STATEMENT OF THE INDONESIAN PALM OIL ASSOCIATION (IPOA/GAPKI) CONCERNING TEMPORARY SUSPENSION OF CPO OF UNILEVER BUSINESS WITH PT SMART TBK.

Based on PT SMART TBK’s report submitted to GAPKI on December 15th, 2009 concerning the temporary suspension of future purchase of CPO from PT SMART TBK, and after going through GREENPEACE’s report shown on its website, therefore GAPKI would like to make the following statement:

1. GAPKI is deeply concerned over unilateral actions taken and decision made in haste by UNILEVER to temporary suspend the purchase contract of CPO from PT SMART Tbk. holding company. Further, it fails to meet the basic standard is grievences handling in objectives and accountable manner as credibility as the NGO’s report has yet to be further verified. GAPKI is in the opinion that such suspension, which was publicly announced by UNILEVER to the press not only affecting SMART Tbk. but will also create impact on the perception and attitude of the Indonesian palm oil industry towards UNILEVER. 
2. UNILEVER and PT SMART Tbk. are members of Roundtable on Sustainable Palm Oil (RSPO), a multi-stakeholders forum of all players in palm oil industry on the development and promotion of the use of sustainable palm oil. Both institutions are committed to adopting and implementing the principles and criteria of sustainable palm oil. Therefore, it is appropriate for UNILEVER to make use of RSPO forum for clarifications on the allegations and claims lodged by GREENPEACE, a non-member of and highly critical to RSPO. Such unilateral action reflects unfair and injudicious judgment by UNILEVER by taking side and putting more confidence in the NGO’s unverifiable accusations and claims, while disregard the procedure and clarification mechanism within RSPO. This does not serve the UNILEVER’s purpose as a good showcase either as a member or as one of pioneers in the establishment of RSPO.  
3. GAPKI is concerned that this incident may influence the perceptions of CPO producers on the credibility of RSPO. As such, this case will further dissuade the majority of Indonesian CPO producers who are now remaining indifferent in joining the RSPO due to weak position of growers in RSPO’s decision making. 
4. The unilateral action done by UNILEVER which is justifying an NGO’s report reflects distrust in the Indonesian laws and regulations pertaining development and management of oil palm plantations.
5. Production CPO will steadily grow over time in line with growing demands from both domestic and world markets. CPO will remain as one of the most lucrative commodities with potential CPO markets to develop. Thus, the suspension case of UNILEVER will not impact and influence to the Indonesian CPO market.