We refer to recent social media reports on fire hotspots occurring in one of the concessions held by PT Globalindo Alam Perkasa (“PT GAP”), which is part of the Musim Mas group of companies.
Whilst PT GAP has not received any official letter from the relevant authority in Indonesia, we believe the media reports relate to fires that occurred in Kota Besi, an unplanted area within that part of the concession the physical control of which had been taken over from us in September 2025, and we believe it is currently being managed by an appointed third party contractor. We do not own, control, or have any contractual or business relationship with the appointed third-party contractor.
Whenever our operations observed fire hotspots in Kota Besi, we contacted and urged the appointed third-party contractor to take action to extinguish the fires. However, no action was taken by them. Therefore, even though the fires had broken out in the part of the concession that was outside of our control, we took immediate steps to suppress them as and where they flared up in each location. Since the Super El Niño started in July 2026, we have carried out voluntary firefighting initiatives in Kota Besi, including sending excavators to create road access to the hotspots and fire breaks to stop fires from spreading, mobilising our own fire brigade with firefighters to tackle ground-level fires, and deploying our helicopter to drop water bombs over various fire hotspots in the affected area. All fires that had broken out from time to time have been extinguished by our firefighting initiatives. We understand from our local operations that there is currently no fire within the affected area in Kota Besi.
As responsible corporate citizens, we have adopted a No Deforestation, No Peat, No Exploitation, and Zero Burning policies in our plantation concessions. We are committed to cooperating with the relevant authorities in Indonesia and undertake our best efforts to prevent fire hotspots from breaking out within the concession areas controlled by the Musim Mas group of companies.
