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Empowerment of Independent Smallholders

MKTR regards FFB suppliers—particularly local farmers—as strategic partners in driving sustainable business growth. The Company strives to ensure a stable FFB supply from these partners, which is a priority both to support long-term business growth and to minimize potential negative impacts in surrounding areas, especially for suppliers. To achieve this, MKTR safeguards the entire value chain by implementing various partnership programs aimed at empowering local farmers and other suppliers.

The Company has implemented partnership (binaan) programs since 2006 through plasma schemes, facilitating the development of community-owned palm oil plantations and revenue-sharing arrangements over each plasma area. These partnership schemes are operated within the Company’s operational areas, particularly in “first-ring” villages surrounding the plantations and mills.

In 2024, MKTR partnered with 113 FFB suppliers in Central Kalimantan, comprising 77 independent smallholders, 1 cooperative, 1 plantation company (CV), and 34 partnership estates. Independent smallholders constitute the largest group of suppliers by number. All suppliers are selected through stringent internal criteria, whether via competitive selection or direct appointment in accordance with prevailing rules. Throughout 2024, there were no complaints lodged by either local or non-local suppliers against the Company.

Amid ongoing demographic changes in rural areas, MKTR continues to strengthen its empowerment initiatives by encouraging capacity-building programs for plasma farmers and fostering partnerships with micro, small, and medium enterprises (MSMEs), so that the economic benefits of palm oil are more evenly distributed at the local level. These efforts complement the Company’s commitment to maintaining a sustainable supply chain while improving the welfare of farmers and surrounding communities who serve as MKTR’s key partners in securing FFB supply.