Summary of Arising Issues from Public, Management and Auditor Response

SPO – 4006a.7 Page 55 Prepared by Mutuagung Lestari for Bumi Permai POM – PT. Prima Mitrajaya Mandiri (MP. Evans Group PLC)

3.6 Summary of Arising Issues from Public, Management and Auditor Response

SPO – 4006a.7 Page 56 Prepared by Mutuagung Lestari for Bumi Permai POM – PT. Prima Mitrajaya Mandiri (MP. Evans Group PLC)

Public Issues

(Institution/ NGO/Community) Auditor Responses

 Report of Plantation Business Activity (LKUP) has been sent regularly to the agency.

 There are no reports of land conflicts.

 Response of information requests by companies is good.

 The aspirations conveyed by the community through the agency for example is the community's expectation that the Mill can receive FFB from the community garden.

Plantation Agency District of Kutai Kartanegara

 The Company has sent a Regular Plantation Development Report. The last is the second semester of 2016, where the information on the use of HGU has been informed.

 Plantation class in 2015: class II

 Fire infrastructure still needs to be improved.

In accordance with criteria 1.1 and 4.7

Village Head and villgers

 The company had a positive impact in the form of the opening of access roads, labor absorption and construction of various facilities and infrastructure including the development of smallholdings since 2006/2007.

 The company has always responded to each of the aspirations and grievances. Communication and consultation procedure has been understood by the public.

Community and village board had no difficulty in communicate to companies because there is a public relations officer which responsible for the social issues and CSR.

 Currently there are no cases of land disputes that occurred between the plantation and the community.

 There was never any issue of environmental pollution in the surrounding villages both of water and air pollution.

 The company is quite intense to socialize protection of conservation areas and the protection of flora and fauna in all the surrounding villages.

 Management of plasma is transparent enough. Monthly meetings with the company is doing well, companies often explain directly the financial management of smallholdings in the village meetings.

Aspiration

 The company should be willing to accept FFB from outside (independent smallholders)

 Citizens expect the company remains committed to development the smallholdings and CSR although company leaders keep changing.

In accordance with criteria 2.2; 5.1; 5.2; 6.1; 6.2; 6.4; 6.5; 6.8;

6.10 and 7.3.

Local contractor (FFB transport and up keep):

 Each contractor has had a copy of the agreement letter that mutually agreed. Contractors are given time to learn agreements letter which will be agreed.

 The payment has been made in accordance with the agreement letter that is 2 times in a month

 Contractor’s workers has given PPE.

In accordance with criteria 4.7; 5.2; 6.5; 6.8 and 6.10

SPO – 4006a.7 Page 57 Prepared by Mutuagung Lestari for Bumi Permai POM – PT. Prima Mitrajaya Mandiri (MP. Evans Group PLC)

Public Issues

(Institution/ NGO/Community) Auditor Responses

 The company always gave a briefing before working either to workers of the company or contractor workers

 No cases of disputes between the contractor and the company.

 No discrimination in provision of employment. Provision of employment is done based on ability

 There have been no cases of violations committed by contractor’s workers against to the directive of the company.

 The contractor provides first aid equipment for workers. If an accident occurs on the field it will be the responsibility of the contractor.

 The contractor expects the company to help the contractor's workers went to the clinic in case of accident and continue to provide housing for contractor’s workers who do not have a place to stay.

Bipartite Cooperation Institution

 Communication between the company and workers' representatives goes well.

 Meetings are held every three months, which was attended by representatives of workers and employers. the last meeting was conducted in April 2017.

 Wages in accordance with the minimum wage of Kutai Kartanegara Districts of 2017

 All workers (contract and permanent) have been registered in BPJS program.

 Workers from the local area and from outside the region

 The company does not discriminate against workers both from the reception to the promotion. Promotion is based on employee performance appraisals.

 Facilities for workers consist of school transport, housing, electricity, clean water, sports facilities, religious facilities.

 During the period 2016 – 2017 there are no issues related to employment

 Each worker has been complemented with working agreement that mutually agreed.

 Sanctions that are regulated by the company has been known by workers, including sanctions against the destruction of HCV.

In accordance with criteria 2.1; 4.7; 5.2; 6.2; 6.5; 6.6 and 6.8.

Gender Committee of Mahakam Estate, Kahoi Estate and Prima Estate

 Policy on protection against sexual harassment and violence has been socialized to workers and workers' families.

 Policy related to reproductive rights are known by workers.

 Access to buy adequate food can be reached easily, in the worker housing there are cooperatives and shops that sell basic needs, there are also pitchman that selling basic needs which come every day.

In accordance with criteria 6.2; 6.5 and 6.9

SPO – 4006a.7 Page 58 Prepared by Mutuagung Lestari for Bumi Permai POM – PT. Prima Mitrajaya Mandiri (MP. Evans Group PLC)

Public Issues

(Institution/ NGO/Community) Auditor Responses

 The specific complaints mechanism been communicated well through gender committee.

 Reporter's identity for grievances will be kept confidential.

 There is no issue of sexual harassment in the period 2016 – 2017.

SPO – 4006a.7 Page 59 Prepared by Mutuagung Lestari for Bumi Permai POM – PT. Prima Mitrajaya Mandiri (MP. Evans Group PLC)