· SPO – ii4006a.5 ... Ayer Hitam Bahau, Negri Sembilan 2,640 2012 Certified Batang Jelai...

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management/Owner : KUALA LUMPUR KEPONG Bhd

Plantation Name : NILO 2 POM – PT ADEI PLANTATION &

INDUSTRY

Location :

Sungai Buluh Village, Bunut Sub district,

Pelalawan District, Riau Province

Certificate Code : MUTU-RSPO/xxx

Date of certificate issue : -

Date of expiry of certificate : -

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

by

ST-1 May 21 – 23, 2013

Octo Nainggolan, Bukti Bagja, Naila

Karima, Moh. Arif Yusni, R.

Sukasmianto Taufik Margani

Tony Arifiarachman

ST-2 June 17, 20 – 22, 2013 Bukti Bagja, Muardi Marwas, Naila

Karima, Moh. Arif Yusni,

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:

ST-2 September 11, 2013 - -

http://www.mutucertification.com/

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Nilo 2 POM – PT Adei Plantation & Industry, KUALA LUMPUR KEPONG Bhd

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Adei Plantation & Industry – Nilo 2 POM Figure 2. Operational Map of PT Adei Plantation & Industry – Nilo 2 POM

1 2

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Plantations, Mill and Area Statement 3

1.5 Description of Supply Base 4

1.6 Dates of Plantings and Cycles 5

1.7 Tonnage Certified 5

1.8 Other Certifications 6

1.9 Time-Bound Plan for Other Management Units 6

2.0 ASSESSMENT PROCESS

2.1 Certification Body 9

2.2 Assessment Team 9

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 9

2.4 Stakeholder Consultation and List of Stakeholders Contacted 12

2.5 Date of Next Surveillance Visit 12

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

13 33

3.3 Conformity Checklist of Certificate and Logo Use 36

3.4 Summary of RSPO Partial Certification 37

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

38

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 41

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 46

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 47

2. Assessment Program 48

3. Glossary 50

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 1 Prepared by Mutuagung Lestari for Nilo 2 POM – PT Adei Plantation & Industry, KUALA LUMPUR KEPONG Bhd

Figure 1. Location Map of PT Adei Plantation & Industry – Nilo 2 POM

Lokasi Nilo POM 2

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 2 Prepared by Mutuagung Lestari for Nilo 2 POM – PT Adei Plantation & Industry, KUALA LUMPUR KEPONG Bhd

Figure 2. Operational Map of PT Adei Plantation & Industry – Nilo 2 POM

Nilo Timur 1 (Division V

and VI)

Nilo POM 2

Nilo Timur 2 (Division

VII and VIII)

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 3 Prepared by Mutuagung Lestari for Nilo 2 POM – PT Adei Plantation & Industry, KUALA LUMPUR KEPONG Bhd

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 KUALA LUMPUR KEPONG Bhd (PT ADEI PLANTATION & INDUSTRY)

1.2.2 Contact person Tan Kei Yoong

1.2.3 Company address and site address Kompleks Pertokoan Taman Anggrek Blok B2 – B5 Jl. Tuanku Tambusai,Pekanbaru, Riau

1.2.4 Telephone 0761 – 571885, 571861/62

1.2.5 Fax 0761 – 571884

1.2.6 E-mail [email protected]

1.2.7 Web page address www.klk.co.id

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

Tan Kei Yoong

1.2.10 Registered as RSPO member October, 8 2004 Registration Number 1-0014-04-000-00

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 ADEI PLANTATION & INDUSTRY

1.3.4 Number of management unit One (1) mill Nilo 2 POM with FFB supply from two (2) estate which are Nilo Timur 1 Estate and Nilo Timur 2 Estate

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Nilo 2 POM Village of Sungai Buluh,Subdistrict of Bunut, District of Pelalawan, Province of Riau

00o21' 9" 102o 5' 41"

1.4.2 Location of Supply Base

Name of Supply Base Location

GPS

Latitude Longitude

Nilo Timur 1 Estate Telayap Village, Pelalawan Subdistrict, Pelalawan District, Riau Province

0°12’ – 0o25’ 101°55’-102°10’

Nilo Timur 2 Estate Sungai Buluh Village, Bunut Subdistric, Pelalawan District, Riau Province

0°12’ – 0o25’ 101°55’-102°10’

http://www.klk.co.id/


ASSESSMENT REPORT


1.4.3 Tenure

Private -

State 6,576 Ha

Community -

1.4.7 Area Statement

Total area 6,576 Ha

Mature area 6,180 Ha

Immature area - Ha

Mill 6 Ha

Emplashment 241 Ha

Infrastructure 49 Ha

Nursery - Ha

Occupation - Ha

Others area 88 Ha

HCV 12 Ha

1.5 Description of Supply Base

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 (%)

Nilo 2 POM 60 144,574.90 31,582.468 21.85 6,950.335 4.81 - -

*Production data on June 2012 –May 2013

1.5.2 Description of Estates

Name of Estates Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

Nilo Timur 1 Estate 3,466 3,173 55,475.120 17.48 48,796.70 87.96

Nilo Timur 2 Estate 3,110 3,007 60,911.890 20.26 55,747.36 91.52

TOTAL 6,576 6,180 116,387.010 18.83 104,544.06 89.82


1.5.3 Smallholders and other source

Name of sources Members Location

Total Area (Ha)

FFB (tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

Nilo Barat 1 Estate - Kemang Village, Pangkalan

Kuras Subdistrict, Pelalawan District, Riau Province

2,950 49,014.41 175.870 0.36

Nilo Barat 2 Estate

- Telayap Village, Pelalawan Subdistrict, Pelalawan District, Riau Province

3,334 58,829.33 1,369.72 2.33

KKPA Telayap - - - - 3,482.45

KKPA Sungai Buluh - - - - 14,431.59


ASSESSMENT REPORT


KKPA Batang Nilo Kecil

- - - - 33.39

SWP Ladang Mutiara

- - - - 17,455.11

SWP KKPA Sungai Buluh

1,390.38

CV. Yusril Bertuah - - - - 1,692.330

TOTAL 40,030.840


1.5.4 Product categories FFB/CPO/PK

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year

Hectarage

Nilo Timur 1 Estate (Ha)

Nilo Timur 2 Estate (Ha)

Total (Ha)

2000 1,305 0 1,305

2001 1,002 386 1,388

2002 0 368 368

2003 809 2,253 3,062

2004 57 0 57

TOTAL 3,173 3,007 6,180

1.6.2 New Planting area after November 2007 - Ha

1.6.3 Planting Cycle 1st/2nd Cycle 25 Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production - Tonnes/year

CPO Production - Tonnes/year

Palm Kernel (PK) Production - Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estates Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Nilo Timur 1 Estate 3,466 3,173 58,556 18.45

Nilo Timur 2 Estate 3,110 3,007 66,896 22.24

TOTAL 6,576 6,180 125,452 20.29

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 (%)

NILO 2 POM 60 125,452 27,599.44 22 6,272.6 5 - -


ASSESSMENT REPORT


1.8 Other Certifications

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 OF KUALA LUMPUR KEPONG Bhd

MANAGEMENT UNIT LOCATION

Coverage Area (Ha)

Time Bound

Status

P O M Estate (Supply Base)

INDONESIA

Berau POM Malindomas Perkebunan Berau, Kalimantan Timur 7,971 2014

Hutan Hijau Mas Berau, Kalimantan Timur 7,288 2014

Jabontara Eka Karsa Berau, Kalimantan Timur 14,086 2014

Karya Makmur Abadi Mentaya Hulu, Kalimantan Tengah

13,127 2014

Menteng Jaya Sawit Perdana

Mentaya Hilir Utara, Kalimantan Tengah

6,399 2014

Mulia Agro Permai Baamang, Kalimantan Tengah

9,056 2014

Steelindo Wahan Perkasa POM

Steelindo Wahana Perkasa

Belitung, Bangka Belitung 14,065 2012 Audited on 2013

waiting for certification

process

Parit Sembada POM

Parit Sembada Belitung, Bangka Belitung 3,990 2013

Alam Karya Sejahtera Belitung, Bangka Belitung 6,012 2013

Mandau POM Mandau Bengkalis, Riau 14,799 2012 Certified

Nilo POM Nilo Pelalawan, Riau 12,860 2012 Audited 2013

Tapung Kanan POM

Sekarbumi Alamlestari Kampar, Riau 6,200 2012 Certified

Mutiara Kampar, Riau 1,800 2014

Gohor Lama POM Basilam Langkat, Sumatera Utara 2,337 2014

Gohor Lama Langkat, Sumatera Utara 3,307 2014

Tanjung Beringin Langkat, Sumatera Utara 4,157 2014

Maryke Langkat, Sumatera Utara 2,827 2014

Bekiun Langkat, Sumatera Utara 2,979 2014

Padang Brahrang POM

Padang Brahrang Langkat, Sumatera Utara 2,024 2014

Bukit Lawang Langkat, Sumatera Utara 1,482 2014

Tanjung Keliling Langkat, Sumatera Utara 2,360 2014


ASSESSMENT REPORT


PENINSULAR MALAYSIA

Batu Lintang POM Pelam Kulim, Kedah 2,526 2013 certified

Batu Lintang Serdang, Kedah 2,355 2013 certified

Subur Batu Kurau, Perak 1,290 2013 certified

Ghim Khoon Kulim, Kedah 434 2013 certified

Kekayaan POM Kekayaan Paloh, Johor 4,436 2011 Certified

Landak Paloh, Johor 4,451 2011 Certified

Voules Tenang, johor 2,977 2011 Certified

Bandar Tenggara Bandar Tenggara, Johor 950 2011 Certified

New Pogoh Tenang, johor 1,560 2011 Certified

Fraser Kulai, Johor 2,932 2011 Certified

Paloh Paloh, Johor 2,029 2011 Certified

Sungai Bekok Bekok, Johor 636 2011 Certified

Ban Heng Pagoh, Muar, Johor 631 2011 Certified

See Sun Renggam, Johor 589 2011 Certified

Paloh POM Paloh, Johor Outside Crop

Jerang Padam POM

Ayer Hitam Bahau, Negri Sembilan 2,640 2012 Certified

Batang Jelai Rompin, Negri Sembilan 2,162 2012 Certified

Jeram Padang Bahau, Negri Sembilan 2,114 2012 Certified

Kombok Rantau, Negri Sembilan 1,915 2012 Certified

Ulu Pedas Pedas, Negri Sembilan 923 2012 Certified

Gunung Pertanian Simpang Durian, Negri Sembilan

686 2012 Certified

Sungai Kawang Lanchang, Pahang 1,889 2012 Certified

Renjok Telemong, Pahang 1,578 2012 Certified

Tuan Telemong, Pahang 1,353 2012 Certified

Tanjung Malim POM

Tanjung Malim Tanjung Malim, Perak 1,544 2013 Certified

Kerling Kerling, Selangor 619 2013 Certified

Sungai Gapi Serendah, Selangor 603 2013 Certified

Bukit Kato Certified

Kampar Certified

Tuan Mee POM Tuan Mee Sungai Buloh, Selangor 1,556 2012 certified

Kuala Pertang POM

Kerila Tanah merah, Kelantan 2,191 2013

Pasir Gajah Kuala Krai, Kelantan 2,107 2013

Sungai Sokor Tanah Merah, Kelantan 1,603 2013

Changkat Chermin POM

Lekir Manjung, Perak 3,332 2012 Certified 2013

Changkat Chermin Manjung, Perak 2,540 2012 Certified 2013

Raja Hitam Manjung, Perak 1,497 2012 Certified 2013

Allagar Trong, Perak 805 2013 Certified 2013

Glenealy Parit, Perak 1,059 2013 Certified 2013

Serapoh Parit, Perak 936 2013 Certified 2013

Kuala Kangsar Padang Rengas, Perak 843 2013 Certified 2013

SABAH, MALAYSIA


ASSESSMENT REPORT


Mill 1 Tawau, Sabah Outside

Crop

Mill 1 Jatika Tawau, Sabah 3,508 2009 Certified 2009

Sigalong 2,864 2009 Certified 2009

Pangeran 2,855 2009 Certified 2009

Sri Kunak 2,770 2009 Certified 2009

Pang Burong 2,548 2009 Certified 2009

Pinang Pinang Tawau, Sabah 2,420 2009 Certified 2009

Tundong 2,155 2009 Certified 2009

Ringlet 1,834 2009 Certified 2009

Lungmanis Lungmanis Lahad Datu, Sabah 1,656 2010 Certified 2010

Sungai Silabukan 2,654 2010 Certified 2010

Rimmer Rimmer Lahad Datu, Sabah 2,730 2010 Certified 2010

Tungku 3,418 2010 Certified 2010

Bukit Tabin 2,916 2010 Certified 2010

Bornion Bornion Kinabatangan, Sabah 3,233 2010 Certified 2010

Segar Usaha Kinabatangan, Sabah 2,792 2010 Certified 2010

Kuala Lumpur Kepong Bhd has achieved RSPO certified for 7 (seven) mills and supply base in Malaysia and 2 (two) mills and supply base in Indonesia. Kuala Lumpur Kepong Bhd has informed the Time Bound Plan progress, MUTUAGUNG has consider that Kuala Lumpur Kepong Bhd still comply to the RSPO requirement for Time Bound Plan.


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

ST2 1. Octo HPN Nainggolan (Lead Auditor Witness) 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.

2. Bukti Bagja (Lead Auditor Witnessed). Master of Science majoring in environment – University of Indonesia. He had involved in various RSPO assessments, HCV andGIS project. The training he has followed namely ArcGIS, MAPInfo, Global Mapper, ER MAPPER, ERDAS Imagine, Indonesian Sustainable Palm Oil auditor and Awareness RSPO, and Auditor/Lead auditor Management System Certification (ISO 9001-2008)

3. Muardi Marwas (Auditor) Bachelor of Agriculture Bogor Agriculture Institute. Attended RSPO and ISPO Assessment in Indonesia. He had been trained Auditor/Lead auditor Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor, ISPO Lead auditor training, awareness green house gas and Witness Distribution Quality Management Process (DQMP) APMEA. Currently he works for Independent Certification Body. He had involved activities RSPO and ISPO certification assessment as an auditor.

4. Naila Karima (Auditor). Bachelor of Public Health, Department of Occupational Health and Safety. Faculty of Public Health, University of Indonesia. She had experience working in private oil palm plantation companies in Indonesia. She had followed training such as ISPO Lead Auditor, awareness training the RSPO certification system, awareness training Occupational Health and Safety Management System (PP No. 50 tahun 2012), and Integrated Management System (OHSAS 18001:2007, ISO 14001:2004, and ISO 9001:2008).

5. Moh. Arif Yusni (Auditor) A bachelor of Agriculture, majoring of Plant Pest and Diseases (Plant Protection). He has a working experience for 2 (two) years in oil palm Plantation Company in Indonesia. Trainings attended namely: Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course and Auditor/Lead auditor Management System Certification (ISO 9001-2008). Now he worked at Professional Certification Body. He has been several times following audit related to sustainable palm oil certification system as an auditor.

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

ST2 Number of auditors : 4 auditor Number of days for ST-2 at site : 4 days Number of working days for ST-2 at site : 16 Working days

2.3.2 Detail process of assessment

ST2 Assessment was conducted through measuring the sufficiency and consistency of plantation management practices of PT. Adei Plantation & Industry – Nilo 2 POM 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

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT


The assessment was carried out through three methods: (1) document review, aiming at observing the sufficiency of relevant documentation (types and substances); (2) interview, aiming at collecting information regarding implementation of best management practices; and (3) field observation, aiming at verifying and cross check the sufficiency of implementation on site. Separated to non-conformities, some “opportunities for improvement” also resulted in ST-2 as one subject of verification and observation at the next assessment phase (Surveillance1) Any corrections to findings from previous assesment were also observed by auditors at this ST-2 assessment. All information obtained during ST-2 was recorded in “Check List” of PT Mutuagung Lestari (MAL) as part of next Surveillance 1 (S-1) material. The assessment program for assessment ST-2 can be seen in Appendix 2

2.3.3 Locations of Assessment

ST-2 Determination location for sample is made by a team of auditors based on: 1. Location sample was determined by the formula 0.8 √ y.

2. Sampling must represents whole operational area within assessment scope.

3. Considering fundamental and essential issues rising from document review as well as results of public

consultation.

Location for sample are : Nilo 2 POM 1. The processing of CPO (weigbridge until CPO dispatch). Observation to the FFB processing, crude palm oil

(CPO) production, fire emergency response faciliteis, first aid emergency facilites, and implementation of

occupational health & safety (OHS) policy.

2. Supporting facilities. Observation of supporting facilities such as workshop, warehouse material, hazardous

waste warehouse, chemical warehouse, Water Treatment Plant.

3. Waste Water Treatment Plant. Observation of waste water management from sludge pit, pond aerobic and

anaerobic

Nilo Timur 1 Estate (KNT 1) Division 6 1. Fertilizing activities in Block 51. Field observation on fertilization activities by non-permanent employees (10

women and 1 man), workers had been equipped with proper PPE (boots, apron, mask, and gloves), conducted a

medical examination, Supervisor had been equipped with first aid box.

2. Spraying activities in Block 49. Field observation on spraying activities in circle and road block by herbicide

(active ingredient: glyphosate), workers had been equipped with proper PPE (apron, gloves, masks and shoes).

Sprayers understood steps of spraying activities and dilution methods of herbicide solution. Spayers had had

periodic medical checkup by company’s doctor, and received extra food.

3. Harvesting activities in Block 52. Field observation on harvesting activities. Harvesters understood criteria of

ripe palm, penalties and premiums harvest, workers had been equipped with proper PPE (boots and helmets),

working tools (rickshaw, sickle, axe, gloves chisel).

4. IPM control. Field bservation on IPM by checking distribution of owl nest (owl nest No.02 in Block E54).

5. Landfill in Block F54. Field observation on domestic waste management such (waste disposal site).

6. Agrochemical, Oil and Fertilizer warehouse. Observation on management of storage of pesticide, oil and

fertilizer. Material Safety Data Sheet (MSDS) availability, hazardous and toxic waste management according to

regulations.

7. Fuel tank station. Field observation on fuel warehouse management. The warehouse had been equipped with

oil traps, tanks, fire extinguisher, spill response facilities and installation of symbols hazardous waste in

accordance with regulations.

8. PPE Washing, Spraying Equipment and PPE Warehouse. Field observation on facility working tools washing.


ASSESSMENT REPORT


Provision of PPE for sprayers including spraying tanks.

9. Fire fighting Infrastructure. Observation on fire fighting equipments such as fire extinguishers, water tank,

hose, nozzle, buckets, etc. All equipment were well function and ready to use.

10. Workshop. Observation on vehicle and heavy vehicle maintenance at workshop, management of oil waste,

batteries waste, and used oil filters.

11. Genset’s storage. Observation on generator operator activities which include PPE such as helmets, shoes and

ear plug, generator’s capacity were 250 KVA and 40 KVA, lubricant oil waste stored in temporary hazardous

waste warehouse.

12. Clinic. Observation on clinical activities and interviews with paramedics (midwife) related with number of patient

visits, health programs, health screening, and management of infectious waste.

13. Emplacement. Observation on housing conditions, clean water supply, and household waste management.

14. Boundary demarcation poles of land use title (HGU) in Division 6. Based on observation, in general

condition of poles were well maintained and good. The missing poles have been scheduled to reconstruct by

BPN region.

Nilo Timur 2 Estate (KNT 2) in Division 8 1. Fertilization activities in Block 11. Observation on fertilizing activities by non-permanent employees. All

workers had used PPE (boots, apron, mask, and gloves), workers had been equipped with proper PPE (boots,

apron, mask, and gloves), conducted a medical examination and supervisor had been equipped with first aid

box.

2. Spraying activities in Block 04. Field observation on spraying activities in circle and road block by herbicide

(active ingredient: glyphosate), workers had been equipped with proper PPE (apron, gloves, masks and shoes).

Sprayers understood steps of spraying activities and dilution methods of herbicide solution. Spayers had had

periodic medical checkup by company’s doctor, and received extra food.

3. Harvesting activities in Block 18. Field observation on harvesting activities. Harvesters understood criteria of

ripe palm, penalties and premiums harvest, workers had been equipped with proper PPE (boots and helmets),

working tools (rickshaw, sickle, axe, gloves chisel).

4. IPM control. Field bservation on IPM by checking distribution of owl nest (owl nest No.02 in Block E54).

5. Agrochemical, Oil and Fertilizer warehouse. Observation on management of storage of pesticide, oil and

fertilizer. Material Safety Data Sheet (MSDS) availability, hazardous and toxic waste management according to

regulations.

6. Fuel station. Field observation on fuel warehouse management. The warehouse had been equipped with oil

traps, tanks, fire extinguisher, spill response facilities and installation of symbols hazardous waste accordance

with regulations.

7. PPE and Spraying Equipment Washing, PPE Warehouse Field observation on facility working tools washing.

Provision of PPE for sprayers including spraying tanks.

8. Workshop. . Observation on vehicle and heavy vehicle maintenance at workshop, management of oil waste,

batteries waste, and used oil filters.

9. Emplacement. Observation of housing conditions, clean water supply facilities, and domestic household waste

management.

10. Piezometer and Water Level Management. Observation on monitoring and management of peat soil by

piezometer, monitoring of water level, subsidence levelling, and water management.

11. Boundary poles of land use title (HGU) in Division 6. Based on observation, in general condition of poles

were well maintained and good. The missing poles have been scheduled to reconstruct by BPN region.

Conservation area 1. Division 4, Telayap River. Auditors had verified management of HCV area particuarly riparian zone.. The areas


ASSESSMENT REPORT


not planted with oil palm. Enrichment had been done with tamarind (Samanea saman), Pulai, bamboo, etc..

2. Kepong Sialang Block 46. Auditor had verified condition of HCV area particularly Sialang. The areas were well

maintained.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Public / stakeholder consultation was held through consultation meeting / assembly with village heads and village representatives. The meeting was followed up by visits to villages and interviews with local peoples.In addition to that, there was also internal stakeholders interviews to employee, labour union, gender committee, etc. All result of public / stakeholders consultation has been acknowledged and clarified by PT Adei Plantation & Industry – Nilo 1 POM.

2.4.2 List of stakeholder contacted

Please find appendix 1

2.5 Determining Next Visiting

The next visit (Surveillance-1) will be determined nine month after RSPO certified.


ASSESSMENT REPORT


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

MUTUAGUNG LESTARI has conducted an assessment of Nilo 2 POM – PT Adei Plantation & Industry, Kuala Lumpur Kepong, Bhd, operation consisting of one (1) mill and two (2) oil palm estates. During the assessment, there were two (2) Nonconformities were assigned against Major Compliance Indicators; one (1) nonconformity were assigned against Minor Compliance Indicators and seven (7) opportunities 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/etc...). Those corrective action(s) taken that consist of two (2) Major non-conformities and one (1) Minor non-conformity had been closed out shall be verified during next assessment. MUTUAGUNG LESTARI found that Nilo 2 POM – PT Adei Plantation & Industry, Kuala Lumpur Kepong, Bhd 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 issued.

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.

Document verification showed that the company had specific Standard Operating Procedures (SOP) regarding “Information Request and Respond” dated on April 1, 2013. As implementation of the SOP, all incoming information requests from stakeholders had been recorded in a log book namely “Incoming Information Request and Response Book” by Public Relation (PR) Department (in Estate) or by Mill Administrator at Nilo 2 POM. Auditor had also verified that company had provided proper respond to all incoming requests listed in the log book.. Information request and response were kept for 5 years in accordance with the valid procedure. The existing procedure also explained the categorization of document that (publicly available information, classified information, period of document keeping, location of storage, and holder of documents).

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.

In addition to SOP regarding “Information Request and Respond” dated on April 1, 2013, there was SOP concerning “Stakeholder Communication, Consultation and Socialization” dated on April 1, 2013. Based on document review, until the implementation of Stage-2, there was no information request from stakeholders related (EIA, Land Use Permit, HCV, SIA, etc). The company will respond it in the future if there is information order related with the management of plantation in accordance with the valid national regulation. There was master list of document that explain about the type of documents that publicly availabel or classified, period of document keeping, location of storage, holder of document, and information response standard. According to the SOPs, records of information request including its responses shall be kept for 5 years except permit documents that shall be kept until its revised.



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PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

There were evidence of compliance to the applicable regulation, particulary those that were related to legal aspect such as: 1. The company had Plantation Business Permit (IUP/SPUP) in accordance with Regulation of Agricultural Minister

number 26 year 2007 concerning Plantation Business Permit and Law number 18 year 2004 concerning Plantation. 2. There was certificate of land authorization in the form of Land Use Permit in accordance with the Government

Regulation number 40 year 1996 3. There was environmental document in the form of EIA document in accordance with the Government Regulation

number 27 year 2012. 4. There was no underage worker. Salary payment had been consistent with the minimum wage regulation. There was

also labor union in accordance with the Law number 13 of 2003. 5. Having a permit for Hazardous and Toxic Waste Temporary Warehouse in accordance with the Government Regulation

number 18 year 1999 concerning the management of Hazardous Waste Temporary Warehouse 6. The company also support workers to have insurance in accordance with the Law number 3 year 1992 concerning

Labor Social Assurance.

In addition, there was also an evidence of adjustment to changing of regulation, such as:

Compliances to Plantation Business Permit (IUP) regulation through renewal of SPUP with IUP and IUP-P in accordance with the new regulation about plantation.

Adjustment of minimum wage payment in compliance to change / update of Regional Minimum Wage in Riau Province.

Adjustment of local tax / retribution payment on the usage of surface and ground water in response to the change of local regulation.

As reference for implementation, company had intenal mechanism/system of legal requirement documentation and monitoring of its implementation/compliance status as seen in SOP concerning “Compliance to the applicable Regulation and Law” and SOP concerning “Licensing and Reporting”. To ensure the implementation of regulation compliance, company had complete list (compendium) of applicable law and regulation for year 2013 including status of its fullfillment.


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

The company could demonstrate evidence of right to use the land, as follows:

Location permit from local authority through Governor Decree number Kpts.45/I.L-I/1991 concerning Location and Land Acquisiton Permit for + 12,750 hectare area in Bunut Sub District and Pangkalan Kuras Sub District, Kampar District for plantation development by PT Adei Crumb Rubber Factory..

Forest Relinquishment License from Ministry of Forestry of the Republic of Indonesia, number 846/Kpts-III/1991 concerning relinquishment of 15,812.5 hectare area at Nilo River – Telayap River in Riau Province for rubber and chocolate plantation by PT Adei Crumb Rubber Factory. Map in the appendix of the license showed that location of relinquishment was consistent with current location of PT Adei Crumb Rubber.

Land Use Right (Land title) number 1 year 1994 as stated by decree of BPN number 23/HGU/1993 concerning Land Use Permit for 12,860 hectare area of PT Adei Crumb Rubber Factor in Telayap Village, Kemang Village, and Nilo Kecil Village, Bunut Sub District and Pangkalan Kuras Sub District, Kampar District, Riau Province.

Agreement of Plantation Cultivation Business Principle for the Conformance of Plantation & Industry Cultivation Area PT Adei, Riau Province, through Letter number HK.350/E5.335/04.97 year 1997 as the agreement of government to the conversion of plantation business type from rubber to palm.

To maintain demarcation of land title boundary, the company had programme of boundary marker (poles) maintenance through monitoring and physical reconstruction. According to field visit, most of the boundary markers were in good condition. For broken markers, the company had had schedule of marker reconstruction under coordination with National Land Agency. (Observation) Document verification showed that in the early step of plantation development (1992-2003), Some land dispute cases


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happened between company and local community. To solve the disputes, company had made negotiation efforts as shown by negotation records and compensation payment records. Until the time audit was held, some land disputes had not solved yet, most notably those between company and community of five villages surround the plantation. Since negotiation process did not run well, the dispute then went to higher step by involving local government for mediation. District government had assigned verification team to collect field data and held meeting with both parties. According to available records, the chronology of conflict resolution step was as described below:

On 7-02-2013, some villagers were interested in buying palm oil waste from POME and some items of hazardous waste (used lubricant oil, used battery, and used tire) and sent request letter. However, the company did not agree with the request and refuse to sell oil waste from POME and some Hazardous Waste items to the community

On 23-02-2013, village heads informed the company that some villagers dissapointed with company’s decision and about to held demonstration to claim plantation land near to the five villages.

On 27-02-2013, there was a meeting between Heads of 5 villages and PT. Adei P & I and PT. Safari Riau, facilitated by Local Government of Pelalawan District, to prevent demonstration.

On 27-03-2013, around 80 villagres held demonstration in front of POM 1 office regarding land claim.

On 16-04-2013, local government formed verification team from Land Agency to collect field data and provide recommendation to Local Regent regarding resolution of conflict. Results of the verification team were: a) Local government suggested the company to approve the proposal/request for oil waste selling to the villagers, b) However, in principle, local authority seen that the company did not have problem with legal land ownership or land compensation.

These above mentioned description showed that in principle, standard mechanism of conflict resolution had been implementing/folllowed by the company, most notably conflict resolution through negotiation and/or involvement of relevant stakeholders including local government. Such standard mechanism of conflict resultion was contained in the following documents:

SOP No. 26 about the procedure of land dispute resolution and documentation of land dispute resolution. To solve conflict, company should firstly take negotiation approach, and if there’s still diverging opinion, conflict should be resolved through mediation and or formal way (court).

SOP No. 27 about procedure of land acquisition for oil palm cultivation which described procedures for land acquisition such as: started with consultation to local government, survey and dialog with local communities, until procedure of compensation and payment of land acquistion with surrounding communities.


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.

Based on verification on land acquisition documents, in the beginning phase of plantation development, there was traditional / customary rights inside area allocated for PT. Adei P&I. In order to obtain land use right, the company had made negotiation with the customary right owner and FPIC proccess. There were evidences of this FPIC process in the form of series of meeting with the local people and local government, agreement between both parties, and evidences of compensation payment to relevant local/traditional communites. Thus, after the compensation process completed, currently there was no longer traditional / customary right in the plantation site. As part of the acquisition process, there were documentations / archives of map that recognized the traditional right, such as:

Map of land location of each village as part of traditional community land acquisition process.

Map of situation for each compensated land, for instance: agreement and compensation payment receipt to villager namely Ilyas Mangkat on 22-4-2003 for 2,4 ha, and of vilalger namely Tusiddul on 1-8-2003 for 3 ha in Telayap Village.

Map of field boundary demarcation between PT. Adei and Batang Nilo Kecil Village on January, 17 1998, carried out by survey team of local government of Kampar in order to identify clear area of Batang Nilo Kecil Village affected by the Land Use. Map was available in proper scale with the geographical coordinate of its point.


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

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


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The company could demonstrate long term management planning (5 years) for years 2012/2013 until 2016/2017. The management planning document included profitability projection that contained following informations: a. Projection and actual FFB production data that consists of: data of mature oil palm plant, projection of FFB production

per hektar, production cost per ton FFB and CPO, administration cost, labor cost, upkeep, manuring, harvesting, roads and bridges, pest and disease, transportation, etc.

b. Projection and actual CPO production data, such as: Estimation Crop intake (FFB), CPO production, palm kernel production, processing cost, admin cost, training cost, environment cost, health cost, transport cost, etc.

c. For environmental management plan and social activities, company has allocated spesific cost suchas for: clean water facilites, insurance, medical and hospital, amenities and welfare, Occupational Health and Safety (OSH) and Sustainability, Corporate Social Responsibility (CSR).

Up to the implementation of audit, there was no replanting plan until upcoming five years. In the SOP concerning “Replanting”, criteria of replanting were: low productivity plant, such as: more than 25 years age, height of plant is more than 18 meters, production of FFB under 14 ton/ha/year, the number of plant < 70 plants/ha, and when situation of CPO price support the replanting.


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

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

A complete operating procedures of oil palm operation were available in the Technical Guideline of Oil Palm Tree Plantation (Number: GP/AGRIC/OP) dated on 25 November 2004. The guideline covered: SOP on Replanting, Seedling, Planting in Mineral Land, Planting in Peat land, Pest and Disease Control, Harvest, Fertilization, Soil and Water Conservation, Erosion Control, Mill Maintenance of Mature Mill and Transportation Activity. FFB handling procedure available in the SOP for Mill Operation Nilo 2 POM, enacted on December 1, 2011. This SOP included SOPs for: FFB Receipts (SOP for Weighbridge Station ), palm oil processing at each station (Loading Ramp Station; Sterilization Station, Hoist and Threshing Station, Digester Station, Press station, Depicarper station, Nut crackers Station, Kernel Silo, Boiler House, Power station and CPO Dispatch). To ensure proper implementation of the SOP, the company had system of regular checking and monitoring on plantation and mills performance through:

Internal audit on estate operational activites, which was conducted periodically (two times a year).

Internal evaluation on RSPO principles fullfillment which was conducted every month.

Regular inspection and control on field esate performance by manager.

Performance assessment in accordance with the SOP for operator which was conducted by Assistant and Manager through the assessment of training result.

Record of estate operational activities monitoring available in the form of Monthly Progress Report of Estate that describe: Area Statement, FFB production (statistic of FFB production, recapitulation of production, output of cut fruit, production of FFB and cost, cost and harvesting). For POM, there was mill maintenance report: monthly Report POM that described statistic data of production, capacity and utilization of mill, quality of production, production losses to the processed FFB (Percentage of Palm Oil Losses to Processed FFB and Percentage of Palm Kernel Losses to Processed FFB), Total Mill Cost, and Mill Processing Cost. There was propoer example of monthly report at the estate and mill for the period of January - May 2013.


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

The company could demonstrate efforts of preservation and increase of soil fertility, such as: 1. Soil analysis, leaves analysis, and visual observation, as decribed below:

a. Soil Analysis There were records of monitoring of soil nutrient in order to know nutrient availability in the soils as medium of oil palm tree growth. Soil nutrient data was used for preparation of appropriate and effective fertilizer


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recommendations (based on concept of nutrients balance in the soil). In the report, there was laboratory analysis of soil in each sample, the measured parameters were: texture, acidity (pH), content of C, N, P, K, Mg, Ca, Na, BS, CEC, Al and H.

b. Leaves analysis The company had conducted periodic leaves analysis (once a year). The analysis was carried out by AARI Results of leaves analysis were used as a reference for recommendation of fertilizer application. Principle of fertilization was treatment to produce nutrients required by palm tree for optimal results. There was record of leaves analysis results, such as: - Results of leaves analysis at Nilo Timur 1 Estate Division6, such as Block E12 the content of N was 2.76%; P

was 0.178%; K was 0.72%; Mg was 0.43%; Ca was 0.75%%; B was 23 ppm, and Cl was 0.84%. - The results of leaves analysis at Nilo Timur 2 Estate Division8, such as Block A2 k the content of Ash was 5.96

%; N was 2.54%; P was 0.149%; K was 1.10%; Ca was 0.57%, and Mg was 0.2 %. c. Visual Observation

In addition to leaves and soil analysis, the company had visually observed several points such as potency of FFB, indication of nutrient deficiency, wide of canopy, and potency of pest and disease attack. The result of soil analysis, leaves analysis, and visual observation were used to determine the treatment or recommendation of fertilization, type of fertilizer (organic and inorganic) and type of fertilizer.

2. The company had been doing appropriate plantation activities such as: appropriate fertilizing and application of empty

fruit bunch (EFB), as shown by following examples: a. Nilo Timur 1 Estate Division 6

- Fertilizing activity at Block 06 PM2003A1B: the doze of recommendation for the first semester of 2013 was RP 1.5 Kg/Tree, urea 1.5 Kg/Tree, MOP 1.25 Kg/Tree, Kieserite 1.25 Kg/Tree. The doze of recommendation for the second semester of 2013 was: MOP 1.5 Kg/Tree and Urea 1.50 Kg/Tree. Based on the result of survey at Block 06 PM2003A1B, fertilization activity of MOP had been conducted in accordance with the recommended doze such as 1.25 kg/tree.

- Application of empty fruit bunch with the doze of 30 ton /ha, at Block C47, C48, E53, E54, E55, F52, F53, F54 and F55 for 290 ha.

b. Nilo Timur 2 Estate Division 8 - Fertilizing activity at Block 8 PM the doze of recommendation for the first semester of 2013 was Urea 1.50

Kg/Tree, MOP 1.25 Kg/Tree, RP 3 Kg/Tree, MOP 1kg/Tree and the doze of recommendation for the second semester of 2013 was: Urea 1.5 Kg/Tree, KS 1.25 Kg/Tree and MOP 1 Kg/Tree. Based on the result of survey at Block 8 PM 20023C, fertilization activity of MOP had been conducted in accordance with the recommended doze such as 1.25 kg/tree.

- Application of empty fruit bunch with the doze of 30 ton /ha, at Block 01A2, 01A2, 02A2, 02A2, 03B1, PM01A2, and PM02A2 for 43, 36 Ha


4.3 Practices minimize and control erosion and degradation of soils.

To manage erosion and degradation monitoring, there was Map of Soil Type Distribution issued by AARI (Applied Agricultural Resources Indonesia) with the scale1: 90,000. This map described soil classification, texture, depth, drainage, limiter factor, rocks, and suitability information for the development of oil palm. Based on the Soil Map, 70 % area of Division 6 Nilo Timur 1 Estate and Division8 Nilo Timur 2 Estate was peat area with the depth of < 2 M. Limitation factor was fertility and drainage. Based on topography map of Nilo Timur Estate, this area dominated by 0 -3 % slope, whixh means low erosion potentiality. To manage peat area, there was SOP number 32 concerning Oil Palm Planting in peat area. Management actions in peat area was taken in order to maintain availability of water in the peat area. The water level in drainage area was maintained at level of 60 – 80 cm in order to maintain the water table level and avoid high level of subsidences of peat land Based on field visit at Division 6 of Nilo Timur 1 Estate and Division 8 of Nilo Timur 2 Estate, there were water level management systems that had been installed such as water gate, viezometer, canal, subsidence level meter. The height of water was maintained at the level 60 - 80 cm. At Division 6 Nilo Timur 1 Estate, there are 176 watergates. At Division 8 Nilo Timur 2 Estate, there were 63 watergates. Water level had been periodically measured. In addition, the company had also


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measured subsidence of peat area by installing subsidence level meter such as found at Block 15 PM 03D4. Soil map also used for composing road maintenance program to ensure that FFB delivered to Nilo POM in time. There was document of road maintenance program, such as: - Budget of manual road maintenance (sample: work program of 2013). - Budget and map of road hardening (sample: budget of road hardening in 2013 and map of road hardening in 2013 for

Nilo Timur 1 Estate dan Nilo Timur 2 Estate). - Monitoring of manual road maintenance (sample: monitoring of manual road maintenance in 2013). Based on field observation (Nilo Timur 1 Estate and Nilo Timur 2 Estate), road maintenance had been implemented well and appropriate to support production. In SOP number 12 regarding Management of Soil Fertility for Optimal Productivity, management of marginal land (defined as sandy soil, low organic material content, podzolic, acid soil/peat) were as follows:

Technical approach through empty fruit bunches application in sandy or low organic material soil, and application of silt pit for podzolic soil.

For acid soil / peat, management of water level should be implemented to control the consistency of water level in 50 – 75 cm below soil surface as written in the agronomy guideline.

No planting in peat area with depth more than 3 meters.


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

The company had several water resources protection programs in accordance with recommendation from HCV study from Consultant. Several management efforts were as follows: a. Determining riparian area within 50 meter in the left and right side of Telayap River and Batang Nilo Kecil River as HCV

area. Plantation in riparian area were not harvested, and in addition there were vegetation enrichment by using tree specieses. To verify the implementation, auditor had visited Riparian area of Batang Nilo Kecil River.

b. The total riparian area in Nilo Timur 1 and 2 was around 13 hectares. Some of the riparian area were still covered by vegetation so the company conducted enrichment to improve the quality of landcover. Plant enrichment was conducted at Batang Nilo Kecil River and Telayap River such as monkey pod, pulai and bamboo. In the riparian area of Batang Nilo Kecil River, 100 trees of monkey pod (April 2013), 20 trees of pulai (May 2013), 50 tropical almond trees (2012, all dead), 200 trees of monkey pod (2012, all dead) were planted. Meanwhile, in the riparian area of Telayap River, 100 trees of monkey pod (April 2013), 20 trees of pulai (May 2013) had been planted

c. Water management at the peaty area (maintenance of water gate/water pump, maintenance of water level at the depth of 60 cm).

d. Installment of no burning signboard, spraying, fertilizing, and fish poisoning at riparian area. e. Monitoring of water quality of Telayap River every three months, Batang Nilo Kecil River every six months. This river

water quality test was conducted by internal laboratory. Documentations of water test were available. f. Monitoring of water quality at housing area (well), lake, and waste water from housing. Result of water quality test were

available .

The quality of POME (liquid waste) had been monitored every month by accredited laboratory from Pekanbaru. The sample of monitoring was taken from 8 ponds before applied to land application site. The result latest test showed that BOD had met standard regulated by the government (below 5,000 mg/liter). Level BOD in January was 141.3 mg/liter, February was 169.6 mg/liter, March was 278.9 mg/liter, May was 164.9 mg/liter, April was 295.7 mg/liter. The result of monitoring at Nilo 2 POM had been routinely reported to the Environmental Agency Pelalawan District (as shown by document receipt on 22 April 2013). The company had been monitoring the use of water for FFB processing and records it in the daily monitoring document report. The average water usage from October 2012 - May 2013 was 1.45 m+/ton of processed FFB. The mill has a water usage standard as much as 1.5 m3/ton of FFB. The use of water for mill purpose had been evaluated every month.


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


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Integrated Pest and Disease Monitoring Program had been undertaken by the company as listed below: 1. There was SOP about Integrated Pest and Disease Monitoring Program (SOP RSPO Number 7) that described the

phase of Integrated Pest Monitoring such as.

First step: pest detection.

Second step: identification of species and population of pest through census.

Third step, monitoring with chemicals when exceed its threshold and biology culture to maintain a balance between yield and pest ecosystem.

2. Census of pest and disease by Integrated Pest Management officers (staff), such as:

Nettle caterpillars census, which had been conducted every 6 months and if there was fire caterpillar found, census could be conducted more frequent (every month).

Rat census had been conducted every 6 months.

Ganoderma census had been conducted every year. 3. Planting and maintenance of beneficial plant (Turnera subullata) in 2013 4. Monitoring of owl every 6 months by Integrated Pest Management officer. 5. Integrated Pest Management training every year. Pest and Disease Monitoring Program had been implemented by the company regularly (every month). Based on documents evaluataion and field visit, the level of pest and disease was still below threshold. To prevent attack of fire caterpillars, the company had cultivated beneficial plant and its maintenance (Turnera subulata). In addition, the company had also monitored owl’s nest every 6 months (presence of dirt, feathers, and carcasses of rat). Based on the results of field visit, implementation of beneficial plant program (Turnera subulata) had been implemented well. The company had also conducted training for workers on integrated pest and disease monitoring on March22, 2013 (rat monitoring) and on May 10, 2013 (Integrated Pest Management census). Trainer was from AARI (Applied Agricultural Research Indonesia). Related with the use of pesticide, the company had also monitored the use of pesticide in term of: pesticide usage, active ingredient usage, active ingredient per Ha and active ingredient per ton of FFB.


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.

There was list of pesticides used by the company such as 7 types of herbicide, 8 types of insecticide, and 1 type of fungicide. Based on the Book of Agriculture Pesticides Register year 2011, published by the Directorate of Fertilizer and Pesticide, Directorate General of Facilities and Infrastructure, the Ministry of Agriculture of the Republic of Indonesia in 2011, there were 10 types of herbicides and 5 types of insecticides registered and authorized by the competent institution. Pesticides used by the company had been properly recorded at estate that describes the use of pesticides, work items (spraying of circle, harvesting path, and stacking of sheath) the amount of usage, and the number of applications per hectare. Based on the examination of documents and information, warehouses cards, the use of pesticides by the company was conducted in accordance with the recommended dose and in accordance with the objectives. The company had provided the MSDS (Material Safety Data Sheet) for pesticides and fertilizers, explaining about trademarks, the active ingredient, hazard identification, first aid measures, fire prevention measures, measures against spills and leaks, storage and handling of materials, prevention of exposure, precautions against fire and explosion, storage, specialized storage requirements of materials, exposure control and personal protective equipment (goggles, respirator, apron, gloves, boots, long sleeves and long pants), physical properties and chemistry, reactivity and stability, toxicology information. About the use of paraquat, the company has conducted limited training in the use of pesticides which was held on December 22, 2012 by the Fertilizer and Pesticide Monitoring Commission of Riau Province. Based on SOP number 17 and field verification, Hazardous and Toxic Waste (including pesticides packaging waste) had been managed in accordance with applicable regulations (Government Regulation number 18 year 1999). The waste was stored at the licensed temporary warehouse of Hazardous and Toxic Waste. Hazardous Waste and Toxic Waste had also been collected and transported by the PT Primando (Licensed collector and transporter of Toxic Waste waste). The type of


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toxic and hazardous waste were: used lubricant oil, dirty oil, used solvent, used battery, sludge and contaminated used packaging by hazardous materials waste and other toxic waste. The company had already had plan to reduce the use of paraquat as written in the document of monitoring about the use of paraquat dichloride for the next 5 (five) years which was approved by the General Manager. Based on document review and inspection to chemical warehouses, the use of paraquat in the January - May 2013 had been reduced gradually by 11% over the same period (January - May) in 2012. According to the SOP 22 which was approved by managemetn on June 1, 2013, medical checkup is free for the workers of spraying / chemical mixing officer. The medical checkup was conducted in July 2012 cooperated with Medical Clinic Pakuan Indah for – Pangakalan Kerinci wich covered physical examination, urinalysis and blood chemistry for spraying workers. Medical checkup was conducted in July 2012 for 25 spraying workers (Nilo Timur 1 Estate Division 6 1) and 24 people (Nilo Timur 2 Estate Division 8). The result of this medical checkup showed that all workers were in good health condition. Medical checkup for 2013 will be held in July 2013, according to the medical check up planning document year 2013. To ensure that no pregnant worker at the spraying section, SOP 22 (June 01, 2013) had regulated that female workers has to had medical test facilitated by company. Pregnancy test was free for female worker at the spraying/fertilization/chemical ingredient mixing with the frequency of once a year and pregnant woman must be immediately move to any section that did not related with chemical material. Based on the field observation and interview with the spraying workers at Nilo Timur 1 Estate Division 6 Block 49 and Nilo Timur 2 Estate Division8 Block 04, there was no pregnant or breastfeeding workers. All workers had already understood the prohibition for pregnant woman or breastfeeding to work at any section related with chemical material.


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

In the implementation of Occupational Health & Safety Programs, PT Adei P & I had documented and implemented it effectively at each working unit of POM and Estate. As evidences, the company had had written commitment / policy in the implementation of Occupational Health & Safety through Occupational Health & Safety Policy approved by the Group Plantations Director on January, 01 2005. Then, the company had established Committee of Occupational Safety & Health that has been approved by Head of the Manpower and Transmigration Department, Pelalawan District (Decree number KPTS.566/DTKT-WAS/2012/030 on July, 25 2012). As compliance to Regulation of Labor Minister number 04 year 1987, the secretary of Occupational Health & Safety Committee had been completed with Certificate of Occupational Health & Safety Expert (Registration number SKP KEP.1011/M/DJPPK/V/2011 on May, 18 2011 valid for 3 years). Coordination Meeting of Occupational Safety & Health Committee had been conducted regularly at each working unit. At KNT 1 on 20 March 2013, KNT 2 on 25 March 2013, and NILO POM 2 on 23 March 2013. Its meeting agenda discuss about morning briefing for 5 minutes consistently, the use of Personal Protective Equipment, working accident, and fire extinguisher. In addition, report of Occupational Safety & Health Committee to Labor and Transmigration Agency Pelalawan District had been routinely delivered. Example of latest report was delivered on April 11, 2013 according to the submission letter number AD-KN/Ekt/2013/04. Accident insurance for workers of PT Adei P & I was available in the form of Labor Social Assurance. Overall, workers of PT Adei Plantation and Industry had been registered as member of Labor Social Assurance. There was evidence of Labor Social Assurance payment by PT Adei Plantation and Industry for March 2013 paid on 15 April 2013, and the number of membership Nilo 2 POM (68 KHT and 49 KHL), Nilo Timur 1 Estate (291 KHT and 344 KHL), and Nilo Timur 2 Estate (322 KHT and 228 KHL). The company had conducted regular medical checkup for high risk workers such as audiometric for those who work on location with the noise level exceeds the trhreshold, those work with chemical material, physical, urine, and blood chemical checking. Audiometric checkup was conducted by Thamrin Clinic Laboratory of Pekanbaru, while physical, urine, and blood chemical checkup was conducted by Medical Clinic Indah Pangkalan Kerinci.

Audiometric checking was conducted in March 2013. The number of workers who had been checked at Nilo 2 POM was 20 people, Nilo Timur 1 Estate Division 6 (1 operator of generator) and Nilo Timur 2 Estate Division 8 (2 operator of generator). Based on this checking, 1 worker at Nilo 2 POM found had light hearing problem in left ear. The company


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hasdevaluated the result of medical checkup by making further recommendation to visit ENT specialist on 18 May 2013.

Physical, urine, and blood chemical check up was conducted in July 2012. There were 25 spraying people checked (Nilo Timur 1 Estate Division 6) and 24 workers (Nilo Timur 2 Estate Division 8). The result of this medical checkup showed that all of them were in fit condition. Medical checkup of 2013 was conducted in July 2013, according to the worker’s health checkup program document for 2013.

There was record of risk analysis in the form of Identification of Hazard and Risk (HIRAC) to all activities at POM and Estate. The hazard and risk analysis was done through following steps: (1) all activities and working process at POM and Estate were identified including its hazard and risk source, (2) Hazard and Risk level then determined (low, medium, or high), (3) Determination of action to decrease its risk, (4) action and person in charge. Training of Occupational Health& Safety program had been routinely conducted for all workers. There was schedule of Occupational Health& Safety training at each working unit of POM 2 and Estate. For example, heavy equipment operator training on 15 May 2013 attended by the operator of wheel loader from Nilo 2 POM, fire extinguisher training and emergency situation on 27 February 2013 attended by the worker from Nilo Timur 1 Estate Division 6 and Nilo Timur 2 Estate Division 8. The company had procedure on emergency preparedness and response in SOP number 29 regarding Land Fire Emergency Response that covered zero burning policy, fire-prone area mapping and water resources, team building firefighting, firefighting equipment, fire sirens, socialization and monitoring. For application procedures, the company set up an emergency response team at Nilo 1 POM, Nilo Timur 1 Estate, and Nilo Timur 2 Estate, with the following composition: Head, vice head, firefighter team, evacuation and first aid team, and transportation team. In addition, training of firefighters was also conducted on October 22, 2012 as submitted by the Head of Fire and Disaster Management, Fire Department of Pekanbaru City, which was attended by employees of Nilo 2 POM, Nilo Timur 1 Estate, and Nilo Timur 2 Estate. The company had provided first aid kits at the POM 2 and estate. Based on field observation, there were first aid boxes available at the NILO 2 POM, Nilo Timur 1 Estate Division 6, and Nilo Timur 1 Estate Division 8. In addition, all supervisors had also been equipped by first aid kits for the operation of estate. The company had conducted first aid training presented by the company’s doctor for workers responsible as the officer of first aid at the Mill and Estate, such as training on July 25 , 2012 which attended by workers from Nilo 2 POM and training on 8, 11 – 14 June 2012 and 1 July 2012 attended by workers from Nilo Timur 1 Estate Division 6 and Nilo Timur 2 Estate Division 8. Based on the field observation and interview at Nilo Timur 1 Estate Division 6 and Nilo Timur 2 Estate Division 8, supervisor of spraying, fertilization, and harvesting had been trained with first aid procedures and understand the first aid steps in case of accident. The record of working accident at PT Adei Plantation & Industry was well documented. It had been gradually monitored by the secretary of Occupational Safety & Health Committee and there were preventive actions to prevent similar accident happen in the future. For example, there was record of working accident in January – May 2013, there were 2 accident cases. There was a record of each accident that explains about the chronology of accident, such as on 21 February 2013, the harvester got accident so his leg injured by ax. All report had been well documented.


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

Taining program in 2013 for Nilo POM 2 and estate staffs was available, such as: training for welder, heavy equipment operator, SOP of workshop, SOP of warehouse/Hazardous Waste Temporary Warehouse, Supply Chain System, Transportation, SOP of process, First Aid, Emergency Response, Guiding Committee of Occupational Safety & Health, and firefighting. Meanwhile, at Nilo Timur 1 Estate and Nilo Timur 2 Estate, the training covered the topics of: socialization of Occupational Health & Safety, RSPO, licensing and environment, training for Guiding Committee of Occupational Safety & Health, first aid training, firefighting, paraquat operator training, training of FFB loading operator, workshop training, and water management. As the evidence of this training implementation, the company had record and minutes of meeting of the training conducted for the staffs of POM 2 and Estate. It had been well documented and stored at the office of division such as supply chain system training on 24 April 2013 attended by the workers from Nilo 2 POM, and FFB loading training, transportation, and chemical material mixing on 21 March 2013.


ASSESSMENT REPORT


There was also a Contract Agreement number ADEI-KNT2/SPPB/033/12 with contractor of CV GCA SUPPLY in Pekanbaru for the leasing agreement of dump truck (empty bunch fruits transportation), soil delivery, excavator rent, bridge maintenance, and culverts installation. In this agreement letter in point 5, contractor’s workers must be skilled and experienced. All working equipments must be provided by the contractor. Based on the result of document evaluation, the company had used trained contractor. Based on the interview, contractor’s workers had understood their job and had been trained.


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.

Impact of plantation and estate operation to the environment had been identified. The result of the impact analysis described in several document, such as:

Environmental Impact Assessment Study (EIA) of Plantation and Palm Oil Mill of PT Adei Plantation & Industry in Pangkalan Kuras Sub District and Bunut Sub District, Kampar District approved by the Directorate General of PHPA/Head of Center Commission of EIA, Department of Forestry and Plantation, number: 84/DJ-VI/AMDAL/1999 on 6 July 1999. The EIA study covered area of 12,860 ha.

Along with the time, the capacity of mill was changed from 80 ton FFB/hour to 120 ton FFB/hour. In addition, there was also development of Cooperative Credit Scheme (small holder). To cover the change, there was Revision of EIA document, Environmental Management Plan (RKL), and Environmental Monitoring Plan (RPL) in Pelalawan District. The revision had been approved by the Head of Environmental Agency of Pelalawan District Number: 660/Bapedalda/2006/1328 on October 2006 for area of 12.860 ha.

Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL) for development of Nilo 2 POM with the capacity of 70 ton FFB/hour. The company could show Plantation Business Permit – processing (number of decree is 525.3/disbun/2012/390) on 16 July 2013.

Environmental management report was periodically submitted every semester. Report of Environmental Management Plan (RKL), and Environmental Monitoring Plan (RPL) of Nilo POM 2 was delivered on 18 January 2013. However, report of Environmental Management Plan/Environmental Monitoring Plan implementation had not contain data and analysis of peat subsidence and data of surface water quality test for Batang Nilo Kecil River and Telayap River as requested by EIA document of PT Adei Plantation and Industry in 2006. (CAR 2013.02 & CAR 2013.04) Verification 19 July 2013 The company showed the evidence corrective actions through measurement of subsidence measurement. The result of the measurement had been incorporated into periodic Environmental Management Plan/Environmental Monitoring Plan report to the Environmental Agency of Pelalawan District. There was evidence of report delivery and copy of Environmental Management Plan-Environmental Monitoring Plan report including the subsidence measurement monitoring result (on July 12, 2013). The the company had shown the evidence of river water quality measurement especially in Batang Nilo Kecil River and Telayap River and the evidence of its report through the Implementation Report of Environmental Management Plan - Environmental Monitoring Plan to the related institution on 12 July 2013, so status of nonconformance CAR 2013.02 & CAR 2013.04 is closed


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.

The presence of protected, rare, and endangered speceieses, and high conservation value habitats in the estate hade been identified by third party (Gagas Dinamica Aksenta) in October 20112. The result of HCV identification showed that there are 4 types of HCV out of 6 types of HCV in the plantation: HCV 1 (endangered and refugium animal), HCV 4 (environmental service), HCV 5 (socio economic), dan HCV 6 (cultural and spiritual).


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Note HCV Element Type of HCV

Wide Area (ha)

Batang Nilo Kecil River, its riparian had been started rehabilitated.

The sources of water, flood and erosion control area, fire border.

4 23.04

Kepung Sialang which had been enclaved at Block 20, there were 4 – 5 Sialang trees owned by Local Malay Ethnic in Batang Nilo Kecil Village.

The function of traditional, local knowledge preservation

5 and 6 3.12

Lake (dam) which was formed from Jiat River. Its water body was habitat of water turtle and labi-labi, lakeside was quite natural.

Refugum of animal, source of water, flood and erosion control area, and fire border.

3 and 4 33.46

Islamic Public Cemetery at Block 35 Religious function 6 0.52

Christian Public Cemetery at Block 53 Religious function 6 0.54

Telayap River, its water body is habitat of wildlife, riparian area was still in the rehabilitation process.

Habitat of biuku, refugum, water source, flood and erosion control area, and fire border.

5 and 6 52.78

There was one Sialang tree (honey) at Enclave at Block 46.

Local knowledge preservation function.

5 and 6 4.09

Water source for the people at the estate.

4 0.04

Total area of indicative HCV 112.41

Based on HCV identification document, there were several fauna specieses at Nilo Estate such as:

No. Local Name Scientific Name Conservation Status

PP.07/1999 CITES IUCN

1 Leopard Cat Felis bengalensis Protected - -

2 Pig-tailed Macaque Macaca nemestrina - Appendix II VU

3 Crab-eating macaque Macaca fascicularis - Appendix II LC

4 Bornean bearded pig Sus barbatus - - VU

5 Equatorial spitting cobra Naja sumatrana - Appendix II -

The steps that had been were taken by the management of PT. Adei Plantation and Industry – NILO Estate to protect rare and endangered species were: 1. Routine patrolling in HCV areas in each estates 2. The installation of HCV sign such as endangered species posters, HCV location boundary poles, warning signs, and

riparian HCV warnings 3. Rehabilitation of HCV areas, for example hard-wood tree nurseries and buffer plant plantings 4. Endangered species monitoring in HCV areas Several protection efforts to preotect rare/protected species and HCV area, such as:

a. Oil Palm in riparian area was no longer harvested. According to field observation, riparian area in Telayap River was still well maintained. The company had delineated this riparian area in the 50 meter in the right and left area of Telayap River and Batang Nilo Kecil River as the conservation area.

b. Plant enrichment was identified in the riparian area of Batang Nilo Kecil River and Telayap River such as trembesi, pulai and bamboo. In the riparian area of Batang Nilo Kecil River, several plants have been planted such as 100 trees of trembesi (April 2013), 20 trees of pulai (May 2013), 50 trees of (2012, all dead), 200 trees of trembesi (2012, all dead). Meanwhile, in the riparian area of Telayap River, 100 trees of trembesi (April 2013), 20 trees of pulai (May 2013) were planted at Block 7 – 10 Division I.


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c. Installing warning/signboard for prohibiting burning, spraying, fertilizing, and fish poisoning. Field observastion showed that signboard had been intalled like those found at Block 20 Division1, housing area of Division2, and housing area of Division3. There were also installation of HCV sign such as endangered species posters, HCV location boundary poles, warning signs, and riparian HCV warnings

d. Socialize the protection of protected/endangered species to the staffs and community. e. Testing water quality of Telayap River every three months, Batang Nilo Kecil River every 6 months. River water

quality test by internal laboratory. f. Routine patrolling in HCV areas in each estates g. Rehabilitation of HCV areas, for example hard-wood tree nurseries and buffer plant plantings

There was special staff assigned to monitor implementation of plan and realization of HCV management by referring to the available HCV identification result. The appointed officer (name: Adri) had been trained regarding implementing and evaluating HCV management plan. Field observation showed that officers were able to explain protection of HCV area.


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

The sources of waste and pollution at the estate and mill had been identified. Waste come from the vehicles, machines, offices, workshops, processing activities at the mill, and spraying activities. Waste had been managed in order to eliminate pollution by using several methods, such as: a. Hazardous and Toxic Waste

Hazardous and Toxic Waste such as used lubricant oil, batteries, light bulb, contaminated cloth, and clinical waste were transported by licensed third party. Warehouse of Hazardous and Toxic Waste both at the estate and mill have license from the Regent of Pelalawan. The permit valid for five years. The maximum storage time was 90 or 180 days as written in the permit. Permit of hazardous and toxic waste warehouse in Nilo estate issued by local government through permit letter number 660/blh/2013/99 issued on January 22, 2013. It mentioned the specification of the building and coordinate (0°20’964” N and 101°58’493” E). Permit of hazardous and toxic waste warehouse in Nilo 2 POM issued by local government through permit letter number 660/blh/2013/98 issued on January 22, 2013. It described the specification of building and the coordinate (0°12’9” N and 102°5’41” E). All Hazardous and Toxic Waste from estate and mill had been delivered to PT Primanru Jaya (licensed transporter and collector) on May 11, 2013. Hazardous and Toxic Waste storage time from estate and mill did not exceed 90/180 days as regulated by the regulation and did not exceed maximum capacity of storage. Latest waste transportation was on 11 April 2013. The remaining stock by the time audit was held at Nilo Timur 2 Estate: oil (446 liter), filter (42.5 kg), battery (1 piece), light (3 pieces), and contaminated cloth (8.5 kg).

b. POME Waste from processing activity at the mills (POME) hadbeen managed through POME treatment unit before it goes to land application. For this, the company had had permit from the Pelalawan Regent (decree number 660/BLH/2011/326) on June 22, 2011. The conditons that must be met were: 1) the BOD of waste water was less than 5000 mg/l, 2) POME applied only to permitted area of 100 ha, 3) Periodic monitoring on the POME quality, 4) Monitoring of ground water in control wells at application area and control area, 5) examination of soil quality at land application site (inter silt – pit), 6) periodic reporting to local authority, the governor, the Minister of Environment about the monitoring results. There area also some restrictions in terms of: utilization, dillution and disposal of wastewater into the river or ground outside permitted area.

c. Domestic waste was managed through landfills. d. Scrap metal was sold to scrap metal buyers. e. Liquid waste from the processing activity at the mill was managed through waste pond system before being disposed to

the estate. f. Empty fruit bunches were used as organic fertilizer. g. Black smoke emissions from activities were monitored their black boiler and solid particles. h. Dust from kernel millboiler, chimney inspection. i. Fiber and shells were used as boiler fuel. j. Household waste from the housing area was disposed/landfill. k. Clinical Waste / infectious waste: all infectious waste had been delivered to third party in Pekanbaru Health Laboratory

as permitted third party. Volume of the infectious waste was 24.8 kg and had been reported to the Environmental


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Agency on May 25, 2013.


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

The company had monitored the use of diesel fuel for operational purposes of Nilo Factory 2. During period of January - May 2013, 102,369 liters of diesel had been used. In average, 20% of the energy needed for FFB processing supplied by diesel fuel use. All fiber and shell from processed FFB was used for boiler fuel. The company had been monitoring periodically the use of fiber and shells for fuels. Based on monitoring data, there was significant saving in fossil fuel use, since up to 80% of total energy needs were generated / supplied from renewable energy use (shell and fibre burning).


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.

SOP Number 4 about replanting explained that land clearing was conducted in accordance to EIA/UKL-UPL study result. The company also had zero bunring policy to be implemented in replanting activity. To anticipate land fire, the company had had Land Fire Emergency Response (SOP 29) which included preventive activities (prevention), curative (action) and administration. The procedure covered: stages of fire prevention and control activities. Examples of fire preventive actions: mapping the fire-prone areas, carrying out patrols with appropriate frequency depends on vulnerability status, Fire danger sign board, etc. Field verification at Nilo Timur Estate, there was no indication of fire usage. High Fire Risk area had been identified by the company such as at Division 6 Nilo Timur 1 Estate: housing facilities, offices, warehouses and workshops, peat areas adjacent to public lands. Meanwhile for Division 8 Nilo Timur 2 Estate: housing employees, peat area that were adjacent to public land. These high fire risk areas had been monitored by the company through periodic monitoring, and had been recorded in the checklist of monitoring. The company had conducted fire training activities carried on 22 October 2012 in cooperation with Local Fire Department Office. Fire emergency procedures cotained information about facilities and infrastructure of fire fighting. Based on these documents, the company had had data of fire extinguishers infrastructure. At the time of the field visit at Nilo Timur 2 Estate, all fire extinguishers were well maintained, ready for use, and adequate for fire anticipation. There was evidence of fire extinguishers routine monitoring.


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

Mill pollution sources and plans to reduce pollution available (updated on 11 January 2013). Some actions and plan to reduce pollution and emissione were: methane capture plan (CDM project – biogas capture), empty fruit bunch application (processed at the KCP to be used as boiler fuel), black smoke emission control and solid particles with the requirements of the Ministry of Environment, dust reduction through chimney inspection, Fiber and shell (as boiler fuel), and boiler ash applied to plantation area. Emission quality from pollution sources had been monitored, including static emission sources monitoring, ambient air and noise level at Nilo POM (semester from 2009 – 2013) done by Padang Industrial Office. Monitoring parameters including: Particulate, Sulfur Dioxide, Nitrogen Oxide, Hydrogen Chloride, Chlorine Gas, Ammonia, Hydrogen Florida, Opacity (air quality Standard stipulated in the Environmental Minister Regulation Number 7 of 2007). Efforts and plans to reduce pollution and emissions of the factory were:.

a. Steam generator / boiler house. To reduce pollution, chimneys routinely monitored (6 months) and using automatically refueling

b. Reduce fossil fuel emissions by using steam turbines as power generator. To reduce air pollution and noise


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emissions impact, some measures were: - Monitoring of ambient air with test parameters of Sulfur dioxide, nitrogen dioxide, carbon monoxide, hydro

carbon, TSP and noise. Monitoring was at three sample points: the factories, housing and loading ramp. First monitoring results of 2013 available. Result of thest was all parameters of ambient air met the national ambient air quality standard (Government Regulation number 41 year 1999). Except for the noise level in the loading ramp was above the noise standards (87.5 db).

- Monitoring of air emissions boiler with test parameters: particulates, Sulfur Dioxide, Hydrogen Chloride, Chlorine Gas, Ammonia, Hydrogen Florida, opacity and flow rate. All test parameters met the air quality emissions (Regulation of Environmental State Minister number 7 year 2007).

- Monitoring of air generators with test parameters: total particulates, Sulfur Dioxide, Nitrogen Oxides, Carbon Monoxide and flow rate. All test parameters met Regulation of Environmental State Minister number 13 year 2009.

- Provision of PPE: ear plug / ear muff for mill workers. - Medical checking in particular hearing of 20 employees at Local Clinical Laboratory. The checkup was

conducted on February 28, 2013 POME from FFB processing were managed by using wastewater treatment plant facilites which consists of 8 active waste ponds, 1 reserve pond, and application to permited plantation area. Each pond had a various capacity: cooling pond was 6.000 m3 and 6,000 m3, anaerobic pond was: 12,000 m3, 12,000 m3, 12,000 m3, 12,000 m3, and 7,000 m3, aerobic (6,000 m3, 6,000 m3, and 6.000 m3) before applied to land, and desilting pond (12,000 m3).


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.

Based on the available documents, environmental and social impacts had been identified through assessment / studies on social impact that presented in the following documents: a. EIA documents for Plantation Activity and Palm Oil Mill in Pelalawan Sub District, Pelalawan District, composed in year

2006, approved by EIA Commission in Local Government through letter Number 660/Bapedalda/2006/1328. The document identified positive and negative aspects of plantation and mill operation to environment, including social environment.

b. Social Impact Assessment Study of PT Adei Nilo Estate, conducted in December 2011 in collaboration with third party consultan. The document contained identification of positive aspects, negative aspects, and important social issues internally and externally.

In general, EIA and SIA studies report showed that the social impact assessment process both EIA and SIA have been done in a participatory way and involve people from the surrounding villages. In the EIA and SIA study report, documentation of public aspirations process was presented through community such as interviews and discussions (FGD) which was attended by representatives from every village around the estate. In addition, PT. Adei Plantation and Industry has had a management plan and monitoring in the form of Document of Environmental Management Plan and the Environmental Monitoring Plan (RKL / RPL) made in 2006 and became a reference for the implementation of environmental and social management. Results of management process implementation and monitoring of social impacts have been included in the document of Environmental Management Plan - Environmental Monitoring Plan is regularly reported to the government. The report was presented in the form of a brief narrative describing the process of monitoring the effects of social inferences. Evidence in EIA and SIA report showed that the studies used participative approach and involving community from the surrounding villages. In the EIA and SIA report, documentation of public aspirations was presented such as interview and discussions (FGD) records which was attended by representatives from every village around the estate. PT. Adei P & I has also had environmental and social impact management and monitoring plan in the form of Environmental Management Plan and the Environmental Monitoring Plan (RKL / RPL) made in 2006 that became reference for implementation of social impact management. Results of social impact management and monitoring had been included in


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the Environmental Management and Monitoring Report which was regularly submitted the local government. The report contained matrix and narrative description describing process of management and monitoring of social impact. The company had revised its environmental document (EIA) 2006 due to changing of estate operational scheme, such as:

Additional Cooperative Credit Scheme in Batang Nilo Kecil for 541 hectare and in Telayap Village for 1,002 hectare.

Additional capacity of Nilo 1 POM from 80 Ton FFB/hour to 120 ton FFB/hour. To accommodate the construction of NILO 2 PO2, the company had also developed new environmental document as an additional supplement (complement) of the existing EIA PT. ADEI through the analysis of UKL-UPL in 2009. PT Adei P & I had smallholders plantation scheme in form of Full Managed Cooperative Credit Scheme (KKPA) located in Batang Nilo Kecil Village, Telayap Village, and Sering Village with an area of 1,644 hectares. Total member of the Cooperative Credit Scheme participants were 775 families with investment of Rp 86 billion. Cooperative Development Credit Scheme of Batang Nilo Kecil began in 2006 with the planting was started in 2007 until 2013 in 541 hectares (including unplanted land). Cooperative Credit Scheme of Sering Village began in 2009 and plantation started in 2010 until 2013 for area of 120 hectares (including unplanted land). Cooperative Credit Scheme in Telayap Village was initiated in 2022 and started planting in 2003 until 2013 with area 1,002 hectares (including unplanted land). Monthly Progress Report of Cooperative Credit Scheme for plantation development was available for all locations of the Cooperative Credit Scheme.


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 procedure of communication and consultation with the community is written in this following SOP, such as: - SOP Number 19 concerning Communication and Consultation with communities that contains a description of the

procedure, in charge, and a detailed explanation of the communication, consultation, and socialization with stakeholders. All of these activities were recorded in the log book of socialization with stakeholder made at each division.

- SOP Number 1 concerning Granting of information and feedback, which includes the division of tasks, procedures provision of information, and recording information and responses in the logbook information.

- SOP Number 20 concerning Handling of Complaints and dissatisfaction which includes the division of tasks, detailed procedures, and recording / documentation.

The record of the communication and consultation process was available in the log books of the socialization process and consultation containing records and proof of socialization and consultation with the community. Log book was available for every Division as shown by the sample book of socialization and consultation. There was alos record of socialization and consultation for HCV, SEIA, internal socialization, meeting CSR program plans, etc. The company had a list of stakeholders include government agencies, trade unions, community leaders and traditional leaders, and village head/Muspika and NGOs around the plantation. Recording of the aspirations from the people had also been recorded in the record books of aspirations and complaint. Aspirations were recorded on incoming mail, the sender, the subject of the company's response. In accordance with the SOP number 19 concerning communication and consultation, in particular PT Adei P & I had appointed special officers who were responsible for consulting and communicating with the public. Communication and consultation team to the community was led by the Senior Manager of Public Relations) assisted the public relations team consisting of: Senior Public Relation and Personnel Assistant, Senior Assistant Public Relations RSPO and Administrative Staff. According to SOP Number 19, in addition to the public relation, communication and consultation was also assisted by the Public Relations manager by any other officer related with the Division.


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


ASSESSMENT REPORT


There was a SOP number 20 about Complaints and Objection Handling Procedures, approved by the Senior Manager on 1 April 2013 which explained the following:

All incoming complaints should be reported and recorded by assistants.

Completion of complaints / disputes justly and wisely made through open talks with related parties through the following procedures: - Any issue that could not be resolved by the manager / assistant must be reported to the General Manager. - Managers should refer to the General Manager (GM) / Mill Adviser (MA) for advice if there was complaint that

could not be resolved. - Manager must refer to the GM / MA for advice whenever there was complaint that could not be resolved.

Records of complaints / objections handling were available in “Complaints Log Book”. This book recorded incoming mail, sender, subject, and company. However, based on the public consultation, there was no enough evidence about the record of response to complaints from villagers, particularly from Kuala Tolam village residents which was submitted in March 2013, in accordance with SOP 20 concerning grievance and procedures. (CAR 2013.05) Verification 21 June 2013 The company had sent response to Kuala Tolam citizen complaints related with silting canals. Response was delivered through a response letter from the company management. It explained that the company had decided to de-silt the canals and it was still in the process of calculating its cost of canal dredging by management on 21 June 2009, so the status of nonconformance CAR 2013.05 is closed There was also SOP 27 concerning Land Acquisition and Compensation on 1 April 2013 which described the steps of land acquisition, through:

Land acquisition should be done through appropriate and correct way and no negative impact for the investment of company and social interest.

For acquisition, land should be approved by management and had complete supporting documents.

Land to be acquired was a land that administratively submitted by the owner, and steps that should be followed in land acquistion were: - Submission of information concerning land acquisition plan to the relevant parties. - Inventory and field research - Aspect of land legality and administration including price / compensation - Examining the facts on the land against the land to be acquired include land acquisition not to perform in the

area/region in accordance with the status of forest areas / HCVF / riparian area - Granting of compensation and / or payment of restitution of land to grow crops. - Phase of funding appeal payment / compensation of land - Phase of research / verification of payment documents. - Phase of compensation payments / compensation of land acquisition. - Phase of storage of documents / evidence of land acquisition


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.

The company had a standard procedure of identification, calculation and compensation for loss of legal rights, or customary rights due to the opening of the estate. The standard procedure is set out in:

Document of SOP Number 26 about Land Dispute Resolution Procedure which explains the division of tasks, details of the process, as well as social issues flowchart in the social issue solving, land disputes, land disputes / border. Identification of land to be participatory and can use a neutral official surveyor. Indemnity agreement is Free Prior Informed Concern (FPIC) and the calculation and compensation mechanism is also determined based on negotiations and the market price. Any agreement or payment of compensation / damages must also be signed by the concerned parties to be known by the authorities.

Document of SOP Number 27 about Acquisition of Land for Palm Oil Plantation explaining the details of the tasks


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division and processes (formal procedure) as well as references in the process of acquiring land for palm oil cultivation. The process is described starting from the collection of land information, identification of locations, formally filing, meetings with stakeholders, and complete legal arrangement for the opening of estate.

PT Adei P & I showed that in the early stages of the opening of estate, the process of identification has been carried out to parties who receive compensation for land clearing program. The process of compensation identification was conducted together with team from the representatives of local government and community, company as shown by the official report on 15 March 1991 concerning the submission of the results of the inventory. For example, affected area by PT Adei P & I are 107 pages made by Kampar District inventory team, formed by decree of Kampar Regent, and minutes of meeting of the outcome of the boundary demarcation between PT. Adei with Batang Nilo Kecil Village on 17 January 1998 by survey team of the Local Government of Kampar District. Examination of documents in the audit of Stage-2 also showed that the company had had a record of negotiations and compensation agreement as shown in criteria 2.3. A number of additional documents related to the negotiation process are: the minutes of meeting of land delivery around the village and negotiation processes of existing customary land around the estate. As the follow-up of the negotiations, the company had paid compensation to the related parties in the exemption for estates. In particular, an explanation of process and evidence of compensation implementation refers to the outlined in criteria 2.2. and 2.3 about the recording of the compensation payment to the community and traditional rights in the form of the minutes of meeting of sagu hati payments in all villages for relinquished land mass or proof of payment of the land in the form of receipts submitted individually, picture and a statement.


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.

Minimum wage standard in 2013 had been implemented through company regulation decree signed by the Director on 25 March 2013. Based on payment document, the wage payment had consistent with Regulation of Riau Governor Number 16 year 2013 concerning the agricultural sub-sector minimum wage of Riau Province in 2013. The company had specific agreement with Labor Union in the period of year 2012 to 2014 (labor union: SPPP PUK SPSI, SBSI HUKATAN PK and PK SBSI 1992). The Labor Union and the Agreement had been registered at government office in accordance with applicable regulations based on the Decree of the Head of the Manpower and Transmigration Department, Pelalawan District Number KPTS.560/DTKT-PKB/2012/032 on 26 July 2012 with a validity period of 27 June 2012 - 26 June 2014. The company had provided infrastructure and facilities for the employees including: housing for each employee; school facilities such as kindergarten and elementary school; health facilities: 1 unit clinic (in Nilo Timur 1 Estate Division 6); school bus transportation; religion facility: mosques and churches; cleaning water supply from reservoirs and wells; sports facilities such as football court and volleyball court. The company had also monitored performance of contractors in term of employees welfare. There was sample of contract with CV. GCA SUPPLY (contract number: ADEI-KNT2/SPPB/033/12) located in Pekanbaru for service of dump truck rental (empty fruit bunch transportation), land transport, rent excavator, bridge maintenance, culvert and tide, validin1 October - 31 October 2012. In this agreement, company had emphasized that contractor had to comply valid regulations in terms of employment, among others, in Article 10 explains that the labor insurance was an obligation and responsibility by the contractor, and Article 13 comply with the Occupational Health & Safety and environmental such as all workers must be completed with Personal Protective Equipment, surrounding area should be clean and safe after the completion of work.


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.


ASSESSMENT REPORT


PT Adei P & I had policy concerning Freedom of Association approved by the Regional Director on 1 October 2011, which stated that the company gives freedom to worker to join with any legal labor union under applicable law. There was organization of workers such as Serikat Buruh Sejahtera Indonesia 1992 (SBSI 1992)) which have been reported and recorded by the Manpower and Transmigration Department, Pelalawan District Number 800/DTKT-PEN/SP-SB/2011/010.

SBSI 1992 Nilo POM There was a board of Commissioner's Stewardship arrangement of SBSI PT Adei P & I Nilo 1 and 2 POM based on the Decree of the Board of Directors Branch of SBSI 1992, Pelalawan District Number 014/PK/DPC SBSI 1992/PLLW/2012 on 05 May 2012. Based on interviews with the Head of SBSI 1992 at Nilo 1 and 2 POM, there were 83 employees enrolled as members of SBSI 1992 Nilo 1 and 2 POM.

SBSI 1992 Nilo Timur Estate There was board of Commissioner's Stewardship arrangement of SBSI PT Adei Plantation And Industry Nilo Timur Estate for period in 2013 - 2015 by the Executive Council Decree SBSI1992 of Pelalawan District Number 04/SK/DPC SBSI 1992/PLLW/III/2013, established on 17 March 2013. Based on interviews with Head of SBSI 1992 at Nilo POM, there were 483 employees enrolled as members of SBSI 1992.

There was record of meetings on 27 September 2012 with the agenda related to the problem of lighting, water, housing repairs, fencing reservoirs, and referral of hospital. The meeting was attended by representatives of labor union and company representatives. Evidence showed that all problems / complaint had already been responded by the company


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.

PT Adei P & I had a policy concerning prohibiton of child labor to work in plantation. The policy approved by the Regional Director on 1 October 2011, which stated that the company committed to not employing children under age of eighteen years old. Based on field observations at Nilo Timur 1 Estate Division 6, fertilizing workers (at Block 51), harvesting workers (at Block 52) and spraying workers (at Block 49), there was no worker under the age of 18 years old and all workers had been understood the company's policy regarding age restrictions minimum labor.


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.

PT Adei P & I had policy concerning opportunities and equal treatment in employment approved by the Regional Director on 1 October 2011, which explained that the company gives fair and equal treatment to all workers regardless of race, ethnicity, caste, nationality, religion, gender, sexual orientation and union membership. There was evidence of fair opportunities and equal treatment for employee in term of working regulation, such as conversion from Daily non-permanent Employee (KHL) status to Daily Permanent Employee (KHT) status in PT Adei P & I made on 14 May 2013. Until June 2013, the realization of the conversion from “KHL” status into “KHT” was 47 people (NILO 2 POM), 18 people (Nilo Timur 1 Estate Division 6) and 10 people (Nilo Timur 2 Estate Division 8).


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

PT Adei P & I had a policy concerning sexual harassment and violence approved by the Regional Director on October 1, 2011, which stated that (1) The company had no tolerance for sexual harassment and violence against women in the workplace, (2) Sexual abuse and violence was serious mistake that the company would give decisive action against the perpetrators, (3) The management should provide good example and become a responsible role model to prevent sexual harassment and violence.


ASSESSMENT REPORT


PT Adei P & I had had policy concerning protection of women's reproductive rights approved by the Regional Director on 1 October 2011, which stated that the company will comply with all legal and regulatory requirements relating to women's reproductive rights, and the committee gender will be established to implement and monitor this policy. Moreover, the protection of reproductive rights was set in the Collective Labor Agreement in clause 22 and 23 concerning Period Off and Pregnancy / Childbirth Leave, which stated that menstruation leave for female workers / employees was 2 days. It should be notified to the company through the medical officer designated by the company, and for women workers who were pregnant / giving birth granted leave for 1.5 months before birth and 1.5 months after delivery in accordance with the provisions and medical information designated by the company. Based on the interviews with Gender Committee of Nilo Timur Estate, Committee Gender was formed in February 2013 as a form of sexual harassment prevention policy implementation. There wa record of Gender Committee of Nilo Timur Estate meetings and activities, for example on 24 April 2013 with the agenda of gender committee work program discussion. The policy of reproductive rights protection was implemented in the SOP number 22 Treatment Facilities approved by Mill Assistant Adviser on 01 June 2013, which provided free pregnancy tests for women workers at spraying / fertilization/ chemicals mixing officers with a frequency of 1 x 1 year and pregnant workers should be immediately transferred to the work that was not related to chemicals. Based on field observations and interviews with spraying workers at Nilo Timur 1 Estate Division 6, fertilization workers at Block 49 and Block 51 Division 6 Nilo Timu r1 Estate, there was no spraying worker and fertilization workers who get pregnant and/or breastfeeding and all workers had understood the prohibition of pregnant and breastfeeding workers to work using chemistry materials. There was mechanism of complaint handling related to sexual harassment as regulated in the SOP 25 Sexual Harassment Complaint Procedures approved by Mill Assistant Adviser on 1 April 2013. The SOP briefly described: (1) In case of sexual harassment, it should be reported to Gender Committee, (2) The complaint would be investigated as soon as possible; (3) The results of the examination would be given to the supervisor for disciplinary action. Based on interviews with the Gender Committee of Nilo Timur Estate, until the audits process, there were no reports on the complaint of sexual harassment in the mill and estates.


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

In general NILO POM 2 did not recevive FFB from outside. Nevertheless document review showed that company had FFB pricing mechanism in accordance with SOP Number 28 on 1 April 2013 concerning FFB Price Determination Mechanism. FFB price for supplier price wasdetermined based on a formulation that refers to the Medan tender price every Tuesday and Friday. Based on the SOP Number 28 on 1 April 2013 concerning FFB Price Determination Mechanism, the standard formula of its measurement was described as follow: {((Price of CPO/PK –net of freight charges) x OER/KER) –reduced by wages}. For FFB from outside party, an agreement contract between PT Adei P & I with external suppliers of fruit had been made by the Regional Director as the Head Office of PT Adei P & I in Pekanbaru facilitated by the Marketing Section. Agreements with suppliers had been made for a specific period as agreed by both parties in a transparent manner. FFB purchase documents examination at marketing department of PT Adei P & I showed that in so far no FFB purchase from local suppliers at NILO 2 POM.


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

Company contributions to regional development could be demonstrated in the form of: a. CSR activities, as shown by the records of CSR for a year for the period of 2011 - 2012 (the period October 2011 to

September 2012). b. Records of local community involvement as a contractor in a number of activities in the plantation projects, such as

residential construction activity and other infrastructure projects that still allows handled by the local community. a. Complete recording tax payments to the government either monthly or yearly such as: PPH Tax article 21, article 22,


ASSESSMENT REPORT


article 23, article 24, article 4 (2), VAT, and Property Tax (central office).


PRINCIPLE #7 Responsible development of new plantings

There was no new development planting in PT Adei Plantation and Industry area. Based on Area Statement of these two areas (Nilo Timur 1 Estate and Nilo Timur 2 Estate), the youngest plants in the concession area of PT Adei Plantation & Industry is plants year 2004.


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 company had planned to reduce the use of paraquat in the Monitoring document the use of paraquat dichloride for 5 years which was approved by the General Manager.

Plan of boundary demarcation along the estate boundary incoordination with with the National Land Agency Pelalawan District

There was also RSPO audit report conducted by the sustainability department on 12 – 15 March 2013. Based on the results of the audit, there were some nonconformances found and all have been followed up by each estate



ASSESSMENT REPORT


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.

Based on documents review, work instruction for RSPO supply chain certification system for palm oil mill was available for scope of Kuala Lumpur Kepong Berhad Company specifically NILO 2 POM.

The document mentioned that the model of supply chain of NILO 2 POM was segregation because mill not receive fruit plam from outside and only accept fruit plam from they estates that has been certified.

The procedures covered application of all elements in segregation process along with the person who responsible for implementation of segregation process and monitor compliance with all applicable requirements.


1.2

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

The procedures for receiving and processing certified and non-certified FFBs available as seen in the Guidance System RSPO Supply Chain for scope KLK Berhad. The document described the guidelines of reception station to separate certified and non-certified FFBs.


2 Purchasing and goods in

2.1

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

Examination of documents and field visits in Nilo POM2 Nilo showed that Nilo 2 POM had a procedure to verify and document the volume of TBS received. Field visit showed that the data of incoming FFB was kept in the computer system at the Weighbridge and printed on the ticket weigh that containing volume certified and not certified FFBs. Detailed technical instructions for weigh bridge presented in SOP weigh bridge.


2.2

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

Instructions in the document RSPO supply chain certification system for palm oil mill, scope of Kuala Lumpur Kepong Berhad Company, explained the information will be informed to the certification body if there is projection of over production.


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.


ASSESSMENT REPORT


Document review and field visits showed that:

The facility has had storage procedures and traceability documents that retained for at least 10 years in accordance with legal requirements.

CPO produced in accordance with the procedure identification and traceability.

Documents Control had been done, include if any document is damaged, lost or change, it immediately coordinated with representatives of management and approved by top management.


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

Based on procedure of NILO 2 POM related records storage and document identification and traceability retained for at least a period of 10 years in the administrative office of the factory in accordance with legal requirements.


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.

In the generic guidance document, it is mentioned that

a. MB quantity produced is recorded every day to record actual production in metric tons

b. Every day, quantity MB is added to the total previous day to get the data of total achievement.

c. Each CSPO that dispatch as CSPO (MB) is recorded and subtracted from the rest of the achievement to provide

net quantity of CSPO (MB) that available.

d. If the rest of the achievement is not sufficient to fulfill the order CSPO (MB), Ipoh and delivery period will be

notified.

e. rest of the achievement will be reconciled maximum within three months


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.

Documents review showed that generally RSPO SCCS generic instructions stated that every revenues and expenditures of product, the company listed Product Name and stamped Mass Balance / Segregation


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

The audit examination showed that Directive generic RSPO SCCS regulate all invoices issued for RSPO certified products include information: name and address of buyer, date of invoice, product description, product number, and a reference of transportation document that has been sent.



ASSESSMENT REPORT


5 Processing

5.1

The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oil 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.

The audit examination showed that Directive generic RSPO SCCS in KLK include PT. Adei has assure the record keeping RSPO certified palm oil clearly segregated from non certified material including during transport and storage. Field inspection showed that the policy not accept fruit from the outside and good recorded to make sure contamination is avoided so that the minimum standard of 95 % segregated physical material can be reached.


5.2

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

The audit examination showed that Directive generic RSPO SCCS in KLK include PT. Adei has assure documentation of palm oil processing start from weighing up to delivery (dispatch) that enables RSPO certified palm oil can be traced back to the source materials segregated that certified.


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

Palm oil mill do not outsource palm kernel crushing activities.


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 company has socialized RSPO SCCS on 24 April 2013 which was attended by 21 participants consisting of GM in Nilo estate, Senior Manager Nilo estate, Manager, and Senior Assistant.

For technical officer who handles SCCS (from level assistants, staff, or administration staff) has conducted training on 19 June 2013 and technical staff at NILO SCCS POM 2 with internal speakers from PT. Adei who has trained RSPO certification.


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.

Based on Directive generic RSPO SCCS stated that the company only makes 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.



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√

- Will be verified at the time of surveillance activities. -

Status: Not Applicable

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

X or√



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

X or√



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

X or√




ASSESSMENT REPORT


3.4. Summary of RSPO Partial Certification.

Total companies observed (0.5 √Y) Where Y is the total of uncertified RSPO registered company The Management Unit name : - Date of Observation: -

2.1

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

X or√

All subsidiary of Kuala Lumpur Kepong Bhd are planned to be RSPO certified.

Status: Compliance

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: Compliance

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: Compliance

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: Compliance

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: Compliance

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: Compliance

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: Compliance


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 ST1 Assessment

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2013.01

Major 4.4.1 Minor 4.3.4

Measurements of Peat Soil Surface Level (subsidence) The company has not yet provided evidence of measurement and monitoring high-level decrease of peat soil, according to PP No 150 year 2000 about soil Damage Raw Criteria for Biomass Production and Permen LH No 7 year 2006 about procedures of Measuring Soil Damage Raw Criteria for Biomass Production.

estate Potential NC

Stage-2 The company must show evidence of measurement and monitoring high-level decrease of peat soil

June 19th , 2013 The company has shown evidence of implementation and monitoring measurement height decreased peat soil surface by poles of subsidence measurements in June 2013 as 2 (two) units and 5 (five) other poles are planned to install in July 2013

Closed 19 June, 2013

2013.02

Major 5.1.2

Subsidence Data in RKL / RPL Report RKL / RPL did not provide data and analysis of peat subsidence conformity with EIA document requests PT Adei Plantation and Industry in 2006.

Estate NC Stage-2 The company must show evidence of subsidence measurements have been presented in the document RKL / RPL and reported to the relevant agencies.

June 19th , 2013 There is insufficient evidence of subsidence measurements result in the document RKL / RPL that has been reported to the relevant agencies. Verification of July 19th, 2013 The company showed evidence of subsidence measurements result in the document RKL / RPL that has been reported to environment agency Pelalawan. Available delivery receipt and copy of RKL-RPL report equipped subsidence measurements dated 12 July 2013

Closed 19 July 2013


ASSESSMENT REPORT


CAR No



Closing Date

2013.03

Minor 5.3.1

Reporting of Clinical Infectious Waste Infectious waste has not been listed in the log book balance of waste that reported to environment agency.

Estate potencial NC

Stage-2 The company must add medical waste in the log book balance of waste that reported to environment agency.

June 19th , 2013 hazardous waste and infectious waste as much as 24.8 kg have been recorded in the balance sheet and have been reported to environment agency Pelalawan on May 25th , 2013

Closed 19 June 2013

3.5.2 Identification of Findings, Corrective Actions and Observations at ST2 Assessment

CAR No



Closing Date

2013.04

Major 5.1.2

Data of Surface Water Quality Measurement in of RKL / RPL Report Documents of Implementation RKL / RPL did not load data surface water quality test results of Batang Nilo Kecil river and Telayap river accordance to RKL / RPL request.

Estate NC Before certificate issued

The company must show evidence of data surface water quality test results of Batang Nilo Kecil river and Telayap river has been reported to the relevant agencies.

July 19th, 2013 The company showed evidence of data surface water quality test results of Batang Nilo Kecil river and Telayap river and delivery receipt of RKL-RPL report dated 12 July 2013

Closed 19 July 2013

2013.05

Minor 6.3.1

Recording grievance or complaints There is no enough evidence of complaints response from villagers, especially the villagers of Kuala Tolam which was submitted in March 2013, according to SOP 20 about the grievance procedure.

Estate NC Surveillance1

The company must provide evidence of complaints response from villagers Kuala Tolam according to SOP 20 about the grievance procedure.

June 21th , 2013 The company showed response of Kuala Tolam complaints related to silting canals that delivered through formal response letter from the head estate date June 21th , 2009.

Closed 21 June 2013


ASSESSMENT REPORT


3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 Major 2.2.2

The company shall ensure maintenance and reconstruction process HGU poles in accordance with the plans

2 Major 4.7.2

The company shall improve performance guiding committee of occupational safety & health (P2K3) by conducting regular meetings every month

3 Minor 4.7.6

The company shall ensure monitoring system of emergency response equipments such as shower and fire extinguisher well funtion and ready to use.

4 Major 5.1.2.

The company shall ensure implementation regular monitoring of river water quality in plantation area by the competent authorities (accredited) and report ed in RKL - RPL

5 Major 5.3.2

The company shall ensure disposal of domestic waste especially non organic conducted in accordance with the applicable procedures.

6 Minor 6.1.4

The company encourage to improve performance management and monitoring of social impact through the records management and monitoring of social impacts that presented in documents of implementation RKL / RPL

7 Minor 6.5.1.

The company encourage to ensure availability of clean water that suitable for consumption for all employees.

8 Major 8.1.1

The company shall increase performance of agrochemical materials storage through the provision of adequate ventilation.

3.5.4 Noteworthy Positive Components

No Ref Std Descriptions

- - -


ASSESSMENT REPORT


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

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

(1) Village Head Kuala Tolam (Zukri):

There has not yet responsed from company concerning the application letter laundering canal that passes through the village of Kuala Tolam (in March 2013).

There have not yet responsed regarding requests for social assistance for village activities such as requests for assistance sports activities.

Flushing of drainage will be done and curently it is still in the

process of calculating the leaching fee by management.

Response letter was sent to Head village of Kuala Tolam on

20.06.2013.

In the first half of 2013 there was no assistance request

received from Kuala Tolam village. Basicly, the company always

willing to help.

The company shall improve communication performance through ensure the records and responses of assistance requests in accordance with the applicable procedures.

(2) Head of Palas Village (Mr. Samsari AS.):

Not all the concession area of PT. Adei is located Palas Village has been compensated. There is only 77 Ha from 221 that are considered located in of Palas village has paid.

There are allegations of operational area PT. Adei exceed HGU statement area. It are based on information that PT. Adei area is 14,000 Ha while HGU area is 12,860 Ha.

CSR program PT. Adei did not meet the expectations of society.

Compensation that based on data submitted by the Data

Collection Team from village in 1991, it was agreed based on the

land tilled by the people and the plants is 71.55 ha (supporting

data attached).

The operational area is in accordance with area of HGU

certificate, is 12,860 ha.

Information that obtained in Internet is 14,000 ha, it is total area of PT. Adei Plantation & SWP Ladang mutiara cover 1,700 ha. (attached supporting data)

CSR programs implemented based on community needs and

requests.

(Attached supporting data).

The company has legal documents of land tenure rights that have been recognized by the Pelalawan’s Government. Compensation process has been carried out in full at the initial stage of development plantation. For the case of ongoing land claims, the settlement process has been running and there is mediation from local government. Field inspection showed that there were no PT. Adei Plantation and Industry area located outside of the concession (HGU area). To ensure proper benefit sharing, the company needs to improve performance, communications and monitoring consistency of social impact.

(3) Head of Kemang Village (Mr.Charles)

There is no CSR program of education (scholarships) which is very important.

Involvement of local contractors as part of local economic empowerment is still lacking.

CSR programs of education was done in the form of teacher

assistance salary is Rp. 700,000 per month, and on going

process is making the kindergarten fence with value

Rp.17.192.055 and Toilet kindergarten

The company have provided contract of build home to local

The company show evidence of involvement of local contractors and local employee has been adequate. However, to ensure proper benefit


ASSESSMENT REPORT




Absorption of local labor is still deemed less

Non permanent employees who have worked for long is still not be permanent employees.

Communication between the company and village elated with local employee issues is inadequate

Community ask smallholder program for Kemang Village

The system of land restitution in the past considered unfair because it only calculates the replacement of plant communities.

There is no socialization of the company to Kemang Village.

There has not yet response of requests for assistance such as the cooperatives and heavy equipment.

contractors (attached supporting data, copy / photocopy SPK).

Local labor absorption is maximal even exceed the amount

needed. The current ratio is 1:11 Ha while the target is 1 : 18 ha

One of the employment relationships as non permanent

employees is formaintenance estate. But Non permanent

employees in production area has been raised gradually

(program attached)

Provisions for employees follow the rules / labor laws about

basic rights. Non-normative right of facility applies equally to

local and non-local.

Communication was done with head of village, as the data is attached. Communication / socialization to the villages will be conducted 1 x 6 months.

Smallholders Program that discussed in 2011with Kadesh

Kemang (Mr. Idris); however there is no land available so that

there is agreed compensation in the form of assistance for

mosque and vilage Office and it have been realized.

Although there is agreement on the above, the company is willing to build smallholders as long as land provided by the village, as it was presented in a meeting at the Regent office. (Attached supporting data).

Compensation is carried out based on data submitted by the

team involved the village, calculated acreage and crop growing.


Socialization to the community and village heads have been

conducted on 20/02/13 with material about:

a. CSR program.

b. environment.

sharing, companies need to improve performance of social communications and consistency social impact monitoring to ensure the positive and negative impacts have been well managed


ASSESSMENT REPORT




Assistance for roads and others has been done include the use

of heavy equipment owned by the company such as Beckhoe

Loader and Grader. (Supporting data attached)

(4) Chairman of BPD Telayap (Mr. Nasron)

There has not yet response of request road maintenance in March 2013 to the company through public relations. While according to the agreements in 2004, the company wills regularly maintenance the road 3 times a year.

There has not yet response from the company related to maintenance Telayap river.

The Company planted in riparian land.

The response of CSR proposal is inadequate,

CSR program of PT. Adei still not meet the expectations of society.

Company displacing some existing graves in the HGU particularly in the area of Telayap village

• Maintenance of roads in Telayap village will carried out based on

road conditions and the readiness tool. In the first half of 2013,

road maintenance has been done 3 times in January, March and

April (attached supporting data).

• Maintenance of riparian and Telayap river company carried out

continuously. Last is carried out in Nov'12, Jan'13, and Feb’13

on Apr-Mei'13.

• Riparian of Telayap river since 2005 has been restored as the

rules / regulations

• Request assistance has been seriously responsed and given

particular related to social / public.

• Development of smallholder’s estate covering 1,002 Ha with

company funds. The assissteance such as building Head Office,

Mosque, Police Post Office and other assistance (CSR program

) that is still running is adequate (supporting data attached).

• The company no have right to displace the tomb. The Tomb has

been made as HCV by the company. (refer to document HCV)

The company shall improve communication performance by ensure the recording and responding of requests for assistance in accordance with the applicable procedures. Riparian management basically has well conducted by the company through: Enrichment plant, chemical-free treatment in riparian areas, installation of warning sign to not hunting and damage riparian, socialization, etc. The effort has been sufficient to maintain riparian To ensure proper benefit sharing, the company shall improve performance of social communications and consistency social impact monitoring in accordance RKL-RPL to ensure the positive and negative impacts have been well managed, as well as aspirations for CSR activities can be accommodated.

(5) Head of Batang Nilo Kecil Village (Mr.Suryanto)

Contribution company of to the welfare society through CSR programs is inadequate.

There is no CSR program can increase productive economy, through programs guided village.

There are areas of Batang Nilo Kecil village not be

Request assistance has been seriously responded and given by

company particular related to social / public.

Smalholders program intended to increase the economy of

villagers should be properly maintained in order to achieve the

goal.

The company shall improve communication performance by ensure the recording and responding of requests for assistance in accordance with the applicable procedures. The company has legal documents of land tenure


ASSESSMENT REPORT




compensated by PT. Adei mainly due to the compensation only account the area planted.

There has not yet response of request for roads maintenance in Batang Small Nilo village.

The FFB of village estates accommodated at mill is few (1 truck a day). Community expects contribution of local economy through FFB purchase.

Compensation is carried out based on data submitted by the

team involved the village, calculated acreage and crop growing.


Road maintenance was performed by the company in

accordance with the requirements., and the last in Jun'13 last

month.

Mill receive FFB beyond mill condition and economic factors.

FFB is received based on quality.

rights that have been recognized by the Pelalawan’s Government. Compensation process in Batang Nilo Kecil has been carried out in full at the initial stage of development plantation and includes not only plants, but the entire area affected. For the case of ongoing land claims in Batang Nilo Kecil Village, the settlement process has been running and there is mediation from local government. To ensure proper benefit sharing, the company shall improve performance of social communications and consistency social impact monitoring in accordance RKL-RPL to ensure the positive and negative impacts have been well managed, as well as aspirations for CSR activities can be accommodated.

(6) Head of Terentang Manok village (Mr.Bakri)

CSR programs of education are inadequate.

Involvement of local contractors as part of local economic empowerment is still lacking.

Providing support for education and other social activities have

been carried out and adequate.

Local contractors have been involved such as PT. SAFARI

RIAU, because Terantang Manuk village is working area of PT.

SAFARI RIAU.

To ensure proper benefit sharing, the company shall improve performance of social communications and consistency social impact monitoring in accordance RKL-RPL to ensure the positive and negative impacts have been well managed, as well as aspirations for CSR activities can be accommodated.

(7) Tenant Housing Division 1 Clean water facilities is inadequate. Source water from reservoirs division 1 is used as an alternative to consumption is considered dirty and contains a lot of sediment, and directly discharged without any prior

Water management at the division-1 is planned refurbishment began in October 2013 and has made a budget Rp 355 million.

The Company has prepared adequate follow-up program in the form of improvement of water facilities in each division.


ASSESSMENT REPORT




processing.

(8) Forestry and Plantation Agency

Mediation process by the local government against the society’s demands about smallholders in five Villages (Telayap, Batang kecil Nilo, Palas and Kemang) is on going.

Mediation process is also running for the land claims by villagers around

Pesticides used Paraquat active ingredient, while the company has not made training use of pesticides for sprayers.

The company planted in riparian areas that should be used for the protection of the river area.

Smallholder with KKPA patern have been built exceed the

provisions in Sering village, Telayap village and Batang Nilo

Kecil village. But in kemang village does not have vacant land. In

Palas village does not have vacant land and 25 families have

been accommodated participation in PT. SAFARI RIAU.

Mediation by Pelalawan government

Training has been conducted by the Commission on Pesticides

Riau Province and related agency began December 2012 and

June 2013 (attached supporting data).

Concession area PT. Adei Plantation and Industry is former

timber exploitation PT. Rimba Mutiara and INHUTANI IV which

initial managed by PT. Adei, riparian is shrub subsequently

planted with palm oil to ensure the work area and avoid wild

claim. Since 2005, there has done forestry planting and allowed

to naturally back.

For the case of ongoing land claims in Batang Nilo Kecil Village, the settlement process has been running and there is mediation from local government. The company has shown evidence of training use of pesticides paraquat aids Provincial Plantation Agency Riparian management basically has well conducted by the company through: Enrichment plant, chemical-free treatment in riparian areas, installation of warning sign to not hunting and damage riparian, socialization, etc... The effort has been sufficient to maintain riparian To improve performance, company shall ensure reported activities of riparian management in environmental management plan / environmental monitoring plan (RKL/RPL).

(9) National Land Agency (BPN)

The company have legal right of land through land use title issued the National Land Agency of area 12,860 ha for plantation and palm oil mills.

Currently, there are issues of land compensation claims by communities around PT. Adei. National Land Agency with other government agencies has conducting mediation for this problem.

Legally, Batang Kecil nilo Village area (565 ha) is located outside the concession.

Concession area PT. Adei Plantation and Industry cover of

12,860 hectares has been managed in accordance licensing and

designation.

The company followed government mediation carefully and

provided documents and a clear answer on the issue.

Self-explanatory.

The company has legal documents of land tenure rights that have been recognized by the Pelalawan’s Government. Compensation process has been carried out in full at the initial stage of development plantation. For the case of ongoing land claims in Batang Nilo Kecil Village, the settlement process has been running and there is mediation from local government.


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 Adei Plantation and Industry

Mutuagung Lestari

Regional Director

Lead Auditor

Tan Kei Yoong

Bukti Bagja

1 August 2013

1 August 2013


ASSESSMENT REPORT


No Institution/NGO/Commu

nity Address Phone/Email Form of Contact

Date of Contact

1 Head of Kuala Tolam

Village

Viillage of Kuala Tonam, Subdistrict of Pangkalan Kuras, District Of Pelalawan, Province of Riau

-

Focus Discussion

Group

June, 17

2013

2 Head of Palas Village Viillage of Palas, Kecamatan Pangkalan Kuras, Kabupaten Pelalawan, Propinsi Riau

- Focus Discussion

Group

June, 17

2013

3 Head of Kemang Village Viillage of Kemang, , Subdistrict of Pangkalan Kuras, District Of Pelalawan, Province of Riau

- Focus Discussion

Group

June, 17

2013

4 Head of BPD Telayap Viillage of Telayap, Subdistrict of Pelalawan, District Of Pelalawan, Province of Riau

085265489152 Focus Discussion

Group

June, 17

2013

5 Head of Batang Nilo

Kecil Village

Desa Batang Nilo Kecil, Subdistrict of Pelalawan, District Of Pelalawan, Province of Riau

085307610101 Focus Discussion

Group

June, 17

2013

6 Head Of Terentang

Village

Village of Terentang, Subdistrict of Pelalawan, District Of Pelalawan, Province of Riau

- Focus Discussion

Group

June, 17

2013

7 Forestry and Plantation

Agency

Komplek Perkantoran Bhakti Praja, Jl. Karya Praja, Pangkalan Kerinci

Telp. (0761) 493728,

Fax.( 761) 95017

Focus Discussion

Group

June, 17

2013

8 National Land Agency Komplek Perkantoran Bhakti Praja, Jl. Karya Praja, Pangkalan Kerinci

Telp.( 0761) 494321

kab-

[email protected]

Focus Discussion

Group

June, 17

2013

9 Labor and

Transmigration Agency

Komplek Perkantoran Bhakti Praja, Jl. Karya Praja, Pangkalan Kerinci

Telp. (0761) 494834 Focus Discussion

Group

June, 17

2013

10 Enviromental Agency Komplek Perkantoran Bhakti Praja, Jl. Karya Praja, Pangkalan Kerinci

- Focus Discussion

Group

June, 17

2013

11 JIKALAHARI (Jaringan

Kerja Penyelamat Hutan

Riau)

Pekanbaru Email :

secretariat@jiklahari.

org

Kuesioner by email June, 14

2013

12 Jaringan Masyarakat

Gambut Riau

Pekanbaru Email :

anaknegeri.andalas@

gmail.com

Kuesioner by email June, 14

2013

13 WWF Pekanbaru Email :

[email protected]

Kuesioner via email June, 14

2013

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





ASSESSMENT REPORT


Appendix 2. Assessment Program

DATE 17, 20, 21, 22 June 2013

ACTUAL PROGRAM PROCESSES / CLAUSES TO BE AUDITED AUDITOR

Monday, 17/June/2013 06.00 - 08.30 09.00 – 11.00 11.00 – 12.00

14.00 – 17.00

Jakarta – Pekanbaru Pekanbaru - Site Opening Meeting Public Consultation:

Pelalawan District (Labour Agency, Environmental Agency, National Land Agency, )

Villages

Document Observation:

Review of Previous Visit Non-conformance (Stage-1)

Continue of Checklist Review and Follow up from stakeholder consultation

All Team

MM BB

MY, NK

Thursday, 20/June/2013 08.00 – 12.00

14.00-17.00

Field Observation Nilo Timur 1 Estate:

Legal boundaries,

housing complex and facilities (clean water, electric, worship buildings, health clinic, school, landfill and emergency response), harvesting activity, spraying activity, IPM implementation, chemical storage (mixing and handling mechanism), workshop and interviews (payments, sexual and racial harassment, child labour, religious, complaints procedures)

Conservation, erosion and lowland area, riparian zone, water management, run off

Document observation:

Continue of Checklist Review and Follow up from Field Observation Interview: Labour Union secretary and Gender Committee

BB

MY / NK

MM

BB, MM, MY

NK


ASSESSMENT REPORT


Friday 21/June/2013 08.00 - 12.00

14.00 – 16.00

16.00 -17.00

Field Observation: Nilo POM2

Documentation, workers interview (payment, training, facilities, racial harassment), safe working practices, safety and health equipments, fuel, water usage, process station, waste water treatment plant, workshop, hazardous waste storage and handling,

Field Observation Nilo Timur 2 Estate

Legal boundaries, housing complex and facilities (clean water, electric, worship buildings, health clinic, school, landfill and emergency response), harvesting activity, spraying activity, IPM implementation, chemical storage (mixing and handling mechanism), workshop and interviews (payments, sexual and racial harassment, child labour, religious, complaints procedures)

Conservation, erosion and lowland area, riparian zone, water management, run off

Document Observation: a. Continue of Checklist Review and Follow up from Field Observation Field Observation Clarification

BB

MY, NK

MM

BB, MM, MY,NK

BB, MM, MY,NK

Saturday, 22 June 2013 08.00 – 10.00 10.00 – 12.00 13.00 – 15.00 18.30 – 21.00

Audit Finding and Conclusion Preparation Closing Meeting Trip To Pekanbaru Trip To Jakarta

All Team


ASSESSMENT REPORT


Appendix 3. Glossary

APH : Agen Pengendali Hayati (Beneficial Plants)

AARI : Applied Agricultural Resources Indonesia

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

APD (PPE) : Alat Pelindung Diri (Personal Protective Equipment)

B3 : Bahan Beracun dan Berbahaya (Hazardous Material Waste)

BOD : Biological Oxygen Demand

BPN : Badan Pertanahan Nasional (National Land Agency)

CPO : Crude Palm Oil

CSR : Corporate Social Responsibility

EIA : Enviromental Impact Assessment

FPIC : Free, Prior and Informed Consent HCV : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Hak Guna Usaha. (Land Use Permit)

IK : Instruksi kerja (Work Instruction)

IUP : Izin Usaha Perkebunan (Plantation Operation Licence)

IPAL (WWTP) : Instalasi Pengelolaan Air Limbah (Wastewater Treatment Plant)

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

Jankos / EFB : Janjangan Kosong / Empty Fruit Bunch

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

KER : Kernel Extraction Rate

KHL : Karyawan Harian Lepas (Daily Non-permanent Employee)

KHT : Karyawan Harian Tetap (Daily Permanent Employee)

KLK : Kuala Lumpur Kepong Bhd

KNT 1 : Kebun Nilo Timur 1 (Nilo Timur 1 Estate)

KNT 2 : Kebun Nilo Timur 2 (Nilo Timur 2 Estate)

LA : Land Application

LSC : Land and Soil Capabilty

LC : Land Clearing

MSDS : Material Safety Data Sheet

NPOM 2 : Nilo 2 POM

OER : Oil Extraction Rate

P2K3 : Panitia Pembina Keselamatan dan Kesehatan Kerja (Committee of Occupational Safety & Health)

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

PK : Palm Kernel

PKS (POM) : Pabrik Kelapa Sawit (Palm Oil Mill)

POME : Palm Oil Mill Effluent

PT ADEI P & I : PT Adei Plantation & Industry

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

RSPO : Roundtable on Sustainable Palm Oil

SEL : Studi Evaluasi Lingkungan (Environment Evaluation Study document)

SIA : Social Impact Assessment

SIO : Surat Ijin Operator (Operator License)

SOP : Standard Operating Procedure

ST-1 : Stage 1

ST-2 : Stage 2

S-1 : Surveillance 1

TBS (FFB) : Tandan Buah Segar (Fresh Fruit Bunch)

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