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KEHATI

at a glance

Background of Establishment• The establishment of KEHATI Foundation was closely related to the

realization of the Convention on Biodiversity resulted from the1992 Earth Summit held in Rio de Janeiro and the 1993 TokyoDeclaration, in which Indonesia, Japan and the Unites States ofAmerica agreed to work together to preserve biodiversity as part ofthe global effort of preventing the loss of the world’s naturalresources.

• Indonesia was chosen as it is one of the most mega biodiversitycountry in biological natural resources. KEHATI has been trustedwith an Endowment Fund of USD 16.5 million as an initial capitalthrough a Cooperative Agreement on Indonesia BiodiversityFoundation (IBF) Project – which was signed on April 1995 betweenKEHATI and USAID.

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History of KEHATI

Established: 12 Jan 1994

Agreement:Bilateral Cooperation between US Gov and IndonesiaGov under Cooperative Agreement No.497-0384-A-00-5011-00 title: Indonesia Biodiversity Foundation(IBF) Project- Signed in April 1995

Resource of Endowment Fund: Endowment Fund USD. 16.500.000 Start-up Operation USD. 2.500.000 Total Fund from USAID USD. 19.000.000

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To become a trusted and influential agent ofchange to support the conservation and use ofbiodiversity and the environment in an equitableand sustainable manner

Mission

Enhancing public awareness and understanding ofbiodiversity to encourage behavioral change

Mobilizing, managing and distributing resources forbiodiversity utilization

Empowerment of community institution

Encouraging the establishment of public policy inlocal and national level for biodiversity conservation

Vision

Vision & Mission 2013-2017

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Central and LocalGovernment,

ResearchInstitution, etc.

KEHATI Role & Function

GOVERNMENT

Investors, PrivateSectors, State-

Owned Enterprise,etc.

PRIVATE & BUSINESS SECTORS

COMMUNITYNon-Government Organisation, Academition, Cultural

Organisation, Mass Media, Indigenous People, etc.

KEHATI

KEHATI KEHATI

Together with local community, KEHATI is activelyreduce the threat of Indonesian biodiversity loss

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1998 – 2001Program and Constituency Development :• Crisis Management• Program Development• Network and Constituent Building• Credibility and Public Recognition

2002 – 2007Institutional Sustainability :• Resource Mobilization & Financial Sustainability• Policy Advocacy• Market & Technology Input• Alliance & Partnership

1994 – 1997

Institutional Building :

• Creating Policy, Systems, and

Procedures

• Organization and Staffing

• Start-Up Programs

2008 – now . . . .

Institutional Development

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key factors that enabled Kehati Foundation’s to be the largest biodiversityconservation trust fund in Indonesia

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• Corporates Engagements;ORI, Chevron, Alfamart, Etc ± US$ 3 Million

2008 – now• New Initiatives:- MFP-II, TLAS, Combating illegal logging GBP 10 Million- TFCA-1, 2009 (DSN) US$ 30 Million- TFCA -2, 2012 (DSN) US$ 28 Million- TFCA-1, expansion 2014(DSN) US$ 12 Million- MCA-I CBNRM US$ 23.4 Million

US$ 103.4 Million

- Endowment Funds US$ 16.5 Million

Grand Total US$ 120.0 Million

• Collaboration with IDX to establish the Sustainable Responsible InvestmentIndex- SRI-KEHATI- ETF SRI-Kehati Unit Trust US$ > 100 Million

KEHATI becomes a ”World Class Conservation Trust Fund“

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WHERE DOES KEHATI WORK ?

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ProgramPerformance

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+2

Indonesia as a mega-biodiversity countryTropical area :• Diversity center of : 17% Birds, 16% Reptiles, 12% Mammals, 10% Flowers, etc• Native fruits of : Mangosteen (Manggis), King of Fruit (Durian), Ambarella

(Kedondong), Water guava, etc• Endemic center of : Komodo Dragon, Sumatran and Javan Tigers, Orangutans,

Javan and Sumatran Rhinos “Harapan from Cincinnati Zoo”, Sumatran Elephant,Anoa, Bird of Paradise, Maleo, Bali Starling/Mynah, Rafflesia, Orchids, AsianBonytounge (Arwana), Featherbacks (Belida), etc

Source : [https://ajimachmudi.wordpress.com/fauna-dan-flora-Indonesia] 10

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KEHATI; Public Private Partnerships

1. KEHATI – BNI – Sangihe Local Government; SustainableAgro and organic Nutmeg

2. KEHATI – Chevron – Halimun Salak NP; Improving localcommunities’ economy

3. KEHATI – Chevron – Berau Local Government;Ecotourism development in Maratua

4. KEHATI – AlfaMart – Manado Local Government;Tondano watershed improvement

5. TFCA Sumatera – Bridgestone - PT SPS; rubberplantation for local communities in Jambi

6. TFCA Sumatera - Alesa Wisata; Ecotourism in Bengkulu7. TFCA Sumatera - Satwa Ecolodge; Ecotourism in

Lampung

Sources of Fund

Endowment Fund:USD 16.5 Mio

BilateralDonorAgencies:USAID, AusAID,

DfID, CIDA,JICA, andmany more

Multilateral DonorAgencies:

UNEP, UNDP, WorldBank, Partnership forGovernance Reform,and many more.

Philanthropic & PrivateInstitution

MacArthur Foundation, Pertamina Foundation,The Ford Foundation, Packard Foundation,CIMB Foundation, Rockefeller Brothers Fund,The Asia Foundation, The Synergos Institute,Turtle Foundation, Eka Tjipta Foundation, CocaCola Foundation, The UPS Foundation, TIFAFoundation, Foundation D’Enterprise ALSTOM,JCIE, WRI, and many more.

Private Sector:Garuda Indonesia, Pembangunan Jaya Ancol,Unilever Indonesia, Bank CIMB Niaga, BankDanamon Indonesia, Bank Bank Rakyat Indonesia,Bank Negara Indonesia, Bank Mandiri, IndonesiaExim Bank, Bahana Pembinaan Usaha Indonesia,Bahana TCW Investment Management, IndoPremier Investment Management, Tirta Investama,Aplikanusa Lintasarta, Hotel Bidakara Jakarta, AccorGroup Hotel, Sekolah Cita Buana, Sharp ElectronicIndonesia, Bursa Efek Indonesia, Kustodian SentralEfek Indonesia, Asosiasi Perusahaan EfekIndonesia, Indonesian Business Link, GrahaniagaTatautama, Styrindo Mono, 24 Jam Online, TheBody Shop, Badak NGL, Chevron Geothermal SalakLtd, Alexandre Christie International Pte, ChandraAsri, Toyota Motor Manufacturing Indonesia, PlanetUrgence, and many more.

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Crowd Fund:Alfa Mart

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FINANCIAL INNOVATION• KEHATI in collaboration with Bahana TCWIM launched the

Philanthropy Mutual Fund in 2007.• KEHATI in collaboration with IDX launched the Sustainable and

Responsible Investment Index (“SRI-KEHATI Index”) since Jun2009.

• KEHATI engaged with selling-agent of Indonesian GovernmentBonds (ORI010), to obtain contribution from their sales/commissionfee.

• KEHATI in collaboration with IPIM and IDX listed the 1st Sustainableand Responsible Investment Exchange Traded Fund (“Premier ETFSRI-KEHATI”) in SE Asia in Oct 2014.

• KEHATI engaged with retail-chain store, AlfaMart, to raise funds in a“cause-related marketing/public giving” scheme through rounding-upof the small-change, for Tondano Lake conservation.

SRI-KEHATI Index

Since it was launched in Jun 2009, the index gainedpositive response from the investors as it consistentlyoutperform the market by 10% above the LQ45 Index andJII Index, therefore it proves that investors are willing topay premium prices to those companies in SRI-KEHATIindex which considered as green companies. This year isthe 7th Anniversary of SRI-KEHATI Index. 14

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The purpose of SRI-KEHATI Index1. To boost the implementation of sustainable development for the

businesses in Indonesia, particularly the companies which havebeen listed in the Indonesia Stock Exchange.

2. To be an assessment of the company’s performance in terms ofconcern for the environment, social issues and good corporategovernance.

3. To be a barometer of the quality of environment and naturalresources in Indonesia.

4. To be a friendly environment or green investment benchmark5. To encourage the capital market investors into a sustainable

investment and business direction.6. To develop other financial and derivative products such as ETF,

Conventional Index Fund, etc.

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Source of Data: Indonesia Stock Exchange

Performance GraphSRI-KEHATI Index vs Others

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SRI-KEHATI, 33%

LQ45, 19%

IHSG, 21%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

Dec-11 Dec-12 Dec-13 Dec-14 Dec-15

Performance IHSG - LQ45 - SRI-KEHATI2012 - January 2016

IHSG LQ45 SRI-KEHATI

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Screening Process of SRI-KEHATI Indexconsists of 25 public listed companies

Screening 1Core Business

Forbidden business :PesticideNuclearWeaponsTobaccoAlcoholPornCasino/gamblingGenetically Modified

Organism (GMO)

Financial ratio andmarket indicators :Mkt Cap min IDR 1 TTA min IDR 1 TFFR >10%Positive PE Ratio

Company management :EnvironmentCommunity involvementCorporate GovernanceBusiness behaviourHuman ResourcesHuman Rights

Screening 2Financial Aspects

Screening 3Fundamental Aspects

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LIST OF CONSTITUENTS OF SRI-KEHATI INDEXPERIOD: NOV 2015 – APR 2016

No Code Company Names No Code Company Names

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www.kehati.or.id19

https://putrisr.files.wordpress.com/2012/10/19061208530933_batak1.jpg