The Company is aware of palm oil main use as food ingredient, and therefore the Company applies food safety standards in production process at each plantation. Several issues related to food safety that have always been the Company's concerns, include:

• Agrochemical content that may contaminate end product for food;
• Chemical substance used during planting and maintenanceof oil palm, including the type, frequency of usage and  dose;
• Microorganism contamination during processing at palm oil plants;
• Content of heavy metal, polyaromatic hydrocarbon (PAH) and dioxine.

The Company controls contaminant by applying Hazard Analysis Critical Control Point (HACCP) System. With this system, the hazard control has been conducted since raw material were processed until the products are received by consumers safely and edible. [PR1]

HACCP is an effective tool to control food safety with seven principles and 12 steps of examination stages. The HACCP application in Indonesia refers to SNI 01-4852-1998, which adopts standard of Codex CAC/RCP 1 ' 1969 Revision 3 of 1997. The Company began the application of HACCP system in August 2005, and has been affected since 2006 at PT Sari Aditya Loka, Jambi. Consistent application of HACCP has created an excellent working culture, so that the employees perform better, cleaner, healthier and more disciplined according to standard operating procedure (SOP). Thus the products will be prevented from physical, chemical and biological contaminants to be safely used as food ingredient or raw material for food. Since then, the mechanism has been applied at all subsidiaries and is followed by certification.

The certification of HACCP shows that production process, supervision and production situations have met food safety standards. Therefore, uring the reporting period, the Company did not receive any complaints, grievances or reports related to allegation of palm oil products that are unsafe for consumption. [PR2][PR5]

COMPLIANCE

The Company always complies with applicable laws and regulations. The Company has regular customers and therefore marketing activities are irrelevant with the Company's condition. The Company's commitment to always comply with regulations has resulted in the absence of financial fine penalty or other legal sanctions due to allegation of violation, either related to product, marketing or business competition behavior. [SO8][PR6][PR7][PR9]