Investor Presentaiton

ADVANCING ENVIRONMENTAL SUSTAINABILITY 22 Through a variety of initiatives, projects, and policy forums, KEMITRAAN continues its long-standing work in 2021 to advance environmental governance changes and the economic empowerment of marginal communities that depend on the forest. In part, as a reflection of this experience KEMITRAAN re-secured its accreditation to two key international environmental funding programs, namely the Green Climate Fund and the Adaptation Fund, the first Indonesian institution to do so. The Glasgow Climate Pact and the Paris Rulebook were two of the more notable outcomes of the COP summit held in Glasgow in late 2021. There were also new steps forward focused on reducing emissions of methane and the agreement to transition towards zero emissions | KEMITRAAN Annual Report 2021 automobiles. This latter development will be very important in further boosting Indonesia's efforts to promote the manufacturing and utilization of electric vehicles. The commitment by 137 nations, including Indonesia, to stop and reverse forest loss and land degradation by 2030 was of special relevance to KEMITRAAN's activities in the forestry and related sectors. As well as pledges from investment firms to stop funding ventures connected to deforestation. All these steps, while positive, nonetheless do not represent sufficient results to ensure global warming can be contained to 1.5 degrees Celsius above pre-industrial levels. Much more work must be undertaken to raise the impact of agreements. Highlights 1 3 LO KEMITRAAN facilitated the creation of Generasi Nol Emisi (Zero Emissions Generation) on Instagram. This is a digital activist youth network to reduce greenhouse gas emission through simple everyday actions. Up to December 2021, the account has gained 1061 followers. 6 2 The Social Forestry Business Community established through the Saddang Watershed Project in South Sulawesi funded by the Adaptation Fund has begun harvesting kemiri for export to Hong Kong. Village enterprises supported through the BP-Bintuni project have also developed to the point of undertaking commercial activities based on several commodities. 4 New cluster system in 3 districts (Ogan Komering Ilir in South Sumatra, Pelalawan in Riau, Pulang Pisau in Central Kalimantan) that integrates collaboration between local authorities and communities is showing promise as an approach to reduce the incidence and extent of damage caused by forest fires in their regions. MoU signing with the Governor of South Sulawesi and the Consortium Kapabel regarding Climate Change Adaptation and Mitigation Support to the province. 6 Implemented institutional design process in 3 (three) Peat Hydrological Units (PHUS), aimed at reaching consensus on peatland management with and among stakeholders and mapping traditional governance by coordinating through Desa Peduli Gambut (Care for Peat Village to support the Peatlands Restoration Agency (BRG). Worked with nine separate communities including two customary communities to prepare their claims to secure social forestry permits in three provinces, namely Jambi, West Kalimantan and South Sulawesi. The proposed permit areas cover 3,880 hectares. KEMITRAAN Annual Report 2021 | 23

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