10 August 2010

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This presentation has been prepared by PT SMART Tbk (“SMART” or “Company”) for informational purposes.

This presentation contains statements, representation which may or may not be derived from third party reports, quotes from sources other than from within the Company, projections and forward looking statements that reflect the Company’s current views with respect to future events and performances.

All statements and views contained in this presentation are based on current circumstances, practices and assumptions which may change over time, third party reports commissioned by SMART specifically for the purposes of this presentation, third party reports that are readily available and published in the public domain and specific third party reports that have been addressed to the Company and which contents are or is assumed to be in the public domain.

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Opinions expressed herein reflect the judgement of the Company, or the belief by the Company on the reports produced by third parties quoted in this presentation as at the date of this presentation and may be subject to change without notice if the Company becomes aware of any information, whether specific to the Company, its business, or in general, which may have a material impact on any such opinions.

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1. Introduction 2. Summary of Greenpeace claims 3. Summary of findings 4. Key points 5. Findings 6. Conclusion

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THE INDEPENDENT VERIFICATION TEAM� Appointed in April 2010 after consulting Unilever� CUC, BSI and assisted by Bogor Agricultural Institute experts

Prof. Dr. Bambang Hero Saharjo and Dr. Ir. H. Yanto Santosa

SCOPE� To verify the claims in the Greenpeace reports:

- Burning Up Borneo- Illegal Forest Clearance and RSPO Greenwash: Case Studies of

Sinar Mas- Caught Red Handed: How Unilever’s Use Of Palm Oil Is Having A

Devastating Impact On Rainforest, The Climate And Orang-Utans

- New Evidence: Sinar Mas – Rainforest and Peatland Destruction

- Sinar Mas Continues Rainforest Destruction

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SCOPE� To provide accurate, complete and contextual information to

assess Greenpeace claim, and identify gaps, if any� To verify claims against:

– Prevailing laws and regulation in Republic of Indonesia– The Indonesian national interpretation of Roundtable on

Sustainable Palm Oil (RSPO) principles and criteria– SMART’s standard operating procedures

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� Covered 11 concession areas� 182,528 ha, over 40% of GAR total planted area of 430,200 ha

� Field work� Concessions

Central17 May – 22 May

- PT BAP- PT BAT- PT LUJ- PT MKA- PT SKU- PT TN

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West31 May – 8 Jun

- PT ALM- PT KPC- PT KGP- PT PGM- PT PIP

1. Destroying primary forests, orang-utan habitats and HCV areas2. Clearing and planting on peat land 3. Burning forests4. Clearing land without permits 5. Causing social conflict6. Engaging in selective RSPO membership

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1. Degradation process of primary forest areas that were habitats for Borneo orang-utan happened before SMART started the operations of the concessions. All 11 concessions are on degraded land.

2. Clearing peat land is not as extensively as claimed. 1.8% (3,210ha) of peat (>3m deep) cultivated on 182,528 ha of total concessions

3. Could not find evidence of burning in land clearing and preparation

4. In compliance with necessary permits, although in Central Kalimantan, the environmental impact assessment or AMDAL process completed after Plantation Business Permit

5. Small holders and wider community perceive positive impact from plantations

6. GAR not RSPO member, only SMART and PT Ivo Mas Tunggal are members

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� Greenpeace claims are either exaggerated or wrong

� Not responsible for destruction of orang-utan habitats

� Not responsible for deforestation of primary forests

� Not responsible for burning� Operates responsibly and

within the laws� Vital player and part of the

solution

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Findings

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THE FINDINGS:� All concessions consist of degraded land� Orang-utan’s habitat already affected by earlier activities

such as logging, slash and burn economy

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OUR STAND:� We believe in protecting and conserving

the orang-utan as a vital part of Indonesia’s and the world’s heritage

� 1,400 ha sanctuary in Central Kalimantan� Active role in the National Orang-Utan

Working Group� Committed to conserve HCV

THE FINDINGS:� Not responsible for the deforestation of primary forest� All plantations are confirmed to be degraded land

OUR STAND:� Complies with laws and regulations � Complies with principles and criteria of RSPO� Committed not to plant on primary forests, peat land and

HCV area

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Deforestation of primary forest: Before SMART started operations

Source: UNFCC Secretariat 2007

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51.5 million square hectares (28%) of Indonesia’s total land mass of 187.8 is classified as protected forest and conserved area

NO1119.9Natural/conservation forest

NO 1731.6Protected forest

Types of land and forest Hectares in square millions

% of total land mass

SMART development

Forestry Area

Permanent production forest 36.7 19 NO

Convertible forest 22.8 12 NO

Limited production forest 22.5 12 NO

Hunting parks 0.2 Negligible NO

Total 133.7 71

Non-Forestry Area

Plantation 19.9 11 YES

Agriculture 19.2 10 NO

Others 15.0 8 NO

Total 54.1 29

Grand total 187.8 100������������ ������������������� ������ ����������������������������

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Indonesia: Land and forest classification

Source: FAO 2009, MOA 2009

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* Including coffee, cocoa, sugar, pepper and tobacco ** Including peanuts, sweet potatoes and cassava

Plantation Crops

Farm Crops

Indonesia: Agriculture and plantation land use by key crops

Palm Oil : More sustainable

Soybean41%

Rapeseed13%

Sunflowerseed

10%

Cottonseed13%

Groundnuts9%

Coconut4%

Castorseed1%Sesameseed

3%Linseed

1% Palm Oil5%

CNO2%

Soyoil22%

Rape Oil13%

Sun Oil8%

Others24% CPO & PKO

31%

Palm oil uses only 5% of global oilseed land use

Palm products supply 31% of global edible oil

Source: Oil World Annual 2010

Data per 2009

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THE FINDINGS:� HCV is dynamic and ambiguous, with varying results� HCV assessment is a daunting task to identify and conserve HCV� Cleared 37,698 ha or 21.0% of the concession areas before HCV

assessment

OUR STAND:� We will not develop HCV land� Working with stakeholders to implement the necessary remedial

action

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HCV Assessment: In transition

� Strengthened standard operating procedures - no longer develop land without HCV assessments

� HCV identified in 20,933 ha (11.5%) and are conserved in Central and West Kalimantan

THE FINDINGS:� 1.8% of concessions developed on peat of >3m deep

OUR STAND:� Serious action against non-compliance with our standard

operating procedures� Reinstated deep peat and suspended the plantation managers

responsible

Description Central West Total

Deep peat (ha) 1,880 1,330 3,210

Total concession (ha) 90,278 92,250 182,528

Percentage (%) 2.1 1.4 1.8

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Clearing and planting on peat land: Not extensively as depicted

THE FINDINGS:� No evidence of burning in land clearing and preparation� Hotspots likely to have been caused by slash-and-burn

practices of the local community

OUR STAND:� Absolutely against burning, established policy in 1997� Prompt action towards illegal fires� Routine fire patrols during the dry season� Regular fire fighting training for staff, dedicated fire fighting

squads

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THE FINDINGS:� Environmental Impact Assessment (EIA) or AMDAL for all 5

concessions in West Kalimantan in order� In Central Kalimantan, AMDAL process completed after land

clearing for all 6 concessions which is not in compliance

OUR STAND:� SMART pursues compliance� SMART obtained the in-principle business permits and

proceeded to clear the land while AMDAL is being processed� SMART has subsequently obtained AMDAL for all the 6 central

Kalimantan concessions� Going forward, SMART ensures that AMDAL is obtained

before land clearing as in West Kalimantan

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Land development permits : Pursuing compliance

THE FINDINGS:� No evidence of negative relations with local landholders - including

those that did not sell land to SMART� Evidence that the plantations improved livelihoods� SMART documentation of land transaction process should be

improved� Relations with indigenous people were not addressed

OUR STAND:� We believe in treating local landowners and communities fairly� Many local landowners become small holders working in

partnership with the plantation� We estimate that their income can range between US$9 and

US$12 per day� We provide 129 schools for 21,800 students and 2,455 university

scholarships (including through the Eka Tjipta Foundation)

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THE FINDINGS:� SMART and PT Ivo Mas Tunggal are members � They are in the process of RSPO certification

OUR STAND:� To obtain RSPO certification for all of GAR’s existing palm oil

operating units by 2015� GAR to become RSPO member

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� Greenpeace claims are either exaggerated or wrong

� Not responsible for destruction of orang-utan habitats

� Not responsible for deforestation of primary forests

� Not responsible for burning� Operates responsibly and

within the laws� Vital player and part of the

solution

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