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Golden Agri-Resources echoes calls for consolidated industry approach to addressing labour challenges in palm oil sector

Posted: Nov 30, 2016 3 minute read GAR 0 Likes

Jakarta, 30 November 2016 – Golden Agri-Resources (GAR) recognises and shares the concerns
regarding labour standards within the palm oil sector raised in the Amnesty International report and
supports calls by Wilmar, the RSPO and others for collective action to address poor labour practices
within the industry.

Recognising, respecting and strengthening the rights of workers is the third of four pillars within the
GAR Social and Environmental Policy which was reviewed and expanded in 2015.

The commitment to worker rights includes contract, temporary, and casual workers of all genders, it
builds on existing GAR human resources policies and standard operating procedures (SOPs) and
draws on both Indonesian labour laws and international best practices, e.g. the International Labour
Organisation’s Declaration on Fundamental Principles and Rights at Work. Input was also gathered
from civil society organisations specialising in labour. The GSEP applies not only to our own
operations, but to our subsidiaries, investments and third party suppliers as well.

GAR recognises that there are sector-wide challenges within the palm oil industry in relation to labour
and believes the renewed focus on this aspect of our industry should be accompanied by a collective
effort to address poor practices. We are participating in a joint study with Wilmar, being conducted byBusiness for Social Responsibility (BSR) – a global non-profit organisation that works to build a just
and sustainable world by developing sustainable business strategies and solutions – to conduct a
review of current labour practices in the palm oil sector in Indonesia. The results of which we hope to
publish in early 2017.

With the assistance of our implementing partner TFT we have conducted No Exploitation site visits of
our own concessions and are using their Aggregator Refinery Transformation (ART) approach to
identify common issues and challenges for our suppliers within a refinery supply shed. Our Supplier
Support Team is developing tools, guidelines, training and workshops to support suppliers in
implementing best practices in environmental, social and labour areas.

Agus Purnomo, Managing Director Sustainability, said: “People are the driving force behind the palm
oil industry and our most valuable asset. It is important for the future of the industry that key
stakeholders come together, as we have done in addressing deforestation questions, to address the
issues highlighted by Amnesty and others. GAR would welcome multi-stakeholder collaboration on
this issue.”

Further information regarding GAR’s efforts on labour can be found in pages 50-54 of our latest
sustainability report, SR2015. Agus Purnomo presented on the challenges in securing a sustainable
plantation workforce at the recent RSPO RT14, highlights of which are reported here.

About Golden Agri-Resources Ltd (GAR)
GAR is one of the leading palm oil plantation companies with a total planted area of 483,075 hectares
(including smallholders) as at 30 June 2016, located in Indonesia. It has integrated operations
focused on the production of palm-based edible oil and fat.

Founded in 1996 GAR was listed on the Singapore Exchange in 1999 with a market capitalisation of
US$3.3 billion as at 30 June 2016. Flambo International Limited, an investment company, is currently
GAR’s largest shareholder, with a 50.35 percent stake. GAR has several subsidiaries, including PT
SMART Tbk which was listed on the Indonesia Stock Exchange in 1992.

GAR is focused on sustainable palm oil production. In Indonesia, its primary activities include
cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil (CPO)
and palm kernel; refining CPO into value-added products such as cooking oil, margarine and
shortening; as well as merchandising palm products throughout the world. It also has operations in
China and India including a deep-sea port, oilseeds crushing plants, production capabilities for refined
edible oil products as well as other food products such as noodles.

Media Contact:
Archana Shah
[email protected]
(+65) 9182 4004

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