. MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Blang...

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

[ ]Stage-1 [ ] Stage-2 [√] Surveillance [ ] Re-Assessment

Plantation Management/Owner : SIME DARBY Plantation Sdn Bhd.

Plantation Name : Blang Simpo POM (PT Perkasa Subur Sakti) Blang Simpo 01 Estate, Blang Simpo 02

Estate, Tamiang Estate (PT Padang Palma

Permai) and Batang Ara Estate (PT

Perusahaan Sri Kuala).

Location :

Village of Seuneubok Lapang, Sub district f

Peureulak Timur, District of Aceh Timur, Aceh

Province, Indonesia

Certificate Code : MUTU-RSPO/026

Date of certificate issue : May 03rd, 2013

Date of expiry of certificate : May 02nd, 2018

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

by

ST-2 12-15 December 2011 Taufik Margani; Octo H.P.N

Nainggolan; Ibnu Satria Prabudi

Tony

Arifiarachman

Tony

Arifiarachman

S-1 03-07 February 2014

M. Syarip Lambaga, Octo HPN

Nainggolan, Doni, Sofyan Hadi

Lubis, Brigitta Prita

Tony

Arifiarachman

Tony

Arifiarachman

Mutuagung Lestari • Raya Bogor Km 33,5 Number 19 • Cimanggis • Depok 16953• Indonesia

Telephone (+62) (21) 8740202 • Fax (+62) (21) 87740745/6

Email : [email protected] ● www.mutucertification.com

MUTU Certification • Approved by RSPO Secretariat on June 2008

Assessment Submitted

to RSPO on: Approved

by RSPO on: Approved

by MUTUAGUNG LESTARI on:

S-1 21 April 2014 - 14 April 2014

http://www.mutucertification.com/

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Blang Simpo POM – PT Perkasa Subur Sakti , PT Padang Palma Permai, PT Perusahan Sri Kuala

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Perkasa Subur Sakti (Blang Simpo), Blang Simpo Estate Figure 2. Location Map of PT Padang Palma Permai (Tamiang Estate and Batang Ara Estate) Figure 3. Operational Map of Blang Simpo and Blang Simpo Estate Figure 4. Operational Map of Tamiang Estate and Batang Ara Estate

2 3 4 5

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 6

1.2 Organization Information 6

1.3 Type of Assessment 6

1.4 Location of Plantations, Mill and Area Statement 6

1.5 Description of Supply Base 7

1.6 Dates of Plantings and Cycles 8

1.7 Tonnage Certified 9

1.8 Other Certifications 9

1.9 Time-Bound Plan for Other Management Units 10

2.0 ASSESSMENT PROCESS

2.1 Certification Body 13

2.2 Assessment Team 13

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 14

2.4 Stakeholder Consultation and List of Stakeholders Contacted 15

2.5 Date of Next Surveillance Visit 16

3.0 ASSESSMENT FINDINGS

3.1 3.2

Summary of Assessment Report of the RSPO Certification Summary of Assessment Report of Supply Chain Requirement

17 40

3.3 Conformity Checklist of Certificate and Logo Use 44

3.4 Summary of RSPO Partial Certification 45

3.5 Identification of Findings, Corrective Actions, Observations, Opportunity for Improvement and Noteworthy Positive Components

46

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 59

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 64

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 65

2. Assessment Program 66

3. Glossary 68

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 2 Prepared by Mutuagung Lestari for Blang Simpo POM – PT Perkasa Subur Sakti , PT Padang Palma Permai, PT Perusahan Sri Kuala

Figure 1. Location Map of of PT Perkasa Subur Sakti (Blang Simpo), Blang Simpo Estate


ASSESSMENT REPORT


Figure 2. Location Map of PT Padang Palma Permai (Tamiang Estate and Batang Ara Estate)


ASSESSMENT REPORT


Figure 3. Operational Map of Blang Simpo and Blang Simpo Estate


ASSESSMENT REPORT


Figure 4. Operational Map of Tamiang Estate and Batang Ara Estate

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 6 Prepared by Mutuagung Lestari for Blang Simpo POM – PT Perkasa Subur Sakti , PT Padang Palma Permai, PT Perusahan Sri Kuala

1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

1.1 National Interpretation Used National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil

Production, Republic of Indonesia - RSPO INA-NIWG, May 2008 and RSPO Supply

Chain Certification Standard November 2011.

1.2 Organization Information

1.2.1 Company name SIME DARBY Plantation Sdn. Bhd - PT Perkasa Subur Sakti, PT Padang Palma Permai & PT Perusahaan Sri Kuala

1.2.2 Contact person Mohamad Pirabaharan

1.2.3 Company address and site address Office: The Plaza Lt. 36 Jl MH Thamrin Kav. 28-30 Jakarta 10350

Site: Village of Seuneubok Lapang, Sub district of Peureulak Timur, District of Aceh Timur & Village of Kebun Tanah Terban, Sub district of Karang Baru, District of Aceh Tamiang, Province of Aceh, Indonesia

1.2.4 Telephone +62-21-2992600

1.2.5 Fax +62-21-29922686

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

Mohamad Pirabaharan (Head of PSQM)

1.2.10 Registered as RSPO member 1-0008-04-000-00/ 08th December 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm Oil Mill and supply base

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate

PT Perkasa Subur Sakti (PT PSS) PT Padang Palma Permai (PT PPP) PT Perusahaan Sri Kuala (PT PSK)

1.3.4 Number of management unit 1 (one) palm Oil Mill (Blang SimpoPOM) which receives FFB supply from 4 (four) unit, there are Blang Simpo 01 Estate (PT PPP), Blang Simpo 02 Estate (PT PPP), Tamiang Estate (PT PPP) and Batang Ara Estate (PT PSK).

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

mailto:[email protected]

http://www.simedarby.com/


ASSESSMENT REPORT


Name of Mill Location

GPS

Latitude Longitude

Blang Simpo POM (PT Perkasa Subur Sakti)

Seuneubok Lapang Village , Peureulak Timur Sub district, Aceh Timur District, Aceh Province.

04042.28’74’’ N 97050.19’56’ ’E

1.4.2 Location of Supply Base

Name of Supply Base Location

GPS

Latitude Longitude

Blang Simpo 01 Estate (PT Padang Palma Permai)


4° 38' 54.67" - 4° 40' 52.98" N

97° 45' 28.21" – 97°48' 47.26" E



4° 40' 54.67" – 4° 43' 52.98" N

97° 48' 28.21" – 97°51'47.26" E

Tamiang Estate (PT Padang Palma Permai)

Kebun Tanah Terban Village, Karang Baru Sub district, Aceh Tamiang District, Aceh Province

04 0 17' 03" – 04 0 20' 2,5" N

97 0 56' 50" – 98003'26"

E

Batang Ara Estate (PT Perusahaan Sri Kuala)

Batang Ara Village, Karang Baru Sub district, Aceh Tamiang District, Aceh Province

04° 17’ 0,29’’–04° 19’ 49,89’’ N

97° 56’ 9,82’’ – 98°1’34,12’’

E

1.4.3 Tenure

Private

State

Community

1.4.7 Area Statement

PT PPP PT PSK TOTAL

Total area 1,128.91 8,369.65 Ha

Mature area 4,481.34 801.52 5,282.86 Ha

Immature area 444.00 - 444 Ha

Mill 11.22 - 11.22 Ha

Emplashment 34.84 25.03 59.87 Ha

Road & Bridges 142.70 - 142.70 Ha

Infrastructure 42.29 - 102.16 Ha

Nursery 19.00 - 19.00 Ha

Occupation 1,188.39 6.11 1,194.50 Ha

Land Clearing 443.01 - 443.01 Ha

HCV 284.69 296.25 580.94 Ha

Pipeline of Pertamina 149.26 - 149.26 Ha

1.5 Description of Supply Base


ASSESSMENT REPORT


1.5.1 Description of Mill

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Blang Simpo (PT Perkasa Subur

Sakti) 30 84.798 18.521,64 21,84 4.306 5.08 - -

*Source Production Data on February 2013 - January 2014

1.5.2 Description of Estate(s)

Name of Estate(s) Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/

year)

Supplied to Mill

FFB (tonnes/ye

ar) %


4.005,55 2.201,30 14.745 6.70 14.745 17.39


2.386,81

2.015,69 10.762 5.34 10.762 12.69


848,39

708.35 27.727 39.14 27.727 32.70


1.128,91

801.52 31.563 39.38 31.563 37.22

TOTAL 8.369.65 5,726.86

84.798

14.81

84.798

100.00

*Source Production Data on February 2013 - January 2014

1.5.3 Smallholder(s) and other source

Name of source(s)

Member(s) Location Total Area

(Ha) FFB

(tonnes/year)

Supplied to Mill

FFB (tonnes/ye

ar)

%

- - - - - - -

Blang Simpo Mill does not received FFB for outside source.

1.5.4 Product categories FFB/CPO/PK/PKO

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting years

Hectare (Ha)

Tamiang (Ha)

Batang Ara (Ha)

Blang Simpo 1 (Ha)

Blang Simpo 2 (Ha)

Total (Ha)

1979 24,39 24,39

1982 160,47 160,47

1983 252,20 252,20

1984 56,19 56,19

1985 271,29 43,66 314,95

1987 259,13 259,13


ASSESSMENT REPORT


1990 1.322 898,68 2.220,79

1991 65,61 538,80 604,41

1992 110,87 278,88 389,75

1993 192,96 192,96

1994 61,76 119,05 24,86 205,67

1995 170,11 52,47 24,86 247,43

1996 143,97 143,97

1997 66,70 87,19 56,65 210,54

2012 165 165

2013 189 189

2014 90 90

TOTAL 708,35 801,52 2.201,30 2.015,69 5,726.86

1.6.2 New Planting area after November 2007

Ha

1.6.3 Planting Cycle 1st/2nd Cycle Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production 101,561 Tonnes/year

CPO Production 21,937 Tonnes/year

Palm Kernel (PK) Production 5,281 Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)


4,005.55 2,201.30 14,745 6.70


2,386.81

2,015.69 10,762 5.34


848.39

708.35 27,727 39.14


1,128.91

801.52 31,563 39.38

TOTAL 8,369.65 5,726.86

84,798

14.81

1.7.3 Claim Certified Tonnage of Palm Product

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put

(tonnes)

Extraction (%)

Blang Simpo 30 84,798 18,485.96 21.8 4,239.9 5 - -

1.8 Other Certifications


ASSESSMENT REPORT


1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others -

1.9 Time Bound Plan for Other Management Units for Indonesia

MANAGEMENT UNIT

Estate (Supply Base) Time Bound LOCATION P O M Time Bound

Sekunyir. PT. Indotruba Tengah

Certified 2010 Sekunyir Certified 2010 Seruyan and West Kotawaringin District – Central Kalimantan

Seruyan Certified 2010

Manggala. PT. Tunggal Mitra Plantations

Certified 2010 Manggala 1 Certified 2010 Rokan Hilir District – Riau Manggala 2 Certified 2010

Manggala 3 Certified 2010

PT. Sime Indo Agro

Certified 2010 PT. Sime Indo Agro

Certified 2010 Sanggau District –West Kalimantan

Teluk Siak. PT Aneka Inti Persada

Certified 2011 Teluk Siak Certified 2011 Pekanbaru, Siak District – Riau

Pinang Sebatang Certified 2011

Aneka Persada Certified 2011

Sungai Pinang. PT. Bina Sains Cemerlang

Certified 2012 Sungai Pinang Certified 2012 Musi Rawas District – South Sumatera Bukit Pinang Certified 2012

Sukamandang. PT. Kridatama Lancar

Certified 2011 Sukamandang Certified 2011 Seruyan and East Kotawaringin District – Central Kalimantan

Sapiri Certified 2011

Baras Danum Certified 2011

Kuala Kuayan Certified 2011

Pemantang. PT. Teguh Sempurna

Certified 2011 Pemantang Certified 2011 Seruyan and East Kotawaringin District – Central Kalimantan

Kawan Batu Certified 2011

Hatan Tiring Certified 2011

Batang Garing Certified 2011

Alur Dumai. PT Lahan Tani Sakti

Certified 2011 Alur Dumai Certified 2011 Rokan Hilir District – Riau

Teluk Bakau. PT. Bhumireksa Nusa Sejati

Certified 2011 Teluk Bakau Certified 2011 Indra Giri Hilir District – Riau

Nusa Perkasa Certified 2011

Nusa Lestari Certified 2011

Mandah. PT. Bhumireksa Nusa Sejati

Certified 2014 Mandah Certified 2011 Indra Giri Hilir District – Riau

Rotan Semelur Certified 2011

Angsana Mini. PT Sajang Heulang

Certified 2011 KKPA-1 PT.SHE Certified 2013 Tanah Bumbu District – South Kalimantan Pantai Bonati Certified 2011

Angsana. PT Ladangrumpun Suburabadi

Certified 2011 Angsana Certified 2011 Tanah Bumbu District – South Kalimantan Gunung Sari Certified 2011

KKPA-4 PT.SHE Certified 2013

Mustika. PT Sajang Heulang

Certified 2013 KKPA-2 PT.SHE Certified 2013 Tanah Bumbu District – South Kalimantan KKPA-3 PT.SHE Certified 2013


ASSESSMENT REPORT


KKPA-5 PT.SHE Certified 2013

Gunung Aru. PT Bersama Sejahtea Sakti

Certified 2011 Gunung Aru Certified 2011 Kotabaru District – South Kalimantan

Gunung Kemasan Certified 2011

Laut Timur Certified 2011

Pantai Timur Certified 2011

Bebunga. PT. Langgeng Muaramakmur

Certified 2011 Sungai Cengal Certified 2011 Kotabaru District – South Kalimantan

Bebunga Certified 2011

KKPA Sungai Cengal 2014

Pondok Labu. PT Paripurna Swakarsa

Certified 2012 Binturung Certified 2012 Kotabaru District – South Kalimantan

Pondok Labu Certified 2012

Rampa Certified 2012

Sesulung Certified 2012

Selabak. PT Swadaya Andhika

Certified 2012 Selabak Certified 2012 Kotabaru District – South Kalimantan

Randi Certified 2012

Sangkoh Certified 2012

Lanting Certified 2012

Rantau. PT Laguna Mandiri

Certified 2012 Rantau Certified 2012 Kotabaru District – South Kalimantan

Matalok Certified 2012

Betung. PT Laguna Mandiri

Certified 2014 Betung Certified 2012 Kotabaru District – South Kalimantan

Sekayu Certified 2012

Ungkaya. PT Tamaco Graha Krida

Certified 2012 Ungkaya

Certified 2012 Morowali District – Sulawesi Tengah

Plasma TGK 2015

Ladang Panjang. PT Bahari Gembira Ria

Certified 2012 Ladang Panjang Certified 2012 Muaro Jambi District - Jambi Plasma BGR 2015

Rantau Panjang. PT Guthrie Pecconina Indonesia

Certified 2012 Rantau Panjang Certified 2012 Musi Banyuasin District – South Sumatera

Bumi Ayu Certified 2012

Karang Ringin Certified 2012

Napal Certified 2012

Mangun Jaya Certified 2012

KKPA Sungai Pinang 2015

Blang Simpo. PT Perkasa Subur Sakti

Certified 2013 Tamiang (PT PPP) Certified 2013 Aceh Tamiang and East Aceh District – Nanggroe Aceh Darussalam

Batang Ara ((PT PSK)) Certified 2013

Blang Simpo-01 (PT PPP)

Certified 2013

Blang Simpo-02 (PT PPP)

Certified 2013

MAS. PT Mitra Austral Sejahtera

2020 MAS 1 2020 Sanggau District – West Kalimantan

MAS 1 2020

MAS 1 2020

Lembiru. PT Sandika Nata Palma

2011 (Audited)

Lembiru 2011 Audited Ketapang District – West Kalimantan

Awatan 2011 Audited

Pelanjau (PT BAL) 2014

Sungai Putih (PT BAL) 2014


ASSESSMENT REPORT


Baturus (PT BAL) 2014

Sime Darby has achieved 39 management units in Malaysia and 21 Management Units in Indonesia RSPO certified. There was change of the Time Bound Plan under Sime Darby cause the Sime Darby postpone the others certification process. Change of the Time Bound Plan explanation: PT Mitra Austral Sejahtera. There are social issue still unresolved from the Serikat Petani Kelapa Sawit (SPKS) Sanggau, however the improvement are in progress. Sime Darby has informed the Time Bound Plan progress, MUTUAGUNG has consider that Sime Darby still comply with the RSPO requirement for partial certification.


ASSESSMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

Jl. Raya Bogor Km 33,5 No. 19, Cimanggis - Depok 16953

Telp. +62-21-8740202; Fax +62-21-87740745/46

Website: www.mutucertification.com Email : [email protected]

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

S-1 1. M. Syarip Lambaga (Lead Auditor). Bachelor of Agriculture from UNHAS, Master of Science Program Post. Harvest Technology of IPB, trainings has been followed among others, Lead auditor training RSPO, In House Training for ISO 9000 and 14001 Lead Auditor Training SFM as Social Expert, ISO 22000 Lead Auditor Training, ISPO Lead Auditor Training, and Malcolm Baldrige Training. Having experience in the plantation of more than 5 years, and experience as a food safety auditor for more than 5 years, team members evaluator SNI BSN Awards, and as a team member for socialization RSPO smallholder and large estates conducted by DMSI 2006-2009. 2. Octo H.P.N Nainggolan (Auditor). Indonesian citizen, Bachelor of Agriculture, majoring of Social Economics of Agriculture (Agribusiness). Seven years working experience since 2004 at oil palm Plantation Company in Indonesia and followed several trainings namely: Training of Conservation of Natural and Biological Resources in supporting HCV, Basic Plantation Management Program, Plantation Integrated Pest Management training, Management System Certification (ISO 9001-2008/SNI 19011-9001:2008), Environment Management System (ISO 14001:2004), SMK3 based on OHSAS, RSPO Lead Auditors Training Course endorsed by Proforest and Wildasia, Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course, supply chain certification system training and RSPO Renewable Energy Directive Lead Auditor training. Currently he worked as an auditor at Certification Body. 3. Sofyan Hadi Lubis (Trainee Auditor). Master’s Program in Environmental and Natural Resource Management, Institutut Pertanian Bogor (IPB) and Bachelor of Social Economic Agriculture, Gadjah Mada University (UGM). Participated in several environmental management workshops, climate change mitigation training and adaptation for agricultural productivity in Southeast Asia, Carbon Forum Asia Update and EIA lecture. He has also been involved as a research team at the Centre for Research, Development and Climate Change Policy (Puspijak) Ministry of Forestry of Indonesia - Bogor and Research Team in cooperation program IPB - ETH Zurich Switzerland - NUS Singapore. He has followed Auditor training ISPO, Auditor/Lead auditor Management System Certification (ISO 9001-2008), and awareness training the RSPO certification system. Furthermore, he also worked as a staff environmental/agricultural in consulting firm and done the preparation of EIA (KA-ANDAL). 4. Doni (Auditor). Master's Program In Sociology Rural. Have been following the certification of Sustainable Production forest management (PHPL) Ecolabel of Indonesia (LEI) in 2008 and Training Up-Grading at the Pusdiklat PHPL Forestry Bogor in 2010. Since 2003 has been a several times to audit certification of PHPL, among others: PT Bintuni Straits Bay Main Agro Mina Prop. West Papua in 2010 PT. ITCIKU Prop. In 2009, PT Kaltim Memberamo Indan Agro Mandiri in 2008, PT Arara Abadi Prop. Riau in 2005, PT INHUTANI III (Nanga Pinoh) Kaltim, 2003. Since 2005-present work free lance in BAPPENAS, Ministry of Regional development is lagging behind (KPDT) and Ministry Director General Cipta Karya PU as an evaluation team. 2006-2007 working in JICA-UN-HABITAT and UNDP. On Surveillace-1, he conducted an assessment on the employment and social aspects. 5. Brigitta Prita (Observer). Bachelor of Forestry, Department of Forest Resources Conservation and Ecotourism, Bogor Agricultural University. Attended training ISPO Auditor training and certification of ISO 9001:2008 quality management system (QMS), awareness training the RSPO certification system, and In House Training ISO 22000 : 2005 SMKP.

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT


2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

S-1 Number of auditors : 4 auditor Number of days for S-1 at site : 5 working days Number of working days for S-1 at site : 20 Working days

2.3.2 Detail process of assessment

S-1 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PT PT Padang Palma Permai, PT Perusahaan Srikuala and PT Perkasa Subur Sakti to the requirements of National Interpretation of the Republic of Indonesia from RSPO Principles and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008 and Scheme Smallholders October 2009) and Supply Chain Requirement for CPO Mill The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site. Some opportunities for improvement of the results S-1 delivered by the auditor MAL to the management unit and the results are the subject will be verified at the next assessment phase S-1. Improvement of findings from main assesment findings were observed by auditors at this S-1 assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of S-1. The assessment program please finds Appendix 2.

2.3.3 Locations of Assessment

S-1 The auditor team has chosen locations for sample assessment. Criteria ’s to choose the locations for sample assessment are: 1. The locations should represent the operation unit of each area. 2. The locations are considered crucial and have an impact on the environment, the employment, etc. 3. Special considerations that rose from the public consultation, which are substantial and crucial. Locations that were visited, such as: Tamiang Estate:

1. Empty Fruit Bunches Application, Division I, Block A-015.Observation on the implementation of soil fertility improvement by using the empty fruit bunches approach and interview with workers regarding the PPE, wages, application procedure, work accidents, social insurance and complaint mechanism.

2. Harvest, Division I, Block A-014. Observation on harvesting activity and compliance on the procedure as well as the interview with workers regarding the labor, wages, social insurance, social facilities and occupational health and safety.

3. Tanjung Gelumpang Village. Conducting interview with head of village (datuk) regarding the relationship between company and local community, complain mechanism from community to company, the realization of company’s CSR, environment pollution by the company, employment opportunity for local community as well as the indigenous right of local community.

Batang Ara Estate: 1. The HGU Poles No.31 and No.42 (Block D-05).Observation on the operational legal poles’ maintenance that

were in a good condition, side by side with the PIR-Trans Rimba Utama PTPN 1. 2. The HGU Poles No.9 (BlockC-06).Observation on the operational legal poles’ maintenance that were in a good

condition, side by side with Pantai Tinjau Village. 3. Chemical sprays’ maintenance, Division II Block C-04. Observation on sprays’ maintenance activities and

interview with workers regarding the PPE usage, wages, facilities, working accident’s handling process, complaint mechanism, sexual assaults, medical examination, workers’ right and social insurance.

4. Block A-018. Implementation and application of sloping areas’ maintenance by using the terrace counture.


ASSESSMENT REPORT


5. HCV Block D08. Observation on areas and HCV maintenance. 6. Kebun Batang Ara Village. Conducting interview with head of village (datuk) regarding the relationship

between the company and local community, complain and complain mechanism from community to company, the realization of company’s CSR program, environment pollution due to company’s activity, work opportunity for local community as well as indigenous right of local community.

Blang Simpo Mill:

1. Blang Simpo Mill. Conducting observation on fresh fruit bunches (FFB) handling process, which starts from FFB sortation to the dispatch, implementation of the occupational health and safety, followed by visiting the IPAL ponds, interview with operator personnel in processing station.

2. Hazardous waste Warehouse. Observation and interview with warehouse personnel regarding the hazardous waste maintenance, the implementation of regulation, which is related to hazardous waste maintenance, as well as the information of the hazardous waste balance.

Blang Simpo 2 Estate: 1. Boundary’s area (Block F-10). Observation on operational legal poles’ maintenance, which are in a good

condition, and side by side with local communities’ plantations. 2. Chemical Sprays, Division 2, Block E-02. Observation on sprays’ maintenance activities and interview with

personnel regarding the PPE’s usage, wages, facilities, work accidents’ handling process, complains mechanism, sexual assaults, medical examination, employees’ right and social insurance.

3. Fertilization, Division 3, Block F-09. Observation on fertilization activities with Kieserite fertilizer for plantation fertility and interview with personnel regarding the PPE usage, wages, facilities, work accidents’ handling process, complain mechanism, sexual assaults, medical examination, employees’ right and social insurance.

4. Harvesting, Division 3, Block F-02. Observation on harvesting activity and obedience toward working procedure as well as interview with personnel regarding the employment, wages, social insurance, social facilities and occupational health and safety.

5. HCV N0.4 Block 134/E004. Field observation regarding the HCVs’ maintenance. 6. Hazardous wastes warehouse. Observation related to chemical maintenance and plantation hazardous

waste maintenance. 7. Fertilizers’ warehouse. Observation related to fertilizers usage and types of fertilizers were used. 8. Chemical’s warehouse. Observation related to chemical usage. 9. Polyclinic.Observation on polyclinic’s activity and interview with paramedic (midwives) regarding the number

of visits, health programs, medical examination, infectious waste handling process, facilities that are available in the polyclinic, etc.

10. Housing, Division I BSE 2. Observation and interview with wife’s’ of personnel regarding the housing facilities that are provided by the company, domestic waste’s handling process, clean water facility and electricity that were provided by the company such as artesian well, complain mechanism in case of damage in the house and worship facility (mosque).

11. TPAS (Landfill). Field observation for the domestic waste storage with a distance of ±3-4 Km from residence. 12. Tualang Village. Conducting interview with head of village (kecik) regarding the area of ± 800 ha that will be

enclaving, the relationship between company and local community, complain and complain mechanism from community to the company, the realization of company’s CSR program, environment pollution due to company’s activity, work opportunity for local community as well as the indigenous right of local community.

13. Jengki Village. Conducting interview with head of village (keucik), local contractor, tuha peut (village leader) regarding the relationship between company and local community, complain and complain mechanism from community to the company, the realization of company’s CSR program, environment pollution due to company’s activity, work opportunity for local community as well as the indigenous right of local community.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.


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Summary of stakeholder consultation process Consultation of stakeholders for PT Padang Palma Permai, PT Perusahaan Sri Kuala, and PT Perkasa Subur Sakti was held by public consultation meeting with internal stakeholders by interviews and local stakeholders conducted by visits to villages and interviews with local peoples. Numbers of input from stakeholders were clarified by PT Padang Palma Permai, PT Perusahaan Sri Kuala, and PT Perkasa Subur Sakti.

2.4.2 List of stakeholder contacted

Please find appendix 3

2.5 Determining Next Visiting

The next visit S-2 will be determined one year after this S-1 (February - 2014).


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3.0. ASSESSMENT RESULT 3.1. Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted an assessment of Blang Simpo POM – PT Padang Palma Permai, PT Perusahaan Sri Kuala, PT Perkasa Subur Sakti (Sime Darby Group) operation consisting of one (1) mill and four (4) oil palm estates.

During the assessment, there were one (1) Nonconformities were assigned against Major Compliance Indicator(s) seven

(7) nonconformity(s) were assigned against Minor Compliance Indicators; and zero (0) nonconformance(s) against

supply chain requirement for CPO mill and five (5) opportunity(s) for improvement were identified.

Further explanation of the non-conformities raised and corrective actions taken by the company are provided in section

3.5. The company has already prepared and implemented the corrective action(s) that had been reviewed and accepted

by Auditor(s) in form of documentation evidence(s) e.g. (document record/photographic). Those corrective actions taken

that consist of one (1) major non-conformity had been closed out and shall be verified during next assessment.

MUTUAGUNG LESTARI found that Blang Simpo POM – PT Perkasa Subur Sakti and its supply base (PT Padang

Palma Permai, PT Perusahaan Sri Kuala, Sime Darby) complied with the requirements of RSPO Principles & Criteria

and National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of

Indonesia - RSPO INA-NIWG, May 2008.

Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is continued.

Ref Std.

VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

1.1 Plantation and Palm Oil Factory have to give adequate information for stakeholders in appropriate language and forms, to ensure the effective participation of stakeholders in decision-making.

Information request has been regulated in the SOP of RSPO/1.1/PI, on 04 March 2009. The mechanism are: (1)the information request is submitted to the operation unit and forwarded to the manager of operation unit; (2) The incoming letter will be studied by the manager of operation unit; (3) Head of section will draft the reply and ask an approval from unit manager; (4) Reply is given. Mechanism to response the information request is conducted 14 days. The documentation of information request and its reply will be kept for 5 years, which stated in the SOP of record management of PT PPP & PT PSK document no. 011/PC-PPP-PSK/III, on 02 March 2011. The information request of stakeholders and reply from the company are documented in the stakeholder’s logbook. For instance, information request and its reply in 2013 such as: a. TME & BAE: Ministry of Finance of Republic of Indonesia, Banda Aceh borrowed the book, data record and information

on 31 December 2013 has been responded by certificate owner on 1 January2014, with a follow up result by the manager of operation unit.

b. Blang Simpo mill: Work opportunity’s request in PT Perkasa Subur Sakti on03 September 2013.Has been replied by the certificate owner on 03 September 2013 and stated that there is no work opportunity yet.

c. Blang Simpo Estate I:invitation for the coorditation meeting in order to welcoming the commemoration fo security (SATPAM), the 33 times, in 2013 from KAPOLRES Aceh Timur region with letter no. B/1240/XI/2013 on 18 November 2013. Has been responded by the certificate owner by attending the coordination meeting on 22 November 2013.

d. Blang Simpo Estate 2:Grant request for operation vehicle maintenance for the police department of Aceh Region, Resor Langsa on30 Agustus 2013with a letter no. B/1051/VIII/2013.Has been resonded by the certificate owner by


ASSESSMENT REPORT


disburse the grant amount iDR. 6,000,000,- on 8 September2013.

More over, based on interview with head of village (Kecik Cek Mbon), the infomration request regarding the work opportunity has been replied by the company.

Status: Full Compliance

1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes.

Company’s’ documents which are available for public (public/stakeholders)stated in the document No. 001/TME-BAE/RSPO Such as: 1) HGU/Business license, 2) SIUP/IUP, 3) Perijinan, 4) HVCV, 5) SIA, 6) Waste/Application, 7) Environment impact assesment, 8) RKL/RPL, 9) occupational health and safety, 10) Employees’ data, 11) FFB Production’s data, 12) Hazardous waste’s data, 13) Specification of factory’s machines, 14) Vehicles’ specification, 15) tax and 16) insurance. Meanwhile for Blang Simpo Mill, BSE 1 and BSE 2 the company’s documents that are available for public have been mentioned in the SOP of information request, document’s no. PI/01/V/PPP-PSK-PSS/12 such as:

1. Legal: Permits’ Documents (location permit, plantation permit, HGU certificate or documents which related to HGU). 2. Environment: document of environment impact assessment and social (AMDAL), maintenance report and

environment monitoring (RKL/RPL report). 3. Social: Documents of social activities and relationship with community, for instance social report and pollito

consultant, documentation on healthy and occupational safety and documentation on sustainable improvement program.

Shelf life of the documents is 5 years, which mentioned in the sop of document’s handling of PT PPP & PT PSK, document’s number 011/PC-PPP-PSK/III on2 March 2011at point 6, about document’s shelf life and destroy period.


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

2.1 There is compliance with all applicable local, national and ratified international laws and regulations.

As previously was explained in ST-2 report that to comply with the law and regulation, the certificate owner has drafted the procedure to fulfill the law and regulation (RSPO/P&C.2.1/PUUP) No. 021/PPP-PUUP/IV/11 on 12 April 2011. There is no revision/ change on this procedure yet. Certificate owner has tried to implement the entire applicable law and regulation in local level, national level as well as international level by:

Drafting the matrix of applicable law and regulation in local level, national level as well as international level. This matrix contains the list of applicable law and regulation, articles that have been implemented as well as the progress of the implementation, list of permits and applicable regulation in local level, national level as well as international level.

Conducting the overlay between the applicable regulation and permit with the operational activity, for instance, the compliance on the government regulation no. 27 in 1997 article 15 regarding the riparian protection and ministry of environment regulation No. 18/1992 article 2a about the management permit for the hazardous waste.

Wage for employees has complied the Aceh Government regulation number 78 in 2013 regarding the minimum wage for Aceh province in 2014.

Collective labor agreement (PKB) for period of 2012-2014 that has been approved by the ministry of manpower and transmigration of republic of Indonesia, Directorate General of industrial relation’s management and manpower social insurance with a letter number: B.98/PHIJSK-PKKAD/PP&PKB/VI/2012, on 19 June 2012.

Conducting the evaluation based on procedure.

However, there still a work agreement for certain duration available in Blang Simpo mill that has been extended more than one time, for instance, contract on behalf of Ikhwani. This finding is not in line with the KEPMENAKER Number100 in 2004.Non-compliance CAR.2014.01 with a major category.


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Observation on 4 April 2014. Root cause: The unit management of Blang Simpo mill is not understand the PKWT regulation Corrective action:

There are 21 personnel with a PKWT contract that are not extended by the management of Blang Simpo mill which is in accordance with the termination contract No. 379 up to No. 390 /POM/BSF/IV/2014 that explain, start from 15 April 2014 these personnel temporary contract agreement will be terminated.

Conducting the socialization of regulation on the manpower, which is in accordance with the law No.13 in 2003 and decision letter from the ministry of manpower No.100 in2004, which was implemented on 4 April 2014 and was attended by 13 participants? (The attendance sheet and copy of outline are available).

Preventive action:

The Unit management of Blang Simpo mill will not use the temporary working contract agreement (PKWT).

Conducting the coordination and consultation to related institutions (manpower agency of Aceh timur District) regarding the manpower issue.

CAR.2014.01 Major nonconformance is closed with observation. The evaluation mechanism that comply the entire regulations related to plantation activity as well as the palm oil mill has conducted according to below steps:

1. Make an update and evaluation on each article in case there is a revision on the policy and regulation and or at

least every 4 months.

2. Undertake the field visits’ assessment to ensure that the policy and regulation have been well implemented.

3. Submit reports to the RSPO team in case there is a finding of non-compliance.

4. Communicating with the Government institutions.

5. Downloading and searching other credible resources as well as conducting the socialization to staff, employee and

to community if needed.

Based on documents’ reviews, the certificate owner has evaluated the compliance on the policy and regulation as stated in the compliance procedure of law and regulation (RSPO/P&C.2.1/PUUP) Number 021/PPP-PUUP/IV/11 on 12 April 2011. The evaluations have undertaken every 4 months and the evaluations’ documents are well storage. In 2013, there are 4 local regulations and 104 laws and applicable regulations in both national and international level that have been evaluated. However, there is a document that has not yet evaluated related to revision on the ministry of agriculture regulation No. 26 in 2007 into the ministry of agriculture regulation No. 98 in 2013. Non-complianceCAR.2014.02with a minor category

Major 2.1.1 Minor 2.1.4

Status: CAR.2014.01 with a major category CAR.2014.02with a minor category

2.2 The right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights

As previously mentioned in the stage-2 report, the certificate owner already has the legal document related to land ownership, such as: PT. Perusahaan Perkebunan dan Pertanian

a) Location permit in a form of Aceh Governor Decision letter Number: 593/10/1987 regarding the location permit and land acquisition/ land purchase for oil palm plantation and palm oil processing of PT Perusahaan Perkebunan and Pertanian. The location permit letter has been released on 25th July 1987. The scope of this permit is an area of 6.500 ha that located in Tanah Terban and Blang Simpo village, Karang Baru and Paureulak sub district, Aceh Timur District; this location permit is a mix of 3 plantations which are Tamiang Estate which located in Karang Baru sub district, Blang Simpo 01 and 02 Estate that located in Paereulak sub district.

b) Decision letter from Directorate general of Agriculture department Number: HK.350/E5.58/01.98 on 21st January 1998 regarding the approval on palm oil plantation business principles of PT. Perusahaan Perkebunan dan Pertanian with an area of 2000 Ha in Peureulak sub district, Aceh Timur district, Aceh province. Mill, which has no record on the FFB, will be processed in PT. PSS’s mill with a capacity of 30 Tons FFB/Hour. This permit is part of


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PPUP for an area of 1.239 Ha that has a problem with PT. Para Sawita. c) Decision letter from Directorate general of plantation production management/Bina Produksi Perkebunan Number:

HK.350/203/Bun.5/III/2001 on 16thMarch 2001 regarding the application letter for plantation business of PT. Perusahaan Perkebunan dan Pertanian covering an area of 6.558 Ha, type of plantation is palm oil, the mill’s capacity is 25 Tones/Hour, the location is in Karang Baru sub district, Peureulak, Aceh Timur district.

d) The HGU certificate No. 131 in 2002; valid until 10th May 2027, based on decision letter from the BPN Agency in 24thMarch 2000 and 11thMarch 2000, Number: 14/HGU/BPN/2000 and 14/HGU/BPN/2000/A/7. In Tanah Terban plantation, Karang Baru sub district, Aceh Timur district. The measurement letter that has been released in 31th July 2002 Number: 16/2002 with an area of 1.451,99 ha. The HGU certificate is release on behalf of PT Perusahaan Perkebunan dan Pertanian on 11th May 2002 by head of land agency Aceh Timur Sub district. The revision of company’s name into PT Padang Palma Permai has been stated in the annex of the HGU certificate that has been endorsed by head of land agency of Aceh Tamiang sub district on 19thAugust 2003,decision number: 1558/2003 and 343/2003. The areas that are including in the HGU certificate further called the Tamiang Estate. The revision of company’s name is based on notary’s certificate by Popie Savitri Martosuhardjo Pharmanto, SH on 5 th July 2001 and decision letter from the ministry of law and human right Number: C-08596 HT.01.04.TH.2001 on 18thSeptember 2001.

e) HGU certificate Number: 2 in 1993 that valid until 31th December 2022 based on the decision letter from the ministry of home affairs Number. 61/HGU/DA/1987 on 3rd December 1987 in Paya Meuligoeu Village, Peureulak Sub district, Aceh Timur District. Land map Number: 03/1980, on 9th Oct 1980, covering an area of 2.000 Ha. The HGU certificate is on behalf of PT Perusahaan Perkebunan dan Pertanian on10th March1993 by head of land agency Aceh Timur district. The revision of company’s name into PT Padang Palma Permai has been stated in the annex of the HGU certificate that the revision of the company’s name has been endorsed by the head of land agency of Aceh Tamiang District on19thAugust 2003, decision Number: 1557/2003 and 342/2003. The areas that are covered in the HGU certificate further called the Blang Simpo 1 and 2 Estate.The revision of the name is based on the notary’s certificate that prepared by Popie Savitri Martosuhardjo Pharmanto, SH on 5 th July 2001 and letter from the ministry of law and hman rightNumber: C-08596 HT.01.04.TH.2001 on 18th September 2001.

f) The HGU certificate number 149 in 2011, that is valid until 30th December 2034, based on decision letter from head of land agency of republic of Indonesia number.72/HGU/BPN RI/2011 on 17th Oct 2011 in Seuneubok Lapang and Alue Gure village, Peureulak Timur sub district, Aceh Timur district. Measurement letter number: 01/2011 on 11th Oct 2011, covering an area of 2.993,2319 Ha. This HGU certificate is released on behalf of PT Padang Palma Permaion17th October 2011.

g) Decision letter of Bupati Aceh Timur Number: 525/666/2011 on 24th November 2011, regarding the location permit to develop the palm oil of PT. Padang Palma Permai which is located in Cik Mbon village, Peureulak Timur sub district, Aceh Timur, covering an area of 1.239 Ha.

PT Perkebunan Sri Kuala

a) Location permit for an area of 727,9 ha which based on decision letter from land agency of Aceh Timur district on 10th June 1997 Number: 08A/IL.P-Prj/BPN/ATIM/1997; the location permit is an extension from the previous permit. For an area of 401 ha, there is no location permit because this area has been owned 1962 that is stated in the HGU decision letter Number: 13/HGU/BPN/93 – stated that the land is belong to PT Sri Kuala based on decision letter from the ministry of agriculture, on 16th August 1962 Number: SK.II/39/Ka regarding the business license award

b) Business license permit in a form of application letter for agriculture business license permit, number: HK.150/188/Bun.5/III/2001 on behalf of PT. Perusahaan Perkebunan Industry& Niaga Sri Kuala, released bythe directorate general of plantation production management/ Bina Produksi Perkebunan on 15th March 2001. The business license is given for a plantation with an area of 1.121 ha that located in Karang Baru and Peureulak sub district, Aceh Timur district; and 1 (one) unit of palm oil mill with a capacity of 25 tones FFB/Hour.

c) HGU Number 2 in 1993; which is valid until 31st December 2024; based on decision letter from the head of land agency number: 13/HGU/BPN/1993 on 31st May 1993. Situation picture (measurement letter) released on 8 September 1990 No: 23/AT/1990, covering an area of 401 Ha. HGU certificate is on behalf of PT. Perusahaan Perkebunan Industry& Niaga Sri Kuala (abbreviation: PT Sri Kuala) on 18th November 1993 by head of land agency of Aceh Timur sub district. The covering area in the HGU certificate further known as Batang Ara Estate, where the FFBs from this area are supplied to Tamiang Mill.

d) HGU certificate number 132 in 2002, that valid until 11thAugust 2037, based on decision letter from the head of land


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agency on 30th September 1999 and 3rd July 2002, decision number: 86/HGU/BPN/1999 and 86/HGU/BPN/99/A/13. Measurement letter is released on 12ndAugust 2008 Number: 01/2002 that covers an area of 727.9 ha. The certificate is on behalf of PT. Perusahaan Perkebunan Industry& Niaga Sri Kuala (abbreviation: PT Sri Kuala) on 12nd August 2002 by head of land agency of Aceh Timur District. The area that covers by the HGU certificate further known as Batang Ara Estate where the FFBs from this area are supplied to Tamiang Mill.

e) Decision letter from the ministry of agriculture of Republic of Indonesia, number: HK.350/E5.906/10.96 on 25th October 1996, regarding the approval on the plantation business principles of PT. PSS with mill’s capacity permit amount 30 tones FFB/Hour in Lubuk Pempeng village, Babahkreung village, Peureleulak Sub district, Aceh Timur District.

Verification on the non-compliance No. NC-2011.10 on 3rd February 2014 The certificate owner has been tried to bring back the missing boundary procedure by sent letters to local office of national land agency of Aceh Province with a letter number: 184/TAN/P3/IV/2011 on 21stApril 2011 and 71/BSE/IV/2011 on 20th April 2011 regarding the returning of HGU poles. Local office of national land agency has responded this request by conducted field visit and undertaken coordination that have been proved with an available minutes of coordination meeting between certificate owner and local office of land agency in order to respond the returning request/ the evaluation of HGU poles procedure of PT. Padang Palma Permai (PT. PPP) and PT. Perkebunan Sri Kuala (PT. PSK) on Wednesday, 21st December 2011. The certificate owner and team of local office have conducted the inventory of poles procedure and drafted the program for returning the poles. The non-compliance of NC-2011.10 is closed. The certificate owner has had the program for HGU poles maintenance in Tamiang estate (TME), Batang Ara Estate (BAE) and Blang Simpo Estate (BSE) for period 2013-2014 and has been signed by each estate manager. The poles maintenance program is covering the poles maintenance every 3 months, annual poles’ painting and monthly monitoring. Based on documents’ review, TME, BAE and BAE have conducted the monitoring in 2013-2014 every 3 months, which are in March 2013, in June 2013, in September 2013 and in December 2013. The monitoring of poles’ maintenance in BSE has been implemented based on approved work program. Based on field visits in the TME, BAE and BSE, there are well maintained poles such as stake number 11-13, 21-24, 27-28, 30 and 37, 40-41, 34, 50 and 51. Verification NCR No. 2011.11 on 3rdFebruary 2014. On the ST-2 audit, there is a finding of non-compliance No. 2011.09, where there is no sufficient proof on land conflict for an area of 877 Hain Blang Simpo 01 Estate. Based on interview with the Plantation Support Department (PSD) this area has been approved by the management for enclaving. This also agreed by the head of forestry and plantation agency Aceh Timur district that explains that the conflicted area of 877 Ha has had a mediation process between the local governments Aceh Timur district. The certificate owner has been agreed to release this are to government because this area has been used as a residential place for some communities. At this moment, this area is under the measurement process by the national land agency. Related to occupation area in HGU area of Batang Ara Estate (Block 37 and Block 17) on behalf of Mr. Abdul Manan with an area of 1.2 Ha, Mr. Abu Sofyan with an area of 12 Ha, and Mr. Sofyan with an area of 7,49, the conflict has been settled by a collective meeting and the agreement is available. Based on interview with the occupation owner and the management of PT. PSK. PT PSK-BAE that both parties have had an agreement letter, such as an agreement with Mr. Sofyan, the owner of palm oil plantation which covers an area of 7.49 ha in Alur Selasas village, Karang Baru Sub district, Aceh tamiang district, Block D002 Division III BAE andMr. Abu Sofyan, the owner of an area of 12 ha in Lubuk Sidup village, Sekerak sub district, Aceh Tamiang district, Block D010 Division III on 6 February 2014. The agreement stated that both parties will not interference or district the operational activity in the field, and will assist each other, will not expand the plantation area and both parties are willing to report any trading activity to the company.Non-compliance verificationNCR No. 2011.11 are closed. Regarding the conflict between certificate owner and PT. Para Sawita about the location in Cik village, Peureulak and Rantau Selamat sub district, Aceh Timur district, with an area of +/- 1.200 Ha, the final decision has been reached from the court with several process below:


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On the PK process, the decision is the certificate owner won the case against the PT. Perusahaan Perkebunan & Dagang Para Sawita (PT.Para Sawita) regarding the area that has had the land release permit in accordance to Kepmenhut Number: 741/Kpts-II/1996 on 25 Nov 1996, covering an area of 1.071 ha and area that has a location permit which in accordance to decision letter from land agency from Aceh Timur district No. 08.b/IL.P/BPN/ATIM/1996 on 20 September 1996, covering an area of 2.562 Ha in Cik Mbun village, Peureulak and Rantau Selamat sub district, Aceh Timur district, Aceh Province, based on decision of PK No. 463PK/Pdt/2009 on 19 July 2010.

In 2011 the state court in Langsa has grant the request for unmanning in accordance with procedure that stated in the law and regulation No. 10/Pen.Pdt.G/199/PN.Lgson 1 March 2011 regarding the grant of request from PT PPP and pointed the PN IDI to conduct the unmanning based on applicable procedure as stated in the law.

Regulation Number: 10/Pen.Pdt.G/EKS/1999/PN-LGS on 25 May 2011 is available. The regulation is about the grant of

request on the right recovery on behalf of PT. PPP.

The minute of execution is available, No. 10/EKS/PDT/1999/PN-LGS on 6 June 2011.

Based on the execution Number: 10/EKS/PDT/1999/PN-LGS on 6 June 2011, Bupati of Aceh Timur release a location permit No. 525/666/2011 on 24 November 2011regarding the grant of location permit for establishing of palm oil plantation of PT. Padang Palma Prima which located in Cek Mbon village, Peureulak Timur sub district Aceh Timur district which covers an area of 1.239 Ha.

The certificate owner has had the valid business license in accordance with an applicable regulation. The existing HGU certificate can proof the business license. Based on the interview with division head of land agency of Aceh Tamiang sub district and head of land agency of Aceh Timur district, there is information that the certificate owner got the business license as well as the location permit. The conflicted area with PT. Para Sawita for an ara of 1.200 Ha has been won by the certificate owner in the state court of langsa and the status is “ikrah”. The problem with the claim over an area of 877 Ha in Blang Simpo 01 has been mediated by local government of Aceh Timur sub district through the enclaving process and currently is waiting for the measurement process from the land agency office of Aceh Timur district. This should become an important thing for the audit team to observe on the next surveillance/ audit. In order to solve land disputes, the certificate owner has had the SOP for conflict resolution number: PK/04/PPP-PSK-PSS/V/12 revisi 1 on 1 May 2012 that contains the procedure for claim, settlement process and further management after the settlement.


2.3 Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent.

Not changing, as founded on the second stage of the audit that there is a documentation/ record, which stated that, there is no indigenous right within the company’s operation area. This is based on bellow’s proofs:

- Letter No.140/190/2011 Datok Penghulu, Kebun Tanah Terban village (has been signed on 3 May 2011) based on letter from head of Culture Tourism, youth and spots agency office, Aceh Tamiang sub district No. 430-432/202 on 20 April 2011 regarding the local culture and historical site which are based on law No. 5 in 1992 and law No. 11 in 2010, Kebun Tanah Terban village has no original culture that is created by local community of Kebun Tanah Terban village and has no historical site.

- Letter No.140/35/2011 Datok Penghulu, Kebun Batang Ara village (has been signed on1 May 2011) based on letter from head of Kebudayaan Pariwisata Pemuda and Olah Raga office, Aceh Tamiang sub district No. 430-432/202 on20 April 2011 regarding the local culture and historical site which are based on law No. 5 in 1992 and law No. 11 in 2010, Kebun Batang Ara village has no original culture that is created by local community of Kebun Batang Ara village and has no historical site.

- Based on interview with head of plantation agency of Aceh Tamiang sub district and head of plantation and forestry agency of Aceh Timur sub district, that there is no indigenous land within the area of PT. PPP and PT. PSK.


PRINCIPLE #3 Commitment to long-term economic and financial viability


ASSESSMENT REPORT


3.1 There is an implemented management plan that aims to achieve long term economic and financial viability.

Certificate owner has had a management plan to gain the long-term economic and financial stability through the Estate Cost Analysis and POM Cost Analysis in 2003 – 2018. The certificate owner conducting the long-term evaluation through annual budget meeting. In the annual budget meeting, the evaluation of ongoing budget realization and financial forecast for the next year. In short, the Estate Cost Analysis and POM Cost Analysis in 2003 – 2018 are presented in below table: PT PSK-Tamiang Estate

Description Budget

2013/2014 PY2

2014/2015 PY3

2015/2016 PY4

2016/2017 PY5

2017/2018

Area Statement (Ha)

Mature 708 606 802 811 834

Planted Area 1.317 1.317 1.317 1.317 1.317

FFB 13.514 12.342 14.207 15.094 16.346

Yield/Mature (Mt) 19.08 20.38 17.72 18.60 19.61

Direct Cost (000) 6.715.290 5.835.368 6.718.364 7.152.880 7.690.536

Fixed Cost (000) 2.77.041 3.967.588 4.108.747 4.392.176 4.714.408

Cost/Kg TBS 702.10 794.28 762.11 764.87 758.89

PT PSK-Batang Ara Estate

Description Budget

2013/2014 PY2

2014/2015 PY3

2015/2016 PY4

2016/2017 PY5

2017/2018

Area Statement (Ha)

Mature 802 641 512 381 459

Planted Area 802 641 512 381 459

FFB 12.332 8.537 6.481 4.775 5.680

Yield/Mature (Mt) 15.39 13.32 12.67 12.54 12.37

Direct Cost (000) 7.124.203 4.974.796 4.215.626 3.597.234 4.815.154

Fixed Cost (000) 2.053.297 1.838.229 1.859.166 1.883.225 1.990.155

Cost/Kg TBS 744.20 798.20 937.35 1.147.7 1.198,00

PT. PPP – Blang Simpo Estate-02

Description Budget

2013/2014 PY2

2014/2015 PY3

2015/2016 PY4

2016/2017 PY5

2017/2018

Area Statement (Ha)

Mature 1991 1735 1623 1528 1510

Planted Area 2307 2251 2251 2251 2251

FFB 36.225 29.189 26.876 25.077 25.257

Yield/Mature (Mt) 18.20 16.83 16.56 16.42 16.73

Direct Cost (000) 19.039.325 17.118.334 14.934.799 12.884.043 12.232.545

Fixed Cost (000) 6.695.439 7.214.197 7.353.901 7.496.330 7.641.538

Cost/Kg TBS 710.41 833.63 829.31 812.70 786.86

PT. Perkasa Subur Sakti – Blang Simpo Oil Mill

Description Budget

2013/2014 PY2

2014/2015 PY3

2015/2016 PY4

2016/2017 PY5

2017/2018

FFB (Ton) 87.867,6 75.185 71.754 69.372 67.792

OER 22.25 22.5 22.5 22.75 23

KER 5 5 5 5 5

CPO (Ton) 19.551 16.917 16.104 15782 15592


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PK (Ton) 4.393 3.759 3.579 3.469 3.390

Tot Palm Product 23.944 20.676 19683 19251 18982

Mill Cost (000) 5.885.426,3 6.131.430 6.719.996 7.390.793 8.123.566

Fixed Cost (000) 3.368.865,2 3.705.752 4.076.327 4.483.960 4.932.356

Cost/Kg TBS 105.32 130.84 150.84 171.18 192.59

The calculation of financial plan for long term as presented above has calculated the quality of planted progeny, the projection over thetrendof FFB, extracting level of mill, trend of the production cost, price projection and the financial indicator such as IDR rate over the USD. The company has had the replanting program, such as:

Long Range Replanting Program 2010-2021, which has been approved by the HPUI (Head Plantation Upstreem Indonesia).

Short study on the replanting impact on environment and social of PT. Padang Palma Permai that has been drafted by Aksenta in February 2012 and

Mitigation document on the replanting impact.

Based on document’s review that the replanting in Tamiang Estate has been started since 2010 and will end in 2018, and covers an area of 1.317,4 Ha and the replanting program in Batang Ara Estate will start in 2014 and end in 2021, covers an area of 801,51 Ha. The realization of replanting in Tamiang Estate has been started and until 2013, the replanting already covers an area of 446,22Ha in Block A003, A006, B001, B003, A017, A018, A019, A015 and A008.


PRINCIPLE #4 Use of appropriate best practices by growers and millers

4.1 Operating procedures are appropriately documented and consistently implemented and monitored.

Based on the observation of the plantation operation and the implementation’s evaluation, it’s found that some workers have had implemented several activities, such as the Land Clearing activity (block A-05 Tamiang Estate), maintaining (spraying chemist) and harvesting (block A-014) are in accordance with the procedure. Meanwhile the observation result on the operation activity in Blang Simpo POM and from the evaluation of processing implementation, its known that the certificate owner has had implemented several activities, such as FFB grading, the processing has been in accordance with the applicable procedure. The certificate owner has regularly conducted the evaluation activity and monitoring on the operation every 6 months. The evaluation of plantation’s operation activity has been conducted within the Plantation Advisory, for the evaluation of mill’s operation activity has been conducted within the Mill Advisory. Based on observation in the field, the improvement has been undertaken especially to improve the production such as by establishing the Road site pit, cultivating the Beneficial Plant (Nepherolephis), and empty fruit bunches application. Field study based on documentation and field observation shown that every operation activity either in plantation or mill has been well recorded and documented in the supervisor’s daily report (foreman), daily production report and monthly report.


4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield.

Based on the document’s review, it’s known that the certificate owner has not conducted the gradual soil analysis. This finding is not complied with the related applicable procedure and the efforts to improve soil fertility. Non-compliance CAR.2014. 03 with a minor category. Based on document’s review on the effort to improve soil fertility, its known that the certificate owner has undertaken the effort by implemented the chemical fertilization, empty fruit bunch application and liquid waste application.

Minor 4.4.2 Status: CAR.2014. 03 with a minor category


ASSESSMENT REPORT


4.3 Practices minimize and control erosion and degradation of soils.

Certificate owner has had the marginal soil map as stated in the Identify Marginal Land document, Slope Class and Management Soil of PT PPP and PT. PSK. The marginal soil map has given the information about type of soil and the sloping level in Tamiang Estate and Batang Ara Estate. Based on this documents, its known that the work area in Tamiang Estate and Batang Ara Estate has no Ultisol and Oxisol soil as well as no peat land, acidsulfatearea and tidal land This map has been drafted according to semi detail soil survey by PARAM Agricultural Soil Survey (M) Sdn. Bhd-Nov 2008 and HCV Report by CV POLITO Const. the identification is conducted by the Statistic Data Processing Minamas Research Centre. Based on sloping level information, PT. PPP and PT PSK have a sloping data as below:

Sloping level (%) Description Broad (Ha)

BAE TME BSE Ha %

0-4 Flat - 771.7 220.1 991.8 12.5

4-24 Wave - 251.2 2.824,4 3.075,6 38.8

24-38 Hilly - 728,4 1.958,1 2.686,5 33.9

38-50 A bit of edgy - 45,3 261,4 306,7 3,9

50-60 Edgy 232.5 - - 232.5 2.9

>60 Very edgy 270,9 - 70,2 341,1 4,3

In order to maintain the sloping area, the certificate owner has had the maintenance strategy as below:

Conducting short review on the replanting impact on environment and social, which conducted by an independent consultant in 2012. The review has several recommendations such as shut down the replanting activity in the area with a sloping level more than 40% and for the area <40%, there are several efforts for maintenance such as by establish terrace ring, hoof, etc.

There is a handling for fragile and marginal soil in 2013, such as establishing the terrace ring, hoof, silt pit, silt pit maintenance, u shape midrib, installation of erosion’s control, cultivate the nephorlephis plant, reduce the pesticide usage and cultivate the vertiver.

There is a monitor progress for sloping area maintenance as well as the erosion poles monitoring, contour midrib, cultivate the nephorlephis plant, hoof, cultivate forest plant and fruit plant, cultivate bamboo as well as the vertiver grass.

The monitoring for sloping area management is available for period of August 2013 in Tamiang and BAE which covers an area of 541.95 Ha, the erosion poles have been installed for about 33 poles (target are 35 poles), midrib management, planted nephrolepis in an area of 199.5 Ha, improvement of terrace ring of hoof for an area of 407 ha, reboisation/cultivate forest plantation for about 560 trees, cultivate bamboo and vertiver grass that covers an area of 83.64 Ha. The monitoring for sloping area management has been conducted until December 2013 in TME and BAE, with several results, such as erosion poles’ installation for about 33 poles, contour midrib management, cultivate the nephrolepis in an area of 303.13 ha, improvement ofhoof380 ha, cultivate forest plantation/ fruit for about 560 trees and cultivate bamboo in an area of 8364 Ha. Monitoring for the speed of erosions was conducted every month and the annual recapitulation is available. For instance, the measurement for the speed of erosions in 2013 in 10 Block, which every block consists of 3 poles. For instance: Block D005 stake number 13 with a sedimentation number per year is 3.6 cm, Block D010 stake 30 with a total sedimentation 36 cm and Block D007 stake number 19 is 0 cm. Based on field visit to block C002 Batang Ara Estate, the total sloping area in this block is 20 Ha (33.4%), during the surveillance, there was an ongoing process for terrace ring construction for about 50%, hoof construction for about 40%, nephrolepis cultivation about 40% and U Shape midrib about 40%. Certificate owner has had the program as well as the realization for road construction for period 2013-2014, such as:

Road Pavement, 2 times every year

Monthly maintenance of road shape and slope

Through away and clean the organic material every month.


ASSESSMENT REPORT


Clean the road from water, 3 times every year

trench maintenance,3 times every year

Based on field visit, its known that these program has run well, for instance road maintenance in Blang Simpo-02 Division1 that is planned to cover 57.884meters, has been implemented in 2013 was 40.867meters, and the left over was 17.017 meterswill be executed in 2014.

Status:

4.4 Practices maintain the quality and availability of surface and ground water.

Certificate owner has had the program to maintain the surface water quality and resource as well as the underground water with an efficient utilization and maintenance, the utilization of water has no negative impact on other users and undertaken others approach to eliminate the contamination. These programs have been drafted through several activity such as:

Water source maintenance has been conducted by not cultivate 5 trees on the left and the right o water source for a manual maintenance. There is no fertilization and spraying activity near the water source.

Cultivate the vertiver grass along riparian area.

Maintenance of dam water, water sources, artesian well, well’s water and seruway water.

Fencing and the installation of signboard. Based on field visit in TME, BAE and BSE, there are painting and cultivation of bamboo along riparian area, sign board of banning the poisoning and electrocuting fish in dam water is also properly installed. Certificate owner has undertaken measurement related to the distribution of water usage from mill, which is distribution of water on July 2012 until June 2013, covering the processing FFB for amount of 81.685.854 kg or water utilization for amount 1.04 m3/tones FFB and the domestic distribution for about 36.540 m3 or amount of water is 1.48 m3/tones FFB. In order to figure out the effectiveness of program and the realization of maintenance the quality of surface and underground water, there are several examinations as reported through the RKL/RPL every 6 (six) months to local environment agency (please refers to indicator 6.1.1). However, based on water examination result, the company has not conducted the evaluation on some parameters that not required by water examination in Division III BAE from the Laboratory of Environment Health Technique and diseases handling process class I Medan Number F/BTKL-MDN.5.10.1.k (examination number91/K/AB/01/2014) on 10 January 2014 based on the regulation of ministry of health number 492 in 2010 (requirement for drinking water quality). There are 4 parameters that not fulfill the standard like ph 6.22 (standard 6.5-9.0), Mangan 0.56444 mg/L (standard quality 0.5 mg/L), Nitrate 18 mg/L (standard quality0.1 mg/L) and organic material 28.44 mg/L (standard 10 mg/L)and microbiology examination result No. F/BKTL-MDN/5.10.1b (examination number 106/B/AB/01/2014) on 10 January 2014 that taken from dam in Div III BAE with a result of 70 MPN (nozzle standard 10 MPN and non nozzle 50 MPN).Non-compliance CAR.2014.04 with a minor category. The examination of clean water from dam in Division II BAE from the Laboratory of Teknik Kesehatan Lingkungan and disease handling in class I Medan No F/BTKL-MDN.5.10.1.k on 10 January 2014 based on the regulation of ministry of health number492 in 2010 (requirement for drinking water quality). The examination result for the required standard and microbiology examination No. F/BKTL-MDN/5.10.1.b (Examination number 105/B/AB/01/2014) on 10 January 2014 that taken from dam in Division III BAE with a result 920 MPN (nozzle standard10 MPN and non nozzle50 MPN). Based on document review on the report of UKL/UPL triwulan 1 – 4 in 2013 (examination date: 22 November 2013) and interview with the environment agency of Aceh Timur district, for the BOD5parameters has a value of 142,8 mg/l with BM 5.000 mg/l (BM is refers to decision letter of ministry of environtment number 29 in 2003). This examination explains that the BOD5parameters for liquid waste IPAL, Blang Simpo mill is under the limit (NAB). Blang Simpo mill (PT PSS) has undertaken the monitoring on water utilization in a regular basis every day as stated on the evaluation report of water utilization for the FFB processing with a water utilization standard amount 1.35 M3/ton. The utilization of water that manages by the Blang Simpo mill has been calculated based on daily utilization for domestic usage and processing. Based on field observation in Blang Simpo mill, it’s known that the mill has 3 units of flow meters and all of it


ASSESSMENT REPORT


is in a good condition and ready to use.

Minor 4.4.2 Status: CAR.2014.04 with a minor category

4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques.

Certificate owner has had the procedure for plantation protection that stated in Minamas Plantation Agricultural Reference Manual No 1, in 2013 version 3, on 01/09/2013 part 10 plantation protection that manage the holistic pest management in palm oil plantation that covers the handling management for fire caterpillar, Pocket caterpillar, rats, beetle horns, stem rot disease and stew-end rot disease. Based on Minamas Plantation Agricultural Reference Manual, the PT PPP and PT PSK has drafted the holistic pests and disease management that covers all type of pests and disease which regulate in the plantation protection procedure through the pests census and the monitoring of beneficial plants development, owl, pherotrap and metharizum. The realization of this program can be seen on the monthly report of pest and disease handling. For instance, there is a recapitulation of the census of pest, such as, fire caterpillar census, rats census, oryctes cencus, and terminate census, as well as ganoderma census and the progress of botanic management (cultivation of beneficial plans, owl breeding, installation of pherotrop and the application of metarhizium). Based on field visit, there is a cultivation of antigonon in TME along MR and CR T Block A001, A003 and A006 and BAE in block C006 as well as Barn Owl Box in Block B004 and B007 which in a good and active condition. Certificate owner has conducting the monitoring for toxic for every pesticide. The toxic monitoring is available for period of July 2013 until June 2014, for instance the toxic monitoring of chemical Meta Prima 20 WG with an active methyl metsulfuron in December 2013 is 0,01/ton TBS or 0,01/Ha.


4.6 Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.

Certificate owner has had the list and monitoring report of the chemical material, such as: TME and BAE:

Prime Up, with an active Glyphosat, Reg No. RI.1779/11-2007/T, for thatch and general weed in TBM with a dosage of 3-4Ltr/ha/TM 2-3Ltr/Ha (3rot)

Trap 20WP, with an active metsulfuron, Reg No.RI.1797/11-2007/T, for broad leaf weeding TM with a dosage of 75-150gr/ha (3rot)

Basta, with an active Amonium glufosinate, Reg No. RI.1113/12-2008/T, for general weed in TMB with a dosage of 1-2 Ltr/Ha

Kenlon 480 EC, with an active Triklopir butoksi,Reg No. RI. 2433/5-2006/T, for wood seed, with a dosage of 0.25-0.375Ltr/Ha (2 rot)

Metaprima 20 WDG, with an active Metil Metsulfuron, Reg No. RI.1897/7-2008/T, for wood seed and broad leaf weed with a dosage of 20-40gr/Ha (3 rot)

Trendi, with an active Methyl Metsulfuron, Reg No. RI.3161/13-2008/T, for wood seed and broad leaf weed with a dosage of 3-4L/Ha (3 rot)

BSE:

Audit, with an active Glyphosat isopropilamin, Reg No. RI.1945/12-2008/T, for narrow leaf weed in TBM with a dosage of 6Ltr/ha/TM 2-3Ltr/Ha (3rot)

Trap 20WP, with an active methyl metsulfuron, Reg No. RI.1797/11-2007/T, for broad leaf weed with a dosage of 75-150gr/ha (3rot)

Basta, with an active Glufosinate, Reg No. RI.1113/12-2008/T, for General weed in TBM with a dosage of 1-2 Ltr/Ha

Kenlon 480 EC, with an active Triklopir, Reg No. RI. 2433/5-2006/T, for wood seed with a dosage of 0.25-0.375Ltr/Ha (2 rot).


ASSESSMENT REPORT


Certificate owner has prepared the documentation of agro chemical usage such as the agro chemical material in 2013-2014, from the record, its known the name of pesticide (brand), amount of usage, target/ species, material usage in accordance with dosage, with an active ingredient and type of work. The record of agro chemical ingredient usage is monitored every time the agro chemical material has been used and the annual recapitulation is available to figure out the usage trend for agro chemical. Certificate owner has conducted the management of pesticide package in accordance with the applicable regulation, such as: 1) store the peticise package in a licensed warehouse; for PT PPP this is based on decision letter from Bupati of Aceh Tamiang number 691 in 2011, on 14 November 2011 and for PT PKS is based on decision letter from Bupati of Aceh Timur, number 538.3/445/2013, on 18 June 2013; 2) handover the pesticide package to the licensed collector, which is CV Amindy Barokah (Decision letter of ministry of environemnt No. B-11493/DEP.IV/LH/PDAL/11/2012, on 23 November 2012); 3) peticide packages is brought by using the licensed vehicle based on decision letter of Jendral Perhubungan Darat Number SK4185/AJ.309/DJPD/2013/120070432BB; and 4) perform the periodic report to loca environment agency inAceh Tamiang and Aceh Timur district.In addition, based on field observation in the Blang Simpo mill, coordinate and requirement for hazardouse waste warehouse is in accordance with the applicable regulation. Certificate owner has had the policy for not to use chemical material that categorized as type 1A or 1B that stated in the list of Stockholm and Rotterdam convention, as well as the paraquat. For instance the usage of klerat (active ingredient brodifacum) and Decius (with an active deltametrin material) that is categorized in type 1A since the launching of HPO memo. POD-UM-127/X/2008 on 4 November 2008. This is supported by the observation result that shows the certificate owner has used the glyphosate material for spraying the weed. Certificate owner shows that the medical examination has been conducted regularly toward all spraying officer and fertilization officer. For instance, medical examination for 95 officers (spraying officers and fertilization officers) in Public Hospital in Aceh Tamiang and company’s clinic (Tamiang estate by company’s physician). There is an opportunity for improvement with a category OFI-2014.01 Based on document’s review and interview with spraying foreman, there are no pregnant or lactating personnel, company has deliver socialization regarding the policy of special treatment toward pregnant and lactating personnel.


4.7 An occupational health and safety plan is documented, effectively communicated and implemented.

The documented occupational healt and safety regulation is in a form of policy of occupational healt and safety No. Policy: 724/TQEM-SPMS/09 which signed by the CEO of Minamas on 1 April 2010. Based on field observation, its known that the certificate owner has implemented the policy regarding the K3/OHS by showing the proof of PPE handover to personnel, conducting the periodic medical examination, deliver capacity building to personnel related to occupation health and safety and comply the regulation that related with occupational health and safety. Based on document’s review, interview with company and related institution, it’s know that the certificate owner has an organization that responsible on occupational health and safety which is P2K3 in each management units (plantation and mill), the regularly report the development regarding the occupational health and safety in working unit and the record on the periodic meeting that shows the certificate owner concerns on occupational health and safety. Work incident’s insurance is facilitated by the certificate owner by registered all personnel in social insurance program/ jamsostek. Interview result with the harvesting personnel, maintenance personnel, operators in mill are registred to follow the social insurance program and if the personnel are sick and need a special treatment, the company will pay all the expenses for treatment. All data of registration on social insurance is well documented and stored in unit management office (estate and mill). Certificate owner presents that the periodic medical examination for high risk personnel is conducted every year, such as the medical examination to the entire mill’s workers: 15 station’s operators (boiler, sterilizer, clarification, laboratory, maintenance) that is conducted by the Graha Bunda hospital, Aceh Timur.Non-compliance CAR.2011.31 is closed.


ASSESSMENT REPORT


Based on field observation, there is a boiler operator in Blang Simpo mill that not using the PPE (ear plug) in mill’s station when he is working, workshop officer not wearing the PPE when he perform the cutting work with a welder(Apron, gloves, glasses), harvesting worker in block A-014, Division 1, Tamiang estate that not using the PPE (boots). This is not complying the implementation of risk analysis that owned by the certificate owner. Non-compliance CAR.2014.05 with a minor category. Field observation in Tamiang Estate, its known that the heavy equipment operator license is expired (SIO). Non-complianceCAR.2014.06 with a minor category. He certificate owner has had the emergency response procedure in forms of: - SOP of awareness and response as well as the recovery for PT. Padang Palma Permai, PT. Perkebunan Sri Kuala, PT.

Perkasa Subur Sakti No.PRPKTD/12/ppp-PSK-PSS/V/12 on 1 May 2012 that endorse by the estate manager and mill manager that explain that the emergency situation is limited by fire, explosion, hazardous waste leakage, earthquake. The emergency response team is responsible to conduct the identification of needs, evaluation and periodically maintain the PPE.

- SOP for fire prevention and handing in PT. Padang Palma Permai, PT. Perkebunan Sri Kuala, PT. Perkasa Subur Sakti No.PPK/13/PPP-PSK-PSS/V/12 on 1 May 2012 that approved by the estate and mill’s manager that describe some efforts that should be undertaken by personnel/department/emergency response team to prevent the fire in unit.

The emergency response organization is available in each mill and estate management in Blang Simpo 2 estate, Tamiang estate and Blang Simpo mill and become the responsibility of each manager and is assisted by operation staff. Field observation and interview with personnel, it’s know that:

Harvesting personnel in Block A-014 Division 1, Tamiang estate has no PPE (boots) since 2009. But on 6 January 2013

there is an eveidence that the handover of these PPE has been conducted to 44 harvesting personnel and foreman in

division 1 of Tamiang Estate.

The empty fruit bunched personnel in Tamiang estate have not received the PPE (boots and gloves).

First aid boxes that brought by the chemist foreman (Division 2, BSE 2), fertilizing foreman (Division 3, BS-2), harvesting

foreman (Division 3, BSE 2), First aid boxes in mill is not complete and not in accordance with list of First aid that owned

by the BSE-2.

Non-compliance CAR.2014.07 with a minor category.

Certificate owner able to show than pointed officer and foreman whom conducted the supervising activity in every operation activity have received the first aid training and based on the interview, there officers/ foreman area able to perform the fi rst aid if there is a work incident such as poison, fracture and stuck with the palm oil’s thorn. Certificate owner is documenting the work accident in a proper way for each unit (mill and estate) and certificate owner also has the curative program to anticipate the same accident.

Minor 4.7.3 Minor 4.7.4 Minor 4.7.6

Status: CAR.2014.05 with a minor category. CAR.2014.06 with a minor category. CAR.2014.07 with a minor category.

4.8 All staff, workers, smallholders and contractors are appropriately trained.

Every year, the certificate owner is drafting the training program, which based on sustainable training need analysis identification. The implemented training such as: general occupational health and safety on 15 – 24 April 2013 in Pekanbaru; Competency training and management on 17 – 22 February 2013; EHS training on 12 – 22 April 2012; HVC training on 15 – 17 April 2011; Internal Audit training Based on ISO 19011:2002 on 24 – 28 January 2011; Losses analysis training and CPO and Kernel quality on 12 – 24 April 2010; Seminar &occupation healt FGDon 4 – 6 August 2011 and Hiperkes training andoccupational safety for physician in the company/ on the induatry on 07 – 11 June 2010. The training evidences in 2012 are available, for instance: on behalf of Muhammad Ruslin, training on Pembinaan


ASSESSMENT REPORT


Pengawasan Norma Keselamatan dan Kesehatan Kerja in Pekanbaru on 15 – 24 April 2013 which is delivered by PT Delta Indonesia Pranenggar; (2) on behalf of Indri Kasandi, training on first aid (P3K) in work place, in Pekanbaru on31 May until 1 June 2013 that conducted by PT Arpindo Pratama. Certificate owner is consistantely use a well trained contractor, for instance: CV Huda.The proof tat the company always use the ell trained contractor is available, such as: (1)has a valid legality document likecompany certificate: CV/PT;business location permit (SITU); company’s registration (TDP); business license permit (SIUP); Tax number (NPWP); business certificate based on its field (SBU). (2) Able to provide the business capital; (3) has the experiences and skill to run the work; (4) monitor and implement the occupational health and safety (K3); (5) has the invoice of annual tax payment (SPPT); (6) following the regulation in accordance with the work agreement letter (SPK), for the specification as well as the payment time.


PRINCIPLE #5 Environmental responsibility and conservation of natural resources and biodiversity

5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

Certificate owner has environments’ documents, such as: 1. Document on environment evaluation’s study (SEL)

Based on decision letter from the ministry of agriculture number RC. 220/797/B/V/1993, on 13 May 1993 for estate and mill’s activity that covers an ara of 1.859,14 ha (for location I: Batang Ara and Tamiang) and 4.236 ha for location II: Blang Simpo and other activities related to it’s surrounding. The installed mill’s capacityis 20 tonesFFB/Hour. RKL/RPL palm oil plantation and mill in Aceh Timur sub disrict, number 018/RKL-RPL/BN/X/1994 on 18 October 1994 for location I : Tamiang – Batang Ara that covers an area of 2.107,14 ha and location II: Blang Simpo that covers an area of 5.000 ha. The installed mill’s capacity is 20 tonesFFB/Hour. Type of impact that managed by the company such as erotion, decreasing of water quality and distruction toward animal’s habitat.

2. Document on environment’s management (DPPLH) Based on decision letter from the ministry of agriculture number B-5054/Dep.I/LH/7/2010, on 6 July 2010 for PT Perkasa Subur Sakti with activity’s location in Peureulak sub district, Aceh Timur district. Type of impact that managed by the company such as recruitment of personnel & community’s income, road accident, the quality of river water & the quality of mill’s water.

3. UKL/UPL PT Padang Padang Permai which covers an area of 1.239 ha Based on decision letter from Bupati of Aceh Timur number 592.12/23/2011, on 14 February 2011 regarding the environment permit for the palm oil plantation by PT Padang Palma Permai for activity’s location in Peureulak Timur, Kabupaten Aceh Timur sub district that covers an area of 1.239 ha.

4. UKL/UPL PT Padang Permai which covers an area of83,37 ha Based on decision letter from Bupati of Aceh Timur number538.31/651/2013 regarding the environment permit for the palm oil plantation by PT Padang Palma Permai for activity’s location in Gampong Jengki and Tualang Pateng village, Peureulak sub district, Aceh Timur districtthat covers an area of 83,37 ha. The matrix of UKL/UPL of PT PPP is available,such as the recruitment of personnel & community’s income, road accident, the quality of river water & the quality of mill’s water.

Non-compliance CAR.2011.43 is closed. The implementation of environment documents, such as: - Liquid waste:There are 8 indicators that have been examined such the acidity(pH,)cuprum, plumbum, Kadmium, Seng,

oil and fat, COD, and BOD5. for pH and BOD5indicator are still in the NAB(NAB ehich refers to the decision letter from the ministry of environment LH 28/29 in 2013.

- Air Quality:there are 8 indicators that have been examined such SO2, NO2, Particulat, CO, Water flow, Opasitas and Temperatur (the examined indicator are in the NAB)

Based on docuemnt’s review and interview with the environment agency of Aceh Tamiang and Aceh Timur sub district, the


ASSESSMENT REPORT


certificate owner has conducted the regular environment management, such as: 1) UKL/UPL triwulan 2 report of PT PSS –Blang Simpo mill to environemtn agency of Aceh Timur sub districton 29 July 2013; 2) UKL/UPL triwulan 3 report of PT PSS – PKS periode July – September 2013 to the environment agency of Aceh Timur sub district on 21 October 2013; and3) RKL/RPL semester 1 report of PT Padang Palma Permai periode January – June 2013 to the anvironemnt agency of Aceh Timur sub district on 5 August 2013.


5.2 The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations.

Pointed officer that responsible for the HCV/NKT conducts observation on wildlife’s every month on the last week. Report on the wildlife’s observation is available since January 2011- December 2013. Certificate owner is consistently undertaken the protection effort to protect the HCV/NKT objects. The entire personnel undertake the steps. Based on field observation in Block D001, D005and D009 that were identified as a part of riparian area and sloping area for about 40%; the company has consistently undertaken the efforts to protect the HCV area, for instance: by cultivating the Vertiver grass on the sloping area, cultivating the forest trees, installation of signboard to protect the HCV area as well as the socialization not to haunt and catch the fish by electrocute and using poison, the installation of erosion rate poles(the actual installed are 11 units). The certificate owner has installed the posters or signboard to remind people to protect the wildlife and area that indicate as a conservation forest. These posters have been installed in a vivid place for community and personnel, for instance: in the entrance door to the plantation area, on the side of block’s road, in front of division office and housing. These signboards always been added and improved every year. The certificate owner has pointed the special officers through official letter from the estate manager to 2 (two) officers on behalf of Suseno on 31 March 2011, with a letter number: 106/TAN/P3/III/2011 and behalf of Suherman, on 14 November 2013 for Blang Simpo Estate 2 as officers to monitor the HCV/NKT. These special officers have understood the area/object, the handling and identification of the HCV/NKT.


5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner.

The certificate owner has provided the identification record on the sources of waste in a form of waste identification docuemnt in PT Padang Palma Permai and in PT Perkebunan Sri Kuala,for instance: 1) hazardous waste:the used filter oli which comes from the workshop, vehicle&generator; 2) docmestic waste like used paper, plastics, bottlos, and organic waste; 3) medical waste such as syringe, used injection bottles and medicine container fron the clinic. The identification of swaste sources is recorded in the UKL/UPL implementation report in semester 1, for instance the liquid waste & solid waste that come from the mill’s production process. Based on document’s review and field observation, the certificate owner has conducted the waste management based on the identification, such as: - Hazardouse waste from the used oil filter that comes from workshop, vehicle&generator is palced in licensed

hazardouse waste storage. - Dometic waste such as used paper, plastic, bottles and organiz waste that comes from house/office/workshop and

warehouse that is collected in final landfill. - Clinic waste such as used syringe, used injection bottle and medicine containers that come from the clinin and hand

over to hospital which has incenerator - Solid waste (sheel) that is used as a boiler material. - Jempty fruit bunches are used for the plantation in the field. - Liquid wastes are manged with IPAL and Land Aplication

Based on documents’ review and field visit, the certificate owner has conducted the hazardouse waste handling process in


ASSESSMENT REPORT


accordance with the applicable regulation, for instance: (1) Store the hazardouse waste in the licensed warehouse; 2) hand over the hazardouse waste to the licensed collector, which is CV Amindy Barokah; 3) the hazardouse wastes are transported by the licensed vehicle and submitted the report to the environment agency of Aceh Tamiang and Aceh Timur Sub district. The certificate owner also store the hazardouse wastes based on its type and characteristic. The waste monitoring is recorded in the implementarion report of the UKL/UPL triwulan 3, for instance: - Liquid waste: There are 8 indicators that have been examined such as PH, Tembaga, Plumbum, Kadmium, Seng, oil and

fat, COD, and BOD5. For the pH and BOD5indicators, there are still in the threshold that based on the decision letter of ministry of environement LH 28/29 in 2013.

- Empthy fruit bunches in Tamiang estate: program 6,550,000 kg to be applicated in the area of 163 Ha, realization is 1,088,290 kg on the area of 27,21 ha (recorded in the program report and empthy fruit bunche application TBE & BAE in 2013/2014)

- Empthy fruit bunches in Blang Simpo 1 estate: total application is 1.625.924,69 in the area of 47,82 ha. - Hazardouse waste: the hazardouse wastes are recorded in hazardouse waste balance and are reported to the

environement agaency of Aceh Tamiang and Aceh Timur sub district. - Clinic waste such as used syringe, used injection bottle, used medicine container that come from the clinic are handed

over to the hospital which has the incenerator


5.4 Efficiency of energy use and use of renewable energy is maximized.

The monitoring record on the renewable energy usage for period July 2012 to June 2013 in Blang Simpo mill is available, such as: The processing FFB: 91.214, CPO: 22.087 tones, processing hour: 3212 hours, Shell and fiber production: 16.419 ton, gas: 583, 1 ton; gas 27 Kwh 5.51 KWH, gas 1.683.313, kwh/ton TBS 15, kwh that needs 6081, fiber and shell that been used8.446 ton, left over from the usage fiber and shell is 7.973, gasoline usage 72 liter, gasoline efficiency/tones CPO 0.38, andefficiency kwh 0.03. In order to monitor the usage of diesel, the certificate owner has had the recapitulation and monitor report of the gasoline usage in plantation and mill, for instance the average usage of gasoline for period of June 2013 until December 2013 in TME is 8.18 liter/Ton, FFB & BAE is 4.40 liter/Ton, FFB& BSE is 3.38 Liter/Ton, FFB and mill is 3.70 Liter/Ton FFB. The certificate owner always conducting the annual evaluation in case there is an increase on the gasoline usage.


5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice.

Based on the field observation (Tamiang estate and Blang Simpo-1 estate) and replanting work agreement review, it’s known that the certificate owner has opened the field for replanting by using the fire approach instead of mechanical approach. The company has showed the proof that the company has implemented the zero burning approach, such as: work agreement number 018/Replanting/PPP-TME/VII/2013 with a contractor (PT Vidya Agung Mandiri) on 15 July 2013 for the replanting work with a technical specification by using the mechanic method (heavy equipment: excavator) such as removed the big bunched and roots, tumbling, mincing, make the plantation hole, establish the terrace ring. Based on interview with housewives in Division 2 housing in Blang Simpo-2 estate, they said that the socialization on the restriction of burning waste within the housing area. Until the Surveillance-1, there is no burning occurs within the operation area of the certificate owner, however the certificate owner has had the emergency response. PT. Padang Palma Permai, PT. Perkebunan Sri Kuala No.LTD/31/PPP-PSK/I/2013 on 20 January 2013 that has been endorsed by the estate manager and also explained the preventive approach, burning handling process, the administrative and report. The certificate owner has fulfilled the fire extinguisher tools in accordance with the fire extinguisher tools’ requirement for the


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dangerous area such as water pump machine, hose, protective glasses, water tank (2000 liters), leather gloves, APAR, water tank vehicle, mask, Handy Talky radio. The entire units are periodically being evaluated every 3 months and the last evaluation shows that all tolls are well functioning and ready to use. The field visits shows that the fire extinguisher tools are in accordance with the list, in a good condition and ready to use.


5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored.

The certificate owner has had the identification of pollutios sources and emission that is recorded in the UKL/UPL implementation report for semester 1, such as:

Type of impact Sources of impact Management Efforts THE Air quality Mill’s operation - Conducting the air quality evaluation in the accreditated laboratory.

- Distance between the mill and residence/ housing is ± 2 km - The uilization of ear protection for mill’s personnel

The potency of land fire

Fire inside and outside the mill’s area

- Establishing the fire anticipation. - Conducting the socialization on the danger of fire to the personnel

and community.

The certificate owner has conducted the evaluation on the air quality from the generator that is recorded in the report of UKL/UPL implementation in triwulan 3. For instance, the indicator for SO2in generator 1 amount 25,1 mg/m3&in generator 2 amount 28,3 mg/m3 with the maximum BM is 800 mg/m3; NO2 in generator1 amount24,9 mg/m3&in generator2 amount24,9 mg/m3with the maximum BM 100 mg/m3; Partikulat in generator1 amount130 mg/m3& pada genset 2 sebesar 135 mg/m3with the maximum BM is 350 mg/m3. The evaluation is conducted in the environment agency UPT environment laboratory that based on the decision from the ministry of environment no. 13 in 1995 anex V-B. Certificate number 50/BLH.SU-UPT.LL/XI/2013, on 18 November 2013. The certificate owner has also conducted the evaluation on the air quality from the boiler that is recorded in the report of UKL/UPL implementation in triwulan 3. For instance, the indicator fror SO233,03 mg/m3with the maximum BM 600 mg/m3; and NO2 31,11 mg/m3 with BM 800 mg/m3. The evaluation is conducted in the environment agency UPT environment laboratory that based on the decision from the ministry of environment no LH No. 07 in 2007. Certificate number50/BLH.SU-UPT.LL/XI/2013, on 18 November 2013.Based on document’s review and field observation, the certificate owner also try to reduce the emission and pollution, for instance: conducting the the periodic air quality evaluation in accreditated laboratory, the distance between mill and housingis ± 2 km, using the ear protection for mill’s personnel, establish the team to anticipate the fire and deliver socialization on the danger of fire to personnel and community. In addition, the smock density meter is also available and maintaine the boiler mechine. Non-compliance CAR.2011.76 is closed. Based on document’s review and field observation, the certificate owner has conducted the POME management, for instance: monitor the amount of liquid wastes that were applied to the plantation, calculate the amount of liquid waste and evaluate the monthly quality of liquid waste. Furthermore, there is no leahage been found in IPAL, the tools to calculate the amount of liquid waste are well functioning, there is a special officer to maintain the IPAL and Land Aplication, and there are 2 buffer ponds of collection to anticipate the rainy season that can increase the volume of liquid waste.

Status:

PRINCIPLE #6 Responsible consideration of employees and of individuals and communities affected by growers and mills

6.1 Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate the continuous improvement.

The certificate owner has had the document of environment evaluation study (SEL) that covers the positive and negative impacts; organization also had the document for social impact assessment) that conducted by the competent consultant firm. The certificate owner is consistently draft the document of environment management plan (RKL) and environment monitoring plan (RKL) every 6 months. In the RKL and RPL document that drafted in semester I (January to June) in 2013, the positive


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and negative impact is stated.Non-compliance CAR.2011.43 is closed. Record of the management plan and monitoring on the social impact with the community participation is available. The management pan and social impact monitoring such as: (1) RKL and RPL; (2) SIA document. Based on document’s review, the certificate owner has had the environment document that stated the management and social impact monitoring such as: UKL/UPL PT Padang Padang Permai for an area of 1.239 ha and UKL/UPL PT Padang Permai for an area of83,37 ha. Type of social impact that manage and monitor such as the recruitment of personnel and community income. The company able to show the report of RKL/RPL implementation that has been handed over to relevant institution (environment and cleaning agency of Aceh Tamiang district). For instance: hand over minutes of report of the RKL/RPL implementation for period January to June 2011, July to December 2011, January to June 2012, and July to December 2012 January to June 2013. During the public consultation with stakeholders, the audit team got information that the company has regularly submitted their RKL/RPL report every 6 months.


6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties.

The certificate owner has the procedure of communication and consultation with community that stated in the SOP of communication and consultationwith community (RSPO/6.2/KKM).This procedure has been agreed by the local community, such as: Kebun Tanah Terban village, Batang Araplantation in Bundar village that signed by each head of village. The communication and consultation with community record has shown a good progress. The document of company’s stakeholder list has shown a good progress that covers the institution’s name/ person name, address, contact number and position. List of stakeholders consists of the village, community leader, district government agencies, provincial and national government agencies, NGO, buyers, schools/universities, insurance agency, bank, contractor and vendors/suppliers. The community aspiration and response from the certificate owner has been well documented. This can be shown with the logbook of 2012 and 2013. The available Logbook covers the date, name, issue/complain, solution and action. For instance on 2 March 2013, Cik Embun village request a grant for the commemoration of the birth of prophet Mohamed on 5 March 2013, the company gave a grant amount IDR. IDR. 2.000.000. The certificate owner has the special officer who in charge to conduct the consultation and communication with the community, such as: (1) Chairul Zein based on decision letter BSE II/12/V/2011/M on 16 May 2011; (2) Zulfikar Ritonga, SE based on decision letterNo.105/EST/TME/III/2011 for estate; and (3) Jasman based on decision letter No. 169/POM/TMF/III/2011 for mill.


6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties.

The complaint mechanism (complain from the internal/personnel as well as from the external) is available, such as: (1) SOP for handling the complaint from the personnel (RSPO/6.5/PKK), (2) SOP for communication/consultation with the community (RSPO/6.2/KKM), (3) SOP for handling the complain from the community (RSPO/6.3/PKM). The SOP has been approved by local community that represent by head of Batang Ara village, Bundar village, Tanah Terban village, Tupah village that signed by each head of village. Complaints from internal and external has been well documented in the log book, for instance: on 6 December 2012, the kitchen repair request from the personnel housing in Division II BSE 2, that submitted to the assistant of Division 2 BSE 2and on 22 December 2012 has been approved by the Assistant for follow up and is close.


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The identification mechanism/procedure and compensation calculation for the loose of legal right in Aceh Tamiang district is based on the decision of Aceh Tamiang District head No. 247 in 2008 regarding the standard unit price for compensation on the building and plant for the development of public infrastructure in Aceh Tamiang district. Meanwhile for Aceh Timur districts refers to the decision of District head No. 635 in 2007 regarding the amount of compensation for land, plants, and ponds component, as well as the contain of the ponds in Aceh Timur district.


6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

Same with the Stage-2 report, that company’s working area has no indigenous right/ traditional right. Detail explanation can be seen in indicator 2.3.1


6.5 Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.

Certificate owner can present the evidence that personnel have received the wages that is in accordance with the applicable regulation; in addition, the interview with personnel (harvesting personnel, maintenance personnel, and mill’s operator) shows that there is no problem regarding the wages and wages always disburse on time. The cooperation agreement that is used by the personnel in PT Perkasa Subur Sakti, PT Padang Palma Permai is in accordance with collective working agreement between Badan Kerjasama Perusahaan Perkebunan Sumatera (BKS-PPS) and Pengurus Pusat Federasi Serikat Pekerja Pertanian dan Perkebunan Serikat Pekerja Seluruh Indonesia (PP.FSP.PP-SPSI) based on decision from the Director General Pembinaan Hubungan Industrial dan Jaminan Sosial Tenaga Kerja No.KEP.191/PHIJSK-PKKAD/PKB/XII/2012 on 14 November 2012 that valid for 2 years (until 13 November 2014) and remain valid until there is a new applicable collective work agreement. The certificate owner provides the public infrastructure such as: personnel and non-personnel housing, school, mosque, polyclinic, sport’s yard (badminton, soccer, and tennis), childcare (TPA). The facility for water supply comes from Seruwai

natural water source for the entire personnel and the artesian well is available, meanwhile for the electricity comes from PLN and Token voucher. The certificate owner has asked the contractor to comply the applicable regulation in term of manpower. For instance: (1) rental agreement for heavy equipment number 05/BSEI/LKL/I/2014-T1b between PT Padang Palma Permai and Belang Simpo 2 plantation, in the working agreement point8, it is mentioned the both parties should follow the requirement and the occupational health and safety aspects as well as the insurance; (2) working agreement number 003/BSE2/SPK-LKL/2013/Tasirtu between PT Padang Palma Permai and Blang Simpo 2 plantation, in the working agreement point 10, it is mentioned that both parties are responsible to comply the occupational health and safety standard. Based on the above description, it can be summaries that the certificate owner has asked the contractors to comply the applicable manpower regulation.


6.6 The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel.

Certificate owner has had the commitment to give the freedom to establish the union for the personnel in PT PPP and PT PSK through the guideline of sustainable plantation management with a policy number 724/TQEM-SPMS/09 on 27/08/2010. This commitment is stated in the Social Plantation Upstream Indonesia; especially in point 5 that the company is expected to appreciate the right of personnel to establish and join a worker union based on their free choice as well as together negotiate that approved by the Head Plantation (Mohd. Ghazali) 2011.


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Moreover, there is a Memorandum, which states that the company should respect the employee’s right to join the worker union as stated in the republic of Indonesia’s law number 13 in 2003 regarding the manpower, which mentioned that every personnel is has a right to establish and join the worker union(approved by Junaedi Lesmana (Estate Manager TME/BAE). The meeting minutes for worker union socialization to personnel on 19 March 2013 is available, it was discuss: 1) drafting of the ADRT of worker union&the draft is written, 2) the monthly cost for the worker union, 3) room for the worker union office, 4) charityfor personnel who die. The meeting was attended by the personnel division III of Batang Ara Estate (the supervision foreman 0301, harvesting foreman 0302, harvesting foreman0303, fertilization foreman 0304, pemel foreman, road, trench, terrace, bridge 0305, Pemel foreman, manual trench0306, spraying foreman PIR, Chemist 0307, Transport foreman0308, supervision foreman0309).


6.7 Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education program. Children are not exposed to hazardous working conditions.

The certificate owner has a commitment regarding the age requirement for personnel. The company has set the age requirement that is at least 18 years old through the policy memorandum on child protection policy (Child Protection Policy-the CPP) No. POD-UM-052/III/2010. Moreover, there is a collective work agreement in 2012-2014 Chapter IV working relation, article 16 on the personnel’s recruitment. Point 1.2 regarding the general requirement that need to be completed in order to hired personnel, such as:

a. Indonesia citizen

b. At last 18 years old during the recruitment or has married.

c. Physically and mentally fit

d. Met the criteria or requirement for the position.

Based on the data check roll (employee master) December 2013 for Batang Ara Estate and Tamiang Estate in as of tfile. All personnel have fulfilled the requirements; there are no personnel under 18 years old. The youngest personnel in BAE on behalf of Suparmin, the harvesting officer, born on 04 Sept 1991, start to work for the company on 01 December 2011 at the age of 20 years old. Meanwhile for the TME on behalf of Fahrul, born on 28 August 1990, start to work for the company on 03 January 2011 at the age of 21 years old as a fertilizer officer. In addition, based on check roll data (employee master) December 2013 for Blang Simpo mill, BSE 1, BSE 2 there in no personnel under 18 years old. Based on filed observation in division 3 BSE 2 Block F02, there is 16 years old staff named Amri as a fruit buyer. This is not in accordance with the company’s policy (collective labor agreement for period 2012-2014) article 16 regarding the personnel recruitment point 1.1.2 that required the personnel should be at the age of 18 years old when the company hired them or already married. Non Compliance No.2014.08 with a minor category

Status: NC-2014.08 with a minor category

6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.

The certificate owner has the guidelines for sustainable plantation management (No. Policy 724/TQEM-SPMS/09 on 27August2010) that stated in the social policy. Personnel should get the same and fair treatment related to recruitment proces, promotion, condition and term of work, with no dicrimination based on ethnicity, social status, race, gender, skin color, disability, sexual orientation, membership, political preference, religion and age. Based on personnel’s data in 2013, the Tamiang Factory PT PPP, Tamiang estate and Batang ara Estate, its known that personnel identity is varied like Javanese, Acehnese, bataknese, mandailingnese, Malay, moslem, Christian. Based on interview with plantation fore man in division I of Batang Ara Estate, Mr. Mohammad Pahrijal, the certificate owner offers the same opportunity, chance and treatment toward its personnel. It can be summarized that the certificate owner is consistently non-conducting any discriminative action toward its personnel.


6.9


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Policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied.

The certificate owner has had the gender policy that was approved by Mr. Mohd Ghazali Yahya as a Head Plantation Upstream Indonesia in 2011 and has been socialized to all personnel in TME and BAE. The company has set the procedure policy/ mechanism for handling the sexual assault or special reproduction rights, such as:

1. Personnel’s complains regarding the sexual assault or reproduction rights are submitted in a written to the plantation

assistant through each foreman.

2. Assistant records the complaint in a register book. 3. The complaint will discuss in the gender committee meeting. 4. In case the complaint is still within the unit level, the assistant will make the decision in accordance with the applicable

regulation. 5. If the complaint needs further coordination with the manager and still in the manager’s responsibility, then the decision

will be based on the applicable regulation. 6. In case the complain can be solve in the unit level because the parties consider that the complaint is against the

applicable regulation, then the complaint will be sent to related institution.

Socialization of gender committee for TME and BAE, such as: On 20 December 2013, the meeting was attended by 12 participants and the summary of this meeting are:

a. There is no discrimination against women personnel.

b. Warning for pregnant and lactating worker not to work with a chemical material or works that are considered will harm

mother and child healthy (poisoning and fertilizing work)

c. Remind the usage of PPE

On 27 September 2013, the meeting was attended by 13 participants and the summary of this meeting are

a. Environment in surrounding the housing should be clean and tidy by planting some trees and establish the organic fence from wood, bamboo or other flower trees.

b. Waste transportation should be conducted on time. c. Remind the mandatory usage of PPE, especially for personnel that work with a chemical material such as should wear

mask, gloves, etc.

On 12 June 2013, the meeting was attended by 14 participants and the summary of this meeting are: a. Socialization of“Qanum Aceh” that the personnel should wear clothes based on Islamic law.

b. Remind the mandatory usage of PPE, especially for personnel that work with a chemical material such as should

wear mask, gloves, etc.

c. If the PPE is not available at certain day, then the personnel must not work on that day.

Meanwhile for the socialization of gender committee of Blang Simpo mill, Blang Simpo Estate 1, Blang Simpo Estate 2 such as:

1. Gender committee simulation training on 30 January 2014 by the manpower and transmigration department that

completed with the attendance sheet and this training were attended by 31 trainees.

2. Training on HIV AIDS by the manpower and transmigration department on 30 January 2014 that completed with the

attendance sheet and this training were attended by 31 trainees.

3. The meeting was lead by Mr. Mersis Parizal (head of section BSE-2), introduction on the gender committee, and

task differentiation for the member of gender committee (on 12 February 2013).

Based on the interview with the head of gender committee (Maysarah), vice (Purnawati), member (Erna). From 2013 to 2014 there is no complaint about sexual harassment and sexual assault. The certificate owner has had the commitment related to reproduction right protection for female personnel through the memorandum of treatment toward female personnel (TME/002/VII/2010/M). The company has given the menstruation/period


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leave (H1) and pregnancy leaved as well as labor leave and the policy about restriction for pregnant and lactating personnel to work with chemical material. Based on interview with spraying foreman (Mrs. Sri Haryani) Division II Block C06 BAE, its known that the leave has been granted for H1 leave every 2 day in respective month and H2 leave for 1,5 months before and after the delivery/ labour.


6.10 Growers and mills deal fairly and transparently with smallholders and other local businesses.

Until the Surveillance-2, the Blang Simpo mill not received any FFBs from farmers, which are not coming from the nucleus plantation or within company’s group. This is why the company not using the general price for FFB. The certificate owner able to presents the agreement that stated in the work agreement letter that for every works that is handled by the contractor will include the scope of agreement, duration, cost, mechanism and payment method. The agreement is fair, legal and is signed by both parties The certificate owner able to shows the payment invoice (bank voucher) that disburse on time and in accordance with the existing agreement with the contractor for transport the FFB in Tamiang estate and Blang Simpo-2 Estate.


6.11 Growers and millers contribute to local sustainable development wherever appropriate.

Company’s contributions for local development are complete and consist of: identification/ amount of contribution invoice, and payment disbursement. The record for the CSR implementation is complete, for instance: in 2012-2013 the Tamiang Estate IDR. 129.600.000, in 2013 BSE I estate and II estate IDR. 483.455.000.


PRINCIPLE #7 Responsible development of new plantings

7.1 A comprehensive and participatory independent social and environmental assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations.

The certificate holder did not undertake cleared the land/ developed of new oil palm plantations after November 2005 and did not have smallholder scheme.


7.2 Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations.



7.3 New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values.



7.4


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Extensive planting on steep terrain, and/or on marginal and fragile soils, is avoided.



7.5 No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.



7.6 Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements.



7.7 Use of fire in the preparation of new plantings is avoided other than in specific situations, as identified in the ASEAN guidelines or other regional best practice.



PRINCIPLE #8 Commitment to continuous improvement in key areas of activity

8.1 Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.

The certificate owner has a proof of action plan for environmen management and monitoring which is recorded in the erport of RKL-RPL implementation for semester 1, for instance: - Management and monitoring of liquid waste:there are 8 indicators that have been examined such as: the acidity

(pH), cuprum, plumbum, Kadmium, Seng, oil and fat, COD, and BOD5. For the pH indicator and BOD5are still in the NAB level(NAB refers to the decision letter from the ministry of environment LH 28/29 in 2013.

- Management and monitoring of air quality:there are 8 indicators that have been examined such asSO2, NO2, Partikulat, CO, water flow, Opasitas and Temperatur (the examination indicators are in the NAB level)

Based on document review and intervoew with the environment agency of Aceh Tamiang and Aceh Timur district, the certificate owner has submitted the periodic report of environement management, for instance 1) UKL/UPL report triwulan 2 PT PSS – PKS Blang Simpo to the environment agency of Aceh Timur district on 29 July 2013; 2) UKL/UPL report triulan 3 PT PSS – PKS from July to September 2013 to the environment agency of Aceh Timur district on 21 October 2013; and3) RKL/RPL report semester 1 PT Padang Palma Permai from January to June 2013 to the environment agency of Aceh Timur district on 5 August 2013. The certificate owner has taken the follow up actions regaridng the finding at the surveillance stage-2 of RSP. The improvement actions such as: using the smock density meter and conducting the training on thesupply chain requirement for all mill’s personnel.


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3.2. Summary of Assessment Report of Supply Chain

Clause (Module D) CPO Mills - Segregation Requirements

1 Documented Procedures

1.1

The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following:

a) Complete and up to date procedures covering the implementation of all the elements in these requirements.

b) The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the facilities procedures for the implementation of this standard.

There is an SOP for Supply Chain, Number 4.1/PSS-PPP-SC) that is approved by the Blang Simpo Factory’s manager on 22 December 2013. This procedure is effective since the receiving FFB, production process and the delivery of product to buyer in PT. PSS. The applied supply chain on this procedure is the Segregation). Officer in charge on this requirement is the mill’s manager, the Assistant of PSQM (Plantation Sustainable Quality Management), and the assistant/senior assistant/ bulking manager.


1.2

The facility shall have documented procedures for receiving and processing certified and non-certified FFBs.

Blang Simpo mill has the documented procedure from the receiving FFB up to the processing to segregate the RSPO certified product from the non-certified ones by identified the mill’s product through the number/ label identification in each part. TheSOP for palm oil mill is approved by Mill Controller in December 2011 which covers the SOP for weight bridge, loading ramp, boil station, Trippler and Thresher, digester station, press station, oil room station, Depericarper station, Nut Cracker, Kernel Silo station, CPO Dispatch, Palm KernelDispatch, Boiler House, Power Plant. There is also the work instruction for laboratory examination, which endorsed by mill’s senior manager on 1 April 2011.


2 Purchasing and goods in

2.1

The facility shall verify and document the volumes of certified and non-certified FFBs received.


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The processed FFBs in Blang Simpomill come from the nucleus plantation/ Batang Ara Estate (PT Perkebunan Sri Kuala), Tamiang Estate-Blang Simpo-1 Estate and Blang Simpo-2 Estate (PT Padang Palma Permai)which has the RSPO certificate. The producted oil is 100% RSPO certified oil. The PSS has a document and for FFB acceptance, such as SPB notification letter and weight ticket that explain the number of weight ticket, SPB serial number, the origin of FFB, transport, harvesting date, fruit spinning, planting year, block, number of bunches, tones, vehicle number and date of delivery.


2.2

The facility shall inform the CB immediately if there is a projected overproduction.

Blang Simpo mill, PSS can claim their product is certified for one year for the CPO product for about21,937 tones and Palm Kernel for about5,281 tones from 3May 2013to2May 2014. During the surveillance-01audit, the total production of CPO and Kernel by Blang Simpo mill from 3 May 2013 to 7 February 2014 was 13,086.631 tones and Palm Kernel was 3,055.945 tones. Until the surveillance survey for the CPO and Kernel product that can be claimed as a certified product by the Blang Simpo-PSS was not exceeding the projected number, but the management of Blang Simpo-PSS mill has a commitment to provide the information to Mutuagung Lestari if there is an exceeding production of CPO and Palm Kernel.

Blang Simpo POM-PSS, Minamas Plantation has conducted the registration for RSPO certified product such as CSPO and CSPK through thee-trace- UTZ.


3 Record keeping

3.1

The facility shall maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these requirements.

The entire record and report exist and are well stored by the company. The document storage system is in a soft copy in the System Application Program (SAP), Sime-Weight Programme for weighing the FFB, CPO and Palm Kernel, FFBGS (Fresh Fruit Bunch Grading System) to figure out the quality of FFB that will be processed, meanwhile the document in Hard copy (print out) are stored in the administrtion room of Blang Simpo mill. Blang Simpo mill has the daily production report that explains the entire aspect of the incoming and processing FFB, the CPO quality and quantity, Kernel quality and quantity, CPO and Kernel dispatch, CPO and Kernel’s production stock. Meanwhile for the CPO and Kernel sale in Blang Simpo mill, the documents’ storage is taken place in headquarter office in Jakarta (Minamas Plantation) such as the Contract documents, Delivery and Invoice.


3.2 Retention times for all records and reports shall be at least five (5) years.

Blang Simpo mill, PSShas set the shelf life of the document is at least 5 years and present related documents with the FFB acceptance record up to oil storage in the tank as stated in the daily report, the accepted and processed FFB data, mill’s utilization, CPO and kernel quality and quantity, quality of oil in the storage tank, CPO and Kernel Delivery Order and Process Control Report document that sets every 5years.


3.3 The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and palm kernel meal on a three-monthly basis.

a) Blang Simpo-PSS mill has the mechanism for record and balance for the monthly and three months acceptance of certified and non-certified FFB in the Segregation SOP and supported by the computerized Weight bride System program.

b) Volume of certified and non-certified product has been prepared for further calculation through computerized Weighbridge System program.


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c) Segregation sale from stock


3.4 The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts, e.g. *product name*/MB or Mass Balance. The supply chain model used should be clearly indicated.

Based on document observation, it’s known that the Sales Contract document explains the segregation supply chain and describe that the product is RSPO certified that is in accordance with the SOP in Blang Simpo mill.


4 Sales and goods out

4.1

The facility shall ensure that all sales invoices issued for RSPO palm oil delivered include the following information:

(a) The name and address of the buyer

(b) The date on which the invoice was issued

(c) A description of the product, including the applicable supply chain model (Segregated)

(d) The quantity of the product delivered

(e) Reference to related transport documentation

Blang Simpo mill, PSS has ensured that the entire invoice for oil palm dispatch have had the required information such as invoice number 00213/PSS/I/2014 for CPO product, that explain:

a) Buyer’s name, PT.Musim Mas at JL.KL Yos Sudarso KM 7-8, Tanjung Mulia, Medan, Sumatera Utara – 20241. b) Invoice was issued on 23 January 2014 c) Product description, such as Crude Palm Oil, explains the type of product is RSPO Segregation product. d) The number of dispatched product is 700,000 Kg e) Delivery and transportation using the CPO in bulk method, which agreed that buyer, will take the product in the sale

location.


5 Processing

5.1

The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oi l is kept segregated from non certified material including during transport and storage and be able to demonstrate that is has taken all reasonable measures to ensure that contamination is avoided. The objective is for 100 % segregated material to be reached. The systems should guarantee the minimum standard of 95 % segregated physical material9; up to 5 % contamination is allowed.

Transportation and storage for certified product by PSS-Blang Simpo have used the system that ensures there is no contamination on the CPO and Kernel product. Moreover, PSSS Blang Simpo POM only processes the raw material (FFB) from nucleus plantation and not receiving FFB from other sources.


5.2

The facility shall provide documented proof that the RSPO certified palm oil can be traced back to only certified segregated material.

Blang Simpo mill able to presents proper documentation on the product and its traceable up to the source of the raw material through the Weight Bridge System. Blang Simpo mill only process the FFB from nucleus plantation (certified plantation) and not receiving FFB from other sources. Sample of evaluated document is the delivery order from source of FFB (number of bunches, Block, Division, date, and sources).



ASSESSMENT REPORT


5.3

In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that:

The crush operator conforms to these requirements for segregation

The crush is covered through a signed and enforceable agreement

Blang Simpo POM, PSS only sale Palm Kernel to third party and has no partnership with the Kernel Crushing Plant management.


6 Training

6.1

The facility shall provide the training for all staff as required to implement the requirements of the Supply Chain Certification Systems

The certificate owner has delivered the capacity building on RSPO supply chain certification training on 27 January 2014 that was reported to the Department of Plantation Sustainability Quality Management (ESH Manager) and was attended by 19 personnel from Estate and mill.


7 Claims

7.1 The facility shall only make claims regarding the use of or support of RSPO certified oil palm products that are in compliance with the RSPO Rules for Communications and Claims.

Blang Simpo POM, PSS able to present the claim to support the RSPO certified product that is in accordance with the RSPO Guidelines for Communication and Claims, which is stated in Sales Contract, Delivery Order and Invoice.



ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use (Only apply for Surveillance Assessment Report)

1. Evidence of permission or approval certificate and logo from Certification Body which submitted by Client

X or√

S-1 Certificate holder has had approval / permit to use the certificate with the number MUTU-

RSPO/026 and Confirmation Letter “Sertifikat RSPO dan Aturan Penggunaan Logo”

Status:

2. Implementation of certificate and logo used by Client comply with size and type (shape) against Guideline of Logo Use

X or√

S-1 Certificate holder does not use the logo on-product and off-product in the scope of PT Perkasa

Subur Sakti, PT Padang Palma Permai and PT Perusahaan Srikuala.

Status:

3. Implementation of Certificate and Logo is not used on product

X or√



Status:

4. Controlling of Certificate and Logo, including withdrawing inappropriate logo.

X or√



Status:


ASSESSMENT REPORT


3.4. Summary of RSPO Partial Certification.

The Management Unit name, under subsidiaries:

2.1

There is compliance with all applicable local, national and ratified international laws and regulations.

X or√

The entire units operating under the SIME DARBY organization (subsidiary) carry out the certification process according to TIME BOUND PLAN.

√

Status:

2.2

The right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights.

X or√


√

Status: Complied

6.3

There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties.

X or√


√

Status: Complied

6.4

Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

X or√


√

Status: Complied

7.3

New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values.

X or√


√

Status: Complied

7.5

No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

X or√


√

Status: Complied

7.6

Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements.

X or√


√

Status: Complied


ASSESSMENT REPORT


3.5 Identification of Findings, Corrective Action, Observations, Opportunity for Improvement and Noteworthy Positive Components.

3.5.1 Identification of Findings, Corrective Actions and Observations at ST-2 Assessment

No. Ref Std/ indicator

Non-compliance sources Area Grade Dead line Request for

corrective actions Observation and Date Status

Closing Date

2011.10

Major 2.2.2

Legal boundary of land ownership There is no sufficient evidence on the legal boundary of land ownership that has been demarcated. For instance: there is no plan and realization of the HGU poles maintenance that has been drafter and implemented.

Estate Major Before report issued

Provide Legal boundary of land ownership

Company presents the evidence of HGU poles maintenance plan and implementation. For instance: the inventory list of HGU poles and HGU poles maintenance. Based on this record and field visit, there are some missing HGU. The company has delivered letter (on 21 April 2011) to the environment agency of Aceh province, and request the re installation for the messing HGU poles.Until the stage-2 activity, there is no response from the environment agency. The audit team asked the company to be installed the missing HGU poles. Observation on the Re-verification(15/12/2011) Tim auditor considers that the company should follow up the issue about the missing HGU poles by sending another letter to the environment agency. Observation 06/02/14 Based on the verification during the Surveillance-01 audit, the coordination minutes between plantation management and environment agency regarding the request to reinstall the HGU poles of PT. Padang Palma Permai and PT. Perkebunan Sri Kuala on

Closed 06/02/14


ASSESSMENT REPORT





Closing Date

Wednesday, 21 December 2011 is available. The certificate owner has presented the program and realization of the poles management and maintenance.

2011.11

Major 2.2.3

Certainity of the plantation area There is an ara of 877 ha (including on the published HGU in 1993) in Blang Simpo 01 Estate and there still an evidence on the occupation land by the community within the HGU area of Batang Ara Estate (Block 37 and Block 17).

Estate Major Before report issued

Providing the evidence of settlement among parties.

For the occupation area, 877 ha in Blang Simpo 01 Estate, there are no settlement progress, which has been received by parties, meanwhile for occupation area in Batang Ara Estate (Block 37 and Block 17). Landowner mentions that the occupation land on behalf of Mr. Abdul Manan is 1.2 Ha (has a letter with Lubuk Siduk village in 2009), Mr. Abu Sofyan is 12 Ha, and Mr. Sofyan is 7,49 Ha (has a compensation letter over the land with head of Alur Selalas village). Still in conflict regarding the land ownership with the community, in which this area also known as a residential place for community. The company cannot show the evidence on settlement progress in this area. Observation on the Re-verification(15/12/2011) The company still not able to presents the settlement document over the occupation area. 15 January 2012 The company has shown the statement letter from the Director of PT Padang Palma Permai (No. 298/PPP/SP/XII/11) regarding the company’s policy over the occupation land. In

Closed 28/08/12


ASSESSMENT REPORT





Closing Date

this settlement letter, the company has a commitment to release the occupied land if there is a sufficient legal proof or if the area is impossible to release from the company’s area, and then the company will consider to enclave this area.

2011.31

Minor 4.7.2

Periodic medical examination: there is no sufficient program and realization over the periodic medical examination for personnel who work in station or high-risk work place. For instance: medical examination for the boiler operators, for generator machine operators, for spraying personnel etc.

Mill and Plantation

Minor S-1 Providing the record evidence of the program and realization over the periodic medical examination for personnel who work in station or high-risk work place.

The company has drafted the periodic medical examination [program for personnel (mill’s personnel, spraying personnel, fertilization personnel and harvesting personnel), the company also showed the realization evidence over the periodic medical examination implementation for spraying and harvesting personnel. However the audit team can‘t find any mill’s personnel or fertilization personnel who have had the medical examination. Observation on the Re-verification (15/12/2011) The company can’t show that evidence of medical examination for its mill’s personnel. The audit team suggests the company to conduct the medical examination by using the proper indicator for its personnel who work in station and high risk work place (audiometric examination) Observation S-1, 7 February 2014,

Periodic medical examination by the Blang Simpo mill (PT Perkasa Subur Sakti) for 15 operators in high risk stations, such as boiler, sterilizer, clarification, laboratory,

Closed 7/2/2014


ASSESSMENT REPORT





Closing Date

maintenance, which was conducted by the Graha Bunda hospital on4 December 2013 by dr. Muhammad Ramdani.

Medical examination for chemical spraying officers has been conducted periodically such as the medical examination in Aceh Tamiang public hospital from 16 January to 28 January 2014 for 42 personnel and the result of the medical examination is available. Type of examinations is Haematology (Erytrocyte, Hemoglobin, Leucocyte, Hernotrokit), blood examination (SGOT, SGPT). Complete examination has been conducted annually.

Periodic medical examination has been conducted by Blang Simpo 2 estate toward its 33 spraying and harvesting personnel in the public hospital of Graha Bunda, Aceh Timur on 4 December 2013 by dr.Nurleleily, Sp.PK.

2011.35

Minor 4.7.6

Occupational health and safety tools and first aid: There is no sufficient compliance evidence on the existing Occupational health and safety tools and first aid. For instance: fire extinguisher, Hydrant, and first aid boxes in Blang Simpo mill’s area, fire extinguisher in Tamiang estate, Blang Simpo 01 and

Mill and Plantation

Minor S-1 Provide sufficient evidence regarding the compliance on occupational health and safety and first aid that is in accordance with the risk.

Based on field visit, the audit team found that there were risks in some stations or high risk work that were not completed with the sufficient occupational health and safety (for instance: fire extinguisher and first aid boxes). For instance in the sterilizer station, hazardous waste warehouse in the mill. The company has requested the additional occupational health and safety tools (fire extinguisher and first aid boxes) to the

Closed 7/2/14


ASSESSMENT REPORT





Closing Date

Blang Simpo 02 Estate, etc.

headquarter office in Jakarta, but get no response yet. Observation on the Re-verification(15/12/2011) Based on field visit, the audit team found that there are no occupational health and safety tools as well as the first aid boxes in Blang Simpo mill (Sterilization station, hazardous waste warehouse) and periodic evaluation over the tools. The audit team suggests the company to comply the requirement for the occupational health and safety tools and first aid in Blang Simpo mill and conducting periodic evaluation (mill and Estate). Observation S-1, 6 February 2014.

BSE-2 has comply with the occupational health and safety tools and provide the first aid material, such as 42units of fire extinguisher and Lay Out of fire extinguisher position that put in the main office in BSE 2, Division office, warehouse, Workshop, gasoline tank, poly clinic, housing and security hut. There are 32 unit of first aid box, which are used in estate office, division office, childcare, harvesting foreman, maintenance foreman, fertilizing foreman. There 20 items in each first aid box.

Tamiang Estate and Batang Ara estate has 34 units of fire extinguisher as a compliance on the occupational health and safety which


ASSESSMENT REPORT





Closing Date

are distributed in state office, workshop, warehouse for fire extinguisher tools, FFB, hazardous waste, housing, generator hut, division office, clinic. There is also periodic evaluation on the fire extinguisher and all the tools are in a good condition.

2011.43

5.1.3 6.1.3 7.1.1

Impact analysis document The existing Impact analysis document is the document over the environment evaluation study, which covers the management and environment monitoring and it’s not based on the actual condition of the company, and there is no revision yet. For instance: the location’s scope of study, company’s name, indicator of important impact which been monitored and managed, replanting activity etc.

Mill and Estate

Minor S-1 Provide the actual environment impact analaysis that is based on the recent condition.

There is no evidence on the revision of the environment impact analysis document (SEL), which is in accordance with the actual operation condition. For instance: the location of study, company’s name, important indicators which being monitored and managed, replanting activity, etc. Observation on the Re-verification(15/12/2011) There is a change on the operation’s scope of company with the idle operation of Tamiang mill. On this regard, the company has not made any revision over the existing environment analysis document (SEL). However, the company has reported the management and environment monitoring that is in accordance with the actual condition through the RKL/RPL report. The auditor team considers that the company should make a revision on the environment management and monitoring matrix in the SEL document of PT PPP, which has been drafted by related institution. Observation on 6 February 2014

Closed 06/02/14


ASSESSMENT REPORT





Closing Date

Based on documents, the certificate owner has had the UKL/UPL certificate of PT Perkebunan Padang Permai based on decision letter from the Bupati of Aceh Timur No. 592.12/23/2011 on 14 February 2011 with location for activity is planned in Peureulak Timur sub disrict, Aceh Timur disrictwhich cover an area of 1.239 ha. More over, the company has also had the UKL/UPL of PT Perkebunan Padang Permai for activity’s location in Gampong Jengki and Tualang Pateng village, Peureulak sub disrict, Aceh Timur disrictwhich covers an area of 83,37 ha. UKL/UPL comes from the suggestion of Bupati Aceh Timur which stated in the decision letter from the Bupati of Aceh Timur No. 538.31/651/2013 regarding the environment permit for the palm oil plantation by PT Padang Palma Permai. matrik of UKL/UPL is also available in the document.

2011.76

5.6.3 Smoke Density Meter; the company needs to consider having smoke density meters in Blang Simpo mill.

Mill Minor S-1 The company needs to consider having smoke density meters and to optimize the usage

The company has the on other boiler station. Closed 6/2/2014


ASSESSMENT REPORT


3.5.2 Identification of Findings, Corrective Actions and Observations at S1 Assessment

No. Ref Std/

indicators Non-compliance sorces Area Grade

Deadline Request for corrective actions

Observation and date Status Closing

Date

2014.01

Major 2.1.1.

Regulation obedience. Based on the documents’ review, it’s known that worker in Blang Simpo mill: IKHWANI is working with a temporary working agreement (PKWT) and his working contract has been extended for more than 1 time. This is not obeying the decision from the ministry of manpower No.100 in 2004 regarding the regulation on PKWT.

PKS Major 6 April 2014

The certificate owner should present that the worker with a temporary working agreement in Blang Simpo mill already in accordance with the applicable regulation.

Root cause: The unit management of Blang Simpo mill is not understand the PKWT regulation Corrective action:

There are 21 personnel with a PKWT contract that are not extended by the management of Blang Simpo mill which is in accordance with the termination contract No. 379 up to No. 390 /POM/BSF/IV/2014 that explain, start from 15 April 2014 these personnel temporary contract agreement will be terminated.

Conducting the socialization of regulation on the manpower, which is in accordance with the law No.13 in 2003 and decision letter from the ministry of manpower No.100 in2004, which was implemented on 4 April 2014 and was attended by 13 participants? (The attendance sheet and copy of outline are available).

Preventive action:

Closed With observations

4 April 2014


ASSESSMENT REPORT


No. Ref Std/




Date

The Unit management of Blang Simpo mill will not use the temporary working contract agreement (PKWT).

Conducting the coordination and consultation to related institutions (manpower agency of Aceh timur District) regarding the manpower issue.

2014.02

Minor 2.1.4

The company has conducted the evaluation on the compliance of the applicable and related regulation but based on documents’ review in December 2013and interview with one of the RSPO member, the certificate owner not yet conducted the evaluation over the regulation of ministry of agriculture No. 98 in 2013.

Estate and mill

Minor S-2 The certificate owner is consistently conducting the evaluation over the regulation compliance (policy and regulation) as regulated in the obedience on the policy and regulation No. 021/PPP-PUUP/IV/11.

Root cause: Corrective action: Preventive action:

Open

2014.03

Minor 4.2.1

Periodic soil analysis: The 5 years periodic soil analysis is not conducted yet since November 2008. This is not complying with the applicable soil analysis procedure.

Estate Minor S-2 The certificate owner should implement the periodic soil analysis based on existing procedure in order to support the effort to maintain soil structure, organic material of the soil, soil nutrition status, and the soil microbiology.


Open


ASSESSMENT REPORT


No. Ref Std/




Date

2014.04

Minor 4.4.2

Based on documents’ review on the water examination, its known that: 1. The coliform microbiology

examination over the dam water in Division II of Batang Ara Estate (BAE), it’s already exceeding the standard threshold, which is 920 MPN, meanwhile the required threshold is 10 MPN in nozzle and 50 MPN in non-nozzle as stated inthe ministry of health regulation No. 492 in 2010.

2. Some indicators on the dam water examination in Division III of Batang Ara Estate (BAE) have been exceeding the standard threshold, with the acidity level of 6.22 (standard quality 6.5-9.0), Mangan of 0.56444 mg/L (standard quality 0.5 mg/L), Nitrat of 18 mg/L (standard quality0.1 mg/L), and organic material of 28.44 mg/L (standard quality10 mg/L).

Estate Minor S-2 Certificate owner has consistently protected the water source from pollution.

Root cause: Corrective action: Preventive action

Open

2014.05

Minor 4.7.3

Implementation of the risk analysis. Field observation’s results:

Boiler operator in Blang Simpo mill not using the PPE (ear plug)

Mill and estate

Minor S-2 Certificate owner must be able to show the implementation of risk management that in accordance with the risk


Open


ASSESSMENT REPORT


No. Ref Std/




Date

in mill’s station when they are working.

The workshop personnel not wearing the PPE (Apron, gloves and protective glasses) when they are performing the cutting work.

Harvesting personnel in Block A–014, Division 1, Tamiang estate not wearing the PPE like boot.

These findings are not in accordance with the implementation of risk analysis which owned by the certificate owner.

analysis document.

2014.06

Minor 4.7.4

Training for operator. Operator license (SIO) for heavy equipment personnel and transport personnel in Tamiang estate and Batang Ara estate has been expired.

Estate Minor S-2 Certificate owner should present the evidence that it has implemented the occupational health and safety training, such as the operators should have the valid operator license.


Open

2014.07

Minor 4.7.6

Evidence on the PPE and first aid compliance Based on field observation and interview with personnel, its known that:

Harvesting personnel in Block A-014 Division 1, Tamiang estate have not got the PPE (boots) since 2009

Empty fruit bunches application

Mill and estate

Minor S-2 Certificate owner should presents the evidence that it has implemented the compliance on the occupational health and safety regulation (PPE and first aid)


Open


ASSESSMENT REPORT


No. Ref Std/




Date

personnel in Tamiang estate have not got the PPE (boots and gloves)

The first aid box that brought by chemical foreman (Division 2, BSE 2), fertilizer foreman (Division3, BS-2), harvesting foreman (Division 3, BSE 2), the first aid box in mill’s workshop is not complete and not comply the list of contain which owned by the BSE-2.

2014.08

Minor 6.7.1

Personnel under 18 years old. Based on field observation in Division 3 BSE 2 Block F02, there is 16 years old worker, named Amri that work as a fruit buyer. This finding is not comply the company’s regulation (PKB period 2012-2014) article 16 regarding the personnel recruitment point 1.1.2 which required all personnel should at least at the age of 18 years old during the hiring.

Estate

Minor S-2 Company should hire personnel with a minimum age of 18 years old, which is in accordance with the company’s collective labor agreement and the government’s regulation.


Open


ASSESSMENT REPORT


3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1. Minor

4.6.2 Personnel should know the result of the periodic examination that is conducted by the company toward operators and personnel in high-risk station.

2. Minor

6.2.2 Company should state the stakeholders’ identity list, such as name, address, institution and telephone number.

3. Minor 6.2.3

Company should records aspirations and responses as well as follow up every information request.

4. Minor 6.6.1

Company should coordinate with the personnel to support the worker union socialization.

5. Minor 6.11

Company should create the annual tax recapitulation.

3.5.4 Noteworthy Positive Components

No Ref Std Descriptions

1. 4.7 Certificate owner has conducted the adequate health care over its personnel.


ASSESSMENT REPORT


3.6 Summary of Arising Issues from Public, Management and Auditor Response

Isues from public (institution/NGO/Community)

Management’s response Auditor’s response

Environment and cleaness agency of Aceh Tamiang and Aceh Timur district (head of environment division and head of environment impact analysis & evaluation sub division &) The positive and negative aspects: The company has a good commitment over the environment management, for instance: 1. Company has the environment dcument, for instance: environment

evaluation’s study and document of environment monitoring. 2. Company has the land application permit. 3. Company has the permit to store the hazardouse waste. 4. Company reports the implementation of RKL/RPL for each semester. 5. There is no complaint from community regarding to pollution. 6. Information request from environment and cleaness agency regarding the

environment is well responded and on time by the company.

The company will keep its consistency on environment management, which is in accordance with the applicable regulation.

In general, the environment & cleaness agency of Aceh Tamiang and Aceh Timur district consider the certificate owner has shown its obedience toward the applicable regulation. In accordance with the criteria 5.1; 5.3 and 6.1

The manpower and transmigrasi agency of Aceh Tamiang district (head of training& manpower division) the manpower and transmigrasi of Aceh Timur district (head of manpower’s monitoring division) The positive and negative aspects: The company has has a good commitment over the manpower and transmigration, for instance: 1. There is no work accident. 2. There is no discrimination on the recruitment. 3. The wages is above the local minimum wage. 4. Company has the LKS Bipartit and report it to the manpoer and

transmigration agency. 5. There is no problem in social insurance/ jamsostek. 6. There is no KHL

The company will improve the P2K3 reports, which sometimes were delayed.

In general, the manpower and transmigrasi agency of Aceh Tamiang district and the manpower and transmigrasi of Aceh Timur district consider the company has shown its obedience toward the applicable regulation. menganggap pemegang sertifikat telah menunjukan kepatuhan terhadap ketentuan


ASSESSMENT REPORT


7. the P2K3 reports has been sumbitted eventhought sometime there is a delay on the submission if these reports.

peraturan perundangan. In accordance with the criteria 4.7; and principle 6

Forestry & plantation agency of Aceh Tamiang and Aceh Timur District ( Head of forestry & plantation division) The positive and negative aspects: The company has a good commitment to submit the periodic plantation operatio’s report. Company alwasy obey the regulation related to plantation. The company has the legal status over an area of 1.238 Ha which is conflicted with the PT. Para Sawita. The company commits to develop the plasma plantation above an area of 720 Ha that related to land dispute with the community of terkait konflik tanah Cek Mbon and Koperasi Rimba Jaya II.

The company will keep its obedience over the applicable regulation especially on the plantation management.

In general, the forestry & plantation agency of Aceh Tamiang and Aceh Timur District consider the company has shown its obedience over the applicable regulation. In accordance with the criteria 2.2

Land agency of Aceh Tamiang and Aceh Timur district (head of BPN division) The positive and negative aspects: Company has a good commitment related to land/ area, such as: 1. Company has the HGU 2. There is no conflict over the land 3. Coordination between the company and related institutions runs well.

Thank you for the land agency of Aceh Tamiang and Aceh Timur district (head of BPN division) response, the company will keep its obedience to the applicable regulation and keeps a good partnership with community as well as keeps a good coordination with the land agency.

In general, the land agency of Aceh Tamiang and Aceh Timur districtconsider the company has presented a good obedience toward the applicable regulation.

Datuk Tanjung Gelumpang village: The positive and negative aspects: - Company gave several contributions to local community in Tanjung

Gelumpang village, such as grant for the commemoration of Independence Day (17 August), qurban, grant for Islamic celebration, grants for children etc.

Company takes a follow up action on the proposal from head of Tanjung Gelumpang village, because since2008, the management

In general, community in Tanjung Gelumpang village consider the certificate owner has shown its obedience over the appllicable


ASSESSMENT REPORT


- Thecommunity of Tanjung Gelumpang village wish that the company will give a contribution for the development of Baiturrahman mosque, such as sermon table and wudhu place, road repair for about 2,5 km from community residence to Batang Ara plantation, including to repair 4 bridges, provide work opportunity for youngster, provide monthly allowance to village administrative staff and Al-Quran teacher.

- Since 2008, the committee for the development of Baiturrahman mosque has submitted their grant request to the company for about 2 times through the KTU, but until now the company does not respond this request yet.

of company had several managers, so the company needs to coordinate with the head of tanjung Gelumpang village.

regulation. There is no objection to extent the RSPO certificate.

Head of Kebun Batang Ara village: The positive and negative aspects: - Company gives contribution to the community for the commemoration of

Independence Day (17 August), meat, grants for Islamic event, grants for children, etc.

- Company always gives response to each and every complaint. Abu Sofyan: - Relationship between company and Abu Sofyan, the owner of ± 12 ha that is

inside the HGU area of Batang Ara Estate runs well. Abu Sofyan never feels being annoyed by the company and he is willing to release his area with a compensation of IDR. 400,000,000.

Sofyan: Relationship between company and Sofyan, the owner of ± 8 ha that is inside the HGU area of Batang Ara Estate runs well. Sofyan never feels being annoyed by the company but Sofyan is not willing to release his land to the company.

Thank you to head of Kebun Batang Ara village: The company will keep maintaining the good relationship.

In general, community in Kebun Batang Ara village consider the certificate owner has shown its obedience over the appllicable regulation. There is no objection to extent the RSPO certificate.

Keuchik of Tualang village: The positive and negative aspects: - The relationship between company and community runs well, complaints from

community as well responded by the company, the CSR is well implemented, there is no environment pollution due to company’s activity and work opportunity is available for local community.

- Land dispute on ± 800 ha land has been settled through the mediation from

Thank you for the response from Datuk of Tualang village: The company will keep the good relationship.

In general, community in Tualang village consider the certificate owner has shown its obedience over the appllicable regulation. There is no objection to extent the RSPO certificate.


ASSESSMENT REPORT


government. Company is willing to enclave its area and is under the enclaving process.

Keuchik Jengki village The positive and negative aspects: - The relationship between company and community runs well, complaints from

community are well responded by the company, the CSR is well implemented, there is no environment pollution due to company’s activity and work opportunity is available for local community.

- Contractor mentioned had a productive partnership with the company, the payment is based on agreement letter, and it is mandatory for the contractor to follow the company’s regulation especially in the occupational health and safety and insurance.

Ramli - Contractor mentioned had a productive partnership with the company, the

payment is based on agreement letter, and it is mandatory for the contractor to follow the company’s regulation especially in the occupational health and safety and insurance.

Thank you for the response from Datuk Jengki: The company will keep the good relationship.

In general, community injengkivillage consider the certificate owner has shown its obedience over the appllicable regulation. There is no objection to extent the RSPO certificate.

Head of Village (Keucik Cek Mbon) Conflict with community over the 350 ha landhas had a potential solution, the local government mediates this conflict and there is 720 ha land for the establishment of plasma plantation. Company usually gives grants such as heavy equipment to road construction, meat grant during the islamic event, etc. Recruitment for local community is consider still low and the company is expected to give higher opportunity for local applicants. There is no environment pollution.

Thank you for the response from head of village Cek mbon (Keuchik Cek Mbon): The company with the government and community will try to implement the establishment of plasma plantation in order to increase the community’s economic condition.

In general, community inCik Embunvillage consider the certificate owner has shown its obedience over the appllicable regulation. There is no objection to extent the RSPO certificate.


ASSESSMENT REPORT


Until now, there is no capacity building from the company to increse the economic condition of local community.

Worker union and gender commitee (Blang Simpo mill) - There is an organigram of the worker union, but no work plan yet. - There is no compaint regarindg the sexual assault or sexual harrasment. - Chairman of gender commitee hopes that the rotation of gender commitee

staff should come from internal plantation personnel in order to make the compalint mechanism more easy to implement because the personnel know better about the plantation area.

Thank you for the response from the worker union and gender committee (Blang Simpo mill): Company will deliver the socialization to union member staff (Blang Simpo mill) from the union workerstaff (TME) which has the well running union worker program, further related to gender committee staff will be evaluated abased on its need.

n accordance with the description in criteria 6.6;6.7; 6.8 and 6.9


ASSESSMENT REPORT


4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

Hereunder sign by management representative from inspected company to acknowledge a field assessment and agree for all content explained in this assessment report, included of non-compliance findings.

Signed on behalf of:

PT PPP, PSK, PSS

Mutuagung Lestari

Head of PSQM Minamas Plantation

Lead Auditor

Mohamad Pirabaharan

M. Syarip Lambaga

Friday, April 04th 2014

Friday, April 04th 2014


ASSESSMENT REPORT


Appendix 1. List of Stakeholder Contacted in the RSPO Certification Process

No Institution/NGO/Community Address Phone/Email Form of Contact

Date of Contact

1. Head of Environmental Agency

of Aceh Tamiang District.

Karang baru Sub District, Aceh Tamiang District, Aceh Province

- Meeting February, 04th

2014

2. National land agency of Aceh

Tamiang District



2014

3. Head of Labour agency of Aceh

Tamiang District



2014

4. Plantation and forestry agency

of Aceh Tamiang District



2014

5. The Head of Environmental

Agency of Aceh Timur District

Peureulak Sub District, Aceh Timur District, Aceh Province - Meeting

February, 05th

2014

6. National land agency of Aceh

Timur District


February, 05th

2014

7. Head of Labour agency of Aceh Timur District


February, 05th

2014

8. Head of Environmental Agency

of Aceh Timur District.


February, 05th

2014

9. Plantation and forestry agency

of Aceh Timur District


February, 05th

2014

10. Tanjung Gelumpang Village Tanjung Gelumpang Village - Meeting

February, 04th

2014

11. Kebun Batang Ara Village Kebun Batang Ara Village - Meeting

February, 04th

2014

12. Tualang Village Tualang Village - Meeting

February, 05th

2014

13. Jengki Village Jengki Village - Meeting

February, 05th

2014

14. Cik Embun Village Cik Embun Village - Meeting

February, 05th

2014


ASSESSMENT REPORT


DATE / TANGGAL 3 – 8 February 2014

PLANNED TIME RENCANA WAKTU

ACTUAL DURATION

DURASI AKTUAL

PROCESSES / CLAUSES TO BE AUDITED PROSES / HAL YANG DIAUDIT

AUDITOR

Monday/Senin, 3 February 2014

06.00 - 08.30 09.00 – 12.00

06.30-10.00

10.00-16.00

Jakarta - Medan Medan – Aceh Tamiang (PT PPP)

SL / ON / DN / SHL / BP

12.00 – 14.00 - BREAK

14.00 - 14.30

14.30 - 17.00

16.00-16.30

16.30-17.30

Opening Meeting

Tamiang Estate + Batang Ara Estate Document Review and Review of Previous Visit Non-conformance (Stage-2)



Tuesday/Selasa, 4 February 2014

08.00 - 12.00

08.00 – 12.00

08.00 – 12.00

08.00-12.00

08.00-12.00

08.00-12.00

Stakeholders consultation to Related Institution (Aceh Tamiang District Government and Local NGO)

Stakeholders consultation to Nearest village and community leader (Kebun Batang Ara, Tanjung Gelumpang and Dalam Villages)

Field Observation: Batang Ara Estate + Tamiang Estate Legal operational and Conservation Area Worker facilities (housing, health clinic, clean water, etc) Manuring, Spraying, Harvesting, best agricultural practices

SL / SHL

DN

ON / BP

12.00 – 14.00 12.00 – 14.00 BREAK

14.00 – 17.00 14.00 – 17.00 Batang Ara Estate + Tamiang Estate: Document Review and Review of Previous Visit Non-conformance (surveillance-1 and Stage-2)


Wednesday/Rabu, 5 February 2014

08.00 – 12.00

08.00 – 12.00

Stakeholders consultation to Related Institution (Aceh Timur District Government and Local NGO)

Stakeholders consultation to Nearest village and community leader (Cik Embun, Tualang Pateng and Jeungki Villages)

SL / SHL / BP

DN / ON

12.00 – 14.00 12.00 – 14.00 BREAK

14.00 – 17.00 14.00 – 17.00 PT.PSS + PT.PPP: Document Review and Review of Previous Visit Non-conformance (surveillance-1 and Stage-2)


Thursday/Kamis, 6 February 2014

08.00 - 12.00

08.00 - 12.00

Field Observation: a. Blang Simpo 2 Estate: Legal operational and Conservation Area

ON / DN / BP

Appendix 2. Assessment Program


ASSESSMENT REPORT


DATE / TANGGAL 3 – 8 February 2014

PLANNED TIME RENCANA WAKTU

ACTUAL DURATION

DURASI AKTUAL

PROCESSES / CLAUSES TO BE AUDITED PROSES / HAL YANG DIAUDIT

AUDITOR

08.00 - 12.00

08.00 - 12.00

Worker facilities (housing, health clinic, clean water, etc) Manuring, Spraying, Harvesting, best agricultural practices b. Blang Simpo POM: WWTP (IPAL), Operational, K3 (OHS), Supply Chain, Land

Application

SL / SHL

12.00 – 14.00 12.00 – 14.00 BREAK

14.00 – 17.00 14.00 – 17.00 Continue checklist fulfilment and audit finding preparation SL / ON / DN / SHL / BP

Friday/Jumat, 7 February 2014

08.00 – 12.00 12.00 – 14.00 16.00-18.00

08.00-12.00 12.00-14.00 16.30-18.30

Batang Ara Estate + Tamiang Estate:

Document Review

BREAK

Closing Meeting


Saturday/ Sabtu, 8 Febuary 2014

22.00-01.30 05.15-08.00

22.30-02.00

05.15-08.00

Aceh Tamiang – Medan Medan (KNO) – Jakarta (CGK)



ASSESSMENT REPORT


Appendix 3. Glossary

AMDAL : Social and Environmental Impact Assessment (Analisis Mengenai Dampak Lingkungan)

APD / PPE : Personal Protection Equipment (Alat Pelindungan Diri)

ASEAN : Association of South East Asian Nations

B3 : Hazardous Material Waste (Bahan Beracun dan Berbahaya)

BAE : Batang Ara Estate

BOD : Biological Oxygen Demand

BSE : Blang Simpo Estate

BSF : Blang Simpo Factory

CPO : Crude Palm Oil

CBD : Convention on Biodiversity

HCV : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Land Use Permit (Hak Guna Usaha)

IUP : Plantation Operation Licence (Izin Usaha Perkebunan)

IPAL : Installation of Waste Distribution (Instalasi Penyaluran Air Limbah)

JAMSOSTEK : Social Assurance of Labor (Jaminan Sosial Tenaga Kerja)

Jankos / EFB : Janjangan Kosong / Empty Fruit Bunch

K3 / OHS : Keselamatan dan Kesehatan Kerja. (Occupational Health and safety)

KER : Kernel Extarction Rate

LC : Land Clearing

OER : Oil Extarction Rate

PHT / IPM : Pengendalian Hama Terpadu (Integrated Pest Management)

PK : Palm Kernel

PKS / POM : Pabrik Kelapa Sawit / Palm Oil Mill

POME : Palm Oil Mill Effluent

PPP : Padang Palma Permai

PSD : Plantation Services Departement

PSQM : Plantation Sustainability and Quality Management

PSK : Perusahaan Srikuala

PSS : Perkasa Subur Sakti

RKL/RPL : Rencana Kelola Lingkungan/ Rencana Pemantauan Lingkungan. (Environmental Management Plan/ Environment Monitoring Plan)

SOP : Standart Operating System

S-01 : Surveillance 1

TBS / FFB : Tandan Buah Segar (Fresh Fruit Bunches)

TME : Tamiang Estate

UKL/UPL : Upaya Kelola Lingkungan/ Upaya Pemantauan Lingkungan. (Environmental Management Efforts/ Environmental Monitoring Efforts)

. MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Blang...

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