Progress Report to RSPO CP

Complaint on PT KPC + 17 PTsSep 2016

2slide

Contents

1. Summary of key events (Jul-Sep 2016)

2. Status of GAR follow-up on CP decisions

3. Summary status of agreed action plan

4. Next Steps

3slide

1. Summary of Key Events (Jul – Sep 2016)

4slide

1. Summary of key events

(Jul 2016 – Sep 2016)

Date Event Details Status

Jul-Aug 2016 Key community

consultations and

meetings on land tenure

and remediation in KPC

Facilitated by LINKS

Communities in KPC decided that Sijil

Hak Milik (SHM) is preferred to HGU for

Plasma

Menapar community requested that GAR

develops 118 ha of agreed Plasma before

finalizing on additional lands identified to

be acquired for Plasma

GAR accepts community preference

and will facilitate accordingly

GAR preparing for development of

118 ha for Plasma

Jul-Aug 2016 Participatory mapping

exercise for -- PTs

completed/in progress

6 PTs completed. Remaining PTs in

progress: 4 planned to be completed by end

2016, of which:

1 PT pending map completion for

distribution.

2 PTs completed public consultation and

currently conducting mapping exercise.

1 PT plan public consultation in early Sept as

agreed with community.

Implementation ongoing

Aug 2016 Legality review by HPRP

completed

HPRP submitted report to RSPO

On page 40 of the legal review HPRP

concludes “In brief, aside from findings

delivered in Point III.5 herein, we would

view that on the Complaint Date GARs

Subsidiaries had complied with prevailing

laws and regulations in Indonesia.”

GAR confirms acceptance of report

findings

RSPO to send report to FPP and CP

GAR accepts report findings. Will take

necessary actions as prescribed in

Section III.5. GAR also notes the

findings that these outstanding actions

do not prevent GAR from continuing

its plantation activities and the

summary finding that aside from

these, GAR is in compliance with the

prevailing laws and regulations in

Indonesia.

5slide

1. Summary of key events

(Jul 2016 – Aug 2016)Date Event Details Status

Jul/Aug 2016 HCV conservation and

monitoring workshops

with communities

facilitated by Ekologika

Ongoing Ongoing

Jul/Aug 2016 FPIC Remediation in

remaining PTs

The team finished desktop

analysis of HCV4-6 and published

reports on 24 PTs in Jul.

Preparation in progress for

community engagement in PT

AKM and MKA

Sep 26th planned for start for PT AKM and

MKA

Aug 4 2016 Meeting with RSPO on

Legacy FPIC Project

RSPO briefed GAR that as part of

the Indonesian NI review decision,

an Indonesian FPIC Guidance will

be developed and Management of

Legacy FPIC issues will be part of

this guidance.

A Task Force is likely to be formed

to develop this and complete its

job in 1 year from expected

inception in Aug/Sep 2016

GAR offers to be part of the Task Force,

offering its experience in FPIC remediation

FPIC Remediation of KPC and other PTs will

continue as per agreed actions and TOR

6slide

2. Status of GAR follow-up on CP decisions

7slide

2. Status of GAR follow-up on CP

decisionsRSPO CP Final Decision dated 6 May

2015

GAR follow-up status Update

Status

Progress Track

1. On FPIC: GAR must take remedial

actions to correct shortcomings in its

land acquisition process with the

affected communities.

Replied on 29 May 2015. Agreed with FPP on action plan for

remediation. Key challenge is to communicate to the community on

relevant regulations. TP3K socialize the status of the land after

the expiry of HGU to the community on 13 May 2016 (Desa Mantan

and Nanga Suhaid) . HGU issue was clarified and the community

had accepted, in writing, that it accepts that the status of the land

will be decided by the government after one cycle (Note: TP3K

explained clearly that HGU valid for one cycle and 35 years is the

maximum term for plantation , but could be shorter depending of

the productivity of the crop) . FPP view is that the meetings are

only a re-statement of prevailing law and communities

acknowledgement of this.

Update Ongoing (GAR

continues to work

with communities,

facilitated by

LINKS, to agree on

remediation

package. For other

PTs, this will be

addressed per

remediation TORs,

see Section 3)

2. On legal permits and licences: GAR

must demonstrate that it possesses the

legal documents as required under

Indonesian law for land development in

the 18 PTs.

HPRP submitted report to RSPO. On page 40 of the legal review

HPRP concludes “In brief, aside from findings delivered in Point

III.5 herein, we would view that on the Complaint Date GARs

Subsidiaries had complied with prevailing laws and regulations in

Indonesia.” GAR agrees with findings and will follow up on Point

III.5. RSPO will send report to FPP and CP for review.

Update Completed

3. On exceeding maximum land

holdings: To be pursued by the Ministry

of Agriculture

No action by GAR, to be pursued by RSPO Historical NA

4. On HCV assessments: HCV

assessments done by 18 PTs to be

subject to peer review.

Replied and submitted documents on 29 May 2015 that the original

HCV assessments for 18 PTs have been peer-reviewed. As

additional measure, Ekologika is engaged to improve the protocol

for HCV management and monitoring. FPP met with Ekologika on

8 Apr 2016 to review the work done. GAR understands that FPP is

satisfied with the quality of work and progress, particularly the

management and monitoring protocol of HCV4-6. MoUs for HCV

conservation and monitoring signed with 6 communities,

discussions ongoing with 4.

Historical Ongoing

8slide

2. Status of GAR follow-up on CP

decisions

RSPO CP Final Decision dated 6 May

2015

GAR follow-up status Update

Status

Progress

Track

5. On plasma: GAR to honour commitment

to allocate 20% of land to smallholders.

Submitted details to RSPO on 29 May 2015 that plasma constituted

21.3% of planted area. However, GAR recognises that communities

calculated 20% allocation based on total area discussed prior to

allocation for HCS and other commitments. NPP submission and

public posting for plasma development in PT PIP was completed on

6 February 2016. GAR have identified potential additional areas in

KPC and Menapar community has requested that agreed plasma

area (118 Ha) be developed first before additional areas are

considered. GAR working on NPP and other processes to start this.

Further details in Section 3 below.

Update Ongoing

6. On NPP: GAR to declare all land planted

with NPP. To clarify on late submission for

the 18 PT’s.

Submitted details to RSPO on 29 May 2015.

Excerpts from notes of 14 Sep 2015 meeting for recap:

“RK recap the chronology of GAR NPP posting on 7 Mar 2014 and

from the last notes of meeting on 24 Jul 2015, where the RSPO

Secretariat acknowledged the agreed proposed approach by GAR in

Mar 2012 requesting RSPO not to publish GAR’s NPP based on the

reasons raised (public listed selective disclosure etc).

Darrel Webber will explain to FPP on this agreed RSPO action and

will also present to the CP to decide on RSPO action.

Action: 1. RSPO will clarify with FPP on the delays in these posting

of NPP notifications.

2. RSPO to address on GAR NPP posting with CP and FPP as per

notes of meeting on 24 July 2015.”

Historical Completed

9slide

2. Status of GAR follow-up on CP

decisions

RSPO CP Final Decision dated 6 May

2015

GAR follow-up status Update

Status

Progress

Track

7. On new land development: GAR to stop

acquiring or developing new land until

complaint dealt with.

Submitted declaration to RSPO on 18 Dec 2014, repeated in letter of

29 May 2015. GAR confirms that it is still suspending acquiring or

developing new land in the relevant PT’s.

Historical Complying

8. GAR / PT KPC to

i. Confirm all development halted until

complaint resolved

ii. Furnish a detailed reply to the allegations

Letter from GAR to RSPO dated 25 Mar 2015 confirmed all

development in PT KPC halted and furnished reply to allegations.

Further clarified in letter dated 29 May 2015.

Historical Completed

10slide

3. Summary status of agreed action plan

11slide

3. Summary status of agreed action

planAction Plan

Item

GAR proposal for Lifting of

RSPO Stop Work Order on

14 Sep 2015 meeting in

KL.

Principle agreement on

14 Sep 2015 meeting

Agreed/Disagreed by

FPP

Status Update Progress

Track

1. Completion of

Participatory

Mapping (PM) in

18 PTs.

• Completion of 7 PTs’ PM.

• Completion of Roll out

plan for all companies.

Agreed 6 PTs completed. Remaining PTs in progress: 4

planned to be completed by end 2016, of which:

a. 1 PT pending map completion for distribution.

b. 2 PTs completed public consultation and

currently conducting mapping exercise.

c. 1 PT plan public consultation in early Sept as

agreed with community.

Ongoing

2. FPIC guideline

(including Land

Tenure Study

guideline)

implementation.

• Completion of guideline

endorsed by relevant

stakeholders (e.g. TFT,

FPP).

• Completion of Training

and socialization of the

guideline.

Agreed FPIC SOP was reviewed by FPP and its

comments were incorporated resulting in the

Enhanced FPIC SOP. The SOP is currently being

refined further based on the revised RSPO

guideline published in Feb 2016.

A Land Tenure Guide was also developed. GAR

will apply the guide, when there is an overlapping

land claim between communal land and cadastral

boundaries. For example, GAR referenced the

guide to resolve the Kenabak Hulu land claim.

Ongoing

12slide

3. Summary status of agreed action

plan

Action Plan Item GAR proposal for Lifting of

RSPO Stop Work Order on

14 Sep 2015 meeting in

KL.

Principle agreement on

14 Sep 2015 meeting

Agreed/Disagreed by

FPP

Status Update Progress

Track

3. Land

Remediation in

KPC (FPIC

Consultation)

• Conduct FPIC

consultation in all relevant

villages .

• Implementation of FPIC

consultation.

• Detail roll out plan in

relevant villages in KPC

shared with FPP.

Agreed 1. TP3K socialized the status of the land after

the expiry of HGU to the community on 13

May 2016 (Desa Mantan and Nanga

Suhaid) . HGU issue was clarified and the

community now understands and accepts

that the status of the land will be decided by

the government after one cycle (Note:

TP3K explained clearly that HGU valid for

one cycle and 35 years is the maximum

term for plantation , but could be shorter

depending of the productivity of the crop). .

FPP view is that the meetings are only a re-

statement of prevailing law and

communities acknowledgement of this.

2. Communities in KPC have decided that Sijil

Hak Milik (SHM) is preferred to HGU for

Plasma. GAR will faclilitate.

3. PLASMA area allocation: GAR has

identified some areas and in discussions

with community about acquiring additional

land for PLASMA. , Menapar community

has requested that agreed plasma area

(118 Ha) be developed first before

additional areas are considered. GAR

working on NPP and other processes to

start this.

Ongoing

13slide

3. Summary status of agreed action

plan

Action Plan Item GAR proposal for Lifting of

RSPO Stop Work Order on

14 Sep 2015 meeting in

KL.

Principle agreement on

14 Sep 2015 meeting

Agreed/Disagreed by

FPP

Status Update Progress

Track

3. Land

Remediation in

KPC (FPIC

Consultation)

• Conduct FPIC

consultation in all relevant

villages .

• Implementation of FPIC

consultation.

• Detail roll out plan in

relevant villages in KPC

shared with FPP.

Agreed 4. GAR has studied the new option of “Hak

Komunal” as proposed by FPP based on the

new Ministerial level regulation (Permen

Agraria 9/2015). The initial findings confirm

that this option has not yet been applied in

Indonesia in a similar context. The regulation is

still lacking in implementation detail/ supporting

law as well as clarity in terms of the relationship

with existing Indonesian plantation law. There

would also be impact on the financial

agreement already in place for both inti and

plasma as that financial agreement is tied with

the HGU/SHM conditions. GAR conclusion is

that this option is not feasible for KPC but is

open to explore in other new developments.

Ongoing

14slide

3. Summary status of agreed action

plan

Action Plan Item GAR proposal for Lifting of

RSPO Stop Work Order on 14

Sep 2015 meeting in KL.

Principle agreement on

14 Sep 2015 meeting

Agreed/Disagreed by

FPP

Status Update Progress

Track

4. Enhancement of

HCV assessment

• Sharing of draft enhancement

protocol (assist by Ekologika).

• Sharing of roll out schedule of

the protocol.

• Incorporating the enhanced

protocol in any submitted NPP.

Agreed FPP met with Ekologika to review the

management and monitoring protocol on 8

Apr 2016. GAR understands that FPP is

satisfied with the quality of work and

progress. Workshops conducted with

communities:

1. PT PIP: All communities signed MOU for

conservation and monitoring.

2. PT KPC: 2 communities signed, 4

communities in discussion. 4 communities

reject MOU, but these are outside the

cadastral.

Ongoing

15slide

3. Summary status of agreed action

planAction Plan

Item

GAR proposal for Lifting of

RSPO Stop Work Order on 14

Sep 2015 meeting in KL.

Principle agreement on

14 Sep 2015 meeting

Agreed/Disagreed by

FPP

Status Update Progress

Track

5. Fulfilment

of

smallholding

commitment.

• Conduct Plasma consultation

(community engagement) to

discuss the issue with

communities transparently.

• Implementation the agreed

resolution resulting from the

discussion.

Agreed From a regulatory standpoint, for the 18 PTs:

1. 15 PTs are obligated to pursue the 20%

plasma threshold (Min. of Agri No.26/2007)

a. 7 PTs have fulfilled plasma threshold,

b. 3 PTs are in fulfilment progress including

PT. PIP whose NPP was approved in Feb 2016,

c. 2 PTs are in the process of obtaining land

and permit,

d. 3 PTs are pending government decision to

pursue the plasma threshold

2. 3 PTs are not obligated to meet the 20%

plasma threshold (given their IUP permits were

issued before 2007), yet pending government

decision they will continue to develop plasma for

community.

3. All PTs where government decision is

pending (1d and 2) are subject to regulations

(PP104/2013 and PP60/2012), which resolve a

spatial planning dispute between the Ministry of

Forestry and the Central Kalimantan provincial

government. GAR have submitted pleas for

clarification under each PT, but until

governmental technical teams finish land

analysis and dispute is settled, GARs ability to

develop plasma is restricted.

(Continued next page)

Ongoing

16slide

3. Summary status of agreed action

planAction Plan

Item

GAR proposal for Lifting of

RSPO Stop Work Order on 14

Sep 2015 meeting in KL.

Principle agreement on

14 Sep 2015 meeting

Agreed/Disagreed by

FPP

Status Update Progress

Track

5. Fulfilment

of

smallholding

commitment

(continued)

• Conduct Plasma consultation

(community engagement) to

discuss the issue with

communities transparently.

• Implementation the agreed

resolution resulting from the

discussion.

Agreed From the social point of view, GAR is

reviewing documentation to determine,

whether local communities and individual

PTs have made plasma agreements above

and beyond the regulatory threshold.

Such is the case in PT KPC, where the

community understanding is that management

agreed to 20% plasma development on the total

compensated (rather than planted) area.

PT. KPC:

1. GAR explored the possibility of implementing

FPP’s recommendation regarding release of

inti area into plasma. The conclusion is that

existing financial arrangements including

bank loans for both inti and plasma and also

permits with MoA and Kabupaten makes it

virtually impossible to change.

2. GAR has identified some areas and in

discussions with community about acquiring

additional land for PLASMA. , Menapar

community has requested that agreed

plasma area (118 Ha) be developed first

before additional areas are considered.

GAR working on NPP and other processes

to start this.

Ongoing.

17slide

3. Summary status of agreed action

planAction Plan Item GAR proposal for Lifting of

RSPO Stop Work Order on 14

Sep 2015 meeting in KL.

Principle agreement on

14 Sep 2015 meeting

Agreed/Disagreed by

FPP

Status Update Progress

Track

6. GAR PT’s

Legality and

maximum

landholdings

• Agreement of ToR for

independent legal opinion

(lead by RSPO) to assess PT

legality

• Agreement that the RSPO

address the issue of maximum

landholdings

Agreed. HPRP submitted report to RSPO. GAR

agrees with findings. RSPO will send

report to FPP and CP for review.

Completed

7. Remediation of

Land developed

without proper

consent in 17 PTs

• Agreement of ToR of the

Remediation process with FPP

Agreed (on 8 Apr 2016) TOR was discussed with FPP (Dr Marcus

Colchester) on 8 Apr 2016. The proposed

changes have been incorporated and

remediation is being implemented

according to the TOR. The ToR was

developed around the same time the

RSPO developed (with FPP) a procedure

for identifying loss of social HCV4-6. The

two efforts are related and inform each

other in that they require engagement with

the community on legacy issues. Thus,

GAR envisioned that the two efforts be

coordinated. The team finished desktop

analysis of HCV4-6 and published reports

on 24 PTs in Jul. Field implementation

will began in PT AMK and MKA on 26

Sep. FPP and relevant stakeholders will

be updated on progress every 6 months.

Ongoing

18slide

3. Summary status of agreed action

plan

Action Plan Item GAR proposal for Lifting of

RSPO Stop Work Order on 14

Sep 2015 meeting in KL.

Principle agreement on

14 Sep 2015 meeting

Agreed/Disagreed by

FPP

Status Update Progress

Track

8. Others:

Exclusion from

KPC’s HGU area

of community

rejected Palm

• Start process discussion with

the community.

Agreed. As reported to FPP on 2 Feb and in the Mar

Progress Report, KPC excised relevant

areas from its cadastral map and submitted

the map to the land agency, BPN.

Having completed the PM and excised

communal areas, such as in Kenabak Hulu,

KPC is not aware of any unresolved

overlapping land claim.

Closed for

monitoring

19slide

4. Key next steps

• Implementation of remediation TORs for remaining 17 PTs

• Continue with remaining agreed actions in KPC

• Work on the revised Practical Guidelines for FPIC Fulfilment with

FPP inputs

• Regular progress update and discussion sessions with FPP

Thank you