Forest Preservation

Protecting Forests, Nurturing Biodiversity

Forest Preservation highlights our dedication to protecting biodiversity and conserving vital ecosystems. This pillar focuses on maintaining a deforestation-free supply chain, safeguarding critical habitats, and promoting sustainable land use. By engaging in proactive conservation efforts and complying with global standards such as the NDPE policy, we aim to ensure that our operations harmonise with nature while supporting environmental integrity.

Community Engagement

Supporting local communities through Awareness rising, patrols, and conservation projects eg, Food security in degradated land outside HGU.

Dedicated Conservation Team

REA Kon, founded in 2008, leads efforts in biodiversity management and forest restoration.

Conservation Reserves

17,990 hectares (24% of REA’s land) are protected as High Conservation Value (HCV) areas.

Conservation Management

Biodiversity Management

Deforestation Monitoring

Conservation Management

REA operates in Borneo, one of the world’s most biodiverse regions, providing vital ecosystem services such as clean water, climate regulation, and nutrient cycling. Recognising the potential environmental challenges of plantation development, REA ensures that all operations, from land clearing to delivery, adhere to conservation principles. These efforts are aimed at mitigating negative effects while actively restoring and enhancing the natural biodiversity of the landscapes, thereby aligning business sustainability with environmental priorities stewardship.

REA commits to no conversion of any natural ecosystem to another land use including no significant changes to the species composition, structure or function of any natural ecosystem, in accordance with our published Conservation Policy.

This policy applies to the operations of any company within the REA group and all of its employees including all third party contractors operating within REA’s plantations, as well as all associated and independent smallholders and all suppliers.

Key Initiatives

Restoration Initiatives

REA Kon continues to expand its rewilding and enrichment programmes to enhance biodiversity, support carbon sequestration, and restore degraded landscapes. In 2024, REA Kon distributed 1,542 seedlings to internal stakeholders and surrounding communities and carried out the following:

4,040 seedlings were planted to restore 10.1 hectares
508 HCV boundary markers installed
42 conservation signboards installed

Seedling Nursery and Biodiversity Enhancement

In 2024, REA Kon's nursery utilised a stock of 5,582 seedlings for enrichment, distribution, and restoration activities, leaving 1,814 seedlings remaining in the nursery as of 31 December 2024. This supports restoration efforts by providing native species contributing to ecological resilience and biodiversity recovery.

Climate and Water Monitoring

REA Kon uses climate indicator tools to monitor temperature, rainfall, and humidity while conducting quarterly water quality tests in watersheds across conservation areas. In 2024, water monitoring in 5 rivers showed no significant contamination.

Environmental Management System (EMS)

REA implements its Environment and Biodiversity Conservation Policy through a thorough Environmental Management System (EMS) that aligns with ISO 14001 standards, ensuring adherence to internationally recognised environmental management practices. For detailed information, please follow the link to access the Environment & Biodiversity Conservation Policy.

Community Collaboration

We actively engage local communities in conservation initiatives by conducting patrols, participating in restoration projects, and offering educational programmes, fostering shared responsibility for environmental stewardship.

Achievements

In 2023, REA received recognition as the "Best Manager of High Conservation Value Areas" in East Kalimantan.

In 2024, signed MOU for environmental remediation activities between PT RKP, Kembang Janggut Village and Kelekat Village.

In 2024, signed MOU for Environmental Compensation between PT SYB and Kelekat Village.

In 2025, we ⁠launched the Pangan untuk Penghijauan (Food for Greening) programme in Ritan Baru Village to support sustainable fruit cultivation that empowers local livelihoods while conserving forests and riparian zones based on the East Kalimantan Governor's Decision no. 100.3.3.1/K.617/2024.

REA is deeply committed to protecting and enhancing the rich biodiversity of its operational and surrounding landscapes. Our biodiversity management programmes are designed to protect rare, threatened, and endangered (RTE) species while ensuring the ecological balance of our landscapes.

In line with this commitment, REA has partnered with SEARRP to advance biodiversity research and conservation efforts. This collaboration focuses on evaluating the effectiveness of biodiversity management practices, soil health research and promoting sustainable palm oil cultivation that supports biodiversity protection.

REA has also published its Environment and Biodiversity Conservation Policy, ensuring compliance with all international and domestic laws and regulations relating to conservation of the environment and biodiversity. This policy applies to all REA’s operations, employees, suppliers, third party contractors operating within REA’s plantations, as well as all associated and independent smallholders, covering activities both within and beyond HCV/HCS areas. For more information, read here.

Biodiversity Database

A comprehensive database records information on species richness, distribution, and abundance, with a focus on RTE classifications per the International Union for Conservation of Nature (IUCN). The database is continuously updated with new records. In 2024, REA recorded 732 species within its conservation reserves, including:

Species Monitoring

Monitoring methods, such as camera traps and night surveys, improve the identification of elusive and nocturnal species.
Notable species recorded by camera trap or incidental observation in 2024
Critically Endangered (CR):
- Orangutan (Pongo pygmaeus morio) – 6 different areas
- Sunda Pangolin (Manis javanica) – 5 sites
- Endangered (EN):
  - Bornean Gibbon (Hylobates muelleri) – 5 sites
  - Proboscis Monkey (Nasalis larvatus) – wet lowland forest and wetland areas
  - Flat-Headed Cat (Prionailurus planiceps) – 4 sites
  - Greater Green Leafbird (Chloropsis sonnerati) – 2 sites
  - Storm’s Stork (Ciconia stormi) – rare sightings
  - Wrinkled Hornbill (Rhabdotorrhinus corrugatus) – rare sightings
Reptiles:
- Siamese Freshwater Crocodile (Crocodylus siamensis) – Mesangat only

Critical and Endangered Species Monitored

In 2024, the following CR and EN species were recorded by camera trap or incidental observation:

2024	Mammals	Birds	Reptiles	Amphibians	Fish	Insects
Number of Species	88	268	64	45	113	154
Critically Endangered	2	1	2	0	-	-
Endangered	8	6	2	0	-	-
Vulnerable	13	16	3	0	1	-
Near Threatened	13	45	2	1	4	-
Least Concern	45	199	46	44	59	14
Other	7	1	9	0	49	140

Critical and Endangered Species Encountered

The graph below shows the annual totals of CR & EN species encountered across the group’s locations in 2024:

Between 2018 and 2024, there was a 163% increase in the number of RTE species recorded across REA’s conservation reserves. Having met our target of a 20% increase in RTE species encounters from the 2018 baseline, REA will continue regular monitoring to support ongoing conservation and data collection.

Habitat Protection

Conservation reserves are carefully managed to support diverse habitats. Important tree species, such as Cananga odorata, Ficus spp., and Artocarpus spp., produce abundant food resources, attracting wildlife like hornbills, butterflies, and insectivorous birds.
Monitoring butterfly species offers insight into the landscape's ecological health, with notable species like Spindasis lohita and Acraea violae providing indicators of habitat conditions
Arboreal Foliage Gleaning Insectivore/Frugivore (AFGI/F) birds are particularly prevalent due to the abundance of fruits and insects

Reforestation and RTE Tree Species

In 2024, REAKon continued phenology monitoring and discovered five rare and endangered tree species by The International Union for Conservation of Nature (IUCN) Red List of Threatened Species/IUCN within permanent plots they are Critically Endangered: Vatica venulosa in permanent plots tengkeran river - tepian estate and Endangered species: Aquilaria microcarpa, Castanopsis argentea, Dipterocarpus hasseltii and Shorea uliginosa.

Collaboration with Community and Stakeholders

REA Kon carries out conservation education and community engagement projects with local communities, employees, school pupils, and government stakeholders.
In 2024, these efforts continued to expand to minimise disturbances in HCV areas and to strengthen long-term collaboration through forums, information exchanges, and the distribution of conservation materials.
No conflicts between orangutans and humans were reported in 2024, highlighting successful collaboration with stakeholders such as BKSDA to mitigate conflicts and promote orangutan conservation.
Initiatives such as the Kelompok Tani Peduli Api (KTPA) engage local farming groups and villages in remediation programs and HCVA monitoring. For more information, read here.

Future Goals

In 2025, REA will review its target, having already achieved a 20% increase in RTE species encounters since 2019, based on the 2018 baseline.
Ongoing partnerships with stakeholders will drive further advancements in biodiversity conservation.

REA is fully committed to maintaining a deforestation-free supply chain, which extends beyond our own concessions through our sourcing policies and comprehensive supplier due diligence. We ensure that the FFB we source is not procured from non-compliant, deforested areas in accordance with our sustainability policy, NDPE commitments, and best management practices.

We are committed to the restoration of all non-compliant deforestation and land use conversion. This includes the restoration of HCS forests, HCV areas, peatlands and other ecologically and culturally significant lands in consultation with independent experts and in accordance with accepted international industry certification standards.

We recognise 15 November 2018 as the cutoff date for supplier compliance with all provisions of the NDPE policy. This policy applies to the operations of any company within the REA group and all of its employees and includes all third-party contractors operating within REA’s plantations, as well as all associated and independent smallholders and all suppliers. For more information, read here.

Satellite Monitoring

REA uses the Satelligence platform and Global Forest Watch's Radar Alerts for Detecting Deforestation (RADD) system to conduct biweekly monitoring of forest cover and detect land clearing activities.
These tools enable rapid investigation of potential illegal activities, both within and around REA’s concession areas, including supplier operations, ensuring prompt corrective actions to prevent further damage.
Any encroachment is investigated and, as necessary, processed in conjunction with local communities and government authorities.

Boundary Patrols

Conservation reserve boundaries are clearly marked with signboards and patrolled regularly by REA Kon staff, security teams, and local community members.
These patrols aim to monitor and prevent illegal encroachment into protected areas, safeguarding critical habitats and biodiversity.

Supplier Due Diligence

All new fresh fruit bunch (FFB) suppliers undergo a strict supplier due diligence process to ensure alignment with REA’s sustainability policies. For more information, read here.
Partnerships with external organisations, including Plan B and local government entities, support the mapping of village boundaries. This initiative plays a crucial role in mitigating the risk of deforestation within communities. For more information, read here.

Encroachment Risk Management

REA works alongside local communities and authorities to address encroachment cases, focusing on prompt resolution and adherence to legal requirements.
We adopt the RSPO New Planting Procedure (NPP) and conduct integrated High Conservation Value (HCV) and High Carbon Stock (HCS) assessments before undertaking any new land development. For more information, read here.

Traceability

REA continues to strengthen the traceability of our FFB supply chain, ensuring full traceability to the source for external FFB processed in the group’s mills. For more information, read here.
All FFB suppliers (both direct and indirect), including smallholders, undergo a rigorous supplier due diligence process to ensure a deforestation and conversion-free (DCF) supply chain. This requires providing geolocation coordinates and polygon mapping as part of the supplier due diligence process, which mitigates deforestation risks. REA maintains a comprehensive database of all smallholder land within its supply base, ensuring that each delivery to REA mills is recorded and verified. For more information, read here.
A DCF assessment, based on land ID identification, land surveys, supplier engagement, field verification, and spatial analysis, is conducted by REA’s compliance team and GIS experts.
In 2024, over 46% of third-party FFB suppliers were verified as DCF, with continued progress toward full verification across the supply chain.
In 2024, 100% of REA’s 2,929 smallholders had been assessed to ensure compliance with REA’s policies, legal requirements, and traceability standards, fostering sustainable palm oil production.

Deforestation Monitoring

Location	2018 (Hectares)	2019 (Hectares)	2020 (Hectares)	2021 (Hectares)	2022 (Hectares)	2023 (Hectares)	2024 (Hectares)
Within REA concessions	-	-	-	-	-	-	-
Perdana estate	-	16.97	-	-	-	-	-
Sentekan estate	-	-	5.54	-	0.16	0.14	-
Cakra estate	0.35	0.42	2.24	-	1.71	0.12	1.63
Lestari estate	1.25	6.05	4.63	-	-	-	0.65
Damai estate	0	-	0.21	-	0.2	-	1.5
Berkat estate	19.78	4.65	16.53	0.01	0.41	0.39	0.74
Tepian estate	8.07	14.14	7.93	-	-	4.94	3.01
Satria estate	7.48	182.4	18.49	16.41	29.18	0.09	2.6
Kedaron estate	3.78	0.06	-	-	0.46	1.96	0.4
CDM	-	34.09	55.82	0.95	1.27	2.36	3.1
PBJ2 Kaltim	-	9.73	-	10.9	5.45	-	-
PBJ2 Satria	-	27.86	-	10.01	15.06	-	-
PU	-	22.69	-	16.24	29.46	21.55	111.65
Buaya Estate	3.57	-	-	-	-	-	-
Satria Estate (IUP APT)	28.17	-	-	-	-	-	-
Elang Estate	186.12	-	-	-	-	-	-
Long Mesangat Estate	18.5	-	-	-	-	-	-
Subtotal	277.07	319.06	111.39	54.52	83.36	31.55	125.28
Outside REA concessions (areas of interest covering independent smallholder supplier locations)	164.46	63.16	59.37	2.71	3.17	890.33	1140.09
Total	441.53	382.22	170.76	57.23	86.53	921.88	1265.37

In 2024, REA recorded a total of 31.55 hectares of deforestation within its concessions:

29.21 hectares were due to illegal encroachment into conservation areas.
2.34 hectares resulted from legal mining operations by neighboring companies.

Since 2018, the total area of deforestation within REA’s concessions amounts to 1,002.2hectares, while areas outside REA’s concessions total 2,323.3 hectares. There has been no non-compliant deforestation directly linked to REA’s operations.

Non-Compliant Deforestation Outside Concessions

In 2024, monitoring identified 1,140.1 hectares of deforestation outside REA’s concessions. These cases included multiple instances near 26 independent smallholder locations. Upon investigation and field verification, all deforestation was confirmed to be unrelated to registered REA smallholder suppliers.