PT Astra Agro Lestari Tbk : Laporan Kemajuan April – Juni 2021

PT Astra Agro Lestari Tbk

PROGRESS REPORT ON

SUSTAINABILITY

SECOND QUARTER

UPDATE 2021

INTRODUCTION

Evaluation and Implementation of Astra Agro's 3-Year Action Plan and the development of 5-Year Action Plan

As was previously mentioned in our first quarter report, we are working with CORE in conducting in depth review of our implemented 3-Year Action Plan as well as the recommendations for the development of our 5-Year action plan.

In carrying out the assessment, CORE focuses on three activity phases as follows:

1. Align our progress with AAL's 3-Year Sustainability Action Plan over the course of 2018-2020 which includes reviewing documents in the public domain and additional progress related to internal documentation.
2. Conduct a detailed assessment of our progress, including the review of internal documents, assessments, interviewing both internal and external relevant stakeholders, and field verifications.
3. Deliver assessment report alongside the recommendations for the next action plan.

This review was originally planned for completion by end of June 2021, but unfortunately have since experienced a delay due to several issues including (1) the lengthy time required to review key documents that are integral to the assessment report and (2) the strict travel restrictions imposed by the Covid-19 protocol which prevented us from conducting crucial site visits as well as holding interviews with external stakeholders.

Simultaneously, we are in the progress of completing our next action plan which we expect to be completed by Q3 2021. The formulation of the 5-Year Action Plan is based on the results of the evaluation of the implementation of the 3-Year Action Plan and the latest developments in the palm oil business, including adjustments to related regulatory developments.

Our activities for 2021 focuses on our efforts to ensure no deforestation occurs in our supply chain, biodiversity monitoring and restoration activities, completion of traceability to plantation throughout the entire supply chain, maintaining our plantations and its surrounding landscapes from fire incidents, and continuing our efforts in assisting the Orang Rimba community living around our plantations. We are also engaging with the Conflict Resolution Unit (CRU) to help us in evaluating the Company's practices in relation with human rights.

HCV MANAGEMENT

Riparian Rehabilitation

Rehabilitation programs, have reached 61% of the target year as Q2 2021 (20,978 trees of the planned, 12,996 trees have been planted so far) spread across 19 subsidiaries, which is equivalent to an area of ± 65 ha. The main obstacles faced by the rehabilitation activities during this decisive period was the limited availability of forest tree seedlings. This is due to the fact that for all this time, the seedlings used for rehabilitation activities was dependent on suppliers outside of the region (located in different cities), due to limited suppliers and the limited stock of our nurseries. Our independent nurseries in West Sulawesi produced more than 5,000 seedlings with 85% being Endemic Ebony (Diospyros celebica), a known rare species. The seeds developed are sourced from forested areas in the concessions that we manage as HCV areas.

Figure 1. Ebony nurseries in West Sulawesi

Figure 2. Balangeran Nursery in Kumai

Biodiversity Management - Monitoring Key Species

The monitoring of key species continues to ensure the sustainability of the population and the natural habitat surrounding it. The following is a summary of special management efforts in the concession area and the results of key species monitoring as of the first semester of 2021:

Table 1. Monitoring of Key Species

Species/Location	Status as of Q2 2021	Focused Activities
In Semester 1
Proboscis Monkey	• Monitoring is focused on two	Habitat maintenance and
(Nasalis larvatus)	habitats namely riparian and	population monitoring
(Central Kalimantan)	swamp forests.
	• Based on monitoring result, there
	is one group of Bekantan (three adult
	male, six adult females, and three
	infants) maintained to live in the plot
	of swamp forest monitoring.
	• Potential encounter at the
	observation point of the location
	of the water gate area is still quite
	high marked with the responding
	sound of the Bekantan species
	(calling)
Müller's Bornean Gibbon	• Landscape analysis is carried out to	Habitat maintenance and
(Hylobates muelleri)	map the potential forest patches	population monitoring
(East Kalimantan)	connections (corridors) in the
	work area
	• Three groups of Owa Kelawat were
	found in forest patch in concessions
	with a total of five individuals (just
	encountered male and adult females)
Hornbill Groups	• There are four species have been	Habitat maintenance and
(Bucerotidae)	encountered with variations in the	population monitoring
(East Kalimantan)	number of individuals, namely
	Bushy-crested Hornbill (Anorrhinus
	galeritus), Sunda Wrinkled hornbill

Species/Location	Status as of Q2 2021	Focused Activities
In Semester 1
	(Aceros corrugatus), Black hornbill
	(Anthracoceros malayanus) and
	Oriental Pied-Hornbill (Anthracoceros
	abirostris)
Tonkeana Macaque	• Monitored 5 Boti monkey groups with	Population monitoring,
(Macaca tonkeana)	diverse numbers of individuals every	and enrichment of sleeping
(West Sulawesi)	encounter of 3-8 individuals with a	trees and feed according
	complete age structure ranging from	to different types based
	infant to adulthood.	on monitoring results.
	• During monitoring, we recorded 15
	types of plants used by Boti monkeys
	for feed and trees for sleeping.
	The forage tree includes fig (Ficus
	spp.), ebon (Diospyros celebrica),
	guava (Syzigium spp.), Mango
	(Mangifera Indica), Durian (Durio spp.)
	while for sleep trees including kusum
	tree (Schleichera oleosa), tropical
	almond tree (Terminalia catappa),
	candlenut (Aleurites moluccanus).
	• In the Q2 period, we tried to expand
	the population monitoring to a radius
	of 20 km from our permanent
	observation point. We found 2 Boti
	monkey groups at a distance of 7 km
	with individuals ranging from 10-20
	per group and diverse age structures.
	Then 1 group was found at a distance
	of 17 km, but only found 1 adult male
	individual

Figure 3. Owa Kelawat

Figure 4. Boti Monkey