Peat EcosystemRehabilitation Project

Section 1INTRODUCTION

Section 5CSR

Community Involvement and

Programmes in PT AMNL

Section 6CLIPPINGS

In The News: Our Fire-�ghting Efforts

and Community Engagement

1Section 4

Desa Siaga Api Programme

9-13HOW WE MANAGE FIRE

Section 2

Indonesia’s Carbon Dioxide Emissions

Opportunity to Reduce CO2 Emissions

from Peatlands

PT AMNL Conservation Area

•

•

•

3-5WHY PEATLANDS MATTER

14-17

6-8Section 3

What is Peat Rehabilitation and

Reforestation?

Why Do We Need to Rehabilitate Peatlands?

Stages in a Rehabilitation Project

•

•

•

PEAT REHABILITATION PROJECT

18-20

TABLE OFCONTENTS

Introduction

Section 1

Introduction

In 2015, prolonged dry conditions caused by a powerful El Niño weather phenomenon led to �res burning out of control on peat areas and other land, resulting in the worst haze pollution to hit Indonesia and its neighbours since 1997.

Haze worsens health problems such as respiratory ailments; causes low visibility that hinders transportation; disrupts daily lives; prevents children from going to school and contributes to economic slowdown. According to the World Bank, more than2.6 million ha of forest, peat and other land were damaged by �res across the archipelago from June to October 2015. It also estimates that

Fires on carbon-rich peatlands in Indonesia are the primary cause of massive smoke pollution commonly referred to as “haze”. It is estimated that 90 percent of haze is caused by �res on peat areas which release three to six times more particulate matter than �reson other types of soil [1].

Indonesia’s economy alone suffered a loss of more than USD16 billion due to the �res and haze.

In light of this, the Indonesian Government has set up a Peat Restoration Agency and banned the clearance and conversion of peatlands across the country.

Many of our own employees and the communities surrounding our plantations are adversely affected by the haze. Recognising this, we adhere strictly to our Zero Burning Policy which has been in place since 1997, and we continue to invest in the long-term prevention, management and suppression of �res. As part of

2

these efforts, in November 2015, we launched the Peat Ecosystem Rehabilitation Project at PT Agro Lestari Mandiri (PT AMNL) in West Kalimantan. Its primary aim is to prevent future haze-causing peat �res and is in line with the Indonesian Government’s focus on revitalising and protecting peat areas.

Section 1

[1] http://www.worldbank.org/en/news/feature/2015/12/01/indonesias-�re-and-haze-crisis

Section 2

Why Peatlands MatterIndonesia’s Carbon Dioxide Emissions

Opportunity to Reduce CO2 Emissions from Peatlands

PT AMNL Conservation Area

4

Why Peatlands Matter

1

Indonesia’s Carbon Dioxide Emissions

2

Human activities produce carbon dioxide (CO2). Prior to the 2015 haze crisis, Indonesia was ranked the world’s �fth biggest producer of greenhouse gas emissions[2]. The main contributors of emissions are the transportation and energy sectors and the degradation of peatlands.

The forestry and agricultural sectors in Indonesia have the potential to deliver more than 80 percent of Indonesia’s emission reductions. Peatland conservation is a signi�cant part of that opportunity given the potential for peatlands in Indonesia to release 700MtCO2e into the atmosphere if developed.

Opportunity to Reduce CO2 Emissions from Peatlands

Peatland makes up 12 percent of the Indonesian land area (22.5 Mha)[3]. Peatland is a unique ecosystem formed through the accumulation of partially decayed vegetation or organic matter in waterlogged and acidic conditions over thousands of years.

Peat decomposition as a result of drainage for agriculture produces continuous emissions, while peatland �res contribute infrequent emissions and rapid peat decomposition. Peatland is particularly �ammable when it is drained and dried after the vegetation is cleared. Fire is traditionally used to clear land as burning increases the pH level

of the soil which is too acidic to grow crops. Once started, peat �res can smoulder for weeks or months underground. Prolonged dry seasons and decreased rainfall especially during an El Niño period, causes a sharp increase in emissions as a result of rapid decomposition through peatland �res. Lower water tables during the dry season expose larger carbon stocks to aerobic conditions, increasing decomposition and peat subsidence.

Emissions from peatlands are expected to reach 1.2 Gt CO2ein 2030 through the continued

[2] World Resources Institute. Forests and Landscapes in Indonesia http://www.wri.org/our-work/

project/forests-and-landscapes-indonesia/climate-change-indonesia[3] Hooijer, etal. Current and future CO2 emissions from drained peatlands in Southeast Asia. Biogeosciences,

7, 1505– 1514, 2010. http://www.biogeosciences.net/7/1505/2010/bg-7-1505-2010.pdf

Section 2

5

development and drainage of peatlands under a business as usual scenario[4].

Indonesia is the single largest emitter of CO2 from ongoing peat decomposition in the world, with Kalimantan being the largest emitter in the country.

CO2 emissions from the peat sector can be reduced by stopping deforestation and forest degradation, re-wetting and rehabilitating the peatland, as well as through �re management.

3

PT AMNL Conservation Area

In PT AMNL, GAR manages a conservation area exceeding 2,600 ha. Around mid-2015, GAR conducted a �eld survey, which showed that there were three vegetation types in the area: peat swamp forest, dry lowland forest and freshwater swamp. More than 300 species of plants and 170 species of wildlife (birds, mammals, reptiles, and �shes) were found in the survey area. More than 85 percent of the plots

surveyed have biomass of over 100 t/ha. Unfortunately reassessment of the area via satellite imaging after the dry season in late 2015 indicated that almost all remaining forest cover has been affected by �res.

GAR decided to take immediate steps to rehabilitate the area in order to help prevent the recurrence of �res and avoid emissions in the future.

[4] Forest Climate Center. Fact sheet – Indonesia Greenhouse Gas Emission Cost Curve. 27 August

2009. http://forestclimatecenter.org/�les/2009-08-27% 20Fact% 20Sheet% 20-

% 20Indonesia% 20Greenhouse% 20Gas% 20Emission% 20Cost% 20Curve% 20by% 20Indonesia

%20National%20Council%20on%20Climate%20Change.pdf

Section 3

Peat Rehabilitation ProjectWhat is Peat Rehabilitation and Reforestation?

Why Do We Need to Rehabilitate Peatlands?

Stages in a Rehabilitation Project

Peat Rehabilitation Project

What is Peat Rehabilitation and Reforestation?

Why Do We Need to Rehabilitate Peatlands?

efforts to help the forest recover some of its original characteristics or properties; often by replacing some of the trees and vegetation lost through logging or other forms of damage.

To reduce vulnerability to �resTo improve the quality of the forest after disturbance/ damageTo improve the productivity of the forest after disturbanceTo improve the forest as a habitat for birds and other animalsTo reintroduce species lost by forest disturbanceTo improve the microclimate within the forest after disturbanceTo reduce soil erosion and improve hydrology

••

•

•

•

•

•

Rehabilitation:

efforts to plant trees – usually of commercial species – in areas where trees have been mostly lost or removed, such as alang-alang grasslands.

Reforestation:

GAR began work with third-party technical experts on the �rst rehabilitation stage in December 2015. Public consultations engaged the local community to involve them in the conservation effort. GAR also engaged the local government toobtain their support and participation.

Section 3

7

Stages in a Rehabilitation Project

for rehabilitation by carrying out conservation area and biodiversity surveys.

Determine status/conditionof the area

in the rehabilitation project and conservation efforts.

Engage the community

for building stock of plants for planting out in the area.

Establish nursery

to restore as much species diversity as possible as well as the physical appearance of the forest stand. Wildlife food plants such as Ficus and Artocarpus will also be included.

Select important native species

by controlling drainage canals and maintaining a high water table.

Restore hydrology of peat area

of selected species.

Collect seeds and seedlings

8

Section 3

Section 4

How We Manage FireLong-term Prevention

Desa Siaga Api Programme

How We Manage Fire

More than 10,000 Emergency Response Team personnel have been trained and are stationed across all our plantations, ready to be deployed in a �re emergency.

We have set up a Fire Command Post at HQ in Jakarta to coordinate �re management and suppression with the teams on the ground.

GAR’s Standard Operating Procedure (SOP) for �re management requires a wide range of measures to prevent �res in our plantations.

On the ground, we have been:

Keeping the peat areas moist

by re-wetting the areas with

water from rivers and ponds

which were constructed for

that purpose.

Transferring 6-tonne water

container tanks to areas

that are burning.

Preparing Emergency

Response Teams

consisting of about 30 to

40 personnel per team to

handle �re suppression.

Preparing water reservoirs

around conservation areas

to ensure adequate supply

of water during a �re.

Stationing �re engines at

the plantation.

10

Ensuring adequate

number of portable

pumps to be used for

�re suppression.

Using high-capacity

pumps to pump water from

the nearest river/ stream to

put out �res.

Increasing the frequency

of �re-monitoring patrols

and involving the

community in �re

monitoring.

Carrying out coordinated

�re suppression with local

authorities. A police report

is also lodged for every

incident.

11

Section 4

To prevent �res in the long run, GAR is stepping up efforts to encourage the community to stop using �re to clear land.

We have consistently engaged farmers and the community to advocate no-burning.

Long-term Prevention

We plan to launch programmes that offer the community sustainable alternatives when clearing land. Such programmes will involve building up community awareness and involving the community in �re management and prevention.

We also plan to align our CSR objectives to focus on poverty alleviation to help tackle the economic causes of �re.

This is an initiative that shifts the focus from response and suppression to �re prevention.

The programme is aimed at creating �re-free villages through collaboration with communities, enforcement agencies and NGOs. The objective is to prevent �res in a �ve kilometre area around GAR concessions.

12

The key components of the programme includes:

1.

2.

3.

Assisting the community with sustainable land-clearing without the use of �re.

Offering CSR incentive programmes as No Burn Village Rewards to villages that manage to achieve �re-free goals.

Increasing Community Awareness of the dangers of �re and haze to health.

4.

5.

Fire Team Empowerment with participation from the community.

Air Quality Monitoring to develop a baseline to inform a new air quality monitoring programme.

Desa Siaga ApiProgramme

In the �rst quarter of 2016, GAR will carry out pilot Desa Siaga Api programmes.

13

Section 4

The villages will be categorised into three:

1.

2.

3.

DESA SIAGA are villages that remain �re free. They will receive social infrastructure development aid.

DESA TANGGAP are villages that are able to extinguish �re in less than 24 hours on a burnt area of less than one hectare.

They will receive social infrastructure development assistance.

DESA PEDULI are villages that are able to extinguish �re in less than 24 hours on a burnt area of more than one hectare. They will be placed under supervision.

From February to November 2016, GAR will monitor and evaluate the villages included in the Desa SIAP Programme. The villages will receive rewards based on their level of success in suppressing �res.

CSRCommunity Involvement and

Programmes in PT AMNL

Section 5

Community involvement andprogrammes in PT AMNL

Section 5

15

Communities are motivated by economic reasons to clear land using �re, as it is the cheapest way to prepare land for crops.

GAR aims to target these economic causes of �re by improving the livelihoods of the community through CSR programmes. In the long run, the goal is to create zero-burning communities and community-based conservation.

Our CSR activities cover �ve aspects:

Income Generation

Infrastructure

Socio-culture

Education

Health

GAR aims to build mutually bene�cial relationships with local communities.

We provide economic opportunities for local businesses, and improve facilities and infrastructure in areas such as transportation, religious activities, culture, education, and more.

16

GAR allocated more than Rp 13.5bn for CSR programmes in PT AMNL in activities including:

Increasing andimproving access to basic transportation, including maintenance and repair of village roads.

In 2014 and 2015,

Providing free computer courses to students in Nanga Tayap.

Building a mosque at Dusun Tanjung Toba.

Partnering with Tzu Chi Foundation to offer free medication for the community, enhancing Integrated Health Service Point (Posyandu) and assisting with the provision of clean water.

Providing general health care and respiratory infection treatment in Nanga Tayap, and in partnership with Tzu Chi Foundation, free health care in Simpang Tiga Sembelangaan & Tanjung Medan villages.

Building of a mushola (praying room), a madrasa, and a church in Nanga Tayap.

Supporting religious celebrations.

Supporting traditional ceremony, sapat tahun in Nanga Tayap.

Granting scholarships for students.

As the head of Sembelangaan Hamlet, I really appreciate and support Sinar Mas’ programme to protect the river by replanting plants, especially fruit-producing plants that can be used by the villagers. We’re taught not to poison nor electrocute the �sh to catch them. We hope that the villagers will be more involved in reforestation programmes along the river because it will bring sustainable bene�ts for generations to come.”

Bapak SartiminHead of Sembelangaan Hamlet

Section 5

17

Praise be to Allah…we are really grateful for the building of the 12 x 23 m multipurpose building because it will be very useful to us. For instance, if we want to celebrate a wedding, hold a social event or organize other activities, we no longer need to use tents. The building can also be used for sports, such as badminton. We hope that from now on, the relationship between the company and us can be even more harmonious.”

Bapak KelikResident of Sungai Kelik Village

Sinar Mas has done quite a lot of CSR activities that have positively impacted us, but for me (the building of church) is the one most impressive gesture. Worshipping has become convenient for me and for my fellow villagers. We invite all Catholic staff of Sinar Mas to worship with us too, to strengthen the bond between us.”

Bapak MusiResident of Sebuak Hamlet

ClippingsIn The News: Our Fire-�ghting Efforts

and Community Engagement (news clippings)

Section 6

Section 6

19As a good neighbour and corporate citizen GAR has a responsibility to contribute to �re �ghting and �re prevention efforts in high risk areas,

especially peatlands. Our commitment to the Peat Ecosystem Rehabilitation Project is driven by that sense of responsibility. Media coverage of these

efforts helps us reach a broader section of the community in which we live and work.

20

Section 6

Golden Agri-Resources Ltd (GAR)

108 Pasir Panjang Road,#06-00 Golden Agri Plaza, Singapore 118535

t w

e

+65 6590 0800

www.goldenagri.com.sg

sustainability@goldenagri.com.sg

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

Sinar Mas Land Plaza, Tower II, 30th FloorJl. MH Thamrin No. 51, Jakarta 10350, Indonesia

t

+62 21 5033 8899