OIL PALM

Our business comprises the integrated cultivation and harvesting of fresh fruit bunches from our oil palm plantations, milling them into crude palm oil, palm kernel and palm kernel oil, and selling the oils. ANJ owns six oil palm producing plantations:

• North Sumatra I Plantation

A 9,988 hectares oil palm plantation in Binanga, North Sumatra, operated by our subsidiary PT Austindo Nusantara Jaya Agri (ANJA).

• North Sumatra II Plantation

A 9,412 hectare oil palm plantation in Padang Sidempuan, North Sumatra, operated by our subsidiary PT Austindo Nusantara Jaya Agri Siais (ANJAS).

• Belitung Island Plantation

A 17,360 hectare oil palm plantation on Belitung Island in Bangka Belitung, operated by our subsidiary PT Sahabat Mewah dan Makmur (SMM).

• West Kalimantan Plantation

A 13,879 hectare oil palm plantation in Ketapang, West Kalimantan, operated by our subsidiary PT Kayung Agro Lestari (KAL).

• West Papua Plantation

A 54,704 hectare oil palm plantation in South Sorong and Maybrat, West Papua, operated by our subsidiaries PT Permata Putera Mandiri (PPM) and PT Putera Manunggal Perkasa (PMP).

These are all plantations with mature oil palms, served by an on-site processing mill. ANJ is a member of the Roundtable on Sustainable Palm Oil (RSPO) and
Indonesian Sustainable Palm Oil (ISPO). All of our palm producing plantations are RSPO and ISPO certified.

We are also planting areas of our landbanks in South Sumatra and West Papua:

• South Sumatra Landbank

This landbank covers 12,800 hectares in Empat Lawang, South Sumatra, and is operated by our subsidiary PT Galempa Sejahtera Bersama (GSB). We commenced planting parts of the landbank in 2013.

• West Papua Landbank

This landbank covers 36,506 hectares in Maybrat, West Papua, operated by ANJT. The planting for ANJT landbank has been suspended as of 2018 due to pending approval of the New Planting Procedures from RSPO.

Our development plantations are managed in compliance with RSPO and ISPO standards and we will apply for RSPO and ISPO certification when they begin operating
commercially.

As of December 31, 2021, the Company had a total landbank of more than 150,000 hectares. At that time, approximately one-third of this area or 54,630 hectares, was planted. By the end of 2021 a total of 4,588 hectares of the planted area was allocated to community smallholders under the Indonesian government’s Plasma Program.

Mature oil palms cover 43,962 hectares or 80%, of the planted area, while 10,668 hectares or 20%, comprises immature oil palms. The average age of our nucleus oil palms across all the Group's plantations, as of December 31, 2021, was 13 years.

Of the entire landbank, approximately 22,000 hectares are deemed plantable but are not yet planted (nucleus or plasma). We have secured or are in the process of securing, the necessary rights and permits to develop this land as oil palm plantation.

The remainder of our landbank is either not plantable due to unsuitable topography or is used for fulfilling various voluntary environmental and social commitments, including biodiversity conservation, riverine buffers and the preservation of historical and/or culturally significant sites. The remaining portion of our landbank is designated for infrastructure, such as roads and housing and amenities for our employees.

As stated in our Sustainability Policy, ANJ has made a commitment to maintain areas of forest with High Conservation Value (HCV) and/or High Carbon Stock (HCS) and to refrain from developing peat or wetlands.