IOI’s Statement in response to report and complaint to RSPO by aidenvironment on PT. SKS, PT. BNS and PT. BSS, Indonesia dated 30 March 2015.

15/04/2015, Corporate Communications

IOI views with great concern the serious allegations contained in the said report and complaint by aidenvironment. IOI has adopted a stringent Sustainability Policy which was made public and in some aspects goes above the standards specified in the RSPO certification scheme. IOI takes pride in its long tradition of following sustainability practices and adherence to its public commitments.

The said report consists of two parts : The first part relates to PT. SKS and PT. BNS where many of the allegations first surfaced in years 2010 and 2011. IOI had conducted an extensive investigation of the allegations with the assistance of an RSPO – accredited auditor during that time and the matter was concluded in year 2012 with a statement by the RSPO’s Grievance Panel. In this instance, IOI will nevertheless investigate the few fresh allegations contained in this part of the said report.

The second part of the said report relates to PT. BSS where the allegations can be considered to be new allegations. Soon after the said report was made known to us,IOI has sent its sustainability team to the ground to investigate the allegations with the assistance of a local consultant firm which is well-versed with the conditions and regulations in Western Kalimantan. Our sustainability team and the consultant are still in the midst of verifying the substantive allegations and will produce a report in due course.

At the same time, in response to the complaint submitted to RSPO, IOI is in the process of engaging an RSPO – accredited auditor to investigate the allegations and produce an independent report. We anticipate the site investigation by the auditor may take some time due to the auditor’s usually busy schedule but is hopeful that it will happen in mid-May and a report be produced in end June 2015. If the report reveals any shortcoming or breach of RSPO’s P&C, IOI will, in consultation with RSPO, take the necessary steps to rectify the shortcoming or breach.

Too Heng Liew
Head of Sustainability (Malaysia and Indonesia)
IOI Corporation Berhad
15 April 2015