Trainings                                     Participants                   Date
        Global Deep Dive 1 - Business & Human Rights Accelerator - UN
  1.                                                                           Lucas Kurniawan         February 7, 2023
        Global Compact

        EU Carbon Border Adjustment Mechanism: What it means for
  2.                                                                           Lucas Kurniawan         March 29, 2023
        businesses in Asia Pacific and their decarbonization Journey

        The Importance of ESG and Countering Negative Campaigns in the
  3.                                                                           Lucas Kurniawan         April 4, 2023
        CPO Sector

        Local Peer-to-Peer Learning Session 3: Prioritizing Potential
  4.                                                                           Lucas Kurniawan         April 18, 2023
        Impacts Based on Severity and Likelihood

        2023 International Seminar on Carbon Neutrality and Energy
  5.                                                                           Lucas Kurniawan         May 3, 2023
        Policy by Korea Chamber of Commerce and Industry

        Peer-to-Peer Learning Session 4: BHR Accelerator - UN Global
  6.                                                                           Lucas Kurniawan         May 17, 2023
        Compact

        Business and Human Rights Accelerator: Global Deep Dive 6 - UN
  7.                                                                           Lucas Kurniawan         June 26, 2023
        Global Compact

        Launch of 2023 CDP Global Forest Report: “Beyond Climate
  8.    and into Nature: Developing Strategies Towards Environmental           Lucas Kurniawan         August 2, 2023
        Stewardship”

        Climate Ambition Accelerator: Regional peer sharing on SBTi
  9.                                                                           Lucas Kurniawan         August 16, 2023
        journey

        Coaching Clinic 3 SDG 16 Business Framework: Inspiring
  10.                                                                            Naga Waskita          April 4, 2023
        Transformational Governance

        RSPO Conference: Solutions for Worker Health and Safety in a                                   November 20, 2023 -
  11                                                                            Geetha Govindan
        Heating Climate                                                                                November 22, 2023

  12    Business and Human Rights Accelerator – UN Global Compact               Nunik Maharani         February 7, 2023




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                                                                                          Our team regularly engages with communities to
                                                                                           raise awareness and promote our sustainability
                                                                                                                   policies and initiatives




     Sustainability Governance (POJK51-E.1)

     The BOD led by the President Director, is responsible        The Director of Sustainability oversees developing
     for leading, managing, directing day-to-day operations,      and implementing the Company’s sustainability
     and ensuring that the Company adheres to its vision and      commitments and initiatives. A team of senior managers
     mission, as well as good governance standards. The           supports the Director of Sustainability, including the
     President Director oversees the activity of all Directors.   Head of CID and Cooperatives, the Head of Conservation,
     (2-9)                                                        and the Head of Corporate Communications. Other
                                                                  departments that are directly related to the sustainability
     The CSR and Sustainability Committee ensures that            function also collaborate with the sustainability
     the BOC can accurately supervise and monitor the             department. Senior executives report quarterly to the
     Company’s CSR and sustainability commitments, which          CSR & Sustainability Committee and bi-weekly to the
     are based on operational risks and opportunities. The        ANJ Executive Leadership Team (AELT) meetings, which
     group meets quarterly to examine challenges, progress        are attended by all members of the BOD, including those
     on responsible development initiatives, environmental        from subsidiaries. (2-13)
     and social issues and community grievances, community
     participation, government engagement, biodiversity           Given the importance of sustainable palm oil operations
     protection, alignment with SDGs, media attention,            to our sustainability performance and carbon footprint,
     and sustainability recognitions. In 2023, the CSR and        the Vice President Director oversees and manages the
     Sustainability Committee met four times, with full           impacts of our palm oil operations, as well as the risks
     attendance at each meeting. Sjakon George Tahija, a          and opportunities associated with climate change. (2-13)
     Commissioner of the Company, chairs the CSR and
     Sustainability Committee. (2-12)




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                      Sustainability Governance Structure (2-9, 2-13, POJK51-E.1)



                                                                      BOARD OF
                                                                    COMMISSIONERS




                                                                      PRESIDENT
                                                                       DIRECTOR




                                                                                                             VICE PRESIDENT
                                                                                                                DIRECTOR




                                           SUSTAINABILITY
                                            & CORPORATE
                                          COMMUNICATIONS
                                              DIRECTOR




                                                    HEAD OF                            HEAD OF
          HEAD OF CORPORATE                       COOPERATIVES      HEAD OF         SUSTAINABILITY
           COMMUNICATIONS                             & CID       CONSERVATION       COMPLIANCE




  INTERNAL         EXTERNAL       BRAND &                                            SUSTAINABILITY         SUSTAINABILITY
COMMUNICATION    COMMUNICATION   MARKETING            CID         CONSERVATION        COMPLIANCE             COMPLIANCE
  MANAGER          MANAGER     COMMUNICATION        MANAGER         MANAGER         MANAGER REGION           COORDINATOR
                                  MANAGER                                                1,2 & 3               MANAGER




                                                                                    SUSTAINABILITY
     CONTENT                     CORPORATE                          CONSERVATION     COMPLIANCE               SUSTAINABILITY
     CREATOR                   COMMUNICATION          CID STAFF       DATABASE        ASSISTANT                COMPLIANCE
    SPECIALIST                     STAFF                                STAFF         MANAGER                     STAFF




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 STAKEHOLDER ENGAGEMENT (POJK51-E.4)




 TO ACTIVELY INVOLVE AND ENGAGE WITH STAKEHOLDERS
 AT ALL LEVELS (LOCAL, REGIONAL, NATIONAL AND
 INTERNATIONAL), WE EMPLOY A WIDE VARIETY OF
 STRATEGIES. EMPLOYEES, SUPPLIERS AND CONSUMERS,
 SHAREHOLDERS, GOVERNMENT AND REGULATORS,
 LOCAL COMMUNITIES, COMMUNITY-BASED GROUPS, NON-
 GOVERNMENTAL ORGANIZATIONS, BUSINESS PARTNERS,
 INDUSTRY PEERS AND ASSOCIATIONS AND THE MEDIA
 ARE ALL EXAMPLES OF SIGNIFICANT STAKEHOLDER
 CATEGORIES FOR US. THROUGH CONSISTENT
 INTERACTION AND COMMUNICATION, BOTH FORMALLY
 AND INFORMALLY, COMMENTS AND CONCERNS ARE
 GATHERED." (2-29)

 Stakeholder engagement activities, such as         Stakeholders outside of the organization are
 community forums and consultation groups,          consulted to better comprehend and address
 the implementation of community complaints         the environmental, social and economic subjects
 and grievance mechanisms, representation on        and challenges highlighted in the report. Our
 certain industry association committees and        staff are updated through a variety of internal
 initiatives and community programs, must be        platforms, including but not limited to e-mail,
 planned, implemented, and documented by all        a newsletter (Simpul), a magazine (Cakrawala),
 our business entities. Our internal processes of   intranet, town halls, anonymous surveys,
 identifying and mapping our stakeholders are       social events, and meetings. We provide both
 kept current through continuous communication      English and Indonesian versions of our internal
 with those with whom we aim to engage. (2-29)      documentation and announcements. (2-29)




Our staff regularly conduct dialogue with
local communities to share and discuss our
sustainability and commitments.




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                   TESTIMONIALS
                                                                                                            Vitaquodipis adigendae exerrum quassim
                                                                                                         voluptat ut voluptiorit fuga. Ut aces simi, adi
                                                                                                     aut a ne siminvel into iminctum repedi ditaeped
                                                                                                                       magnimo loruptae nulpa cores
                                        Tommy Sudjarwadi
                                        Partner, Dunamis Organization Service

                                        ANJ is a forward-thinking business organization that has integrated a visionary set of values and
                                        principles well before the 3P concept (Prosperity, Planet, People) became a benchmark for business
                                        success. These elements form the core of ANJ’s operations and are rigorously detailed, promoted,
                                        and consistently applied under the banner of ANJ Values.


                                        In a business landscape predominantly focused on profit, ANJ Values acts as a robust counterbalance,
                                        ensuring that ANJ maintains a focus on human welfare and environmental sustainability. This
                                        equilibrium is maintained through the strict discipline of ANJ’s shareholders and senior leadership,
                                        as well as the cultivation of a strong organizational culture anchored in ANJ Values.

                                        A variety of initiatives and critical routines are carried out to sustain ANJ Values, especially
                                        involving key decision-makers and Values Guardians. In 2023, Values Champions from various levels
                                        collaborated to fortify their roles across the organization. The strategy comprised three main actions:
                                        Commit (to reinforce commitment), Model (to serve as exemplars), and Reinforce (to promote
                                        consistent behaviors among employees). While these efforts may seem straightforward, the tireless
                                        work to mutually strengthen the relationships among Values Champions and more broadly among all
                                        employees, establishes ANJ Values as a robust foundation for ANJ, positioning it as a reliable and
                                        sustainable organization.




                                        Hadrianus Andjar Rafiastanto
                                        Deputy Chief of Party, USAID Sustainable Environmental
                                        Governance Across Regions (SEGAR) Activity

                                        During four field trips undertaken during the year by the Sustainable Environmental Governance
                                        Across Regions (SEGAR) Activity to the KAL concession, including its High Conservation value (HCV)
                                        area, the commitment of the company to the protection and management of its 3,973 hectares HCV
                                        area is evident.

                                        The area constitutes 23% of its total concession and plays a key role in conserving the habitat of the
                                        resident orangutan population within. KAL’s Conservation Team has consistently implemented good
                                        HCV management and monitoring, consistent with its plan and supported by strong data collection
                                        and analysis.

                                        Further, KAL has shown its willingness to support biodiversity and forest protection outside
                                        its concession area, by working with the local community and district government to conserve
                                        threatened mangrove ecosystems in two neighbouring villages, Kuala Satong and Kuala Tolak, as
                                        well as conserving forests and orangutans in Laman Satong village.

                                        In addition, KAL has provided technical assistance to independent smallholders in neighbouring
                                        villages to improve their capacity to produce oil palm more sustainably, as well as supporting the
                                        Village Forest Management Unit and village-owned water bottling enterprise in Laman Satong to
                                        strengthen local sustainable livelihoods.

                                        These activities demonstrate KAL’s commitment to meeting Environmental, Social and Governance
                                        (ESG) standards, as well as its contribution to Sustainable Development Goals (SDGs).




                                        DR. Edi Purwanto
                                        Director, Tropenbos Indonesia

                                        We are proud of the strong partnership between KAL and Tropenbos Indonesia (TI) in preserving the
                                        forest since 2016. Our collaboration in developing the Essential Ecosystem Management Plan (KEE)
                                        for the Putri-Gunung Tarak-Gunung Palung Landscape, Ketapang Regency, has resulted in significant
                                        achievements, including the allocation of 3,973 hectares of High Conservation Value (HCV) areas.

                                        We highly appreciate KAL’s efforts in ensuring environmental protection and sustainable
                                        development around its operational areas. The collaboration between KAL and TI has not only
                                        benefited environmental preservation but also improved the welfare of local communities, such as
                                        the development and empowerment of Kuala Tolak, Kuala Satong and Laman Satong villages.

                                        We hope this partnership continues to grow and brings broader positive impacts on the environment
                                        and local communities around Ketapang Regency.




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Grievance and Whistleblowing Systems                       Champion Committee at the Jakarta headquarters.
                                                           Unethical actions are investigated and depending on the
We have in place a grievance procedure for stakeholders    circumstances, disciplinary measures may be taken. 35
to report complaints or issues. Complaints can be          Values Champions were working across the ANJ Group
communicated directly to our Community Involvement         at the end of 2023.
and Development (CID) or security employees at each
estate, or via digital channels. Grievances are recorded   In addition, we have a whistleblowing system (WBS)
and reviewed at the estate level and depending on the      known as Berani Bicara. Through this channel, any
severity and scale of the case, may be escalated. Each     employee, third-party vendor, supplier or other
report must be investigated within fourteen days of        stakeholder may report concerns securely and
receipt. We are committed to addressing concerns           confidentially regarding any suspected misconduct,
and taking corrective action following the verification    such as fraud, corrupt practices, violations of the Code
of reports and in the event of real adverse effects or     of Ethics or the corporate values or any violation of
violations by the Company. As per the RSPO Principles      laws and regulations by any member or associate of the
and Criteria, an independent third party assessed and      Company. The system is intended to aid in the prevention
validated our grievance procedure. (2-25)                  and early detection of wrongdoing that could be harmful
                                                           to the Company or its reputation. The Internal Audit Unit
To ensure that the Company’s values are consistently       conducts investigations into whistleblower reports. (2-26)
emphasized at all levels and throughout all business
areas, we established the Values Champion system in        Other channels such as internal audits, stakeholder
2013. Values Champions are employees who have been         meetings, reviews of social and environmental
selected to promote ANJ’s core values and observe how      assessments and the annual shareholders meeting,
these values are being applied on the job. The Company     also allow for the expression of critical issues. Important
looks to its Values Champions to set an example of         economic, social, and environmental issues are
how those principles are actualized. Values Champions      considered at the meetings of the CSR & Sustainability
provide a monthly report to their assigned Values          Committee and the AELT. Joint meetings between
Champion Coordinator detailing any major practices         the BOC and the BOD provide an additional forum for
that were or were not in line with the Company values.     debating these crucial issues and critical concerns. (2-
ANJ’s Values Guardians, commissioners George Tahija        16, 2-26)
and Anastasius Wahyuhadi, receive these monthly
reports after they have been evaluated by the Values




Through our WBS channel, Berani Bicara, the Company
ensures the confidentiality of all informants.




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                          ANJ VALUES: NAVIGATING CHANGE IN AGRIBUSINESS WITH
                          INTEGRITY AND TRUST
 FEATURE STORY




                                                                        ANJ's Values Guardian, George S. Tahija, expressed pride and optimism regarding
                                                                       our Values Champions, who are dedicated to extending ANJ's values to all employ-
                                                                                                                            ees across the organization.



                          Navigating the complexities of the modern               These instruments are all aimed at protecting
                          agribusiness sector requires resilience,                the Company from practices that violate its core
                          adaptability, and a clear set of guiding                values.
                          principles. ANJ has faced the challenges of a           Among these, the Values Champion stands out
                          rapidly changing geopolitical landscape and             as the longest-serving instrument, having laid
                          the undeniable impacts of climate change                the groundwork for value implementation at ANJ
                          head-on, with a commitment to maintaining a             well before the introduction of the other systems.
                          responsible and economically viable business.
                          Amidst this environment of constant change,             The genesis of ANJ Values was rooted in 1998
                          ANJ has anchored itself in two constants: a             when ANJ formulated its core values. In 2003,
                          steadfast commitment to its core values and             ANJ management underwent its first retreat,
                          the trust it has earned within its brand.               signifying the Company's commitment not only
                                                                                  defining its values but also actively living by them.
                          These core values —Integrity, Respect for               In 2013, the formal inception of Values Champion
                          People and the Environment and Continuous               (VC) batch 1 marked a significant evolution when
                          Improvement— serve as ANJ’s North Star,                 a group of employees was explicitly recognized
                          guiding every aspect of its operations, from            and tasked with championing the core values.
                          strategic decisions to daily tasks. They are the        Since then, the framework and procedures of VC
                          foundation of the Company’s identity and the            have been methodically structured, incorporating
                          lens through which all business activities are          regular meetings and reporting mechanisms.
                          evaluated and executed. These values have               This systematic approach facilitates the
                          been firmly upheld throughout the years and             champions’ continuous engagement and
                          have never grown obsolete since its formulation         accountability toward their roles.
                          25 years ago.
                                                                                  Two in-depth retreats in 2016 and 2023 further
                          Currently, ANJ employs several mechanisms               demonstrated the seriousness of the Company to
                          to reinforce its values, such as the whistle-           foster stronger sense of community among the
                          blowing system “Berani Bicara,” LKS Bipartit,           champions and serving as a vital checkpoint to
                          the Gender Committee and Values Champion.




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assess the progress and impact of the program while           sense of pride and ownership, as well as ensuring that
planning future actions. With a theme of “Becoming            all employees internalize the Company’s core values as
Great Values Champions: from Values to Corporate              to have a unified perceptions of the Company’s culture
Culture”, the retreat in March 27-28, 2023, focused on        and what is expected from them.
both celebrating the achievements and looking forward
to future challenges and opportunities while adapting to      This initiative’s significance is highlighted by the direct
the evolving needs of the Company and its environment.        involvement of the Values Guardians, George Tahija and
By the end of the event, participants were imbued with a      Anastasius Wahyuhadi, who are the Commissioners of
renewed enthusiasm for fulfilling their roles as Values       the Company. They take responsibility for ensuring the
Champions.                                                    Company’s actions reflect its core values.

During the event, George Tahija, ANJ’s Values Guardian,       In a recent survey, 40% of respondents acknowledged that
expressed his pride and optimism about the evolution          the Values Champion instrument has a very good impact
of the Values Champion. He remarked, “Witnessing              on the Company, while an additional 44% acknowledged
the transformation of VC from its initial steps as a          its good impact. This indicates a strong endorsement
foundational initiative to a comprehensive framework          of the instrument, with a combined 84% of participants
that actively molds our company’s culture gave me             affirming its positive influence. The consensus among
immense pride. The dedication and enthusiasm of               nearly all respondents is that the Values Champion should
our Champions was remarkable. Their willingness to            be continued as it forms the foundation of the Company’s
voice opinions, engage in meaningful discussions, and         existence. This consensus highlights the effectiveness of
actively contribute to group and classroom settings have      the Values Champion instrument in fostering a positive
been pivotal. They have adhered to the event schedule         and enduring organizational culture. This deliberate
with notable discipline and punctuality, courageously         focus on values and culture underscores ANJ’s
tackling real challenges and issues. I am convinced           recognition that long-term success and sustainability
that participation in this retreat has enriched their         are not just about financial performance but also about
understanding of their roles as Values Champions. I           building a strong, value-driven organization. In doing so,
remain optimistic that with the sustained support from        ANJ ensures that its commitment to integrity remains
all our Champions, these values will be firmly ingrained      at the forefront of its business strategy, fostering a trust
within our corporate ethos.”                                  that resonates with its key stakeholders.

Equally important is how ANJ values are then extended         Anastasius Wahyuhadi, shared insightful reflection on
to all employees, ensuring comprehensive engagement           the ongoing journey of VC: “Values Champion, both as
and participation across the organization. After a two-       an instrument and especially as individuals, is always
year hiatus from in-person format due to Covid-19             work in progress; we must acknowledge the ongoing
pandemic, ANJ Values Workshop commenced with its              opportunities for improvement through humility, self-
first live meeting in 2022 continuing to 2023, conducting     reflection, and a committed spirit to enhance our efforts.
sessions across business units including ANJA, ANJAS,         Building a company culture through instilling values
SMM, KAL, ANJT, GMIT, ANJAP, PMP and PPM. The                 is a gigantic task — it demands our perseverance and
primary goal of this initiative is to ensure that every ANJ   resilience, but I am confident that ANJ will navigate
employee understands and embodies the established             these challenges successfully.” His words serve as a
vision, mission, and core values in their behavior            reminder of the commitment and diligence required to
and personal attributes. 28 workshop sessions were            build and maintain a meaningful organizational culture.
conducted within 2023. The workshops also ensured
that employees from all levels of work and divisions          In a world of constant flux, ANJ’s dedication to its core
participated actively.                                        values and the trust it has earned and nurtured within its
                                                              brand stand as testaments to its vision and leadership
The ANJ Values Workshop plays a crucial role in fostering     in the agribusiness sector. Through continuous
the personal development of ANJ employees, instilling a       engagement and reinvigoration of its values, ANJ not
                                                              only navigates the challenges of today but also paves the
                                                              way for a resilient and sustainable future.




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     Our Sustainability Commitments          Prosperity               Planet                    People                      Appendix




                                                                          ANJ's Values Guardian, Anastasius Wahyuhadi, congratulated the employees
                                                                                                  who had just been appointed as Values Champions.




                                       CRITICAL CONCERNS REPORTED IN 2023 (2-26)
                                                    DESCRIPTION OF CASES



             Fraud & Manipulation                      Non-Compliance                                         Operational
               (Integrity related)                 with Internal Control SOP                                  Inefficiency

                                                  DESCRIPTION OF CASES

      Major                            -       Major                            -               Major                                       -
      Minor                            1       Minor                           11               Minor                                       -
      Total Cases                      1       Total Cases                     11               Total Cases                                 -
                                                              TOTAL

              MAJOR                     -                 MINOR                  12                       TOTAL CASE                      12


     We endeavor to meet and surpass local and international rules, standards and prevailing laws and regulations. There
     were no cases of non-compliance against laws and regulations that resulted in fines or other non-monetary sanctions
     in 2023. (2-27)




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                                                                                                         2023 Sustainability Report




External Initiatives and Memberships

Participating in national and regional groups that encourage information exchange and better standards and compliance
among producers and other stakeholders is an important aspect of our stakeholder engagement strategy. These
memberships do not add significant expenses beyond the annual subscription amount paid by the Company. (2-28)

Table 05. ANJ’s membership in associations in 2023 (POJK51-C.5)


                       ASSOCIATION                                                        ROLE

 Indonesian Public Listed Companies Association (AEI)       Participates as an active member.

                                                            Participates in forums to encourage a conducive climate for the
 Indonesian Palm Oil Producers’                             palm oil industry, increase capacity for sustainable palm oil,
 Association (GAPKI): Central Office, Bangka Belitung and   advocate for solutions to problems in the palm oil industry and
 North Sumatra Branch                                       synergize with the government on related policies; Active member
                                                            in Sustainability section (GAPKI Central Office).

                                                            Participates in forums to coordinate compliance with government
 Association of Large Private Plantations (APBS) Belitung   policies, discuss solutions to industry problems, and share
                                                            information.

                                                            Participates in fostering the development of the business
 Indonesian Chamber of Commerce
                                                            community and all its stakeholders, regarding economic policy
 and Industry (KADIN)
                                                            formulation and implementation throughout Indonesia.

                                                            Participates in promoting the development of sago as part of the
 Indonesian Sago Community (MASSI)
                                                            national food security effort.


                                                            Participates actively in two working groups: No-deforestation
 Roundtable on Sustainable Palm Oil (RSPO)                  Task Force and Indonesia National Interpretation; Represents
                                                            Indonesian Growers Caucus as Complaint Panel member.


                                                            Participates as a member to promote sustainable palm oil
 Indonesian Growers Caucus                                  management and best practices and to share insights of common
                                                            interests in the industry.


 UN Global Compact                                          Signatory of the UN Global Compact.


 Indonesian Sustainable Palm Oil Forum
                                                            Participates as an active member.
 (FoKSBI)




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     Palm oil landscape at our subsidiaries in Southwest Papua.




42   PT Austindo Nusantara Jaya Tbk.
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PROSPERITY

  Economic Performance Amid Global Challenges                 45
  Upholding Best Practices in Supply Chain and Traceability   51
  Upholding Highest Commitments to Customer Excellence        58
  Fostering Community Prosperity and Well-Being               59




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     Our Sustainability Commitments    Prosperity     Planet                   People                    Appendix




     ANJ’S RESPONSIBLE
     DEVELOPMENT APPROACH IS
     ANCHORED IN ROBUST AND
     SUSTAINABLE ECONOMIC
     PERFORMANCE, WHICH
     SERVES AS A CORNERSTONE
     OF OUR OPERATIONS. WE
     RECOGNIZE ITS PIVOTAL ROLE
     IN ENSURING THE LONG-TERM
     SUCCESS OF OUR COMPANY
     AND IN FOSTERING POSITIVE
     ECONOMIC OUTCOMES
     AND GROWTH WITHIN THE
     COMMUNITIES WE SERVE,
     ESPECIALLY THOSE WITHIN                        Setting up safety nets on FFB trucks helps prevent fruits
     OUR VALUE CHAIN. ECONOMIC                      from falling during transportation.


     PERFORMANCE SERVES AS THE
     FOUNDATION FOR ACHIEVING                       Central to ANJ’s mission is the inclusivity of our
                                                    operations, aimed at creating opportunities and
     A HARMONIOUS EQUILIBRIUM                       fostering community development. By integrating local
     BETWEEN PEOPLE, PLANET                         smallholder farmers into our value chain, offering
                                                    employment prospects, and catalyzing business
     AND PROSPERITY. "                              opportunities, we actively contribute to the betterment of
                                                    our surrounding communities. Moreover, our presence
                                                    attracts workers and their families to the region, thereby
                                                    stimulating local economic growth through creating
                                                    demand for goods and services from nearby merchants,
                                                    grocery stores, eateries, and other enterprises. We aspire
                                                    to evolve into a driving force for economic advancement
                                                    at both local and regional levels.

                                                    To ensure widespread socioeconomic empowerment, we
                                                    implement initiatives such as Community Involvement and
                                                    Development (CID) and Responsible Development (RD)
                                                    projects. These endeavors are designed to facilitate the
                                                    participation of all members of the community in the local
                                                    economy, particularly those who are marginalized. By doing
                                                    so, we aim to enable every individual to fully engage with
                                                    and benefit from local economic growth and development.




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ECONOMIC PERFORMANCE AMID
GLOBAL CHALLENGES

Compared to recent years, the economic climate in         Accelerating Growth and Fostering
2023 improved but still faced significant hurdles from
                                                          Innovation (POJK51-F.26)
the profound impact of the pandemic on businesses
and the global economy, as well as the         El Niño
                                                          Given the unpredictable nature of the global
phenomenon, which has already caused extremes
                                                          economy, our primary approach to sustaining
of weather across our operating region. El Nino’s
                                                          growth and resilience is to integrate ESG strategies
aberrant weather patterns brought about a prolonged
                                                          into our core business framework. Several of our
drought condition, leading to reduced yields and
                                                          ESG programs, including the composting initiative,
diminished fruit quality. Overall, the El Niño event
                                                          have demonstrated cost-effectiveness. We are
of 2023 highlighted the importance of resilience and
                                                          committed to further exploring additional projects
adaptation in the face of climate change for the palm
                                                          and investing in agronomic innovations to enhance
oil industry.
                                                          productivity. Concurrently, we will maintain a focus
                                                          on cost management and restrict non-essential
Market volatility and competition also posed
                                                          capital expenditures to preserve profit margins.
challenges to the Indonesian palm oil industry in 2023.
                                                          These efforts complement existing strategies like
Fluctuations in the global market continued to impact
                                                          replanting and optimizing our factories’ production
the profitability of palm oil producers, particularly
                                                          capacity.
smallholders. For example, in 2023, the average
price of crude palm oil (CPO) in Indonesia reached a
                                                          ANJ is dedicated to research and development
peak of around USD 965 per metric ton in February
                                                          (R&D), exemplified by the establishment of an R&D
but dropped to around USD 795 per metric ton by
                                                          section at SMM in 2015. This R&D capability was
December. Competition from other vegetable oils,
                                                          developed in partnership with the French agricultural
such as soybean and rapeseed oils added complexity
                                                          research group, Centre de Coopération Internationale
to the market dynamics. Additionally, forthcoming
                                                          en Research Agronomique pour le Développement
regulatory measures in importing countries, such
                                                          (CIRAD). Our R&D laboratory houses a team of
as the European Union Deforestation Regulation
                                                          experts in soil science, microbiology, statistics, pests
(EUDR), may have a significant impact on the palm oil
                                                          and diseases, alongside field research personnel
industry in Indonesia. This specific regulation aims to
                                                          who oversee field trials and monitor optimal
reduce the import of products linked to deforestation,
                                                          management practices. Collaborating closely
including palm oil, by setting stricter criteria for
                                                          with our estates, the R&D team implements best
sustainable production. As the Netherlands is one of
                                                          agronomic practices and fosters innovation.
the top five largest importers of Indonesian palm oil,
this regulation may lead to a decline in demand and
                                                          Additionally, we will persist with our replanting
a subsequent decrease in exports. The European
                                                          program in the ANJA and SMM estates with the
Union’s RED II directive, which aims to phase out high-
                                                          objective to maintain a balanced age composition
risk biofuels like palm oil-based biofuels, may also
                                                          of palm plants, ensuring sustainable production in
reduce the demand for Indonesian palm oil exports.
                                                          the coming year. In addition, efforts to secure land
Moving forward, ANJ and the wider industry will need
                                                          compensation at GSB will continue, with a target of
to consider these challenges to ensure that negative
                                                          consolidating 3,000 hectares of contiguous area for
impacts are mitigated.
                                                          the HGU process. As our plantations in Southwest
                                                          Papua has reached maturity in 2023, we proceed
                                                          with planned infrastructure developments, primarily
                                                          focusing on road lateriting, to enhance logistics and
                                                          transportation efficiency.




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                                                                                     Workers harvest mature oil palm plants, carefully
                                                                                        cutting and collecting the fresh fruit bunches.



     As part of Indonesia’s food diversification and security      In our edamame venture, we concentrate our strategic
     efforts, we believe that sago starch presents a significant   efforts in a number of key areas, including: to expand
     opportunity as a sustainable alternative carbohydrate         the planted area by establishing broader collaborations
     source, which can help reduce reliance on rice, wheat,        with farmers in and around Jember; to increase yields by
     and other staple grains. Sago starch, being gluten-free       implementing the best agronomic practices, investing in
     and with beneficial digestive properties, has potential       seed quality programs and strengthening our integrated
     applications in various food products. We are observing       pest management strategies; to develop professional
     a growing interest in its use in processed foods, both        and skilled Field Assistants through the Field Assistant
     domestically and in export markets such as Japan,             Development Program to guide farmers towards better
     Singapore, Malaysia and China. To take advantage of           yields; to optimize the plant capacity by processing other
     this, throughout 2023, we are continuing our efforts in       raw vegetables during low edamame production periods;
     preparing the launch of our second sago estate area           to expand export markets to countries beyond the Asia
     with the main objective to increase the number of logs        Foods channels; to grow the domestic market with
     processed per day and stabilize production volumes to         Edashi-branded frozen edamame packs.
     meet our targets in serving the markets.
                                                                   As part of our sustainability strategy, which aims to
     Moreover, we will enhance our sago starch extraction          reduce reliance on fossil fuels and greenhouse gas
     rate by optimizing our current processing technology,         emissions, we recognize the potential of biogas for
     to boost output volumes and lower production costs per        internal energy consumption. Our management team
     kilogram. Additionally, we intend to establish a biomass      is committed to accelerating our renewable energy
     power plant to increase our utilization of renewable          initiatives, including the consideration of building a new
     energy sources and decrease fuel expenses.                    biogas facility at either ANJA or KAL. This initiative will
                                                                   not only help reduce our dependence on fossil fuels but
                                                                   also mitigate the risk of potential shortages in the future.



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Navigating Challenges to Forge Ahead in Production and Sales
(POJK51-B.1.a, POJK51-F.2)


In 2023, we expanded our total productive oil palm            Despite challenges, our Fresh Fruit Bunches (FFB)
plantation area to 43,400 hectares, a 1,163 hectares          production saw an increase of 4.8% to 881,051 tons in
increase from 2022. Including plasma and partnership          2023, with an average output of 20.3 tons per hectare.
schemes, our total planted area slightly decreased            This growth was driven by additional newly mature
to 53,521 hectares due to the allocation of replanted         declarations in plantations Southwest Papua and GSB, as
areas located within the riparian river boundary as           well as the replanted areas in SMM and ANJA. Our yield
conservation areas in SMM and ANJA. Our focus on the          enhancement projects, including increased compost use
replanting program at SMM and ANJA estates has been           and pollination innovations, helped offset production
instrumental in maintaining a balanced palm oil age           losses from replanting. Additionally, we employ the use
profile to support our output and future growth, with an      of high-yield seeds in replanting areas to secure higher
average palm oil age of 13.0 years as of December 31,         production outputs.
2023.


Table 06. Comparison of Actual Performance Against Target 2023 (POJK51-F.2)


                                                      Target 2023          Realization 2023       % of Achivement
Palm oil production (metric tons)
FFB production                                             917,017                881,051                 96.1%
FFB purchase                                               568,492                503,811                 88.6%
CPO production                                             310,657                283,659                 91.3%
PK production                                               62,757                 52,432                 83.5%
PKO production                                               1,768                  1,459                 82.5%
Sago starch production (metric tons)                         3,970                  1,896                 47.8%
Edamame production (metric tons)
Fresh edamame production                                     2,040                  1,710                 83.8%
Frozen edamame production                                    2,747                   553                  20.1%
Frozen mukimame production                                     94                    201                 213.8%
Renewable energy production (kWh)                      9,113,211               10,219,453                112.1%
CPO sales (metric tons)                                    319,077               288,941                  90.6%
PK sales (metric tons)                                      58,171                 52,581                 90.4%
Revenue (million USD)                                        258.1                  236.5                 91.6%
Gross profit (million USD)                                    48.9                   31.6                 64.6%
Income before tax (million USD)                               15.3                    9.6                 62.5%
Net profit for the year (million USD)                          4.2                    1.9                 45.5%



Apart from the objective to maintain mill utilization         Overall, we recorded a 2.9% increase in CPO production
rates and support local farmers, we had to lower FFB          up to 283,659 tons in 2023. During the year 2023, there
purchases from outside suppliers by 6.4%, with a total        was a notable rise in sales volume, reaching 288,941
purchase of 503,811 tons in 2023. This was mainly due to      tons, which represents an increase of 4.9% from the
road access restrictions at ANJA in Q1 2023 by the local      sales volume recorded in 2022, which was 275,320 tons.
government, as well as fierce price competition from the      Alongside the increase in sales volume, the revenue
newly emerging mills without plantations (“independent        generated from CPO sales in 2023 amounted to an
mills”). The road access restriction was lifted in April      impressive USD 211.9 million. Despite price fluctuations,
2023 and we have since resumed the external FFB               we achieved an average selling price of USD 731 per ton
purchases as usual.                                           in 2023. However, this figure remains lower than the USD
                                                              842 per ton in 2022.




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     Sustainable Palm Oil Production in 2023 (In Tons)
     [POJK51-B.1.D, POJK51-F.2, 13-23-3]

     NUCLEUS

                      2023                                  2022                              2021
                                        tons                                 tons                           tons
            CPO                   187,904             CPO             159,133           CPO          152,792
            PK                        31,939          PK               32,127           PK            32,772

            PKO                        1,459          PKO                   1,052       PKO            1,080

     PLASMA AND PARTNERSHIPS

                      2023                                  2022                              2021
                                        tons                                 tons                           tons
            CPO                       13,307          CPO              20,939           CPO            9,818
            PK                         2,352          PK                    1,975       PK             1,586

            PKO                           0           PKO                      0        PKO                   0

     TOTAL SUSTAINABLE PRODUCT

                      2023                                  2022                              2021
                                        tons                                 tons                           tons
            CPO                   201,212             CPO             180,072           CPO          162,610
            PK                        34,290          PK               34,102           PK            34,358

            PKO                        1,459          PKO                   1,052       PKO            1,080

     TOTAL PRODUCTION

                      2023                                  2022                              2021
                                        tons                                 tons                           tons
            CPO                   283,659             CPO             275,769           CPO          262,683
            PK                        52,432          PK               55,011           PK            51,531

            PKO                        1,459          PKO                   1,052       PKO            1,080

     % SUSTAINABLE PRODUCT

                      2023                                  2022                              2021
                                          %                                    %                              %
            CPO                         71%           CPO                    65%        CPO                 62%
            PK                          65%           PK                     62%        PK                  67%

            PKO                        100%           PKO                   100%        PKO            100%



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In 2023, our production of Palm Kernel (PK) reached           The edamame business continued to record another
52,432 tons, with a 4.4% decrease in sales volume to          positive growth during the year. Production increased
52,581 tons, at an average selling price of USD 358 per       to 2,860 tons in 2023, an increase of 12.9% compared to
ton. Additionally, our production of Crude Palm Kernel        2,533 tons in 2022. This was mainly due to the increase in
Oil (CPKO) from the Kernel Crushing Plant (KCP) in            plantation area in 2023 of 531 hectares compared to 429
Southwest Papua increased to 1,459 tons, with sales of        hectares in 2022. However, our edamame plantations
1,049 tons, generating USD 0.8 million in sales income at     faced outbreaks of pests in the second half of 2023,
an average price of USD 734 per ton. Palm oil remained        which was intensified by drought-like conditions in the
our core business, contributing USD 233.1 million, or         third quarter, brought on by the El Niño. This resulted
98.6% of total revenue, in 2023, with a gross profit of USD   in a frozen edamame production of 553 tons in 2023,
37.9 million and a profit before tax of USD 18.9 million.     representing a total achievement of 20.1% compared
                                                              to our target of 2,747 tons. In response to this issue, we
In our sago segment, we focus on promoting cost               decided to sell most of our product as fresh edamame
efficiency, which led us to scale down the mill operation     and mukimame (peeled edamame) to minimize waste
to one shift per day in 2023. This resulted in a reduction    and reject volume.
in total tual processed from 356,320 tuals in 2022 to
249,598 in 2023. In 2023, we achieved a production of         In 2023, the Company booked a positive sales growth from
1,896 tons of sago starch, realizing 47.8% of our 3,970-      the vegetable segment, largely from the sales of fresh
ton target with an average extraction rate of 7.6% per        edamame and frozen mukimame, which increased by
tual. We saw an improvement in our extraction rate in the     3.0% and 73.1% from 2022, respectively. Fresh edamame
second half of 2023, increasing from 6.9% in July 2023 to     sales volume increased to 1,703 tons, while mukimame
10.1% by December. We recorded our highest extraction         sales volume increased by 111 tons to 192 tons in 2023.
rate of 11.3% in November 2023. This improvement was          In contrast, sales volume from frozen edamame slipped
mainly due to the initiative of our estate team in changing   21.6% to 364 tons in 2023, compared to 464 tons in 2022,
the criteria on selecting sago trees to be harvested as       mainly due to lower production volume due to pests. 2023
well as innovation in our mill to maximize the number         saw a total revenue in the vegetable segment of USD 1.9
of tual processed. We posted a lower sales value from         million, compared to USD 1.7 million in 2022.
our sago business in 2023, due to the unfavorable
sales volume variance along with a lower sago starch          AANE’s electricity generation and sales rose from
production volume compared to 2022. In 2023, we sold a        9,899,429 kWh in 2022 to 10,219,453 kWh in 2023,
total of 1,585 tons of sago starch and focused on selling     representing a positive variance of 12.1% from our
our product in the domestic market by expanding our           budget of 9,113,211 kWh. This was largely attributable
customer base. Meanwhile, our selling price for sago          to major maintenance in the second quarter of 2023
starch was relatively stable throughout the year with         to maximize the utilization rate of the machines. The
average selling price of IDR 8,505 per kg at the end of       service concession revenue remained stable at USD 0.6
2023.                                                         million in 2023, aligning with the fixed tariff of IDR 975/
                                                              kWh.
In 2023, our sago revenue totaled USD 0.9 million,
down from USD 1.6 million in 2022. This decrease was          In 2023, the consolidated revenue stood at USD 236.5
mainly due to technical issues and efforts to minimize        million, marking a 12.1% decrease from the USD
fuel consumption by reducing operational hours. Other         269.2 million reported in 2022. Additionally, the net
operational factors such as equipment maintenance,            profit significantly dropped to USD 1.9 million from the
water quality for the production process and the use of       previous year’s USD 21.2 million. The primary reasons
generators to enhance fuel efficiency also contributed        for this downturn are attributed to lower average selling
to this loss. To overcome these challenges, we have           prices for Crude Palm Oil (CPO), Palm Kernel (PK) and
decided to significantly reduce operations temporarily to     Palm Kernel Oil (PKO). These declines in selling prices
address these issues. Our priority is to ensure that all      were compounded by an increase in depreciation and
operational aspects are optimized to enhance efficiency       interest expenses, which collectively exerted downward
and productivity, with the ultimate goal of reaching our      pressure on the financial performance for the year.
production target.                                            (POJK51-B.1.b, POJK51-B.1.c)




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     Table 07. Direct Economic Value Generated and Distributed (USD) (POJK51-F.3, 201-1)


                        DESCRIPTION                             2023                      2022                     2021

      Economic Value Generated

      Revenue                                               236,511,703                269,166,721             267,383,923

      Dividend income                                           498,784                    640,276                  278,883

      Other income                                            2,559,784                  2,266,459                1,772,121

      Finance income                                            308,523                    471,473                  613,586

      Total Economic Value Generated (A)                   239,878,794                272,544,928              270,048,513

      Economic Value Distributed

      Operating Costs                                       205,441,884                218,788,315             193,882,369

      Employee Wages and Benefits                             7,592,423                  6,151,154                8,928,914

      Payments to Shareholders                                6,239,282                  9,666,022                  928,280

      Payments to Creditors                                   9,651,484                  4,949,142                4,488,131

      Payments to Government                                 11,983,869                 16,655,415               16,478,775

      Community Investments                                   5,901,980                  5,657,875                4,438,612

      Total Economic Value Distributed (B)                 246,810,922                261,867,923              229,145,080

      Economic Value Retained (A-B)                         (6,932,128)                10,677,006                40,903,433




     Total Environmental and Social Expenses in 2023 (in USD) (POJK51-F.3, POJK51-F.4)

                 Total Environmental                      Total Social Expenses             Total Social and Environmental
                 Expenses (USD)                           (USD)                                     Expenses (USD)

                        2023                                  2023                                        2023
                  1,344,322                                720,033                                   2,064,356
                        2022                                  2022                                        2022
                   743,200                                 796,713                                   1,539,913



     Complying to Defined Benefit Plan (201-3)

     We have a post-employment benefit plan for all                    In 2023, we contributed a total of USD 0.1 million to the
     permanent employees in compliance with Indonesian                 employee retirement plan managed by DPLK Manulife,
     Labor Law requirements. The defined benefit plan is               recognizing a post-employment benefits obligation of
     managed through Dana Pensiun Lembaga Keuangan                     USD 13.7 million. To fully meet our post-employment
     (DPLK) Manulife, an insurance company, with the                   benefits obligations, we rely on funds from our
     Company contributing 100% of the benefits. Employee               operational results and support from our equities, as
     contributions nor their consent is not required                   the total obligation represents only 3.2% of our equities.
     as participation is mandatory under government                    We did not receive any financial assistance from the
     regulations. There is no minimum funding requirement              government in 2023. [201-4]
     under the arrangement with DPLK Manulife. The
     Company engages Manulife solely to manage the fund to
     fulfill post-employment obligations to employees.[201-3]




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UPHOLDING BEST PRACTICES IN SUPPLY CHAIN AND
TRACEABILITY (POJK51-B.1.E)




                                                                            A truck collects and transports fresh fruit bunches (FFB)
                                                                                 from smallholder plantations to our mill, facilitating
                                                                                                           efficient production chain.



Suppliers play a crucial role in our value chain and our goal   and biodiversity. The opportunity to supply FFB may
of promoting prosperity in the areas where we operate.          incentivize farmers to clear forests and establish palm
Within our palm oil business, we categorize suppliers           oil plantations. Suppliers may also lack the technical
of oil palm fresh fruit bunches (FFB) into two groups:          knowledge and capacity to implement sustainable palm oil
plasma smallholders and partnership smallholders                practices. Furthermore, smallholder farmers, especially
(kemitraan) which fall under “scheme supplier” and              independent ones, may lack legal titles to the land they
third-party suppliers, namely plantation companies,             cultivate, with their land sometimes located in protected
and cooperatives which we call “independent supplier”.          or forest areas where agricultural activities are illegal.
Over 4,100 farmers and agents are actively engaged in
our value chain, either independently through suppliers         Given the significant social and environmental impacts of
or as part of a cooperative. Additionally, our vegetable        FFB suppliers compared to other suppliers, we consider
business in Jember, East Java, directly collaborates            the activities of FFB suppliers to be material in our
with 58 smallholder farmers who collectively cultivate          operations. Currently, we source FFB from suppliers in
531 hectares of land to supply our business. In our sago        our operations in North Sumatra (ANJA and ANJAS),
business in Southwest Papua, the natural sago forests           West Kalimantan (KAL), and Belitung Island (SMM).
are traditionally owned by eight native family clans, who       Our operations in Southwest Papua (PPM and PMP)
receive compensation for each sago log collected.               are currently validating their plasma scheme with local
                                                                authorities. In 2023, an MoU related to this program
The involvement of smallholder suppliers presents               was signed by all stakeholders, and the establishment
significant long-term economic opportunities for them.          process has since commenced. The plasma agreement
In the case of perennial crops like palm oil, which have        was signed by all parties in January 2024 which marked
a lifecycle of over 25 years, business relationships with       the fulfilment of our plasma obligation in Southwest
fresh fruit bunch (FFB) suppliers can be enduring, lasting      Papua estates.
decades. Our mills and factories regularly purchase
crops from smallholders at fair prices, contributing            Ensuring a stable supply of FFB from these suppliers is
to increased income and reduced poverty in the areas            a priority for us to support our business growth in our
where we operate. This, in turn, indirectly stimulates          communities while minimizing the potential negative
local economic growth and creates job opportunities.            impacts of their activities. Recognizing the critical
                                                                importance of maintaining the entire value chain, we
However, we acknowledge that the operations of our              have implemented programs to empower smallholders
FFB suppliers can have detrimental effects on forests           and established a traceability system.



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                                         EMPOWERING THE COMMUNITY THROUGH PLASMA
                                         PROGRAM IN SOUTHWEST PAPUA
             FEATURE STORY




 uodipis adigendae exerrum quassim voluptat ut voluptiorit fuga. Ut
 simi, adi aut a ne siminvel into iminctum repedi ditaeped magnimo
ptae nulpa cores




                                                                                                    Our staff engaged with local communities around our
                                                                                                  concession area in Southwest Papua to raise awareness
                                                                                                                                  of the plasma program.



                                        Palm oil has long played a pivotal role in            agricultural value chain. This strategy not only
                                        Indonesia’s economic landscape. However, with         creates employment opportunities but also
                                        this growth came environmental and social             fosters entrepreneurship and enhances skill
                                        challenges. ANJ recognized the need to balance        development among community members.
                                        economic development with responsible land            The program’s inception was initially guided
                                        use and community empowerment, thus the               by regulations requiring land allocation (20%
                                        birth of ANJ’s plasma program in Southwest            of total land) to the community as part of the
                                        Papua under PMP and PPM in 2023.                      HGU (Hak Guna Usaha/Right to Cultivate)
                                                                                              acquisition process. ANJ has transformed this
                                        This program exemplifies an advanced integration      obligation into a pioneering partnership model,
                                        of sustainable agriculture with community             encouraging former hunters and gatherers to
                                        empowerment, highlighted by a strong                  become integral parts of the palm oil business
                                        commitment to environmental stewardship and           ecosystem. Despite the high operational costs
                                        local economic development.                           due to Papua’s challenging natural conditions,
                                                                                              infrastructure and human resources, ANJ
                                        Under this model, the program partners with           has shown resilience and commitment. The
                                        local farmers and cooperatives, granting              partnership includes two corporations and
                                        them access to a financing scheme from the            two cooperatives, where members, primarily
                                        company. Such an arrangement ensures that             CPCL (Calon Petani, Calon Lahan/Plantation
                                        the plasma plantation land remains owned by           Implementers),      are    supported    through
                                        the plasma cooperatives, while still benefiting       infrastructure development, seedling provision,
                                        from the company’s financial support. By taking       training, and interest-free loans with a grace
                                        this approach, the Company is empowering              period of a maximum 11 years. The model
                                        individuals to become active participants in the      demonstrates a balance between regulatory




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                                                                                                       2023 Sustainability Report




compliance and mutual concessions, ensuring both              Regency Government in Southwest Papua expresses
parties gain reciprocal advantages and undertake              its appreciation to ANJ for its strong commitment to
shared risks, even if these benefits materialize over a       running the palm oil plasma program in our region.
more extended timeframe.                                      This program is a meaningful initiative, not only in
                                                              enhancing sustainable palm oil production but also in
The initiative’s backbone is its declared commitment          helping improve the local community’s welfare. ANJ
to allocate 1,618 hectares for the plasma program,            also provides training, guidance, and access to the
a strategic move to involve various stakeholders,             latest technology for palm oil farmers, enabling them
including local governments of South Sorong and an            to increase productivity and the quality of their harvests.
adjacent district, in a unified effort towards sustainable    This, in turn, has opened new economic opportunities and
development. The plasma program includes government-          strengthened the economic resilience of the community
regulated schemes, partnerships with communities              amidst existing challenges. We hope this initiative can
wanting to become MMS (Mitra Masyarakat Sekitar/              continue to grow and inspire other companies to invest
Surrounding Community) partners, and independent              in community and environmental development in South
suppliers, presenting a multifaceted approach to              Sorong Regency, Southwest Papua.”
community engagement and empowerment.
                                                              As the program moves forward, it faces ongoing
Building partnerships in Papua faces significant              challenges, including the local community’s inclination
challenges, including the high costs and complex              towards immediate gratification, a trait rooted in their
logistics. Nonetheless, ANJ remains dedicated,                hunting and gathering culture. This stands in contrast
impacting 268 households in PPM (spanning 32 clans            to the nature of palm oil cultivation, which requires a
across three villages, covering over 715 hectares) and 94     long-term investment perspective and offers returns
households in PMP (across 17 clans and three villages,        over an extended timeline. Despite such complexity, the
covering over 902 hectares). The plasma program has           foundation laid by ANJ’s plasma program in Southwest
not only provided economic benefits but also facilitated      Papua offers promising prospects for sustainable
access to healthcare and education - essential services       agricultural practices, economic empowerment and
that underpin the growth and development of the               community resilience.
community.
                                                              This initiative stands as evidence of ANJ’s dedication to
The plasma cooperatives are also being allocated              achieving inclusive growth and sustainable development,
an allowance of IDR 720,000 per hectare per year to           setting a best practice in investing in community and
encourage members to focus exclusively on palm                environmental development in South Sorong and beyond.
oil cultivation, and not divert their efforts into other
ventures. Furthermore, the allowance is integrated into
the financing strategy to motivate farmers fostering
patience and perseverance while they anticipate the
results of their business. Through this, the program
hopes to bolster the palm oil sector’s productivity and, in
the end, sustainability.

In terms of social impact, the palm oil plasma
program has strengthened a sense of ownership
and empowerment among community members. By
involving locals in decision-making processes and
prioritizing their needs and aspirations, companies have
forged strong partnerships based on mutual respect
and collaboration. This has not only strengthened social
cohesion but has also instilled a sense of pride and
belonging within communities.

The initiative has been well-received and acknowledged
by the South Sorong Regency of Southwest Papua
government as a positive example of collaboration.

Assistant II for Economic & Development Affairs,
Mr. Johan Hendrik Kokorule, SE, from the South
Sorong Regency Government, said “The South Sorong                                 Mr. Johan Hendrik Kokorule, SE, Assistant II for
                                                                          Economic & Development Affairs, South Sorong Regency,
                                                                                                              Southwest Papua.



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     Advancing Effective Approaches in                            Our programs aim to assist smallholders in enhancing
     Smallholder Empowerment Program                              their productivity and crop quality, which will benefit
                                                                  our business. Simultaneously, these efforts help avoid
     We mandate that our FFB suppliers meet rigorous              potential environmental and social issues, which are
     technical, financial, administrative and legal criteria      crucial for sustainable development. Through our
     to ensure sourcing does not occur from forest areas.         programs, we are confident that all our FFB suppliers,
     Additionally, suppliers must adhere to environmental,        including independent smallholders, will be able to
     social, health and safety and quality standards outlined     comply with our sustainable palm oil policy by 2030.
     in our Sustainability Policy and commit to our code of       We collaborate with government authorities to support
     conduct by signing an Integrity Pledge. Both existing        independent smallholders in clarifying or resolving their
     and potential suppliers undergo thorough screening           land legality issues, aiming to assist them in complying
     processes, with regular evaluations conducted for            with future land legality enforcement by the government
     existing suppliers. Moreover, the performance of             and requirements set by our buyers.
     significant FFB suppliers is benchmarked against the
     standards and commitments of the RSPO and our                In January 2023, KAL signed an MoU with USAID
     Sustainability Policy. Notably, in 2023, no new or current   SEGAR to support independent farmers within KAL’s
     suppliers were terminated due to failure to comply with      supply chain in Ketapang, West Kalimantan, through
     social and environmental obligations. However, during        certification activities to meet sustainability standards,
     the same period, we acknowledge that several suppliers       improving capacity, and developing farmer institutions.
     encountered challenges in meeting these standards.           USAID SEGAR is a collaborative initiative between The
     Consequently, we provided close supervision and actively     United States Agency for International Development
     advocated for their improvement to ensure they meet the      (USAID) and the National Development Planning
     required criteria. [308-1, 308-2, 414-1, 414-2]              Agency (Bappenas) of the Republic of Indonesia. This
                                                                  program is specifically designed to support Indonesia’s
     We recognize that our stringent sustainability criteria      ambitious development goals. It focuses on creating a
     and standards may be challenging for our smallholder         harmonious balance between conserving the country’s
     suppliers to meet without assistance. Therefore, we          rich biodiversity and promoting sustainable practices
     are committed to not enforcing compliance abruptly           in land use. Simultaneously, USAID SEGAR aims to
     or applying a “no purchase” policy without considering       integrate these environmental efforts with strategies
     the potentially severe impact on their livelihoods.          that ensure economic growth and development of
     However, this does not mean we will compromise on            inclusive livelihoods for its people. This partnership
     our standards when purchasing from them. Instead, our        will be implemented in the villages of Laman Satong,
     approach is to provide capacity-building programs for        Kuala Satong, Kuala Tolak, Matan Hilir Utara District,
     farmers, encouraging them to adopt best practices in         and Simpang Toga Sambelangaan Village, Nanga Tayap
     agronomy, and sustainable agriculture principles, and        District, Ketapang Regency.(13-23-4)
     meet traceability standards. We also assist independent
     smallholders in formalizing the legality of their land       Furthermore, we have a certification program where we
     use and obtaining the necessary certificates of land         encourage our suppliers to obtain RSPO certification by
     ownership from authorities. [13-22-1][13-23-4]               meeting RSPO standards in their plantations. Our target
                                                                  is to achieve 100% RSPO Certification of our plasma
     Our smallholder engagement programs are managed by           and partnership cooperatives (excluding independent
     various departments within our organization, including       smallholders) by 2025. While we saw 75% progress last
     the Business Process and Business Development-               year, 2023 marks the completion of our plasma RSPO
     Smallholders Department, the Plasma and Cooperatives         certification project in Belitung Island, meaning that
     Department, the Commercial Department, the                   86% of our 14 plasma and smallholder cooperatives
     Sustainability Compliance Department and the ICT and         with which ANJ works are now RSPO certified. This
     GIS Department. Additionally, we have a cross-functional     certification ensures full traceability by guaranteeing
     task force that coordinates and manages supplier             that there is no mixing with external Fresh Fruit Bunches
     engagement activities to meet our targets. In 2023, we       (FFB). Under this accomplishment, we processed
     conducted 33 socialization programs attended by 479          946,932 tons of RSPO certified FFB, accounting for 69%
     smallholder farmers and related stakeholders. Despite        of our overall FFB processed volume. This attainment
     a decrease in the number of meetups compared to last         highlights the cooperatives’ commitment to maintaining
     year, we have implemented a more efficient socialization     the purity and traceability of their produce, setting a
     program by organizing larger group meetings instead of       benchmark for sustainable and responsible agricultural
     individual sessions. This approach enables us to reach a     practices. In addition, suppliers that have obtained RSPO
     greater number of farmers effectively. Furthermore, we       certification may obtain premiums from sustainable FFB,
     invited farmers to join social media groups we developed     a testament to the value placed on sustainable farming
     called “BESTARI” to provide regular knowledge, support       practices. These premiums are then redistributed
     and educational information. All of these efforts are        to farmers, ensuring that the benefits of sustainable
     implemented to achieve our goal so at least 90% of all       cultivation are shared across the community. In 2023,
     our smallholders adopt sustainable palm oil practices by     8 out of 14 suppliers, representing 57%, were able to
     2025.                                                        secure a premium price for their products. This scheme
                                                                  highlights ANJ’s commitment to incentivizing sustainable
                                                                  farming practices. (13-23-3, 13-23-4)

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                JOURNEY TOWARD SUSTAINABLE HARVESTS:
                USAID & KAL SPEARHEADING PALM OIL SMALLHOLDER
                EMPOWERMENT IN INDONESIA
FEATURE STORY




                                                                       USAID SEGAR team, KAL Resident Director Jerileva Purba and KAL
                                                                       conservation team, starting a collaboration to promote responsible
                                                                                                                    agricultural practices.


                The collaboration between USAID Sustainable                  The palm oil industry has often been at the
                Environmental Governance Across Regions                      center of debates around environmental
                (SEGAR) and PT Kayung Agro Lestari (KAL) marks               sustainability, with concerns ranging from
                a pivotal moment in the empowerment of palm oil              deforestation to loss of biodiversity. However,
                smallholders in Indonesia. USAID SEGAR, a joint              palm oil remains a vital economic commodity
                effort by The United States Agency for International         for Indonesia, contributing significantly to the
                Development (USAID) and Indonesia’s National                 national economy and the livelihoods of millions
                Development Planning Agency (Bappenas),                      of smallholder farmers. The partnership
                aims to bolster Indonesia’s development goals.               between USAID SEGAR and KAL is a forward-
                The initiative seeks to strike a balance between             looking approach aimed at reconciling economic
                biodiversity conservation and sustainable land               development with environmental sustainability.
                use, while also integrating economic growth and              By focusing on the certification of independent
                inclusive livelihood development strategies.                 smallholders to meet sustainability standards,
                                                                             this collaboration is setting a precedent for
                This important partnership, formalized through a             how companies and development agencies
                memorandum of understanding (MOU) signed on                  can work together to achieve mutual goals of
                January 25, 2023, at the Ketapang Regent’s Hall,             economic empowerment and environmental
                is a testament to the concerted efforts being made           conservation.
                towards sustainable agricultural practices in the
                palm oil sector in the region. With the backing of           The strategic implementation of the program
                the Ketapang District Government, this initiative            targets specific locations namely Laman
                is not just about improving the sustainability               Satong Village, Kuala Satong Village and Kuala
                credentials of KAL’s supply chain but also about             Tolak Village in Matan Hilir Utara Subdistrict, as
                enhancing the livelihoods and environmental                  well as Simpang Tiga Sembelangaan Village in
                stewardship of independent smallholders in                   Nanga Tayap Subdistrict. These areas are pivotal
                Ketapang, West Kalimantan.


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                         in KAL’s supply chain and are representative of the      stability. For KAL and other stakeholders
                         broader challenges and opportunities faced by            in the palm oil supply chain, working with
                         smallholders in the region. The initiative aims to       certified smallholders helps to ensure a
                         provide these farmers with the tools, knowledge,         sustainable and traceable supply of palm oil,
                         and support needed to improve their agricultural         which is increasingly demanded by consumers
                         practices, enhance yields, and meet sustainability       worldwide.
                         standards such as Indonesian Sustainable Palm
 FEATURE STORY

                         Oil (ISPO) certification.                                Moreover, the environmental benefits of
                                                                                  this initiative are significant. Sustainable
                         To ensure smooth execution of this program,              agricultural practices help in the conservation
                         USAID SEGAR has brought on board the Ketapang            of critical ecosystems, reduce the carbon
                         Development Partner (Mitra Pembangunan                   footprint of palm oil production, and ensure
                         Ketapang/MPK) as the implementing partner.               the preservation of biodiversity. By integrating
                         Their responsibilities include facilitating program      environmental, social and governance (ESG)
                         socializations, managing the administrative              principles into their operations, companies like
                         aspects of the Cultivation Registration Certificate      KAL are taking a proactive stance in mitigating
                         (Surat Tanda Daftar Budidaya/STDB) and                   the environmental impacts of their business
                         orchestrating the formation of the palm oil              activities.
                         farmers’ association, the Asosiasi Kelompok
                         Petani Sawit Harapan Matan Bersama (AKSHMB).             The    local   government’s      support,   as
                                                                                  demonstrated      by    the   presence     and
                         As of the end of 2023, fifty-two farmers have            endorsement of the Vice Regent of Ketapang,
                         submitted their proposal for STDB certificates,          H. Farhan, SE, M.Si, during the MoU signing
                         which are undergoing the validation process by           ceremony, underscores the importance of
                         the local government, entering a key phase in the        collaborative efforts in achieving sustainable
                         pilot project.                                           development goals (SDGs). The program aims
                                                                                  to create a model of integration, synergy and
                         Next steps, they will be embarking on a detailed         collaboration among governmental agencies
                         ISPO certification journey, clustered into two           and institutions, NGOs and the private
                         primary phases:                                          sector. Such a holistic approach is essential
                                                                                  for addressing the complex challenges of
                         Firstly, they will build a robust foundation for         sustainable development in the palm oil sector.
                         their groups through comprehensive training,
                         education, and technical support. This stage             The partnership between USAID SEGAR and
                         focuses on instilling sustainability principles,         KAL represents a significant step forward in the
                         imparting best agricultural practices, ensuring          journey towards sustainable palm oil production
                         legal compliance, and enhancing management               in Indonesia. By focusing on the empowerment
                         and organizational skills.                               of independent smallholders, this program not
                                                                                  only aims to improve the sustainability of the
                         Secondly, the certification assessment phase             palm oil supply chain but also enhances the
                         begins, aiming to verify the group’s adherence           socio-economic well-being of farmers and their
                         to the ISPO standards. This involves a sequence          communities. Through strategic collaboration,
                         of steps: an internal audit to review practices,         community engagement and a commitment
                         a proposal for certification audit to assess             to environmental stewardship, this initiative
                         readiness, the actual certification audit to evaluate    is paving the way for a more sustainable and
                         compliance and any necessary corrective actions          equitable palm oil industry. As the program
                         derived from these audits. Upon successfully             unfolds, it will serve as a benchmark for
                         navigating these stages, the farmer groups will          similar initiatives globally, demonstrating the
                         earn their designation as ISPO-certified farmers.        power of partnership in achieving sustainable
                                                                                  development.
                         The potential economic benefits of this program
                         are multifaceted. For smallholders, achieving
                         certification can open new markets, improve
                         crop quality and yield, and increase income




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Pioneering Progress to Improve                                      A worker scanning the EPMS (Electronic Plantation Mobile Solution)
                                                                    card using application developed by our internal programmer team.
Plantation Traceability
We are dedicated to maintaining full supply chain traceability   encompasses the entire process in the fields, from land
to the plantation level, aligning with RSPO requirements         and farmer selection, land preparation, planting, plant
and our Sustainability Policy. Our traceability efforts aim      maintenance, harvesting, to shipping. Recently, SIGAP has
to establish a reliable system for acquiring, processing and     been expanded to include factory processes, from receiving
transparently publishing data, thereby fostering trust among     harvests, sorting, blanching, to IQF (Individual Quick
our supply chain stakeholders. By the end of 2025, we aim        Freezing) processes, as well as sanitation (in locker areas).
to achieve over 99 percent traceability of third-party FFB.      Going forward, SIGAP will be developed to cover up to the
Currently, we have successfully achieved a 100% traceability     packaging and delivery of the final product.
rate for Fresh Fruit Bunches (FFB) supplied by third parties.
Despite this success, we are not complacent and continue         The use of this technology enables the GMIT team to more
to carry out assessments for ongoing improvement. Our            easily establish partnerships with farmers and ensures a
commitment extends to improving the quality of the data in       strong traceability system to monitor the quality and safety
our system, safeguarding against various risks, including        of the produced products. [13-22-1, 13-23-1]
the possibility of fraud and data manipulation of FFB, which
not only undermines the integrity of supply chains but           Overall, our stakeholders, including farmers, agents and
also poses significant risks to the company’s commitment         suppliers, actively participate in our traceability program
to environmental stewardship and ethical practices.              and corporate sourcing policy through various official and
(13-23-1, 13-23-2)                                               informal socialization events. This community engagement
                                                                 ensures they understand the importance of providing
As part of our digital transformation program, we developed      reliable traceability data. We invest heavily in engaging
an electronic traceability system, eTIS, to enable real-time     with our FFB supply chain at all levels, although these
recording and data entry. This system assists our third-party    activities are challenging due to the dispersed nature of
FFB vendors to collect, report, and troubleshoot traceability    our independent suppliers across our operations, often in
data. In 2022, we successfully deployed the eTIS system in       areas with limited access. Hence, we see an opportunity to
all our palm oil operations and by 2023 all FFB suppliers        leverage information technology and social media to more
had adopted the system. The eTIS system is expected to           efficiently engage with smallholder farmers.
help suppliers complete administrative paperwork for
traceability, which is a key challenge in achieving 100%         Management receives traceability rate reports once every
traceability in some regions.                                    month and supplier engagement achievement reports every
                                                                 three months. Furthermore, our traceability data undergoes
Another milestone in our digital transformation is the           annual internal audits and external audits every two years
initiation of SIGAP (Sistem Informasi GMIT untuk Agrikultura     as part of the RSPO certification system. These regular
dan Pabrik), specifically designed to support agricultural       reports offer management insight into any issues, ensuring
operations and the processing of frozen edamame or okra,         they are addressed promptly as soon as any urgency arises.




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     UPHOLDING HIGHEST COMMITMENTS
     TO CUSTOMER EXCELLENCE

     While our core business focuses on palm oil, we also
     produce and market consumer products, namely
     edamame and sago. Within this context, ANJ holds a
     steadfast commitment to its customers, ensuring that
     every aspect of its product and service delivery upholds the
     highest standards of quality and integrity. This dedication
     is rooted in several key areas, as outlined below:

     1. Commitment to Providing Equivalent Service
        for Products to Costumers: ANJ pledges to offer
        consistent and equitable services across its product
        and service range. This commitment ensures that
        all customers receive the same level of quality and
        attention, reaffirming ANJ’s dedication to fairness
        and customers’ satisfaction. (POJK51-F.17)
     2. Products Evaluated for Customer Safety: A cornerstone
        of ANJ’s customer commitment is the assurance
        that all products have been rigorously evaluated for
        safety and health standards. This evaluation process
        guarantees that ANJ only markets products proven
        to be safe, thereby protecting costumers’ well-being
        and fostering trust in the ANJ brand. Additionally,
        ANJ discloses important information related to the
        products we sell including nutritional facts, potential
        allergens, and disclaimers regarding the non-use of
        preservatives and colorant agents. This transparency
        allows customers to make informed decisions,
        highlighting ANJ's dedication to honesty and ethical
        business practices. (POJK51-F.27, POJK51-F.28)
     3. Number of Products Recalled: In the interest
        of transparency, ANJ reports that no products
        were recalled in the year 2023. This achievement
        underscores ANJ’s commitment to quality control
        and product reliability, further building customers’
        confidence in the ANJ brand. (POJK51-F.29)
     4. Customer Satisfaction Survey: ANJ regularly
        conducts customer satisfaction surveys to gather
        feedback and insights directly from its customers.
        These surveys are a critical tool for continuous
        improvement, allowing ANJ to align its products more
        closely with customers’ needs and preferences. In
        the 2023 surveys, we observed that customers raised
        no complaints about ANJ products. (POJK51-F.30)

     Through these commitments, ANJ demonstrates its
     unwavering dedication to not only meeting but exceeding
     customers’ expectations. This approach not only fosters
     a strong relationship with customers but also positions
     ANJ as a responsible and trustworthy brand in the
                                                                              Our laboratory staff doing quality testing of
     marketplace.                                                             CPO sample produced by our palm oil mill.




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FOSTERING COMMUNITY PROSPERITY
AND WELL-BEING (POJK51-B.3, POJK51-F.23, POJK51-F.25)


                                  Central to our approach is the establishment of local
                                  partnerships and opportunities that amplify the
                                  positive impacts of our economic activities. We believe
                                  that inclusive growth is essential, ensuring that local
AT THE HEART OF OUR               communities are not left behind in the pursuit of
                                  economic progress.
MISSION LIES A STEADFAST
COMMITMENT TO ENSURING            Our efforts to enhance community well-being encompass
                                  a range of initiatives, including health, education and
THAT EVERY INDIVIDUAL             socio-economic empowerment programs, as well as
WITHIN THE COMMUNITIES            infrastructure development and support for social,
                                  cultural, and religious projects. Most of our programs are
NEIGHBORING OUR                   led and executed directly by our employee as part of our
OPERATIONS HAS EQUITABLE          Responsible Development program. Local governments
                                  and community groups, such as farmers and artisans,
ACCESS TO OPPORTUNITIES           are actively engaged in these programs, ensuring their
FOR PROSPERITY. ALIGNED           relevance and effectiveness within the community. We
                                  have ensured the full implementation of community
WITH THE UNITED NATIONS           development and engagement initiatives across every
SUSTAINABLE DEVELOPMENT           one of our operational sites, achieving a comprehensive
                                  reach and impact. (413-1)
GOALS (SDGS), OUR
RESPONSIBLE DEVELOPMENT           Recognizing that the presence of a modern corporation
                                  in remote areas can catalyze socio-economic change,
AGENDA PLACES A STRONG            we are mindful of the potential negative consequences
EMPHASIS ON FOSTERING             that such changes may bring, including the risk of
                                  marginalizing communities lacking the skills and
ECONOMIC OPPORTUNITIES            technical expertise needed to thrive in a modern
AS A CORNERSTONE FOR              economy. To address this, we place a strong emphasis
                                  on local community empowerment programs, aiming to
SUSTAINABLE GROWTH AND            equip individuals with the necessary tools and knowledge
COMMUNITY WELL-BEING."            to participate meaningfully in economic activities and
                                  benefit from growth opportunities. (203-2)

                                  Our businesses have always been designed to stimulate
                                  economic growth in rural and impoverished areas
                                  across our operating region, particularly in Southwest
                                  Papua, which has one of the lowest Human Development
                                  Indexes in the country according to Statistics Indonesia.
                                  We achieve this by creating economic opportunities
                                  for contractors, local enterprises, cooperatives and
                                  individuals, including the provision of goods and services
                                  to our organization and employees. Additionally, our
                                  operations create direct employment opportunities
                                  throughout our supply and distribution chains, further
                                  contributing to local economic development.

                                  We are deeply committed to enhancing the well-being
                                  of the communities we serve. Recognizing the limited




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     Our resident doctor and medical staff regularly conduct medical
     examination for employees.




     access to essential services in remote areas, we are              and bridges, to increase accessibility for local residents.
     dedicated to establishing a network of seven main clinics         We also improved community access to clean water by
     and five minor support clinics. These facilities, managed         installing water pumps, which also benefit local hygiene
     by qualified medical professionals, including doctors,            and sanitation. Additionally, we also help to build public
     nurses and midwives, are integrated into the National             facilities such as village offices to facilitate improved
     Health Insurance (Jaminan Kesehatan Nasional/JKN)                 communication within the community.
     network and are equipped with blood lab facilities.
     This advancement has improved our capacity to deliver             ANJ’s social innovation programs play a crucial role in the
     comprehensive healthcare services to our People.                  context of the PROPER award in Indonesia, demonstrating
     (203-2)                                                           the Company’s efforts to go beyond mere compliance
                                                                       with environmental regulations. These programs
     Access to education is also a matter of concern, thus             showcase a commitment to sustainable practices and
     becoming a key focus for ANJ, as it is a fundamental              community engagement, reflecting ANJ’s proactive
     right of the people and a cornerstone for community               approach to environmental and social responsibility, as
     development. We have established various initiatives in           well as maintaining positive stakeholder relationships.
     this aspect, including the construction and maintenance           In this context, KAL and ANJAS have both achieved the
     of schools, the provision of educational materials and            Green PROPER awards consecutively in 2022 and 2023.
     resources, and support for teacher training programs.             Equally gratifying, SMM sustained the Gold PROPER
     By investing in education, we aim to empower individuals          awards for the last four consecutive years, while ANJA
     and communities, enabling them to break the cycle                 for three consecutive years - setting a high standard
     of poverty and contribute to overall socio-economic               for the industry as being the only palm oil company in
     development. Through these efforts, we strive to make             Indonesia to have received such achievement.
     a meaningful contribution and lasting impact on the
     lives of those living in remote and underserved areas in          Certainly, our dedication to community development
     proximity to our operations.                                      shows our support for creating lasting positive impacts
                                                                       that extends beyond mere economic prosperity.
     ANJ recognizes the vital role of infrastructure in
     supporting our community-based initiatives. Throughout
     2023, we have contributed to the construction of roads



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Table 08. Significant Infrastructure and Services Investments (203-1)

       Item          Location                         Description                                        Impact

 Infrastructure
                                  Construction of lean concrete roads in
                                  Simangambat and Huristak District, encompassing
                                  the area around Binanga, North Sumatra,
                                  consisting of a 62 km-long road project with
 Road                             an investment of IDR 8.54 billion. The road
                                                                                         Enhancing accessibility, facilitating
 Construction                     construction commenced in 2013 and is ongoing.
                                                                                         economic activities, and benefiting
 (Pro bono)
                       ANJA                                                              local communities in the villages of
                                  In 2023, there were an additional 566 meters of
                                                                                         Simangambat and Huristak (49,100
 Road Repair                      road construction for the Simangambat-Bragas
                                                                                         people).
 (Commercial)                     roads (turning dirt road into an asphalt road), with
                                  a total investment of IDR 1.5 billion. Additionally,
                                  road repair for an existing road in Simangambat
                                  and Huristak were also completed, amounting to
                                  IDR 139 million, covering 25 km of roads.
                                  Construction of a 4x6 meters H-Beam Bridge on
                                  Simangambat to Bragas Cross Road was carried           The bridge serves as the main access
                                  out in 2023 with an investment value of                to facilitate the economic activities of
 Construction of
                                  IDR 250 million. (ANJA)                                the community, such as transporting
 H-Beam Bridge      ANJA, ANJAS
                                  In addition, ANJ conducted the construction of 10      goods and services or agricultural
 (Commercial)
                                  and 9 meters of H-beam bridges in Somel and            products to Padang Sidempuan and
                                  Gua Asom areas with a total investment of IDR 474      ANJAS for palm fruit delivery.
                                  million
                                  Installation of a 17-meter gabion in Janji Matogu,
                                  with a total investment of IDR 469 million, began in   Improving transportation access,
 Gabion or                        2022 and continued to 2023.                            facilitating economic activities, and
 Bronjong                                                                                easing the transportation of palm fruit
                      ANJAS
 Installation                     A 6-meter sediment transport facility near Janji       bunches (FFB) and other necessities
 (Commercial)                     Matogu, with a total investment of IDR 58.5 million,   from Janji Matogu to Padang
                                  also began in 2022 and completed by 2023.              Sidempuan.


                                  The casting of concrete roads in Janji Matogu, 215
                                  meters long with a total investment of IDR 860
                                  million started in 2022 and continued throughout
                                  2023.
                                                                                         Improve access for local communities
 Concrete Casting
                      ANJAS                                                              and transport of palm fruit to
 (Commercial)                     In 2023, a concrete road casting was carried out
                                                                                         factories.
                                  over 325 meters from the Industrial Plantation
                                  Forest (HTI) to the Gua Asom with an investment
                                  value of IDR 1.1 billion.


 Establishment
                                  Construction of the Laman Satong Village Office        Improving public facilities and
 of Laman Satong
                       KAL        was carried out in 2023 with an investment value       providing venues for community
 Village Office
                                  of IDR 100 million.                                    activities.
 (In-Kind)


 Field Drainage
                                  Repairs of the 605-meter embankment at Lorong          Water management and avoiding
 and Maintenance
                      ANJAS       4, Janji Matogu Village, with an investment value of   flood-prone areas in the surrounding
 of Durian River
                                  IDR 85.5 million.                                      communities.
 (Pro bono)



                                  Construction and maintenance of bridges and
 The building and
                                  roads, waterway access, and laterite roads with
 maintenance
                                  culverts of the Durian River, Kuala Satong Village,
 of bridges,
                                  were carried out with a total investment of IDR
 waterway                                                                                Improving access for local
                       KAL        285.1 million, and the Cuti Parit Road in Satong-
 access and                                                                              communities and avoiding flooding.
                                  Manjau amounted to IDR 19.1 million.
 laterite roads
 with culverts                    Also in 2023, repairs to Marsela Road in Kepayang
 (Pro bono)                       Hamlet, Laman Satong Village, were undertaken
                                  with an investment value of IDR 215 million.



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               Item                      Location                                           Description                                Impact


                                                                                                                       Improving access for people and
      Road                                                     Laterization and road elevation in 2023 in PPM
                                                                                                                       economic activity in the surrounding
      Construction                     PPM, PMP                amounted to IDR 30 million and PMP IDR 25
                                                                                                                       vicinity, which was previously
      (In-Kind)                                                million.
                                                                                                                       inaccessible.



                                                               Procurement of clean water sources through
      Construction of                                                                                                  Providing clean water access to
                                                               the construction of boreholes and wells for Kais
      Boreholes and                         PPM                                                                        communities to enhance sanitation
                                                               Village and Suse Village, Kais District, each with 2
      Wells (In-Kind)                                                                                                  and hygiene.
                                                               units, with a total investment of IDR 40 million.



      Bridge                                                   Construction of a bridge to connect the community       Providing better mobility for the Saga
      Construction                        ANJAP                road in Kawarisi, with a total investment of IDR 120    community, enhancing human activity
      (In-Kind)                                                million, spanning 18.6 meters.                          and the local economy.


      Services


                                                               In 2023, the PAUD Program in Sumano, Benawa
                                                                                                                       Providing access to education to
      Early Childhood                                          and Puragi Villages provided teacher training,
                                                                                                                       local communities. Preparing and
      Education                             PMP                curriculum development and learning support
                                                                                                                       developing non-local and local
      (PAUD)                                                   activities with a total investment of
                                                                                                                       teachers with the skills to teach.
                                                               IDR 325 million.



                                                                                                                       Improving the local economy. This
                                                               Provide the easiest and safest way for our              access to financial
                                                               employees and local communities to save and             services empowers people to improve
      Cooperative &
                                                               transfer money. This service started in 2019.           the management of family finances.
      Convenience                      PPM, PMP
                                                                                                                       The convenience store provides
      Store
                                                               In 2023, PPM opened another branch store inside a       people with necessities and is very
                                                               Housing Compound.                                       helpful due to the limited accessibility
                                                                                                                       of the plantation to outside shops.


                                                               Advocate Kelompok Tani Peduli Api, smallholder
                                                               farmer fire-fighting groups that run a fire             Local communities are actively
      Firefighting                                             prevention and management initiative. In 2023, a        involved in fire prevention and
                                      KAL, ANJAS
      group                                                    similar program has been expanded to ANJAS –            management.
                                                               involving 3 groups in KAL with 45 members and 1
                                                               group in ANJAS with 15 people.

                                                               Provision of health services in Sumano, Benawa I
                                                               started in 2016.
                                                                                                                       Provide health services to both
                                                               In 2023, PPM inaugurated a Primary Clinic
      Health Clinics                   PMP, PPM                                                                        employees and local communities
                                                               providing various health services including
                                                                                                                       serving 4 villages.
                                                               general practitioner consultations, routine health
                                                               check-ups, health services and preventive health
                                                               programs.
      Note:
      1. Commercial infrastructure engagements are investments made primarily for the Company’s business operations.
      2. In-kind contributions are non-cash contributions of goods or services.
      3. Pro bono services are professional services provided without payment.




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The floating rice fields are a collaborative
innovation between the SMM team and local
farmers in East Belitung




Committing to Transformative Community                          SMM also advocates community-based freshwater
Development [203-2]                                             aquaculture, benefiting 36 members of the Mina Jaya
                                                                Pokdakan, Aik Kik Apau Pokdakan and Ala Mamy
Socio-economic empowerment                                      MSME Group. Supported by the East Belitung Fisheries
                                                                Service, the program assists with aquaculture activities,
Our Belitung subsidiary, SMM, has been at the forefront         and water quality monitoring and provides training in
of innovation in agriculture, particularly with the             fish product processing and packaging. Participants
introduction of floating rice fields using the jajar legowo     have been trained in freshwater fish farming and the
planting technique. This technique, which involves              use of eco-enzymes for pond water filtration. A total of
separating each row of planted rice with empty rows to          6,307.2 kg of catfish and 816.6 kg of tilapia were sold in
boost yields, has been groundbreaking for local farmers,        2023, increasing the farmers’ income substantially. The
allowing them to utilize previously marginal land due to        farmers also enhanced their skills by cultivating fish
flooding. Additionally, this program also introduced light      fingerlings themselves, eliminating the need to purchase
solar traps to combat insect pests and Eco-enzymes as           them. To maximize land use, members of the community
an alternative organic and eco-friendly fertilizer.             group also cultivate green vegetables and coconuts
                                                                around the ponds, further promoting food security in the
The program continued in 2023, drawing special                  area.
attention and support from the East Belitung Regency.
Starting as a trial project in Balok Village in 2020, it        Overall, this program, which is called “Koalisi Pemenang",
has now expanded to include Jangkang and Dendang                has played a significant role in helping communities in
Villages. This success has motivated farmer groups to           East Belitung access basic commodities more affordably,
adopt a “Mina Padi” system, an agricultural practice that       especially considering the high prices of essentials
combines rice farming with fish farming. The farmers            in the region. More importantly, the local people of
opted to cultivate tilapia fish, and in its second year, they   Belitung traditionally work as tin miners and pepper
have successfully raised as many as 1,200 tilapias. To          farmers rather than in agriculture. Thus, this program
maximize land productivity, cassava is planted along the        has provided them with the opportunity to cultivate
rice raft border, producing an additional food source for       their food and produce, including vegetables and staple
the farmers. The 27 farmers involved in this program            crops, and diversify employment opportunities. This
have produced a total of 565.1 kg of vegetables, 340.3          initiative brings tangible benefits to the local community
kg of chili, and 900 kg of rice, which is a significant         by enhancing food self-sufficiency and reducing
achievement in improving the community’s economy.               dependency on external sources for sustenance. In




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     addition to increasing community income, this program         availability and reducing food disparities, especially
     also assists in preventing stunting in Jangkang Village,      among vulnerable groups like elderly women and widows.
     Dendang District.                                             The project focuses on the cultivation of broiler chickens
                                                                   and catfish as well as the production of alternative feed
     Based on the most recent assessment by an independent         to support farming. A total of 21 individuals from two
     assessor, the ‘Koalisi Pemenang’ program has achieved         farming groups have participated in this project since its
     a Social Return on Investment (SROI) value of 2.74. This      establishment in 2020.
     means that for every IDR 1 invested, there is a benefit
     or impact value of IDR 2.74. The study also indicates         Overall, the project has successfully utilized
     that the SROI value per year from 2020 to 2023 is             unproductive land covering 0.8 hectares. More than 700
     steadily increasing. This growth is attributed to the         chickens and 1,430 catfish were sold from the harvest
     expansion of the program’s reach through replication of       in September 2023 alone. This program has improved
     best practices in other areas, as well as the enhanced        the food security of the community by providing catfish
     productivity of freshwater fish cultivation and price-        and chicken for Huta Baru Village and Tobing Jae Village,
     stable crop cultivation by the community groups. Despite      as well as enhancing the welfare and capacity of the
     a decrease in program investment value, the increase in       communities in these villages to adapt to climate change
     SROI value can be sustained as the Company gradually          for sustainable living. This initiative also stands as a
     reduces interventions to promote the self-reliance of the     pioneering effort in community empowerment, being
     community.                                                    the first to install environmentally friendly solar cells
                                                                   for power generation and to produce alternative feed
     SMM also initiated the “Gerbang Emas” program,                from palm shoot materials. Moreover, this program also
     focusing on cultivating edamame in East Belitung, which       implements the concept of zero waste, where chicken
     has also seen rapid development since its inception.          manure is processed into compost and used for small-
     Research on the land conducted since 2019 has increased       scale corn cultivation. A total of two tons of chicken
     plant capacity in 2023. There has been an expansion of        manure has been turned into compost and applied to
     planting areas in the Subur Jaya Farmer Group by 0.15         plants. The corn produced is then used as raw material
     hectares, the Pelita Bumi Raya Farmer Group by 0.10           for alternative fish and chicken feed. Additionally, this
     hectares in Balok Village, and the Tuah Berkarya Farmer       program also successfully managed fishpond wastewater
     Group by 0.06 hectares. A total of 3,210 kg of edamame        to be reused as fishpond water using the Recirculating
     has been produced within the “Gerbang Emas” program.          Aquaculture System (RAS) method with water filters.
     The program also provides innovation in alternative           By the end of 2023, the total volume of recycled catfish
     cattle feed by utilizing the remaining stems and leaves       pond wastewater reached 230.4 m3. Exercising a holistic
     of edamame.                                                   approach in its design, the program achieved an SROI of
                                                                   2.16. This means that for each IDR 1 investment, there
     ANJA, located in Binanga, North Sumatra, continues to         is a benefit or impact value of IDR 2.16, leading us to
     expand its “Tani Mandiri” program. In 2021, the focus         receive the Gold PROPER award for ANJA.
     was on successfully reducing rat pest attacks. In 2022,
     the program introduced an innovative, emission-free           In ANJAS, a horticultural product development program
     irrigation system called the siphon pump and waterwheel       was conducted for the Labalasiak Female Farmer Group.
     to meet water needs. This program continued throughout        ANJAS provides technical assistance to group members
     2023 and brought benefits to 26 participating farmers.        involved in horticultural product development. To date,
     Previously, farmers could only plant once a year, but with    various crops such as pumpkins, cucumbers, chili
     the novel irrigation system, they can now plant up to three   peppers, long beans, and tomatoes have been produced
     times a year. The system also replaces the need for fuel      and marketed through the “Poken Market” located
     water pumps, which were previously used to drain water.       within the Company area. This program has empowered
     Farmers participating in the program receive training in      18 individuals in the Labalasiak Kawani group and
     composting using straw waste and bacteria from POME           continues to strive in attempts to improve the welfare
     (Palm Oil Mill Effluent) as a starter. This compost can       of the local community. In efforts to enhance social
     help reduce the use of chemical fertilizers, promoting        innovation, the Company has built composting houses
     ecologically responsible rice production. ANJA currently      to create an organic compost stock from plant residues
     supports two farming groups, one of which is led by           after harvests.
     women.
                                                                   KAL, our West Kalimantan operation, has implemented
     Further to this program, we deployed a pilot project          an economic development program in the Kuala Tolak
     called “Petani Berintegritas” (Pengembangan Ternak Ikan       Village. The initiative includes beekeeping in Sungai
     Berintegrasi dengan Unggas or Fish Farming Integrated         Jahak hamlet and pineapple cultivation in Timor Celang
     with Poultry Farming) aimed at predicting future food         Parit hamlet. While most individuals have started




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raising honeybees for personal honey consumption,           by providing educational support through enhancing
KAL supports the formation and expansion of farming         the education system (Sekolah Luar) and facilitating
community groups, including donating additional STUM        market access for farming produce, as well as
(bee hives), to enhance kelulut honey (stingless bee        empowering independent smallholders, promoting
honey) production outcomes. The Company also assists        conservation efforts, and assisting smallholders in
the farmers in obtaining business licenses as well as       obtaining licenses and certifications. Additionally, MPK
expanding market access. We facilitated the registration    played a crucial role in advocating for licensing for
of the group’s Taxpayer Identification Number (NPWP),       independent smallholders, ensuring their legal rights
Business Identification Number (NIB) and home industry      and participation in the program were legalised. Each
license (PIRT). With proper licensing, honey sales can      of these efforts complements one another, working
access the domestic market. Additionally, alongside         towards uplifting nearby communities from “Desa
selling fresh pineapple, the group collaborates with the    Mandiri” to “Desa Mapan” status and showcasing socially
village community welfare group (PKK Desa) to produce       and economically sustainable villages as role models
pineapple products such as jam and snacks, boosting         for others to emulate, fostering a culture of sustainable
sales values and economic income for the community.         development and community empowerment.

In the Timor Celang Parit hamlet, 700 pineapple             Another ongoing program is the development of milkfish
seedlings were planted on over 0.5 hectare as part of       farming. This program functions as an aquaculture
pineapple farming activities. The pineapple cultivation     system with technology that combines fisheries with
project was carried out by the Kuala Tolak Village KTPA     mangrove planting, following a management system
(farmer firefighting group), utilizing unproductive and     that minimizes inputs and reduces environmental
fire-prone lands near KAL’s operating site.                 impact. In 2023, the procurement of 50,000 milkfish
                                                            eggs was conducted for milkfish cultivation, managed
This economic development program is instrumental           by two farmer groups with 18 members. Apart from the
in transitioning the community’s livelihood away from       milkfish cultivation group, five other individuals outside
slash-and-burn farming practices. By advocating safe        the program have also started milkfish cultivation using
and sustainable agriculture techniques, the program         the silvofishery system. The Company involves the
empowers the community to be self-sustaining in             Ketapang Regency Food Security and Fisheries Service
sourcing their food. This shift not only improves food      in technical training for fishery cultivation, including
security but also reduces the environmental degradation     pond preparation, water pH regulation, seed preparation,
caused by slash-and-burn methods. Through education         and harvesting. Local communities are also trained in
and sustainable practices, the program creates a more       making easy and inexpensive alternative feed to reduce
resilient community, capable of thriving without relying    the cost of buying feed while maximizing production.
on harmful agricultural practices.
                                                            In 2023, PMP in Southwest Papua launched the “PEKA”
KAL remains committed to investing in the Desa Fokus        (Karekano Economic Empowerment) program, designed
(Focus Village) program, a local government initiative      to empower women to sell shrimp and fish that they
aimed at enhancing village development. Since its           typically catch for daily consumption. Under this
launch in 2020, villages like Kuala Satong, Laman           initiative, the women collaborate to collect and sell their
Satong, and Kuala Tolak have seen improvements in           catch to employees and the Company. This program has
their overall Village Development Index scores, including   engaged 18 women, resulting in a total average monthly
the Social and Environmental Resilience Index. This         yield of 200 kg of shrimp. A total of 33 local community
collaborative effort involves Ketapang Regency, KAL,        members act as suppliers in distributing the produce
Mitra Pembangunan Ketapang (MPK) and Tropenbos              to the Company’s catering need and employees. PMP
Indonesia, who signed a partnership agreement in 2022.      actively supports and monitors the program to enhance
The partnership aims to enhance knowledge and develop       and achieve its economic growth objectives. The program
integrated village development models, empowering           has shown significant progress, with local suppliers
communities and improving market access through             earning around IDR 11 million per month. Currently,
cooperatives.                                               there is an increasing demand for fresh shrimp, and
                                                            shrimp farming activities have been planned to meet
In 2023, the program continued with various key             market needs in the future. This program provides
initiatives. Tropenbos remained dedicated to improving      women with the opportunity to earn income from their
rice and orange farming through “field schools”, offering   existing daily activities.
valuable technical training on farming practices to
enhance productivity. Meanwhile, Ketapang Regency           In 2023, broiler chicken farming commenced at PMP to
continued its vital role in supervising and facilitating    help improve the economic welfare of the community.
the program’s implementation. KAL actively contributed      Two individuals from Giamarema Preparation Village in




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     Two mamas chatting while cooking at "Warung Mama" in PPM.




     Metamani District and three individuals from Sumano            At ANJAP in Southwest Papua, “Warung Mama” continued
     Village in Kais District have felt the impact of the           to provide economic opportunities for women, addressing
     program through increases in income of between IDR 2           the limited avenues for them to boost their family
     to 3.5 million. By the end of 2023, more than 800 broiler      income. The program supports local women (mamas)
     chickens were sold and distributed to both the Company’s       from Saga Village, Metamani District, South Sorong
     cooperative and the surrounding community. Both the            Regency, by offering training to prepare sago-based
     Company and the local community are consistently               dishes for sale. ANJAP also trained the mamas in basic
     monitoring and evaluating the program, which includes          financial management for small businesses. Since 2019,
     assessing feed availability, reducing chick mortality rates,   11 members from Saga and Puragi Village, Metamani
     and adapting to weather conditions. Another notable            District, have participated in this program. This initiative
     achievement is the group’s ability to effectively manage       not only empowers women but also promotes locally
     the farm, leading to long-term business independence.          produced sago as a versatile, nutritious food source.
                                                                    Each member earns income from selling various dishes
     In GMIT where our estate focuses on edamame                    like sago cendol ice, sago-based chicken noodles, pandan
     crops, the “Kampung Edamame” (Edamame Village)                 cakes, donuts and banana rolls, with potential earnings
     community-based program saw a 47% increase in sales            of up to IDR 2 million per month. In 2023, Warung Mama
     in 2023 from 2022 values, through investment in new            earned to a gross revenue of IDR 196 million.
     machines with a larger capacity to support production.
     This program empowers the community around the                 Additionally, the mamas are learning farming skills
     Company to process edamame into innovative products            through hydroponic gardens, and growing vegetables
     with added value. There has also been an expansion             for consumption and sale. This initiative aims to develop
     into other products with the launch of crispy okra. The        these fresh vegetables into locally processed products
     Kampung Edamame’s products have obtained licensing             for the market.
     and HALAL certification from MUI. Another expansion
     in the implementation of this program is cooperation           Warung Mama is very popular among the local community
     with new millennial farmers who will become pioneers           and ANJAP employees. Due to its success, a similar
     and stakeholders in the development of the Kampung             scheme has been replicated in PPM.
     Edamame.




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                PINEAPPLE CULTIVATION PROGRAM IN KETAPANG,
                WEST KALIMANTAN: A BREAKTHROUGH IN REDUCING
                RISKS OF FOREST FIRE
FEATURE STORY




                                                                                Three farmers from the pineapple cultivation program
                                                                          initiated by KAL, addressing deforestation and land burning
                                                                                               and promoting sustainable agriculture.


                The Pineapple Cultivation Program initiated by          of local communities. The traditional method
                PT Kayung Agro Lestari (KAL), ANJ’s subsidiary,         of slash-and-burn agriculture, where land is
                represents a transformative approach to addressing      cleared and burned for farming, is among the
                some of the most pressing environmental                 leading causes of these environmental crises.
                challenges faced by forested regions: deforestation     It results in a vicious cycle of soil degradation,
                and wildfires. This program leverages pineapple         decreased      agricultural    productivity,  and
                farming as a strategic intervention to combat the       increased vulnerability to fires.
                detrimental effects of slash-and-burn practices,
                which have long been a primary driver of forest         In this context, the Pineapple Cultivation
                fires and deforestation in vulnerable areas. By         Program emerges as a beacon of innovation.
                introducing a sustainable agricultural alternative,     By focusing on pineapple—a crop well-suited to
                ANJ is pioneering a path toward environmental           the peatland conditions characteristic of areas
                conservation and community prosperity.                  at high risk of fires—ANJ offers a compelling
                                                                        alternative to slash-and-burn farming.
                Deforestation and forest fires have been a
                recurring issue, significantly contributing to global   The selection of pineapple as the crop of
                warming and loss of biodiversity. This not only         choice is strategic. Pineapples thrive in
                threatens the ecological balance but also poses         peatland conditions, where the climate and
                severe risks to the health and economic stability       soil composition are ideally suited for their



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                       cultivation. This compatibility makes pineapple            comprehensive support for 15 participating farmers.
                       an excellent commodity for development in areas            This support encompasses training in product
                       prone to forest fires, offering a viable agricultural      processing, specifically in making pineapple syrup
                       alternative that discourages the practice of slash-        and jam, as well as future plans for producing
                       and-burn farming—a primary cause of such fires.            pineapple chips. Additionally, the initiative offers
                                                                                  guidance in packaging and agronomy skills,
                       Culturally, pineapples also hold significant value         emphasizing sustainable farming practices that
 FEATURE STORY

                       in local cuisine, making them a vital ingredient in        align with environmental protection goals.
                       the culinary traditions of the region. This cultural
                       relevance, coupled with the agricultural suitability       The initiative has been met with positive
                       of pineapples, presents a unique opportunity to            feedback from the community, appreciating not
                       align economic incentives with environmental               only the economic benefits but also the adoption
                       conservation efforts.                                      of safe farming practices. The significance of
                                                                                  the program is echoed in the words of a local
                       Spanning over 5,000 square meters of land, planted         farmer Nurhadi, who serves as the Chairman of
                       with 700 pineapple seedlings, the project includes         Kelompok Tani Peduli Api (KTPA):




                       AS A MEMBER OF KTPA, I HAVE WITNESSED A
                       TRANSFORMATIVE CHANGE. THE INITIATIVE TO TURN FIRE-
                       PRONE LAND INTO FLOURISHING PINEAPPLE FARMS HAS
                       NOT ONLY REVITALIZED OUR ENVIRONMENT BUT ALSO OUR
                       ECONOMY. IT HAS EMPOWERED US, ESPECIALLY THE WOMEN
                       IN OUR VILLAGE, PROVIDING BOTH KNOWLEDGE AND A
                       SUSTAINABLE MEANS TO IMPROVE OUR LIVELIHOODS.”


                                                                                     The pineapple cultivation program is not just
                                                                                     about growing pineapples; it is also about
                                                                                     enriching the soil, reducing fire hazards, and
                                                                                     creating an economic pathway that aligns
                                                                                     with environmental conservation goals. More
                                                                                     importantly, it is about sowing the seeds of
                                                                                     hope, empowerment and sustainability.




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Education Program                                                  Specifically in KAL, West Kalimantan, we execute
                                                                   the “School Development Program” that has notably
Due to inadequate learning and teaching facilities,                enhanced the quality of education by addressing both
the quality of education in rural and remote areas of              infrastructure and content aspects. This initiative
Indonesia often lags behind that of metropolitan cities.           encompasses improvements in physical school
To address this disparity, we have focused on providing            conditions, including the construction of sanitation
access to quality education for local community                    facilities and the provision of chairs, tables and other
children, particularly in Southwest Papua, as part of our          essential equipment. Additionally, efforts have been
contribution to SDG 4 (Quality Education), specifically            made to boost the capacity of teachers and students
aiming to achieve inclusive, equitable and excellent               through various programs such as “inspirational class”
education for all.                                                 for digital transformation and “shining class” to promote
                                                                   tidiness and cleanliness among students. Overall, 32
Since 2018, we have partnered with the Alirena Foundation          teachers have participated in various training sessions,
to support Early Childhood Education (PAUD) programs               along with the delivery of 14 sessions of inspirational
in Sumano and Benawa, located in Southwest Papua. In               classes.
the latter half of 2022, we assumed full responsibility for
organizing these programs. Since taking over, we have              At ANJAS, North Sumatra, the School Improvement
not only continued these efforts but also expanded the             Program at SMPN 4 South Angkola has been a key
initiative to encompass elementary schools. Moreover, in           initiative. With 71.85% of students at SMPN 4 South
2023, we have extended our reach to include the villages           Angkola being children of ANJAS employees, we have
of Puragi and Tawanggire as new areas benefiting from              implemented various intervention programs to enhance
our educational programs.                                          the school’s quality. One crucial aspect is establishing
                                                                   road access from the plantation to the school to ensure
In 2023, the Company also recruited and provided housing           easy travel for students. Additionally, we have provided
and basic needs for four local primary teachers and eight          essential facilities like desks, chairs, whiteboards, and
local assistant teachers. Furthermore, we constructed              toilets to improve the learning environment. ANJAS
and renovated spaces for early childhood schools in                has also supported the school committee’s formation,
Sumano, Benawa and Puragi to ensure students have                  organized workshops for school program planning, and
a clean and safe environment for studying and playing.             provided teaching assistance for the teachers.
Additionally, PAUD teachers provide supplementary
reading, writing and arithmetic support to elementary              By focusing on both infrastructure and content, including
school students who are still illiterate. Since its inception,     educational materials, curriculum, and teaching
the program has brought positive impacts to more than              methods, we strive to create an optimal learning
270 students.                                                      environment for all.




PAUD (Early Childhood Education) graduation in Benawa 1 village,
Southwest Papua, reflecting a commitment to the enhancement of
education in the area




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                        ENHANCING QUALITY OF LIFE THROUGH EDUCATION
 FEATURE STORY




                                                                        Our team engages with students from our target schools to support
                                                                         and empower future generations, fostering learning and nurturing
                                                                                                          growth for tomorrow's leaders.




                        In today’s interconnected world, education             The educational landscape in Ketapang has
                        stands as the bedrock of human development             long faced hurdles related to inadequate
                        and societal progress. It is the key that unlocks      infrastructure, which hampers the delivery of
                        doors to opportunity and drives positive change.       quality education. Classrooms often lack basic
                        ANJ has undertaken a thorough journey of social        necessities, such as proper seating and learning
                        responsibility by making education a core pillar       materials, which are critical for creating an
                        of its commitment to empower communities               environment conducive to learning. Moreover,
                        where it operates.                                     sanitation facilities in many schools are either
                                                                               non-existent or in dire conditions, posing health
                        ANJ’s unwavering commitment to community               risks and affecting students’ school attendance
                        empowerment through education reflects its             and overall learning experience.
                        profound belief in the transformative potential
                        of knowledge. The Company recognizes that              KAL’s School Development Program specifically
                        education is not merely a tool for individual          targets these issues by investing in the physical
                        advancement but a catalyst for broader societal        refurbishment of schools. This includes the
                        development.                                           construction of new sanitation facilities that
                                                                               meet health and safety standards, ensuring
                        In Ketapang Regency, West Kalimantan, a region         that students have access to clean and safe
                        grappling with educational challenges such as          restrooms. Additionally, the program has
                        limited resources and infrastructure, PT Kayung        supplied essential furniture such as chairs
                        Agro Lestari (KAL), a subsidiary of ANJ, has           and tables, directly impacting the learning
                        launched a transformative “School Development          environment by making it more comfortable
                        Program.” This program is a testament to ANJ’s         and conducive to student engagement.
                        commitment to bolstering education quality,
                        reflecting a holistic approach that encompasses        Beyond infrastructure, the program also
                        both tangible infrastructure improvements and          places a significant emphasis on enhancing
                        substantive educational content enhancements.          the educational experience through capacity
                                                                               building for teachers and students. Recognizing
                                                                               the importance of digital literacy in today’s



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                                                                                             Students of The "shining class"
                                                                                             or Kelas Bersinar SMPN 03
                                                                                             Manjau Matan Hilir Utara




world, KAL has introduced the “inspirational class” or        education delivery and administrative efficiency. Now
Kelas Inspirasi, aimed at equipping both educators and        we can report educational data to Ketapang Educational
learners with the skills needed for digital transformation.   Office with ease and timely manner. The school even
This initiative is crucial for preparing students for the     able to administer our own UNBK (National Exam)
future, enabling them to navigate and succeed in a            independently without using neighboring schools’
digitally-driven world.                                       facilities”, said Aisyah, a 3rd Grade Teacher at SMPN 03
                                                              Manjau Matan Hilir Utara.
The “shining class” or Kelas Bersinar initiative is another
innovative aspect of the program, designed to instill         “What we found interesting is the change in the
values of tidiness and cleanliness among students. This       classroom atmosphere which was initially dirty but has
effort not only contributes to a more organized learning      now become cleaner, more comfortable, and beautiful.
environment but also fosters personal responsibility and      My child also brings the habits to home, he becomes a
hygiene practices among students, which are essential         very tidy kid and always mindful about cleanliness. I am
life skills.                                                  really happy with this habitual change.“,said Nurhadi ,
                                                              parent of Tria, Grade 9.
To date, the School Development Program has seen the
active participation of 32 teachers in various training       KAL’s investment in Ketapang’s education sector through
sessions, enhancing their pedagogical skills and capacity     the School Development Program is a clear indicator
to deliver quality education. Furthermore, 14 sessions of     of ANJ’s broader community development strategy.
inspirational classes have been conducted, benefiting         By addressing both the physical and content-related
numerous students by broadening their horizons and            needs of schools, KAL is not only improving the current
preparing them for the challenges of the digital age.         state of education but is also laying the groundwork for
                                                              sustainable development in the region. This initiative
The effectiveness of this program is highlighted by one       demonstrates ANJ’s commitment to contributing
of the teachers as well as student’s parents, recognizing     positively to the communities in which it operates, with
its positive impact.                                          a particular focus on empowering future generations
                                                              through education. ANJ’s pioneering spirit continues to
“KAL’s support for SMPN 03 Manjau, especially through         inspire and drive positive change, proving that education
providing internet signal boosters, has enhanced both         is the key to a brighter future for all.



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     PLANET

      Addressing Climate Change: Impacts, Risks, and Our
                                                           76
      Response
      Green Metrics on Our Emission and Energy
                                                           81
      Consumption
      Commiting to Sustainable Practices in Waste
                                                           92
      Management
      Committing to the Safeguarding of Forest and
                                                           98
      Biodiversity
      Prioritizing Responsible Water Management            114




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       Two conservation staff members are
conducting biodiversity data collection in our
                          conservation area.




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     AGRIBUSINESS OPERATIONS
     CAN SUBSTANTIALLY ALTER
     NATURAL LANDSCAPES,
     CONSUME SIGNIFICANT
     QUANTITIES OF NATURAL
     RESOURCES AND EMIT HIGH
     LEVELS OF GREENHOUSE
     GASES. THESE FACTORS
     RESULT IN NEGATIVE IMPACTS
     ON BIODIVERSITY AND THE
     ENVIRONMENT AND CAN
     THREATEN THE STABILITY
     OF THE EARTH’S NATURAL
     SYSTEMS. TO MITIGATE
     THESE RISKS AND REDUCE
     NEGATIVE EFFECTS WHILE
     AIMING FOR POSITIVE
     OUTCOMES, IT IS ESSENTIAL
     TO ADOPT BEST PRACTICES IN                     Our company is committed to conserving the environment,
                                                    especially in areas classified as High Carbon Stock and
     ENVIRONMENTAL PROTECTION                       High Conservation Value (HCS/HCV), by implementing
     AND CONSERVATION AND                           sustainable practices. RSPO membership requires strict
                                                    adherence to the organization’s Principles and Criteria
     AGRICULTURE. "                                 (P&C, 2018) and New Planting Procedures (NPP), both of
                                                    which were originally released in November 2015.




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                                                                               HCS areas in our concession in Southwest Papua.




In our Company-wide Sustainability Policy, we have established the following high-level commitments:
• Responsible development of new areas incorporating an integrated landscape approach.
• Total protection and conservation of independently identified High Conservation Value-High Carbon
   Stock (HCV-HCS) forests.
• Zero land clearing for oil palm in independently identified HCV and HCS areas, following RSPO
   protocols. Development of identified HCS areas pertaining to legacy cases will strictly follow RSPO’s
   requirements.
• No new development in peat areas of any depth, and conservation of peatlands/wetlands.
• Commitment to reducing greenhouse gas emissions.
• Zero Land Burning.
• Taking precautions when developing on fragile soils, slopes and waterways (including river basins).

Our suppliers face similar risks and impacts on the environment and biodiversity, so we expect the same
commitment from them. We engage extensively with our suppliers and independent farmers, raising
their environmental awareness and providing them with the necessary tools to meet our environmental
standards and commitments. Their performance reflects ours, so we prioritize engagement to ensure
sustainability throughout our supply chain.




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     The border between the conservation area and the palm oil landscape is
     maintained to uphold our commitment to responsible development.




     ADDRESSING CLIMATE CHANGE:                                                  degradation, potentially diminishing productivity by
                                                                                 as much as 20% in certain soil types, like sandy and
     IMPACTS, RISKS AND OUR RESPONSE
                                                                                 marginal lands.
     [201-2]                                                                  2. Pollination Disruption and Workers Productivity:
                                                                                 Altered behaviors in insect pollinators can significantly
     Acknowledging the profound and escalating impact of
                                                                                 impact the natural pollination process, potentially
     climate change, we are committed to a path that not
                                                                                 reducing production by up to 10% in terms of average
     only addresses the immediate effects on our workforce,
                                                                                 fruit bunch (FFB) weight and a corresponding 10%
     ecosystems, and communities but also fortifies our
                                                                                 drop in total production yield. In addition, the heat
     business against future vulnerabilities. Embracing
                                                                                 stress will impact the productivity of our plantation
     business models that prioritize carbon emission
                                                                                 workers as much as 70% due to higher temperature.
     reduction is pivotal in our strategy, resonating with
                                                                              3. Drought and Wildfire Impact: The 2015 and 2019
     our commitment to the global effort to mitigate global
                                                                                 droughts, coupled with increased wildfire risks,
     warming.
                                                                                 markedly reduced crop yields—by over 20%—
                                                                                 highlighting the severe implications of prolonged dry
                                                                                 spells.
     Understanding Physical Risks                                             4. Rainfall Intensity and Flooding: Escalated rainfall
                                                                                 and flooding episodes impair transport logistics
     The advent of climate change introduces a spectrum of                       during crucial harvest periods, potentially curtailing
     physical risks to our agribusiness, underscored by an                       production by up to 10%.
     increase in temperatures and the frequency of extreme                    5. Pollution Aggravated by Drier Conditions: The impact
     weather events. These variations significantly influence                    of pollution intensified by drier conditions, specifically
     our agricultural outputs and operational efficiencies. For                  concerning particulate matters can lead to significant
     instance:                                                                   health problems for workers and result in losses in
     1. Soil Moisture and Productivity: Enhanced evaporation                     productivity.
        rates lead to notable water scarcity and soil




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                BOOSTING PALM OIL YIELDS WITH HATCH
                AND CARRY POLLINATION SYSTEM
FEATURE STORY




                A worker is checking a collection sack in the box pollination system, an
                innovation designed to increase the productivity of oil palm plants in an
                environmentally friendly way.



                ANJ’s businesses are inherently susceptible                       a concerning impact on oil palm production, in
                to the impacts of climate change, from                            large part due to a significant reduction in natural
                changing temperatures to intensified                              pollinators, resulting in a low FFB yield.
                weather events, and more extreme
                fluctuations between seasonal climatic                            Pollination is the process by which pollen
                conditions. Unfortunately, we have reached                        grains from the ‘male’ elements of a plant
                a point where the reversal of climate change                      are transferred to the ‘female’ elements. This
                is no longer feasible, and the mitigation of                      can happen in many ways, but, in palm oil, it is
                climate-related risk is increasingly difficult.                   mostly carried out by a specific species of weevil,
                Therefore, ANJ’s approach is to adapt to                          Elaeidobius kamerunicus, commonly referred to
                change through developing resilient and                           as EK. The weevil is attracted to the smell of the
                sustainable systems which can withstand a                         pollen on which it feeds and then distributes as
                future of unpredictable and variable climate,                     part of a natural pollination process.
                while minimizing negative contributions to
                the forces driving climate change.                                ANJ’s research and development team have long
                                                                                  worked with various means of assisted pollination,
                Over the past three years, ANJ’s palm oil                         meaning that we introduce systems to support
                business has dealt with a series of unfavorable                   or replicate natural pollination. Many of these
                weather events, ranging from intense rainfall                     methods are very time-consuming and require
                during the La Niña event of 2021-2022, to                         significant labor input. This year, we integrated a
                the drought-like conditions of the ongoing                        new system into our existing pollination schemes
                El Niño. Such extremes of weather, and the                        – the ‘hatch and carry pollination system’. The
                dramatic contrast between the two, have had                       system is currently in place at ANJA, ANJAS,




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                         SMM and KAL, with SMM and ANJA taking the                While still in its infancy, our research and
                         lead with the most advanced application of the           development team are very optimistic about the
 FEATURE STORY

                         system. As we learn more about hatch and                 potential of hatch and carry for increasing yields
                         carry, we plan to introduce the system at all of         in a sustainable and climate-safe way. Our
                         our estates.                                             assisted pollination schemes have already been
                                                                                  very successful at our estates in SMM and ANJA
                         First trialed in palm oil estates over a decade          and we hope to continue this upward trend.
                         ago, hatch and carry works by allowing the
                         larvae of the EK weevil to hatch in an enclosed          ANJ’s commitment to our core values,
                         box, that is protected from environmental                particularly those embedded in sustainable
                         threats to ensure an optimal survival rate, and          practice and responsible development is central
                         releasing them on targeted crop areas. The               to our ability to retain support from our people
                         initial stages of the hatch and carry system             through difficult times. Developing adaptive
                         resemble those of the box pollination system,            measures to climate change, such as the hatch
                         which ANJ has used before. Male flowers from             and carry system that promote natural processes
                         the palm tree, where the EK weevils have laid            and reduce ANJ’s contribution to carbon
                         their eggs, are collected and then inserted into         emissions, is part and parcel of our mission. We
                         the hatching box. The eggs are left for three days       hope that advocating our responsible approach
                         to allow the weevils to hatch. The weevils are           can set a precedent for other actors in our
                         then sprayed with high-potency pollen. In the            industry and support a shift toward supporting a
                         box pollination system, this is the point at which       better future for generations to come.
                         the box would be opened to allow the weevils to
                         fly away and naturally find the palm flowers to
                         pollinate. However, the hatch and carry system
                         is a more targeted approach, that brings the
                         weevils directly to the flower to increase the rate
                         of successful pollination.

                         Once hatched, the EK weevils fly into an
                         enclosed chamber within the hatching box. This
                         chamber either takes the form of a bottle or
                         collection sack. Once the weevils have entered
                         the chamber, they are removed from the
                         hatching box and brought directly to targeted
                         crop areas. Here, the weevils are released to
                         carry the high-potency pollen to the flowers, for
                         pollination. Studies have proven this method to
                         be very effective, showing increases in weevil
                         populations of over 20% per hectare and FFB
                         production by more than 5% within the first two
                         months.




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Navigating Regulatory and Transitional
Risks

The evolving regulatory landscape and consumer
expectations around carbon footprint and sustainability
practices spotlight the urgency of transitioning towards
more resilient and adaptable business models. This
encompasses:
• Rigorous disclosure of climate-related data, including
   GHG emissions, which showed a 83.8% reduction in
   2023 compared to our 2015 baseline, highlighting our
   progress towards a lower carbon footprint.
• Water conservation measures that resulted in a 20%
   decrease in water use intensity across our operations
   since 2018.
• Active participation in environmental platforms like
   the CDP and SPOTT, reflecting our enhanced ESG
   reporting and transparency.
• Adoption of renewable energy solutions, reducing
   our dependence on fossil fuels by 17.8% in the past
   five years, with ongoing projects poised to further
   decrease this reliance by an additional 20% by 2025.

Moving Toward ESG Objectives through
Strategic Assessment and Integration
(POJK51-E.3)

Annually, we assess each risk and opportunity, integrating      of USD 1,850 per hectare, this method substantially
these insights into our business strategy to meet our           diminishes operational expenses by over 55% and
ESG goals. The Board of Directors, led by our Chief             ensures sustained crop growth, proving especially
Operating Officer, oversees the mitigation of transitional      beneficial during extended drought periods.
risks, acknowledging the financial stakes climate
change poses. We proactively address these challenges           Assisted Pollination: By bolstering the population of
through agribusiness innovations and research, aiming           pollinators and providing mechanical assistance in
for operational and economic efficiencies.                      pollination processes, especially in areas with diminished
                                                                natural pollinator populations, we have successfully
Our strategic endeavors in agribusiness innovation              increased the weight of fruit bunches and enhanced
and research are pivotal in addressing climate change           fruit set development. This initiative underscores our
impacts and enhancing operational efficiency. Here is a         commitment to maintaining ecosystem balance and
detailed look at these initiatives:                             improving production efficiency.

Composting: Leveraging microbes to transform empty              Wildfire Prevention: To safeguard our concessions from
fruit bunches into organic fertilizers, our composting          external wildfires, we have implemented fire prevention
initiative necessitates an investment of USD 3.5 million        measures, including the construction of closed canal
for each operational site. This significant investment          systems and water reservoirs that act as protective
pays dividends by reducing the reliance on chemical             barriers. Additionally, enhancing our rapid response
fertilizers, enhancing soil moisture, and revitalizing soil     capabilities ensures we are well-prepared to address
structure. Notably, in regions like Belitung, this initiative   potential wildfires swiftly, minimizing their impact on our
has led to a notable increase in yield for young mature         operations and the surrounding environment.
palms and a reduction in chemical fertilizer usage by
over 50%, effectively lowering greenhouse gas (GHG)             These initiatives are central to our strategic priorities and
emissions from fertilizer application. (POJK51-F.5)             operational ethos. As such, every investment undergoes
                                                                a thorough evaluation of its financial implications and
Drip Fertigation: Implementing a small-scale pipeline           a detailed life cycle cost-benefit analysis. This rigorous
network allows precise distribution of water and                assessment process is embedded in our annual strategic
fertilizers directly to each palm tree. With an investment      planning and budgeting activities, ensuring that our




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     commitments not only align with our sustainability goals         Electrostatic Precipitator (ESP) in our boiler systems
     but also contribute to our long-term financial health and        is a proactive strategy. By installing ESPs, we aim to
     operational efficiency. Through this approach, we aim to         significantly reduce the amount of particulate matter
     optimize our resource allocation and enhance the overall         emitted during the combustion processes in our
     impact of our sustainability initiatives, reaffirming our        boilers. This not only helps in complying with stricter
     dedication to environmental stewardship and responsible          environmental regulations but also plays a crucial
     business practices.                                              role in safeguarding the health of our workforce and
                                                                      the surrounding communities by ensuring cleaner air
     In addition, to mitigate the environmental and health            quality. Thus, the ESP serves as a critical component in
     impacts of particulate matter (PM) emissions, which              our efforts to adapt to and mitigate the effects of climate
     are exacerbated by increasingly drier conditions linked          change on our operations.
     to changing climate landscapes, the introduction of an


     Table 09: Physical Risks and Financial Implications due to Climate Change

                                                                                                                 Likelihood of
                                           Financial           Management
        Physical Risks     Timeframe                                                   Cost of Actions          Occurance and
                                          Implications          Methods
                                                                                                              Magnitude of Impact

      Higher soil                      USD 12.5 million
                                                                                   USD 3.5 million            L: High
      moisture             2 years     to USD 50 million    Composting
                                                                                   per site location          M: High
      evaporation                      per year

                                       USD 8 million to
      Behaviour of the                                                             USD 100                    L: High
                           1 year      USD 20 million per   Assisted Pollination
      insect pollinators                                                           thousand per site          M: Medium
                                       year
                                                            Composting
                                       USD 10 million to                           USD 3.5 million per site
      Intense drought                                       Drip Fertigation                                  L: High
                           2 years     USD 20 million                              USD 1,850 per hectare
      and wildfire                                          Integrated Fire                                   M: High
                                       per year                                    USD 4.5 million per site
                                                            Mitigation

                                       USD 8 million to
      Intense rain and                                      Water Management       USD 2.5 million            L: Medium
                           1 year      USD 20 million per
      frequent floods                                       & Road maintenance     per annum                  M: Medium
                                       year
      Pollution leading
      to health issues                 Between USD 1-2      Electrostatic                                     L: High
                           1 year                                                  USD 1.5 million per site
      that impact                      million per year     Precipitator                                      M: Medium
      workers



     Strengthening Our Foundations for                                practices and responsible development approach include
                                                                      protecting, restoring, and managing ecosystems through
     Climate Resilience(POJK51-E.5)
                                                                      conservation and biodiversity protection efforts.
     Our strategy to effectively address climate change is
                                                                      Thirdly, ANJ emphasizes responsible practice
     built on five core approaches. Firstly, our goal is to
                                                                      throughout our value chain, ensuring that our suppliers,
     significantly lower emissions from our operations by
                                                                      primarily smallholders, meet our strict sustainability
     the year 2030. This involves a targeted 30% reduction
                                                                      standards. We offer programs to enhance their skills and
     in intensity for Scope 1 and Scope 2 emissions, using
                                                                      capacity, and support them in achieving RSPO and ISPO
     the 2015 baseline as a point of reference and is a direct
                                                                      certification.
     reflection of ANJ’s commitment to its ESG ambitions. This
     involves increasing our use of renewable energy sources,
                                                                      Our fourth strategy involves adapting to and mitigating
     reducing reliance on fossil fuels, and transitioning from
                                                                      climate impacts through investments in agronomic
     inorganic to organic fertilizers. We also plan to implement
                                                                      innovation, like composting and drip fertigation, which
     methane capture activities to reduce emissions from our
                                                                      enhance our resilience to environmental challenges and
     palm oil mill effluents (POME). (POJK51-F.5, 201-2)
                                                                      support the sustainable growth of our business.
     Secondly, we utilize Nature-Based Solutions (NBS),
                                                                      Finally, we are committed to and participate in governance
     which leverage natural processes and features to address
                                                                      and transparency practices to report our sustainability
     socio-environmental issues by reducing greenhouse
                                                                      and climate change performance through platforms
     gas emissions, mitigating climate change impacts, and
                                                                      such as CDP, GRI and SPOTT. Through engaging with
     promoting sustainable development. Our agronomic




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A Worker spraying POME onto empty fruit bunches to
produce compost


the reporting process involved in these disclosure and        we indirectly contribute to greenhouse gas emissions
transparency requirements, we are better equipped to          through the operations of our supplier plantations, the
evaluate the efficacy of our sustainability governance        travel of our staff and the transportation of raw materials,
and programs and proactively implement any necessary          fertilizers and agricultural products. However, we have
improvements.                                                 not yet conducted any calculations regarding the use of
                                                              energy sourced from outside of the company. (302-2)
We believe that we have a strong grasp of our climate risk
and have shown that we implement various mitigation           Conversely, our operations offer the potential for
and adaptation measures. Nonetheless, in 2024, we plan        reductions in global emissions. Through our conservation
to conduct a formal Climate Change Risk Assessment.           and reforestation initiatives, we enhance carbon
This assessment, supported by external experts, will          sequestration in our regions. Our oil palms also play a
review the global and regional state of knowledge on          vital role in absorbing and storing a considerable volume
climate change and evaluate our readiness in terms of         of greenhouse gases. Moreover, the methane released
the measures we implement on the ground, identifying          from our palm oil mill effluents (POME), a byproduct of
any potential improvements or gaps, if any.                   our palm oil extraction processes, can be harnessed to
                                                              produce renewable energy through biogas generation.

GREEN METRICS ON OUR EMISSION                                 Embedded within our Sustainability and Environmental
                                                              Policies is a commitment to minimize emissions
AND ENERGY CONSUMPTION
                                                              and energy consumption. This commitment involves
                                                              enhancing the efficiency of fertilizer use and shifting
In our business sector, greenhouse gas emissions
                                                              towards organic alternatives, expanding our reliance on
primarily arise from management practices on our
                                                              renewable energy sources, decreasing our dependency
plantations, extraction and processing operations in our
                                                              on fossil fuels, and capturing methane emissions from
mills or factories, and land use preparation. Additionally,
                                                              palm oil mill effluents (POME) to be repurposed as
we rely on electricity from the national grid, which is
                                                              biofuel.
predominantly generated using fossil fuels. Moreover,


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     Our objective is to reach Net Zero emissions by 2030, by      across all our operations and offices. However, emissions
     reducing the greenhouse gas (GHG) emissions intensity         from pesticides are not accounted for in the PalmGHG
     of our palm oil production by 30% by 2030, from the           calculator. To estimate our Land Use Change (LUC)
     baseline values collected in 2015. We have also set           emissions, we also rely on the PalmGHG calculator,
     ambitious targets to boost our renewable energy usage         using data from our land conversion activities. We have
     to exceed 60% and to cut our fossil fuel dependence by        established 2015, the first year we implemented the
     20% by 2025, underlining our dedication to environmental      PalmGHG calculator, as our baseline year for tracking
     stewardship and sustainable operations.                       progress. Additionally, we adjust the data obtained from
                                                                   the PalmGHG calculator to align with the GHG Protocol
     GHG Emissions Performance                                     Corporate Standard for reporting our Group’s overall
                                                                   emissions. These measurements are regularly audited by
     (POJK51-B.2.b, POJK51-F.11)
                                                                   independent parties as part of our compliance with RSPO
                                                                   and ISPO regulations, and the International Sustainability
     Our greenhouse gas (GHG) emissions are calculated
                                                                   & Carbon Certification (ISCC) for SMM. For the usage of
     from entities under our operational control, which
                                                                   electricity via the National Grid, our assumption refers
     encompass our mature producing oil palm subsidiaries
                                                                   to the International Energy Agency (IEA), where the
     ANJA, ANJAS, SMM, KAL, PMP, and PPM our sago and
                                                                   emission factor for electricity usage through Indonesia’s
     edamame companies ANJAP and GMIT, and our offices
                                                                   National Grid is considered equivalent. By adopting
     located in Jakarta, Medan and Sorong. To prevent
                                                                   this assumption, we can understand the environmental
     double counting, we exclude emissions from our
                                                                   impact of electricity consumption and take appropriate
     renewables business (AANE), as their emissions are
                                                                   steps to reduce carbon emissions and enhance energy
     already accounted for in our assessment of emissions
                                                                   sustainability. According to GHG Protocol Corporate
     from SMM. The emissions of carbon dioxide (CO2),
                                                                   Standard, direct CO2 emissions from the combustion of
     methane (CH4) and nitrous oxide (N2O) are all converted
                                                                   biomass shall not be included in Scope 1 and reported
     into CO2 equivalents for a comprehensive evaluation.
                                                                   separately. At ANJ, our biogenic emissions originate only
     (305-1, 305-2, 305-3, 305-4, 305-5)
                                                                   from palm kernel shells and palm fiber, thus based on
                                                                   our internal assessment the figure is not significant.
     In this report, we categorize our emission accounting
                                                                   (305-1, 305-2, 305-3)
     into three scopes. Scope 1 encompasses two primary
     activities: in the plantation sector, it largely attributed
                                                                   Supported by an independent third-party assessor, we
     to peatland oxidation, land conversion, and fertilization;
                                                                   launched a comprehensive project in 2023 to inventory
     and in the mills, it predominantly covers methane
                                                                   our Scope 3 emissions across the entire supply chain.
     emissions from our Palm Oil Mill Effluent (POME). In
                                                                   This initiative underscores our commitment to accurate
     addition to Scope 1, usage of diesel fuel in stationaries
                                                                   accounting of our environmental impact and has provided
     and combustions are also accounted for in both the
                                                                   us with a clearer understanding of the main sources of
     plantation and mills. Scope 2 accounts for the electricity
                                                                   these emissions, thus facilitating the development of
     we purchase. Scope 3 primarily refers to the Fresh Fruit
                                                                   strategies to mitigate them. While this project is ongoing
     Bunch (FFB) we buy from third-party suppliers, and to a
                                                                   and we have not yet fully accounted for all our Scope 3
     lesser extent, includes downstream transportation and
                                                                   emissions, some of the improvements resulting from
     distribution. (305-3)
                                                                   this initiative will be reflected in the emissions reporting
                                                                   in this report.
     Ozone-depleting     substances       (ODS)    such     as
     chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons
                                                                   In 2023, our total company-wide greenhouse gas (GHG)
     (HCFCs), which harm the ozone layer and contribute to
                                                                   emissions decreased by 48,751 Ton CO2 eq (17.8%)
     global warming, are not included in our assessment. Our
                                                                   across all sectors, with a specific reduction of 23,239
     vegetable unit’s frozen line facility, which commenced
                                                                   Ton CO2 eq (11%) in our Palm Oil sector, compared to
     operations in 2021, adheres to Indonesian regulations
                                                                   the figures from 2022. This reduction is primarily due
     aimed at phasing out products that emit ODS, by not using
                                                                   to the review of the planting area inventory profile in
     HCFCs and ensuring it does not produce ODS. (305-6)
                                                                   ANJAS peatland in relation to the second peat inventory
                                                                   submission to RSPO and ANJAP’s canal development.
     Our greenhouse gas (GHG) emissions measurement
                                                                   Consequently, we continue to reduce our GHG emissions,
     approach utilizes the RSPO PalmGHG calculator version
                                                                   seeing our Scope 1 and 2 emissions intensity reach 1.0
     4, which is the most appropriate tool for assessing our
                                                                   Ton CO2eq/Ton CPO produced compared to 1.31 in 2022
     emissions, given that palm oil is our primary business
                                                                   and 8.16 at baseline. (305-5)
     and largest source of emissions. We monitor the use
     of fuel, energy, and fertilizers, and calculate emissions




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Our GHG emission management data collection                    us to gain deeper insights into our GHG emission
methodology encompasses a comprehensive approach               management practices, enabling us to make informed
to ensure accuracy and efficiency. We begin with daily/        decisions and optimize our strategies for sustainable
monthly recording of relevant data points, which serves        resource utilization. As a foundational assumption for
as the foundation of our monitoring process. This is           all our emission data management, it should be noted
complemented by monthly reporting to track trends and          that ANJ manufacturers a variety of products which
identify any deviations from established benchmarks.           certain investment activities have not reached optimum
Enterprise Resource Planning (ERP) software is used            production; therefore, instead using revenue value, we
to facilitate streamlined data management; however, in         use asset values as the denominator for determining
instances where ERP is unavailable, we resort to manual        emission intensity. (305-4, 305-5)
forms to ensure continuity. Periodic data analysis allows


Table 10. GHG Emissions and Intensity Ratio, ANJ Group (305-1, 305-2, 305-4)

        Items               Unit               2023                  2022              2021              Base Year

                                                      GHG Emission
                                                         Scope 1
      ANJ Group          Ton CO2 eq           237,636                301,833          344,881            1,394,534
     Palm Oil Unit       Ton CO2 eq           200,556                239,806          340,281            1,394,534
                                                         Scope 2
      ANJ Group          Ton CO2 eq             6,119                    4,340           2,293                1,876
     Palm Oil Unit       Ton CO2 eq             4,753                    2,384           1,970                1,876
                                                         Scope 3
      ANJ Group          Ton CO2 eq            25,502                   25,501         12,098                  N/D
     Palm Oil Unit       Ton CO2 eq            25,468                   25,493         12,098                  N/D


                                                  Total GHG Emissions
      ANJ Group          Ton CO2 eq           269,257                331,675          359,272            1,396,411
     Palm Oil Unit       Ton CO2 eq           230,777                267,684          354,349            1,396,411


                                                    Sinks and Credits
     Selling shell       Ton CO2 eq           (29,165)               (35,974)         (18,001)                 N/D
   Excess electricity    Ton CO2 eq           (13,873)               (20,730)          (7,608)                 N/D


                                                   Net GHG Emissions
      ANJ Group          Ton CO2 eq           226,219                274,970          333,663            1,396,411
     Palm Oil Unit       Ton CO2 eq           187,740                210,979          328,740            1,396,411




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     Table 11. GHG Emissions Intensity (Scope 1&2)

                                                     GHG Emissions Intensity (Scope 1&2)

                                                   Unit                    2023            2022              2021        Base Year
     ANJ Group
                                      Ton CO2 eq/ million USD             396.95           508.10            538.08       2,968.31
     (including sequestration)
     Palm Oil Unit
                                      Ton CO2 eq/ Ton CPO Produced           1.00            1.31              1.80           8.16
     (including sequestration)
     Palm Oil Unit                    Ton CO2 eq/ Ton CPO Produced
                                                                             6.98            7.97              7.76           8.49
     (without sequestration)



     Table 12. Net GHG Emission Intensity (305-4, 305-5)

                                                          Net GHG Emissions Intensity
                                                   Unit                    2023             2022               2021      Base Year
     ANJ Group                        Ton CO2 eq/ million USD             368.39           456.31             517.14        2,968.28
     Palm Oil Unit                    Ton CO2 eq/ Ton CPO Produced          0.66             0.77               1.25              7.24




     Emissions Reduction Initiatives                                      efforts to mitigate climate change. We also exercise a
                                                                          flaring method where the gases produced from POME are
     (POJK51-B.2.b, POJK51-F.12)
                                                                          directed to a Gas Scrubber, which filters out unwanted
                                                                          gases that are not needed as fuel for generators. There
     As part of our ongoing commitment to environmental
                                                                          are two outcomes from this filtration process: (a) some
     stewardship and sustainability, we, at ANJ, are proud to
                                                                          gases are captured by water and recirculated back to
     share the significant strides we have made in reducing
                                                                          the waste pond, and (b) other gases are trapped in a
     emissions across our operations. Most notably, this year
                                                                          filter, forming a powder-like material that is periodically
     we recorded an 83.8 decrease in GHG emissions from
                                                                          washed and disposed of in the waste pond. Since there is
     baseline, which puts the Company on track to achieve the
                                                                          no storage facility for the gas, excessive production leads
     coveted goal of Net Zero by 2030. Our primary focus for
                                                                          to the surplus being burned off using a flaring method.
     reducing greenhouse gas emissions are emissions from
                                                                          This ensures that all types of gases are combusted,
     land use, industrial processes, and energy consumption.
                                                                          preventing the emission of greenhouse gases (GHGs)
     Additionally, our commitments to avoiding deforestation
                                                                          into the atmosphere. Flaring is only activated when
     and our efforts in forest conservation contribute to
                                                                          production exceeds the immediate usage needs.
     reducing emissions from land use change and enhancing
     the carbon sequestration capacity of the forest areas
                                                                          • Harnessing Renewable Energy with Solar Cell
     we conserve. This year, emission reductions occurred
                                                                            Integration and Biogas Power Plants: In our pursuit
     in Scope 1, where there was a reduction in diesel fuel
                                                                            of sustainability, we are utilizing renewable energy
     usage. (305-5)
                                                                            sources to power our operations. Our strategy includes
                                                                            the construction of biogas power plants at selected
     Our path to sustainability is marked by a thoughtful
                                                                            mills, which use biomass for energy production. This
     series of initiatives aimed at reducing our carbon
                                                                            initiative not only helps us to reduce our reliance on
     footprint and supporting the ecological balance of the
                                                                            fossil fuels but also enhances our overall greenhouse
     areas we operate in. Some of the practical steps we have
                                                                            gas emission reduction performance. The application
     taken towards this goal include:
                                                                            of solar panels at GMIT resulted in a 19% reduction in
                                                                            GHG emissions from the factory in its first year. This
     Methane Capture from Palm Oil Mill Effluents (POME):
                                                                            year, we increased our renewable energy portfolio to
     Recognizing the critical role we play in combating
                                                                            43%, nearing our target of 60% by 2025.
     climate change, we have prioritized the reduction of
     emissions from Palm Oil Mill Effluents. Our methane
                                                                          • Natural Pest Management: We are dedicated to
     capture initiatives are a testament to this commitment.
                                                                            minimizing the use of chemicals in managing pests and
     By capturing methane, a greenhouse gas far more potent
                                                                            diseases. Our Research & Development Department,
     than CO2, we’re not only preventing its release into the
                                                                            as part of our Integrated Pest Management Program,
     atmosphere but also contributing significantly to global
                                                                            has investigated the use of biological predators, such



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A Worker spraying POME onto empty fruit
           bunches to produce compost.




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     Our composting plant in SMM, East Belitung.




        as Barn owls (Tyto alba), to control rat populations,        of our estates, ANJAS in North Sumatra and SMM in
        and biological pesticides, such as the bacteria Bacillus     Belitung, have been equipped with composting plants
        thuringiensis and the fungi Metarrhizium anisopliae,         since 2015 and 2016 respectively, with a combined
        to address the infestation of bagworms or Metisa             capacity to produce 89,025 tons of compost by 2023.
        Plana Walker. Employing biological controls enables          In 2022, we began constructing our third composting
        us to reduce our reliance on chemical pesticides,            plant at KAL in West Kalimantan, which was completed
        which can negatively affect the environment and              in 2023.
        contribute to climate change. This method helps
        us maintain a balanced ecosystem and reduces our           • Installation of the Electrostatic Precipitator at
        dependence on chemical pesticides, in alignment              KAL and PMP : We have implemented a significant
        with our goal of promoting biodiversity and ecological       environmental protection measure by installing an
        health. (13-6-1)                                             electronic precipitator. This device is mounted in
                                                                     the smokestack of the factory, serving a crucial role
     • Composting to Enhance Soil Health: Composting                 in filtering particulates or ash from the factory’s
       transforms palm fruit waste from our milling                  exhaust gases. The electronic precipitator ensures
       operations, known as empty fruit bunches (EFB), into          that emissions released into the atmosphere are
       organic fertilizers that can be used as alternatives to       significantly cleaner by capturing a high percentage
       inorganic fertilizers and have lower GHG emissions.           of the particulate matter before it can be emitted.
       Fertigation, which involves injecting a precise amount
       of fertilizer into our plants through drip irrigation       Our multifaceted approach to emissions reduction
       systems, is much more efficient and can reduce              reflects the depth of our commitment to responsible
       our overall fertilizer usage. By 2030, our goal is for      business practices.
       each estate to have its own composting facility. Two




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Energy Consumption (POJK51-B.2.a)

Table 13. Total Energy Consumption (POJK51-F.6, POJK51-F.7, 302-1, 302-3)


                           Renewables (in GJ)                                Non-renewables (in GJ)
                                                                                                                                       Electricity
                                                                                                                     Purchased           Sold to         Total energy
  Year                                                             Gasoline,                                         electricity        National         consumption
                                          Solar                                                                        (in GJ)            Grid              (in GJ)
              Biogas       Biomass                     Total       Pertalite,         Diesel           Total
                                          Power                                                                                          (in GJ)
                                                                   Kerosene



                                                                   ANJ Group, including Palm Oil

    2023       3,606        117,665          503      121,774        9,368          162,315            171,683          29,830           36,790              286,497

    2022       3,521        118,842             8     122,370        6,186          206,899            213,085          22,831           35,638              322,648

    2021       3,488        103,459             8     106,954       21,322          147,954            169,276          17,605           33,848              259,988

                                                                              Palm Oil Unit

    2023       3,606        117,665             0     121,271        7,200          126,721            133,920          20,476           36,790              238,877

    2022       3,521        118,842             8     122,370        5,680          129,049            134,729            9,163          35,638              230,625

    2021       3,488        103,451             8     106,947       21,145            93,013           114,158          10,610           33,848              197,867

 Notes:
 1. Biogas, biomass, and electricity consumption are measured in kWh, the conversion factor is 1 Kwh = 3.6 MJ (WRI, 1987)
 2. Solar power use is estimated based on a 10 hour/day usage of 9W light bulbs, for 30 days/month, measured in kWh. The conversion factor is 1 kWh = 3.6 MJ (WRI, 1987)
 3. Diesel consumption is measured in liters, the conversion factor is 1 liter = 0.036 GJ (IPCC, 2006)
 4. Kerosene consumption is measured in liters, the conversion factor is 1 liter = 0.03768 GJ (Statistic Canada, 2005)
 5. Gasoline consumption is measured in liters, the conversion factor is 1 liter = 0.03466 GJ (Statistic Canada, 2005)
 6. Pertalite consumption is measured in liters, the conversion factor is 1 liter = 0.03276 GJ (deepresource.wordpress.com, 2012; WRI, 1987)




Energy Intensity by Total Asset                                                          not uniformly observed across all ANJ estates, largely
                                                                                         due to the unique energy supply challenges present
(POJK51-F.6, 302-3)
                                                                                         in some operating regions. For instance, our sago
                                                                                         factory in Southwest Papua relies on diesel fuel for
ANJ produces a variety of products, leading to varying
                                                                                         energy generation as it is not connected to the national
intensities in resource utilization, which uses the value
                                                                                         electricity grid.
of assets as its denominator. In comparing our energy
consumption trends to last year, we observed a 5%
                                                                                         Our energy management data collection methodology
decline in the utilization of renewable energy, primarily
                                                                                         encompasses a comprehensive approach to ensure
attributed to the decreased usage of palm kernel shells
                                                                                         accuracy and efficiency. We begin with daily/monthly
for turbine operations. The strategic decision to reduce
                                                                                         recording of relevant data points, which serves as
the use of palm kernel shells aligns with our efforts to
                                                                                         the foundation of our monitoring process. This is
transition to more stable and reliable energy sources,
                                                                                         complemented by monthly reporting to track trends and
specifically, electricity supplied by PLN, the state
                                                                                         identify any deviations from established benchmarks.
electricity company. (302-3)
                                                                                         Enterprise Resource Planning (ERP) software is used
                                                                                         to facilitate streamlined data management; however, in
Simultaneously, we made significant strides in reducing
                                                                                         instances where ERP is unavailable, we resort to manual
our reliance on non-renewable energy sources. For
                                                                                         forms to ensure continuity. Periodic data analysis allows
instance, our diesel usage, primarily for operational
                                                                                         us to gain deeper insights into our energy management
activities, decreased by 22% in 2023, thanks to production
                                                                                         practices, enabling us to make informed decisions
efficiency initiatives at ANJAP.
                                                                                         and optimize our strategies for sustainable resource
                                                                                         utilization. (302-4)
ANJ is actively pursuing an energy mix strategy aimed at
boosting productivity while ensuring a more dependable
energy supply and minimizing emissions. However, this
transition away from non-renewable energy sources is




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                    Total Energy Consumption                                 Energy Intensity
                    (In GJ)                                                  (In GJ/ Million)


                2023                      286,497                          2023                     467
                2022                           322,648                     2022                        535
                2021                           259,988                     2021                        403




     Renewable Energy                                            used to produce electricity from biogas. This electricity
     (POJK51-F.5, POJK51-F.7)                                    is then sold to the National Electricity Company (PLN)
                                                                 as a renewable energy source. We have set targets to
     Our renewable energy initiatives are focused on capturing   increase our renewable energy usage, with plans to
     methane, reducing our reliance on fossil fuels, and         implement biogas projects across all our palm oil mills
     lowering our overall greenhouse gas (GHG) emissions.        for energy optimization. We expect to bring at least one
     At present, renewable energy constitutes 43% of our         more methane capture facility in the near future and are
     total energy consumption, with the majority coming from     considering the development of a BioCNG plant at our
     biomass in the form of palm shells and fibers, which        ANJA plantation. (302-3)
     are by-products of our production cycle. This biomass
     powers the turbines at our ANJA, ANJAS, SMM, KAL            In 2023, we established a rooftop solar panel system at
     and PMP mills. Over the years, this project has led to      GMIT, marking a significant step in ANJ’s commitment to
     a steady increase in our use of renewable energy while      promoting renewable energy use in our operations. The
     decreasing our dependence on diesel. (302-3)                rooftop solar panels have an annual capacity of 356,948
                                                                 kWh and, alongside demonstrating the value that ANJ
     We recognize the potential of methane capture to both       places in investing in sustainability also sets an example
     expand our operations and reduce methane emissions,         to others within our industry. We are already seeing
     while also generating renewable energy. Since 2013,         our pioneering step changing mindsets in Jember, East
     we have operated a methane capture project at our           Java’s industrial area; showcasing our leadership in
     SMM plantation, where palm oil mill effluent (POME) is      adopting clean energy solutions.




     Our Biogas Plant in AANE, East Belitung




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                PIONEERING RENEWABLE ENERGY:
                GMIT’S INITIATIVE TO REDUCE CARBON EMISSIONS

                As a company at the forefront of agribusiness,          choice to embrace renewable resources into
FEATURE STORY

                PT Gading Mas Indonesia Teguh (GMIT) remains            the company’s operation, where it is expected
                humbly aware of its responsibility towards              to supply 15% of the factory’s operational
                the environment. In October 2023, GMIT, in              electricity needs.
                partnership with SUN Energy, initiated a
                sustainable leap forward by installing a solar          Imam Wahyudi, CEO of GMIT, emphasized
                power generation system on the roof of its              that the solar power system is a concrete
                factory in Jember, East Java. Located in Jember,        implementation of integrating Environmental,
                East Java, GMIT represents ANJ’s commitment             Social and Governance (ESG) aspects into the
                to sustainable practices and innovation in the          Company’s business processes. In the face
                agricultural industry. This collaboration marks         of urgent climate change challenges, ANJ
                a significant step towards environmental                demonstrates that the agribusiness sector can
                sustainability, aligning with ANJ’s commitment          play a role in minimizing environmental impacts
                to reducing its operational impact on the               by optimizing renewable energy sources.
                environment.
                                                                        The solar power system installed represents an
                ANJ aspires to become a world-class                     estimated annual energy generation of 356,948
                agribusiness food company that enhances the             kWh. This initiative is projected to reduce
                quality of life for people and nature. By 2030,         carbon emissions by 226 tons each year, an
                ANJ has set ambitious targets to achieve Zero           environmental impact equivalent to planting
                Carbon Emissions, reduce fossil fuel energy             approximately 4,001 trees for ten years.
                consumption by 20% and increase its renewable
                energy portfolio to over 65% by 2025.                   This achievement underscores the Company’s
                                                                        commitment to renewable energy and its
                In realizing its ambition, ANJ has introduced           effective contribution to combating climate
                various energy efficiency programs company-             change, reflecting a tangible effort towards a
                wide, with the integration of solar panels at           greener, more sustainable future. ANJ hopes
                the GMIT facility being a strategic addition            that this program can inspire other companies
                to its energy mix. Considering Indonesia’s              in Jember District to take similar steps, as we
                abundant sunshine, GMIT’s shift towards solar           believe that collective actions will only lead to
                energy to reduce its dependence on grid-                bigger impacts.
                supplied electricity is a reflection on conscious




                Solar panels installed on the roof of GMIT factory in
                Jember, East Java.




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     Energy Efficiency Initiatives                                                mills and buildings, have installed solar cells at our
                                                                                  estates, and utilize various energy-efficient technologies
     (POJK51-F.7)
                                                                                  and designs. We conduct regular maintenance of our
                                                                                  engines and vehicles to improve fuel efficiency and
     Our energy efficiency efforts are focused on reducing
                                                                                  decrease fuel consumption. Considering that ANJ’s
     costs and energy consumption. The most significant
                                                                                  finished products do not require energy for operation,
     savings are achieved by repurposing surplus energy
                                                                                  unlike electronic devices or vehicles, it is worth noting
     from our biomass-powered turbines, which supply
                                                                                  that our finished products do not involve energy
     electricity to our mills, residences, commercial
                                                                                  consumption. In 2023, the energy reduction directly
     buildings, places of worship and other estate facilities.
                                                                                  associated with production amounted to 56,208.24 GJ.
     Additionally, we employ energy-saving bulbs in our
                                                                                  (302-4, 302-5).


     Table 14. Energy Reduction (302-4)


                                                                                                   2023              2022             2021
                                                                              Type of Energy
      No         Program
                                                                                 Reduced
                                                                                                   (GJ)              (GJ)             (GJ)

      1          Using biomass turbines for non-processing energy             Diesel fuel        41,328.02         38,524.16        12,484.10


      2          R2G (Rotary Removal Grit)                                    Electrical          4,013.47          3,334.32           580.50

                 Deactivation of the pump in Pond 5 in the waste
      3                                                                       Electrical          1,042.70          1,277.04           449.30
                 area

      4          Reducing power of LTDS 2 Fan                                 Electrical          3,464.86          5,804.76           404.00

                 Optimization of High-Speed Separator Pumps for
      5                                                                       Electrical            506.16            494.73           373.40
                 mud processing

      6          FFB grading conveyor                                         Electrical          1,743.24                  -          191.20

                 Modification of unconventional tin pump system
      7                                                                       Diesel fuel           440.23             19.01           155.70
                 from diesel to electric

      8          Optimization of the electromotor oil pump                    Electrical            363.67            240.82           114.60

      9          Modification of machines from diesel to electric             Diesel fuel           357.04            258.44               46.10

      10         Teleconferencing                                             Diesel fuel            66.29             98.02               42.70

                 Operational transport restrictions for guest and
      11                                                                      Diesel fuel            23.21             65.88               38.20
                 staff pickup Service

      12         SCADA for Automatization                                     Electrical             33.01             37.03               36.90

      13         Switch to energy-saving light bulbs and AC                   Electrical            125.82            256.62               35.40

      14         AutoMix Treatment                                            Electrical             12.37             15.49               15.60

                 Installation of automatic switches (Legrand Timer,
      15                                                                      Electrical          2,400.47             79.39                6.30
                 Photocell)

      16         Solar cells                                                  Electrical             12.41             10.26                0.90

       TOTAL REDUCTION OF ENERGY CONSUMPTION                                                     56,423.57         50,515.98        14,974.90

      Note:
      1. Methodologies and conversion factors are described in Appendix 06.
      2. The reduction baseline is based on a business-as-usual scenario.




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Our Palm Oil Mill
at KAL, Ketapang, West Kalimantan



Air Pollution and Particulate Matter                                                     environment, but also for our workers who work in the
                                                                                         mills and are exposed to particulate matter, which can
The dust and smoke from our mills and boilers                                            be harmful to respiratory health.
contain Nitrogen Oxides (NOx), Sulfur Oxides (SOx) and
particulate matter. We have installed an electrostatic                                   Our EHS department reports NOx, SOx, and particulate
precipitator (ESP) at our mills in KAL and PMP to reduce                                 matter emissions to the local Environmental Agency, in
air pollution. Using the power of an induced electrostatic                               accordance with regulatory standards. We measure NOx
charge, the ESP is designed to effectively remove tiny                                   and SOx levels every six months in factories, offices, and
particles from our mill emissions without the need for a                                 residential areas. At the source, direct particulate counts
filter. In doing so, it reduces particulate matter pollution.                            are measured in the electrical generator and boiler
The installation of the ESP is not only beneficial for the                               chimneys.


Table 15. Nitrogen Oxides, Sulfur Oxides, and Other Significant Air Emissions (305-7)


                 Emissions                               Unit                       2023                             2022*                              2021

 NOx                                                       Kg                      430,664                          455,107                             246,553

 SOx                                                       Kg                       47,010                          217,299                              80,117

 Particulate Matter                                        Kg                      172,384                          232,945                             117,151
   *Information was restated due to improvement of data collection
   Notes:
   1. These emissions cover mills at SMM, ANJAS, ANJA, KAL, and PMP only
   2. Calculations are made based on site-specific data
   3. Amounts are in Kg per year, calculated by multiplying the amount of NOx, SOx, and PM measured in mg per m3 of air emitted in our mill chimneys,
      with the flow rate of air in m3/second, and the total operating hours of the mill in the year.




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     COMMITTING TO SUSTAINABLE PRACTICES
     IN WASTE MANAGEMENT




     Our Palm Oil Mill at KAL,
     Ketapang, West Kalimantan                      Our palm oil factory at PT KAL has installed an Electrostatic Precipitator
                                                    (ESP), and there has been a reduction in boiler concentration based
                                                    on test results from 2022 to 2023. The boiler concentration at KAL
                                                    decreased from 111.7 mg/m³ to 42.15 mg/m³. However, the reduction
                                                    in emission load was not very significant due to operational hours and
                                                    flow rate. Over 99% of the waste we generate annually is derived from
                                                    our agricultural operations. The remaining fraction is classified as
                                                    “non-processing waste,” which encompasses a variety of items such
                                                    as machine and car parts, paper, and domestic waste. Additionally,
                                                    our operations produce hazardous waste, including used oil, neon
                                                    bulbs, medical waste and pesticide packaging. If not managed
                                                    appropriately, this waste can lead to environmental pollution and
                                                    adverse health effects for employees and surrounding communities.
                                                    However, we are committed to responsible waste management and
                                                    adhere to the principles of reduce, reuse, and recycle (3R) to mitigate
                                                    these impacts and promote sustainability.



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        Flowchart 01. Waste Generation and Significant Waste-related Impacts (306-1)


                                                             PALM OIL PLANTATION


                 Upstream                                                Own Activity                                             Downstream




                                                                                 Hazardous and                                   Hazardous and
                                 Fertilization                                    Toxic Waste                                     Toxic Waste
                                                                                     306-3                                         Collector
                 Fertilizer
                                                                                                                                    306-5-c
                  Sacks



                                  Planting                Upkeep               Non-Hazardous and                                Non-Hazardous
                                                                                  Toxic Waste                                      and Toxic
                   Oil in                                                            306-3                                      Waste Collector
                 the drum                                                                                                        (Non Organic)
                                                                                                                                    306-5-c

                                   Nursery               Harvesting

                                                                                                             Reuse
                  Chemical                                                           Recycle
                                                                                                        Fertilizer sacks
                 packaging                       306-1                               306-4-a
                                                                                                          306-4-d-1




                                                                                Recycle Scraps,
                  Polybed                                                       Polybed, Plastics
                                                                                   306-4-d-1



                                                                              CIRCULAR ECONOMY
                    Iron
PHASE




                                     Product 1 Fresh
                   Plastic/
                                       Fruit Bunch
               Non- Hazardous
                                          306-1
               and Toxic Waste
                 Packaging
                                                                      Recycle Kernel shells,         Recycle Scraps,
                                                                        Fiber, EFB, Paper           Composts, Plastics
                                                                            306-4-d-1                  306-4-d-1
                   306-1




                                        Processing                                                      Recycle
                                      (Palm Oil Mill)                                                   306-4-a


                                                                       Non-Hazardous and
                                          306-1                           Toxic Waste
                                                                            306-3-a                                             Non-Hazardous
                                                                                                                                and Toxic Waste
                                                                                                                                   Collector
                                                                                                                                 (Non Organic)
                                                                              CIRCULAR ECONOMY                                      306-5-c




                                                                         Hazardous and                                           Hazardous and
                                                                          Toxic Waste                                             Toxic Waste
                                                                                                                                   Collector
                                                                            306-3-a                                                 306-5-b


                                      Product 2 CPO
                                          306-1




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     Our Waste Management Approach                                    • Domestic waste is fermented to produce eco-enzymes,
                                                                        which we utilize as detergent. In this reporting period,
     (POJK51-B.2.c, POJK51-F.14)
                                                                        we have successfully piloted the use of eco-enzymes
                                                                        as organic pesticides.
     As part of our Sustainability and Environmental Policies,
                                                                      • We implement 3R initiatives to reduce our non-
     we have implemented a range of Reduce, Reuse, Recycle
                                                                        processing waste, including eliminating plastic
     (3R) programs. Additionally, our operational subsidiaries
                                                                        bottled water and supporting environmentally friendly
     have established specific waste management policies.
                                                                        packaging, as well as applying the Extended Producer
     Our waste management objective is to decrease
                                                                        Responsibility (EPR) principles.
     the overall solid waste output from non-production
                                                                      • We also conduct activities to raise awareness about
     activities, enhance waste reuse and recycling, and
                                                                        3R among employees, suppliers, and contractors, and
     eliminate unregulated landfilling and waste incineration.
                                                                        reward their efforts and initiatives in this area. (306-2)
     Our targets are set with a medium-term perspective,
     spanning a five-year period. Our end goal is to have all
                                                                      Our waste management program also includes the
     of the waste from our estates covered by a 3R program,
                                                                      implementation of a “waste bank” system, known as
     thereby preventing disposal to landfills.
                                                                      “bank sampah” in Bahasa Indonesia. A waste bank
                                                                      operates on a concept like a traditional bank, but instead
     Our overall approach and circularity            measures
                                                                      of money, customers collect, segregate, and deposit
     encompass the following initiatives:
                                                                      waste. This waste is then weighed, valued, and recorded
                                                                      in their waste bank account, and its value can later be
     • Shells and fibers from our palm oil and sago crops are
                                                                      withdrawn like in a regular bank. In our case, waste is
       repurposed as biofuel for our boilers, replacing diesel
                                                                      collected by our employees and deposited at the waste
       fuel as part of our waste-to-energy initiative.
                                                                      bank. The collected waste is sold to third parties as raw
     • Palm oil empty fruit bunches are composted to create
                                                                      material for recycled products, while some of the waste
       organic fertilizers, which we use on our land as a
                                                                      is also recycled internally by the Company.
       sustainable alternative to inorganic fertilizers that
       emit greenhouse gases.


     Table 16. Our 3R Initiatives (306-2)


       No.                 Impact                                                  Initiatives

      1       Reduce the use of diesel,       • Palm fiber and kernel shells generated from CPO processing are used as boiler
              inorganic fertilizers, paper,     fuel to reduce diesel fuel consumption and waste.
              plastic, and organic waste      • Empty Fruit Bunches (EFB) are composted at our composting plant and then
                                                applied to oil palm plants as organic fertilizer to reduce the use of chemical
                                                (inorganic) fertilizers.
                                              • Reducing paper use by implementing digital technologies such as EPMS
                                                (Electronic Plantation Mobile System), eTIS (Electronic Traceability Information
                                                System), SIGAP application system (Sistem Aplikasi GMIT untuk Agricultura dan
                                                Pabrik), Digital Capital expenditure and fingerprint-based digital attendance
                                                machines.
                                              • Reducing plastic consumption by enacting a policy of not providing plastic bags for
                                                the customers of employee cooperatives and not supplying packaged drinks at the
                                                office.

      2       Reuse of the following          • Empty fertilizer sacks are reused for stabilizing slopes and embankments on
              materials:                        Company plantation lands to prevent erosion and reinforce the soil.
              Empty fertilizer sacks          • Empty fruit bunches are directly applied as organic fertilizers in oil palm
              Empty fruit bunches               plantations.
              Miscellaneous waste             • Reuse of waste such as tires, steel, pipes, plastic bottles, drums, and sacks
              Food waste                        as garden accessories, decorations, fences, road signs, breeding media for
                                                pollinating insects, planting media used by local communities, etc.
                                              • Organic solid food waste is composted and used as organic fertilizer for decorative
                                                plants in the housing complex.




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  No.                Impact                                                      Initiatives

 3.     Recycle scrap metals and          • Utilization of scrap metal for making tools to process plastic, known as “plastic
        plastic                             choppers”. Plastic choppers are used to cut or chop plastic waste.
                                          • Utilization of plastic waste with a mixture of boiler ash as raw material for making
                                            paving blocks.
                                          • Recycling used CPO seals as raw materials for making plastic products.
                                          • Use of scrap paper as log sheets.
                                          • Utilization used Ebor gold pole fiber, a harvesting pole, to make waterpasses. The
                                            waterpasses are used for measuring double terraces in the replanting area.
                                          • Reuse of chain conveyors as roller conveyors for boilers.
                                          • Utilization of scrap metal in mill areas, specifically angle iron and rattan iron, to be
                                            used as a fire hose binder.
                                          • Reuse of plastic waste for edamame seed processing.
                                          • Boiler ash is used for paving roads.

 4.     Eco-enzyme                        Fermentation of organic domestic waste to produce eco-enzymes, a multi-purpose
                                          liquid that can be used as organic detergents and cleaners.

 5.     Liquid smoke                      Utilization of scrap wood as liquid smoke (pesticide/natural disinfectant).

 6.     Palm cake reuse                   Palm cake is used as organic soil fertilizer and cattle feed.

 7      Reuse of filtered solid waste     Solid particles from POME are filtered using Geotubes and reused as fertilizers in the
        from Geotubes                     planted areas




Disposal of Waste

When not reused or recycled, our non-hazardous solid               Before disposal (shipment to third parties), Hazardous
waste is disposed of on-site, in monitored landfills, with         and Toxic Waste (B3 Waste) is stored in a Temporary
only a small proportion being outsourced to external               Hazardous Waste Storage Facility (TPS Limbah B3).
waste management companies. The collection, recycling,             The design of the TPS Limbah B3 building ensures
and disposal of our hazardous materials are managed                that there is no contamination of the stored B3 waste
offsites by licensed third parties, in accordance with legal       into the environment. This facility has received the
requirements. In line with their contracts, we monitor             necessary permits from relevant authorities and is
these external parties to ensure they adhere to all                subject to regular monitoring. The recording of B3 waste
applicable laws and industry standards. For monitoring             entering and exiting the facility (for shipment) is strictly
and supervising hazardous waste management, we use                 maintained and regularly inspected by both internal
the Ministry of Environment and Forestry’s (MoEF) online           and external parties, including relevant authorities
electronic reporting system “Festronik.” (306-2, 306-5)            and independent agencies. Throughout the year 2023,
                                                                   there were no incidents of B3 waste leakage into the
In adherence to stringent environmental regulations                environment. (POJK51-F.15)
and safety protocols, we have procedures for the
management of Hazardous and Toxic Waste (B3 Waste).




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     Table 17. Waste Generated, Diverted from and Directed to Disposal in Metric Tons (POJK51-F.13)


                                                              Diverted
                                           Waste                                                                      Other                               Directed to
                                                                from             Reused           Recycled                            Temporary
                                         generated                                                                   recovery                               disposal
         Year         Category                                disposal         (306-4-c-i)       (306-4-c-ii)                          Collected
                                         (306-3-a)                                                                 (306-4-c-iii)                           (306-5-a)
                                                            (306-4-a/d)

                                             Ton                 Ton               Ton                  Ton             Ton                Ton               Ton

                   Production             589,571.40         582,749.50        198,863.75         100,919.01         224,146.22        58,850.52             6,821.91

                   Non-
                                               296.19             253.59            113.92                0.40                0.38         138.88                 42.60
                   production
        2023
                   Hazardous                     71.39                    -                -                  -                   -               -               71.39

                   Total                  589,938.98         583,003.09       198,977.67         100,919.41         224,146.60         58,959.40             6,935.90

                   Production             598,447.46         540,148.22        198,567.04         108,389.97         233,191.21        44,857.13            13,422.12

                   Non-
                                               279.85             131.59            125.41                6.18                    -        117.07                 31.19
                   production
        2022
                   Hazardous                   127.23                     -                -                  -                   -                              127.23

                   Total                  598,854.55         540,279.81       198,692.45         108,396.15         233,191.21         44,974.20            13,600.54

                   Production             552,645.66         468,844.79        177,614.61          79,405.49         211,824.69        71,563.13            12,237.74

                   Non-
                                               183.32               86.69             79.00               7.59                    -          40.15                56.48
                   production
        2021
                   Hazardous                     77.11                    -                -                  -                   -                               77.11

                   Total                  552,906.09         468,931.48       177,693.61           79,413.08        211,824.69         71,603.28            12,371.33

     Data sourced and processed from ANJ’s oil palm and sago management units. Measurement methods and conversion factors are described in Appendix 06.



     This year, we experienced an increase in production                                   Our waste management data collection methodology
     waste due to higher production levels. However, we                                    adopts a holistic approach to improve precision and
     successfully diverted this waste from disposal, as                                    effectiveness. It commences with the daily/monthly
     evidenced by a significant 99% reduction in the amount                                logging of relevant data points, forming the cornerstone
     of waste entering our onsite landfills. As a result, the                              of our monitoring system. This is then followed up by
     total amount of waste directed to disposal decreased                                  monthly reporting to observe trends and detect any
     from 13,600.54 tons in 2022 to 6,935.90 tons in 2023.                                 deviations from established benchmarks. Despite the
     This achievement is attributed to the success of our                                  constraints of manual data mining, we persistently
     waste management initiatives, such as composting                                      evaluate and monitor every data point because
     and converting biomass into energy. Meanwhile, there                                  periodic data analysis affords us deeper insights into
     has been an increase in domestic waste, partly due to                                 our waste management practices, empowering us to
     improvements in our monitoring and reporting of waste                                 make informed decisions and refine our strategies for
     generated in housing areas and offices. Despite this, we                              sustainable resource (306-2, 306-3, 306-4)
     have managed to reuse a significant amount of waste
     and avoid direct disposal, as detailed in Table 17 above.




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Household compost collecting in SMM is an initiative that supports
our goals for waste reduction.



Table 18. Waste Directed to Disposal in Metric Tons (306-5)


                                                                                  Directed to Disposal

     Year                          Category                          Onsite               Offsite                   Total

                                                                       Ton                 Ton                       Ton
                   Non-Hazardous                                      6,821.91             42.60                  6,864.51
      2023         Hazardous                                                  -            71.39                     71.39
                   Total                                              6,821.91            113.99                 6,935.90
                   Non-Hazardous                                     13,442.12             31.19                13,473.30
      2022         Hazardous                                                  -           127.23                    127.23
                   Total                                             13,442.12            158.42                13,600.54
                   Non-Hazardous                                     12,237.74             56.48                12,294.22
      2021         Hazardous                                                  -            77.11                     77.11
                   Total                                             12,237.74            133.59                12,371.33

Note: Waste disposed onsite is placed in monitored landfills.




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     COMMITTING TO THE SAFEGUARDING
     OF FOREST AND BIODIVERSITY (POJK51-B.2.D)




     OUR INDUSTRY CAN HAVE POTENTIALLY SEVERE
     IMPACTS ON THE ENVIRONMENT, INCLUDING
     DEFORESTATION, LOSS OF BIODIVERSITY, HABITAT
     ALTERATION AND REDUCED HOME RANGE SIZES
     FOR VARIOUS SPECIES. THE WIDESPREAD USE OF
     CHEMICAL PRODUCTS IN OUR OPERATIONS, SUCH
     AS FERTILIZERS, HERBICIDES, INSECTICIDES
     AND RODENTICIDES, MAY CONTRIBUTE TO SOIL
     AND WATER POLLUTION AND CONTAMINATION.
     ADDITIONALLY, THE WASTEWATER FROM PALM OIL
     MILLS CAN POLLUTE RIVERS, WHILE THE NOISE,
     SMOKE AND DUST GENERATED BY THEIR BOILERS
     MAY DISTURB LOCAL WILDLIFE."

     To demonstrate our commitment to environmental
     stewardship, ANJ has a dedicated conservation team
     responsible for planning, innovating, and monitoring
     efforts to protect forests and biodiversity in our operating
     areas. This team works to ensure that our operations have
     a minimal impact on the natural environment and that
     we actively contribute to the conservation of ecosystems
     and the diverse species that inhabit them. In 2023,
     ANJ concentrated on developing a focused biodiversity
     strategy, aiming to create a more holistic, comprehensive,
     and systematic approach to the implementation of
     biodiversity conservation throughout our business
     operations. This strategic focus underscores our
     commitment to integrating biodiversity considerations
     into all aspects of our operations, ensuring that our
     activities support and enhance the natural environment
     in which we operate. The implementation of this strategy
     will commence in 2024, although many of the activities
     are already ongoing.
                                                                                 Our conservation team conducts
                                                                                        regular observations and
                                                                                 monitoring in conservation area.




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    Table 19. Significant Impacts of Operations on Biodiversity (POJK51-F.9, 304-2)

    OIL PALM PLANTATIONS


                                                    Extent of          Duration of       Reversibility of
       Intervention       Potential Impacts                                                                        Impact Mitigation          Evidence/ Results
                                                     Impact              Impact             Impact

                                                                            DIRECT IMPACTS
     Manual              • Pollution of soil     Direct pollution     Duration and       Impacts on soil        • Refrain from using          • No chemical treatment
     application           and water             impacts can          magnitude of       and aquatic              chemical treatments           is used in areas close
     of inorganic                                occur in planted     impact correlate   biotopes can             (fertilizer or spraying) in   to rivers
                         • Reduction in soil,
     and organic                                 areas.               with the amount    be reversed              areas adjacent to river
                           fauna and flora                                                                                                    • 100% completion in
     fertilizers                                                      and type of        depending                boundaries
                                                 The run-off of                                                                                 the construction of
                         • Reduction                                  chemicals used,    on mitigation
                                                 chemicals and                                                  • Construct isolation           isolation ditches and
                           in aquatic                                 application        measures.
                                                 fertilizers into                                                 ditches and                   embankments
                           biodiversity (e.g.,                        methods,
                                                 waterways and                                                    embankments in
                           zooplankton and                            and climatic                                                            • Completed the biannual
                                                 wetlands can                                                     proximity to river
                           phytoplankton)                             conditions.                                                               river water analysis,
                                                 have downstream                                                  boundaries to prevent
                                                                                                                                                ensuring accurate
                                                 impacts.                                                         contamination from
                                                                                                                                                assessment of water
                                                                                                                  surface runoff
                                                                                                                                                quality
                                                                                                                • Carry out regular river
                                                                                                                  water analysis twice a
                                                                                                                  year to monitor water
                                                                                                                  quality and ecological
                                                                                                                  balance
     Use of manual       • Poisoning of          This is poorly       Impacts will       The long-term          • Dissemination of         • Conducted employee
     and chemical          fauna, either         understood, but      remain if          effects of               related information to     training and
     methods during        directly (e.g.,       likely effects are   chemicals are      chemicals on             workers                    socialization through
     cultivation           rodents feeding       in the immediate     used.              wildlife are poorly                                 the dissemination of
                                                                                                                • Not applying toxic
                           on rodenticides)      area around palm                        understood.                                         flyers and posters about
                                                                                                                  substances close to
                           or indirectly         trees.                                                                                      the harmful impacts of
                                                                                                                  conservation areas
                           (e.g., rodent                                                                                                     chemical substances
                           predators feeding                                                                    • Assessing the              in areas adjacent to
                           on poisoned                                                                            chemicals used             conservation areas
                           animals)                                                                               in cultivation in
                                                                                                                                           • ANJ has strictly
                                                                                                                  accordance with WHO
                                                                                                                                             prohibited the
                                                                                                                  standard
                                                                                                                                             application of toxic
                                                                                                                                             substances in areas
                                                                                                                                             close to conservation
                                                                                                                                             areas
                                                                                                                                           • Assessment of
                                                                                                                                             chemical use done
                                                                                                                                             annually
     Use of trucks for   • Injuries to fauna     The impact           Impact potential   Mitigation efforts     • Placing warning signs    • Signboards have been
     transportation        or death due          primarily occurs     remains for        can reduce the           in areas traversed by      placed along every road
     of FFB                to collisions or      on the road          as long as the     likelihood of            fauna                      near the HCV area.
                           encounters            network within       plantation is      wildlife collisions.
                                                                                                                • Building wildlife        • 3 units of arboreal
                                                 the plantations.     active.
                                                                                                                  crossings above and        bridges for wildlife have
                                                                                                                  in culverts underneath     been installed in KAL
                                                                                                                  roads                      and ANJAS


     Mechanical          • Liquid waste          The impact           Impact potential   Reducing the        • Building collection         • Collection ponds have
     processing of         (POME)                extends from         remains for as     biological and        ponds to process the          been installed in all site
     FFB                   can pollute           the palm oil         long as the mill   chemical oxygen       liquid waste                  operations
     .                     waterways.            mill with POME       is active.         demand of POME      • Using anaerobic and
                                                                                                                                           • The use of bacteria
                                                 concentrating in                        reduces the impact    aerobic bacteria to
                         • Dust and air                                                                                                      to control waste has
                                                 collection ponds.                       on aquatic flora      control the waste
                           pollution from                                                                                                    been exercised in all
                                                                                         and fauna.          • Building flatbeds in
                           the boilers           Potential                                                                                   business units
                                                                                                               the plantation area for
                                                 downstream                              Collection ponds
                         • Noise pollution                                                                     the utilization of liquid   • In all of ANJ's
                                                 impact after                            have some
                           from machine                                                                        waste as fertilizer           subsidiaries that
                                                 POME is released                        biodiversity
                           operation                                                                           additives                     already have palm oil
                                                 in the plantation                       benefits (wetland
                                                                                                             • Sending liquid waste          mills, composted waste
                                                 (as fertilizer) or                      birds).
                                                                                                               samples to accredited         materials are applied
                                                 into waterways.
                                                                                         Dust, air and noise   laboratories to analyze       to oil palm plants using
                                                 Dust, air and                           pollution can be      the liquid waste content      the flatbed system.
                                                 noise pollution                         reduced.
                                                                                                             • Conducting                  • Sending of liquid
                                                 reduce with
                                                                                                               standardized                  waste samples to labs
                                                 distance from
                                                                                                               ambient air quality           ccompleted in all units
                                                 the mill, but
                                                                                                               measurements (2x/             of operation
                                                 the impact on
                                                                                                               year)
                                                 biodiversity is                                                                           • Air quality
                                                 unclear.                                                                                    measurements
                                                                                                                                             conducted twice in 2023




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                                              Extent of         Duration of       Reversibility of
  Intervention       Potential Impacts                                                                    Impact Mitigation             Evidence/ Results
                                               Impact             Impact             Impact

                                                                     INDIRECT IMPACTS
Improved            • Increased           Plantations and      The threat of      Awareness and        • Conduct patrolling to       • The number of illegal
road access           hunting and         HCV areas            these impacts      enforcement            deter illegal logging         logging camps has
increases illegal     unsustainable                            remains as long    can effectively        activities                    decreased to zero.
logging, hunting      wildlife collection                      as roads remain    minimize this
                                                                                                       • Engagement with illegal • W Wildlife snares were
and poaching                                                   open.              threat.
                    • Illegal logging                                                                    loggers and providing     encountered on patrols
threats.
                                                                                                         opportunities for         and the team conducted
                                                                                                         legitimate employment     follow-up actions to
                                                                                                                                   address this
                                                                                                       • Engagement with
                                                                                                         local communities       • In 2023, the PENDAKI
                                                                                                         to raise awareness        program went through
                                                                                                         about the importance      digital transformation
                                                                                                         of biodiversity           enhancing data visibility
                                                                                                         conservation              and accuracy, selection
                                                                                                                                   of PENDAKI champions
                                                                                                       • Use of the PENDAKI
                                                                                                                                   to further incentivize
                                                                                                         program to increase
                                                                                                                                   the engagement
                                                                                                         biodiversity awareness
                                                                                                         among staff             • Availability of a wildlife
                                                                                                                                   encyclopedia as a
                                                                                                                                   knowledge reference
                                                                                                                                   for employees and the
                                                                                                                                   community
                                                                                                                                     • The efforts are
                                                                                                                                       successful, as indicated
                                                                                                                                       by the presence of
                                                                                                                                       species that are
                                                                                                                                       overhunted elsewhere
                                                                                                                                       (e.g. Hornbills, Magpie
                                                                                                                                       Robin, Hill Mynahs)

The use of         • Fast-growing          Primarily           The threat         Impacts can          • Manage the silvicultural • Management control
invasive species     groundcover           affecting forest    remains if         be effectively         (climber cutting,          has been able to
(e.g., Mucuna)       crops and             edge of HCV         invasive species   mitigated through      removal of Mucuna and      minimize the presence
affects species in   other pioneer         areas               are used in        silvicultural          other invasive species)    of invasive species in
HCV areas.           species used                              plantations.       treatment.                                        HCV areas.
                     in plantations
                     can invade HCV
                     areas and reduce
                     ecological health.
Water table         • Peat and peat        This could affect   The impact         Most impacts        • Conduct soil subsidence      • Availability of
management            forests in HCV       peatlands in        depends on         can be avoided        management/                    subsidence data in
in HCV areas          areas could dry      planted areas and   water table        in HCV areas          monitoring                     HCVs
surrounding           out if the water     HCVs.               management.        if water levels
                                                                                                      • Conduct peat water           • Availability of
plantations           table is kept too                                           in surrounding
                                                                                                        table monitoring in            subsidence data in
                      low, affecting                                              canals are kept
                                                                                                        planted blocks                 planted areas
                      plant and animal                                            adequately high.
                      life.                                                       In planted areas,   • Conduct water and            • Availability of water
                                                                                  this is more          drainage management            table data
                    • A low water
                                                                                  problematic as the
                      table could                                                                                                    • Efforts contributed to
                                                                                  water table needs
                      result in peat                                                                                                   the maintenance of
                                                                                  to be below the
                      decomposition                                                                                                    Green PROPER for KAL
                                                                                  peat surface to
                      and subsidence.
                                                                                  allow the growth of                                • Gambut (water table)
                    • Dry peat is more                                            palms and fruit.                                     level is in accordance
                      fire-prone and                                                                                                   with Government
                      fires could result                                                                                               requirements.
                      in the loss of
                      HCVs.

Isolation of        • A decline in         The impact          The impact         Impacts can be       • Development of forest       • Forest corridor in
wildlife in HCV       genetic health       is species-         can be reduced     partially reversed     corridors to connect          KAL and replanting of
areas                 and long-term        dependent. Some     over time,         by investing           separated areas and           riparian areas In ANJA
                      viability of the     species can more    either when        in improved            avoid animal isolation        and SMM
                      genetic pool         easily disperse     palms grow         ecological             Replanting of riparian
                                                                                                                                     • Availability of aerial
                                           between HCV         and wildlife       connectivity           areas
                                                                                                                                       photographs of
                                           areas than others   move through       between forested
                                                                                                       • Maintaining natural           corridors and riparian
                                                               planted areas,     areas and other
                                                                                                         forest trees within oil       areas in all of ANJ
                                                               or when forest     areas of high
                                                                                                         palm areas                    concession areas
                                                               corridors and      biodiversity.
                                                               steppingstones                                                        • The success of natural
                                                               are established                                                         forest tree maintenance
                                                               in a landscape.                                                         is indicated by the
                                                                                                                                       presence of migratory
                                                                                                                                       birds that use trees
                                                                                                                                       within oil palm areas as
                                                                                                                                       their transit place




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      SAGO FOREST (ANJAP)


                                                                       Duration of      Reversibility of
        Intervention     Potential Impacts    Extent of Impact                                                Impact Mitigation     Evidence/ Results
                                                                         Impact            Impact


                                                                        DIRECT IMPACTS

       Selective        • Sedimentation       Throughout the       Impact severity Impacts can be       • Conducting           • The Company
       harvesting                             sago area, except    varies with the  reduced through       standardized testing   works together
                        • Reduced water
                                              for conservation     intensity of     careful management.   of ambient air and     with accreditation
                          quality
                                              set-asides           management                             water quality as       bodies to monitor
                        • Air and noise                            (medium in                             well as noise levels   and test ambient
                          pollution                                harvested areas                        (2x/year)              air and water
                        • Potential impacts                        and low in areas                                              quality. In 2023,
                                                                                                        • Monitoring wildlife
                          are still being                          under natural                                                 2 tests were
                                                                                                          species
                          analyzed.                                regeneration).                                                completed.
                                                                                                                                    • Constant
                                                                                                                                      monitoring of
                                                                                                                                      wildlife species


                                                                        INDIRECT IMPACTS

       Waterway          • Increased          Sago area            The threat of      Awareness and          • Conduct regular      • Wildlife snares
       access              hunting and                             these impacts      enforcement can          patrols to deter       encountered
       increases the       unsustainable                           remains as long    effectively mitigate     illegal logging        on patrols have
       threat of illegal   wildlife                                as the area        this threat.             activities             reduced.
       logging, hunting    collection                              remains open
                                                                                                             • Engagement           • Efforts are on
       and poaching.                                               for use.
                         • Illegal logging                                                                     with illegal           track, as indicated
                                                                                                               loggers to provide     by the presence
                                                                                                               opportunities          of species that
                                                                                                               for legitimate         are overhunted
                                                                                                               employment             elsewhere
                                                                                                                                      (e.g., Hornbills,
                                                                                                             • Engagement with
                                                                                                                                      Magpie Robin,
                                                                                                               local communities
                                                                                                                                      Hill Mynahs,
                                                                                                               to raise awareness
                                                                                                                                      Cassowary
                                                                                                               about the
                                                                                                                                      and Dusky
                                                                                                               importance of
                                                                                                                                      Pademelon).
                                                                                                               biodiversity




      Many of our plantations and estates are situated near                          Furthermore, our projects often lead to increased
      conservation areas defined by the Ministry of Environment                      population and economic activity in the region, as new
      and Forestry’s (MoEF) Protected Area System.                                   roads and other infrastructure improve access in rural
      Additionally, some locations are classified as protected                       areas. Associated lands and forests are cleared for
      areas by the International Union for the Conservation                          residential areas and to make way for new agricultural
      of Nature (IUCN). Our activities may impact biodiversity                       activities, as well as logging, hunting, and poaching.
      in both our development areas and our protected                                While these developments can be positive for the local
      management areas, including High Conservation Value                            economy, they can have negative effects on biodiversity
      (HCV) areas, buffer zones, river systems, and any areas                        and carbon emissions.
      that are inhabited or traversed by wildlife.




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Table 20. Proximity of Operational Sites to Protected Areas (304-1)

                                                                                                                              Nearest
                                                              Geo Location
                                                                                                                           Protected Area            IUCN
 Operational                                                                             HGU Area                                                  Protected      Distance
                     Province          Regency                                                              Sector
    site                                                                                   (Ha)                                National              Area           (km)
                                                           Lat             Long                                               Legislation          Category
                                                                                                                                (MoEF)

     ANJA          North            North              1°28'07"N       99°55'37"E               9,465      Palm Oil       Batang Gadis                  II             57
                   Sumatra          Padang                                                                                National Park
                                    Lawas

    ANJAS          North            South              1°9'36"N         99°9'16"E               9,182      Palm Oil       Siondop Protected             -         adjacent
                   Sumatra          Tapanuli                                                                              Forest

     SMM           Bangka           East               2°56'17"S       107°52'57"E             16,277      Palm Oil       Senusur Sembulu               -               4
                   Belitung         Belitung                                                                              Protected Forest

      KAL          West             Ketapang           1°26'49"S       110°13'41"E             10,920      Palm Oil       Gunung Palung                 II              2
                   Kalimantan                                                                                             National Park

      GSB          South            Empat              3°44'10"S       102°45'28"E             12,800      Palm Oil       Nature Park Bukit             V             15.4
                   Sumatra          Lawang                                                                                Kaba

     PPM           Southwest        South              1°54'15"S       132°21'19"E             32,025      Palm Oil       Suabor Protected              -              3.5
                   Papua            Sorong                                                                                Forest

     PMP           Southwest        South              1°50'17"S       132°28'18"E             22,678      Palm Oil       Suabor Protected              -         Adjacent
                   Papua            Sorong and                                                                            Forest
                                    Maybrat

      ANJ          Southwest        Maybrat            1°43'07"S       132°32'33"E             36,506      Palm Oil       Suabor Protected              -         Adjacent
                   Papua                                                                                                  Forest

    ANJAP          Southwest        South              1°57'28"S       132°13'50"E            40,000         Sago         Suabor Protected              -         adjacent
                   Papua            Sorong                                               (IUPHHBK-                        Forest
                                                                                           HA Sagu)*

Notes:
1. IUPHHBK-HA: Izin Usaha Pemanfaatan Hasil Hutan Bukan Kayu - Hutan Alam (Business License for the Utilization of Non-Timber Forest Products – Natural Forest)
2. IUCN Protected Area Categories are used to classify protected areas.
   a. Category Ia : Strict Nature Reserve
   b. Category Ib : Wilderness Area
   c. Category II : National Parks
   d. Category III : Natural Monument or Feature
   e. Category IV : Habitat/Species Management Area
   f. Category V : Protected Landscapes or Seascapes
   g. Category VI : Protected Area with Sustainable Use of Natural Resources




Our Conservation Commitments                                                                 comprehensive Biodiversity Strategy that underscores
(POJK51-F.10)                                                                                our deep commitment to biodiversity protection and
                                                                                             management. This strategy presents a holistic approach
In line with our Sustainability Policy, ANJ is committed                                     designed to mitigate environmental impacts and foster
to the full protection and conservation of independently                                     positive outcomes for biodiversity across our operational
identified High Conservation Value (HCV) and High                                            areas and the broader landscape. It sets forth clear
Carbon Stock (HCS) sites, as well as biodiversity within                                     foundational principles, defines key success factors,
our planted areas, other areas within our land title                                         and is supported by core programs aimed at achieving
borders, and areas surrounding our land title boundaries                                     specific biodiversity targets. Our strategy is anchored
that are within our control or influence. This includes a                                    by six fundamental principles, encapsulated by the
commitment to avoid conservation areas and primary                                           acronym PLANET: promoting best practices, adaptive
forests with high biodiversity. In our operations, peat                                      management, engagement and partnership, landscape-
ecosystems, riparian zones, and hilly areas with a slope                                     level approaches, natural values accounting, and time-
grade of more than 40% are protected, and we are                                             based targets. These principles are instrumental in
dedicated to their complete preservation.(304-1)                                             guiding our efforts to minimize the ecological footprint of
                                                                                             our operations. We emphasize a mitigation hierarchy—
We adhere to all relevant rules and regulations relating                                     aiming to avoid impacts where possible, minimize
to environmental protection and conservation. We have a                                      those that are inevitable, and seek opportunities to
Conservation Policy, along with procedures concerning                                        enhance biodiversity beyond our immediate operational
HCV and HCS and protocols for the conservation of                                            boundaries. Key to the success of our biodiversity
protected flora and fauna. In 2023, we launched a                                            initiatives are specific, measurable targets. These include



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      maintaining stable populations of High Conservation                      Management’s standard operating procedures (SOP).
      Value (HCV) species, achieving zero human-wildlife                       This structured approach ensures that our operations
      conflict related to IUCN Threatened and Protected                        not only comply with environmental regulations but also
      Species in line with Indonesian regulations, establishing                implement sequential steps of the mitigation hierarchy
      a robust biodiversity monitoring program by 2025, and                    in biodiversity conservation. We strictly prohibit the
      integrating biodiversity accounting into the reporting                   harvesting, poaching, and hunting of protected flora and
      protocols of at least two business units by 2030. Each of                fauna, as well as all rare, threatened, and endangered
      these targets plays a vital role in tracking our progress                species. Hunting of unprotected and non-threatened
      and ensuring the sustainability of our biodiversity                      species is only allowed when sustainable use or hunting
      efforts. Additionally, our strategy incorporates the                     principles are applied. This protocol must also be
      approaches of avoidance, minimization, restoration, and                  rigorously followed by our suppliers.
      offset as outlined in our High Conservation Value (HCV)


      Table 21. Size and Location of Protected HCV Areas in
      Operational Sites (304-3)


                                                                               Concession Area
                                              Conservation                                                                % of total
             Operational site
                                                area (ha)           Nucleus        Plasma               Total          Concession Area

       ANJA                                        391.67*          9,465.00              -             9,465.00             4.13%

       ANJAS                                      1,464.03          9,182.00         157.50             9,339.50            15.68%

       SMM                                      1,381.31*          16,277.00         948.00           17,225.00              8.02%

       KAL                                        3,973.73         10,920.12       2,958.12           13,878.24             28.63%

       GSB                                        1,373.00         12,800.00              -           12,800.00             10.73%

       ANJ (Southwest Papua)                    36,505.93          30,515.75       5,990.18           36,505.93            100.00%

       PMP                                      17,131.74          18,860.30       3,818.11           22,678.41             75.54%

       PPM                                      27,374.32          26,570.70       5,454.48           32,025.18             85.48%

       ANJAP                                      8,150.00                        40,000.00           40,000.00             20.38%

       * Conservation areas were added at ANJA and SMM



      As of 2023, ANJ has set aside a total area of 97,745.73                  compensation area to complete the RSPO Remediation
      hectares for conservation within our concessions. These                  and Compensation Procedure.
      High Conservation Value (HCV) areas are managed in
      collaboration with local government, communities,                        Our conservation area in North Sumatra, adjacent to
      conservation      experts,    and      non-governmental                  a designated protection forest, encompasses riparian
      organizations (NGOs) such as Yayasan Konservasi                          buffer zones and forested areas that provide habitat
      Indonesia and Tropenbos Indonesia. Our conservation                      for the Sambar Deer, Great Argus Pheasants, and rare
      initiatives are driven by objective expert assessments                   Nepenthes (pitcher plants). In Belitung, our conservation
      and aim to preserve, if not enhance, biodiversity and                    area primarily consists of riparian zones planted with
      species richness in our conservation areas. In 2023, we                  forest and fruit trees, as well as the Balok forest, which
      continued efforts to develop specific biodiversity targets               is a habitat for the Tarsier, the world’s smallest primate.
      focusing on key species in our conservation areas,                       We engage the local community in Belitung in managing
      demonstrating our commitment to maintaining and                          the forest through initiatives such as forest patrols,
      improving the ecological integrity of these areas.[304-3]                ecotourism, and education.

      A total of 2,446.73 hectares are areas outside the HGU                   Our conservation area in West Kalimantan is part of the
      (Right to Cultivate). As of the reporting date, an area                  Essential Ecosystem Area, where we collaborate closely
      of 2,330 hectares has been proposed to RSPO as a                         with International Animal Rescue Indonesia, the Natural




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Resources Conservation Agency of the Indonesian                     such as the twelve-wired bird of paradise (Seleucidis
Government (BKSDA), and independent environmental                   melanoleucus). We actively seek collaboration with
researchers to protect the habitat of orangutans.                   local governments and communities to ensure optimal
According to the International Union for Conservation of            conservation and biodiversity protection in the region.
Nature (IUCN) and the Indonesian Government, this area              In 2022, we successfully obtained letters of support
is home to at least eight protected mammal species,                 from the governments of South Sorong and Maybrat
including Malayan sun bear, pig-tailed macaque, maroon              Regencies for our conservation initiatives. Additionally,
leaf monkey, and orang utans.                                       we have established a joint commitment with local
                                                                    communities to manage and protect conservation areas,
In Southwest Papua, our surveys have identified more                demonstrating our collective dedication to preserving
than 58 fauna and 25 flora species listed on the IUCN               the unique and diverse ecosystems of Southwest Papua.
Red List, including rare orchid species and birds


Table 22. IUCN Red List and National Conservation List Species, by December 2023 (304-4)

                                                           FAUNA

                   Total identified fauna species on the IUCN Red List                    CITES                            Protected
                                                                                                             Protected
                               (CR, EN, VU, NT, LC, DD, NE)                             (Appendix)                           under
        Class                                                              Total                               under
                                                                                                                            Ministry
                                                                                                             PP7/1999
                  CR    EN     VU     NT     LC     DD      NE       NA             I       II    III                       Decree

 Actinopterygii    0      0     1      1      28     1          2    11       44     0      0        0           0                0
 Amphibia          0      0     0      0      23     1          0     7       31     0      1        0           0                0
 Arachnida         0      0     0      0       1     0          3     2        6     0      0        0           0                0
 Aves              1      6    20     54     443     0          2    13      539     8     87        0         155             132
 Chilopoda         0      0     0      0       0     0          1     1        2     0      0        0           0                0
 Clitellata        0      0     0      0       0     0          0     1        1     0      0        0           0                0
 Diplopoda         0      0     0      0       0     0          1     0        1     0      0        0           0                0
 Gastropoda        0      0     0      0       0     0          0     1        1     0      0        0           0                0
 Insecta           0      0     1      0      55     1      117      18      192     0      2        0           1                1
 Malacostraca      0      0     0      0       2     1          0     0        3     0      0        0           0                0
 Mammalia          4    16     17     10      46     4          1     9      107    15     34        3          31               39
 Reptilia          1      3     7      1      90     2          0     7      111     0     36        0           8                8


                                                           FLORA

                   Total identified Flora species on the IUCN Red List                     CITES                            Protected
                               (CR, EN, VU, NT, LC, DD, NE)                              (Appendix)           Protected
                                                                                                                              under
      CLASS                                                                 Total                               under
                                                                                                                             Ministry
                                                                                                              PP7/1999
                  CR    EN    VU     NT      LC     DD     NE        N/A             I       II      III                     Decree

 Agaricomycetes    0     0      0      0      0      0       2         0        2    0       0           0           0           0

 Cycadopsida       0     0      0      1      0      0       0         1        2    0       2           0           0           0

 Gnetopsida        0     0      0      0      2      0       0         1        3    0       0           0           0           0

 Liliopsida        0     2      0      1     40      5     120        45     213     0      78           0           7           1

 Lycopodiopsida    0     0      0      0      1      0       2         3        6    0       0           0           0           0

 Magnoliopsida    10    23     37    28     311     15     303       145     872     0      29           0       14              5

 Pinopsida         0     1      1      1      2      0       1         1        7    0       0           0           0           0

 Polypodiopsida    0     0      0      0      4      0      19         7      30     0       2           0           0           0




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      Table 23. Number of Threatened Species (IUCN Categories CR, EN, VU) Identified through Biodiversity Monitoring
      Activities


                                                                                      2023            2022            2021

       Number of IUCN Red List Threatened Fauna Species                                77              80              71

       Number of IUCN Red List Threatened Flora Species                                74              53              39



      We are actively engaged in reforestation projects in both    initiatives are subject to third-party audits to ensure
      High Conservation Value (HCV) and degraded areas to          compliance. Audits conducted in 2023 confirmed that our
      restore ecosystems and enhance biodiversity. In 2023, we     conservation efforts align with RSPO and ISPO protocols.
      reforested 80 hectares in riparian buffer zones as part of
      our replanting projects in North Sumatra. These areas        In 2019, we launched the PENDAKI (Peduli
      were previously used for palm plantations, but during        Keanekaragaman Hayati or Care for Biodiversity) citizen
      our replanting program, we opted to introduce forest         science program to enhance our biodiversity monitoring
      plants to serve as a food source and habitat for wildlife.   efforts. The PENDAKI system encourages our employees
      Additionally, we have reforested a total of 50 hectares at   to record any flora and fauna they encounter while
      our KAL estate in West Kalimantan. (304-3)                   working in our conservation and plantation areas. Since
                                                                   the program’s launch, citizen scientists have submitted
      In total, ANJ has successfully planted 10,502 native         over 109,000 records. In 2023 alone, more than 800 new
      seedlings, covering an area of 48.05 hectares. These         citizen scientists joined the program, bringing the total to
      replanting activities span several of our operations,        3,200 participants. Our PENDAKI program was recognized
      including ANJA and SMM, where a combined area of             with the Outstanding Achievement Award at the RSPO
      33.08 hectares has been restored with 4,440 native           Excellence Awards in 2022 for its exceptional contributions
      seedlings. Specifically, 2,207 seedlings were planted        to conservation using innovative and creative methods.
      across 10.75 hectares at SMM, while 2,233 seedlings          This award highlights the program’s ability to facilitate
      were planted over 22.33 hectares at ANJA. (304-3)            biodiversity monitoring and management with minimal
                                                                   costs on a continuous, long-term basis.
      Moreover, our commitment extends to ANJAS, where
      1,930 native seedlings were planted across 3.4 hectares,     Starting in 2023, the PENDAKI program is embracing
      and KAL, which saw the planting of 3,697 seedlings           digitalization through the development of the PENDAKI
      across 8.84 hectares. This initiative at KAL not only        mobile phone application, which enhances the ease and
      continues our 2022 program but also includes the             efficiency of recording biodiversity observations. To raise
      enhancement of riparian zones, forests, and peatlands,       awareness about species presence in our estates, we are
      highlighting our multifaceted approach to environmental      utilizing social media to introduce these species to a wider
      conservation. Additional planting efforts were carried       audience. Additionally, we are creating flyers to familiarize
      out at PPM and PMP, with 85 native seedlings planted         people with the diverse species found in our areas. The
      over 0.49 hectares and 350 seedlings over 2.24 hectares,     PENDAKI website (www.pendaki.anj-group.co.id) was
      respectively. (304-3)                                        established to provide a comprehensive platform for
                                                                   information sharing and engagement. We have just
      These replanting initiatives are a testament to ANJ’s        recently introduced the “PENDAKI Champions” initiative,
      deep-seated commitment to environmental restoration          recognizing individuals who are especially active in
      and contributing to ecosystem health and diversity.          reporting, consistent in submitting reports, and accurate
      By actively engaging in these efforts, we are not only       in identifying species, complete with photos, locations,
      promoting the sustainability of our operational lands but    names, and other details. Out of the 3,200 PENDAKI
      also ensuring the conservation of vital habitats, acting     observers, 60 individuals were selected as champions.
      upon our responsibility towards the environment and          These champions will take the lead in raising awareness
      future generations.                                          about the significance of biodiversity within their respective
                                                                   regions. This program is voluntary, encouraging a sense
      Further to our conservation initiatives, our biodiversity    of community and commitment among our employees
      team lead biodiversity monitoring efforts, supported         and local residents in conservation efforts.
      by our employees and local communities through field
      surveys and camera trapping. Species identification          An encyclopedia of wildlifedetailing the species
      and recording are guided by the IUCN Red List, the           encountered in our SMM and KAL estates was completed
      Convention on International Trade in Endangered Species      to further enrich our educational resources. We are
      (CITES), and government regulations. Our conservation        currently working on developing similar encyclopedias for
                                                                   our sites in ANJAS.


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                PENDAKI: REVOLUTIONIZING BIODIVERSITY
                CONSERVATION WITH CITIZEN SCIENCE
FEATURE STORY




                Two conservation staff members monitor biodiversity in our
                conservation area in Southwest Papua, ensuring sustainable
                management of the ecosystem


                PENDAKI (Peduli Keanekaragaman Hayati –                      the oil palm sector. Over the past four years, the
                Caring for Biodiversity) stands as a cornerstone             PENDAKI system has yielded over 109,000 wildlife
                of our Responsible Development initiatives,                  observations of more than 600 reliably identified
                embodying our unwavering commitment to                       species. These achievements not only underscore
                preserving ecosystems and conserving nature.                 the enhanced efficacy of biodiversity monitoring
                To be successful in this regard, we need to                  but also contribute significantly to heightening
                monitor wildlife population trends. Traditionally,           awareness of biodiversity values among our
                biodiversity monitoring is achieved by                       employees.
                conducting species counts within specific areas.
                However, for informed and adaptive plantation                In 2022, we commissioned an independent
                management, population-level monitoring                      assessment to gauge participant perceptions of
                proves far superior. Yet, this method demands                PENDAKI. The resounding sentiment was one of
                extensive data collection, typically through                 pride in contributing to a company committed to
                resource-intensive methods such as widescale                 sustainable operations, with a profound dedication
                species surveys or camera trapping initiatives,              to biodiversity and environmental stewardship.
                all of which are costly and time-consuming.                  Building on this feedback, we initiated
                                                                             collaboration with "PENDAKI Champions" – our
                At ANJ, we have embraced a more cost-effective               most active citizen scientists who consistently
                and efficient approach rooted in citizen science:            record more than one observation daily. Sixty
                PENDAKI. Commencing in early 2019, PENDAKI                   individuals at each of the six estates where
                has become a highly respected program                        PENDAKI operates were selected as Champions.
                garnering enthusiastic participation from our                Throughout 2023, we provided intensive training
                employees. Over the past two years, external                 sessions, including a 4-day program at our
                interest has also increased as we amplified                  Belitung Island training facility in May for our
                communication surrounding the tangible                       Conservation Staff, focusing on both theoretical
                outcomes and advantages of a citizen science-                foundations and practical application of the
                based biodiversity monitoring approach within                PENDAKI Champion approach. Additional training



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  FEATURE STORY




                        A PENDAKI Champion embraces digitalization using
                        the PENDAKI Champion application to enhance the ease
                        and efficiency of recording biodiversity observations



                        in November delved into statistical modelling                    team. Real-time data uploads eliminate delays
                        techniques based on utilizing the R programming                  between recording and analysis, thereby
                        language, which is required for statistical                      allowing ANJ’s conservation staff to continuously
                        computing to model results from PENDAKI. This                    track species populations against time-bound
                        training equipped our Head Office Conservation                   biodiversity targets that reflect the management
                        Team with transferable skills to support their                   quality of our HCV areas and estates while
                        ongoing professional development beyond their                    effectively mitigating biodiversity threats. Gaining
                        roles in supporting PENDAKI Champions.                           insight into the specific population dynamics
                                                                                         allows us to tailor our estate management to
                        In September 2023, the selected Champions                        the unique needs of each species to ensure their
                        started using our in-house smartphone-based                      protection and conservation.
                        application, developed by our Information dan
                        Communication Technology (ICT) team, to record                   PENDAKI demonstrates that biodiversity
                        sightings of specific indicator species, providing               monitoring and conservation do not have to be
                        invaluable insights into population dynamics                     complicated. Despite being in its infancy, the
                        crucial for tailoring estate management                          app has already proven to be widely accepted
                        strategies to the unique needs of each species.                  and successful, with 84% of the PENDAKI
                        The PENDAKI Champion app offers an intuitive                     Champions consistently recording observations.
                        platform facilitating the recording of high-quality              This dedication culminated in more than 4,500
                        statistical occupancy data for 25 pre-selected                   observations logged within the app between
                        target species tailored to individual estates,                   September and December 2023. These early
                        including the Critically Endangered orangutans                   successes suggest a promising future the
                        in our West Kalimantan plantation, tarsiers in                   PENDAKI Champion app. Developing our
                        Belitung, or birds of paradise in Southwest Papua.               database through the addition of more species
                        By automating location tracking and observation                  records will only improve its utility, which we
                        input, the app ensures data integrity, enabling                  believe will serve as further justification for
                        accurate statistical analysis by our conservation                others to adopt such an approach.




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Table 24. Spending on the Conservation Department in USD


                           Subsidiary                                                     2023                                       2022                                    2021
 ANJA                                                                                     7,007                                      6,080                                    3,471
 ANJAS                                                                                21,804                                       24,186                                    39,628
 SMM                                                                                  26,604                                         8,008                                    4,566
 GSB                                                                                       166                                              -                                       -
 KAL                                                                                  61,647                                       25,642                                    26,389
 PPM                                                                                  13,844                                         9,898                                    3,866
 PMP                                                                                  21,392                                       36,441                                    25,904
 ANJ (Southwest Papua)                                                                53,162                                       32,278                                       319
 ANJAP*                                                                                           -                                         -                                   686
 Total                                                                             205,628                                       142,533                                  104,828
Note:* There were no conservation activities at ANJAP in 2022-2023




Using Biodiversity Richness Valuation

          BIODIVERSITY RICHNESS VALUATION                                                                                                                                    08 April 2024


          BIODIVERSITY RICHNESS VALUE                                                                                                           Shana Vida Gavron & João Frederico Berner
          Dashboard                                                                                                                                PT. Kayung Agro Lestari, Indonesia

                                                                                                             TOTAL CONSERVATION VALUE                                   USD 180,123,022



                                                                                                                                                         SPECIES EXISTENCE VALUE

                                                                                                                                                           Aesthetic Value

                                                                                                                               USD 145.0m                  Carbon Value

                                                                                                                                                           Economic Value



          INFERRED RICHNESS TREND
                                                                                                                   200
                                                                                  Birds
                                                                                  Invertebrates                    150
                                                                                  Herbivores
                                                                                                            USDm




                                                                                  Omnivores                        100
                                                                                  Predators
                                                                                  Pl ants & Fungi                   50
                                                                                  Fish & Amphibians
                                                                                                                     0
              2019         2020         2021       2022          2023                                                    Species Existence Value Impact Value Total Conservation Value


          ENDANGERED WILDLIFE OÜ               JUHKENTALI TN 8, 10132 TALLINN, ESTONIA                    WWW.ENDANGEREDWILD.LIFE




                                                                                                                          A snapshot of KAL Biodiversity Richness Value dashboard



ANJ operates within one of the largest biodiversity hotspots                                          from Endangered Wildlife OÜ. This assessment utilized
in the world, Indonesia. Therefore, it is essential that our                                          primary source data from PENDAKI, with information
sustainability agenda recognizes the importance of and                                                current as of December 2023. This was also the first time
actively invests in biodiversity conservation initiatives. To                                         that an assessment of this kind was conducted for an oil
justify ongoing and increased investment in conservation                                              palm plantation. The valuation was carried out for the KAL
projects, it is essential that ANJ garners sufficient support                                         estate, located in Ketapang Regency, West Kalimantan,
from its shareholders and communities. A Biodiversity                                                 and has been presented as a report which calculates the
Richness Valuation, which assigns monetary value to                                                   Total Conservation Value of the estate in USD.
biodiversity, serves this purpose.
                                                                                                      The metrics used to determine the Total Conservation
In 2023, ANJ initiated its first extensive Biodiversity                                               Value are categorized into four dimensions. The first
Richness Valuation, conducted by external evaluators                                                  metric, Carbon Value, relates to the carbon stores within



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      the aboveground biomass of trees in the assessment             which approximately 75% came from Species Existence
      area. Aesthetic Value is the intrinsic value of biodiversity   Value, wherein Economic Value to more than ten
      generated by aesthetic appeal and improvements to the          sectors was the dominant contribution to the value. The
      quality of life brought about by species richness and          remaining ~25% came from Impact Value, representing
      the natural environment; the value is calculated as the        the added worth derived sustainably through species
      price a person is willing to pay for a product related to      conservation and ecosystem management, factoring in
      a species on e-commerce platforms. Economic Value              various management practices and external influences.
      comprises the direct contributions of biodiversity to the      The Total Conservation Value was estimated at its
      economy. Species Existence Value is the sum of Carbon,         present value using a discount rate of 6.6%. The value is
      Aesthetic, and Economic Value, while Impact Value is the       not intended to represent a fair value for a buy and sell
      added value generated by increasing species richness           transaction, but rather represents the estimated value
      through conservation projects, species management,             to society and the environment over the next 30 years,
      and sustainability initiatives. The Biodiversity Richness      assuming the KAL plantation continues to be operated
      Value Dashboard is presented below and shows various           as currently practiced or improved, the KAL conservation
      elements of the Total Conservation Value.                      areas continue to be managed with current practice
                                                                     or better, and the biodiversity therein continues to be
      The Biodiversity Richness Valuation provided useful            protected.
      insights for ANJ and its sustainability agenda. Among
      the findings was the indication that the species richness      The outcome of this assessment has provided ANJ with
      among birds, plants and fungi at KAL significantly             evidence of the significant value created by maintaining
      increased after 2021, while richness values of                 and enhancing the biodiversity within our estates and,
      invertebrates, omnivores, herbivores, predators, fish          importantly, the contribution it makes to the economy,
      and amphibians remained relatively constant in the             society, and environment. By quantifying the financial
      period 2019-2023. The Total Conservation Value for KAL         value of flora and fauna, the Biodiversity Richness
      is estimated to be USD 180.1 million or USD 12,979/ha, of      Valuation serves as a compelling rationale for protection,
                                                                     aligning conservation efforts with sound business
                                                                     principles. The integration of biodiversity management
                                                                     into corporate strategies presents a promising avenue
                                                                     for sustainable development and financial growth. The
                                                                     symbiotic relationship between natural biodiversity and
                                                                     commercial cost savings offers a pathway to enhanced
                                                                     returns for shareholders. By fostering the presence
                                                                     of beneficial species like snakes and birds of prey,
                                                                     companies like ANJ can capitalize on natural pest control
                                                                     mechanisms, reducing operational expenses.

                                                                     From an investor's standpoint, implementing biodiversity
                                                                     management strategies adds a new dimension to
                                                                     investment value, aligning financial gains with social
                                                                     and environmental impact. Nevertheless, we believe
                                                                     that in the future there will be opportunities to reflect
                                                                     biodiversity's positive contributions in our financial
                                                                     reporting. The utilization of tools like the PENDAKI
                                                                     database allows for the quantification of biodiversity
                                                                     impact, positioning ANJ as a leader in transparent
                                                                     reporting and stakeholder engagement. Moving forward,
                                                                     we hope to utilize these findings to empower us to
                                                                     advance our sustainability agenda and conservation
                                                                     strategies with greater efficacy and measurability,
                                                                     especially in terms of monetary metrics.




                                                                     The Pied Heron (Egretta picata)




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Forest Management and Protection

Our Sustainability Policy encompasses the principles          • Legal action against illegal loggers, poachers, traders
of ‘No Deforestation, No Peat, and No Exploitation’             of endangered animals or other activities posing
(NDPE). We refrain from developing primary forests,             environmental risks.
focusing instead on their preservation. In line with
RSPO protocols, areas independently recognized as             We are committed to restoring any deforestation or forest
High Carbon Stock (HCS) will not be cleared for oil           land conversions that occur in our area after January 1,
palm planting. Any development of identified HCS areas        2019, the date we committed to halting deforestation in
related to legacy instances will strictly follow RSPO         our operations. This commitment was later formalized
standards. These commitments are a crucial part of our        in our Sustainability Policy, dated October 31, 2020. We
strategy to minimize emissions from land-use changes          also support and expect our Fresh Fruit Bunch (FFB)
and progress towards carbon neutrality.                       suppliers, particularly corporate suppliers, to adopt
                                                              the same commitment and adhere to the same cut-off
To ensure that there is no deforestation in our sites,        date. Additionally, we encourage and expect our third-
conservation areas, and those of our suppliers, we            party FFB smallholder suppliers to cease any illegal
employ various monitoring methods:                            deforestation and land conversion since December 31,
                                                              2020. Should they fail to meet this requirement, we will
• Socialization with surrounding communities to raise         discontinue purchasing their FFB.
  awareness and foster collaboration in conservation
  efforts.                                                    A study and an independent reassessment revealed
• Conducting area-wide drone mapping at least once a          that 2,958.51 hectares of High Carbon Stock (HCS)
  year to assess land use and detect changes.                 area at SMM, PMP and PPM were cleared for oil palm
• Drone mapping of specific areas of interest when            development between January 1, 2016, and December
  questions arise or incidents occur, providing targeted      31, 2018. In response to this loss, we initiated our HCS
  insights.                                                   Recovery Plan in April 2020. As part of this plan, we
• Real-time hotspot satellite monitoring, as performed        designated a consolidated block of 3,518 hectares in one
  by RSPO and other stakeholders, to detect potential         of ANJ’s concessions in Southwest Papua as a recovery
  fire occurrences.                                           site and a form of remediation. In 2021, we added 8.3
• SMART Patrol Method: Our security guards patrol our         hectares of forest to this block. In 2022, we successfully
  planted area and the area inside our borders, while         obtained formal support from the government of
  our conservation area is patrolled by our conservation      Maybrat Regency to carry out our HCS Recovery Plan.
  personnel and well-trained security guards.                 Throughout 2023, diligent oversight of these initiatives
• Analytical productivity evaluations for each                persists, aiming primarily to rehabilitate and enrich the
  smallholder provider to assess plausibility of no           biodiversity of the assigned recovery area, significantly
  deforestation. If results are questionable, ground          contribute to the absorption of carbon and develop
  checks, including drone mapping, are conducted.             a replicable sustainable conservation framework.
• Continuous satellite monitoring provided by Global          (13-4-4) (304-3)
  Forest Watch, combining GLAD (Global Analysis
  and Discovery) and RADD (Radar for Detecting                We adhere to the precautionary principle in all our
  Deforestation) systems to identify deforestation within     operations. The Roundtable on Sustainable Palm Oil’s
  our specified area of interest. The system alerts us to     (RSPO) New Planting Procedure (NPP) mandates the
  potential deforestation, triggering field investigations.   completion of various studies and verification activities
  The total area covered by this system is 995,200            before the establishment of new oil palm plantations.
  hectares, with a coverage radius of 10 kilometers           These include the Social and Environmental Impact
  from our area boundaries.                                   Assessment (SEIA), High Carbon Stock Approach (HCSA)
• Satellite images obtained from Landsat and Sentinel         assessment, Land Use Change Analysis (LUCA), soil
  1&2 are processed using algorithms developed by             suitability survey and Greenhouse Gas (GHG) emissions
  ANJ in cooperation with experts from the University         evaluations, all of which are conducted by external
  of Amsterdam.                                               and independent specialists. The results of these
• Involvement of environmental officials and police to        assessments must be reported to the RSPO before any
  combat illegal logging, poaching and land clearing by       new development commences. We commit to developing
  fire (slash and burn practices) and careless behavior       only low-risk areas, while high-risk areas are set aside
  that may result in forest fires.                            for conservation purposes. (2-23)




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      Additionally, before any land clearing and planting can     greenhouse gas emissions. These fires are often ignited
      occur, an assessment and approval of High Conservation      by slash-and-burn land clearing practices still employed
      Value (HCV) areas, through the High Conservation            by some businesses, smallholder farmers, and local
      Value Resource Network (HCVRN), is required.                communities. Fires originating outside our operational
      Independent HCV assessors, who are accredited by the        boundaries can quickly spread and encroach upon our
      HCVRN’s Assessor Licensing Scheme (ALS), evaluate           areas. Additionally, vegetation fires can occur in the
      these areas. The Roundtable on Sustainable Palm Oil         planting areas of our smallholder suppliers, further
      (RSPO) mandates that assessors are accredited by            emphasizing the need for vigilant fire prevention and
      the HCVRN’s ALS. This requirement extends to all our        management strategies across the entire supply chain.
      vendors, ensuring a consistent and rigorous approach
      to the identification and protection of HCV areas in our    Our Sustainability Policy is committed to Zero Land
      operations and supply chain. (304-3)                        Burning, in line with current laws and regulations, as
                                                                  well as the standards set by the RSPO, ISPO and ISCC.
      As of January 1, 2016, we do not initiate new activities    We also implement a stringent selection process for our
      on peatlands of any depth, and any newly identified         suppliers to ensure that they adhere to the RSPO and
      peatlands within our undeveloped concession areas are       ISPO criteria in their operations. Our objective for forest
      immediately designated as conservation zones. This          fire prevention and management is to have no fires in our
      policy aligns with the Roundtable on Sustainable Palm       concession, plasma and conservation areas.
      Oil (RSPO) regulations and the Principles & Criteria of
      November 15, 2018, which prohibit the development and       We conduct fire risk assessments based on historical
      mandate the sustainable management of peatlands.            data and perceived vulnerability to identify areas with
      Government regulations also require that peatlands be       high fire risk. Based on this assessment, our Ketapang,
      managed as High Conservation Value (HCV) areas due          West Kalimantan (KAL) operation has been designated
      to their environmental functions and significance in the    as a priority for fire prevention and management.
      absorption of greenhouse gas (GHG) emissions.               However, ongoing demographic and economic growth,
                                                                  coupled with global warming, increases the risk of fire in
      However, peatland areas planted prior to 2016 remain        other operations, such as ANJAS, followed by PPM, PMP,
      operational at our ANJAS and KAL estates. Together,         ANJAP, SMM and ANJA, in order of risk level.
      these estates encompass 9,606.3 hectares of peatland,
      representing 48% of the total plantation area. We have      Based on the results of our fire risk assessment, we have
      voluntarily conserved 657 hectares of peatland in KAL       developed an Integrated Fire Management (IFM) system,
      and 200 hectares in ANJAS. The remaining areas were         which is a cross-departmental and fully integrated approach
      planted before the implementation of the peatland           encompassing prevention, mitigation, preparedness,
      regulations and are managed in accordance with RSPO         early detection action, and response. As forest fires are
      best practices, under strict government regulations and     most commonly caused by human activities, our primary
      oversight.                                                  focus is on prevention and mitigation strategies. To this
      We employ stringent water management and control            end, we conduct community socialization efforts to raise
      systems in our peatland areas to maintain stable water      awareness about fire safety and risks. Additionally, we
      levels and prevent peat bogs from drying out or flooding.   invest in community development initiatives to transition
      These systems include water gates, stop bunds, closed       people away from slash-and-burn farming practices,
      canals, and monitoring wells. Peat mounding is also         aiming to minimize the occurrence of uncontrolled forest
      utilized to prevent plants from becoming waterlogged.       fires, particularly during drought seasons.
      Effective water management in our peatland areas is
      crucial for reducing the risk of fire, minimizing peat      For early identification of fire hotspots, we utilize
      oxidation, and preventing ground subsidence, thereby        satellite-based monitoring, complemented by local
      contributing to the overall health and sustainability of    monitoring through fire towers and Unmanned Aerial
      these ecosystems.                                           Vehicles (UAVs). The Integrated Fire Management (IFM)
                                                                  system not only monitors hotspots but also provides
                                                                  daily, weekly, and monthly fire hotspot prediction
      Fire Management and Prevention                              reports to our estates. As part of our fire preparedness
                                                                  measures, we maintain a fully trained Rapid Response
      Wildfires present a significant threat to our palm          team on standby to address fire occurrences when fire
      oil crops, especially during prolonged droughts or          warnings are detected. Additionally, we have established
      El Niño events, leading to substantial financial and        an incident management team (IMT), which is activated
      environmental impacts, as well as high levels of            as soon as an issue is reported, ensuring a swift and
                                                                  coordinated response to fire incidents.




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Fire drill for employees and local communities around our
Southwest Papua (PPM) operation.




To complement this, we also have firefighting systems           forest fire brigade. This comprehensive approach
installed across all our estates. Each location is not only     ensures coordinated and effective fire management, with
furnished with its own team of trained and professional         the support and participation of the broader community.
firefighters, but also with a range of specialized
equipment including fire engines, and portable water            Prolonged drought significantly increases the risk of
pumps. Some specific estates also have rubber boats for         forest fires, posing a substantial threat to ecosystems
rapid and efficient response capabilities. Moreover, ANJ        and communities. Despite these challenges, ANJ
adheres to stringent safety standards for all firefighting      has successfully prevented forest fires within our
gear, ensuring the safety of both our personnel and the         areas in 2023. Our comprehensive strategy, which
communities we serve. In line with our commitment to            integrates technical mitigation measures, community
community welfare, our firefighting capabilities and            empowerment initiatives, and data-driven monitoring,
resources often extend beyond our premises, assisting           has been instrumental in effectively addressing and
in combating flooding and other emergencies in                  mitigating this threat. Even amidst projections indicating
surrounding communities, showcasing ANJ’s dedication            a potential increase in the intensity of the current El Niño
as a responsible community partner.                             in the future, we remain hopeful that we can persist in
                                                                operating our business while safeguarding our natural
To ensure the sustainability of our fire management             resources.
measures, we actively involve stakeholders and local
communities in the process. This involvement is
facilitated through the smallholder farmer firefighting
groups (Kelompok Tani Peduli Api/KTPA) and the Desa
Mandiri programs, which offer financial incentives to
villages that implement fire prevention and management
efforts. Additionally, we collaborate with local authorities,
communities, and law enforcement agencies, including
police and military forces, as well as local fire brigades
that have received specialized training from the Ministry
of Environment and Forestry’s Manggala Agni trained




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      PRIORITIZING RESPONSIBLE
      WATER MANAGEMENT




      WE ACKNOWLEDGE THE
      IMPORTANCE OF RESPONSIBLE
      WATER MANAGEMENT,
      AS WATER IS A LIMITED,
      SHARED, AND ESSENTIAL
      RESOURCE. THE COMMUNITIES
      SURROUNDING OUR
      OPERATIONS RELY ON WATER
      FOR IRRIGATING THEIR CROPS
      AND MEETING THEIR DAILY
      SANITATION AND DRINKING
      NEEDS. THEREFORE, IT IS
      CRUCIAL TO ENSURE THAT THE
      WATER WITHDRAWN FOR OUR
      COMMERCIAL ACTIVITIES DOES
      NOT COMPROMISE THE ACCESS
      OF LOCAL COMMUNITIES AND
      STAKEHOLDERS TO POTABLE
      WATER."




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Water reservoirs in KAL serve as protective
barriers in wildfire risk management as well as
for drip fertigation purposes




Furthermore, wastewater and effluents from our
operations must not contaminate the water used by
the local community. Water scarcity or contamination
can lead to social conflicts within or between local
communities and our company, highlighting the
importance of sustainable water management practices
in maintaining harmony and ensuring the well-being of
all stakeholders.

Our Sustainability and Environmental Policies include
commitments to ensure that adequate, high-quality water
is available for our operations and, more importantly, the
surrounding communities and stakeholders. We have
set a goal achieve a water intensity of 1 ton of water per
ton of Fresh Fruit Bunches (FFB) processed. In 2023, our
water intensity per ton of FFB processed was 0.97 tons
(or cubic meters) of water. (POJK51-F.8, 303-1)

In pursuit of comprehensive and strategic water
management solutions, ANJ has undertaken the
construction of water reservoirs in the KAL area, which
are interconnected by canals to enhance wider access
to water sources. This project serves multiple critical
purposes: it acts as a preventive measure against fires,
plays a vital role in conservation efforts and serves as a
reliable source of water for the Company and surrounding
communities. This initiative is a key component of our
holistic strategy designed to mitigate the adverse effects
of the El Niño phenomenon. By ensuring the availability
of water, we aim to effectively counteract the extended
periods of drought brought about by El Niño, thereby
safeguarding our ecosystems and supporting the
communities dependent on these water resources. This
approach underscores our commitment to sustainable
environmental stewardship and our proactive measures
to address the challenges posed by climate change.
(POJK51-F.8)




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      Table 25. Water Intensity (Palm Oil) (POJK51-F.8)


                                                                                         Improvement compared to base year of 2020
                          Water Usage
            Year                             M /Ton FFB
                                              3
                                                                 M3/Ton CPO
                             (M3)                                                  Water intensity per ton      Water intensity per ton
                                                                                            FFB                          CPO

            2023            1,334,672             0.971             4.71                   (16.27)%                    (17.02)%

            2022            1,492,747             1.088             5.41                    (6.23)%                     (4.53)%

            2021            1,384,622             1.090             5.27                    (6.03)%                     (7.05)%


      Currently, our monitoring and reporting of water impacts                sustainably supply our mills and factories. To monitor
      are focused exclusively on our Palm Oil business unit,                  and measure our water withdrawal, we have installed
      where this issue is considered material. Water usage in                 flowmeters across our locations. This requires oversight
      our sago and edamame units, as well as in our residences                and control beyond our jurisdictional limits and
      and offices, is not included in this report. (303-1)                    highlights the necessity for a landscape-level approach
                                                                              to environmental and ecosystem management. After
      Our sole source of water is fresh surface water                         use, the wastewater is discharged into surface water in
      with total dissolved solids below 1,000 mg/L, which                     compliance with regulatory requirements or in the case
      comprises surface water, rainfall reservoirs, and                       of Palm Oil Mill Effluent, (POME), it is treated and reused.
      rainwater harvesting. All our freshwater is extracted                   (POJK51-F.8,303-1, 303-2)
      from surface water sources, primarily rivers, that can



      Table 26. Total Water Withdrawal, Discharge and Consumption (in megaliters per year)
      (303-3, 303-4, 303-5, POJK51-F.13)


                                                                                                Water Usage
                                         Accumulated at
                           Total
           Year                         WTP & Distribution
                       withdrawals                                 Consumption for         Consumption for Compost
                                          for Domestic                                                                  Total Discharge
                                                                     processing              and land application

           2023          3,012.07           1,677.40                   279.52                         851.37                203.79
           2022          2,452.43             959.68                   694.37                         735.21                 63.17
           2021          2,156.85             772.23                   478.84                         898.29                  7.50



      We ensure the availability of water and assess the                      indicates that our operations are currently not in areas
      capacity of watersheds to maintain normal water flow                    that are prone to significant water scarcity or supply
      and manage any changes in water levels. Annually, we                    challenges. (303-1)
      examine water availability in the river basins of all our
      operating sites as part of our business risk review. This               The ratio of total water withdrawals to renewable water
      risk assessment helps in formulating short- and long-                   supplies at most of our locations is below 10%, indicating
      term strategies for water management and addressing                     a low risk of water stress. However, at our vegetable unit,
      challenges posed by extreme weather conditions. We                      GMIT, the ratio falls within the range of 20-40%, which
      also consider the overall trends and risks related to                   signifies a medium risk of water stress. Based on this
      water at the national level. Based on these insights,                   assessment, we have concluded that none of our regions
      we develop and implement a comprehensive mitigation                     are currently experiencing water stress or are at a high
      strategy, which includes water catchment in arid areas                  to extremely high risk of water stress. This information is
      and the construction of water gates to minimize flooding.               crucial for our water management strategies and helps
      (303-1)                                                                 us ensure the sustainable use of water resources in our
                                                                              operations. (303-2)
      According to the World Resource Institute’s Water Risk
      Atlas, all of our locations are situated in regions that
      are classified as having a low risk of water stress. This




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A Staff monitors water flow in the water tank
at our palm oil mill.




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      To mitigate the risk of water pollution, we implement         management practices, such as avoiding planting on
      several measures (POJK51-F.14):                               steep slopes or in flood-prone areas, in line with the
                                                                    Roundtable on Sustainable Palm Oil (RSPO) criteria.
      1. Wastewater Treatment: We treat our wastewater              Furthermore, we engage local communities in efforts
         discharge in treatment plants to ensure that it meets      to maintain water quality by encouraging them not to
         regulatory quality standards before being released         pollute water bodies with domestic waste. By promoting
         into the environment.                                      these practices, we aim to ensure the sustainable use
      2. Controlled Landfills: We construct controlled landfills,   of water resources in our supply chain and surrounding
         with no open dumping, located far away from water          communities. (303-1)
         sources to prevent contamination.
      3. Fertilizer Application: We enforce the sensible            The discharge of water from mill processing is routinely
         application of fertilizers to avoid runoff, which can      measured in our operations, while the discharge of
         lead to water pollution.                                   water from home consumption is currently neither
      4. River Buffer Zones: We avoid planting in river buffer      measured nor estimated. Our standard approach to
         zones to prevent erosion and runoff that could             water discharge follows regulations set by regulatory
         contaminate water bodies.                                  agencies. In the absence of specific requirements from
                                                                    a regional government, we adhere to the standards
      To preserve water quantity, we undertake various water        established by the Ministry of Environment and Forestry
      conservation efforts:                                         and the Ministry of Health, taking into account the
                                                                    baseline from the Environmental and Social Impact
      1. Reservoirs and Rainfall Collection: We build reservoirs    Assessment (AMDAL) document for the specific area.
         and implement rainfall collecting systems to store
         water for use during dry periods.                          Reclaimed water is also required to meet strict
      2. Water Reuse: We reuse water in our production              regulatory norms and standards. By comparing water
         process wherever possible to reduce the need for           samples collected every 3 to 6 months to the baseline
         freshwater withdrawals.                                    from the AMDAL evaluation, we ensure compliance
      3. Protection and Maintenance of Water Sources: We            with regulatory criteria and specifications, thereby
         protect and maintain water sources to ensure their         maintaining our commitment to responsible water
         sustainability and availability for future use.            management and environmental stewardship. (303-2)
      4. Infiltration Wells: We create infiltration wells to
         maintain groundwater storage and recharge aquifers.        Within the ANJ Group, we operate six oil palm
                                                                    plantations, five of which have palm oil mills. During the
      Our water management data collection method takes             milling process, in addition to producing Crude Palm Oil
      a comprehensive approach for better precision and             (CPO) as the primary product, we also generate Palm
      efficiency. We start with daily/monthly logging of relevant   Oil Mill Effluent (POME), a liquid waste. POME contains
      data points as the basis of our monitoring. Monthly           nutrients essential for plant growth and has the potential
      reporting helps us track trends and deviations from           to produce biogas, which can be converted into electrical
      benchmarks. Despite manual data mining constraints,           energy.
      we continuously assess all data points for continous
      improvement as we are aware that periodic data analysis       After receiving technical approval from the government
      provides deeper insights and helps us to have informed        through a review process, POME is utilized as a source
      decisions and sustainable resource optimization. (303-1,      of plant nutrition in our plantation activities. The applied
      303-2)                                                        POME meets the required quality standards, including a
                                                                    Biological Oxygen Demand (BOD) of below 5,000 and a
      These water management projects are executed                  pH range of 6-9, ensuring its safe and beneficial use in
      independently by ANJ, demonstrating our commitment            our operations. We track the quality of water we release
      to responsible water use and the preservation of water        by assessing it Biological Demand (BOD), a metric that
      resources. (303-2)                                            reflects the pollutant load, including substances like
                                                                    ammonia and nitrates, in the water. All water discharged
      Our Fresh Fruit Bunch (FFB) suppliers are smallholder         by ANJAS adheres to quality criteria established by the
      farmers who do not operate any water-consuming                environmental regulators, maintaining a BOD level of
      processing mills, and we believe that their water             100 mg/L. Our primary goal is to reduce the pollutant
      consumption from plant cultivation operations is              concentration even further, aiming for a level below the
      not currently measurable or manageable. However,              environmental compliance threshold of 95 mg/L. As of
      we actively promote best agricultural practices and           2023, our BOD stands at 91 mg/L, demonstrating our
      sustainable palm oil principles to our independent            progress towards surpassing regulatory standards.
      smallholder farmers. This includes good water                 (303-2)




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Among the palm oil mills in the ANJ Group, only the          2022, we initiated a trial to use geotubes to capture
ANJAS mill discharges Palm Oil Mill Effluent (POME)          sludge from POME. The captured sludge has been tested
into surface water bodies. In 2023, we used real-time        and found to contain high nitrogen content, making it
monitoring through the installment of the SPARING            suitable for use as an organic fertilizer.
system at the waste outlet before disposal. The SPARING
system is an automated system for monitoring, recording,     Before being discharged into surface water streams or
and reporting effluents, as required by the regulations of   ponds, domestic wastewater is treated at a wastewater
the Ministry of Environment and Forestry. (303-2)            treatment plant to meet regulatory quality standards.
                                                             In some areas, non-polluting and non-contaminating
In addition to monitoring wastewater characteristics,        domestic wastewater is released directly, without
ANJ conducts monthly analyses of wastewater in an            treatment.
accredited laboratory. This practice ensures that our
wastewater management complies with environmental            Throughout 2023, all operating units maintained 100%
standards and regulations, reaffirming our commitment        compliance regarding water-related regulations, with no
to responsible environmental stewardship. (303-2)            instances of non-compliance reported.

Palm Oil Mill Effluent (POME) from our palm oil mills is
processed in anaerobic effluent ponds. After treatment,
the POME is discharged into final aerobic effluent ponds.
In two of our concessions, this effluent is utilized for
compost processing, while in the remaining concessions,
it is applied to land to provide additional nutrients. In




                                                                                        POME from our palm oil mill in SMM




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      PEOPLE


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Our Diverse and Inclusive Workforce                 122
Fair And Responsible Recruitment Practices          125
Empowering Employees’ Growth and Skills             126
Championing Diversity and Women’s
                                                    132
Empowerment
Protecting the Rights of Workers and Children       135
Protecting the Health and Safety
                                                    138
of Our Workers
Engaging and Empowering Local Communities           150




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      OUR DIVERSE AND INCLUSIVE WORKFORCE




      THE ANJ SUSTAINABILITY                                        or 93.3%, hold permanent positions, indicating a strong
                                                                    core of long-term workers, whereas 671 employees, or
      POLICY PLACES A SIGNIFICANT                                   6.7%, are engaged through fixed-term contracts, offering
      EMPHASIS ON THE WELL-BEING                                    flexibility and adaptability in our workforce management.

      OF OUR WORKFORCE.                                             A closer look at our business segmen shows a
      WE PRIORITIZE THE HEALTH                                      concentrated workforce distribution, with the palm oil
                                                                    sector employing the majority of our workers, 89.9%.
      AND WELFARE OF OUR                                            This is followed by our frozen vegetable division, which
      EMPLOYEES, STRIVING TO                                        accounts for 6.6% of our workforce. Our sago unit
                                                                    employs 2%, and the remaining 1.5% of our staff is
      ENSURE THEY ARE PROVIDED                                      spread across various other business segments and
      WITH AN OPTIMAL WORKING                                       corporate offices, highlighting the diverse nature of our
                                                                    operations.
      ENVIRONMENT. THIS
      ENCOMPASSES A COMMITMENT                                      In addition to our direct employment figures, our
                                                                    operations are supported by 2,466 outsourced employees,
      TO MAINTAINING A SAFE                                         an increase of 39% compared to that of last year. These
      AND HEALTHY WORKPLACE,                                        workers support the Company’s operations in security
                                                                    services, road, garden and housing maintenance, and
      WHERE EACH INDIVIDUAL                                         seasonal plantation maintenance. It is noteworthy that,
      IS APPRECIATED AND THEIR                                      the bulk of our harvesting activities are carried out by
                                                                    our permanent workers, underscoring our commitment
      RIGHTS AS WORKERS ARE                                         to providing stable employment in the communities
      UPHELD."                                                      where we operate. (2-8)

                                                                    The Company is firmly committed to upholding fair labor
                                                                    practices, ensuring that all employees, regardless of
                                                                    gender, receive compensation that meets or exceeds the
      Furthermore, we foster a culture that values continuous       minimum wage as mandated by government regulations.
      learning and personal development throughout an               This commitment encompasses every tier of our
      individual’s career. Our dedication to these principles       workforce, ensuring that even the entry-level salaries in
      reflects our belief that the success of our organization      each of our operational sites adhere to or surpass the
      is intrinsically linked to the well-being and growth of our   government’s established minimum wage. The ratio of
      employees.                                                    the lowest employee salary across all operational areas
                                                                    to the regional minimum wage is 1:1 (100% compliance).
      At year-end, on December 31, 2023, ANJ’s workforce            By adhering to this principle, the Company not only
      totaled 9,943 individuals. Among this number, 8,337           complies with legal standards but also reinforces its
      workers, or 83.8%, of the workforce are male, while           dedication to the welfare and equitable treatment of its
      1,606, or 16.2%, are female. The composition of our           workforce. (13.20.1, POJK51-F.20)
      employment contracts reveals that 9,272 employees,




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Table 27. Total Number of Employees by Gender, Contract Type and Business Location in 2023 (POJK51-C.3.b)


                                                         Female                         Male
                                   Location                                                                     Grand
                                               Contract Permanent    Total   Contract Permanent       Total     Total

PT Austindo Nusantara Jaya Tbk.   Jakarta         0          9         9        0          20          20           29


PT Austindo Nusantara Jaya Boga   Jakarta         1          0         1        4           0            4            5


                                  North
Regional Office Medan                             3         31        34        5          62          67          101
                                  Sumatra

PALM OIL

                                  North
PT Austindo Nusantara Jaya Agri                   0        212       212        0       1,189       1,189        1,401
                                  Sumatra

PT Austindo Nusantara Jaya Agri   North
                                                  0        202       202        0       1,068       1,068        1,270
Siais                             Sumatra

                                  Bangka
PT Sahabat Mewah dan Makmur                       0        328       328        3       1,846       1,849        2,177
                                  Belitung

                                  West
PT Kayung Agro Lestari                            0        366       366        3       1,753       1,756        2,122
                                  Kalimantan

                                  South
PT Galempa Sejahtera Bersama                      0          2         2        1          15          16           18
                                  Sumatra

                                  Southwest
PT Putera Manunggal Perkasa                       4         78        82       29         966         995        1,077
                                  Papua

                                  Southwest
PT Permata Putera Mandiri                         2         39        41        3         827         830          871
                                  Papua

SAGO

                                  Southwest
PT ANJ Agri Papua                                 5         12        17       40         145         185          202
                                  Papua

EDAMAME


PT Gading Mas Indonesia Teguh     East Java     294         18       312      274          72         346          658


RENEWABLE ENERGY
                                  Bangka
PT Austindo Aufwind New Energy                    0          0         0        0          12          12           12
                                  Belitung

Grand Total                                     309       1,297     1,606     362       7,975       8,337        9,943




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      Table 28. Employee Composition (POJK51-C.3.b, 2-7)



                                                                          2023                                      2022                                     2021

                                                                                        Total                                    Total                                     Total

                          Head Office Jakarta                   20             9            29            21             9           30            20            10            30

                          Palm Oil                          7,770         1,267         9,037         7,436         1,273         8,709        7,045         1,321         8,366
           By Segment




                          Sago                                185             17          202           244             14          258           218            12           230

                          Others                              362           313           675           290           271           561           227           165           392

                          Total                             8,337         1,606        9,943         7,991         1,567         9,558         7,510         1,508         9,018

                          Director                               9             3            12            10             4           14              8             4           12

                          General Manager (GM)                  25             4            29            26             4           30            26              4           30
           By Position




                          Manager                             203             25          228           202             27          229           191            29           220

                          Staff                               313             77          390           293             69          362           292            63           355

                          Workers                           7,787         1,497         9,284         7,460         1,463         8,923        6,993         1,408         8,401

                          Total                             8,337         1,606        9,943         7,991         1,567         9,558         7,510         1,508         9,018

                          Doctoral Degree                        0             0             0             1             1             2             -             1                1

                          Master's Degree                       12             7            19            12             7           19            14              9           23

                          Bachelor's Degree                   652           168           820           596           136           732           524           123           647
           By Education




                          Diploma                             122             48          170           122             52          174           116            46           162
                          Senior/Vocational
                                                            3,038           565         3,603         3,064           483         3,547        2,877            410        3,287
                          High School
                          Other                             4,513           818         5,331         4,196           888         5,084        3,979            919        4,898

                          Total                             8,337         1,606         9,943        7,991         1,567         9,558         7,510         1,508         9,018

                          Contract Workers                    362           309           671           370           276           646        1,037            226        1,263
        Employment
          Status




                          Permanent Staff                   7,975         1,297         9,272         7,621         1,291         8,912        6,473         1,282         7,755
            By




                          Total                             8,337         1,606        9,943         7,991         1,567         9,558         7,510         1,508         9,018

                          Over 55                               86            14          100             61            17           78            42              9           51

                          41-55                             2,137           628         2,765         1,886           539         2,425        1,695            489        2,184
           By Age




                          25-40                             4,767           795         5,562         4,597           832         5,429        4,388            868        5,256

                          18-24                             1,347           169         1,516         1,447           179         1,626        1,385            142        1,527

                          Total                             8,337         1,606        9,943         7,991         1,567         9,558         7,510         1,508         9,018

      Note: All personnel data are collected from each business unit based on headcounts at the end of the reporting period for storage and analysis at the Jakarta headquarters.



      In 2023, ANJ experienced a notable expansion in its                                         the commencement of full commercial operations in
      workforce, with the addition of 385 employees by the                                        2021, signaling a strategic expansion of our activities in
      end of the year. This growth is primarily attributed to the                                 this sector. These developments are reflective of ANJ’s
      recruitment of new workers for our palm oil operations                                      ongoing commitment to scaling its operations and
      in Southwest Papua, an area poised for heightened                                           enhancing its production capabilities across different
      activity as the plantation is fully-matured. Additionally,                                  business units, aligning with our strategic goals, and
      our vegetable business unit has seen a considerable                                         responding to the evolving demands of our markets.
      surge in employment figures. This uptick is linked to



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FAIR AND RESPONSIBLE RECRUITMENT PRACTICES
(13.20.1)




                                                                                       Our staff and harvesting workers in PMP,
ANJ has established a comprehensive and ethical                                                               Southwest Papua.

recruitment policy that reflects the organization’s
commitment to integrity, fairness and respect for all
individuals. This policy is designed to guide both internal
recruitment practices and the selection of employment           and clarity regarding the terms of employment,
agencies used to recruit workers.                               including roles, responsibilities and rights.
                                                              • Application to Employment Agencies: ANJ’s ethical
Key aspects of ANJ’s recruitment practices include:             recruitment standards extend to any employment
• Ethical Recruitment Policy: ANJ adheres to an ethical         agencies engaged in recruiting workers on behalf of
  recruitment policy that emphasizes the fair treatment         the Company. These agencies are required to comply
  of all candidates and employees. This policy covers a         with ANJ’s policies and commitments, ensuring a
  broad range of practices to ensure compliance with            uniform standard of ethical recruitment.
  ethical standards and legal requirements.                   • Addressing Non-Compliance: ANJ has established
• Recruitment Fees: The policy clearly states that ANJ          mechanisms to identify and address instances of
  does not charge recruitment fees to job applicants.           non-compliance with its recruitment policies and
  This practice ensures that employment opportunities           commitments. This includes regular audits, feedback
  are accessible to all individuals without financial           channels for employees and applicants, and corrective
  barriers, promoting equal opportunity.                        action plans to remedy any issues identified. Non-
• Identity Documents: ANJ does not withhold any                 compliance is taken seriously, with appropriate
  personal identity documents, such as passports or ID          measures taken to prevent recurrence.
  cards, by the Company or any employment agencies
  acting on its behalf.                                       Through these practices, ANJ demonstrates its
• Written Contracts in Understandable Language:               dedication to ethical recruitment, ensuring that
  Under ANJ’s policy, all workers are provided with           all individuals are treated with dignity and respect
  written employment contracts in a Bahasa or dual            throughout the recruitment process. The organization’s
  language in Bahasa and English, where in general            approach not only aligns with legal and ethical standards
  our employees understand the use of Bahasa in               but also contributes to a positive and inclusive workplace
  communicating. This practice ensures transparency           culture.




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      EMPOWERING EMPLOYEES’ GROWTH AND SKILLS
      (POJK51-F.22)




      RECOGNIZING OUR EMPLOYEES
      AS OUR MOST PRECIOUS
      ASSETS, WE PLACE A
      SUBSTANTIAL EMPHASIS
      ON THEIR TRAINING AND
      CAREER ADVANCEMENT. OUR
      OBJECTIVE IS TO FACILITATE
      THE ENHANCEMENT OF
      THEIR SKILLS, SUPPORT
      THEM IN ACHIEVING THEIR
      PROFESSIONAL ASPIRATIONS
      AND ENSURE THEY EXCEL IN
      THEIR ROLES. TO THIS END,
      WE OFFER COMPREHENSIVE
      TRAINING AND PROFESSIONAL
      DEVELOPMENT PROGRAMS
      TAILORED TO MEET THESE
      GOALS. "

      These initiatives commence from the moment a new            higher rate of turnover. Moreover, such disparities in
      employee joins the Company and continue throughout          access can undermine the effectiveness of our talent
      their tenure with us. This sustained investment in          management and succession planning efforts, leading
      professional growth not only contributes to the personal    to an unbalanced distribution of knowledge and skills
      development of our employees but foster a skilled and       across the Company. Consequently, it is our priority to
      competent workforce, capable of driving the success and     guarantee that all employees, regardless of their role or
      innovation of our operations.                               level within the organization, have equal opportunities
                                                                  to participate in training and professional development
      As an organization that prides itself on having a diverse   programs. This is fundamental in fostering a culture of
      workforce, we understand the critical importance            inclusivity and continuous learning, ensuring that every
      of ensuring equitable access to training programs.          member of our team is empowered to reach their full
      Inequities in training opportunities can significantly      potential and contribute effectively to our collective
      affect employee job satisfaction and contribute to a        success.




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                                                            We place a strong emphasis on self-development
                                                            through self-learning initiatives, advocating for a culture
                                                            of lifelong learning that empowers our employees to
                                                            continually enhance their skills and knowledge. This
                                                            approach not only aids in personal development but also
                                                            aligns with our strategic goals by building the Company’s
                                                            capacity and leadership potential from within.

                                                            Promoting from within is a key component of our talent
                                                            management strategy and, as such, we prioritize the
                                                            development of our current employees over hiring new
                                                            recruits. Targeted training and development programs
                                                            are instrumental in this process, as they help to improve
                                                            the competencies of our employees, facilitating their
                                                            career progression while also bolstering the strategic and
                                                            operational capabilities of the Company. Through these
                                                            efforts, we aim to ensure that our workforce remains
                                                            agile, skilled and prepared to meet the challenges of the
                                                            future, reinforcing our commitment to both individual
                                                            growth and organizational success. (POJK51-F.18)

                                                            Recognizing the pivotal role of training and education
                                                            in both personal and professional development, we
                                                            established the ANJ Learning Center (ALC) within a
                                                            17-hectare section of our Belitung operations in 2014.
                                                            The ALC is a state-of-the-art facility, equipped with
                                                            dedicated spaces designed for teaching and studying,
                                                            a comprehensive library and accommodation facilities
                                                            capable of hosting up to 80 individuals. While the primary
                                                            focus of the ALC is to facilitate our internal training
                                                            programs, we also extend its services to external
                                                            parties. This includes offering the venue for training
                                                            sessions, educational events and other developmental
                                                            activities to our suppliers, business partners and the
Our vision is to cultivate a fair and inclusive working     wider community. By doing so, we not only invest in
environment that not only encourages but actively           the growth and development of our own employees but
supports the individual growth of every team member.        also contribute to the broader ecosystem in which we
This is implemented by providing employees with access      operate, fostering a culture of continuous learning and
to comprehensive training that equips them with both the    development that benefits all stakeholders involved.
hard skills required for their specific job functions and
the soft skills necessary for effective communication,
leadership and teamwork. Regular training sessions are      Learning and Development Program
designed to enhance employee motivation, foster loyalty
                                                            To ensure our employees’ growth and development align
and improve performance over time, thereby creating
                                                            with their personal goals and the Company’s objectives,
a positive feedback loop with mutual benefits for the
                                                            we offer targeted training programs. These programs are
individual and the Company.
                                                            created based on a combination of assessments, which
                                                            include the Company’s needs, individual development




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      plans and job-level competency dimensions. Our training        the Company, this program prepares employees to
      initiatives are designed to enhance job-specific technical     assume leadership roles across various levels of
      competencies, develop soft skills such as leadership           the organization. It focuses on developing leadership
      and communication and ensure compliance with both              qualities, decision-making capabilities and the ability
      national and international industry standards.                 to manage and inspire teams effectively, ensuring a
                                                                     robust leadership pipeline for the future.
      The training provided by ANJ falls into five distinct        • Certification program: Aimed at validating and
      categories:                                                    standardizing the technical proficiency of employees
      • Core training: This foundational training is compulsory      in specific job functions, this program offers
         for all employees, encompassing essential knowledge         certifications that recognize the mastery of particular
         about the Company’s values, code of conduct and             skills. It ensures that our workforce meets both the
         safety protocols. It aims to ensure that every team         Company’s and industry’s standards of excellence,
         member understands and adheres to the principles            contributing to our overall competitiveness and
         and standards that define our corporate culture and         quality of output.
         operational safety requirements.
      • Technical training: Focused on enhancing the               Through these diverse training categories, ANJ
         technical skills and capabilities of our employees,       is committed to nurturing a culture of continuous
         this training is tailored to improve performance          improvement and the aspiration of excellence. By
         and proficiency in their respective roles. It covers a    investing in our employees’ professional and personal
         wide range of topics, from operational techniques to      development, we not only enhance their career
         advanced technological applications, ensuring our         prospects but also ensure that our organization remains
         workforce is competent and up to date with industry       agile, competitive, and capable of achieving its long-term
         developments.                                             goals.
      • Soft skills training: Recognizing the importance of
         collaboration within a corporate environment, this        Within our training program framework, the involvement
         training aims to bolster teamwork, communication          of Company leaders and subject matter experts (SMEs)
         and organizational skills. It is designed to enhance      is integral to the success and effectiveness of our
         employees’ ability to collaborate efficiently both        initiatives. These SMEs are individuals-who have deep
         within the company and in interactions with external      knowledge, skill and experience in a particular field or
         stakeholders, fostering a cohesive and productive         subject due to their educational background or related
         work environment.                                         work experience in the field they master. Leaders and
      • Leadership and supervisory program: Targeted               SMEs are entrusted with the critical responsibility of
         at nurturing the next generation of leaders within        actively participating in the development of our team
                                                                   members and employees across the board. (404-2)



      Table 29. Training Hours by Training Type in 2023 (POJK51-F.18)

                                                                                                           Total Training
                                                Technical Skills        Soft Skills      Certification
                                                                                                               Hours

       By Employee Category

       Non-staff                                       15,454              3,937             1,336             20,727
       Staff                                           16,237              5,489             2,069             23,794
       Manager                                          1,184              1,480                 472            3,136
       General Manager/Regional
                                                            372              447                 104              819
       Manager/Group Head
       Boards of Directors                                  142              134                   -              380
       By Gender
       Male                                            27,666              9,904             3,390             40,960
       Female                                           5,721              1,583                 591            7,895

       TOTAL                                          33,388             11,487              3,981             48,855




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An Estate Assistant Manager conducts a field training for
all foremen, explaining how to plan harvesting to achieve
the target.


A cornerstone initiative aimed at bolstering and               new trainees, among whom three are women. This intake
enhancing the capabilities of our team members across          reflects our ongoing commitment to enhancing a diverse
all levels, from staff to general manager, is the Individual   and inclusive environment that values and develops
Development Plan (IDP). This program stands out for its        talent from varied backgrounds and perspectives.
structured and systematic approach to both technical           (404-2)
and soft skill enhancement, tailored to the individual
employee. What sets the IDP apart is its emphasis on           In 2023, we continued our Managerial Development
facilitating direct interaction between employees and          Program (MDP), an array of training sessions designed for
their supervisors, who provide mentorship and guidance         managers and assistant managers within the Company.
to help participants elevate their job performance and         The MDP is a systematic and thorough initiative aimed at
attain their professional objectives. Additionally, the        bolstering a wide range of skills, including intrapersonal
program is founded on the participants’ Key Performance        and interpersonal abilities, leadership qualities and
Indicators (KPIs), ensuring alignment with their personal      business/management expertise. This program is
goals. Each department is allocated a specific training        developed to cultivate enhanced leadership capabilities,
budget, allowing for the flexibility to address its unique     foster a collaborative work ethic and improve problem-
developmental requirements effectively. (404-2)                solving skills. By focusing on these critical areas, the
                                                               MDP ensures that managers and assistant managers are
Moreover, since 2003, ANJ has conducted the                    well-equipped to excel in their roles and meaningfully
Management Trainee (MT) Program, specifically crafted          contribute to the Company’s success. In 2023, 538
to nurture and develop future leaders within our               participants took part in the Managerial Development
organization. This program targets recent graduates            Program (MDP), amounting to a total of 3,142 man-hours
who are entering the workforce, offering them the              of training. (404-2)
opportunity to gain valuable experience by placing
them in various business units across Indonesia. The           In addition to our MDP, we also run a Staff Development
MT Program curriculum is balanced, emphasizing                 Program and Supervisory Development Program. In
both soft and technical skills development. It employs         2023, these programs saw the participation of 1,021
a dual approach to learning, combining conceptual,             individuals, cumulating 5,437 man-hours of training.
in-class instruction with practical, on-the-job training
experiences. This comprehensive method ensures                 Overall, in 2023, we achieved 48,855 hours of training,
that participants acquire a well-rounded skill set that        surpassing our target of 37,000 hours. Despite this
prepares them for leadership roles within the Company.         success, there remain opportunities for further
In 2023, the Management Trainee Program welcomed 20            evaluation and improvement to ensure equitable access
                                                               to our training programs and associated benefits.



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      Table 30. Average Training Hours by Gender and Employee Category (POJK51-F.18, 404-1)

                                                                       2023                 2022                2021
       Non-staff                                                        2.23                4.06                2.50
               Male                                                     2.11                4.39                 2.62
               Female                                                   2.88                2.38                 1.90
       Staff                                                          61.01                52.56               68.90
               Male                                                    66.19               53.86               71.33
               Female                                                  39.97               47.03               57.67
       Manager                                                        13.75                33.21               27.37
               Male                                                    14.41               35.28               28.19
               Female                                                   8.42               17.72               21.95
       General Manager/Regional Manager/Group Head/Head               28.22                41.88               25.47
               Male                                                    28.14               45.83               21.12
               Female                                                  28.75               16.25               53.75
       Boards of Directors                                            31.67                16.79                7.58
               Male                                                    22.22               14.00                 5.75
               Female                                                  60.00               23.75               11.25
               TOTAL
               Male                                                     4.91                7.13                 6.01
               Female                                                   4.92                4.70                 4.78
               GRAND TOTAL                                              4.91                6.74                5.80



      In August 2023, GMIT introduced a new initiative known       feature of this program was the utilization of neuromatic
      as the Field Assistant Development (FAD) Program,            mapping, a cutting-edge technique designed to unlock
      intended to address the Company’s need for field             the potential of individuals. This approach facilitated a
      assistants. The program commenced with two batches,          deep dive into optimizing key leadership skills, including
      admitting 10 and 12 individuals, respectively, from the      strategic thinking, leadership communication, strategic
      local population of GMIT’s Jember area. This strategic       execution and management skills. The program’s
      focus on hiring from within the community not only aims      comprehensive curriculum and personalized coaching
      to enhance staff retention but also leverages individuals’   methodologies were aimed at honing the capabilities of
      familiarity with the local environment, contributing to      our senior executives, ensuring they are well-equipped
      the program’s effectiveness. The recruitment process         to navigate the complexities of their roles and drive the
      for the program was thorough, involving steps such as        Company toward its strategic objectives. This program’s
      administrative screening, psychological evaluations,         successful completion in 2023 demonstrated our
      Focus Group Discussions (FGD) and interviews. The first      commitment to continuous leadership development and
      batch had 227 applicants, while the second had 748. The      organizational excellence.
      FAD’s program structure includes two weeks of in-class
      training followed by 3.5 months of On-the-Job Training       Our Company conducts a monthly Management Meeting,
      (OJT), culminating in a final assessment that covers both    a platform where all Business Units come together to
      a Quality Improvement Project (QIP) and technical skills.    share and discuss updates related to staff training,
      Given its initial success, plans are already underway        development and career progression. This forum
      to replicate the program next year, reinforcing GMIT’s       allows for the presentation of reports, the offering of
      commitment to developing skilled professionals within        suggestions, and the provision of inputs, especially
      the community.                                               those concerning performance issues that may require
                                                                   attention. Some examples of issues discussed in 2023
      In 2023, the Executive Coaching Program was launched,        relate to the quality of training programs, knowledge
      targeting our senior leadership team. This exclusive         gains, behavioral changes and the impact on Company
      program saw the participation of four General Managers       performance and business success.
      (GMs) and one Director, spanning six months. A key




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In addition to these evaluative measures, we actively      Our performance management framework incorporates
collect data through employee questionnaires regarding     a forced ranking system, where a dedicated committee
their training experiences. This feedback is invaluable    conducts comprehensive evaluations of employees
for assessing the program’s reach and effectiveness        both within their respective teams and across different
and is instrumental in making necessary adjustments        divisions of the Company. This rigorous assessment
to ensure our training initiatives are aligned with both   process occurs annually. ANJ’s structured approach
employee needs and organizational goals.                   ensures continuous alignment with individual growth
                                                           plans and provides targeted coaching to help employees
                                                           achieve their professional objectives.
Employee Performance Evaluation
(POJK51-F.18)                                              In the most recent reporting period, we achieved
                                                           100% of our employees, spanning all levels of the
Our performance management system is meticulously          organization, underwent performance evaluations.
crafted to support employees in assessing their            This accomplishment underscores our commitment to
performance against clear, quantifiable targets that       maintaining a universal and equitable review process.
correspond to ANJ’s overarching corporate aims. This       An inclusive feature of our approach is that employees
system unfolds in four distinct phases, ensuring a         who joined our company towards the end of 2023 are
comprehensive and ongoing process of performance           also subject to a probation evaluation, ensuring a
evaluation and development:                                fair and comprehensive assessment for every team
                                                           member regardless of their start date. These recent
1. Annual Performance Plans Initiation: Each November,     additions are scheduled to receive their first formal
   we produce annual performance plans. These plans        performance appraisal in the upcoming review cycle,
   are foundational to setting specific, measurable        aligning with our principle that every employee deserves
   objectives for employees, aligning individual efforts   a fair and objective assessment of their performance.
   with the broader goals of the Company.                  This philosophy is central to our business approach,
2. Monthly Performance Feedback: To foster a culture       supporting both the career advancement and personal
   of continuous improvement and communication,            development of our workforce, and ensuring that all team
   supervisors provide monthly performance feedback        members are recognized and developed in accordance
   to their project group. This regular interaction        with their contributions and potential. (404-3)
   ensures that employees receive timely insights into
   their performance, including areas of strength and      In 2023, our performance review system underwent
   opportunities for growth.                               a significant evolution with the upgrade of a Human
3. Bi-semester Performance Evaluation Periods: The         Resource Information System (HRIS), marking a
   system is structured around two main evaluation         pivotal step in our digital transformation journey. This
   periods. The first semester spans from November to      innovative, automated system revolutionizes how
   April and the second semester from May to October.      performance review processes are conducted, moving
   These periods allow for a structured assessment         away from traditional, manual methods to a more
   of an employee’s progress against their set goals,      streamlined, efficient digital approach. Through the
   facilitating timely adjustments and recognizing         newly upgraded HRIS, not only is the process simplified
   achievements.                                           and made more accessible, but accountability is also
4. Reward Management: Following the evaluation             more evenly distributed among employees. This shift
   periods, the system addresses reward management.        encourages a greater sense of ownership over their
   This involves acknowledging and rewarding staff         performance evaluations, cultivating a culture of self-
   achievements through merit increases, incentives and    management and proactive engagement with personal
   the provision of development programs and career        and professional development. The implementation
   advancement opportunities. This phase is crucial for    of the HRIS affirms our commitment to leveraging
   motivating employees, retaining talent and aligning     technology to enhance our operational efficiency and
   individual successes with our corporate objectives.     empower our workforce, ensuring that performance
                                                           management is both effective and aligned with our
Through these four phases, our performance                 future-oriented organizational goals. We are committed
management system plays a pivotal role in driving          to ongoing improvement in this area, aiming to promote
organizational success by ensuring individual              transparency, visibility, and fairness across all relevant
performance is consistently aligned with and contributes   HR practices within our operations.
to our corporate goals.




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      CHAMPIONING DIVERSITY AND WOMEN’S
      EMPOWERMENT (POJK51-F.18)




      ANJ FIRMLY UPHOLDS THE
      BELIEF THAT GENDER EQUALITY
      AND DIVERSITY ARE NOT
      ONLY FUNDAMENTAL ETHICAL
      PRINCIPLES BUT ALSO CRUCIAL
      COMPONENTS FOR ACHIEVING
      SUSTAINABLE DEVELOPMENT AND
      FULFILLING THE SUSTAINABLE
      DEVELOPMENT GOALS (SDGS),
      PARTICULARLY GOAL 5 ON
      ACHIEVING GENDER EQUALITY
      AND EMPOWERING ALL WOMEN
      AND GIRLS. WE RECOGNIZE THE
      INTRINSIC VALUE OF DIVERSITY
      AND EQUAL OPPORTUNITY,
      ESPECIALLY IN TERMS OF
      WOMEN’S EMPOWERMENT AND
      UNDERSTAND THEIR PROFOUND
      IMPACT ON THE OPERATIONS OF
      THE ANJ GROUP."                                                  Implementing women empowerment initiatives to increase
                                                                       economic welfare, including through farming, supporting
                                                                       both individual growth and community development


      Diversity within our workforce serves as a catalyst          within the Group are held by women. This significant
      for optimizing company performance, as it brings a           representation of women in managerial and senior
      multitude of perspectives from different genders and         management roles shows our dedication to creating a
      groups to the forefront. This inclusivity fosters an         balanced and inclusive workplace.
      environment where employees are encouraged to share
      their ideas and support one another, driving innovation      We strongly believe that empowering women extends
      and problem-solving. By providing the necessary support      beyond the corporate environment, having a ripple
      and encouragement, we are committed to enhancing the         effect on the broader economy and societal welfare. As
      competencies of our female employees, thereby not only       women gain autonomy and the ability to contribute to
      facilitating their career success but also contributing to   family income, through taking ownership of their craft,
      the overall performance and growth of the Company.           there is a notable enhancement in the overall well-
                                                                   being of families. This approach aligns with our vision of
      The effectiveness of our commitment to gender                supporting a sustainable, inclusive, and equitable future
      equality can be observed in the leadership structure         for all members of the communities we serve.
      of our organization, where 25% of directorial positions




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Table 31. Percentage of Employees in Each Employee Category by Age (405-1)


                                           2023                                      2022                              2021
        Employee Category
                                                      Over                                      Over                               Over
                               18-24 25-40 41-55                     18-24    25-40    41-55            18-24    25-40    41-55
                                                       55                                        55                                 55
Director                        -     -      58%      42%              -        -       57%     43%       -        -       75%      25%

General Manager (GM)            -    17%     76%          7%           -       20%      73%     7%        -      27%       63%      10%

Manager                         -    51%     43%          6%           -       50%      43%     7%        -      58%       39%      3%

Staff                          18%   62%     20%          1%         16%       63%      20%     1%      16%      66%       18%      0%

Non-Staff / Workers            16%   56%     28%          1%         17%       57%      25%     1%      18%      58%       23%      1%


Our Sustainability Policy embodies a vision to nurture                     capability are the sole determinants of advancement.
a workplace that is not only conducive to growth but is                    We particularly encourage women to participate fully
also characterized by harmony and inclusivity, free from                   in the workplace and to pursue leadership roles with
divisiveness. At the heart of our commitment lies a strong                 confidence, recognizing their invaluable contributions to
emphasis on diversity and gender equality, principles                      our success.
we steadfastly uphold across our operations. We firmly
believe that every employee, irrespective of their gender,                 Operating in Indonesia, a nation celebrated for its rich
race or religious beliefs, should have unfettered access                   tapestry of cultural, ethnic and religious diversity, we
to opportunities that allow them to realize their full                     are keenly aware of the importance of creating an
leadership potential.                                                      environment where every individual feels valued and
                                                                           respected. Our efforts are aimed at ensuring no one
To this end, we ensure equality in employment                              within our company feels marginalized or subjected to
practices, compensation, bonuses and access to                             discrimination. To date, we have not identified any groups
training opportunities. Our promotion processes                            or minorities within our organization that are particularly
are meticulously designed to be free from bias or                          vulnerable to discrimination. (405-1)
discrimination, nurturing a culture where merit and

Table 32. Percentage of Employees in Each Employee Category by Gender (405-1)


                                                   2023                                 2022                             2021
           Employee Category
                                           Male           Female                Male           Female           Male            Female

Director                                   75%                 25%              71%             29%             67%              33%

General Manager (GM)                       86%                 14%              87%             13%             87%              13%

Manager                                    89%                 11%              88%             12%             87%              13%

Staff                                      80%                 20%              81%             19%             82%              18%

Non-Staff / Workers                        84%                 16%              84%             16%             83%              17%


Our aspiration to fostering gender equality and                            By aligning with the WEPs, we not only reaffirm our
empowering women within our organization is                                dedication to creating an equitable environment but
underscored by our commitment to the Women’s                               also gain access to a valuable platform for collaboration
Empowerment Principles (WEPs). In January 2021, we                         and learning. This platform allows us to network
solidified this commitment through a CEO Declaration                       with organizations and individuals who share our
of Support for the WEPs, a pivotal step towards                            commitment, exchange experiences and insights and
enhancing our policies and practices related to women’s                    discover successful strategies that elevate women
empowerment. The Women’s Empowerment Principles                            in leadership roles. Engaging with the WEPs enables
offer a comprehensive framework for businesses to                          us to continuously evaluate and improve our efforts to
promote gender equality and strengthen women’s                             empower women, ensuring that our practices not only
empowerment across three critical areas: the workplace,                    support but also actively promote gender equality within
the marketplace and the broader community.                                 our company and beyond.



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      Gender Committee                                                                            Sustainability Director dedicate their time to meet
                                                                                                  with Value Champions, LKS Bipartite (attended by
      Our Company is dedicated to promoting gender equality,                                      representatives from workers and the company),
      with a Gender Committee established in each subsidiary                                      and the Gender Committee. These meeting facilitate
      to focus on enhancing women’s working conditions and                                        direct dialogue with these groups to discuss progress,
      fostering awareness around women’s empowerment,                                             as well as any obstacles or challanges, allowing top
      protection, and childcare. In 2022, we standardized                                         management to offer support where needed.
      committee structures across our plantation units and
      introduced dedicated programs and budgets to support                                        Complaints of discrimination, harassment or sexual
      their activities. Additionally, a central Gender Committee                                  violence can be reported through multiple channels,
      at our head office, consisting of Directors, GMs, Managers                                  including the LKS Bipartite, Human Resources and the
      and employees from various departments, reinforces                                          anonymous Whistle Blower System, ensuring prompt
      these efforts, ensuring a unified and effective approach                                    action and resolution. Our Human Resources Officers
      to gender equality across the ANJ Group.                                                    are dedicated to ensuring that all contractors adhere to
                                                                                                  legal standards and protect the rights of their employees;
      The Gender Committee serves as a vital communication                                        maintaining a safe and respectful workplace for all.
      platform within the Company, addressing gender-related
      issues and ensuring the inclusion of female perspectives                                    Within this context, in 2023, GMIT took a significant step
      in a predominantly male environment. It advocates for                                       towards reinforcing its commitment to gender equality
      necessary facilities, like nursing rooms and spearheads                                     by establishing a Gender Committee.
      initiatives on women’s empowerment and childcare. With
      241 members across eight committees in the Group, it                                        This pivotal move was complemented by the introduction
      plays a critical role in safeguarding against discrimination,                               of new policies aimed at advancing gender equality across
      harassment and sexual violence, particularly in our labor-                                  the ANJ Group. These policies include comprehensive
      intensive operations in remote areas.                                                       protocols for child protection, ensuring a safe and
                                                                                                  nurturing environment for all children within the purview
      To combat harassment, the committee is proactive                                            of the Company’s operations and activities. Additionally,
      in monitoring, reporting, and investigating incidents,                                      protocols for grievances were established, providing
      collaborating closely with Values Champions and                                             a structured and empathetic approach to addressing
      receiving robust support from ANJ’s senior management                                       concerns related to gender equality and other related
      and Values Guardians. Further, during visit to each                                         issues.
      operational site. Commissioners, the CEO, and the


      Table 33. Ratio of Basic Salary and Remuneration of Women to Men, ANJ Group (405-2)


                                                                                                                       Median                 Mean
         Employee Category
                                                                                                                      Ratio (F/M)          Ratio (F/M)

         Directors                                                                                                       0.86                  0.71

         General Manager and Head of Department                                                                          1.17                  1.29

         Assistant Manager - Manager                                                                                     1.00                  0.95

         Staff                                                                                                           0.93                  0.90

         Non-Staff                                                                                                       0.68                  0.92

       Notes: The significant location of the operation is defined as the whole ANJ Group as stated on page 3.




      Our remuneration policy is centered on providing                                            of our actions regularly monitoring the compensation
      equitable compensation to all employees, reflecting their                                   ratio between male and female employees to ensure
      competencies, roles and responsibilities, without regard                                    fairness. Data indicates that, on average, both men and
      to gender, race or religion. We recognize the challenges in                                 women receive similar salaries and remuneration within
      demonstrating equal pay for soles that are uniquely held                                    our company. However, we recognize that this situation
      by a single individual (e.g., the sole position of President                                is dynamic and subject to change with the fluctuating
      Director). Despite these challenges, we are dedicated                                       proportions of male versus female employees, and we
      to continually enhancing areas within our control. Part                                     remain vigilant in our efforts to maintain equality.




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PROTECTING THE RIGHTS OF WORKERS
AND CHILDREN


                                                             In conducting our operations, we strictly adhere to
                                                             relevant labor laws and international treaties to ensure
                                                             our practices meet the highest ethical standards. Our
                                                             commitment is clear: we do not tolerate child labor,
                                                             any form of child exploitation or forced labor under
                                                             any circumstances, ensuring our operations are both
                                                             responsible and sustainable. (408-1, 409-1)

                                                             Our commitment to upholding human rights, labor
                                                             rights and children protection standards extends
                                                             beyond our immediate operations to include our
                                                             suppliers and contractors. These external partners
                                                             are required to comply with our Sustainability Policy
                                                             and its Implementation Guidance, ensuring that their
                                                             practices align with our Company's guiding principles
                                                             and ethical standards. This expectation is explicitly
                                                             outlined in all contractors’ Work Agreements and is a
                                                             critical component of their contractual obligations and
                                                             responsibilities. We conduct thorough examinations
                                                             to ensure compliance, reinforcing our dedication to
                                                             responsible and sustainable business practices across
                                                             our entire supply chain. (408-1, 409-1)

                                                             Labor Rights and Freedom Association

                                                             ANJ is committed to full compliance with the prevailing
                                                             Indonesian labor laws, as updated by the Omnibus Law
                                                             on Job Creation (UU Cipta Kerja). In line with these
We always ensure workers' rights are safeguarded,            regulations, and as elaborated within our Company
enabling them to carry out their tasks with comfort and
certainty.
                                                             Regulations, we ensure the protection of workers’
                                                             rights across all demographics, upholding principles
                                                             of equality and non-discrimination. We support the
We are acutely aware of the potential for forced and
                                                             freedom of association, allowing every employee within
child labor within our operations and those of our
                                                             our operations the right to form unions and engage in
suppliers. Recognizing the challenges in enforcing
                                                             collective bargaining processes.
standards consistently on the ground, we acknowledge
the associated risk of worker exploitation. In response,
                                                             Our commitment is evidenced by the Collective Labor
we prioritize the protection and upholding of labor rights
                                                             Agreements (CLA) at SMM and ANJAS. Additionally,
throughout our entire operations. This commitment
                                                             other subsidiaries follow Company regulations that are
extends to suppliers under our direct control or operating
                                                             revised every two years, incorporating feedback from
within our concession areas, where we pledge to exercise
                                                             employee representatives to ensure relevance and
stringent oversight and implement robust safeguards to
                                                             fairness. Together with LKS Bipartite, these practices
actively safeguard the welfare of all workers involved.
                                                             shows that in all operating units, we have provided
[408-1, 409-1]
                                                             channels for employees and the Company to negotiate
                                                             collectively. (2-30)
Aligned with the principles and standards of the
Roundtable on Sustainable Palm Oil (RSPO) and the
                                                             To guarantee adherence to these standards, our
Indonesian Sustainable Palm Oil (ISPO) system, our
                                                             operations undergo internal and external audits aligned
Sustainability Policy firmly emphasizes the protection
                                                             with RSPO, ISPO and ISO certifications. Furthermore,
of human rights, labor rights and children’s rights.



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                                                                              The Gender Committee conducts a socialization session
                                                                                     with the community, discussing labor rights and
                                                                                 emphasizing fair treatment and equal opportunities.




      routine inspections by local government authorities           The LKS Bipartite committees go beyond mere
      at each estate are conducted to verify compliance with        regulatory compliance, evolving into key instruments
      workers’ rights, as stipulated by the relevant regulations.   for effective two-way communication between the
      Both the Company regulations and the CLA are registered       Company and its employees. These committees are
      with and authorized by the Manpower Agencies or the           actively involved in implementing various programs,
      Ministry of Manpower and Transmigration, ensuring             ranging from safety awareness and health promotion
      our practices are not only ethical but also legally sound.    to employee engagement initiatives, contributing to a
      (2-30, 407-1)                                                 positive workplace environment.

      To ensure our employees have a thorough understanding         As of 2023, there were nine LKS Bipartite committees,
      of their rights, we conduct regular information sessions      collectively comprising 202 administrators, members,
      on Company regulations, including detailed discussions        and union representatives. To promote gender inclusivity
      on workers’ rights and obligations. Prior to joining ANJ      and female representation, each estate is required to
      employees receive comprehensive briefings on their            have at least one female worker as a member of its LKS
      job roles and the working conditions at our estates,          Bipartite. This approach emphasizes our commitment to
      enabling them to make informed decisions about their          promoting an inclusive, responsive and equitable work
      employment with us.                                           culture for all employees.

      Given the labor-intensive nature of our business, much of     In our continuous effort to enhance working conditions
      our workforce (93%) comprises laborers. In compliance         across our business operations, we initiated a
      with labor regulations, each of our subsidiaries maintains    comprehensive review process. This review was
      a bipartite joint committee, known as LKS Bipartite,          successfully completed at the Group level in December
      designed to foster labor relations between the Company        2023 and is set to expand to other units. This
      and representatives of both unionized and non-union           initiative is not only one of the key components of our
      workers. The LKS Bipartite serves as a vital platform         Environmental, Social and Governance (ESG) targets
      for workers to express their opinions, concerns, and          but is also necessitated by commercial considerations.
      aspirations directly to management, with issues being         Our commitment to improving workplace environments
      addressed in monthly meetings.                                reflects our dedication to upholding the highest standards
                                                                    of employee welfare and operational excellence, aligning
                                                                    with both our sustainability objectives and business
                                                                    requirements.


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Prevention of Forced Labor and                                 The internal memorandum extends to prohibiting the
Child Labor (POJK51-F.19)                                      presence of employees’ children within our estates,
                                                               whether during school holidays or at any other time,
We have in place stringent rules and regulations aimed         to prevent any form of indirect child labor. Estate
at preventing child labor and safeguarding workers from        administrators, along with local gender and child safety
exploitation and abuse. Adhering to prevailing labor           representatives, are vigilant in monitoring and preventing
laws, we enforce a workweek of no more than 40 hours,          unauthorized access, ensuring any child protection
structured as either eight hours across five days or           issues are promptly reported to the head office.
seven hours across six days. Remuneration for our staff
is consistently disbursed on the 26th day of each month,       Understanding the needs of our working parents,
while non-staff employees receive their wages in the           we provide daycare facilities in all units, equipped
first week of each month. Should the designated payday         with caregivers and playgrounds, offering a secure
coincide with a holiday or weekend, payment is expedited       environment for their children during work hours.
to the preceding working day.                                  Furthermore, we are committed to enabling access to
                                                               early and primary education for our employees’ children,
In alignment with our Company Regulations and/or the           aiming to eliminate the need to accompany their parents
Collective Bargaining Agreement, certain employee              at the plantations. By 2027, our goal is to ensure that
categories eligible for overtime are compensated with          these educational facilities are available to children
additional work benefits for any hours worked beyond           in all our operating sites, reinforcing our dedication
their regular schedule, as stipulated by labor laws            to employee welfare and child protection. Through the
governing overtime. This approach ensures that all our         strict implementation of these safeguards, we detected
employees are fairly compensated for their contributions       no cases of child or forced labor in 2023. (408-1, 409-1)
while promoting a healthy work-life balance and adhering
to legal standards. (409-1)                                    ANJ is also committed to ethical supply chain practices,
                                                               ensuring that legal and social protections for workers
The LKS Bipartite and the Gender Committee play a              within our supply chain. ANJ has proactively established
crucial role in upholding our commitment to human              a comprehensive compliance framework within its
rights and the strict prohibition of child labor across all    supply chain, ensuring that all employment practices are
operational areas. An internal memorandum regularly            aligned with both national labor laws and international
circulated by these committees underscores the                 labor standards. ANJ is committed to providing full
importance of protecting human rights and explicitly           social and labor protection for all individuals working
forbids child labor. On-site managers and leaders are          within its supply chain, rectifying any instances where
tasked with enforcing these directives, facing severe          such protections might be lacking. The Company has
penalties for any oversight leading to violations.             implemented rigorous monitoring processes to ensure
                                                               that working conditions meet or exceed the required
We maintain a strict minimum employment age of 18              legal and ethical benchmarks. ANJ has also taken
years across all business operations. Rigorous age             significant steps to address and eliminate any form of
verification processes are in place during recruitment         disguised employment relationships, guaranteeing
to ensure compliance, with our employee database               that all workers are appropriately recognized and
meticulously documenting each employee’s age and date          not falsely categorized as self-employed, thereby
of birth. Identity documents and educational certificates      ensuring that there are no gaps in legal employment
are mandatory for all new hires and recruitment officers       recognition. Additionally, ANJ mandates that all work
found flouting these rules face strict disciplinary actions.   within its supply chain is governed by legally recognized
To address potential violations in this matter, we have        contracts, offering clarity and security for every worker
established a rehabilitation program designed for              engaged. Through these measures, ANJ demonstrates
individuals who may be affected by such violations. This       its unwavering commitment to upholding the highest
program acts as a precautionary measure, emphasizing           standards of labor practices, reinforcing its position as
the importance of mitigation and preparedness for any          a responsible and ethical leader in the industry. (13.20.1)
potential violations, ensuring that our response system
is primed for immediate activation if necessary.




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      PROTECTING THE HEALTH AND SAFETY
      OF OUR WORKERS (POJK51-F.21)




      THE HEALTH AND SAFETY
      OF OUR EMPLOYEES AND
      CONTRACTORS IS A COMPANY’S
      PRIORITY."

      Understanding the profound impact that occupational            management system. This system is designed around
      health accidents and incidents can have not only on            the identification and assessment of workplace risks
      our workforce but also on the broader reputation and           and integrates a structured hierarchy of policies, plans,
      operational stability of our Company, we are committed         Standard Operating Procedures (SOPs), and programs.
      to rigorous risk mitigation strategies. Accidents and          Our OHS management system is inclusive, covering the
      injuries not only affect individuals personally but can also   full spectrum of activities of our 9,943-person strong
      tarnish the Company’s reputation and can potentially           workforce.
      lead to significant uninsured losses. Moreover, incidents
      involving the surrounding community have the potential         Moreover, the scope of this system extends beyond our
      to escalate into unrest or demonstrations, posing              direct employees to encompass all contractors and
      security risks to our operations.                              contract workers whose duties and work environment
                                                                     fall under our jurisdiction. It also includes provisions
      Given these considerations, our overarching goal is to         for guests visiting our facilities, ensuring their health
      minimize the risk of workplace accidents and incidents,        and safety during their stay. Additionally, the OHS
      striving toward the ultimate objective of achieving            management system encompasses activities conducted
      zero work-related accidents and ill health across all          outside our immediate locations, such as travel and
      our subsidiaries and properties. This commitment to            transportation related to work, further illustrating our
      maintaining a safe and healthy work environment is             commitment to the health and safety of all individuals
      integral to our operational ethos: ensuring the well-being     associated with our operations, regardless of their
      of our employees while safeguarding the Company’s              location. (403-1, 403-8)
      reputation and operational continuity.
                                                                     Our    Occupational   Health  and    Safety    (OHS)
      Aligned with government regulations applicable                 management system is rigorously structured; guided
      to enterprises of our scale, we have established a             by a comprehensive framework of internal regulations,
      comprehensive Occupational Health and Safety (OHS)             Standard Operating Procedures (SOPs) and Work




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                                                                Our organization prioritizes Occupational Health and
                                                                Safety (OHS) across all units, with our palm oil and sago
                                                                production units completing internal OHS audits and
                                                                units such as ANJA, ANJAS, SMM, KAL, PMP and GMIT
                             Worker descending tower stairs
                             in safety gear, exemplifying our   undergoing external OHS audits. This comprehensive
                           commitment to health and safety.     audit ensures that 98% of our employees are protected
                                                                under an internally audited OHS management system
                                                                and 88% benefit from additional evaluation by external
                                                                audits. Furthermore, our edamame unit, GMIT, adheres
                                                                to the ISO 22000 standard for food safety, which also
                                                                encompasses workplace health and safety requirements.
                                                                GMIT undergoes annual external assessments to
                                                                maintain this standard, demonstrating our commitment
                                                                to the highest levels of safety and quality across all
                                                                operations. (403-8)

                                                                Activities that fall outside our direct oversight, such as
                                                                those undertaken by our indirect smallholder Fresh Fruit
                                                                Bunch (FFB) suppliers, are not covered by our system.
                                                                However, we actively encourage the adoption of health
                                                                and safety practices among them. Our large contractors
                                                                are required, through contractual agreements, to comply
                                                                with our health and safety standards. This includes
                                                                implementing an Environmental, Health and Safety (EHS)
                                                                strategy, appointing an EHS officer, signing a Letter of
Instructions. These guidelines specifically address             Commitment (LOC), and engaging in our routine safety
activities associated with high health and safety hazards,      meetings. We keep track of our vendors’ and suppliers’
ensuring a consistent and systematic approach to risk           health and safety statistics to assess their adherence
mitigation across all operations. We align our OHS              to our standards. Additionally, vendors and suppliers
management practices with internationally recognized            dealing with hazardous goods and materials or items
standards and guidelines, including those set by the            impacting health and safety, must meet all relevant
International Labour Organization (ILO), the ISO 45001          regulations, certifications, and standards as part of their
standard for OHS management systems, and the ISO                contractual obligations with the Company. (403-7)
31000 standards for risk management. Additionally,
our system adheres to specific health and safety                Our employees play a crucial role in the development,
requirements mandated by the Indonesian government.             implementation and evaluation of our Occupational
To ensure compliance and efficacy, our OHS management           Health and Safety (OHS) management system. Their
system undergoes regular audits. These audits measure           active involvement serves as a vital platform for
our practices against the aforementioned international          enhancing awareness, facilitating discussions and
standards as well as the Indonesian government’s SMK3           reflecting on various aspects of health and safety,
standard (Sistem Manajemen Kesehatan dan Keselamatan            including performance, audit outcomes and lessons
Kerja or Occupational Health and Safety Management              learned. This participatory approach is detailed
System). This rigorous auditing process helps to ensure         within our Standard Operating Procedures (SOPs),
that our health and safety practices not only meet but          especially in the SOP dedicated to external and internal
exceed the required legal and international benchmarks,         consultation, involvement and communication, ensuring
demonstrating our unwavering commitment to                      a comprehensive and collaborative approach to OHS
maintaining a safe and healthy work environment for all         management. (403-4)
employees, contractors and visitors. (403-1)




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      Workers and contractors are contractually obligated to
      follow our Occupational Health and Safety (OHS) policies
      and procedures. In alignment with current legislation
      and the ISO 45001 standard, employees can refuse
      work on the grounds of safety concerns without fear of
      retaliation. Our commitment ensures that any employee
      who declines to work due to unsafe conditions or who
      reports such conditions, is protected from retribution.
      We promptly respond to these reports by conducting
      a thorough analysis and taking necessary steps to
      address and mitigate the associated risks. Employees
      are encouraged to communicate any health and safety
      concerns directly to the Environmental, Health and
      Safety (EHS) Department. There are systems in place
      for those who wish to submit anonymous reports. The
      specific procedures for reporting OHS concerns and
      incidents are comprehensively detailed in our incident
      management Standard Operating Procedure (SOP),
      ensuring clarity and accessibility for all employees in
      maintaining a safe work environment. (403-2, 403-4)


      Building a Safety Culture

      We are dedicated to cultivating a culture of accountability
      and personal responsibility among our employees,
      emphasizing the importance of individual and collective
      safety. Recognizing that the awareness and safety
      culture of our workforce is pivotal to our overall safety
      performance, we are committed to enhancing health
      and safety knowledge across our diverse employee base,
      spanning various cultural and educational backgrounds
      across all locations. This involves a comprehensive
      engagement, consultation, and education strategy
      on hazard and risk management in the workplace,
      underscoring our commitment to building a strong
      health and safety culture.

      To elevate employee understanding of health and safety,       Our efforts extend to certification training developed by
      we utilize a variety of tools and methods, including          the Environmental, Health and Safety (EHS) department,
      pamphlets, safety signs, presentations, workshops, and        with sessions conducted by both internally and
      targeted training sessions. Regular safety campaigns          externally accredited trainers. In line with regulatory
      and information roadshows featuring promotion posters,        requirements, each subsidiary features a Health and
      booklets and safety conversations aim to keep health          Safety Committee Supervision Body (P2K3), registered
      and safety themes front and center.                           with the local government’s Manpower Agency. This
                                                                    committee, comprised of management and employee
      General health and safety training is mandatory for all       representatives, plays a crucial role in providing health
      employees, starting with their induction and continuing       and safety advice, analyzing performance data, and
      throughout their first year of employment and beyond.         serving as a platform for employee feedback. Overseen
      We also provide specialized training tailored to the          by the EHS Department and led by senior management,
      specific risks associated with various job functions,         the committee meets monthly, ensuring continuous
      including mechanics, electrical work, chemical handling,      oversight and improvement of our health and safety
      construction, first aid, transportation and emergency         initiatives. (403-2, 403-3, 403-4)
      management.




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Managing Health and Safety Risks                                            The results of our HIRARC assessments identify the
Our approach to health and safety hazard assessment                         principal high-risk work activities within our estates,
is systematic and thorough, employing the Hazard                            which are then documented and addressed in our OHS
Identification Risk Assessment and Risk Control                             management plans and safety performance objectives.
(HIRARC) technique for routine tasks and the Job Safety                     To effectively manage these risks, we implement a
Analysis (JSA) method for non-routine tasks. These                          hierarchy of controls tailored to mitigate the identified
assessments are conducted annually, following incidents                     hazards. In the event of an incident or accident, the unit
or accidents, and upon the identification of a new high-                    leader must report it within 24 hours. The severity of
risk activity. Our Environmental, Health and Safety                         the incident dictates the formation of an Investigative
(EHS) Department, staffed with qualified professionals,                     Team, comprising management, subject-matter
oversees this process, with field supervisors trained                       experts, EHS specialists and when necessary, external
in HIRARC executing the assessments. The findings of                        parties. Following the investigation, a conference is
the HIRARC assessment are reviewed by management                            held to review the findings, evaluate the causes and
and communicated to all staff to ensure widespread                          collect recommendations for preventive measures and
awareness and understanding. (403-2, 403-3)                                 improvements. (403-3, 403-9)



Table 34. High-Risk Work Hazards and Controls (403-9, 403-10)


    Hazardous               Type of          Location       Elimination, Substitution           Administrative              Personal
 Activities at ANJ          Hazard                              and Engineering                   Controls                  Protective
     Estates                                                        Controls                                             Equipment (PPE)

Harvesting of FFB       Injury, crushed   Estate           1. Modification of “Egrek” or    Awareness-raising and       Boots, safety goggles
                        by FFB                                “Dodos”                       training                    and safety helmets
                                                           2. Safer harvesting position

Mixing of               Inhalation,       Estate           1. Use of manual pump/           Awareness-raising and       Boots, safety goggles,
chemicals               splashing,                            agitator                      training                    respirators, rubber
(pesticides/            ingestion of                       2. Use of low-risk chemical                                  gloves and aprons
herbicides)             chemicals                          3. Mixing carried out outdoors

Harvesting near         Electric shock    Estate           1. Remove oil palm trees         1. Awareness-raising,       Boots,safety
power lines                                                   growing near the power           training and             helmets and cotton
                                                              line (radius of minimum          supervision during       gloves
                                                              10 meter or based on-site        work
                                                              assessment)                   2. Working permit
                                                           2. Use of double insulator       3. Putting danger signs
                                                              material on the Egrek grip       on trees
                                                           3. Egrek knife sheath made of
                                                              insulator material

Welding and             Electric shock,   Central          1. Installation of “local        1. Welding and cutting      Safety shoes, welding
cutting                 burning           Workshop &          exhaust”                         permit                   goggles, leather
                                          Transportation   2. Adding insulator cover        2. Awareness-raising,       gloves and aprons,
                                                              material on the welding          training and             fire blankets
                                                              transformer                      supervision during
                                                           3. Modify the connection of         work
                                                              power from/to the welding
                                                              panel/transformer

Working at heights      Falling or        Mill             Installation of platform/        1. Working at heights       Safety shoes, safety
                        crush injury                       ladder/scaffolding                  permit                   helmets, and full-
                                                                                            2. Awareness-raising,       body harness
                                                                                               training and
                                                                                               supervision during
                                                                                               work

Working in restricted   Lack of oxygen,   Mill             1. Installation of ventilator/   1. Entry permit and gas     Safety shoes,
spaces                  poisoning,                            blower                           check                    safety goggles,
                        cold,                              2. Installation of manhole/      2. Warning signs            special clothes, and
                        overheating                           emergency exit                                            respirators
                                                           3. Installation of alarm




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           Hazardous               Type of        Location          Elimination, Substitution            Administrative               Personal
        Activities at ANJ          Hazard                               and Engineering                    Controls                   Protective
            Estates                                                         Controls                                               Equipment (PPE)

       Working in a power      High noise,     Mill                Installation of piping            1. Awareness-raising,        Safety shoes, ear
       plant (generator,       electrocution                       insulation and glass wool            work authority            plugs, helmet
       boiler)                                                                                       2. Warning signs

       Travelling (by car,     Collision,      All operations      Inspection and maintenance        Safety briefings, quality    Safe vehicles, seat
       helicopter, airplane,   falling,                                                              controls, safety training,   belts, hearing
       boat)                   drowning                                                              a special driving license    protection, safety
                                                                                                     (KIMPER) for drivers         vest

       Working in areas with   Collision,      All                 1. Heavy equipment and vehicles   1. Tool Box meeting before   Helmets
       heavy equipment/        crushing,       operations             use alarm buzzers when            work
       vehicles                squeezed                               operating                      2. Warning signs/safety
                                                                   2. Presence of helpers               lines i
                                                                      operators/traffic managers     3. Special permits for
                                                                                                        operators (SIO/KIMPER)
                                                                                                     4. Employee induction

       Working in areas        Hypothermia,    GMIT                1. Cold storage equipped with     1. Employee induction        Personal Protective
       with extreme            frostbite                              emergency Alarm                6. Working time – limited    Equipment
       temperature                                                 2. Transitional spots to slowly      to 15 mins at a time
                                                                      neutralize the temperature




      Our Research and Development department is at                                  Our adherence to health and safety regulations is
      the forefront of promoting environmentally friendly                            reflected in our meticulous recording of performance
      agricultural practices, specifically focusing on the                           statistics, in line with the Ministry of Manpower and
      utilization of beneficial microbes and biological control                      Transmigration guidelines. We classify workplace
      methods. This initiative aims to minimize the use                              accidents into categories such as Lost Time Injury (LTI),
      of chemical pesticides and herbicides, particularly                            Occupational Disease (OD), Fatality (FAT), First Aid,
      addressing the risks associated with chemical mixing.                          and Medical Treatment Case (MTC), with injury rates
      By implementing these biological strategies, we not only                       calculated per one million hours worked. This year, we
      safeguard the health and safety of our employees and                           recorded 35,841,322 hours worked.
      the environment but also significantly reduce chemical
      usage across our estates.                                                      While our records comprehensively cover all employees
                                                                                     and contractors on our estates and in our offices,
      The Environmental Health and Safety (EHS) Department                           accurately capturing our contractors’ safety data poses
      bears the responsibility for overseeing health and                             challenges, leading us to exclude their data from our
      safety across the Company. Staffed with EHS experts                            reports to ensure accuracy. Nonetheless, serious
      at the Head Office and dedicated EHS officers at each                          incidents involving contractors are documented. In
      business unit, the department ensures rigorous safety                          2023, we encountered two serious accidents involving
      monitoring and compliance at the estate level. EHS                             a contractors that resulted in two fatalities. Meanwhile,
      officers are instrumental in providing safety briefings to                     in the aspect of work-related illness or occupational
      estate workers and conducting safety drills. Additionally,                     disease, it is reported that there have been no instances
      EHS Representatives at each location support the EHS                           of such occurrence within this reporting period.
      Officers by carrying out regular inspections, assessing                        (403-9, 403-10)
      health and safety risks, devising mitigation strategies,
      and formalizing these actions in our standard operating
      procedures. (403-5)




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Number of Fatalities, Injuries, and Medical Treatment in 2023 (403-9)




                   FATALITY                                               LOST TIME INJURY             MEDICAL TREATMENT CASE
                                                                                (LTI)                           (MTC)

                       0*                                                           19                              40
                Hazard/Cause                                                   Hazard/Cause                      Hazard/Cause
                                                                           Handling Tools and          Including transportation, handling
                         -                                                   Transportation           tools, bitten by animal, cut by sharp
                                                                                                                objects and falling.

Notes: Two cases of contractor fatalities occured in 2023



Table 35. Work-related Injuries, per million hours worked (403-9)


                                                                                               2023      2022                     2021
  TOTAL RECORDABLE INJURY RATE                                                                 1.33       1.30                    1.81
  WEST REGION                                                                                  0.69       1.01                    1.69
         Male                                                                                  0.69       0.85                    1.49
         Female                                                                                  0        0.16                    0.20
  EAST REGION                                                                                  2.34       2.26                    2.25
         Male                                                                                  2.34       2.26                    2.10
         Female                                                                                  0           0                    0.15
  LTI FREQUENCY RATE                                                                           0.43       0.53                    0.57
  WEST REGION                                                                                  0.44       0.53                    0.60
         Male                                                                                  0.44       0.48                    0.56
         Female                                                                                  0        0.05                    0.04
  EAST REGION                                                                                  0.41       0.52                    0.45
         Male                                                                                  0.41       0.52                    0.45
         Female                                                                                  0           0                       0
  LTI SEVERITY RATE                                                                            2.79       4.73                   61.53
  WEST REGION                                                                                  1.97       5.59                    4.27
         Male                                                                                  1.97       5.43                    4.03
         Female                                                                                  0        0.16                    0.24
  EAST REGION                                                                                  4.09       1.92                  274.69
         Male                                                                                  4.09       1.92                  274.69
         Female                                                                                  0           0                    0.00
Notes:
1. Total Recordable Injury refers to recordable injuries and diseases, excluding fatalities.
2. Lost Time Injury Frequency refers to the total number of lost time accident cases.
3. Lost Time Injury Severity refers to the total number of lost days.
4. Rates are calculated per one million hours worked.




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      A female worker assists a colleague in
      donning safety gear, emphasizing the
      importance of teamwork in maintaining
      a safe workplace.




      Recorded Injuries and Incidents (403-9, 403-10)

                                                                                   TOTAL INJURIES
               2023                            59                          2022                             32                           2021                             57




                MEDICAL                                    LOST TIME INJURY                                       FATALITY                                OCCUPATIONAL
             TREATMENT CASE                                      (LTI)                                                                                       DISEASE

              2023             40                           2023             19                           2023               0                           2023               0
              2022             19                           2022             13                           2022               0                           2022               0
              2021             39                           2021             18                           2021               0                           2021               0


                                                                                   TOTAL INJURIES

               2023                             5                          2022                               7                          2021                              7




              ENVIRONMENTAL                                      PROPERTY                                        TRAFFIC                                         FIRE
                POLLUTION                                         DAMAGE                                        INCIDENT                                       INCIDENT

              2023              0                           2023               5                          2023               0                           2023               0
              2022              2                           2022               5                          2022               0                           2022               0
              2021              2                           2021               2                          2021               0                           2021               3

      Notes: The recorded environmental pollution and fire incident cases are not major cases, there is no loss of life, no disabling injury, the impacts are well below USD 1 million, and
      no grievance reported.




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                REDUCING HEAT STRESS IN OIL PALM PLANTATION WORKERS:
                A STRATEGY TO PROTECT OUR WORKFORCE
FEATURE STORY

                2023 was the hottest year on record and with      To expand the scope of our heat stress
                the upward trend of global temperatures due       prevention initiative, ANJ has also developed
                to climate change, we can only expect hotter      a program to educate workers and community
                and drier conditions in the future. This is an    members about how lifestyle factors can be
                unavoidable fact that must be addressed and,      modified to manage and minimize the risk
                in recognizing the health burden extreme          of developing non-communicable diseases,
                weather could place on our people, ANJ has        such as heart disease, diabetes mellitus
                opted to act now to adapt to local climatic       and hypertension. We aim to educate 7,451
                changes and mitigate climate-related risk,        workers through the program. In 2023, we
                where possible. ANJ’s climate initiatives are     were able to reach 1,765 individuals or 23.7%
                wide-ranging and varied, with each tailored to    of the plantation workforce. This is a great
                the specific needs of people, the environment,    achievement for ANJ in the inaugural year of
                and the local context. Among our most             the program. We believe that the program has
                prudent climate adaptation strategies is that     the potential to have a significant impact on
                which addresses heat exposure among our           a much wider community than those directly
                workers by adopting measures to tackle the        involved in plantation work and could induce
                consequences that high temperatures and           a positive shift towards healthier lifestyles
                humidity levels can have on the human body.       for generations to come.

                Exposure to high temperatures, especially         Since introducing our heat stress awareness
                in combination with high humidity, poses          campaign in 2022 and implementing our
                a serious risk to those working outdoors.         protective measures at the start of 2023, we
                Those working in manual labor, such as ANJ’s      have seen a great improvement in operational
                plantation workers, are at an even higher risk    efficiency, especially during periods of
                due to the physical nature of their work. As a    extreme heat and drought. While ANJ’s
                result, heat stress is directly linked to lower   typical approach to improving efficiency is
                productivity, which leads to lower outputs and    to mechanize processes, which also reduces
                millions of dollars of losses for the industry.   the Operational Health and Safety risk, there
                While anyone can experience heat fatigue,         are some jobs which cannot be mechanized,
                heat stroke, discomfort, heat cramps, rashes,     including that of plantation workers. Focusing
                and dehydration because of excessive heat         on adaptation and sustainable preventative
                exposure, individuals with co-morbidities,        solutions can be effective if strict regulations
                such as heart disease, hypertension, and          for quality assurance and adherence are put
                diabetes, are far more susceptible to heat-       in place.
                related illness than others.
                                                                  Climate change is a difficult issue for all of
                In line with ANJ’s model of prioritizing          us and it can be easy to become despondent.
                prevention      rather     than     managing      However, this program has demonstrated to
                consequences, we aim to address heat              us that even small changes can have a great
                stress by providing adequate shade, light and     impact, which is a sentiment we hope that
                breathable working attire, cool beverages, and    more of our people can learn to appreciate
                isotonic drinks to address mineral depletion,     and integrate into their lives to support ANJ’s
                and allowing workers to take ample rest in        transition towards a more climate-friendly
                air-conditioned facilities while at work. It is   and resilient operating approach.
                essential that we not only prevent illness but
                ensure that our workers are comfortable. This
                both supports good working relationships
                and high morale and promotes productivity
                because uncomfortable workers are less
                likely to perform well.




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Our Health Services and Facilities
Health services are pivotal to our Occupational Health
and Safety (OHS) management system, highlighting
ANJ’s commitment to the comprehensive well-being of
our workforce. With seven major clinics and five support
clinics, our healthcare infrastructure is robust, staffed
by a dedicated team of six doctors, nineteen nurses
and twenty-six midwives. These facilities are equipped
to provide a wide range of services, from occupational
medical services and emergency care to high-quality
general healthcare, including maternal and childcare,
as well as testing laboratories. Given that many of
our operations are in rural areas, where access to
basic medical services can be significantly limited,
the availability of these clinics plays a crucial role in
ensuring the health and well-being of our employees,
their families and the surrounding community. This
initiative underscores our commitment to going beyond
occupational health, offering comprehensive healthcare
solutions that address the broader needs of our
workforce and their communities. (403-6)

Our health workers play an indispensable role beyond
delivering medical services; they are key in identifying and
mitigating occupational hazards that could compromise
the health of our employees. Initiatives such as providing
first-aid training, procuring necessary medicines and
first-aid kits, and conducting canteen inspections are
integral to our comprehensive health strategy. Moreover,
during the COVID-19 pandemic, health workers took a                                   Our medical staff are always ready to treat
dominant role in promoting a healthy lifestyle among our                                  patient who require further treatment.
workforces. This included raising awareness about the
importance of good nutrition, maintaining cleanliness,
and adhering to infection prevention guidelines, all of
which are crucial to safeguarding the health and well-
being of our employees and their families during such
                                                               Further supporting our commitment to employee
challenging times. (403-6)
                                                               health, we facilitate regular medical check-ups for all
                                                               workers. Employees over the age of 40 are entitled to
To ensure the well-being and health security of our
                                                               annual check-ups, while those under 40 receive biennial
workforce, we provide comprehensive health insurance
                                                               check-ups. Moreover, employees engaged in high-risk
benefits to all our permanent employees. This coverage
                                                               jobs undergo specialized medical evaluations to identify
includes enrollment in the government-mandated
                                                               any health risks associated with their specific roles.
health insurance program, Badan Penyelenggara Jaminan
                                                               The outcomes of these medical examinations, along
Sosial Kesehatan (BPJS Kesehatan), supplemented by
                                                               with doctor recommendations, inform any necessary
additional private health insurance. This dual-layered
                                                               adjustments to job assignments and activities, ensuring
health insurance scheme significantly reduces the
                                                               the long-term health and safety of our workforce.
financial barriers to accessing medical treatments,
                                                               Additionally, the above mentioned employees also
thereby enhancing healthcare accessibility for our
                                                               receive allowances of special food/beverage for nutrition
employees and their families.
                                                               purposes. All these practices are carried out with the
                                                               utmost care, recognizing the imperative need to maintain
                                                               the confidentiality of employees’ medical records.
                                                               (403-3, 403-6)



Patient examination by a resident doctor
at inpatient facility in our clinic.




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                           ANJ’S HEALTH CLINICS ARE NOW EQUIPPED
                           WITH NEW TESTING LABORATORIES
  FEATURE STORY



                           ANJ HAS MADE CONSIDERABLE STRIDES IN
                           IMPROVING HEALTHCARE QUALITY WITHIN
                           ITS CLINICS BY SETTING UP ADVANCE
                           TESTING LABORATORIES. THIS STRATEGIC
                           DEVELOPMENT MARKS A MILESTONE IN ITS
                           COMMITMENT TO IMPROVING HEALTHCARE
                           FOR EMPLOYEES AND THE COMMUNITY
                           AND SETS A NEW STANDARD FOR CLINICAL
                           SERVICES WITHIN ITS OPERATIONAL SITES."




                           By integrating new diagnostic technologies,           Further to this accomplishment was the
                           ANJ clinics are now better equipped to offer          upgrading of some of our BPJS’ certified clinics
                           accurate and timely health assessments.               as “Klinik Pratama” or “Primary Clinic”. Klinik
                           This upgrade enables the early detection of           Pratama plays a crucial role in Indonesia’s
                           diseases, personalized treatment plans, and           healthcare landscape, serving as the first point
                           more effective management of ongoing health           of contact for individuals seeking medical
                           conditions, ensuring that patients receive the        attention. These clinics are foundational to
                           best care possible. The presence of onsite            providing accessible, affordable, and quality
                           laboratories also significantly reduces the           healthcare, especially in areas where hospital
                           wait times for test results, which is crucial         facilities may be scarce or distant. Klinik Pratama
                           for the timely initiation of treatment. This          often collaborates with higher-level healthcare
                           enhancement in diagnostic capabilities is             facilities for cases that require specialized
                           expected to lead to higher patient satisfaction       treatment, ensuring a continuum of care for
                           and better overall health outcomes.                   patients. Through referrals and partnerships,
                                                                                 they ensure that patients receive timely and
                           The new laboratories are staffed by skilled           appropriate treatment, bridging the gap between
                           professionals trained in modern diagnostic            primary and specialized healthcare services.
                           techniques, ensuring that the services
                           provided meet the highest standards of                In the heart of South Sorong Regency, Southwest
                           accuracy and reliability. The training and            Papua, the inauguration of Klinik Pratama at
                           development of laboratory staff conducted to          PPM, marked by a ceremonial signing by ANJ
                           enhance professional growth and excellence            Commissioner, Dr. Sjakon G. Tahija, heralds a
                           in healthcare provision to the employees.             new era of improved healthcare quality within
                                                                                 ANJ’s operational areas.



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                                                              “As an employee of PT Permata Putera Mandiri (PPM),
                                                              I greatly appreciate the enhancements made to our
                                                              healthcare facilities. The opening of the Klinik Pratama
                                                              is not just an upgrade in infrastructure but also an
                                                              improvement in the quality of healthcare services that
                                                              my family and I enjoy. This facility provides a range of
                                                              health services, and now with the latest addition of
                                                              clinical laboratory facility, my family and I can quickly
                                                              get blood test results, allowing for early diagnosis. The
                                                              existence of this clinic means a lot to us, providing direct
                                                              access to quality health services without having to travel
                                                              far from where we work and live. We are deeply thankful
                                                              for ANJ’s efforts in raising health standards in our work
                                                              environment and supporting the health of us and our
                                                              families.”, said Erick Hutagaol, Kerani Estate Divisi 2
                                                              Estate Gaina
This move is not just about expanding facilities; it is a
strategic effort to enhance the caliber of health services    ANJ’s health initiatives represent a model for how
provided. With a focus on comprehensive care, the             corporations can play a pivotal role in enhancing
clinic offers general practitioner consultations, routine     community health services. These efforts not only
health checks, family health services, preventive health      improve health outcomes but also foster a sense of
programs, emergency services along with availability          security and belonging among the workforce, enhancing
of ambulance, in-patient and out-patients services,           overall productivity and morale. It also showcases the
family health services, among other services. This broad      potential for corporate initiatives to fill gaps in public
spectrum of care is designed to meet the diverse needs        health services, particularly in remote or underserved
of the community, ensuring that high-quality health           areas.
services are accessible to all.
                                                              The establishment and upgrading of our health are more
By integrating advanced clinical laboratory facilities, the   than just corporate milestones. They represent a deep-
clinic is positioned to offer rapid diagnostic services,      seated commitment to health, safety and community
enabling timely medical interventions for patients. This      welfare. As this clinic continues to serve the needs of
development not only benefits the immediate community         its patients, it stands as a testament to the power of
but also sets a precedent for the enhancement of              corporate responsibility and the vital role of healthcare
healthcare services for the employees and their families.     in sustainable development.

An employee of PPM shared a personal testament to the
impact of these improvements, expressing gratitude for
the enhanced quality of healthcare services.




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      ENGAGING AND EMPOWERING LOCAL COMMUNITIES
      (POJK51-B.3, POJK51-F.23)




      Our Gender Committee is committed to involving and
      empowering communities surrounding our operation areas




      Engaging with local communities is a cornerstone of our       Our dedication extends to protecting the rights of local
      sustainability efforts, recognizing that our operations       communities, recognizing the risks that our agribusiness
      in rural, peripheral and remote areas significantly           operations might pose, including issues related to land
      impact the socio-economic landscape of these regions.         acquisition, conflict, labor inequalities, exploitation,
      These areas, often characterized by limited economic          forced and child labor and violence. Our Sustainability
      opportunities, inadequate public services, and insufficient   Policy is rooted in the Universal Declaration of Human
      infrastructure, face heightened vulnerabilities due to        Rights, ensuring the protection of all stakeholders
      our presence. We must mitigate negative impacts while         affected by our activities. By maintaining open and
      amplifying positive contributions through community           accessible grievance mechanisms across our estates,
      empowerment and development initiatives.                      we ensure that communities can voice their grievances
                                                                    and concerns directly, facilitating a transparent and
      We are deeply committed to involving and empowering           responsive dialogue. (413-1)
      the communities around us, addressing their concerns,
      and safeguarding their rights. Building strong
      relationships with local stakeholders and practicing
      social responsibility are priorities in all our endeavors.
      We pledge to address all grievances, complaints, and
      concerns related to our operational impact, as per RSPO
      standards.




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Assessing Our Impacts on Local
Communities (POJK51-F.25)
To ensure a deep understanding of the impacts our
operations have on local communities, we conduct a
Social Impact Assessment (SIA) at each of our sites.
These assessments are crucial for identifying both actual
and potential impacts on the communities surrounding
our operations. By analyzing socio-demographic and
cultural factors, SIAs offer valuable insights that guide
us in mitigating possible conflicts and adverse outcomes.
(413-1)

Adhering to RSPO standards, we initiate these
assessments at the beginning of our operations in each
estate, with a commitment to reevaluating the findings
at least once every two years. This approach allows
us to stay informed and responsive to the evolving
dynamics and needs of the communities we engage with,
ensuring that our presence contributes positively to their                          Our team conversing, discussing about
                                                                                      community feedback through social
sustainable well-being. (413-1)                                                          mapping activities to guide future
                                                                                                                   actions.
To comprehensively understand the social dynamics and
conditions of the local communities where we operate,
we implement Social Mapping exercises. Recognizing
the distinct characteristics of each community, including     to refine our strategies based on community feedback
their specific concerns and needs, Social Mapping             and scientific insights, thereby ensuring our operations
serves as an invaluable tool. It provides tailored program    are sustainable and socially responsible from the outset.
recommendations aimed at mitigating the potential             (413-1)
negative impacts associated with each community’s
unique social fabric. (413-1)                                 We actively engage with local communities to gather
                                                              their perspectives through Focus Group Discussions
Our strategy includes conducting Social Mapping every         (FGD) and informal conversations. These interactions
four years, with an annual review of the findings to          are invaluable for obtaining nuanced insights that both
ensure our actions remain relevant and effective. Both        supplement and verify the findings from our impact
Social Impact Assessments (SIA) and Social Mapping            evaluations and Social Mapping studies. Through these
studies are carried out by independent external parties,      discussions, communities can critique the effectiveness
ensuring objectivity and integrity in data collection and     of our initiatives and suggest improvements or
analysis. This approach underscores our commitment            expansions to our existing programs.
to understanding and responsibly addressing the social
implications of our operations, thereby fostering positive    FGDs, which typically involve twenty-five participants
community relations and sustainable development.              representing diverse stakeholder groups, are designed
(413-1)                                                       to elicit feedback on our impacts and to understand the
                                                              expectations and concerns of the local community. We
Before initiating operations at any of our sites, we          conduct FGDs annually in our West Region, whereas in
undertake an Environmental Impact Study, known in             the East Region, we have found that a more informal and
Indonesia as Analisis Mengenai Dampak Lingkungan              personal approach to engagement aligns better with the
(AMDAL). This comprehensive study is conducted in line        local cultural and social norms.
with Indonesian regulations and includes a social impact
assessment to ensure a holistic understanding of our          Additionally, to ensure the accuracy of the insights
operations’ potential effects on both the environment         gained from these discussions, we administer short
and local communities. The AMDAL study is detailed,           surveys to at least thirty respondents in each estate.
encompassing environmental impact monitoring and              This method helps us gather more information and
management plans (Rencana Pengelolaan Lingkungan              validate the outcomes of our discussions, enabling us
dan Rencana Pemantauan Lingkungan, RKL/RPL), and              to make informed decisions and tailor our community
incorporates a public engagement process. This process        engagement strategies effectively.
is crucial for validating the study’s findings, allowing us




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      Based on the above, we have identified actual and potential negative impacts of our operations, as described in
      Table 36 below.

      Table 36. Significant Actual and Potential Negative Impacts on Local Communities (413-2)


        Actual/Potential Negative Impacts            Location                                   Description

       Conflict and unrest related to plasma                         Potential social conflict, unrest and/or jealousy within the
                                                ANJAS, KAL, SMM,
       and partnership smallholders’                                 community as well as between the community and the Company
                                                PPM, PMP
       programs                                                      due to the plasma program

       Conflict over land ownership and                              Social conflicts in the community due to unclear land ownership
                                                PPM, PMP, ANJAP
       ownership boundaries                                          boundaries during land acquisition and compensation

       Conflicts and complaints about                                Complaints that Company activities have caused environmental or
                                                SMM, KAL, ANJA
       operational impacts                                           social issues

                                                ANJA, ANJAS, KAL,    High expectations to receive jobs, community development
       Expectations and dependence on
                                                SMM, PPM, PMP,       programs, and/or donations from the Company, potentially causing
       Company programs and donations
                                                GSB, ANJAP           conflicts when they are not provided

                                                                     Damaged roads used by employees to and from estates, as well as
       Infrastructure damage                    KAL, ANJAS
                                                                     by the local community

                                                ANJA, ANJAS, SMM,
                                                                  Wildfires causing economic and public health impacts on local
       Uncontrolled land and vegetation fires   KAL, PPM, PMP,
                                                                  communities, as well as ecosystem damage
                                                ANJAP




      Respecting the Rights of Local
      Communities

      Understanding the critical importance of land rights
      to local communities’ livelihoods, we approach land
      acquisition for plantation development with utmost
      care to avoid conflicts over land boundaries and
      usage rights. To ensure fairness and transparency
      in acquiring new land, we have adopted Free Prior
      Informed Consent (FPIC)-based protocols. This process
      involves engagement with local communities and their
      leaders, and local government authorities, ensuring all
      parties are fully informed and in agreement before any
      development begins.

      Our engagement strategy not only helps to establish
      positive relationships with communities around our
      operations but also in assessing how our developments
      can positively impact local well-being. Importantly, any
      individual or community holding existing land use rights
      has the option to decline transferring these rights to
      ANJ, regardless of the compensation offered. FPIC from
      affected communities is a mandatory prerequisite for
      our land acquisition and development efforts to move
      forward.



                                                                                      Our team and community members engaging in dialogue,
                                                                                       emphasizing the importance of open communication for
                                                                                                         mutual growth and shared progress.




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                                                                           A harmonious relationship and mutual trust
                                                                               with the community are essential for us
                                                                              because when the community thrives, we
                                                                                                           all thrive.




In 2023, we report that our operations did not                 To ensure communities can voice their complaints, all
infringe upon the rights of local, tribal or traditional       our estates are equipped with a Grievance Mechanism,
communities. Throughout the year, we received a total          supported by an independently verified SOP. This
of 31 community complaints, with 10 originating from           mechanism allows complaints to be lodged in person,
the East Region, whereas 6 of them were environmental-         and via email or phone, with each grievance recorded
related matters. By the end of the year, we successfully       and processed to ensure thorough investigation and
resolved all of these issues. This demonstrates our            resolution within fourteen days of receipt. To further
commitment to maintaining harmonious relations with            refine our grievance management, we have implemented
local communities and ensuring their rights and well-          a stakeholder and grievance database to streamline the
being are upheld. (POJK51-F.16,POJK51-F.24)                    internal tracking, review, and handling of complaints.


Communication and Engagement with                              Our commitment to evaluating the effectiveness
                                                               of our community engagement efforts involves
Local Communities (POJK51-F.24)
                                                               multiple mechanisms, including monthly coordination
                                                               performance reviews and meetings at various
Our approach to community engagement is structured             management levels to discuss and address issues beyond
around formal mechanisms such as stakeholder                   the estate level. The Sustainability Committee conducts
meetings, information sessions, dialogues and public           quarterly reviews of RD programs and community
consultations. These interactions, which are essential         activities, assessing a range of indicators to gauge
for executing Community Involvement and Development            program success. Additionally, the effectiveness of our
(CID) initiatives, Responsible Development (RD) projects,      community programs is scrutinized through internal and
or capacity-building activities, occur frequently with local   external RSPO audits, focusing on management plans,
communities. Annually, each business unit organizes            improvement efforts, and grievance handling.
at least one stakeholder meeting, providing a platform
to update communities on our projects, discuss CID             In 2023, our community initiatives have had positive
initiatives, address concerns and respond to inquiries.        and tangible outcomes, with increased self-sufficiency,
These meetings typically include smallholder farmers,          contribution, and collaboration from the community. This
community leaders, local government representatives,           growing sense of ownership among local communities
and our representatives, facilitating a comprehensive          marks a promising step towards our goal of achieving
stakeholder analysis through continuous engagement.            collective targets, highlighting a successful shift in
(2-29, 413-1)                                                  community engagement practices across our operations.




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Independent Assurance Statement                     00
GRI Content Index                                   00
Topics in the Applicable GRO Sector Standards
                                                    00
Determined as not Material
Cross-Reference to SDGs                             00
POJK 51 Index                                       00
Notes on Methods and Conversion factors             00
Response to The Previous Year's Report's
                                                    00
Feedback
Feedback Form                                       00
Abbreviations                                       00




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      APPENDIX 1
      INDEPENDENT ASSURANCE STATEMENT




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APPENDIX 1




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      APPENDIX 1




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APPENDIX 1




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      APPENDIX 2
      GRI CONTENT INDEX
      Austindo Nusantara Jaya Tbk has reported in accordance with the GRI Standard
      for the period 1 January 2023 - 31 December 2023


       Gri Standard /Other                                                                Gri Sector
                                                              Disclosure                                 Location           Notes
             Source                                                                       Standard

       GENERAL DISCLOSURE
       GRI 2 : General
                                   2-1   Organizational Detail                                            3, 4, 5         Disclosed
       Disclosure
                                         Entities included in the organization’s
                                   2-2                                                                       3            Disclosed
                                         sustainability reporting
                                   2-3   Reporting period, frequency and contact point                       3            Disclosed
                                   2-4   Restatements of information                                         3            Disclosed
                                   2-5   External assurance                                                  3            Disclosed
                                         Activities, value chain and other business
                                   2-6                                                                      3, 4          Disclosed
                                         relationships
                                   2-7   Employees                                                          124           Disclosed
                                   2-8   Workers who are not employees                                      122           Disclosed
                                   2-9   Governance structure and composition                          28, 29, 32, 33     Disclosed
                                         Nomination and selection of the highest
                                  2-10                                                                      30            Disclosed
                                         governance body
                                  2-11   Chair of the highest governance body                               29            Disclosed
                                         Role of the highest governance body in
                                  2-12                                                                    29, 32          Disclosed
                                         overseeing the management of impacts
                                         Delegation of responsibility for managing
                                  2-13                                                                    32, 33          Disclosed
                                         impacts
                                         Role of the highest governance body in
                                  2-14                                                                      22            Disclosed
                                         sustainability reporting
                                  2-15   Conflicts of interest                                              29            Disclosed
                                  2-16   Communication of critical concerns                                 37            Disclosed
                                         Collective knowledge of the highest governance
                                  2-17                                                                      31            Disclosed
                                         body
                                         Evaluation of the performance of the highest
                                  2-18                                                                      30            Disclosed
                                         governance body
                                  2-19   Remuneration policies                                            30, 31          Disclosed
                                  2-20   Process to determine remuneration                                  31            Disclosed
                                  2-21   Annual total compensation ratio                                    31            Disclosed
                                  2-22   Statement on sustainable development strategy                      21            Disclosed
                                  2-23   Policy commitments                                             20, 21, 111       Disclosed
                                  2-24   Embedding policy commitments                                       21            Disclosed
                                  2-25   Processes to remediate negative impacts                            37            Disclosed
                                         Mechanisms for seeking advice and raising
                                  2-26                                                                    37, 40          Disclosed
                                         concerns
                                  2-27   Compliance with laws and regulations                               40            Disclosed
                                  2-28   Membership associations                                            41            Disclosed
                                  2-29   Approach to stakeholder engagement                               35, 153         Disclosed
                                  2-30   Collective bargaining agreements                                135, 136         Disclosed




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Gri Standard /Other                                                             Gri Sector
                                                 Disclosure                                     Location          Notes
      Source                                                                    Standard

MATERIAL TOPICS
GRI 3 :MATERIAL
                       3-1    Process to determine material topics                                 22           Disclosed
TOPICS
                       3-2    List of material topics                                              22           Disclosed


MATERIAL TOPICS
                                                                                  13.1.1          82 - 86
                                                                                  13.2.1          80 - 81
                                                                                  13.3.1         98 - 112
                                                                                  13.7.1        114 - 118
                                                                                  13.8.1          92 - 97
                                                                                 13.12.1        150 - 153
GRI 3 :MATERIAL                                                                  13.15.1        126 - 134
                       3-3    Management of Material Topics                                                     Disclosed
TOPICS                                                                           13.16.1        135 - 137
                                                                                 13.17.1        135 - 137
                                                                                 13.18.1        135 - 136
                                                                                 13.19.1        138 - 147
                                                                                 13.20.1           125
                                                                                 13.22.1          45 - 50
                                                                                 13.23.1          51 - 57


GRI 201 : ECONOMIC
                      201-1   Direct economic value generated and distributed    13.22.2           50           Disclosed
PERFORMANCE
                              Financial Implications and other risks and
                      201-2                                                       13.2.2         76, 80         Disclosed
                              opportunities due to climate change
                              Defined benefite plan obligations and other
                      201-3                                                                        50           Disclosed
                              retirement plans
                      201-4   Financial assistance received from gevernment                        50           Disclosed


GRI 203 : INDIRECT
                      203-1   Infrastructure investment and sevices supported    13.22.3           61           Disclosed
ECONOMY IMPACT
                      203-2   Significant indirect economy impact                13.22.4        59, 60, 63      Disclosed


GRI 302 : ENERGY      302-1   Energy consumption within the organization                           87           Disclosed
                      302-2   Energy consumption outside of the organization                       81           Disclosed
                      302-3   Energy intensity                                                   87, 88         Disclosed
                      302-4   Reduction of energy consumption                                    87, 90         Disclosed
                              Reduction in energy requirements of products
                      302-5                                                                        90           Disclosed
                              and services


GRI 303 : WATER AND
                      303-1   Interactions with water as a shared source          13.7.2      115, 116, 118     Disclosed
EFFLUENTS
                              Management of water discharged-related
                      303-2                                                       13.7.3      116, 118, 119     Disclosed
                              impacts
                      303-3   Water withdrawal                                    13.7.4           116          Disclosed
                      303-4   Water discharged                                    13.7.5           116          Disclosed
                      303-5   Water consumption                                   13.7.6           116          Disclosed


                              Operational sites owned, leased, managed in, or
GRI 304 :
                      304-1   adjacent to, protected areas and areas of high      13.3.2           103          Disclosed
BIODIVERSITY
                              biodiversity value outside protected areas
                              Significant impacts of activities, products and
                      304-2                                                       13.3.3           100          Disclosed
                              services on biodiversity




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       Gri Standard /Other                                                                   Gri Sector
                                                               Disclosure                                   Location           Notes
             Source                                                                          Standard

                                  304-3   Habitats protected or restored                       13.3.4     104, 106, 112      Disclosed
                                          IUCN Red List species and national conservation
                                  304-4   list species with habitats in areas affected by      13.3.5          105           Disclosed
                                          operations


       GRI 305 : EMISSIONS        305-1   Direct (Scope 1) GHG emissions                       13.1.2        82, 83          Disclosed
                                  305-2   Energy indirect (Scope 2) GHG emissions              13.1.3        82, 83          Disclosed
                                  305-3   Other indirect (Scope 3) GHG emissions               13.1.4          82            Disclosed
                                  305-4   GHG emissions intensity                              13.1.5       82, 83, 84       Disclosed
                                  305-5   Reduction of GHG emissions                           13.1.6       82, 83, 84       Disclosed
                                  305-6   Emissions of Ozone-Depleting Subtances (ODS)         13.1.7          82            Disclosed
                                          Nitrogen oxides (NOx), sulfur oxide (SOx), and
                                  305-7                                                        13.1.8          91            Disclosed
                                          other significant air emissions


                                          Waste generation and significant waste-related
       GRI 306 : WASTE            306-1                                                        13.8.2          93            Disclosed
                                          impact
                                  306-2   Management of significant waste-related impact       13.8.3       94, 95, 96       Disclosed
                                  306-3   Waste generated                                      13.8.4        93, 96          Disclosed
                                  306-4   Waste diverted from disposal                         13.8.5        93, 96          Disclosed
                                  306-5   Waste directed to disposal                           13.8.6     93, 95, 96, 97     Disclosed


       GRI 308 : SUPPLIER
                                          New supplier that were screened using
       ENVIRONMENTAL              308-1                                                                        54            Disclosed
                                          environmental criteria
       ASSESSMENT
                                          Negative environmental impact in the supply
                                  308-2                                                                        54            Disclosed
                                          chain and action taken


       GRI 403 :
                                          Occupational health and safety management
       OCCUPATIONAL               403-1                                                       13.19.2       138, 139         Disclosed
                                          system
       HEALTH AND SAFETY
                                          Hazard identification, risk assessment, and
                                  403-2                                                       13.19.3       140, 141         Disclosed
                                          incident investigation
                                  403-3   Occupational health services                        13.19.4     140, 141, 147      Disclosed
                                          Worker participation, consultation, and
                                  403-4   communication on occupational health and            13.19.5       139, 140         Disclosed
                                          safety
                                          Worker training on occupational health and
                                  403-5                                                       13.19.6          142           Disclosed
                                          safety
                                  403-6   Promotion of worker health                          13.19.7          147           Disclosed
                                          Prevention and mitigation of occupational health
                                  403-7   and safety impact directly linked by business       13.19.8          139           Disclosed
                                          relationships
                                          Workers covered by an occupational health and
                                  403-8                                                       13.19.9       138, 139         Disclosed
                                          safety management system
                                                                                                          141, 142, 143,
                                  403-9   Work-related injuries                              13.19.10                        Disclosed
                                                                                                               144
                                 403-10   Work-related ill health                            13.19.11     141, 142, 144      Disclosed


       GRI 404 : TRAINING
                                  404-1   Average hours of training per year per employee                      130           Disclosed
       AND EDUCATION
                                          Programs of upgrading employee skills and
                                  404-2                                                                     128, 129         Disclosed
                                          transition assiatnce programs




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Gri Standard /Other                                                               Gri Sector
                                                 Disclosure                                       Location         Notes
      Source                                                                      Standard

                              Percentage of employees receiving regular
                      404-3                                                                         131          Disclosed
                              performance and career development reviews


GRI 405 : DIVERSITY
AND EQUAL             405-1   Diversity of governance bodies employee              13.15.2          133          Disclosed
OPPORTUNITY
                              Ratio basic salary and remuneration of women
                      405-2                                                        13.15.3          134          Disclosed
                              to men


GRI 407 : FREEDOM
                              Operations and suppliers in which the right to
OF ASSOCIATION
                      407-1   freedom of association and collective bargaining     13.18.2          136          Disclosed
AND COLLECTIVE
                              may be at risk
BARGAINING


GRI 408 : CHILD               Operations and suppliers at significant risk for
                      408-1                                                        13.17.2        135, 137       Disclosed
LABOR                         incidents of child labor


GRI 409 : Forced or           Operations and suppliers at significant risk for
                      409-1                                                        13.16.2        135, 137       Disclosed
Compulsory Labor              incidents of forced or compulsory labor


                              Operations with local community engagement,
GRI 413 : LOCAL                                                                                 59, 150, 151,
                      413-1   impact assessments, and development                  13.12.2                       Disclosed
COMMUNITIES                                                                                          153
                              programs
                              Operations with significant actual and potential
                      413-2                                                        13.12.3          152          Disclosed
                              negative impacts on local communities


GRI 414 :
                              New suppliers that were screened using social
SUPPLIER SOCIAL       414-1                                                                          54          Disclosed
                              criteria
ASSESSMENT
                              Negative social impacts in the supply chain and
                      414-2                                                                          54          Disclosed
                              actions taken


GRI 13-20 :
                              Management Material Topic - Employment
EMPLOYMENT                                                                         13.20.1      122, 125, 137    Disclosed
                              Practice
PRACTICES


GRI 13-23 : SUPPLY            Management Material Topic - Supply Chain
                                                                                   13.23.1           57         Prosperity
CHAIN TRACEABILITY            Traceability
                              Describe the level of traceability in place for
                              each product sourced, for example, whether the
                                                                                   13.23.2           57          Disclosed
                              product can be traced to the national, regional,
                              or local level, or a specific point of origin
                              Report the percentage of sourced volume
                              certified to internationally recognized standards
                              that trace the path of products through              13.23.3         48, 54        Disclosed
                              the supply chain, by product and list these
                              standards
                              Describe improvement projects to get suppliers
                              certified to internationally recognized standards
                              that trace the path of products through the          13.23.4           54          Disclosed
                              supply chain to ensure that all sourced volume
                              is certified




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      APPENDIX 3
      TOPICS IN THE APPLICABLE GRO SECTOR STANDARDS
      DETERMINED AS NOT MATERIAL

                GRI Sector            GRI
        No                                                        Topic                                     Explanation
                 Standard          Standard

                                                                                             Not Applicable
                                              The following additional sector disclosures
         1         13.3.6                                                                    Our business unit operates in the
                                              are for organizations in the aquaculture
                                                                                             Plantation industry
                                                                                             Not Applicable
                                              The following additional sector disclosure
         2         13.3.7                                                                    Our business unit operates in the
                                              is for organizations in the fishing sector
                                                                                             Plantation industry
                                                                                             Not Applicable
                                              Management Material Topic - Natural            A methodology related to Deforestation
         3         13.4.1
                                              Ecosystem Conversion                           or Conversion Free assessment is not yet
                                                                                             available.
                                              Report the percentage of production
                                              volume from land owned, leased or              Not Applicable
                                              managed by the organization determined         A methodology related to Deforestation
         4         13.4.2
                                              to be deforestation- or conversion-free,       or Conversion Free assessment is not yet
                                              by product, and describe the assessment        available.
                                              methods used
                                              For products sourced by the organization,
                                              report the following by product:
                                              - the percentage of sourced volume
                                              determined to be deforestation- or
                                              conversion-free, and describe the              Not Applicable
                                              assessment methods used;                       A methodology related to Deforestation
         5         13.4.3
                                              - the percentage of sourced volume for         or Conversion Free assessment is not yet
                                              which origins are not known to the point       available.
                                              where it can be determined whether
                                              it is deforestation- or conversion-free,
                                              and describe actions taken to improve
                                              traceability.
                                              Report the size in hectares, the location,
                                              and the type of natural ecosystems             Not Applicable
         6         13.4.4                     converted since the cutoff date on land        During the reporting period, no land
                                              owned, leased, or managed by the               clearing was conducted
                                              organization.
                                              Report the size in hectares, the location,
                                                                                             Not Applicable
                                              and the type of natural ecosystems
         7         13.4.5                                                                    During the reporting period, there were no
                                              converted since the cut-off date by
                                                                                             new suppliers to supply materials to us.
                                              suppliers or in sourcing locations.
                                              Describe the soil management plan,
                                              including:
                                              - a link to this plan if publicly available;
                                                                                             Not Applicable
                                              - the main threats to soil health identified
         8         13.5.1                                                                    During the reporting period, there were no
                                              and a description of the soil
                                                                                             significant erosion incidents
                                              management practices used;
                                              - the approach to input optimization,
                                              including the use of fertilizers.
                                                                                             Not Applicable
                                              Management Material Topic - Pesticides         The volume of pesticides used relatively
         9         13.6.1
                                              Use                                            mild compared to other chemical (such as
                                                                                             fertilizer).
                                                                                             Not Applicable
                                              Report the volume and intensity of
                                                                                             The volume of pesticides used relatively
        10         13.6.2                     pesticides used by the following toxicity
                                                                                             mild compared to other chemical (such as
                                              hazard levels
                                                                                             fertilizer).




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     GRI Sector        GRI
No                                                Topic                                      Explanation
      Standard      Standard

                                                                         Not Applicable
                                                                         98% of ANJ's products are CPO and PK,
11     13.9.1                  Management Material Topic - Food Security which are semi-finished materials, thus not
                                                                         directly related to consumers, making this
                                                                         disclosure not applicable
                               Report the total weight of food loss in       Not Applicable
                               metric tons and the food loss percentage,     98% of ANJ's products are CPO and PK,
12     13.9.2                  by the organization’s main products           which are semi-finished materials, thus not
                               or product category, and describe the         directly related to consumers, making this
                               methodology used for this calculation.        disclosure not applicable
                                                                             Not Applicable
                                                                             98% of ANJ's products are CPO and PK,
13    13.10.1                  Management Material Topic - Food Safety       which are semi-finished materials, thus not
                                                                             directly related to consumers, making this
                                                                             disclosure not applicable
                                                                             Not Applicable
                               Assessment of the health and safety           98% of ANJ's products are CPO and PK,
14    13.10.2     416-1        impacts of product and                        which are semi-finished materials, thus not
                               service categories                            directly related to consumers, making this
                                                                             disclosure not applicable
                                                                             Not Applicable
                               Incidents of non-compliance concerning        98% of ANJ's products are CPO and PK,
15    13.10.3     416-2        the health and safety                         which are semi-finished materials, thus not
                               impacts of products and services              directly related to consumers, making this
                                                                             disclosure not applicable
                                                                             Not Applicable
                               Report the percentage of production
                                                                             98% of ANJ's products are CPO and PK,
                               volume from sites certified to
16    13.10.4                                                                which are semi-finished materials, thus not
                               internationally recognized food safety
                                                                             directly related to consumers, making this
                               standards, and list these standards.
                                                                             disclosure not applicable
                                                                             Not Applicable
                               Report the number of recalls issued for       98% of ANJ's products are CPO and PK,
17    13.10.5                  food safety reasons and the total volume of   which are semi-finished materials, thus not
                               products recalled                             directly related to consumers, making this
                                                                             disclosure not applicable
                                                                             Not Applicable
                               Management Material Topic - Animal
18    13.11.1                                                                ANJ does not have any animal products,
                               Health and Wellfare
                                                                             therefore this disclosure is not applicable
                               Report the percentage of production
                                                                             Not Applicable
                               volume from sites of the organization
19    13.11.2                                                                ANJ does not have any animal products,
                               certified to third-party animal health and
                                                                             therefore this disclosure is not applicable
                               welfare standards, and list these standards
                               The following additional sector disclosure    Not Applicable
20    13.11.3                  is for organizations in the aquaculture       Our business unit operates in the
                               sector                                        Plantation industry
                                                                             Not Applicable
                               Management of Material Topic : Land and
21    13.13.1                                                                There were no significant land clearances
                               Resources Rights
                                                                             during the reporting period
                               List the locations of operations, where
                               land and natural resource rights (including   Not Applicable
22    13.13.2                  customary, collective, and informal           There were no significant land clearances
                               tenure rights) may be affected by the         during the reporting period
                               organization’s operations.
                               Report the number, size in hectares, and
                               location of operations where violations of
                                                                             Not Applicable
                               land and natural resource rights (including
23    13.13.3                                                                There were no significant land clearances
                               customary, collective, and informal
                                                                             during the reporting period
                               tenure rights) occurred and the groups of
                               rightsholders affected.




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                GRI Sector            GRI
        No                                                        Topic                                       Explanation
                 Standard          Standard

                                                                                              Not Applicable
                                                                                              Based on information from the Indigenous
                                                                                              Peoples' Alliance of the Archipelago
                                                                                              (AMAN) through the website of the
                                              Management of Material Topic : Rights of
        24        13.14.1                                                                     Indigenous Peoples' Area Registration
                                              Indigenous Peoples
                                                                                              Agency (BRWA), there are no registered,
                                                                                              verified, or certified Indigenous Peoples
                                                                                              located around the concession of PT ANJ,
                                                                                              thus this disclosure does not apply
                                                                                              Not Applicable
                                                                                              Based on information from the Indigenous
                                                                                              Peoples' Alliance of the Archipelago
                                                                                              (AMAN) through the website of the
                                              Incidents of violations involving rights of
        25        13.14.2       411-1                                                         Indigenous Peoples' Area Registration
                                              indigenous peoples
                                                                                              Agency (BRWA), there are no registered,
                                                                                              verified, or certified Indigenous Peoples
                                                                                              located around the concession of PT ANJ,
                                                                                              thus this disclosure does not apply
                                                                                              Not Applicable
                                                                                              Based on information from the Indigenous
                                                                                              Peoples' Alliance of the Archipelago
                                              Describe the identified incidents of            (AMAN) through the website of the
        26        13.14.2                     violations involving the rights of indigenous   Indigenous Peoples' Area Registration
                                              peoples.                                        Agency (BRWA), there are no registered,
                                                                                              verified, or certified Indigenous Peoples
                                                                                              located around the concession of PT ANJ,
                                                                                              thus this disclosure does not apply
                                                                                              Not Applicable
                                                                                              Based on information from the Indigenous
                                                                                              Peoples' Alliance of the Archipelago
                                              List the locations of operations where          (AMAN) through the website of the
        27        13.14.3                     indigenous peoples are present or affected      Indigenous Peoples' Area Registration
                                              by activities of the organization               Agency (BRWA), there are no registered,
                                                                                              verified, or certified Indigenous Peoples
                                                                                              located around the concession of PT ANJ,
                                                                                              thus this disclosure does not apply
                                                                                           Not Applicable
                                                                                           Based on information from the Indigenous
                                              Report if the organization has been involved Peoples' Alliance of the Archipelago
                                              in a process of seeking free, prior, and     (AMAN) through the website of the
        28        13.14.4                     informed consent (FPIC) from indigenous      Indigenous Peoples' Area Registration
                                              peoples for any of the organization’s        Agency (BRWA), there are no registered,
                                              activities                                   verified, or certified Indigenous Peoples
                                                                                           located around the concession of PT ANJ,
                                                                                           thus this disclosure does not apply
                                                                                              Not Applicable
                                                                                              There are policies and procedures related
                                              Incidents of discrimination and corrective
        29        13.15.4       406-1                                                         to this matter, and historically, there have
                                              actions taken
                                                                                              been no significant incidents during the
                                                                                              reporting period
                                                                                              Not Applicable
                                                                                              We do not differentiate allocation of jobs
                                              Describe any differences in employment
                                                                                              for specific positions. Promotion and
                                              terms and approach to compensation
        30        13.15.5                                                                     recruitment are based on competency.
                                              based on workers’ nationality or migrant
                                                                                              Up to this point, members of the local
                                              status, by location of operations
                                                                                              community have not yet developed the
                                                                                              necessary capacity for job roles needed
                                                                                              Not Applicable
                                                                                              The Indonesian government has issued a
                                              Management of Material Topic : Living           wage standard based on the cost of living
        31        13.21.1
                                              Income dan Living Wage                          for specific areas, thus ANJ, as one of
                                                                                              company operating in Indonesia, must
                                                                                              comply with the relevant regulations




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     GRI Sector        GRI
No                                                 Topic                                      Explanation
      Standard      Standard

                               Report the percentage of employees and
                               workers who are not employees and whose        Confidentiality Constraint
                               work is controlled covered by collective       According to our contractors, data
32    13.21.2                  bargaining agreements that have terms          related to Contractor Workers' Salaries is
                               related to wage levels and frequency of        information that cannot be shared by our
                               wage payments at significant locations of      contractor
                               operation
                                                                              Confidentiality Constraint
                               Report the percentage of employees and
                                                                              According to our contractors, data
                               workers who are not employees and whose
33    13.21.3                                                                 related to Contractor Workers' Salaries is
                               work is controlled paid above living wage,
                                                                              information that cannot be shared by our
                               with a breakdown by gender
                                                                              contractor
                                                                              Not Applicable
                               Management of Material Topic : Political       Our policy explicitly states that we do not
34    13.24.1
                               contributions                                  participate in or engage with any activities
                                                                              related to politics
                                                                              Not Applicable
                                                                              Our policy explicitly states that we do not
35    13.24.2     415-1        Political contributions
                                                                              participate in or engage with any activities
                                                                              related to politics
                                                                              Not Applicable
                               Management of Material Topic : Anti-
36    13.25.1                                                                 We do not have the ability to influence or
                               competitive behavior
                                                                              control the market price of our commodity
                               Legal actions for anti-competitive behavior,   Not Applicable
37    13.25.2     206-1        anti-trust, and                                We do not have the ability to influence or
                               monopoly practices                             control the market price of our commodity
                                                                              Not Applicable
                               Management of Material Topic : Anti-           Based on the company's historical track
38    13.26.1
                               corruption                                     record and core values, this is not a
                                                                              primary material concern for us
                                                                              Not Applicable
                               Operations assessed for risks related to       Based on the company's historical track
39    13.26.2     205-1
                               corruption                                     record and core values, this is not a
                                                                              primary material concern for us
                                                                              Not Applicable
                               Communication and training about anti-
                                                                              Based on the company's historical track
40    13.26.3     205-2        corruption policies and
                                                                              record and core values, this is not a
                               procedures
                                                                              primary material concern for us
                                                                              Not Applicable
                               Confirmed incidents of corruption and          Based on the company's historical track
41    13.26.4     205-3
                               actions taken                                  record and core values, this is not a
                                                                              primary material concern for us




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      APPENDIX 4
      CROSS-REFERENCE TO SDGS

                     SDG         Action Taken by The                                   SDG         Action Taken by The
       SDG Goal                                                   Page     SDG Goal                                                 Page
                    Target            Company                                         Target            Company

                             Economic impacts of                                               Economic performance and
                      1,2                                         44-50                8,1                                          44-50
                             company activity                                                  growth
                             Provision of access to health                                     Support to smallholders and
                      1,3                                          147                 8,3                                          51-57
                             services to the poor                                              cooperatives

                             Respect of community rights                               8,3     Employment and job creation      122-125
                      1,4                                     152-153
                             to land                                                           Equal opportunity
                             Desa Fokus village resilience                             8,5     of employment and                125-134
                      1,5                                         63-66                        remuneration
                             building program
                                                                                               Prevention and eradication of
                             Gerbang Emas Edamame                                      8,7                                      135-137
                                                                                               forced labor and child labor
                      2,3    Cultivation, Tani Mandiri,           63-66
                             Fresh Water Aquaculture                                           Protection of labor rights and
                                                                                       8,8                                    135-136
                                                                                               freedom of association
                             Floating Rice Fields and Food
                      2,4                                         63-66                9,1     Infrastructure investments           61-62
                             security programs

                             Provision of maternal health
                      3,1                                          147                         Emissions reduction and
                             and child care services                                   9,4                                          82-86
                                                                                               monitoring
                             Provision of health services
                      3,8    in remote areas, and health           147
                             insurance for employees                                           Hazardous waste
                                                                                       12,4                                         92-97
                                                                                               management
                             Provision of doctors, nurses,
                      3.c                                          147                         Waste management and 3R
                             and midwives in clinics                                   12,5                                         92-97
                                                                                               programs
                                                                  59-60,
                             Quality education for local
                      4,1                                         63-66,               12,7    Responsible sourcing                 51-57
                             employees' children
                                                                    69
                             Early childhood education                                 13,1    Managing climate risks               76-82
                      4,2                                          69
                             program in West Papua                                     13,2    Reducing GHG emissions               84-86
                             Learning and development                                          Village- and community-
                      4,3                                     126-131
                             programs for employees                                    13,3    based fire prevention                63-68
                                                                                               programs
                             Equal opportunity and non-
                      5,1                                     126-134
                             discrimination policy                                             Forest protection and
                                                                                       15,1                                         98-112
                                                                                               conservation
                             Prevention and protection
                             of women from harrasment                                  15,2    No deforestation policy          103-106
                      5,2                                          134
                             through the Gender
                             committee                                                 15,3    Restoration of habitats          103-106

                             Support for women in                                              Biodiversity monitoring and
                      5,5                                     132-134                  15,5                                     103-111
                             leadership roles                                                  protection

                             Water management,
                      6,3                                     114-119                  16,2    Eradication of child labor       135-137
                             effluents and discharges

                             Water management,                                                 Grievance mechanism and
                      6,4                                     114-119                  16,6                                         37-40
                             withdrawal and efficiency                                         whistleblower system

                             Provision of renewable                                    16,7    Membership in associations            41
                      7,1    energy to national electricity       87-88
                             grid
                      7,2    Renewable energy use                  88
                      7,3    Energy intensity                     87-88

                             Investments in renewable
                      7.b                                         87-88
                             energy




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APPENDIX 5
POJK 51 INDEX

      No                                                    Index Name                                                   Page

A          SUSTAINABILITY STRATEGY
A.1        Explanation of sustainability strategy                                                                       20, 22
B          OVERVIEW OF SUSTAINABILITY PERFORMANCE
B.1        Economic aspects
B.1.a      Quantity of products or services sold                                                                          47
B.1.b      Revenue or sales                                                                                               49
B.1.c      Net profit or loss                                                                                             49
B.1.d      Environmentally-friendly products                                                                              48
B.1.e      Involvement of local parties in relation to sustainable finance business processes                             51
B.2        Environmental aspects
B.2.a      Energy use                                                                                                   87 - 90
B.2.b      Reduction of emissions produced                                                                              82 - 86
B.2.c      Reduction of waste and effluents                                                                             94 - 97
B.2.d      Biodiversity conservation                                                                                   98 - 112
                                                                                                                        59 - 69
B.3        Social aspects
                                                                                                                       150 - 153
C          ORGANIZATIONAL PROFILE
C.1        Sustainability vision, mission and values                                                                    18 - 19
C.2        Company address                                                                                                 5
C.3        Scale of the business
C.3.a      Total assets or asset capitalization, and total liabilities                                                     4
C.3.b      Number of employees by gender, position, age, education, and employment status                              123 - 124
C.3.c      Shareholders and share ownership percentages                                                                    5
C.3.d      Area of operations                                                                                            3-4
C.4        Products, services, and business activities undertaken                                                        4-5
C.5        Membership in associations                                                                                     41
C.6        Significant changes in the organisation                                                                       4, 29
D          REPORT FROM THE BOARD OF DIRECTORS
D.1.a      Policies to respond to challenges in fulfilling the sustainability strategy                                  11 - 14
D.1.b      Sustainable finance implementation                                                                           12 - 13
D.1.c      Target achievement strategy                                                                                  12 - 13
E          SUSTAINABILITY GOVERNANCE
E.1        Person in charge of sustainable finance implementation                                                       32 - 33
E.2        Development of sustainable finance competencies                                                                31
E.3        Risk assessment on sustainable finance implementation                                                          79
E.4        Stakeholder relations                                                                                          35
E.5        Issues and challenges to sustainable finance                                                                   80
F          SUSTAINABILITY PERFORMANCE
F.1        Activities to build sustainability culture                                                                   18, 30
           ECONOMIC PERFORMANCE
           Production targets and performance, portfolios, financing targets, or investments, revenue, and profit
F.2                                                                                                                     45 - 48
           and loss




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             No                                                  Index Name                                               Page

                   Production targets and performance, portfolios, financing targets, or investments in financial
       F.3                                                                                                                 50
                   instruments or projects that are aligned with sustainable finance
                   ENVIRONMENTAL PERFORMANCE
                   General aspects
       F.4         Enviromental costs                                                                                      50
                   Material aspects
       F.5         Use of sustainable materials                                                                         79, 80, 88
                   Energy aspects
       F.6         Energy consumption and intensity                                                                        87
       F.7         Energy efficiency and renewable energy use measures and achievements                                  87 - 90
                   Water aspects
       F.8         Water consumption                                                                                    114 - 116
                   Biodiversity aspects
       F.9         Impacts of operations in or near conservation or biodiversity areas                                     100
       F.10        Biodiversity conservation efforts                                                                    103 - 106
                   Emission aspects
       F.11        Quantity and intensity of emissions by type                                                           82 - 84
       F.12        Emissions reduction measures and achievements                                                         84 - 86
                   Waste and effluent aspects
       F.13        Quantity of waste and effluents produced by type                                                      96, 116
       F.14        Mechanism to manage waste and effluents                                                               94, 118
       F.15        Spills that occurred (if any)                                                                           95
                   Environmental complaint aspects
       F.16        Number and nature of environmental complaints received and resolved                                  152 - 153
                   SOCIAL PERFORMANCE
       F.17        Commitment to provide equal services and/or products to consumers                                       58
                   Employment aspects
       F.18        Equal work opportunity                                                                               126 - 134
       F.19        Forced labour and child labour                                                                          137
       F.20        Regional minimum wage                                                                                   122
       F.21        Decent and safe work environment                                                                     138 - 144
       F.22        Employee training and capacity building                                                              126 - 131
                   Community aspects
       F.23        Impact of operations on local communities                                                            150 - 152
       F.24        Community grievance                                                                                  152 - 153
       F.25        Environmental social responsibility initiatives                                                     59 - 62, 151
                   Sustainable products/services development responsibilities
       F.26        Innovation and development of sustainable finance products/services                                   45 - 46
       F.27        Products/services which safety for consumerss have been assessed                                        58
       F.28        Impacts of products/services                                                                            58
       F.29        Number of products recalled                                                                             58
       F.30        Customer satisfaction survey of sustainable finance products/services                                   58
       G           OTHERS
       G.1         Written assurance by an independen party (if any)                                                    156-159
       G.2         Feedback form                                                                                           175
       G.3         Responses to the previous year's feedback form                                                          174
       G.4         List of disclosure in accordance with POJK 51/2017                                                      169




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APPENDIX 6
NOTES ON METHODS AND CONVERSION FACTORS

GRI-303: Notes on Definitions

Water Consumption
a. Consumption for processing: water incorporated into the final product or used during the production process
b. Consumption for land application: water applied to plants, or effluents that have evaporated, stored in a controlled
   manner due to contamination and cannot be used by other parties, and do not leave organizational boundaries
   (Wastewater Treatment Plant)

GRI-305: Conversion Factors

  No           Parameter                                   Source                                    Unit               Factor

        Landuse Change
                                 Modelling carbon sequestration and greenhouse gas e
   1    Undisturbed Forest       missions associated with oil palm cultivation and land-           Ton C/Ha               268,00
                                 use change (Henson I.E- 2009)
                                 Review of emission factors for assessment of CO2
                                 emission from land use change to oil palm in Southeast
   2    Disturbed Forest                                                                           Ton C/Ha               128,00
                                 Asia (Agus, F., Henson, I.E., Sahardjo, B.H., Harris, N., van
                                 Noordwijk, M. & Killeen, T.J. 2013)
                                 European Union Commission (2009). Directive 2009/28/EC
   3    Shrubland                                                                                  Ton C/Ha                46,00
                                 Draft Annex V
                                 Modelling carbon sequestration and greenhouse gas
   4    Grassland                emissions associated with oil palm cultivation and land-          Ton C/Ha                 5,00
                                 use change (Henson I.E- 2009)
                                 European Union Commission (2009). Directive 2009/28/EC
   5    Tree Corp                                                                                  Ton C/Ha                75,00
                                 Draft Annex V
        Food Crops/ Annual       Winrock (2010). N Harris, pers com. MODIS data 2000 to
   6                                                                                               Ton C/Ha                 8,50
        Crops                    2007. Average of annual (5.0) and perennial (12.0) crops
                                 OPRODSIM Henson I.E.(2005b) OPRODSIM, a versatile,
   7    Oil Palm                 mechanistic simulation model of oil palm dry matter               Ton C/Ha                63,83
                                 production and yield
        Fertilizer
   8    Ammonium Nitrate                                                                         Kg CO2 eq/ Ton         2.380,00
   9    Sulphate of Ammonia                                                                      Kg CO2 eq/ Ton           340,00
                                 Gurmit S. (1995). Management and utilisation of oil palm
        Double Ammonium          by-products. The Planter,
  10                                                                                             Kg CO2 eq/ Ton           460,00
        Phosphate                Jensson T.K. and Kongshaug G. (2003). Energy
  11    Urea                     consumption and greenhouse gas emissions in fertiliser          Kg CO2 eq/ Ton         1.340,00
                                 production. International Fertiliser Society, York, UK 28pp.
  12    Ammonium Chloride                                                                        Kg CO2 eq/ Ton         1.040,00
  13    Kieserite                Caliman J.P., Carcasses R., Girardin P., Pujianto,              Kg CO2 eq/ Ton           200,00
                                 Dubos B., and Liwang T. (2005) Development of agro-
  14    Muriate of Potash        environmental indicators for sustainable management             Kg CO2 eq/ Ton           200,00
        Ground Rock              of oil palm growing: general concept and example of
  15                                                                                             Kg CO2eq/ Ton             44,00
        Phosphate                nitrogen.
  16    Triple Super Phosphate                                                                   Kg CO2 eq/ Ton           170,00
                                 Ecoinvent v2 (GHG based on IPCC 2007-100 years).
        Ground Magnesium
  17                                                                                             Kg CO2 eq/ Ton           547,00
        Limestone




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        No             Parameter                                     Source                                       Unit              Factor

               Other
               Global Warming
        18                                IPCC Fourth Assessment Report (AR4)                               Kg CO2 eq/Kg N2O              298
               Potential
                                          Hooijer A., S. Page, J. G. Canadell, M. Silvius, J. Kwadijk,
        19     Peat Oxidation             H. Wosten, J. Jauhiainen (2010) Current and future CO2            Ton CO2 eq/ha/Yr           54,60
                                          emissions from drained peatlands in Southeast Asia.
                                          Well to wheel analysis of future automotive fuels and
        20     Diesel Fuel                powertrains in the European context. Well-to-tank                  Kg CO2 eq/Liter              3,12
                                          Appendix 1
                                          Chase L.D.C and Henson I.E. (2010) A detailed greenhouse
        21     POME                       gas budget for palm oil production. International Journal        Kg CH4/Ton POME             13,10
                                          for Agricultural Sustainability
        22     National Grid Emission     IEA Emissions Factor for 2012                                      Kg CO2eq/kWh                 0,81
               Sequestration in           Tree regional default conservation sequestration (Cseq)
        23                                                                                                  Ton CO2 eq/Ha/Yr              9,17
               Conservation               values recommended by RSPO



      GRI-302: Conversion Factors
      302-4 Calculation Methods

                                                                      Type Of Energy
        No   Program                                                                                        Calculation Method
                                                                         Reduced
             Using biomass turbines for non-processing                                       (Total Kwh / Total operational hours) x Total non-
        1                                                                Diesel fuel
             energy                                                                              process hours x Conversion factor kWh to GJ
                                                                                               ((Old bulbs wattage x Number of bulbs) - (New
        2    Switch to energy saving light bulbs                         Electrical          bulbs wattage x Number of bulbs )) x Usage time
                                                                                                                x Conversion factor kWh to GJ
                                                                                               Teleconferencing frequency x Amount of fuel x
        3    Teleconferencing                                            Diesel fuel
                                                                                                    Number of trips x Fuel conversion factor
                                                                                                         Energy consumption with fuel – Energy
        4    Modification of machines from diesel to electric            Diesel fuel
                                                                                                                   consumption with electricity
                                                                                              ((Old AC wattage - New AC Wattage)) x Number
        6    Switch to energy saving AC                                  Electricity          of AC x AC Usage time x Conversion factor kWh
                                                                                                                                       to GJ
                                                                                                         Working hours x Motor engine energy x
        7    R2G (Rotary Removal Grit)                                   Electricity
                                                                                                                   Conversion factor kWh to GJ
                                                                                                 ((Total electricity consumption x kWh to fuel
             Modification of unconventional tin pump system                                 conversion factor x fuel energy conversion factor)
        10                                                               Diesel fuel
             from diesel to electricity                                                           - (Total electricity consumption x kWh to GJ
                                                                                                                            conversion factor))
        11   SCADA for Automatization                                    Electricity          Time savings x Operational days x Pump energy
                                                                                                     (Average electricity consumption – Actual
        12   AutoMix Treatment                                           Electricity         electricity usage after the program) x Conversion
                                                                                                                            factor of kWh to GJ
                                                                                                (Average mileage in Km before the program –
             Operational Transport Restrictions for Guest and
        13                                                               Diesel fuel          Actual mileage in Km) / Km to liter conversion x
             Staff Pickup Service
                                                                                                                                0,036 GJ/Liter
                                                                                                 (Energy consumption before implementation
        14   FFB grading conveyor                                        Electricity           – energy consumption after implementation) x
                                                                                                              conversion factor of kWh to GJ
                                                                                                (Energy use of the Pond 5 pump) x conversion
        15   Deactivation of pump in Pond 5 in the waste area            Electricity
                                                                                                                     factor of electricity to GJ
                                                                                                 (Energy consumption before implementation
        16   Reducing power of LTDS 2 Fan                                Electricity           – energy consumption after implementation) x
                                                                                                         Conversion factor of electricity to GJ
                                                                                               ((Old bulbs wattage x Number of bulbs) - (New
        17   Photocell installation                                      Electricity        bulbs wattage x Number of bulbs)) x Usage time x
                                                                                                               Conversion factor of kWh to GJ




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                                                        Type Of Energy
 No   Program                                                                               Calculation Method
                                                           Reduced
                                                                                      (Average electricity consumption – Actual
      Application of Legrand Timer on streetlights in
 18                                                          Electricity      electricity usage after the program) x Conversion
      housing and mill areas
                                                                                                             factor of kWh to GJ
                                                                                      (Average electricity consumption – Actual
      Optimization of High-Speed Separator Pumps for
 20                                                          Electricity      electricity usage after the program) x Conversion
      mud processing
                                                                                                             factor of kWh to GJ
                                                                                      (Average electricity consumption – Actual
 21   Optimization of electromotor oil pump                  Electricity      electricity usage after the program) x Conversion
                                                                                                             factor of kWh to GJ



302-4 Conversion Factors and Assumptions

1 kWh                                                   0.0036 GJ
Light Bulb Usage (Mill)                                       40 Hours/Week
Estate-Airport Distance (2-way)                               68 km
Fuel Consumption                                              17 km/liter
1 PK AC Standard Wattage                                     840 Watt
2 PK AC Standard Wattage                                 1920 Watt
1 PK Low Watt AC Wattage                                     660 Watt
2 PK Low Watt AC Wattage                                 1590 Watt
AC Usage Time                                                 40 Hours/Week
R2G Usage Capacity                                           700 kg/Jam
R2G Motor Engine Energy                                        5 kWh
Light Bulb Usage (Biogas)                                     98 Hours/Week
Light Bulb Usage (CWT)                                        10 Hours/Day
                                                                                         Mill research results
kWh to Diesel Fuel conversion                                0.3 L/kWh
                                                                                         mikrodata.bps.go.id
Diesel Fuel to GJ conversion                             0.036 GJ/liter



GRI-306: Notes on Methods and Assumptions

1. Conversion factors used:                                       7. Assumptions for production waste calculation per
   a. 1m3=         1000 liter                                        recovery type:
   b. 1 ton=       1000 kg                                        a. Reuse: EFB that are applied directly to the soil.
2. Average oil density is 870 kg/m3 (measured from                b. Recycle: EFB is used for composting.
   testing), and we converted reused oil from liter to kg,        c. Recovery: Palm fibers, and shells used as biofuel or
   except for hazardous waste in ANJAP, PMP, and PPM.                sold
3. Palm shell waste is generated from 8% of processed             8. Waste Type and Categories:
   FFB.                                                              a. Non-Hazardous Production Waste: Shells, fibers,
4. Palm fiber waste is generated from 13% of processed                  EFBs.
   FFB.                                                              b. Non-Hazardous Non-Production Waste: steel and
5. Sago fiber waste is generated from 14% of processed                  spare parts, tires, plastics and polybags, fertilizer
   sago logs (Flach, 1997; Rumalatu, 1981).                             sacks, paper, organic, and inorganic domestic
6. Non-production waste is calculated from the                          waste.
   difference of garbage truck weight when loaded with               c. Hazardous Waste: batteries, filters, contaminated
   waste compared to when it is unloaded.                               gloves and cloth, contaminated packaging,
                                                                        medical waste, neon lamps/light bulbs,
                                                                        cartridges, electronic devices.




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                                                           APPENDIX 7


               RESPONSE TO THE PREVIOUS YEAR'S REPORT'S
                              FEEDBACK



               Following the release of the 2022 Sustainability Report, throughout 2023 the Company did not receive
               any responses nor feedbacks from stakeholders. Consequently, this report did not present specific
               details regarding actions the Company may have taken in response to feedback from the previous
               year. Nevertheless, the quality of the 2023 report has been enhanced to align with the GRI and GRI
               Sector Standard (GRI 13: Agriculture, Aquaculture, and Fishing Sectors) guidelines, as well as POJK
               No. 51/POJK.03/2017 concerning the Implementation of Sustainable Finance for Financial Services
               Institutions, Issuers, and Public Companies.




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FEEDBACK FORM
The 2023 Sustainability Report of PT. Austindo Nusantara Jaya Tbk. provides an overview of our sustainability performance. We
look forward to your inputs, constructive feedbacks and suggestions after reading this Sustainability Report, either by email or by
sending this form by fax/post.
YOUR PROFILE
Name (optional)       : _______________________________________________________________________________________
Institution/company : _______________________________________________________________________________________
Email                 : _______________________________________________________________________________________
Phone/Cell phone      : _______________________________________________________________________________________


STAKEHOLDER CATEGORY
( ) Shareholder or Investor        ( ) Customer                  ( ) Employee            ( ) Labor Union             ( ) Media
( ) Supplier                       ( ) Business Organization     ( ) Government          ( ) Community Organization/NGO
( ) Other, please specify ____________________________________________________________________________________
Please pick from the statements below that best describe your opinion:                               Yes             No
1. This report is easy to understand.                                                                ( )             ( )
2. This report is useful for me.                                                                     ( )             ( )
3. This report sufficiently describes ANJ’s performance with regard to sustainability.               ( )             ( )
Please rate the material aspects that you consider important for sustainability (from 1-most important to 8-least important)

GHG Emissions and Carbon Footprint                                   Supply Chain Practices

   GHG emission and energy efficiency                                  Supplier environmental and social practices

   Waste recycling                                                     Traceability

   Climate risk and adaptation                                       Labor rights

   Water management                                                    Forced labor

Protecting Forests and Biodiversity                                    Child labor

   Biodiversity and conservation                                       Freedom of association

   Deforestation                                                     Prosperity and inclusive growth

   Fire prevention and management                                      Economic performance

Working Conditions                                                     Innovation and sustainable production

   Occupational Health and Safety                                      Socio-economic welfare and livelihoods

   Training and education                                            Local Communities

   Diversity and women’s empowerment                                   Rights of local communities

                                                                       Community Involvement and Development

__________________________________________________________________________________________________________
Thank you for your participation.
Please send this feedback form to:
PT. Austindo Nusantara Jaya Tbk.
Corporate Communications
BTPN Tower, Floor 40
Jl. Dr. Ide Anak Agung Gde Agung Kav. 5.5-5.6
Jakarta 12950
Indonesia
Tel. +62 21 2965 1777
Fax. +62 21 2965 1788
Email: anj.corcomm@anj-group.com
www.anj-group.com




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ABBREVIATIONS

3R                     Reduce, Reuse, Recycle
                       Menggunakan masker, Mencuci tangan, dan Menghindari kerumunan or Wearing Masks,
3M
                       Washing Hands, and Avoiding Crowds
AANE                   PT. Austindo Aufwind New Energy
AELT                   ANJ Executive Leadership Team
AEI                    Asosiasi Emiten Indonesia or Indonesian Public Listed Companies Association
AGMS                   Annual General Meeting of Shareholders
AKAD                   Antar Kerja Antar Daerah or Inter-regional Job Placement
ALC                    ANJ Learning Center
ALS                    Assessor Licensed Scheme
AMDAL                  Analisis Mengenai Dampak Lingkungan or Environmental Impact Assessments
ANJ                    PT. Austindo Nusantara Jaya Tbk.
ANJA                   PT. Austindo Nusantara Jaya Agri
ANJAP                  PT. ANJ Agri Papua
ANJAS                  PT. Austindo Nusantara Jaya Agri Siais
APBS                   Asosiasi Perkebunan Besar Swasta or Association of Large Private Plantations
APINDO                 Asosiasi Pengusaha Indonesia or Indonesian Employer’s Association
ASSRAT                 Asia Sustainability Reporting Rating
BKSDA                  Balai Konservasi Sumber Daya Alam or Natural Resources Conservation Center
BOC                    Board of Commissioners
BOD                    Board of Directors
BPJS Kesehatan         Badan Pengelola Jaminan Sosial Kesehatan or Healthcare Social Security Agency
BPJS Ketenagakerjaan   Badan Pengelola Jaminan Sosial Ketenagakerjaan or Employment Social Security Agency
BRC                    British Retail Council
BSI                    British Standards Institution
CDP                    Climate Disclosure Project
CEO                    Chief Executive Officer
CER                    Certified Emissions Reduction
CFC                    Chlorofluorocarbons
CH4                    Methane
CI                     Conservation International
CID                    Community Involvement and Development
CIRAD                  Centre de Coopération Internationale en Recherche Agronomique pour le Développement
CITES                  Convention on International Trade of Endangered Species
CLA                    Collective Labor Agreement
CO2                    Carbon Dioxide
COVID-19               Coronavirus Disease 2019
CPO                    Crude Palm Oil
CSR                    Corporate Social Responsibility
EDC                    Electronic Data Capture
EFB                    Empty Fruit Bunches
EGMS                   Extraordinary General Meeting of Shareholders




                                                                                  PT Austindo Nusantara Jaya Tbk.       177
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      Our Sustainability Commitments               Prosperity              Planet          People              Appendix




       EHS                             Environmental Health and Safety
       ELSAM                           Lembaga Studi dan Advokasi Masyarakat or Institute for Policy Research and Advocacy
       EPMS                            Electronic Plantation Mobile System
       EPR                             Extended Producer Responsibility
       ERP                             Enterprise Resource Planning
       ESG                             Environmental, Social, and Governance
       ESP                             Electrostatic Precipitator
       eTis                            Electronic Traceability Information System
       FAO                             Food and Agriculture Organization
       FAT                             Fatality
       FDA                             Food and Drug Administration
       FDR                             Fire Danger Rating
       FFB                             Fresh Fruit Bunches
       FGD                             Focus Group Discussion
       FLAG                            Forests, Land, and Agriculture
       FoKSBI                          Indonesian Sustainable Palm Oil Forum
       FPIC                            Free, Prior, and Informed Consent
                                       Gabungan Pengusaha Kelapa Sawit Indonesia or Indonesian Palm Oil Producers’
       GAPKI
                                       Association
       GCG                             Good corporate governance
       GHG                             Greenhouse Gas
       GJ                              Gigajoule
       GLAD                            Global Analysis and Discovery
       GM                              General Manager
       GMIT                            PT. Gading Mas Indonesia Teguh
       GMS                             General Meeting of Shareholders
       GPS                             Global Positioning System
       GRI                             Global Reporting Initiative
       GRK                             Gas Rumah Kaca
       GSB                             PT. Galempa Sejahtera Bersama
       HACCP                           Hazard Analysis and Critical Control Points
       HCFC                            Hydrochlorofluorocarbon
       HCS                             High Carbon Stock
       HCSA                            High Carbon Stock Approach
       HCV                             High Conservation Value
       HCVRN                           High Conservation Value Resource Network
       HCVRN's ALS                     HCVRN's Assessor Licensed Scheme
       HGU                             Hak Guna Usaha or Land Cultivation Right Titles
       HIRARC                          Hazard Identification, Risk Assessment & Risk Control
       HR&CM                           Human Resource & Change Management
       HRO                             Human Resources Officer
       ICS                             Incident Command System
       ICSA                            Indonesia Corporate Secretary Association
       IDM                             Indeks Desa Membangun or Village Development Index
       IDP                             Individual Development Plan




178 PT Austindo Nusantara Jaya Tbk.
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                                                                                     2023 Sustainability Report




IDX            Indonesia Stock Exchange
IFM            Integrated Fire Management
IGCN           Indonesia Global Compact Network
IKE            Indeks Ketahanan Ekonomi or Economic Resilience Index
IKL            Indeks Ketahanan Lingkungan or Environmental Resilience Index
IKS            Indeks Ketahanan Sosial or Social Resilience Index
IMT            Incident Management Team
IPCC           Intergovernmental Panel on Climate Change
ISCC           International Sustainability and Carbon Certification
ISO            International Organization for Standardization
ISPO           Indonesian Sustainable Palm Oil
IUCN           International Union for Conservation of Nature
               Izin Usaha Pemanfaatan Hasil Hutan Bukan Kayu - Hutan Alam or Business License for
IUPHHBK-HA
               the Utilization of Non-Timber Forest Products – Natural Forest
IWMWG          Indonesia Water Mandate Working Group
JKN            Jaminan Kesehatan Nasional or National Health Insurance
JSA            Job Safety Analysis
KADIN          Kamar Dagang dan Industri Indonesia or Indonesian Chamber of Commerce and Industry
KAL            PT. Kayung Agro Lestari
KB             Keluarga Berencana or Family Planning Program
KEE            Kawasan Ekosistem Esensial or Essential Ecosystem Area
KIMPER         Kartu Ijin Mengemudi Perusahaan or Corporate Driving License
KK             Kartu Keluarga or Family Card
KPI            Key Performance Indicator
KTP            Kartu Tanda Penduduk or Indonesian Identity Card
KTPA           Kelompok Tani Peduli Api or smallholder farmer fire-fighting groups
LED            Light-emitting diodes
LKS Bipartit   Bipartite forum
LCA            Life-cycle Assessment
LOC            Letter of Commitment
LOTO           lockout-tagout
LTI            Lost Time Injury
LUC            Land-use Change
LUCA           Land Use Change Analysis
LURI           Land Use Risk Identification
MAPAN          Steadfast and advanced village Mantap dan Terdepan
MASSI          Masyarakat Sagu Indonesia or Indonesian Sago Community
MDP            Management Development Program
MoEF           Ministry of Environment and Forestry
MoU            Memorandum of Understanding
MSDS           Material Safety Data Sheet
MT             Management Trainee
MTC            Medical Treatment Case
N2O            Nitrous oxide
NBS            Nature-based Solutions




                                                                          PT Austindo Nusantara Jaya Tbk.         179
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      Our Sustainability Commitments              Prosperity               Planet              People           Appendix




       NDPE                            No Deforestation, No Peat, and No Exploitation
       NGO                             Non-governmental organization
       NOX                             Nitrogen oxide
       NPP                             New Planting Procedures
       NRC                             Nomination and Remuneration Committee
       OD                              Occupational Disease
       ODS                             Ozone-depleting substances
       OHS                             Occupational Health and Safety
       OHSAS                           Occupational Health and Safety Management System
       OJK                             Otoritas Jasa Keuangan or Financial Services Authority
       OJT                             On the Job Training
       P&C                             Principles and Criteria
                                       Panitia Pembina Kesehatan dan Keselamatan Kerja or Health and Safety Committee
       P2K3
                                       Governing Body
       PAUD                            Pendidikan Anak Usia Dini or Early Childhood Education
       Pendaki                         Peduli Keanekaragaman Hayati or Care for Biodiversity
       PIPPIB                          Indicative Map of the Moratorium on Issuing New Licenses
       PK                              Palm Kernel
       PKO                             Palm Kernel Oil
       PLN                             Perusahaan Listrik Negara or State Electricity Company
       PM                              Particulate matter
       PMP                             PT. Putera Manunggal Perkasa
       POJK                            Peraturan Otoritas Jasa Keuangan or Financial Services Authority Regulation
       POME                            Palm oil mill effluent
       PONGO                           Palm Oil & NGO alliance
       Posko DAMKAR                    Pos Komando Pemadam Kebakaran or Firefighting Command Post
       PPE                             Personal Protective Equipment
       PPM                             PT. Permata Putera Mandiri
       PROPER                          Program for Ranking Corporate Performance
       PSDH                            Provisi Sumber Daya Hutan or forest resource levy
       Puskesmas                       Pusat Kesehatan Masyarakat or primary health centers
       QIP                             Quality Improvement Program
       R&D                             Research and Development
       R2G                             Rotary Removal Grit
       RADD                            Radar for Detecting Deforestation
       RD                              Responsible Development
       RKL                             Rencana Pengelolaan Lingkungan or Enviromental Management Plan
       RPL                             Rencana Pemantauan Lingkungan or Environmental Monitoring Plan
       RSPO                            Roundtable on Sustainable Palm Oil
       SBTi                            Science-based Targets Initiative
       SDG                             Sustainable Development Goals
       SEIA                            Social and Environmental Impact Assessment
       SIA                             Social Impact Assessment
       SME                             Subject Matter Experts
                                       Sistem Manajemen Kesehatan & Keselamatan Kerja or Occupational Health and Safety
       SMK3
                                       Management System




180 PT Austindo Nusantara Jaya Tbk.
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                                                                         2023 Sustainability Report




SMM      PT. Sahabat Mewah Makmur
SOP      Standard Operating Procedures
SOX      Sulfur oxides
SPOTT    Sustainability Policy Transparency Toolkit
TK       Taman Kanak-kanak or Kindergarten
TNA      Training Needs Analysis
TNC      The Nature Conservancy
UAV      Unmanned Aerial Vehicle
UN       United Nations
UNDP     United Nations Development Program
UNFCCC   United Nations Framework Convention on Climate Change
UNGC     UN Global Compact
USD      US Dollars
VAT      Value Added Tax
VCU      Voluntary Carbon Unit
WBS      Whistleblowing System
WDPA     World Database on Protected Areas
WEP      Women’s Empowerment Principles
WFH      Work from Home
WRI      World Resources Institute
YIARI    Yayasan Inisiasi Alam Rehabilitasi Indonesia
ZSL      Zoological Society of London




                                                                 PT Austindo Nusantara Jaya Tbk.      181
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182 PT Austindo Nusantara Jaya Tbk.

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Names mentioned 48 people and organisations named in the text · linked when the evidence is strong

linked org Austindo Nusantara Jaya Tbk. p.2 ×339
linked org PT Permata Putera Mandiri p.5
linked — Memimpin Dengan Nurani p.7
linked person George Santosa Tahija p.7 ×3
linked person Sjakon George Tahija p.7 ×4
linked org Yayasan Tahija p.7
linked person Lucas Kurniawan · President Director p.12 ×13
linked person Geetha Govindan · Vice President Director p.19 ×3
linked person Naga Waskita · Director p.19 ×3
linked person Nopri Pitoy · Director p.19 ×2
linked person Mohammad Fitriyansyah · Director p.19 ×3
linked person Anastasius Wahyuhadi p.19 ×6
linked person Darwin Cyril Noerhadi · Commissioner p.19 ×2
linked person Istini Tatiek Siddharta p.19 ×2
linked — Aloysius D’Cruz · Director p.31
linked org Dana Pensiun p.52
possible org Austindo Kencana Jaya p.7
possible org Otoritas Jasa Keuangan p.30
unresolved org PT Austindo Nusantara Jaya Tbk’s p.5
unresolved org PT Austindo Nusantara Jaya Agri p.5
unresolved org PT Austindo Nusantara Jaya Agri Siais p.5
unresolved org PT Sahabat Mewah p.5
unresolved org PT Kayung Agro Lestari p.5 ×3
unresolved org PT Galempa Sejahtera Bersama p.5
unresolved org PT ANJ Agri Papua p.5
unresolved org PT Gading Mas Indonesia Teguh p.5 ×2
unresolved org PT Austindo Aufwind New Energy p.5
unresolved org PT Austindo p.6
unresolved person Dr. Ide Anak Agung Gde Agung p.7
unresolved org PT Austindo Kencana Jaya Trading p.7
unresolved org PT Memimpin Dengan Nurani Crude Palm Oil p.7
unresolved org Indonesia Stock Exchange p.7
unresolved org Plasma & Partners p.8
unresolved person Vice · President Director p.19 ×2
unresolved org Financial Services Authority p.30
unresolved person Istama p.31
unresolved — Adrianto Machribie · President Commissioner p.31
unresolved person AGMS · President Commissioner p.31 ×16
unresolved — J. Kristiadi · Commissioner p.31
unresolved person DR. Edi Purwanto p.38
unresolved org Dana Pensiun Lembaga Keuangan p.52
unresolved person Johan Hendrik Kokorule p.55 ×3
unresolved person H. Farhan p.58 ×2
unresolved org PT Kayung p.72
unresolved org PT KAL p.94
unresolved org Ministry of Environment and Forestry’s p.97
unresolved org AS WATER IS A LIMITED p.116

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