REPORT VERSION 1 - tobapulp.com · Table of Content List of Terminology Acknowledgement 1. About Sustainability Report 1.0 2. Toba Pulp Lestari Brief History 3. Toba Pulp Lestari

Sustainability REPORT VERSION 1.0

2017 &2018

Table of Content

List of Terminology

Acknowledgement

1. About Sustainability Report 1.0

2. Toba Pulp Lestari Brief History

3. Toba Pulp Lestari Sustainability Initiative

3.1. Sustainability Policy

3.2. Grievance Mechanism

3.3. Multi-stakeholder Forum

3.4. Community Forestry

3.5. High Conservation Value (HCV) and High Carbon Stock (HCS)

3.6. Free Prior Informed Consent (FPIC)

3.7. IFCC & PEFC

4. Environmental Management

5. Sustainable Forest Management and sustainable fiber supply chain

6. Conflict resolution approach – Indigenous land

6.1. Pandumaan Sipituhuta case study

6.2. Nagahulambu case study

6.3. Other indigenous land claims

7. Responsive Fire Management

8. Grievance Management

9. Human resources

9.1.Health & Welfare

9.2.Safety & Security

10. Community Development

10.1.SK No.5 on Community Development Programme

10.2.Empowering entrepreneurs

11. Pulp & Paper Mill Operations

11.1.Rejunevation and upgrades

11.2.Energy Efficiency

11.3.Water Resource Management

11.4.Emissions Management

11.5.Wastehandling

12. Sustainability roadmap

List of Terminology

TPL PT Toba Pulp Lestari Tbk

FPIC Free Informed Prior Consent

SP Sustainability Policy

SR Sustainability Report

PKR Perkebunan Kayu Rakyat

MPA Masyarakat Peduli Api

GRI Global Reporting Initiative

KPH Kesatuan Pengelolaan Hutan

SMK3 Sistem Managemen Kesehatan dan Keselamatan Kerja

PHPL Sertifikasi Pengelolaan Hutan Produksi Lestari

VLK Verifikasi Legalitas Kayu

PROPER Program Penilaian Peringkat Kinerja Perusahaan Dalam Penggelolaan Lingkungan

MSF Multi Stakeholder Forum

HCV High Conservation Value

HCS High Carbon Stock

CTA Claim Tanah Adat

ISO International Standart Organization

CEM Continuous Emision Monitoring

CD Community Development

IFCC Indonesian Forestry Certification Coorporation

SK Surat Keputusan

Acknowledgement

VINOD KESAVAN

President Director

Consult Pak Vinod for inputs!!!........................

1. ABOUT SUSTAINABILITY REPORT 1.0.

The Sustainabiltiy report 1.0. highlights TPL activities in sustainability for the reporting period of

January 2016 to December 2018. This report outlines the progress and challenges in implementing

sustainable development, environmental management and socio-economic development of TPL and

its fiber supply partners’ operations in Porsea, North Sumatra, Indonesia where the facilities for pulp

manufacturing, productions forests are located in 4 sectors. The report also details the realization of

commitments reflected in the TPL Sustainable Policy which was launched in 2015:

Sustainable Forest management

Sustainable Fiber Supply chain

Sustainable Environment management

TPL believes sound environmental policies following strong strategies implementation in sustainable

forest management, conservation and protection of endemic flora and fauna, waste minimization,

pollution prevention, responsible environment management, will, in turn, maximize socio-economic

gains through minimized environmental harms.

This report and the content within adhere to the Global Reporting Initiative (GRI) Sustainable

Development Reporting Guidelines. The TPL Sustainability report version 1.0 is assured to meet the

internationally recognized requirements of GRI Application. Our intention is to continue to improve

future sustainability reports and respond as appropriate to any areas of improvement identified in

the statements within this version 1.0 report. TPL aims to continue working on the improvement in

the uniformity of data definitions herein. TPL will also increase level of disclosure on measures taken

by its pulpwood suppliers to address or manage community conflict in line with our Sustainable

Forest Management Policies, along with other initiatives aimed to create sustainable relationships

between TPL as the concession holders in accordance to The Ministry of Forestry Decree No. 493 /

1992 and the communities surrounding TPL operations.

2. PT TOBA PULP LESTARI Tbk BRIEF HISTORY

TPL was established within the framework of Domestic Capital Investment Law No. 6 year 1968 as

amended by Law No. 12 year 1970 based on notarial deed No. 329 on April 26th, 1983 of Misahardi

Wilamarta, S.H., Notary in Jakarta. The deed of establishment was approved by Minister of Justice of

Republic Indonesia Decree No. C2-5130.HT01-01 TH.83 dated July 26th, 1983 which was published in

The State Gazette of the Republic Indonesia No. 97 dated December 4th, 1984, Supplement No.

1176. TPL’s corporate status was subsequently upgraded to a Foreign Capital Investment Company

by Notification Letter on the Presidential Approval No. 07/V/1990 dated May 11th, 1990 issued

under the Chairman of Board of Capital Investment Coordinating Board.

TPL currently produces pulp and supplying international market demands. The company manages

185.016 hectares of industrial forest concessions from which the sustainable fiber resources for its

pulp manufacturing operation is grown and harvested. TPL concession is under Decree No.

493/Kpts-II/92 of Ministry of Forestry jo Decree No. SK.179/Menlhk/Setjen/HPL.0/4/2017 of

Ministry of Environment and Forestry.

PT Toba Pulp Lestari Tbk

Office : Uniplaza, East Tower 3rd Floor, Jl. Letjend.Haryono MT No. A-1 Medan 20231

Mill : Desa Pangombusan, Kecamatan Parmaksian, Kabupaten Toba Samosir

HTI Decree : 493/Kpts-II/92 dated 1 June 1992 jo

No. SK.179/Menlhk/Setjen/HPL.0/4/2017 dated 4 April 2017

Concession size : 185.016 Ha

SK No. : Surat Pemberitahuan No: 07/V/1990

Tentang Keputusan Presiden RI No. B – 139/Pres/5/1990 Tanggal 11 Mei 1990

Industrial permit : SK. Menteri Penggerak Dana Inventasi/Badan Koordinasi Penanaman Modal

No : 627/T/INDUSTRI/1995

Product : Pulp

Production capacity: 240.000 Ton

Picture 2.1 Map Of TPL Consessons

TPL-

Table 3.1 Detail Area Of TPL Consessions

3. TPL Sustainability Initiative

The global pulp and paper market require manufacturers and suppliers to be inherently sustainable.

Sustainably managed fiber resources that are utilized to manufacture paper at mills must complying

with sound environmental standards. The Indonesian pulp and paper industries continue to face

major challenges with critics on environmental aspects despite the increased market demand (2017,

increase of 26% to 203,774 tons of pulp compared to 2016 - 161,598 tons). The company responded

and committed in improving environment aspect by launching sustainable commitment in 2016. TPL

was amongst the first companies to roll out the sustainable commitment in shifting from business as

usual to sustainable operation. The launch of TPL Sustainable Policy (SP) in late 2015 was followed

by other policies, TPL environment policy, grievances mechanism, free prior informed consent

(FPIC). The realization of aforementioned policies includes mill-revitalization and machinery

rejuvenation augmenting environment friendly operations, less waste and zero pollution. Other

efforts are to ensure sustainable sourcing of wood supply from reliable and responsible suppliers,

rehabilitation of land within concession, improve low productivity and low yield by planting more

productive interspecies hybrids, improve soil management system, build drainages to reduce puddle

issues inroads, develop community surrounding TPL operations welfare by inclusion of local

entrepreneurs as contractors, create more job opportunities for local job-seekers and implement

high impact grass-root community development programs through its 1% CD Net Sales allocation.

TPL pulp mill annually generates total sales revenues of 123.865 USD and 126.8 juta USD in 2017

and 2018 respectively, representing increases despite increasingly challenging economic

environment.

This impacts TPL environmental performance with continuous fiber resource requirements, it also

mandates TPL with a greater control in managing the environmental impacts of its operations to

ensure environmentally friendly and continuously improved mill operations. In recent years, TPL

major international customers are increasingly demanding responsibly manufactured products from

sustainably managed fiber resources.

TPL ensures the demands are met by achieving third-party certification and verification to national

and international standards, as a proven fact that TPL is complying and committing to sourcing its

fibers needs from sustainably managed fiber resources. These are some Mill and Fiber Certification

which already Company got.

VLK Certificate 2016 09 Des 2014 until 08 Jun 2024

Validity Period : 10 th

PHPL Certificate 17 Okt 2018 Until 16 Okt 2023

Validity Period : 5 th

OHSAS 18001 : 2007 18 Jan 2017 until 18 Jan 2020

Validity Period : 3th

SMK3 14 July 2017


ISO 14001 : 2015 15 Agust 2018 until 24 Juni 2019


IFCC2017 21 Des 2017 until20Des 2020


Certificate PVT IND 45 14 des 2011

Validity Periode : Continue

Certificate PVT IND 61 2 June 2010


Certificate PVT IND 32 14 des 2011


Certificate PVT IND 47 16 Nov 2009

Validity Periode : Continue Certificate PVT IND 47 16 Nov 2009


Certificate PVT IND 47 16 Nov 2009


Certificate PVT IND 32 14 December 2011


TPL strives to enhance transparency on every process by pro-actively responding to the interests of

all stakeholders. Such attributes support TPL competitiveness in a globalized market.

3.1. Sustainability Policy

Picture 3.1.1 TPL’s Sustainability Policy

TPL’s Sustainability Policy was developed with inputs from key stakeholders including Independent Team

appointed by North Sumatera Governor, community and civil society.

The commitments made in this document apply entirely and exclusively to TPL, which is an independent

public listed company operating in Indonesia. TPL will ensure that all of our operations – including our

mill as well as our plantations and the natural forests in our concessions - comply with the commitments

outlined in this policy, as well as Indonesia laws and regulations. We will source our raw material only

through suppliers or subcontractors that abide by this policy and are transparent and provide a

traceable supply (e.g. SVLK).

I. Long Term Sustainability

TPL’s objective is to establish sustainable plantations that supply wood to its mill, provide

employment and business opportunities and socio-economic wellbeing for the community. TPL

and its suppliers will take a holistic approach to conservation of natural forest, sound

environmental policies and social values:

a. Effective immediately, TPL and its suppliers will conduct High Carbon Stock (“HCS”) and High

Conservation Values (“HCV”) assessments on any new area targeted for development. HCS

and HCV areas identified from these assessments will be protected, and TPL and its suppliers

will ensure that fibre supply will not contribute to the degradation or loss of HCS and HCV

forests;

b. Only areas that are non HCS and HCV will be developed into plantations;

c. TPL and its suppliers will use HCV Resource Network licensed assessors for HCV

assessments. If such assessors are unavailable, TPL will refer to the Independent Team

recommendations;

d. TPL and suppliers will be guided by HCS Approach Steering Group;

e. TPL halted harvesting of mixed hard wood on 30th June 2014, pending HCS and HCV

assessments. Mixed hard wood harvested prior to 30th June 2014 have been utilized by its

mill by September 2014;

f. Any residual fibre cleared from non-forested land as defined by HCV and HCS such as scrub

land, will be utilized by its pulp mill.

II. Forest Protection and Conservation

TPL enforced a self moratorium on 30th June 2014 of natural forest clearance pending the

outcome of HCS and HCV assessments. This moratorium also will be applied to all third-party

wood suppliers to TPL :

a. Support the conservation in areas where TPL operates;

b. Support biodiversity and carbon conservation initiatives.

III. Responsible Management Peatlands

TPL will adopt the following policy for peatlands:

a. No new development on forested peatland;

b. Ensure that HCV and HCS forested peatlands is protected;

c. Implement international best practice management to reduce carbon footprint within the

peatland landscape;

d. No new development will take place within undeveloped concessions area on non-forested

peatland until receiving input from the independent peat expert.

IV. Continuous Reduction of Carbon Footprint

TPL recognize the important of climate change and are committed to continuous reduction of

carbon footprint by undertaking the following:

a. Continuously improve its energy efficiency throughout the supply chain and optimize

utilization of renewable energy;

b. Carbon absorption through conservation and continuous improvements in sustainable

plantation management practices;

c. Constant application of “Reuse-Reduce-Recycle”, where possible;

d. Reduce the company’s carbon footprint related to land use by avoiding deforestation and,

where possible, through the protection of HCV and HCS.

V. Proactive Support of Local Communities

In supporting the wellbeing of local communities, TPL will continually seek opportunities to

consult and align with the interests of communities and create shared values through:

a. Strengthened efforts in alleviating poverty in rural communities around TPL’s areas of

operation, through creation of jobs, better access to quality education, community

empowerment and enhancement of rural livelihood;

b. Pro-active Community Development ("CD")/Corporate Social Responsibility (“CSR”) activities

especially village entrepreneurship businesses and farming systems;

c. TPL will make available CD/CSR funds to support local community programs as stipulated in

the addendum of the deed of Paradigm Commitment Implementation Statement No. 05 dated

19th April 2017 and its addendum (if any);

d. Inclusion of smallholders and/or small medium enterprises into TPL’s supply chains, where

appropriate;

e. TPL will engage communities through regular meeting to obtain inputs on social issues and

how to effectively overcome them for mutual benefit.

VI. Respect the Rights of Indigenous Peoples and Communities

TPL respects the rights of indigenous peoples and rural communities and are committed to the

following:

a. Respect the universal declaration of human rights, national laws and ratified international

treaties on human rights and indigenous people;

b. Respect of the tenure rights of indigenous peoples and rural communities;

c. Respect of the rights of indigenous peoples and communities to give or withhold their Free,

Prior and Informed Consent (“FPIC”) within operation boundaries on lands where they hold

legal, communal or customary rights prior to commencing any new operations;

d. Resolution of all complaints and conflicts through mutually agreed, open, transparent and

consultative processes that respect customary rights;

e. No tolerance for the use of violence, intimidation or bribery;

f. TPL to engage with communities, government, customers and civil society at the local,

national and international levels;

g. To develop Standard Operating Procedures (SOP) and maintain processes for the responsible

handling of the list of all complaints from communities and other relevant stakeholders. These

processes will be developed, updated, improved, monitored and reported to the Independent

Team;

h. TPL will adopt a transparent and accountable grievance mechanism and mutually agreed

open, transparent and consultative dispute resolution processes that involves relevant

stakeholders;

i. TPL will maintain, update and agree on the list of conflicts and appropriate responses with

communities and stakeholders.

VII. Clean Production

TPL will monitor and reduce its overall emissions and control waste water effluent by adopting

best practices while taking into account its current design and operating environment.

VIII. Responsible Practices in Our Work Places

TPL commits to providing a safe, productive and conducive work environment where employees

can contribute and advance, by ensuring specifically that:

a. Respect of the International Labor Organization's Declaration on Fundamental Principles and

Rights at Work;

b. Recruitment best practices are in place, meeting all legal requirements and cultural practices;

c. Freedom of association is respected;

d. Diversity within its workforce is respected;

e. If provided as part of the package, accommodation is safe and hygienic;

f. The health and safety of workers is protected. TPL shall equip workers to protect them from

exposure to occupational health and safety;

g. No tolerance is given for child labor, forced labor or bonded labor;

h. No tolerance is given for discrimination, harassment and abuse in any form.

IX. Legal Compliance and Certification

TPL goes beyond legal compliance toward achieving Sustainable Forest Management:

a. Reaffirms its commitment to comply with all prevailing laws and regulations, and requires all

its wood suppliers to do so;

b. Participate in forest management certification schemes and encourages its wood suppliers to

do the same;

c. TPL currently has and will continue to maintain timber legality assurance system (SVLK)

certification;

d. TPL has strict “No Burn” policy and will follow the national legal requirement addressing

impact of fires;

e. TPL has a robust wood tracking system to ensure all the wood is traceable back to source. TPL

will identify the origin of the pulp and plantations/wood fibre through mapping our entire raw

material supply chain (chain of custody) back to the mills, plantations, and forest areas (e.g.

through SVLK), and ensure the transparency and traceability of our own operations and forest

concessions by June 30, 2016.

X. Good Corporate Governance, Verification and Transparency

TPL commits to best practices in good corporate governance and transparency.

a. TPL will maintain an Independent Team established in 2004 to ensure transparency and

implementation of this Sustainability Policy;

b. TPL will provide regular progress updates to key stakeholders on the implementation of TPL’s

Sustainability Policy;

c. TPL will establish a transparent, responsive grievance mechanism with input from all concern

parties and will respond to grievances in a timely and transparent way;

d. TPL will work collaboratively with government, industry associations and other stakeholders to

support sustainable forest development.

3.2. Grievance Mechanism

TPL understands the concern amongst local and international media over the sustainability issues of

its forestry plantations, in particular the use of eucalyptus, continues to be one critical issue to

address despite the fact that is committed to sourcing its fiber resource from sustainably managed

forest originating from legal production forest area that has been allocated by the government of

Indonesia for plantation forestry. Other concerns revolve around international stakeholders were in

regards of gas emissions as a direct result of land use change. Majority of these concerns were

channeled out in forms of grievances directed to TPL management via various channels of

communications but fail to reach TPL management. TPL endeavors that stakeholder at large had the

correct mean of channeling their concerns through a direct official mechanism which is later known

as TPL grievance mechanism set up to provide TPL with feedback as TPL moves forward. The

Grievance mechanism is one strategy to continuously keep TPL informed of the stakeholders’

priorities.

Picture 3.2.1 Grievance Mechanism

Picture 3.2.2 Grievance Redressal Procedure

Grievance Mechanism commenced in May 2017

Picture 3.2.3 Chart of Grievance Report 2017

Table 3.2.1 Grievance Report 2017

2017 Mei Juni Juli Agustus September Oktober November Desember total

Incoming 3 6 20 3 5 5 58 8 108

Solved 3 4 17 2 4 5 57 8 100

Picture 3.2.3 Chart of Grievance Report 2018

Table 3.2.1 Grievance Report 2018

During the course of 2017 to 2018, there are 220 grievances documented by TPL Grievance

mechanism, the category ARE MAINLY related to the following:

GRIEVANCES TPL RESPONSE

Waste management TPL invests in innovative procedure and equipment to come to a more efficient and environmental friendlier management of its waste, both solid and liquid waste. The waste undergoes several steps of containment refinement in order not to pollute community living in surrounding areas

Waste water concerns from nearby communities (mill)

Mills operation address to strict government guidelines on the quality of waste water. Samples are checked periodically by both mill and appointed external laboratories and reported to the environment agency (Dinas Lingkungan Hidup).

Fiber resources and value chain related to deforestation concerns

TPL announces moratorium of natural fiber in June 2014, as it also commits to process only fiber deriving from zero deforestation suppliers. TPL fiber are PHPL certified and sourced from plantations and we guarantee not to use High Conservation Value Timber.

Level of gas emission, Bad Odor Gas emissions from mill and power plant are constantly

0

2

4

6

8

10

12

14

10 9

8

12

10

7

12 12

14

8 8

2

10

7 8

11 10

6

10

12

14

8

6

2

Keluhan Masuk

Keluhan Solved

reported by communities surrounding mill operation

monitored against the relevant government guidelines. Air quality surrounding our mills is also measured to ensure mill operation does not impact the air quality of the communities living nearby. The improvement of vapor machinery is taking place, once installed the odor will be 100% contained.

Safety and security of operation

TPL complies with national and international safety and security guidelines. Employees are regularly trained to improve to the way in which they work to ensure 100% compliance to existing safety & security protocols

Carbon Foot print concern TPL continually improves its power operations sites, decreasing carbon footprint and enhancing its responsible forest management (including peat land management), strengthening reduces emissions related forest fires at the same time sequestrating carbon foot print in its operation.

Land/ expansion concern TPL adheres with FPIC (Free Prior Informed Consent) in its fiber operation in every forestry sector. Prior to operating an area, a Free Prior Informed Consent is secured from the communities within the area.

3.3. Multi-stakeholder Forum

Tpl general stakeholders are the communities that live in the areas surrounding mill and forestry

sectors, staffs and their families, local and international NGOs, the district, provincial and the

national Government of Indonesia, press and media, business partners, contractors, suppliers and

TPL customers. TPL recognizes that although its operation is at a local level but the nature of the

business has become a global attention, and as such, TPL has made ready an engagement

mechanism to ensure stakeholders concerns are timely addressed and resolved. The mechanism

under which TPL is engaging with its general stakeholders is further described as MSF (annual Multi

Stakeholder Forum):

Table 3.3.1 Summary Result Of MSF Section 1 and Section 2

Besides the MSF Forum, TPL is making aware of its stakeholders through website,

www.tobapulp.com, TPL also develops social media account such as Facebook, Instagram to engage

in online conversation of various topics. Sustainability, community development and all related

updates are also published on TPL website to keep stakeholders abreast of latest developments.

http://www.tobapulp.com/

Realization Of MSF I and II

Action Plan MsF I 20 Sep 2017 di Four Point Hotel, Medan

NO Summary Multi Stakeholder Forum Medan Action Plan

1 Communities can work together with TPL in non-productive areas as the implementation of social forestry

TPL has PKR Program which colaborate with local communities. The local communities that have unproducted land has been made become PKR by collaboration TPL and local communities. Hoped In the process, local communities become one of worker in that program like in nursery, fertilization, spraying etc.

Wide : 7.5 Ha Owner : Wesliman Pasaribu Locationi : Lintong, Kec. Borbor, Kab. Tobasa

2 Issue about river is dried because TPL operational activity

- Management of protected area by make boundary marker so that the operational of eucalyptus plantation does not pass to the protected area

- install the prohibition board do not cut the tree

- Doing the rehabilitation/ reforestation for the local plan

3 Participatory mapping with community and government

-

4 Implementation FPIC continuing

Desa Nassau - 22/09/2018 Desa Meranti Barat - 02/05/2018 Desa Silantom Tonga - 18/01/2018 Kantor Koramil Silaen - 26/05/2017 Desa Lumbangaol - 19/04/2017 Desa Gorak - 18/04/2017 Desa Sibide Tengah - 12/03/2017 Desa Marihat Huta - 24/02/2017 Desa Sibide Barat - 1/02/2017 Sektor Padang Sidempuan - 12/01/2017

Desa Sibide Barat - 1/02/2017

Desa Marihat Huta - 24/02/2017

5 Transparency and communication continuing

The information was shared by TPL’s Website, TPL’s social media, and the meeting with stakeholder like Multy Stakeholder Forum (MSF). Beside that, the society be able give their suggestion by TPL’s grievance call center at 8 a.m until 5 p.m. The suggestion which is given by the society, will be responded and informed to the responsible department immediately. .

MsF I , 20/09/2017, Medan TPL tranparancy by website Truk yang ditempel stiker pengaduan

6 Communicate with community through multi stakeholder meeting

MsF I : 20 September 2017 at Four Point Hotel Medan MsF II : Tanggal 29 November 2017 at Niagara Hotel Parapat

7

Support community trough program for small and medium enterprises

TPL support UKM Keripik Pisang, Keripik potato, Gerabah, honey bee and coffee. TPL also support the selling and promoting the product

MsF I , 20/09/2017, Medan MsF II, 29/11/2017, Parapat

Action Plan MsF II 29 November 2017 di Niagara Hotel, Parapat

NO Summary Multi Stakeholder Forum Medan Action Plan

1 TPL support cultural and art performance - Njuah-Njuah celebrate in Kab. Dairi to rember HUT Kab Dairi 24-29 September 2018 Rp.15jt

- Pesona Humbahas at Bakkara 10 Juli 2018 Rp. 60jt

- commissioning Pemugaran makam Sisingamangaraja in desa simare-mare September 2018 Rp. 1.108.000.

- Pesta Danau Toba di Humbahas Tahun 2018 Rp. 150.6jt

TPL support Pesona Humbahas at Bakkara

8 TPL has to clear and transparent related implementation CD fund and explain to local government and community

CD report will be reported to the governor dan regent each regency. The report will be sent twice in annual. First report : Period I : Jan-Jun Second report : Period II : Jul-Des

CD’s Delivery report to the DIRJEN PHPL period Jan-june 2018

9 TPL provide mechanism to solve Lumban Sitorus case

-

10 TPL support Toba Lake as international destination tourism

-

Desa Aek Natolu Simalungun dan Hutajulu Desa Jangga Toruan

Proof delivery of Community

Development Report to PHPL

From January – June 2018

10 Juli 2018

2 TPL engage with BUMDES (Badan Usaha Milik Desa)/ village enterprises to develop talent skill of youth in Toba Samosir

Not yet

3 TPL conduct stakeholders regular meeting MsF I : on 20 September 2017 at Four Point Hotel Medan MsF II : on November 2017 at Niagara Hotel Parapat

4 Implementation social forestry in conflict areas

Collaboration TPL and Dusun II Nagahulambu community (had MoU). The plant are Petai, Jengkol, Durian, Palm sugar.

Dusun Nagahulambu Community collaborate with PT.Toba Pulp Lestari,Tbk were planting lifing plant

5 The certainty of cooperation to partners who have made the bidding process

6 Ensure related truck tonnage and road maintenance

TPL have done the road maintenance: - Main road have done 9 times in a

MsF I , 20/09/2017, Medan MsF II, 29/11/2017, Parapat

year - Branch road have done 2 times in a

year TPL obey to the statutory regulations and government regulation concern the determination of maximum weight that allow in certain road appropriate Kepmen PU No. 58/KPTS/M/2012

7 Ensure the CD implementation impacted to increasing community livelihood

- Building the irrigation in Sion Timur II Parlilitan Humbahas

- Rp.92jt - Building the irrigation in Palenggam

Sion Timur I Parlilitan - 92.jt - Building the irrigation Sion Timur I

Parlilitan Humbahas - Rp.95jt - the aid of manual coffee maker 50rb - Bantuan pengadaan kemasan keripik

kentang 12 kg - 456rb - Building the irrigation at PBT - 328jt - Make the labeling of Keripik Pisang

Toba - 433rb - coaching potteri craftsmen - 5.5jt - Fostering chili cultivation - 23.1 jt - supplying pig brood breeder di desa

Sidulang dan Sintong Marnipi - 219.9jt - Make of chiken coop material di

Parsoburan Barat - 7.9jt - helping the operasional Gerabah Nop-

Des 2017 di Balige - 16.9jt - helping operational of cultivate

andaliman in Taman Eden 100 - 83jt

8 Evaluate the performance of Public Relation staff which according to the community is still bad

TPL Regenerates employee

9 TPL has not responded yet related Pine Logging TPL do not pine logging

10 Development the sector office by planting fruit trees around the sector

- collaborate TPL with Dusun II Nagahulambu’s community (already

Coaching chili cultivation in Desa Lumban Huala, Kec. Parmaksian, Kab. Tobasa

has MoU). The plants are Petai, stink bean, durian, and aren

dusun Nagahulambu’s community collaborate with TPL plant some living plantation such as petai, stink bean, and durian

11 TPL should working together with KPH (Kesatuan Pengelolaan Hutan) or Forest Management Unit

- TPL has already done the roadshow to all KPH where is in TPL’s operational area since agust 2018.

- TPL make a collaboration with KPH IV balige to built the living plantation in desa simare mare

12 TPL revised the status of the APL inside concession

That is not TPL responsibility to changes the fungtion of national forest

3.4 Community Forestry

TPL community forestry (PKR/ Perkebunan Kayu Rakyat) schemes are continuously becoming the

top priorities for both internal and external stakeholders, with community forestry land issues

particularly important to the latter. TPL Community Forestry schemes are aimed at Society /

External Public.

Roadshow ke KPH IV Balige

In order to empower and improve the economy of the community, TPL has implemented the

People's Timber Plantation Program by planting eucalyptus wood on less productive lands, both on

land within the concession called the Plant of Life and on community land outside the concession.

The Community Timber Plantation Program carried out with the Community is a profit sharing system at the time of harvest in the fifth year. The pattern for sharing the results is as follows:

1. Granting a scheme / fee of Rp. 75,000, - / Ton for peeled wood, and 2. Granting a scheme / fee of Rp. 67,500 - /Ton for skinned wood

Projected volume of timber during the harvest period is 100 tons / hectare, so the expected results during the harvest period are as follows:

1. Rp. 7,500,000, - / hectare for peeled wood, and 2. Rp. 6,750,000 / hectare for skinned wood

The main requirements of the Community Timber Plantation program are as follows: a. Community Land:

1. Location of land outside the concession of TPL 2. In the forest function, it is in the Other Use Area (APL), meaning that it is not a State Forest 3. It is not a source of community water and / or grooves that drain water or river saplings 4. Is a Group or Private Land 5. Has a Land Certificate from the Village Head and Camat 6. The period of cooperation period is at least two (2) harvest times or for 14 years

b. Plant Life: 1. Location of land within the TPL Concession 2. In the function of the forest in the Production Forest Area 3. Allocation in the RKU block as a Life Crop Block

3.5. High Conservation Value (HCV) and High Carbon Stock (HCS)

UPDATE HCV 5 DAN 6

NO Deskripsi Nama Estate NKT Keterangan

1 Water Resources in Desa Pematang

Sidamanik

Aek Nauli 5

2 Water Resources in Desa Sarimattin

3 Water Resources in Desa Bandar Manik

4 Water Resources in Desa Sihaporas

5 Water Resources in Desa Sipolha

Horison

6 Water Resources in Desa Gorak

7 Water Resources in Desa Pondok Buluh

8 Water Resources in Desa Panombean

Hutaurung dan Desa Sibaganding

9 Water Resources in Desa Dolok

Parmonangan

10 Water Resources in Desa Parsoburan

Barat

Habinsaran

11 Water Resources in Desa Parsoburan

Barat

12 Water Resources in Desa Sidulang

13 Water Resources in Desa Tapian Nauli II

dan Desa Sabungan Nihuta IV

14 Water Resources in Desa Tapian Nauli II,

Desa Sabungan Nihuta IV dan Desa

Pardomuan Nauli

15 Water Resources in Desa Sait Nihuta

Aek Raja

16 Water Resources in Desa Simarigung

17 Water Resources in Desa Lumban

Silintong

18 Water Resources in Desa Lobu Sunut

19 Water Resources in Desa Huta Tinggi

20 Water Resources in Desa Aek Raja

21 Water Resources in Desa Manalu Dolok

dan Horison Ranggitgit

22 Water Resources in Desa Partungko

Naginjang

Tele

23 Water Resources in Desa Partungko

Naginjang

24 Water Resources in Desa Pargarutan Julu

Padangsidimpuan

25 Water Resources in Desa Sanggapati

26 Water Resources in Desa Gunung Tua

julu

27 Water Resources in Desa Pargarutan

Dolok

28 Water Resources in Desa Pangkal Dolok

Lama

29 Water Resources in Desa Tamosu

30 Water Resources in Desa Janji Manahan

31 Water Spring in Desa Simangambat

Dolok

32 Petilasan Makam Raja Natangkang Aek Nauli

6

33 Tomb Raja Sihapas- hapas

34 Well Sisingamangaraja Habinsaran

35 MonumentDatu Napunjung Aek Raja

36 Well Homban

37 Lubuk Larangan Desa Tamosu Padangsidimpuan

38 Cultural Site Desa Huta Padang

3.6. Free Prior Informed Consent (FPIC)

free, prior and informed consent is one of the mechanisms developed to strengthen the rights of

indigenous peoples and/or local community over natural resources, including to respect, protect,

fulfil and enforce the rights of indigenous peoples over their natural resources in any action taken by

outsiders to indigenous peoples.

Sosialitation in Desa Sibide Barat Kec Silaen Sosialitation in Desa Sibide Barat Kec

Silaen

Desa Lumbangaol Kec Habinsaran Desa Lumbangaol Kec Habinsaran

Sosialitation in Desa Sibide Tengah Kec

Silaen

Sosialitation in Desa Sibide Tengah Kec

Silaen

Sosialitation in Dolok Panribuan Kec.

Simalungun

Sosialitation in Dolok Panribuan Kec.

Simalungun

Sosialitation in Kantor Koramil 14 /Silaen

Sosialitation in Kantor Koramil 14 /Silaen

Sosialitation in Nagori Gorak Kec Pematang

Sidamanik

Sosialitation in Nagori Gorak Kec Pematang

Sidamanik

Sosialitation in Desa Napajoring

Kecamatan Nassau Kabupaten Tobasa

Sosialitation in Desa Napajoring

Kecamatan Nassau Kabupaten Tobasa

Sosialitation in Tapanuli Selatan

Sosialitation in Tapanuli Selatan

FPIC Socialization of RKT (Annual Work Plan) 2019 PT. TPL

No Information Photo

1 Date : 25 Januari 2019 Venue : Kantor Sector Aek Raja Participant : TPL Jandres H. Silalahi, Oriza Simanjuntak, Rudy Panjaitan Monang Simamora, Kosmos Nainggolan, Parincan Panjaitan, Ramson Simamora External : Staff KPH XII : Tumpak Sianipar Tirton M. Manalu Junjungan Silaban Camat Parmonangan Hatoguan Nababan Camat Pagaran Village element : Pardomuan Manalu, Ferdinan Manalu, Tanus Manalu, Sudirman Manalu, Sunggul Simamora Community: Darus Manalu, Jamustar Manalu, Koesdar Manalu, Martin Aritonang, Bismar Simarmata, Roland Nababan Discussion :

1. Planting Plan : 2,321 Ha 2. Harvesting Plan : 518 Ha ;

19,088 Ton 3. Partnership scheme, CSR and

Environment

2 Date : 29 Januari 2019 Venue : Kantor Habinsaran Participant : TPL Jandres H. Silalahi, Oriza Simanjuntak, Rudy Panjaitan Effendi Sitorus, Sabam Samosir, Binsar Nainggolan, Bedman Ritonga External : Ka. KPH IV Leo Sitorus dan jajarannya Camat Borbor : Sabam Pardede &

Jajarannya Camat Sipahutar : R. Silitonga & Jajarannya Camat Siborongborong : Siasep Manalu & Jajarannya Villagers : Hisar Simanjuntak, Resman Simanjuntak, Eli M. Nababan, Jonanja Panjaitan, Hartono Simanjuntak, Baholker S., Jabaru Pardede, Naek Hutapea, Demas Simangunsong, Partomuan S. Communities : Dapot Simanjuntak, G. Nababan, Hendra Nababan, Sanggam Pardede, Bangun Pardede, Darton simanjuntak Pembahasan :

1. Planting Plan : 3,570 Ha 2. Harvesting Plan : 2.689 Ha ;


Environment

3 Date : 30 Januari 2019 Venue : Kantor Tele Participant : TPL Jandres H. Silalahi, Oriza Simanjuntak, Rudy Panjaitan Karman sirait, James T. Bolon, Rapi simanjuntak, Pius butarbutar External : Ka. KPH XIII Benhard Purba dan jajarannya Sub district/municipality : Ruberton Manik & Jajarannya SekCam P. Bharat : S. Anto Padang & Jajarannya Staff Camat sosor Dolok : Lince Sinurat Village element: Suardi M. Sinaga, Polber L. batu, Harmono, Iin Siagian, Benget Sitinjak, Pintor T. Community : Marianus, Bistok situmorang, Karjtum

Nadeak, Erikson Sitinjak, Masden Tinambunan, Jomek Tinambunan, Parulian Situmorang, Lindung Padang, Ammit Padang, Peris Rejeki Pasaribu,Saulus Padang Discussion:

1. Planting Plan : 4,511 Ha 2. Harvesting Plan : 3,542 Ha ;


Environment

4 Date : 31 Januari 2019 Venue : Kantor Aek Nauli Participant : TPL Jandres H. Silalahi, Oriza Simanjuntak, Rudy Panjaitan Natanail Tarigan, Ramli Silaban, Kepler , Bahara Sibuea External : Ka. KPH II Jonner Sipahutar dan jajarannya Head municipality Parapat : Boas Manik, SH & staffs Head municipality P. Sidamanik : Janny farida Damanik, staffs Head Municipality Dlk Panribuan : Rosendi Sinaga & staffs Head Municipality Hatonduan : Maryaman S. & Jajarannya Village element: Rinaldi Sinaga, Sahat Pasaribu, Mesnan, martno Bakkara, Aris Silalahi, Benson Marbun, Suriaten, R. Manurung, Albiner Sinaga, Eko S., Dinner Silalahi, Salmen, Ronny Siadari Community : Tagor Siahaan, SH, Ponide, B. Simangunsong, Manikkon Sinaga, Densus, Kardenius Damanik, Nurselimah br. Parhusip Discussion:

1. Planting Plan : 4,196 Ha 2. Harvesting Plan : 3,472 Ha ;

3.7.PEFC & IFCC

TPL achieved two types of third-party certification schemes in 20 December 2017 for TPL Fiber

operations which are pivotal to ensure that TPL is sourcing fiber responsibly. The PEFC and IFCC

certifications ensure that the forest concessions where TPL receives fiber resources are operating in

accordance with the national laws and regulations related to forestry. With these certifications, TPL

fiber is deriving from forest area that is legally allocated for production activity, free from high

conservation and protection and high carbon stock forests, additionally, TPL as the forest concession

license holder has the relevant permits to manage the area and harvest fiber from its appointed


Environment

5 Date : 1 Februari 2019 Venue : Kantor P. Sidempuan Participant : TPL Oriza Simanjuntak, Tagor Manik, Leo siburian, Edy Sinuraya, Yan Putra External : Staff KPH VI Sipirok : Ady Suhendra Harahap, Sudirman Silitonga Head Municipality Sipirok : ABD. Rahman, S.Sos & staffs Head Municipality Pargarutan : Darman & Syamsul Village Element : Bestari Pohan, Sulaiman Sinaga, Hanafi Hrp, Sayuti Hrp, Dolly Parsaulian Hrp, Parada Hrp, Jonni Togu, Abdul Umar, Pangiduan Srg, Holil Pohan Community : Samurdi Srg, Agus Eko S., Darius Hrp, Umar Dani, Rahmat, Jasron SRG, Salman HRPJasron SRG, Salman HRP Discussion :

1. Planting plan : 337 Ha 2. Harvesting Plan : 81 Ha ;


Environment

concessions. Both certification schemes go beyond legality verification as it also reviews the

environmental and social performance of the company’s forest management, such as,

implementation of environmental impact assessment on the forest concessions, whether areas that

are defined as protected area by the national regulation have been set-aside from production

activity, whether the management plan for the area is sufficient to ensure that it can be maintained

in its original natural state and can continue to provide environmental benefits and services to the

wider eco-system.

PEFC

Global market requirements demand sustainably produced with accepted standards. In response to

this market request, TPL have attained The Program for the Endorsement of Forest Certification

(PEFC) scheme, which is one of the leading global standards in forestry certification and the world’s

largest in terms of the area of certified forest. The scheme endorses national certification schemes

by assessing them against the sustainability benchmark criteria set by PEFC international.

PEFC certification represents that the mill operates and sources from sustainably managed forest.

All fiber resources are credible and do not originate from natural forests. Additionally, PEFC supply

chain certification signifies all fiber sources utilized in production are traceable and non-

controversial.

IFCC

IFCC (Indonesian Forestry Certification Cooperation) is a standard drafting institute for Indonesian

forest certification schemes. IFCC uses the international standardized PEFC (Programmer for

Endorsement of Forest Certification) scheme. The forest certification standards developed by IFCC

are not limited to forest certification but also forest products from three aspects:

1. Production aspects 2. ecological aspects 3. social aspects.

TPL appoints Bureau Veritas Indonesia as a certified auditor to conduct IFCC audits. The audits include document audits and field audits for tree aspects. Document audits at the central TPL office include document checks, standard operational procedures and internal policies and ensure that they are implemented. Field audits were conducted on 3 Sectors of PT Toba Pulp Lestari Tbk: Aek Raja Sector, Aek Nauli Sector, and Tele Sector.

both of the cited international standards practice supply chain tracing system to ensure fiber

sources are tracked from forest through to the mill continued to the final product purchased by the

customers.

4. Environmental Management

TPL complies with Indonesian government requirement in accordance to primary environmental

assessment, pollution and control nationwide programs.

TPL pulp mill attained the ISO 14001 on Environmental Management which is an internationally

recognized standard laying down a framework for an environmental management system.

Air Emissions

TPL air emissions are mainly from combustion of on-site power generation facilities and from

pulping and papermaking processes. The main emissions from TPL mills are CO2, NO2 and SO2, also

emit ClO2 and Cl2.

TPL monitors closely the direct emissions from on-site power generation facilities as well as the air

quality in the area surrounding the mill so that it is acceptable under government parameters. TPL

applies continuous emissions monitoring mechanism which allows to observe the mill air quality.

The emission monitoring results are regularly reported to the Ministry of Environment. Air quality

and emissions are filtered by equipment such as bag filters and Electrostatic Precipitators (ESP)

within the exhaust systems to prevent harmful substances from reaching the atmosphere, also

scrubbers utilized in the exhaust systems for chemical related process.

Carbon Emissions

TPL operates in a reduced GHG emissions environment through reduced utilization of fossil fuels as

energy sources in its mill. TPL utilizes organic matters as fuel instead of fossil fuel by installing

technologies to improve the efficiency of energy consumption. TPL strives to drive improvements in

GHG emission reduction. In 2017 and 2018 respectively, the total CO2 reduction is reflected in the

table below:

Insert table on CO2 reduction in 2018

Aside from these approaches, TPL adopt other standard relevant to its operations to better manage

the environment to meet with national and international expectations. TPL adopts National

environmental monitoring program “PROPER”.

PROPER

Indonesia’s Ministry of Environment launched a voluntary environmental initiative known as

PROPER – Program for Pollution Control, Evaluation and Rating in 1995. PROPER aimed at public

disclosure, environmental awards and reputational incentives as the motivating to fuel

environmental improvement for industries.

Under PROPER Scheme, the industries are rated by 5 (five) categories:

Gold for going beyond compliance and showing best in class

Green for excellent performance beyond compliance,

Blue for compliance,

Red for non-compliance,

Black for those companies that caused serious damage to the environment.

TPL mill attained BLUE PROPER category in 2018 and will be working to achieve GOLD category in

years to come.

5. Sustainable Forest Management and sustainable fiber supply chain

The Indonesian climate and geography enable a high growth rate of fibers, at such global paper

manufacturers have turned their attention to establishing plantations as a fiber resource in the country.

TPL Industrial forest (HTI) development in this region presents a continuing and real challenge in

balancing sustainable development with economic growth in an area of high social and environmental

sensitivity. In other to manage the cited, TPL that sustainably managed HTI based fiber will continue to

provide a major portion of TPL mill fiber needs. TPL practices keys to sustainable forest management:

Sourcing entire fiber resources from legal and responsibly managed plantations under relevant

environmental standards equipped with third party verification and certification.

Maintaining balance of social development and economy development whilst protecting and

conserving the surrounding environmental as well as enhancing economic welfare to

surrounding communities in operation areas

Ensuring responsible operations of the entire supplier chain in line with TPL sustainability policy

and adopt best practices.

TPL sustainable Fiber Supply Chain is benchmarked by third party credentials through renown bodies for

product certification and labelling. These cover the entire supply chain in in the sourcing of raw

materials, environment performance benchmark for our mill operations and the content of our pulp

product. In a lifecycle approach, the company has sustainability approach embedded across the entire

Fiber supply chain.

SMK3 Award

2018

Indonesian Legal Wood

2018

PROPER Biru

2017

SGS ISO 14001:2015

2018

SGS ISO 18001:2007

2017

TPL complies with two types of third-party audit schemes for its fiber resources which are central to

management approach in ensuring TPL fiber is responsibly sourced; SVLK (Timber legality verification)

and Indonesian Sustainable Forest Management certification/ PHPL certification.

SVLK (Timber legality verification) is the primary sustainable wood sourcing certification. This

mechanism ensures that the forest concession where TPL sources its fiber pulp is operating in

accordance with the forestry and environment national laws and regulations. It also includes assuring

that the fiber is sourced from forest area that is legally allocated for production activity, not

conservation and protected forestlands, and that the forest concession license holder has the relevant

permits to manage and harvest fiber from the concession area.

The PHPL certification is beyond legality verification, however, as it also reviews the environmental and

social performance of the company’s forest management. PHPL certification reviews the

implementation of environmental impact assessment on the forest concessions, whether areas that are

defined as protected area by the national regulation must be set-aside from production activity. PHPL

certification assesses whether there is management plan in place for the set aside area to ensure that it

is conserved in its original natural state and to provide environmental benefits and services to the wider

eco-system.

TPL social impact assessment was carried out by Bina Swadaya Konsultan in TPL, The assessment

revealed that : Social impact assessment findings.

a. Impact and Mitigation Social-Economic

company activities have a strong influence on the social behavior of the community, especially behavior

in the economic field.

- Impact infrastructure

The positive impact that most people convey in the four sectors is the increased accessibility of the

community towards important places such as schools, houses of worship, markets, trips between

regions (villages, sub-districts, districts) and community fields. with the construction of roads for the

company's operations in the four sectors, the local community greatly benefited from the accessibility of

the people to their fields.

- Livelihood

The main impact of the company on livelihoods is road access to the garden. Increasing the willingness

of farmers to expand their gardens with the aim of increasing the yield of the commodities they planted

is a challenge for the company. Community development needs trigger tensions in the field due to the

widespread claims of the company's area to be used as community gardens. this case has become an

important issue in the company and related stakeholders so it needs special attention.

b. Impact and Mitigation Social – Culter

The company contributes a lot in terms of social development through Community Development and

non Community Development programs, some infrastructure development activities in the community

are in the form of repairing houses of worship facilities, operating religious activities, repairing mesh

facilities, repairing community houses, operational assistance celebrating Indonesian independence in

various villages. They hope that this service can continue especially for their care. The company also

needs to anticipate the dependence of the community by inviting the community to contribute to the

care

c. Impact and Mitigation health and environment The company's operations in the four sectors, especially the operation of field vehicles have the effect of dust which disrupts the health of the community and also the environmental pollution in which the community lives. Complaints that people feel are often coughs, respiratory tract infections. The efforts carried out by the company to overcome the situation are by watering roads that are passed by the vehicle at least 2 times a day, but the watering is still lacking so that the community is still demanding to increase the frequency of watering.

d. Impact and Mitigation education The most contribution made by the company in the development of educational programs was the provision of facilities and infrastructure in the form of computers, marching band equipment for playing PAUD equipment, and equipment for school buildings. By the end of 2018, our concession areas in 4 (four) operational sectors and 100% of TPL suppliers had

been independently certified under the timber legality verification and/or PHPL schemes. TPL and its

suppliers continue to work to increase the number of certified fiber sources in continuing the

sustainability journey.

6. Conflict resolution approach – Indigenous land

High rate of poverty in an area is closely linked to tension over land use. Increased tension signifies

increased conflicts and thus increased threats to any operations. TPL believes that by engaging the

communities and enhancing their welfare will lead to minimized conflict over land.

TPL seeks to reduce these risks and empower communities to become part of TPL sustainable forest

management. These approaches are reflected in the TPL engagements in conflict resolution through

mutually beneficial solutions, such as:

6.1. Pandumaan Sipituhuta case study

Has been issued 5172 Ha in Ministry of Enviroment and Forestry Decree No. SK.179/Menlhk/Setjen/HPL.0/4/2017. 6.2. Nagahulambu case study

Indigenous Land Claimer :

- Nursedima Parhusip (Claimer)

- Riswanto (Ketua Kelompok Tani DOSROHA)

- Jahotman Nainggolan (Sekretaris DOSROHA)

- Rasni Sinaga (Bendahara DOSROHA)

- dan Masyarakat Nagahulambu

Government and stakeholders :

- Albiner Sinaga (Head villager)

- Kapt. Sabar Panjaitan (Danramil)

- AKP Basra Pinem (Kapolsek)

- Aswal Damanik (KPH II)

- Robert Sipayung (KPH II)

- and religious and village figures

Grand Planting Livelihood Plant in TPL Concession for the indigenous community claim

No Kind of Plant Qty

1 Cinnamon (Tree) 1.375

2 Lime/ CALAMODINE (batang) 606

3 Jengkol (Tree) 1.368

4 Petai (Tree) 983

5 Graft Durian (Tree) 416

6 Graft Acid Glugur (Tree) 819

7 Lemon/ LEMON (Tree) 280

8 Arabica Coffee/ COFFEE (Tree) 3.298

9 Areca Nut (Tree) 650

SIZE OF AREA (HA) 20

PLANTED AREA (HA) 16.15

TO BE PLANCTED (HA) 3.85

6.3. Other indigenous land claims

Indigenous Land Claim PT Toba Pulp Lestari, Tbk

No Indigenous Land Claim Ha Remarks

1 Ama Raja Medang Simamora 149

2 Raja Patik Sirambe 594

3 Ompu. Bolus Simanjuntak 2,492

4 Ompu Pagar Batu 2,752

5 Tukkonisolu 786

6 Matio 1,321

7 Nagahulambu 262

8 Pargamanan Bintang Maria 737

9 Onan Harbangan 566

Total 9,092

7. Responsive Fire Management

TPL applies zero tolerance in applying burning for land clearance. Despite this policy, TPL had in place a

strong commitment followed by a strong, well trained taskforce in fire combat. TPL fire combat team are

also on watch for community inflicted fire within TPL concessions because local communities often use it

as the fastest, the most cost-effective method for land clearance. TPL is equipped with well-trained fire-

fighting crews in its operational area and provide training to local people on spotting fires and tackling

conflagration.

Yes , TPL provide Trainig to local spotting fires and tackling call with MPA (Masyarakat Peduli Api)

Tanaman

Mati

Tanaman

Tidak Mati

Tidak Ada

Tanaman

1 Aek Nauli 0 - - - - - - -

2 Habinsaran 0 - - - - - - -

3 Aek Raja 0 - - - - - - -

4 Tele 0 - - - - - - -

5 P.Sidimpuan 0 - - - - - - -

TOTAL 0 0 0 0 0 0 -

Tanaman

Mati

Tanaman

Tidak Mati

Tidak Ada

Tanaman

1 Aek Nauli 0 - - - - - - -

2 Habinsaran 15 4.84 2.04 0.06 6.94 - 49,099,840 -

3 Aek Raja 12 3.00 0.10 - 3.10 185.20 80,898,836 -

4 Tele 2 - - 0.66 0.66 - 204,400 -

5 P.Sidimpuan 1 10.00 - 1.01 11.01 - 101,444,300 -

TOTAL 30 17.84 2.14 1.73 21.71 185.2 231,647,375

Volume Kayu

Terbakar

(M3)

Total

Kerugian

(Rp)

Keterangan

REKAPITULASI KEBAKARAN ALL ESTATE

YTD TAHUN 2017

No Sektor

Jumlah

Kasus

YTD

Luas Kebakaran (Ha) Total Luas

Kebakaran

(Ha)

REKAPITULASI KEBAKARAN ALL ESTATE

MTD TAHUN 2017

No Sektor Keterangan

Jumlah

Kasus

MTD

Luas Kebakaran (Ha) Total Luas

Kebakaran

(Ha)

Volume Kayu

Terbakar

(M3)

Total

Kerugian

(Rp)

In 2017 and 2018 there are 62 fires affecting 53..06 hectares in concession.

Tanaman

Mati

Tanaman

Tidak

Mati

Tidak Ada

Tanaman

1 Aek Nauli 0 0.00 0.00 0.00 0.00 0.00 0.0 0.0

2 Habinsaran 0 0.00 0.00 0.00 0.00 0.00 0.0 0.0

3 Aek Raja 0 0.00 0.00 0.00 0.00 0.00 0.0 0.0

4 Tele 0 0.00 0.00 0.00 0.00 0.00 0.0 0.0

5 P.Sidimpuan 0 0.00 0.00 0.00 0.00 0.00 0.0 0.0

TOTAL 0 0.00 0.00 0.0 0.0 0.00 0.0 0.00

Tanaman

Mati

Tanaman

Tidak

Mati

Tidak Ada

Tanaman

1 Aek Nauli 1 7.90 0.00 0.70 0.00 0.70 0.00 0.00

2 Habinsaran 11 119.10 9.63 5.00 4.00 18.63 0.00 136,957,932

3 Aek Raja 18 54.20 8.32 0.00 0.50 8.82 0.00 97,213,751

4 Tele 2 3.30 2.80 0.40 0.00 3.20 0.00 0.00

5 P.Sidimpuan 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL 32 184.50 20.75 6.1 4.5 31.35 0.0 234,171,683

REKAPITULASI KEBAKARAN ALL ESTATE TAHUN 2018

No AreaJumlah

Kejadian

MONTH TO DATE

Total Luas

Compt

(Ha)

Luas Area Terbakar (Ha)Total Luas

Kebakaran

(Ha)

Volume

Kayu

Terbakar

(M3)

Total

Kerugian

(Rp)

Total Luas

Compt

(Ha)

Volume

Kayu

Terbakar

(M3)

Total

Kerugian

(Rp)

YEAR TO DATE

No AreaJumlah

Kejadian

Luas Area Terbakar (Ha)Total Luas

Kebakaran

(Ha)

8. Grievance Management

Table 8.1 Grievance Redressal Procedure

Complainant

Expressing the grievance orally/email/SMS/call centre

Providing response to the action having been done

Grievan ce Redress al

Recording a grievance on the grievance form

Conducting an identification and clarification on the grievance received

Minor Grievance

Assistant Manager/Sector Manager shall clarify and verify the grievance evidence with the complainant

Assistant Manager/Sector Manager shall hold a discussion to determine the form of settlement for the clarified and verified grievance.

Assistant Manager/Sector Manager shall implement the measures of settlement having been agreed upon and prepare any documents of the settlement.

Assistant Manager/Sector Manager shall prepare the grievance settlement report and perform monitoring

Medium ‘ Grievance

Assistant Manager/Sector Manager shall clarify and verify the grievance evidence with the complainant Assistant Manager/Sector Manager shall report to Socap 1 and Fiber 1 with the grievance ant its evidence

Assistant Manager/Sector Manager together with Socap and Fiber shall hold preliminary discussion to find the settlement .

Assistant Manager / Sector Manager shall implement the measures of settlement having been agreed upon and prepare any documents of the settlement.


Assistant Manager/Sector Manager shall hold a meeting with the complainant to reach an agreement on the measures of settlement to be taken.

Socap and Fiber shall monitor the measures of settlement

Major

Grievance

Assistant Manager/Sector Manager with Socap and Fiber shall report to TPL Management

Assistant Manager/ Sector Manager together with Socap , Fiber , and TPL Management shall discuss an action plan

Assistant Manager / Sector Manager shall implement the measures of settlement having been agreed upon and prepare any documents of the settlement


Schedule 1 Business Day 1 Business Day 1 Business Day 2 Business Day 1-30 Business Day

9. Human resources

TPL considers its employees as its most important assets, employees’ undying commitment is pivotal to

company success.

TPL respects Human rights and complies with Indonesian employment laws and recognize its employees’

rights of free association and collective bargaining. At present, there are 6 labor associations (SPSIs) in

TPL. Besides free association and collective bargaining, TPL exercises notice period for employees are in

30 days and are stipulated for each employee individually, in line with Indonesian law. Notice periods

are not part of collective union contracts. No child labor is allowed as the minimum employment age

must be 18 and above.

TPL also provides stable, safe, clear career pathway and prosperous working environment is expected by

every performing employee. TPL mill’s worker are 681 and in the 4 forestry sector plantations are 324

personnels update on 2018.

Table 9.1 Number of Employee PT TPL

Section Number of Employee

2016 2017 2018

Mill 563 620 681

Aek Nauli 79 74 78

Habinsaran 77 70 70

Aek Raja 47 52 61

Tele 94 109 115

Total 860 925 1005

Majority employees are where the mill is located and surrounded by communities heavily depending on

the employment offered by the mill since significant proportion of TPL workforce is from the

communities living nearby the mill and the sector plantation.

Table 9.2 The Use of Local Labor in Mill Area and Forestry Area

District

The Use of Local Labor in MILL Area

2016 2017 2018

Number of

Employee %

Number of

Employee %

Number of

Employee %

Kab. Toba Samosir 112 62.00% 110 60.00% 120 46.00%

Kab. Samosir 24 13.00% 23 13.00% 20 8.00%

Kab. Tapanuli Utara 28 15.00% 30 16% 31 12.00%

Kab. Humbang Hasundutan

12 7.00% 15 8.00% 17 6.00%

Kab. Simalungun 5 3.00% 5 3.00% 74 28.00%

Total 181 32.00% 183 30.00% 262 38.00%

Total of employee 563 100% 620 100% 681 100%

District

The Usage of Local Labor in Forestry Area

2016 2017 2018

Number of

Employee %

Number of

Employee %

Number of

Employee

%

Kab. Toba Samosir 87 33.00% 96 32% 175 46%

Kab. Samosir 8 3.00% 10 3% 10 3%

Kab. Tapanuli Utara 53 20.00% 60 20% 52 14%

Kab. Humbang Hasundutan

20 8.00% 20 7% 19 5%

Kab. Simalungun 63 24.00% 77 26% 86 23%

Kab. Dairi 8 3.00% 10 3% 8 2%

Kab. Asahan 13 5.00% 16 5% 15 4%

Kab. Tapanuli Selatan 8 3.00% 10 3% 6 2%

Kab. Tapanuli Tengah 2 0.70% 2 0.60% 9 2%

Total 262 67.00% 301 67% 380 78%

Total of employee 392 100% 451 100% 485 100%

TPL is fully aware of its responsibility towards these communities in providing them with stable

employment. In 2016, 46 % of TPL employees in both management and operational roles were hired

from the local community. TPL policies had it that preference goes to locally hired for local

empowerment reasons and only recruiting further given the worker with the right skills cannot be locally

attained. TPL permanent employees made down of 45 % of total employees at the end of 2017 and

increase of 55 % at the end of 2018. The remaining workers comprises temporary workers who are

employed on a short-term contract to perform a specific task, for example, during the installation of a

new machinery. The short-term contract covers for newly hired employed under temporary contract of

three months to one years or more, depending on human resource department policy before moving

onto a permanent staff contract. Beside that level of employee turn over is relativity increases as there

are many employees reaching retirement age and efforts is done to find replacements.

9.1.Health & Welfare

TPL recruitment exercises impartiality, multi-ethnic, stigma/ race/ religion free working environment

and maintains gender equality in workplace. This applies to recruitment of workforce. Currently, TPL has

the comparison of the male to female workforce ratio of 63:37. The workers are predominantly male

Up to year 2019. The reason owing to that was partly due to the industry need of heavy manual labor

which is more suited to male workers. The basic salary for male and female employees is identical. TPL is

committed to creating an equal opportunities employment and will continue to offer male and female

workers the same opportunities, equal pay, facilities and leave entitlement.

Table 9.1.1 Number of Employee According to Gender Since 2016-2019

Section Number Of Employee

Year 2016 Year 2017 Year 2018 Year 2019

Pria Wanita Pria Wanita Pria Wanita Pria Wanita

Mill 515 48 554 66 605 76 606 74

Aek Nauli 72 7 66 8 70 8 8 66

Habinsaran 73 4 65 5 65 5 5 69

Aek Raja 43 4 47 5 5 56 5 57

Tele 89 5 102 7 7 108 7 104

Total 792 68 834 91 752 253 631 370

% 92% 8% 90% 10% 74% 26% 63% 37%

In 2017 TPL turnover rate was 90 % amongst male employees and 10 % amongst female employees. TPL

provides annual holiday entitlements, sick leave and maternity leave that meets Indonesian

employment regulations, in addition to social security and medical benefits. Permanent employees

receive annual career development reviews, opportunity to discuss career aspirations and set

development goals with their managers. Performance keys (KPI) linked to individual employee in

accordance to their area of responsibility. TPL pays fair wages in accordance to the Indonesian

regulations. Other facilities are the Post-retirement benefits in compliance with Indonesian employment

laws and regulations. TPL aims at retaining talent and envisioned to be a known company for being

responsible in Indonesia. This commitment is also reflected in our low absentee rate.

TPL Unions: There are 6 Labor Unions in TPL where employees are free to associate themselves with the

relevant union. ± 52% of TPL employees are union members. Collective Bargaining Agreement and other

negotiations between Labor Unions and Management apply to all employees. Mill management teams

work in collaboration with unions and employees. There are 6 labor unions in TPL, they are:

a. Pimpinan Unit Kerja Serikat Pekerja Pertanian Dan Perkebunan (SPP-KSPSI)

b. Dewan Pengurus Komisariat Serikat Buruh Independen (DPK-SBI)

c. Pengurus Komisariat Serikat Buruh Sejahtera Indonesia 1992 (PK-SBSI 1992)

d. Pengurus Komisariat Federal Serikat Buruh Hutan Perkayuan Pertanian Serikat Buruh Sejahtera

Indonesia (PK-FSB HUKATAN SBSI)

e. Pengurus Pimpinan Serikat Pekerja Nasional (PSP-SPN)

f. Pengurus Koisariat Serikat Buruh Sejahtera Independen (PK-SEJATI)

Each union has own approach which is suited to labors particular situation. Discussions between

management and unions cover a wide range of topics including health and safety, payroll, working

hours, leave entitlement and employee medical and social benefits which are discussed and revised on

annual basis. Health and Welfare are particularly important elements of the unions’ activity.

Tables 9.1.2 Of TPL Labor Unions And The Number Of Members In Each

9.2. Safety & Security

Safety and Security at workplace is a primary focus area within TPL pulp mill operation. Incidents, which

occurred during 1983 and 1998, led to further improvement in mill operation safety and security system

in TPL mill operations. TPL Safety and Security procedures and preventive actions were aimed to commit

to zero incident at work place. TPL keeps on improving its safety and security policies in order to keep

safe workplace and to ensure mill operation follows and practices well established guidelines in safety

and security management. TPL adheres to Indonesian work safety and health and management system

known as ‘SMK3’ (Sistem Managemen Kesehatan dan Keselamatan Kerja) . TPL mill operation is also

certified by internationally recognized OHSAS 18001 (Occuptional Health and Safety Assesment Series-

18001) safety management system.

Table 9.2.1 LP&C Summary Report 2016-2018

SPPP-KSPSI DPK-SBI PK-SBSI 92

PK-FSB

HUKATAN

SBSI

PSP-SPN PK-SEJATI SPPP-KSPSI DPK-SBI PK-SBSI 92

PK-FSB

HUKATAN

SBSI

PSP-SPN PK-SEJATI SPPP-KSPSI DPK-SBI PK-SBSI 92

PK-FSB

HUKATAN

SBSI

PSP-SPN PK-SEJATI

Total 2016 Total 2017 Total 2018 635 Orang

149 45 191 56 9954 156 21 107 95110 149 59 125 20 121 108 149

584 Orang 595 Orang

2017 20182016

Number of Employee Enter of Labor Unions PT Toba Pulp Lestari,Tbk

10. Community Development

10.1. Deed No.05 on Community Development Program

Given the fact that TPL is an industry which operations (mill and forest concession) are located in the

center of 10 developing districts Toba Samosir, Tapanuli Utara, Humbang Hasundutan (Humbahas),

Samosir, Dairi, Pakpak Bharat, Simalungun, Tapanuli Selatan, Padang Lawas Utara (Paluta) dan Asahan.

of North Sumatra, the industry as reflected in its “Good for the Community, good for the Country, good

for the Climate, good for the Costumer, good for the Company” is mandated to support the economic

and social development of those communities, whose living standards is much lower than their

counterparts in the developed region. TPL’s presence since 2003 showcased continuous improvement

and betterment in infra-structure, such as roads, health care, education facilities and wide-spread job

opportunities in surrounding areas that are in desperate need of economic stimulus. TPL encompassed

national development targets as its baselines in Community Development program including planning,

implementation and monitoring of social responsibility initiatives across TPL operations both mill and

concessions.

Background to Amendment to the Deed of Statement of Commitment Implementation Paradigm No.

54 to the Deed of Implementation Commitment Statement Paradigm No. 05

1. In order to comply with the mandate of Law No. 40 of 2007 concerning Limited Liability Companies (UUPT) in Article 74, namely: 1) The Company that runs its business activities in the field and / or related to natural

resources must carry out social and environmental responsibilities. 2) The social and environmental responsibility as referred to in paragraph (1) is the company's

liability budgeted and calculated as the cost of the company which is carried out by observing propriety and fairness

3) Companies that do not carry out the obligations as referred to in paragraph (1) are subject to sanctions in accordance with the provisions of the legislation

4) Further provisions regarding social and environmental responsibility are regulated by government regulations

In PP No. 47 of 2012 concerning Social and Environmental Responsibilities of Limited Liability

Companies (PP TJSL) in Article 4, namely:

1) Social and environmental responsibility is carried out by the Board of Directors based on the Company's annual work plan after obtaining approval from the Board of Commissioners or GMS in accordance with the Company's articles of association

2) The Company's annual work plan as referred to in paragraph (1) contains a plan of activities and the budget needed for the implementation of social and environmental responsibilities

So that in accordance with the mandate of the Company Law and PP TJSL, requires the

implementation of TJSL, also known as Corporate Social Responsibility (CSR) (previously referred to as

"Community Development (CD)") that was carried out directly by the Directors of the Company.

2. The company in the distribution of CD / CSR Funds has also experienced obstacles, namely: a. That the Company's CD / CSR fund management institution formed by the regional

government based on deed 54 always changes every turn of the Regional Head, which until now has formed 4 (four) foundations and 1 (one) coordination team as the Company's CD / CSR fund management institution. Where an audit is carried out by a Public Accountant (Independent Auditor) on 3 (three) foundations and 1 (one) CD / CSR Fund Coordination team that was formed previously, the result is "Not Disclosing Opinion (Disclaimer)"

b. There are some districts that are late in submitting programs and there are even districts that have never submitted a CD / CSR program so that the Company's CD / CSR funds are not channeled to the Regency.

c. The formation of new districts (Samosir, Pakpak Bharat, Humbang Hasundutan, North Padang Lawas) which are the result of the expansion of Toba Samosir, Dairi, North Tapanuli and South Tapanuli Districts caused changes in the calculation of CD fund allocation / CSR 1% Net Sales for each -one of the Regencies.

3. Letter from the Governor of North Sumatra No: 660/3090/2017 dated 19-04-2017 Regarding the

Amendment to the Deed of Statement of the Commitment of the New Paradigm of PT Toba Pulp

Lestari, Tbk

4. Whereas to date the Company has remained committed to implementing a new paradigm based

on Deed 54 which is re-adjusted to the Company Law and the TJSL PP

Table 10.1.1 Changes to AKTA 54 to AKTA 05

AKTA 54 AKTA 05

1. Management is handed over to the community through a foundation formed by the Toba Samosir Regional Government

1. Management is carried out directly by the Company to the people in each Regency

2. The company will provide funds of 1% of the total net value of pulp sales per year with details of 1% (60% for Toba Samosir Regency and 40% for North Tapanuli, Dairi, South Tapanuli and Simalungun Regencies which are handed over to communities located in factory areas and concession rights industrial forest plantations (HPHTI) for the development of economic, social and cultural development of the community

2. The company in the implementation of CSR / CSR will allocate funds of 1% of the total net sales value of pulp (net sales) per year for the development program of economic, social and cultural development around the factory area and IUPHHK-HTI with details:

a. 50% of the total CD / CSR fund 1% Net Sales for Toba Samosir Regency as the district where the factory is located

b. 50% of total CD / CSR funds 1% Net Sales for each district where the location of the Company's IUPHHK-HTI is divided based on the parameters

formulated by the Independent Team and has been agreed upon by the relevant District Government as the Independent Team Letter dated 09-07-2006 Number 115? INDP / TPL / MDN2006

3. There is no mechanism for disbursing CD funds / CSR 1% Net Sales

3 There is a mechanism for disbursing CD funds / CSR 1% Net Sales

Table 10.1.2 Amount Of CD Disbursed Since 2003 To 2017

No Kabupaten 2003 - 2011 (IDR) 2012 (IDR) 2013 (IDR) 2014 (IDR) 2015 (IDR) 2016 (IDR) 2017 (IDR) Total

1 Tobasa

43,537,225,318 5,693,692,298

6,188,439,620

7,540,477,410

7,381,397,974 6,293,605,140 9,099,122,893 85,733,960,653

2 Humbahas

6,885,747,644 814,825,963

906,179,402

1,197,634,660

1,185,420,687 873,502,790 (392,641,400) 13,079,260,839

3 Tapanuli Utara

5,465,337,729 524,275,637

622,699,432

738,907,054

716,713,691 847,564,905 1,033,289,246 9,948,787,694

4 Simalungun

5,560,550,068 594,577,887

691,029,189

1,060,123,770

1,033,169,606 820,330,802 965,459,563 10,725,240,885

5 Samosir

4,705,867,388 841,127,226

871,766,096

906,407,369

899,543,495 663,498,500 1,375,304,793 10,263,514,867

6 Dairi

3,001,636,129 400,483,214

327,339,877

(66,238,521)

402,061,811 378,258,218 688,071,227 5,581,448,911

7 Tapanuli Selatan

2,591,019,088 450,024,332

277,494,875

338,577,063

333,818,061 280,872,953 614,669,073 4,886,475,445

8 Pakpak barat

2,268,183,100 278,615,881

354,162,301

371,095,127

367,756,213 297,879,142 554,179,337 4,491,871,101

9 Paluta

475,232,534 263,084,737

273,436,797

333,839,215

328,560,555 275,281,422 410,640,691 2,360,075,951

10 Asahan 254,840,202

296,369,097

332,819,022

327,428,465 277,839,424 413,623,361 1,902,919,571

TOTAL

74,490,798,998 10,115,547,377

10,808,916,686

12,753,642,169

12,975,870,558 11,008,633,295 14,761,718,784 148,973,555,917

10.2. Empowering local entrepreneurs

TPL selects and empower its local suppliers based predominantly on their commitment to

delivery and supply, quality, cost and lead time. TPL applies selection policies and criteria which in favor

of local entrepreneurs and in 2018, 97% of TPL procurement spending was directed from local suppliers.

However, TPL applies strict Anti-corruption and nepotism measures despite its favor of local suppliers.

Central to this approach is to managing anticorruption is the application of “whistle-blowing” procedure

led by TPL Audit Division. The Audit staff working at TPL operation as well as at all TPL subsidiary offices

are equipped with full training especially in areas which are likely exposed to high risk of corruption,

such as departments related to finance and those with regular contact with external parties, for

example procurement, sales and marketing. TPL terminates trading with any supplier found to have

breached anti-corruption policies and guilty of corruption practices.

TABLES OF NUMBERS OF LOCAL ENTREPRENEUR VS OUTSIDE CONTRACTORS

Local Contractors Outside Contractors

No Daerah Asal Jumlah No Daerah Asal Jumlah

1 Tobasa 83 1 Riau 6

2 TELE 67 2 Jakarta 2

3 AEN 21

4 AER 35

5 TAS 4

6 Medan 22

Total 232 Total 8

Tabel 10.2

11.Pulp Mill Operations

ENVIRONMENT FRIENDLY PULP PRODUCTION PROCESS:

Picture 11.1 Pulp Production Process

11.1.Rejuvenation and upgrades

There are some upgrade project lit in TPL mill in 2018.

4. NCG System 1. Cooking And ODL 2. Oxygen Plant 3. Wood Chip Conveyor

5. Ash Leaching 6. Evaporator 7. Chiller 8. Cooling Tower

11.2.Energy Efficiency

Energy efficiency is one of the company's commitments as outlined in the company's

environmental policy and subsequently the implementation is translated by each department to

carry out energy efficiency. Energy efficiency is very closely related to efforts to reduce water use as

described in point 2 below. The use of bush water is reduced, the energy/power used to pump the

water will decrease, and the energy to treat raw water into clean water to be used in the plant will

decrease. Other things that are used for energy efficiency are as follows

Efforts that have been made between energy efficiency include:

a. Installing VSD (Variable Speed Drive) in Fiber line units, namely pumps to Washer I, II, II and IV.

b. Installing VSD (Variable Speed Drive) in Multi Fuel Boiler (MFB) units including Induce Draft Fan

(IDF) # 1; IDF # 2 and secondari water fan MFB.

c. Collect cooling water (reuse) to be used again in other process units.

d. install a demister on the TRS scruber incinerator

e. modification of the CNCG (Concentrate Non Condensible Gass) cooling system from the digester

unit to the incinerator unit by installing a water cooler and making a larger seal pot

f. Water from the AC is reused so that it will reduce water consumption from the source. The less

water pumped from the source point, there will be a reduction in energy consumption.

g. Install a special cipher line # 2 to process the skinned logs / logs at the felling site. The thing that

can be saved for this project is water 250-260 m3 / hour and power 1.45 Mwh.

9. CD Filter 10. CDS Automation Upgade

11.3.Water Resource Management

To support plant operations requires a quantity of water in bayank. Therefore water resources must

be managed properly by making improvements so that the use of water resources decreases over

time. The concept used is to implement a 3R program (Reduce, Reuse and Recycle). The following

are some examples of efforts to reduce the use of water resources:

For a pulp industry water is an intensively used resource. At such, water resource management

becomes one crucial process in the pulp processing as a medium to extract fibers through steaming

process. The majority of the water thereon is reused or returned to the mills' water source once it

has been treated. TPL measures water input streams at the mill, untreated water from sources and

the used water management is monitored closely. The below table showed water resource

management in 2017 and 2018:

Show List of water resource management for 2017 and 2018

In 2017 and 2018 respectively, TPL mill utilized 47.372 million m³ (2017) water and 40.067m3

(2018) for production processes,15.40 % reduction on the previous year. Treated water

consumption decreased 15.40% between 2010 and 2011

Bulan 2017 2018

Januari 52,712 38,886

Februari 51,373 41,001

Maret 46,424 41,664

April 49,518 45,529

Mei 44,127 47,640

Juni 40,924 41,501

Juli 48,055 42,063

Agustus 50,646 38,827

September 48,645 40,786

Oktober 47,989 38,218

Nopember 45,269 26,332

Desember 42,787 38,351

Rata-rata 47,372 40,067

Efisiensi Yr 2018 Vs Yr 2017 15.40%

11.4.Emissions Management

Gas waste / air emissions originating from process units are well managed before being released from

the environment through equipment placed in each process unit, including ESP (Electrostatic

Preciptator) to capture dust / particles, scrubbers to capture toxic gases in the presence of neutralizing

solution and incinerator to burn smelly gases. These air emissions are monitored / monitored regularly

with either manual monitoring or continuous monitoring (CEMs-Continuous Emission Monitoring). CEMs

with the following display:

Air Emission Data

11.5. Waste-handling

Waste generated from TPL mill pulp making process are partially re-used as part of the efficient

processes in the meal. Hazardous waste (B3) element generated by the mills varies in forms of used oil,

electronic waste, coal fly ash, batteries and expired chemicals. In 2017 and 2018 respectively the mill

generated 14,769 and 20,886 tonnes of hazardous waste (B3). TPL mill operation comply with national

standards to ensure safe disposal of all waste products. The majority of hazardous waste handling

includes incineration (coal fly ash), landfilling (drags, grits and mud) and re-using (H2SO4 from Pulping

process).

The waste from the production process of PT. Pulp Lestari is divided into 3 categories, namely solid

waste, liquid waste and gas

a. Solid Waste

Solid waste Solid waste in the form of dregs / grit and lime mud from the Rec.Lime Kiln process

unit is sent to landfills that have obtained permission from the Ministry of Environment and

Forestry. Other solid waste is bark / bark from the wood processing process in the Debarking

Drum unit, used as fuel in multi fuel boilers (MFB) mixed with other organic materials such as

palm caul, palm shell, kemirim skin, corn cobs and other organic materials has a high caloric

value. Dust from the combustion results in MFB camels is used as compost / fertilizer at the

location of the company's HTI (Industrial Plantation Forest) concession

b. Limbah Cair

The liquid waste that comes out from each process unit is sent to the WWTP (Waste Water

Treatment Plant) unit to be processed further with an aerobic process so that liquid waste that

has been treated at WWTP has no negative impact on the environment and is safe when

returned to the environment, and must meet parameter quality standards in accordance with

applicable laws and regulations. The reference parameters are as follows:

The liquid waste management chart is as follows:

No Parameter Standard

1 pH 6 - 9

2 BOD (mg/l) 51

3 COD (mg/l) 300

4 TSS (mg/l) 93

5 Sodium (mg/l) 460

6 Sulphates (mg/l) 340

7 Calcium(mg/l) 245

8 Chloride (mg/l) 760

9 Color (Pt-Co) 2620

Data on monitoring wastewater :

c. Gas Waste /Air Emmission

Gas waste / air emissions refer to No.3 Emission Management's explanation

d. Mixed Waste

Classified as mixed waste is B3 waste (Hazardous and Toxic Material Waste) originating from

operational supporting activities including used oil, used sheet, oil filter, cartridge, TP lamp, used

battery, expired chemicals and so on. The mixed waste is managed properly by storing B3 waste

in a temporary storage area (TPS), and then sent to third parties who already have management

permits from the government, to be managed further.

Data of waste B3

12.SUSTAINABILITY ROADMAP

In 2018, TPL began to incorporate overall sustainability efforts and targets into one single long-

term sustainability roadmap. The Roadmap was made up of all aspects of relevant environmental and

social issues with a comprehensive, balanced and clear way forward to help sustaining to business in the

long run. The aim of the roadmap was to assess TPL current commitments and progress against what

might be the global best practices in years to come so that TPL could more comprehensively understand

where and how TPL should improve to meet further growing market demands. TPL sustainable roadmap

is still under development and will aimed to provide specific guidelines and targets for every division

from the senior management level to field-operators both mill and field harvesters operating in forestry

sectors. It is hopeful that once completed, this Roadmap will guide TPL to fulfill its sustainability

commitments to meet the highest international standards and practices by 2023. The sustainable

roadmap document itself is a living document subject to development and enhancement to suit

changing environment.

INSERT PARTIAL/INTRO OF SUSTAINABILITY ROADMAP

2018

•Sustainability team capability to deal with the NGOs and global market requirement strengthened

•Sustainability Report 1.0 drafted

•Sound strategy to deal with sustainability issues developed and tested

•Multi stakeholders meetings conducted

•Pre-assements of Specialty agriculture projects completed

•Perception and Impact assessment / survey conducted

•HCV/HCS assessment completed

•RAN/Canopy Communication protocol discussed and agreed

2019

•Web page for sustainability renewed and completed for better transparency

•Web based Information & Knowledge Center for sustainability established

•Local NGO mapped

•Social Project involving local NGO rolled out

•5 out of 10 indigienous land claim sorted out via win-win solution

•Enhance procurement to adopt Sustainability (mirror APRIL)

•FPIC documentation complete and filed

•Sustainability report 1.0 launched

•MSF meeting

•Framework identified, agreed with RAN/Canopy and rolled out

2020

•Increased land bank (FPIC and ecologically cleared) via government landswap or private owners

•Continue effort to resolve remaining 5 indigenous land claims

•Establish a social assessment team tasked with assessing all proposal related to sustainability projects

•Local Champion identified and engaged in socializing other contractor on best practice

•Engage International entity (TBD: FSC) for certification and partnership

•MSF meeting

•Frame work Implementation for milestone 1,2,3, ...(To be discussed once finalized and agreed with RAN)

•Join Publication with RAN on achieved milestone

2021

•Sustainability project (e,g,Conservation area for showcase ) rolled out

•International entity (TBD: FSC ?)to endorse TPL sustainability identified and MoU signed

•MSF meetings

•Preparatory work for FSC rolled out

•Established taskforce to oversee FSC certification

•FSC certified

•A Steering Committee governing TPL sustainability established

•Sustainability Report 2.0 drafted

•Framework milestone by RAN/CAnopy to be reflected in Sustainability report 2.0

•Join Publication with RAn on achieved milestone

•CONTROVERSIAL STATUS LIFTED

2022

•Sustainability report 2.0 launched

•Conduct Public Exposure for TPL Sustainability report (TBD if possiible to be joined with MsF meetings)

•Evaluate SUSTAINABILITY POLICY

•Enhance/ adjust Sustainability Policy and other related policies to keep abreast of latest development

2023

• Launched Newly adjusted Sustainability Policy and other policies by inviting related stakeholders

•MSF meetings

•Identify new gorunds and target fro sustainability

•Identify New Partners for new sustainabillty commitment

•Adjust team to suit with targets OF THE NEXT level of SUSTAINABIITY COMMITMENTS

•Refine webpage to reflect new commitments (next level)

2024

•TPL FULLY SUSTAINABILE AND ENDORSED BY INTERNATIONAL STAKEHOLDERS

•INCREASED /NEW MARKET ACCESS FOR TPL PRODUCTS

ROADMAP FOR SUSTAINABILITY

Documents

REPORT VERSION 1 - tobapulp.com · Table of Content List of Terminology Acknowledgement 1. About Sustainability Report 1.0 2. Toba Pulp Lestari Brief History 3. Toba Pulp Lestari