Framework Purpose
This Sustainability Framework sets out the principles, governance structure, implementation approach and reporting commitments for PT Sapta Borneo Utama's integrated sugar, ethanol, biomass power, plantation and plasma development project.
Strategic Sustainability Objectives
- Support responsible agribusiness and industrial development.
- Promote sustainable sugarcane cultivation and plasma farmer participation.
- Reduce environmental impacts through biomass energy and resource efficiency.
- Strengthen social inclusion, employment and community development.
- Maintain transparent governance, compliance and risk management.
- Align project implementation with lender, investor and stakeholder expectations.
Sustainability Pillars
| Pillar | Commitment |
|---|---|
| Environmental Stewardship | Energy efficiency, biomass power generation, water management, waste reduction and pollution prevention. |
| Social Responsibility | Community engagement, local employment, plasma farmer partnerships, labor protection and occupational health and safety. |
| Governance & Compliance | Ethical conduct, legal compliance, anti-corruption controls, transparent reporting and internal accountability. |
| Economic Inclusion | Rural development, supplier participation, farmer income improvement and regional economic contribution. |
Environmental Framework
| Area | Action |
|---|---|
| Energy | Use bagasse and biomass residues to support renewable power generation and improve energy efficiency. |
| Water | Apply responsible water use, recycling, monitoring and wastewater treatment. |
| Waste | Reduce, reuse and properly manage industrial, agricultural and hazardous waste streams. |
| Air Emissions | Monitor emissions and apply pollution prevention measures consistent with applicable standards. |
| Biodiversity | Avoid illegal deforestation, protect sensitive areas and integrate green buffer planning. |
Social Framework
- Maintain safe and fair working conditions.
- Prohibit forced labor, child labor and discriminatory practices.
- Promote local employment and skills development.
- Support plasma farmer participation and agricultural productivity.
- Maintain stakeholder engagement and grievance mechanisms.
- Contribute to community development and regional economic growth.
Governance Framework
- Maintain oversight by the Board of Commissioners and management.
- Apply anti-bribery, anti-corruption, AML and sanctions compliance controls.
- Maintain accurate books, records and project documentation.
- Implement risk management for ESG, operational, financial and compliance risks.
- Ensure transparent reporting to lenders, investors and relevant stakeholders.
- Review sustainability performance periodically and apply corrective actions where required.
Sustainability Governance Structure
| Function | Responsibility |
|---|---|
| Board of Commissioners | Oversight of sustainability performance, governance and compliance. |
| Board of Directors | Approval and implementation of sustainability strategy and resources. |
| Management Team | Integration of sustainability practices into operations and project execution. |
| ESG / Sustainability Function | Monitoring, reporting, stakeholder engagement and corrective action tracking. |
| Contractors and Suppliers | Compliance with project ESG, HSE and sustainability requirements. |
Key Performance Indicators
| Area | Indicator |
|---|---|
| Environmental | Renewable energy utilization and GHG emissions monitoring. |
| Environmental | Water consumption, recycling and wastewater compliance. |
| Environmental | Waste handling and pollution prevention performance. |
| Social | Local employment, training, health and safety performance. |
| Social | Plasma farmer participation and community engagement. |
| Governance | Regulatory compliance, ESG reporting and anti-corruption controls. |
Lender and Investor Alignment
The Sustainability Framework is intended to support lender and investor due diligence by providing a structured basis for ESG governance, environmental and social risk management, stakeholder engagement and periodic performance reporting.
Reporting and Review
- Periodic sustainability reporting to relevant stakeholders.
- Monitoring of material ESG risks and mitigation actions.
- Review of sustainability targets and KPIs.
- Corrective action planning where performance gaps are identified.
- Annual policy and framework review or earlier review when required by project circumstances.
Approval
For and on behalf of
PT SAPTA BORNEO UTAMA
SAPTA RISWANDY
President Director
President Director
Reviewed / Supervised by
Board of Commissioners
NENENG SITI MARYAM
Commissioner
Commissioner
Supervised by
Board of Commissioners
DAVID LOKATILI
Commissioner
Commissioner
Document Information
| Document Owner | PT Sapta Borneo Utama |
|---|---|
| Project | USD 1 Billion Integrated Sugar Factory Project |
| Location | Majalengka, West Java, Indonesia |
| Classification | Confidential |
| Status | Final / Published |
| Prepared For | Lenders, ECAs, Institutional Investors and Strategic Partners |
| Date | June 2026 |
Revision History
| Version | Date | Document No. | Status | Description |
|---|---|---|---|---|
| 1.0 | June 2026 | SBU-ESG-002 | Final / Published | Sustainability Framework issued for institutional lender data room publication. |