Independent Legal Review Confirms PT Lonsum in Compliance with Indonesian

Labour Laws

Dear Valued Stakeholders,

On 02 November 2018, Roundtable on Sustainable Palm Oil ("RSPO") issued its decision related to the result of the verification audit done ("RSPO Report") in June 2018 in view of complaint filed by, among others, Rainforest Action Network ("RAN") against PT PP London Sumatra Indonesia Tbk ("Lonsum"). The RSPO based its decision on the 23 findings highlighted in the RSPO Report, 11 of which specifically alleged that Lonsum violated Indonesian labour laws. Lonsum provided documentary evidence to both the RSPO auditor and the RSPO Complaints Panel to confirm our compliance with Indonesian Labour Laws, however both the RSPO auditor and RSPO Complaints Panel refused to accept our evidence, and further denied us the opportunity to meet the Complaints Panel to present our evidence.

With respect to RSPO' decision, Indofood Agri Resources Ltd. (the parent company of Lonsum) engaged Hiswara Bunjamin & Tandjung (in association with Herbert Smith Freehills - "HBT") to conduct an independent legal review related to the allegations. Based on their review, HBT

concluded that the allegations were unfounded and that Lonsum fully complies with labour

laws of the Government of Indonesia.

Please see attached full report for your reference.

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LONSUM - PT PP London Sumatra Indonesia Tbk published this content on 16 September 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 September 2019 03:06:01 UTC