Certificate No. SPO537874

1. Certificate No. SPO537874 Certificate No. ID08/1122 Certificate No. GB08/75238 OVERVIEW OF SMALLHOLDERS PT.HINDOLI TOWARD RSPO CERTIFICATIONSUNGAI LILIN, SOUTH SUMATRAINDONESIA November 2009

2. LOCATION OF HINDOLI INTI & PLASMA Hindoli PROV. JAMBI New Development Area MUKUT - Banyuasin PROV. BA-BEL Sungai Lilin Palembang PROV. SUMATERA SELATAN PROV. BENGKULU PROV.LAMPUNG

3. General Lay out of HINDOLI INTI, Plasma and New Development Area Mukut To Jambi Simpang Bentayan Jarak via darat GO s.d. Sp. Bentayan : 47 km Sp. Bentayan s.d. Trans Mukut : 99 km Trans Mukut s.d. Lokasi : 3 km TOTAL : 149 km GO s.d. Jembatan PTP : 12 km Jembatan PTP s.d. Lokasi : 39 km TOTAL : 51 km Lokasi – Jembatan : 39 km Jembatan PTP – Jalan Lintas Timur : 16 km Jalan Lintas Timur – MTD : 14 km TOTAL : 69 km Ds. Penuguan Trans Mukut Jembatan PTP Ds. Mukut Jarak via sungai GO s.d. Ds. Mukut : 46 km GO s.d. Muara P7 : 52 km GO s.d. Muara P8 : 56 km GO s.d. Ds. Penuguan : 58 km Ds. Mukut – Lokasi : 2.3 km Muara P7 – Lokasi : 1.7 km Muara P8 – Lokasi : 1.7 km Sungai Lilin GO To Palembang

4. BUSSINESS PROFILE OF PT.HINDOLI • PT Hindoli is an oil palm plantation company under Cargill Tropical Oils Asia. • A joint venture company CTP Holdings Pte Ltd was formed in 2005 and now holds Cargill investments in oil palm plantations in Indonesia and Papua New Guinea. • PT Hindoli owns and manages 10,100 hectares of mature palm plantings (Inti). • And under a government regulated trans-migration scheme, we assist in the management of 17,000 hectares of palm plantings (Plasma; Smallholder) that belong to 8,500 farmers. • Mukut expansion project is underway consisting of 9,900 ha Inti and 2,400 ha Plasma. • The operation includes 100 and 60-mton/hr crushing facilities.

5. Process Flow of Plasma vs INTI INTI PLASMA Executed by Government LAND ACQUISITION LAND ALLOCATION LAND PREPARATION LAND PREPARATION Executed by Inti Company (Hindoli) PLANTING PLANTING Immature 30 – 36 mths UPKEEP UPKEEP Conversion at 48 months PALMS MATURE PRODUCTION UPKEEP / HARVESTING UPKEEP / HARVESTING Executed by Farmers TRANSPORT FFB TRANSPORT FFB FFB (Fresh Fruit Bunch) CPO MILL PROCESSING 22.6% of FFB 5.0% of FFB Shells EFB/DC CPO Kernels Fiber ESTATES BOILER BOILER CUSTOMER CUSTOMER

6. STRUCTURE OF HINDOLI SMALLHOLDER SCHEME

7. ORGANIZATIONAL STRUCTURE OF COOPERATIVE (KUD)

8. Database of Hindoli Smallholders Cooperatives

9. Plasma hectarages base on Planted Year Plasma’s lands completed payback to Bank

10. FFB Production of Plasma Farmer’s

11. Plasma Farmers PT.Hindoli Achievement Plasma Farmers PT.Hindoli is up to date the best scheme in the South Sumatra district, acknowledged by Agriculture Department Province having Inti-Plasma scheme. The success of Plasma Farmers PT.Hindoli recognition base on: • Receive awards from Local Government Muba District, Province and also National, eg: • “INDEPENDENT” Status • Best Cooperative Award from President RI • The Best Managed Cooperative from Indonesia Minister of Cooperative

12. Hindoli’s KUD receive a trust and guarantee from government to get bank’s loan. • Appointed as a counterpart training place for agriculture’s company in south Sumatra and outside south Sumatra. • Has been twice appointed by Director of Agriculture Jakarta as a training place for government officer who manage agriculture revitalization program for the whole Indonesia and be a best sample for successful of Inti-Plasma Scheme development program. • Musi Banyuasin District is awarded as The Best Supporter of Cooperative buildings where the key players are Hindoli Smallholder Cooperatives.

13. Plasma - Hindoli in Pictures Before Now

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23. Sungai Lilin Now

24. Plasma Farmers Hindoli Toward RSPO Certification • Introduce and socialize RSPO Principle and Criteria (P&C) to All Farmer Development Team, & All Farmers on Dec 2008. • Gap Analysis – Internal Audit performed in all Plasma Cooperatives (KUD) by using RSPO NIWG on Jan 2009. • Develop corrective action plan, PIC and Deadline, at all KUD as feedback of Gap Analysis Audit.

25. Monitor & update the progress Corrective Action Plan Gap Analysis Audit regularly. • Jul 2009, Conducted RSPO Trial Audit by BSI • Develop Corrective Action Plan to address all findings during RSPO Trial Audit • Smallholder RSPO Certification Assessmentt by November 2009 as soon as RSPO Smallholder NI approved

26. 1. Commitment to Transparency Data documentation and filing system in KUD Office

27. 2. Compliance with applicable laws and regulations Interview with Land owner for evidence of land-use rights should not overlap with protected areas, Plasmas’ kavling numbering system

28. 3. Commitment to long-term economic and financial viability. KUD Organizational Structure Smallholders’ organization involved in the calculation of debts and repayments, relevant agreement with bank, loan mechanism, etc.

29. 4. Use of appropriate best practices by growers and millers. Spraying only apply in harvesting path and circle FFB Collection

30. Sample taken in farmers’ plantation for leaf sampling analysis. FD Team check the Farmers FFB quality at Mill loading ramp,

31. FFB Quality Training. Training of Safe harvesting technique

32. Inspection conducted in KUD chemical storages during RSPO trial audit

33. Found some chemical spillages on floor of KUD storage during RSPO trial audit

34. Still found blanket spraying in farmers’ land Some of farmers do manual weeding without spraying

35. During RSPO trial audit, Found pesticide in farmer’s kitchen Nap sack sprayer kept in the small store belong to individual farmer

36. Separation between organic and inorganic wastes has been applied in Plasma areas

37. Interview with land owner and KUD staff to know level of their understanding and knowledge about agriculture best practices.

38. Apply palm frond “T box stacking” for soil erosion prevention

39. Gupon and Barn Owl has been introduced in plasma farmers.

40. Beneficial plant in smallholder areas.

41. 5. Environmental responsibility and conservation of natural resources and biodiversity. Verification done to the land owners related to environmental aspect impact and protected species familiarization Signboard “No hunting of Protected species has been posted in Smallholder areas

42. Socialization of protected species those possible to be found in Smallholder areas. Poster - No Hunting on Protected Species

43. 6. Responsible consideration of employees and of individuals and communities affected by growers and mills. Coordination meeting between Inti - Plasma

44. KUD always get involved actively in Indonesia National Ceremony as subscription, Coordination meeting between Inti - Plasma

45. KUD representative always get involved on fix price meeting in Agriculture Dept. Office PPE Poster in Cooperative Offices

46. Governor and Bupati when officially dedicate a cow farm in Plasma B1 on 28 Oct 09 Kindergarten Building was built as KUD’s CSR Cow farm belong to farmers,

47. Do coordination with government doctor to monitor the level of health in Plasma Communities, Small market belong to KUD to increase KUD’s members welfare.

48. 7. Responsible development of new plantings • Next – replanting development project in Plasma Farmer will be coordinated between Inti – Plasma. • Replanting Fund has been collected by KUD to date = 50 Billion Rupiah. • Plasma scheme understands the environmental and social aspect in their plantation as per described in PT.Hindoli AMDAL documents. Copies of AMDAL (Environmental Impact Assessment) Docs and RKL/RPL report has been kept in KUD. • Plasma scheme consults with PT.Hindoli for any potential plantation’s environmental impact. (dust, soil erosion, water pollution, etc.)

49. 8. Commitment to continuous improvement in key areas of activity. Plasma farmers do monitoring and re-evaluate all their activities and keep on developing the strategy for continual improvement related to gain new information/techniques on the management of oil palm plantations.