We would like to share our September progress report for NKU as can be seen from the pages below.

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1 10 October To Ravin Khrisnan RSPO Complaint Coordinator Dear Mr Ravin, RE: Complaint PT Nabatindo Karya Utama (Bumitama Agri Ltd.) We would like to share our September progress report for NKU as can be seen from the pages below. Thank you. Yours Sincerely, Lim Sian Choo Group Head of Corporate Secretary and CSR

2 NKU Progress September RSPO 29 April 29 May 30 June 31 July 29 August September a) Prepare a HCV management plan to identify all HCV areas within the concession, prepare an action plan and a monitoring plan. Update the list of management activities recommended by BOSF in the survey report quarterly. 1) NKU has uploaded summary of the HCV Management Plan, Action Plan and Monitoring Plan onto the RSPO website by 6 February, as part of the NPP documents. 2) The sustainability team have socialised and prepared instructions of these plans to the Regional Head ( RH ) and Estate Managers ( ES ), for example; Make boundaries (4x4 m) along the buffer zone. 1). 2) Further progress: The feasibility/practic ality of a buffer zone (not all area is under NKU concession, there are other PTs involved) is being discussed with relevant external stakeholder (BOSF). In the meantime an assessment is being made by NKU team with 1) 2) Further progress: The assessment was but still being analysed by the team and consultant. The boundary can be determined and drawn once the report from the consultant is ready. NKU is seeking the assistance of BOSF on this matter (Borneo Orangutan Survival Foundation), arising 1). 2) Further progress: The stratification report of HCS at the end of July. Discussion with BOSF is on-going with the completion of this stratification report. 1) 2) Further progress seen below: Finalising work plans with BOSF. 1) 2) Further progress seen below: Conducted 2 meetings with BOSF and BGA to discuss the joint program of orangutan mitigation for NKU.

3 29 April 29 May assistance with a consultant during the 4 th week of May. The result will be discussed with relevant stakeholders in June/July. 30 June from discussion in a meeting held with BOSF on May. 31 July 29 August September Conduct detail survey and produce maps on the HCV location and riparian buffer zone. Survey of the HCV and riparian buffer zone is half. Expected to be able to complete by 10 June, if not earlier. Survey of the HCS and riparian buffer zone was in June, but the team is still finalising the report for corrective and preventive actions for the riparian buffer zone. Survey. Survey. Survey Disseminate SOP on the HCV Management and BMP on the mitigation of conflict between human-orangutan. Dissemination of SOP on the HCV management and BMP on the mitigation of conflict between humanorangutan -.. Have started Placements of Placements of Signboards are Signboards

4 29 April Produce signboards, posters, and other public awareness material on the importance of wildlife. 29 May working on signboards in the riparian area in May, expecting to complete by July. Will start a poster competition for promotion and to raise interest and awareness. 30 June signboards along the riparian area on-going. Arranging for a poster competition as part of public awareness drive on importance of preserving wildlife from July to September 31 July signboards along the riparian area on-going. 29 August on-going from July to September. September are on-going from July to October Search for seedlings of local plants and make nursery (for enrichment of buffer zone with plants beneficial for wildlife and community needs). Implement the enrichment. Monitoring the enrichment. To start in June. Hopes to get seedling for planting around Sept and Oct (just before start of the rainy season). Nursery is currently being developed to collect local seedlings. Nursery Planting targeted for November, waiting for rainy season. 3) Reporting format and documents will be prepared by mid May to improve on communication between ES and sustainability team. Additional training for the Satgas team of NKU together with ASMR team in June/July who besides patrolling for biodiversity, will Training on proper fire prevention was conducted on June in Kumai Hilir ASMR. 5 NKU staff joined the training. Additional fire Prevention training has been conducted together with ASMR.

5 29 April 29 May also monitor on enrichment progress. 30 June 31 July 29 August September Consultation with the NKU staff on the reporting format and documents has been conducted during the field surveys for HCS, peat and orangutan. A separate training on HCV monitoring will be organised in July. Sustainability staff from Jakarta will be training the NKU staff on proper data collections and reporting forms on various matters. Ground truthing training for LUC analysis conducted in July. Additional training for patrolling and monitoring in August (refer to below). monitoring and patrolling refreshment training. monitoring and patrolling technique with SMART System Training by Sustainability staff in July. b) Process to execute all measures to 1) Refer to (a)(1) above. 2) Currently conducting carbon The carbon stock assessment is on-going..

6 conform to the New Planting Procedures, including a notification of new planting for public consultation. 29 April stock assessment. 29 May 30 June the ground truthing of the HCS assessment and currently waiting for the consultant s stratification report. 31 July the HCS Report and report indicated no HCS concerns outside of Hutan Produksi area. 29 August Go Area for non HCS and peat has been released. Continue to discuss with the community and others on conservation plan. September On progress c) Conduct a survey as prescribed in the Guidelines for the BMP on Avoidance, Mitigation, and Management of Human- Orangutan Conflict in and around Oil Palm Plantations (WWF, 2007) s. These surveys should focus on the yet uncleared areas in blocks H, I, J, NKU has conducted orangutan survey in the NKU area with BOSF (Borneo Orangutan Survival Foundation) and COP (Center for Orangutan Protection, the complainant) in the end of December The report is comprehensive and was delivered in February. NKU has discussed the recommendations with the BOSF in February and BOSF has taken into account the NKU Action Plan. We will discuss with various stakeholder if the report may suffice. Will have in place an MOU with BOSF to act as a consultant and facilitator on such matter. Satgas reports will keep NKU updated on possible presence of OU During the ground truthing exercise as well as the peat survey exercise in NKU, the both teams reported zero sighting of orangutan except for 1 old nest found in the eastern part of the concession. The satgas team will be further trained to conduct monitoring and The monitoring and patrol team sighted a female orangutan with her baby and a new nest on Tuesday 22 July in the forested area in the western part of concession, near the boundary of the concession. Will continue to monitor. A refreshment monitoring and patrolling wildlife training for satgas The team continue to monitor and patrol. There was no sighting of orangutan during this period. monitoring and patrolling refreshment The team continue to monitor and patrol. There was sighting old nest of orangutan (Appendix 1) Refer to a (3) above

7 K and the western part of the licensed area. 29 April 29 May and other matters. 30 June patrolling in July. 31 July is scheduled in August. 29 August training. September d) Enlarge the riparian buffer zone for the purpose of future wildlife (including Orangutan). The independent verified recommends the minimum width of the riparian buffer zone for this purpose to be at least 100 m on each side of the river. NKU will conduct inventory of all rivers and buffer zone in the NKU area. Currently there are 8 small rivers, all of them are below 15 m wide. The only big river, Sungai Cempaga, m wide, has been released from NKU IUP and its distance is about m from NKU border. NKU will find the best method to manage the riparian buffer zone. No Name of River Sungai Wide (m) Lengt h (km) 1 S. Mirah 3-10 Lui S. Mirah 1-6 Hujan S. Mirah S. Mirah 5-10 Minting Anak S. Mirah 5-6 Minting 1.75 Currently doing inventory and measurement of rivers using satellite maps and verifying the rivers width accordingly as further proof that 50 metres is sufficient as in accordance to RSPO procedures. As reported in (a) (2) above, NKU team had checking on the riparian buffer area and is now preparing the report to the management. The team had been told to also conduct a survey along Sungai Cempaga which is outside of NKU Izin Lokasi (IL) and Izin Usaha Perkebunan (IUP). Inventory of rivers confirmed and together with the HCS report. On-going placement of signboards along the riparian area. Our legal and operational team confirmed Sungai Cempaga is running across many concessions outside of Bumitama s span of control and is also outside of NKU permit. All Inventory of rivers confirmed and together with the HCS report Signboards are on-going from July to September. Inventory of rivers confirmed and together with the HCS report Signboards are on-going from July to October

8 29 April S. 6 Sandung S. Koling 8 S. Batur Source: NKU HCV Report (2013) 29 May 30 June 31 July work in this area is cancelled due to Bumitama s lack of control and nil chance of success. 29 August September e) BAL to do a Land Use Change analysis and prepare compensation proposal to be submitted to the Compensation Panel for review. 1) On 15 April BAL have been assigned a Compensation Panel. As shared in the BHCV Working Group meeting, all LUC will be overseen by this Compensation Panel. 2) NKU is in the midst of preparing for the LUC report scheduled to be ready by end May (due to lack of manpower in GIS department). Verification of data and LUC analysis is still on-going and is expected to be ready by July. NKU is currently finalising the LUC report and will submit the report to Compensation Panel in Juy. Liability/LUC declaration has been submitted to the Compensation panel at the end of July. Liability/LUC declaration has been submitted to the Compensation panel in the end of July. Liability/LUC declaration has been submitted to the Compensatio n panel in the end of July. Detail information to be submitted in Oct. f) Submit a progress report to the RSPO on the implementation of items a-e on a monthly basis for the next 6 NKU will continue to submit a progressive report over the next 6 months. Progress report from April to September will be provided accordingly. NKU will continue to submit a progressive report over the next 3 months. NKU will continue to submit a progressive report over the next 2 months. NKU will continue to submit a progress report. This is the last progress report as per request from Complaints panel.

9 months and subject to field inspection if deemed necessary. 29 April 29 May 30 June 31 July 29 August September Appendix 1 The old nest of orang-utan class 5 about 3-4 month old. Coordinate X: Y: Date: 11 September Time: 12:23:24 Community logging Coordinate X: Y: Date: 11 September Time: 10:33:46

We would like to share our progress for the month of July on the required implemented activities in NKU on the following pages as seen below.

We would like to share our progress for the month of July on the required implemented activities in NKU on the following pages as seen below. 22 August 2014 To Ravin Khrisnan RSPO Complaint Coordinator Dear Mr Ravin, RE: Complaint PT Nabatindo Karya Utama (Bumitama Agri Ltd.) We would like to share our progress for the month of July on the required

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