Sustainability has always been a fundamental part of UMB’s business and guiding principle in our decision making and continual improvement process. Over the years, UMB has undertaken various efforts to improve sustainability initiatives, including certification of the nationally mandated standards such as the Malaysian Sustainable Palm Oil (MSPO) and the Indonesian Sustainable Palm Oil (ISPO), in the countries where we operate. To strengthen and assure stakeholders of our sustainability commitments we have updated our Sustainable Palm Oil Policy. UMB is committed to implementing this policy in stages.

United Malacca Berhad (UMB) wishes to clarify questions raised by stakeholders as well as NGOs in the past few weeks.

WRL, a private limited liability company incorporated in Indonesia, has obtained a business licence “Izin Usaha Pemanfaatan Hasil Hutan Kayu Pada Hutan Tanaman Industri” over land area measuring approximately 59,920 hectares in the Regencies of Tojo Una-Una and Morowali, Province of Central Sulawesi, Indonesia (“WRL Land”) from the Minister of Forestry, Indonesia in June 2014. In August 2018, UMB completed the acquisition of a 60% effective equity stake in WRL for a total consideration of USD 7.2 million, with the remaining 40% equity held by PT Sinar Kemilau Cemerlang. UMB started land clearing activities on WRL Land in 2019. The development of this area is also aimed at providing additional jobs and development to the area. Proper Master plans for the development of this sites have already been duly approved by the relevant authorities.

As a concerned and responsible plantation company, UMB is committed to complying with sustainable environmental practices. UMB had conducted an assessment on the soil and terrain and environmental assessment report (AMDAL) was completed and approved by the authorities in Indonesia. To provide additional assurance to all stakeholders, UMB has decided to stop all land clearing work in Sulawesi with immediate effect until environmental concerns raised by stakeholders and NGOs are addressed. Throughout this process, UMB will engage with the Joint Venture Partner, PT Sinar Kemilau Cemerlang to discuss the next course of action.

On other note, UMB will be working with independent third-party consultant registered with HCVRN to carry out a joint assessment on HCV-HCSA-SIA to respond to the concerns raised to UMB about the land development on its PT Lifere Agro Kapuas plantation in Central Kalimantan.

All the peat areas identified had been excised out by the authorities as per the moratorium maps issued.

United Malacca Berhad (UMB), being a good corporate citizen, recognises the importance on matters related to the sustainable development of all our plantations.

All our Malaysian estates and mills are certified with the Malaysian Sustainable Palm Oil (MSPO) certification and our Indonesian estates are also Indonesia Sustainable Palm Oil (ISPO) certified.

We endeavour to ensure all our stakeholders to our business, operate in the most ethical manner, ensuring that our environment policy emphasizing Planet, People and Profit are always at the forefront of our decision making.

We do not plant on areas which are deemed improper and we maintain that we do not plant on any lands categorized as peat. We work within the confines of our High Conservation Value (HCV) studies and Environmental Impact Assessments (EIA) issued by the relevant authorities. All developments thus far – conform to all the Laws of the Land.

In PT Lifere Agro Kapuas (LAK), our entire Izin Lokasi does not have any peat areas and this is clearly stated from the map issued by the Authorities. (Moratorium set forth by the Government of Indonesia)

It’s in our SOP that any land slated for development will go through our Geographic Information System (GIS) department, where all areas are overlaid against the master map to ascertain that they are within our legal boundary and shows how it lines up with HCV areas.

It is our commitment to assist in the development of the local communities where we are based through transparent engagement with them and allowing them to grow with us. We provide CSR activities in the areas of health, education and infrastructure.

Site management is aware on the policy of not planting in areas even suspected of being peat and would only act in these areas once the soils have been inspected.

We remain undaunted in ensuring protection of our environment, the safety and health of all our employees and the surrounding communities.