CEO Message

Dear Stakeholders,

Since the launch of our business in 2012, PT. BIA has strived to generate economic values based on the preservation of environmental and social values by gradually extending our support for Papua’s health care, economy, education, and infrastructure to build a sound and mutually beneficial partnership with the local community. In particular, we proactively declared an environmental and social policy for our palm business on March 1, 2020, which is also commonly referred to as the No Deforestation, No Peat, No Exploitation (NDPE) initiative, as a way to advance sustainable and socially responsible management and establish virtuous cycle of creating economic and social values.

According to our sustainability management philosophy, PT. BIA has implemented  action plans and will continue to do so to practice sustainable corporate citizenship as follows:

First, we will continue to undertake research and improvement activities to better utilize resources.

‘The scarcity of resources, combined with increasing population, has brought greater attention to the effective utilization of resources. PT. BIA consults with experts across relevant fields to develop farms in a way that efficiently utilizes the limited land and available resources. We have endeavored ceaselessly to further enhance the work process and invest in research and development in order to utilize resources in an eco-friendly manner.

Second, we will make an earnest effort to comply with Indonesian regulations and international standards to promote sound and sustainable palm oil management.

Our NDPE policy consists of environmental conservation and management, protection of and respect for human rights, and stakeholder engagement and communication. Furthermore, the NDPE policy includes tropical forest protection programs including but not limited to High Conservation Value area and High Carbon Stock area assessment and management to push forward with ecosystem conservation and ensure
co-prosperity with the local communities where we are based.

In accordance with applicable international standards, we consider the protection of local communities and labor rights as our top priority, and thus place a strong focus on safeguarding the rights of indigenous peoples to strengthen win-win programs intended to promote the economic self reliance of local commu-nities and provide stable job opportunities.

Third, we will build a strong cooperative relationship with all the stakeholders.

Since the early days of our business, PT. BIA has been communicating with and  listening to local residents and stakeholders who might potentially be affected by farm development.

Taking a step further from our already successful track records in building mutually beneficial partnerships, we have established the Stakeholder Partnership Committee between PT. BIA and all the related par-ties including indigenous peoples, local NGOs, and governments.

Looking ahead, PT. BIA vows to join hands in addressing environmental and social issues as a ‘global corporate citizen’ by fulfilling its social responsibility for local communities from the three aspects of Business, People, and Society.

We would like to invite you to join our journey toward sustainable management.

Thank you.

Hyun Chang Seop
President & CEO, PT. Bio Inti Agrindo

PROGRESS
2020.02.12PT BIA received complaints from the Bentala Pusaka Foundation regarding the demolition of a sacred site of Yawantop, the Indigenous peoples of Malind and Wambon Tekamerop. Allegedely, the Company had destroyed sacred site used to perform traditional rituals. A field verification was immediately carried out and it was discovered that the area in question was a category HCV 4 area which according to the testimony of the Basik-Basik clan, was a natural well of 0.2 ha
2020.02.20Public consultations related to the clarification and rehabilitation of high conservation value areas have been carried out with LMA, indigenous communties, and local NGOs with the consultations also being attended by local governments bringing the total attendance to 66 people.
2020.03..12A traditional ceremony has been held between the clans involved, the company and also the local community. Followed by rehabilitation (replanting) with the plants requested by the clan on April 4, 2020.
2020.04.04At present, the Case has been listed as Resolved and continues to be monitored by the HCV team who also collaborates with the VMT (Village Monitoring Team) that has been formed comprised of members of the indigenous community itself.
PROGRESS
2019.12.19Four civic groups (KTNC Watch, PUSAKA, SKP-KAMe and WALHI Papua) submitted a complaint to KNCP regarding the development and production of palm oil.
2020.2.12The company submitted their response to the complaint
2020.3.9Complainant submitted an additional statement
2020.3.17KNCP Initial Assessment results and mediation process is announced
2020.8.201st Mediation Committee meeting (explained implementation of NDPE policy, etc.)
2020.9.18Initial assessment completed
2020.12.22nd Mediation Committee meeting (provided further explanations on implementation of NDPE policy and other inquiries)
2020.12.16Parties agreed to further mediation procedures, extension of deadline
2021.6.233rd Mediation Committee meeting → an agreement was not reached
2021,11Iin response to KNCP request, the company submits its opinion on the KNCP Final Statement draft
2022.1.18KNCP Final Statement is announced
The KNCP published its Final Statement on January 13, 2022. The statement indicated that KNCP did not accept the complainants' claim, but recommended that POSCO International should continue with its current efforts to implement active environmental and social policies and communicate with stakeholders in the future. In response, POSCO International submitted a performance report to KNCP on July 29, 2022, detailing the progress of their ESG activities, including the implementation of the NDPE policy in accordance with the recommendations.