27 April 2012

To our stakeholders:

I am pleased to confirm that PT Tandan Sawita Papua reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Henderi Djunaidi
Director

Our Commitment or Policy

In line with the Company’s to be a premier, green plantation company of choice with excellent socio-economic and environmental footprints, whereby we committed ourselves to be a socially responsible Company, to nourish the people and the communities where we operate and to care with the human rights.

A brief description of our Processes or Systems:

It is clearly stated in the company’s regulation that any human rights abuses will not be tolerated and there’ll be law implication for any human rights issues.
Implement Performance Development Review (PDR)

Targets for future Years :

1. Give the opportunities to local community and other potential worker to joint with the company.
2. Implement any new Government regulation regarding Human Rights.
3. Continous New Trainee assistant program

Actions implemented in the last year/planned for next year:

1. Socialized the Company’s regulation regarding the Human Rights, Labor and Environmental Policies
to the employee.
2. Performance Development Review has been implemented since 2010.
3. New Job position / required published on Newspaper / Job Consultant

1. Company’s regulation already socialized to all employees.
2. No Human Rights issues.
3. Monitor number of Local Community that joint the company yearly
4. Evaluate New Trainee assistant program yearly
5. Process Performance Development Review at midyear and end of Year

Our Commitment or Policy :
Whereby we committed to support the abolition of child labour by ensuring that there are no children on the plantation sites.

A brief description of our Processes or Systems

To avoid Child Labor, we Identify:
a. Total workers and their children especially in the 4 villages at working areas
b. Number of School
c. Resources required (Teachers & Childcare workers)

Actions implemented in the last year/planned for next year:

1. To ensure that there are no children on the plantation sites which will potentially lead to child labor,
some actions have been taken, including:
a. Sign Board / Warning Signs were posted on the sites
b. Clearly stated in our company regulations the minimum age for workers
c. Communication to local workers not to bring their children to work sites

2. As part of our commitment to support children education, and at the same time eliminate child labor, we, in coordination
with the Local Education Department conduct the followings:
a. Survey on Number of School & students in the surrounding operational area.
b. Hire the teacher
c. Additional Classes Program
d, Scholarship Program

Number of Local Children have an opportunity to study.

VILLAGE SUSKUN YETTY KRIKU UJUNG KARANG
Grade F M Total F M Total F M Total F M Total
I 8 7 15 5 12 17 5 2 7 10 7 17
II 8 8 16 5 1 6 2 3 5 0 0 0
III 9 7 16 1 5 6 5 0 5 0 1 1
IV 6 4 10 3 0 3 4 3 7 2 1 3
V 3 2 5 7 4 11 3 3 6 2 0 2
VI 2 3 5 2 1 3 0 5 5 1 2 3

Total 36 31 67 23 23 46 19 16 35 15 11 26

All 6th Grade Student (16 students) graduated from Elementary School and ensure that they continouing study at Junior High School by supporting the student with scholarship program.

A brief description of our Processes or Systems:

It is clearly stated in the company’s Vision “ to be a premier, green plantation company of choice with excellent socio-economic and environmental footprints”.

Plan for next year:

1. Continues socialized the Company’s regulation regarding Environmental Policies to the employee.
2. Fulfilled the Roundtable Sustainable Palm Oil requirement regarding the environment issues.
3. Continous coordinated with Environment Department for Environment Impact Assessment

Actions implemented in the last year/planned for next year:

1. Socialized the Company’s regulation regarding Environmental Policies to the employee.

2. Followed the Roundtable Sustainable Palm Oil requirement regarding the environment issues.
Coordinated with Environment Department for Environment Impact Assessment

3. Conservation Area
Water way buffer zone (100 meter from riverside)

4. Planting Program for 2 villages

Measurable Results or Outcomes:

1. Conservation Area
Water way buffer zone (100 meter from riverside) has been complied with.

2. Planting Program
+/- 1.000 Fruit Trees for 2 villages