There are open and transparent methods for communication and consultation

Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 51 of 88

6.2 There are open and transparent methods for communication and consultation

between growers andor mills, local communities and other affected or interested parties The company has had SOP for Information and Request Response IK-3.00-1301. A list of information that can be accessed by relevant stakeholders has been available. Any request for information that is not listed in the list will require asking for Top management consideration and approval. A list of stakeholders has been available for each unit and consists of, among others, Customary leaders community leaders, Muspida and village chief, Company trade unions, Contractors and suppliers. Compliance status: Compliance 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties Company has SOP Stakeholder Complaint Acknowledgement and Resolution No. 106899TAPPRO-CSR-HOVI13 that ensures deliberation is sought as a step to conflict resolution. Sampling is conducted on Mr. Jamhuri‟s land claims to 10.89 HA in the GBSM area. Company resolved the conflict on 10 May 2013 by giving a compensation of Rp. 190 millions. Documentation has been provided with a map complete with coordinates and signed by both parties. Relating to grievance, it has been regulated in Company Regulation Article 49 concerning Settlement of Dispute and Article 50 Settlement of Grievance. Company improves Internal Memo of Suggestion Box by creating SOP concerning Employee Grievance Settlement No. TAP- PRHRD-GN063-0113-0, which is prepared by HR Operation Dept. Social Impact Dept., verified by HR Div.Head and Sustainability Dept. Head, and approved by Managing Dir. It comes into force as per 18012013. Mill is in the middle location of estate so that there is no community who stays on the ground around PKS, then there is no community who makes complaint to the factory. Surrounding community is made up of estate workers, Javanese, Batak, Minang and Mandailing. This heterogenic community does not have any complaint for the estates around the village. Compliance status: Compliance Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 52 of 88

6.4 Any negotiations concerning compensation for loss of legal or customary