Korindo Responds to Misinterpretation on No Deforestation Commitments

Jakarta, 15 April 2026 – Korindo Group wishes to correct the characterisation that it has “backtracked” on deforestation commitments. The observation reflects a misreading of a structural corporate change, not a retreat from policy.

1. Separation of Palm Oil Operations
   Korindo Group no longer operates in the palm oil sector. All palm oil operations were formally separated from Korindo Group and are now managed independently as TSE Group (www.tsegroup.co.id), with the transition completed in October 2022.[1] The absence of palm oil commitments in Korindo Group’s current reporting is a direct consequence of this corporate separation — not a withdrawal of commitment.

2. No-Deforestation Policy and Monitoring
   Korindo Group’s no-deforestation commitment has been in place since February 2017, when all natural forest clearance was formally suspended across our operations. This commitment encompasses our policies of no peat development, no burning, no exploitation, and no deforestation — and remains in effect today. Deforestation monitoring is conducted on an ongoing basis through regular satellite imagery analysis.

3. EUDR Compliance
   Korindo Group is committed to ensuring that our entire timber supply chain is free from deforestation. We continue to strengthen a procurement system that is transparent, accountable, and aligned with global regulations, including the EUDR, as part of our commitment to environmental sustainability. Following a concern raised in July 2025 regarding a third-party timber supplier, Korindo acted swiftly in accordance with our sustainability policy. This case demonstrates that Korindo’s supply chain oversight is sufficiently robust to identify and address non-compliance — and that when gaps are found, we act on them.

Signed,
Management of Korindo Group

[1] The separated entities include PT Tunas Sawa Erma, PT Berkat Cipta Abadi, and PT Dongin Prabhawa (effective April 1, 2021), and PT Gelora Mandiri Membangun and PT Papua Agro Lestari (effective October 1, 2022).