The use of drones for pesticide spraying to improve the effectiveness and efficiency of pesticide application at Cibaliung Estate, Rokan Hilir, Riau. USE OF FERTILISERS, PESTICIDES AND CHEMICALS (GRI 3-3, 301-1) Although oil palm is globally recognised as the most efficient oilseed crop by yield per hectare, we are continually striving to improve our yields further and minimize our environmental impact. (See the Yield Resilience and Innovation section, page 42, for details.) Fertiliser Consumption Healthy, high-yield crops depend on effective fertilisation. We prioritise the use of organic fertilisers and are working to reduce reliance on chemical alternatives. Fertiliser is applied during planting and replanting, with its efficiency maximised through careful scheduling at optimal intervals (avoiding heavy rainfall to prevent dilution). Application rates are precisely adjusted based on soil fertility and tree age across different plantation blocks. Between palm crop cycles, we also plant legumes as cover crops to naturally enrich the soil. These naturally convert nitrogen from the atmosphere into forms that improve soil health and fertility. Building on last year’s efforts to explore fertilisers derived from palm fronds and controlled-release options, we continued to advance nature-based solutions for sustainable nutrient management. In 2025, we launched a new project testing the use of EFB biochar as a soil amendment to improve fertility and reduce reliance on synthetic fertilisers. We also recycle EFBs and POME, converting them into compost and soil enhancers. Our long-term goal is to gradually increase average oil palm yields by accelerating replanting with improved planting materials developed in our laboratories and adopting sustainable practices such as using beneficial microbes like Trichoderma as bio-fertilisers and bio-control agents. Integrated Pest Management (IPM) In line with the UN’s Stockholm and Rotterdam Conventions, IndoAgri and all our suppliers avoid using pesticides classified as Class 1A and 1B by the World Health Organisation. Instead, we employ IPM techniques. These methods combine natural, biological, and mechanical controls, allowing us to effectively reduce chemical use, lower health risks, and support biodiversity. Chemical pesticides are employed only when necessary, following the exhaustion of other measures. We have stopped using the toxic chemical pesticide Paraquat since 2018, to avoid any potential health risks to our workers. In 2025, IndoAgri expanded the use of drone sprayers to control bagworm (Clania tertia) infestations in 5 to 10-yearold palms. This technology enables precise application, reducing excessive pesticide use while improving efficiency, lowering labour requirements, cutting operational costs, and minimising human error. With pest outbreaks increasing, likely due to rising temperatures, the use of drones has been scaled up across plantations, including in newly affected areas such as Riau. 35 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
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