Analisis Dampak Lingkungan (AMDAL) An environmental impact assessment which companies are required by law to undertake when starting a business or activity that will have an impact on the environment in Indonesia. Badan Penyelenggara Jaminan Sosial (BPJS) An authorised body established by the Indonesian Government to provide medical coverage for Indonesian citizens and residents. Biodiversity The variety of life forms within a particular ecosystem, biome, or habitat. Biological Oxygen Demand (BOD) A measure of the degree of water pollution by the amount of dissolved oxygen needed by aerobic biological organisms in a body of water to break down organic materials. Carbon Footprint A measure of the total amount of greenhouse gases, including carbon dioxide, methane and nitrous oxides, emitted directly or indirectly by an organisation, event, product or person. Child Labour A person under 18 years of age, according to Indonesian law, who is engaged in work that is mentally, physically, socially or morally dangerous and harmful, and that interferes with that person’s schooling. Crude Palm Oil (CPO) Oil produced from oil palm fruits in milling process. Food Safety System Certification (FSSC) 22000 A food safety certification scheme based on the existing internationally recognised standard ISO 22000 and complemented by other technical standards. This certification aims to provide an effective framework for the development, implementation and continual improvement of a food safety management system (FSMS). Forced Labour A person who is coerced to work under the threat of violence, intimidation, or undue stress of penalty. Free Prior Informed Consent (FPIC) Consent which represents the rights of a community to give or withhold its consent to proposed projects that may affect the lands it customarily owns, occupies or uses. Fresh Fruit Bunch (FFB) The fruit bunch harvested from the oil palm tree. Global Reporting Initiative (GRI) A non-profit organisation that promotes economic sustainability and develops an international standard for sustainability reporting. Greenhouse Gas (GHG) Gases, such as carbon dioxide, methane and nitrous oxide, which trap solar radiation and contribute to climate change and ozone destruction. High Carbon Stock (HCS) An area of land with large amounts of carbon and high biodiversity value. High Conservation Value (HCV) HCV land comprises certain critical ecological or socio-cultural attributes. A key part of HCV management is ensuring activity in forests does not have a negative impact on the critical ecological and socio-cultural attributes, a process that aligns with ISPO’s requirements. High-consequence work-related injury According to the GRI Standards, a high-consequence work-related injury (excluding fatalities) is defined as an injury from which the worker cannot or is not expected to recover fully to pre-injury health status within 6 months. HCV Assessment Recording ecological or sociocultural attributes is part a process that aligns with ISPO’s requirements. HCV assessments use accredited third-party assessors. Integrated Pest Management (IPM) The use of ecological pest control techniques to reduce pest populations and replace pesticides and other harmful intervention to minimise risks to human health and the ecosystem. Indonesian Sustainable Palm Oil (ISPO) A government effort led by the Ministry of Agriculture to support sustainable palm oil agriculture in Indonesia. ISO 14000 series A family of international standards for addressing environmental management. Koperasi Unit Desa (KUD) Village unit cooperatives to improve the economic and social wellbeing of rural communities in relation to agricultural activities. No Deforestation No new development on HCV areas within IndoAgri’s operations and no primary forest clearance. Nucleus A system developed by the Indonesian Government for estates (nucleus) owned by plantation companies to develop oil palm plots (plasma) near their own plantation for smallholders. Palm Kernel (PK) Seed of the oil palm fruit, which is processed to extract crude palm kernel oil (CPKO) and other by-products. Panitia Pembina Keselamatan dan Kesehatan Kerja (P2K3) A health and safety committee responsible for monitoring IndoAgri’s compliance to the SMK3 in the estates, mills and refineries. Palm Oil Mill Effluent (POME) Liquid waste or sewage produced from the palm oil milling process or refinery. Plasma or Scheme Smallholder Plasma smallholders are farmers who participated in the Plasma Transmigration Program (Perkebunan Inti Rakyat, also known as PIR-Trans), organised by the Indonesian government in 1987. Under the scheme, villagers from rural parts of Indonesia were relocated to oil palm growing areas and allocated with two hectares of farming land. The plasma farmers were partnered with local companies for initial financing of development and land preparation, planting materials, and technical knowledge. In return for this assistance, smallholders are committed to selling their crops to the company at a price set by the government. Program for Pollution Control, Evaluation and Rating (PROPER) An Indonesian regulatory mechanism based on public disclosure of pollution records and environmental performance. Recordable work-related injury According to the GRI Standards, a recordable work-related injury is defined as any of the following: death, days away from work, restricted work or transfer to another job, medical treatment beyond first aid, loss of consciousness, or significant injury or ill health diagnosed by a physician or licensed healthcare professional. Sistem Keselamatan dan Kesehatan Kerja (SMK3) Occupational health and safety management system according to Indonesia regulation. Social Impact Assessment (SIA) A methodology for analysing, monitoring and managing the social consequences of planned interventions and the social change processes arising from these interventions. Stakeholders A person, group, organisation, member or system that affects or can be affected by an organisation’s actions. GLOSSARY 79 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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