[ ]Stage 1 Stage2 [ ] - RSPO · 2014. 11. 2. · 1.8.2 OHSAS 18001:2007 IDII/01880 – SGS...

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

[ ]Stage 1 [ ]Stage2 [ ]Surveillance

Plantation Manager/Owner : PT SAWIT SUMBERMAS SARANA

Plantation Name : Sulung Palm Oil Mill ; Kenambui Estate, Sulung Estate, Rangda Estate, Kondang Estate, Pulau Estate, Selangkun Estate and Rungun Estate

Country : Indonesia Village of Natai Baru, Sulung, Rangda, Kondang, Rungun, Sub District Arut Selatan, District Kotawaringin Barat, Province of Central Kalimantan

Certificate Code : MUTU-RSPO/023

Date of certificate issue : March 19, 2013

Date of expiry of certificate : March 19, 2018

Assessment

Date Report

Finalization Date PT Mutuagung Lestari

Auditor Checked By Approved By

ST1/

August 6-9, 2012 August 31, 2012

Taufik Margani; Oktovianus Rusmin; Ibnu Satria Prabudi;

Rudi Ramdani; Yudwi Wisnu Rahmanto

Octo HP Nainggolan Tony Arifiarachman

ST2/ September 17-21,

2012 January 29, 2013


Yudwi Wisnu Rahmanto

Octo HP Nainggolan Tony Arifiarachman

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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Submitted to RSPO on: Approved by RSPO on: Approved by Certification Body on:

January 30, 2013 March 11, 2013 March 14, 2013

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

CONTENT Page

Figure

Location Map of PT Sawit Sumbermas Sarana 1

Operational Map of PT Sawit Sumbermas Sarana 2

1.0 SCOPE OF CERTIFICATION 3

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Locations of Plantations, Mill and Hectare Statements 3

1.5 Description of Land Used 4

1.6 Cycles and Planting year 5

1.7 Approximate Tonnage Certified 6

1.8 Other Certifications 6

1.9 Time Bound Plans for Other Management Units 6

2.0 ASSESSMENT PROCESS 7

2.1 Certification Body 7

2.2 Lead Auditor and Auditor Team 7

2.3 Assessment Methodology, Progress, and Site Visit 8

2.4 Stakeholder Consultation and List of Stakeholder Contacted 12

2.5 Determining Next Visit 12

3.0 ASSESSMENT RESULT 13

3.1 Summary of Assessment Report of the RSPO Certification 13

3.2 Summary of Assessment Report of Supply Chain 29

3.3 Checklist Conformity of Certificate and Logo Use 32

3.4 Summary of Time bond Plan Verification of the RSPO Certification 33

3.5 Summary of Findings, Correction Action Required and Observation 35

3.6 Summary of Public Issues, Organization and Auditor Response 46

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY 49

4.1 Formal Sign-off of Assessment Findings 49

ANNEXES 50

1 Peer Review Report 50

2 Result of RSPO Committee - RSPO Certification 51

3 List of Stakeholder Contacted in the RSPO Certification Process 52

4 5

Audit Schedule Glossary

53 56

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.4 Page 1 Prepared by Mutuagung Lestari for Sawit Sumbermas Sarana

Figure One 1. Location Map of PT Sawit Sumbermas Sarana

PT. SSS


ASSESSMENT REPORT

SPO – 4006a.4 Page 2 Prepared by Mutuagung Lestari for Sawit Sumbermas Sarana

Figure 2.Operational Map of PT Sawit Sumbermas Sarana


ASSESSMENT REPORT

SPO – 4006a.4 Page 3 Prepared by Mutuagung Lestari for PT. Sawit Sumbermas Sarana

1.0 SCOPE OF CERTIFICATION

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 PT SAWIT SUMBERMAS SARANA

1.2.2 Contact person Muslikh Riza

1.2.3 Business address JL. H. Udan Said No. 47, Kelurahan Baru, Pangkalan

Bun, Central Kalimantan 74115

1.2.4 Telephone 0532-21297

1.2.5 Fax 0532-21396

1.2.6 E-mail [email protected]

1.2.7 Website www.citraborneo.co.id

1.2.8 Type of enterprise Private

1.2.9 Application information completed by duty authorized representative

Muslikh Riza

1.2.10 RSPO member registration 1-0111-07-000-00, April 18, 2007

1.3 Type of assessment

1.3.1 Certification scope Palm Oil Mill dan Estate

1.3.2 Type certificate Single

1.3.3 Names of company covered in this certificate PT Sawit Sumbermas Sarana

1.3.4 Number of management unit 1 unit Palm Oil Mill (Sulung POM) which receives FFB

Supply from 7 (Seven) unit estates, they are: Kenambui

Estate, Sulung Estate, Rangda Estate, Kondang Estate,

Pulau Estate, Selangkun Estate, and Rungun Estate.

1.4 Location of Plantations, Mill and Hectare Statements

1.4.1 Location of estate

Name of Estate (s) Location

GPS

Latitude Longitude

Kenambui Estate Sulung Village, Arut Selatan, Kotawaringin Barat

S 020 17′ 28.0′′ E 1110 40′ 43.4′′

Sulung Estate Sulung Village Arut Selatan, Kotawaringin Barat

S 020 16′ 30.4′′ E 1110 38′ 08.3′′

Rangda Estate Rangda Village Arut Selatan, Kotawaringin Barat

S 020 20′ 44.3′′ E 1110 34 ′ 44.4′′

Kondang Estate Kondang Village Arut Selatan, Kotawaringin Barat

S 020 20′ 20.3′′ E 1110 32′ 30.4′′

Pulau Estate Rangda Village Arut Selatan, Kotawaringin Barat

S 020 22′ 20.0′′ E 1110 37′ 22.8′′

Selangkun Estate Rungun Village Arut Selatan, S 020 25′ 52.6′′ E 1110 32′ 51.7′′

mailto:[email protected]

http://www.citraborneo.co.id/


ASSESSMENT REPORT


Kotawaringin Barat

Rungun Estate Rungun Village S 020 23′ 11.7′′ E 1110 32′ 24.7′′

1.4.2 Palm Oil Mill Location

Name of Mill Location

GPS

Latitude Longitude

Sulung POM Village of Sulung, Sub District Arut Selatan, District of Kotawaringin Barat, Central Kalimantan

S 020 18’ 20.0” E 1110 36’ 53,3”

1.4.3 Maps ( Figure 1 & 2 )

1.4.4 Country Indonesia

1.4.5 Region Southeast Asia

1.4.6 Village/sub district/District/Province Village Natai Baru, Sulung, Rangda, Kondang, Rungun, Sub District Arut Selatan, District of Kotawaringin Barat, Province of Central Kalimantan .

1.4.7 Tenure

State 19,842.49 Ha (Based on statement area , April 2012)

1.4.8 Description of Land Use

Total area 19,842.49 Ha

Mature area 18,378.75 Ha

Immature area 319.28 Ha

Mill 17.51 Ha

Infrastructures area 50.91 Ha

Road, bridge and drainage 220.62 Ha

HCV / Conservation Area & Infrastructures 855.42 Ha

* Based on statement area, April 2012

1.5 Description of FFB Sources

1.5.1 Estates

Name of Estate Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Suplly to POM

FFB (tonnes/year)

%

Kenambui Estate 2,867.31 2,690.49 52,690.96 19.58 46,827.94 12.26 Sulung Estate 3,392.44 3,268.30 74,110.74 22.67 70,533.08 18.26

Rangda Estate 2,652.08 2,562.41 66,824.36 26.07 65,148.89 17.05

Kondang Estate 3,236.48 3,099.00 88,174.99 28.45 86,613.20 22.67

Pulau Estate 2,476.92 2,282.47 51,795.23 22.69 51,172.97 13.39

Selangkun Estate 2,424.07 2,195.36 20,675.35 9.41 20,366.44 5.33

Rungun Estate 2,793.19 2,600.00 41,786.87 16.07 39,762.38 10.41

Total 19,842.49 18,698.03 414,314.26 22.15 380,424.90 99.57


ASSESSMENT REPORT


* Source : Production Data 2011 (Period on January – December)

1.5.2 Schema of Smallholder dan other sources of FFB

Sources Member Location

Total Area (Ha)

FFB (tonnes/year)

Supply to POM

FFB (tonnes/year)

%

PT Sawit Multi Utama CBI Group Kab. Kotawaringin Barat 13,566 12.84 12.84 0.003

PT Graha Cakra Mulia Graha Group Kab. Kotawaringin Barat 6,009 12.36 12.36 0.003

PT Sumber Mahardika USTP Kab. Kotawaringin Barat 17,500 534.19 534.19 0.140

PT FLTI Triputra Agro Kab. Kotawaringin Timur 17,000 946.22 946.22 0.248

Kel. Tani Roda Mewa --- Kab. Kotawaringin Barat 80 47.37 47.37 0.012

Kel. Tani Tunas Muda --- Kab. Kotawaringin Barat 60 88.01 88.01 0.023

TOTAL TOTAL 54,205 1,640.99 1,640.99

* If the POM receive FFFB from the other sources

1.5.3 Description of Palm Oil Mill

Name

Production Capacity

(tonnes/hour)

TBS Olah

(tonnes/year)

CPO Kernel PKO

Out put (tonnes)

Ekstraction

(%) Out put

(ton) Ekstraction

(%) Out put

(ton) Ekstraction

(%)

SULUNG POM

90 468,137.19 116,089.78 24.80 21,639.13 4.62 - -

* Source : Production Data 2011

1.5.4 Products FFB/CPO/PK /PKO

1.6 Cycles and Planting Year

1.6.1 Age profile of planted palms

Planting years Hectares Age (Year)

2000 12

2001 91.87 11

2002 335.96 10

2003 2,666.69 9

2004 4,301.97 8

2005 5,148.60 7

2006 842.14 6

2007 1,628.62 5

2008 1,149.38 4

2009 2,213.52 3

2010 319.28 2

2011 - 1

Total 18.698,03

Plants average age 7

1.6.2 New planting area after November 2005 – extension

6,152.94 Ha

1.6.3 Planting Cycle 20 - 30 Year

1.7 Approximate Tonnage Certified


ASSESSMENT REPORT


1.7.1 Year Actual Claim of Certified Products

Production of FFB

Tonnes/Year

Production of CPO

Tonnes/Year

Production of Palm Kernel (PK)

Tonnes/Year

Production of Palm Kernel Oil (PKO) - Tonnes/Year

1.7.2 Production Claim of Certify FFB

Name of Estate Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Kenambui Estate 2,867.31 2,690,49 60,581.76 22.517

Sulung Estate 3,392.44 3,268,30 85,206.22 26.0705

Rangda Estate 2,652.08 2,562,41 76,822.33 29.9805

Kondang Estate 3,236.48 3,099,00 101,391.53 32.7175

Pulau Estate 2,476.92 2,282,47 59,557.63 26.0935

Selangkun Estate 2,424.07 2,195,36 23,757.09 10.8215

Rungun Estate 2,793.19 2,600,00 48,049.30 18.4805

Total 19,842.49 18,698.03 455,365.86 24.35

Based on production average budget next three years (Periods 2012-2015)

1.7.3 Production claim of Certify FFB

Name of

POM

Production capacity

(tonnes/hour)

FFB (tonnes/year)

CPO Palm Kernel PKO

Out put (tonnes)

Ekstraction (%)

Out put (tonnes)

Ekstraction (%)

Out put (ton)

Ekstraction (%)

SULUNG POM

90 455,365.86 109,287.81 24 20,491.46 4.5 --- ---

*Based on budget 1(one ) year later.

1.8 Other Certification

1.8.1 ISO 9001:2008/ISO 14001: 2004 IDII/01881 – SGS Indonesia/19 Oktober 2011 ISO 9001:2008 IDII/01879 – SGS Indonesia/19 Oktober 2011 ISO 14001:2004

1.8.2 OHSAS 18001:2007 IDII/01880 – SGS Indonesia/19 Oktober 2011 OHSAS 18001:2007

1.8.3 HACCP -

1.8.4 Others -

1.9 Time Bound Plan for Other Management Units

Name of Management Unit Address Areas (Ha) Time Bound Plan Full

Assessment

1. PT Kalimantan Sawit Abadi Pangkalan Bun, Central Kalimantan 4,442.76 2013

2. PT Mitra Mendawai Sejati Pangkalan Bun, Central Kalimantan 8,921.38 2014

3. PT Sawit Multi Utama Pangkalan Bun, Central Kalimantan 16,755.26 2015

4. PT Tanjung Sawit Abadi Pangkalan Bun, Central Kalimantan 12,695.64 2016


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 Lead Auditor and Auditor Team

2.2.1 Assessment Team

ST1

1. Taufik Margani (Lead Auditor). A bachelor of Forestry, Majoring in Forest Management. A specialist in Environment. He had led a number of audits for Sustainable Forest Management in Indonesia (under the scheme of LEI-Lembaga Ekolabel Indonesia/Indonesia Ecolabel Body and FSC-Forest Stewardship Council) and Lead Auditor for FSC Chain of Custody. Other experiences: He was the certified Lead Auditor of IRCA for Environmental Management System and Quality Management System. Since 1999, he had worked for an independent certification body and had conducted a number of Audits of Environmental Management System, Quality Management System and RSPO in Malaysia and Indonesia. Currently, he works as The General Manager of Management System Certification. In this pre-assessment he conducted the assessment on legal and environment aspects.

2. Oktovianus Rusmin (Auditor). Bachelor’s Degree in Social & Political Sciences Department of Anthropology. Specialists in the field of Social and Cultural (Social Impact & Conflict Resolution) and HCVF. Followed the Forest Management Auditor Training (FSC Standard), ISO 14001 Environmental Management System Training & SVLK (wood legality) auditors, Indonesian Sustainable Palm Oil (ISPO) Auditor and Management System Certification (ISO 9001-2008/SNI 19-9001:2008) Lead Assessor. He was several times involved in the assessment of Sustainable Forest Management Certification (Standard LEI). Had worked at the Center for the study of Anthropology, University of Indonesia; and experts to the field of Social Tropical Forest Trust (TFT) Indonesia. He was numerously involved the Social Impact Study and Identification HCV in Oil Palm Plantations and natural forest concessions. In this assessment activity, he conducted assessment of social and land concession.

3. Ibnu Satria Prabudi (Auditor). Bachelor of Science in Agriculture, majoring in Agro technology. Followed the Awareness Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor. He had involved several time in RSPO certification assessment activities as an observer and under trainee. Currently he works for Independent Certification Body. In this assessment activity, he conducted assessment on Best Practices, Integrated Pest Management, soil and water management and waste management.

4. Rudi Ramdani (Auditor). A bachelor of Agriculture, Department of Cultivation Agriculture, Faculty of Agriculture, Bogor Agriculture Institute. He has a working experience two years at finance company and two years as staff of palm oil plantation. Training attended is Indonesian Sustainable Palm Oil (ISPO) Auditor and Followed the Management System Certification (ISO 9001-2008/SNI 19-9001:2008) Lead Assessor Training. In this assessment activity, he conducted assessment of plantation best practices.

5. Yudwi Wisnu Rahmanto (Auditor). Bachelor of Forestry with Silviculture background. He has attended in selected training, such as Auditor/Lead Auditor Course Quality Management System (QMS) ISO 9001:2008, Timber Legality Assurance System (SVLK), Verification Organization Training C.A.F.E Practices (Starbucks), Organic Standard (EU, NOP, JAS), Forest Stewardship Council (FSC), Program Endorsement of Forest Certification (PEFC) and Organic Exchange for Textile. He also has experience as an auditor and involved in certification program auditing, such as Sustainable Forest Management by FSC FM/COC Scheme, Coffee And Farmer Equity (C.A.F.E Practices) Starbucks, Sustainable Palm Oil by RSPO Scheme, Organic Standard (EU, NOP, JAS) for Coffee Farmer and Organic Exchange for Textile. Currently, he worked at Professional Certification Body and assigned to verify in Social aspect during this Assessment (ST2).

http://www.mutucertification.com/


ASSESSMENT REPORT


ST2 1. Taufik Margani (Lead Auditor). A bachelor of Forestry, Majoring in Forest Management. A specialist in Environment. He had led a number of audits for Sustainable Forest Management in Indonesia (under the scheme of LEI-Lembaga Ekolabel Indonesia/Indonesia Ecolabel Body and FSC-Forest Stewardship Council) and Lead Auditor for FSC Chain of Custody. Other experiences: He was the certified Lead Auditor of IRCA for Environmental Management System and Quality Management System. Since 1999, he had worked for an independent certification body and had conducted a number of Audits of Environmental Management System, Quality Management System and RSPO in Malaysia and Indonesia. Currently, he works as The General Manager of Management System Certification. In this pre-assessment he conducted the assessment on legal and environment aspects.

2. Oktovianus Rusmin (Auditor). Bachelor’s Degree in Social & Political Sciences Department of Anthropology. Specialists in the field of Social and Cultural (Social Impact & Conflict Resolution) and HCVF. Followed the Forest Management Auditor Training (FSC Standard), ISO 14001 Environmental Management System Training & SVLK (wood legality) auditors, Indonesian Sustainable Palm Oil (ISPO) Auditor and Management System Certification (ISO 9001-2008/SNI 19-9001:2008) Lead Assessor. He was several times involved in the assessment of Sustainable Forest Management Certification (Standard LEI). Had worked at the Center for the study of Anthropology, University of Indonesia; and experts to the field of Social Tropical Forest Trust (TFT) Indonesia. He was numerously involved the Social Impact Study and Identification HCV in Oil Palm Plantations and natural forest concessions. In this assessment activity, he conducted assessment of social and land concession.

3. Ibnu Satria Prabudi (Auditor). Bachelor of Science in Agriculture, majoring in Agro technology. Followed the Awareness Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor. He had involved several time in RSPO certification assessment activities as an observer and under trainee. Currently he works for Independent Certification Body. In this assessment activity, he conducted assessment on Best Practices, Integrated Pest Management, soil and water management and waste management.

4. Yudwi Wisnu Rahmanto (Auditor). Bachelor of Forestry with Silviculture background. He has attended in selected training, such as Auditor/Lead Auditor Course Quality Management System (QMS) ISO 9001:2008, Timber Legality Assurance System (SVLK), Verification Organization Training C.A.F.E Practices (Starbucks), Organic Standard (EU, NOP, JAS), Forest Stewardship Council (FSC), Program Endorsement of Forest Certification (PEFC) and Organic Exchange for Textile. He also has experience as an auditor and involved in certification program auditing, such as Sustainable Forest Management by FSC FM/COC Scheme, Coffee And Farmer Equity (C.A.F.E Practices) Starbucks, Sustainable Palm Oil by RSPO Scheme, Organic Standard (EU, NOP, JAS) for Coffee Farmer and Organic Exchange for Textile. Currently, he worked at Professional Certification Body and assigned to verify in Social aspect during this Assessment (ST2).

2.3 Assessment Methodology, Progress, and Site Visit

2.3.1 Assessment Dates

ST1/ August , 06-09, 2012

ST2/ September, 17-21, 2012


ASSESSMENT REPORT


2.3.2 Estimate of person days to implement assessment

ST1/

Number Auditors: 5 people Number of days for assessment at site: 4 days Number of working days for assessment at site: 20 days

ST2/ Number Auditors: 4 people Number of days for assessment at site : 5 days Number of working days for assessment at site: 20 days

2.3.3 Assessment Execution Details

ST1/

Stage-1 activities were carried out in order to assess the the efforts done by the company and whether the company has adhered to the fulfillment of the conditions in The Republic of Indonesia’s National Interpretation of the RSPO Principles and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008). The assessment was done using three methods: Method I was the document review, carried out in order to assess the fulfillment of the substance and variety of the documents required; Method II was the interview, carried out in order to obtain more detailed information and also cross check the information, and Method III was the field inspection, carried out in order to see the adequacy of the implementation in the field. Some suggestions for improvement as a result of Stage-1 were given by the MUTU auditors to the company and the information obtained was used as materials for verification in the following assessment stage. All the information obtained was recorded in PT. Mutuagung Lestari’s Check List and is the main appendix in the Assessment Results Report. The complete assessment process is as follows:

06 August 2012. The Team of Auditors traveled from Jakarta to Pangkalan Bun and immediately held an Opening Meeting in the Meeting Room at the PT. Citra Borneo Indah (CBI) Group Headquarters which was attended by the Chief Operational Officer, Executive Director, Financial Director, Regional Head, the Head of the Financial Department, the Heads of the Logistics, Legal, and Development Departments, the Head of R&D, the EHS, QMS, HRD, and Engineering Managers, and other related personnel. This was followed by the document review until late afternoon. After that, the Team traveled from PT. CBI’s Head Office to the location of PT. SSS’s plantation. 07 August 2012. The Team of Auditors continued the document review in relation to the legality, the documentation of best plantation practices, and the documentation of environmental and social management for the Sulung POM unit and its Supplier Plantations. 08 August 2012. The Team of Auditors visited the locations which had been selected based on the document review results. The Team was broken up into four:

Team I (Yudwi Wisnu Rahmanto) visited the POM and workshop;

Team II (Taufik Margani & Oktovianus Rusmin) visited the villages around the plantation and the HCV area;

Team III (Ibnu Satria Prabudi) visited the Estate, the slope, peat, and sand area management, agrochemical warehouse, hazardous waste warehouse, waste water treatment plant, Land Application, Empty bunch application, and Land Use Title boundary pole maintenance.

Team IV (Rudi Ramdani) visited the best practices activities (spraying, fertilizing, harvesting), road maintenance, erosion surveillance and fire control facilities and infrastructure.

09 August 2012 In the morning, the Team of Auditors compiled the results of the document and field visit assessments. The Team of Auditors also presented the temporary assessment results to PT. SSS’s management unit. The final assessment results were to be presented during the closing meeting at the PT. Citra Borneo Indah Group Head Quarters on 14 August 2012. The presentation of the temporary results was conducted at PT. SSS’s guest house, attended by the General Manager of Area I, the Sulung Estate Manager, the Kenambui Estate Manager, the Kondang Estate Manager, the POM Sulung Manager, the SHE Manager of PT. CBI Group and other related personnel who represent their respective fields. In the afternoon, the Team continued its journey to PT. KSA (Kalimantan Sawit Abadi) to conduct an audit based on the ISPO scheme.

ST2/ The activities in Stage-2 were done in order to assess the efforts made by the company and the company’s constancy in fulfilling the requirements of The Republic of Indonesia’s National Interpretation of the RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008).


ASSESSMENT REPORT


The assessment was done using three methods: Method I was the document review, carried out in order to assess the fulfillment of the substance and variety of the documents required; Method II was the interview, carried out in order to obtain more detailed information and also cross check the information, and Method III was the field inspection, carried out in order to see the adequacy of the implementation in the field. Some suggestions for improvement as a result of Stage-2 were given by the MUTU auditors to the company and the information obtained was used as materials for verification in the following assessment stage. All the information obtained was recorded in PT. Mutuagung Lestari’s Check List and is the main appendix in the Assessment Results Report. The complete assessment process is as follows:

17 September 2012. The Team of Auditors traveled from Jakarta to Pangkalan Bun and immediately held an Opening Meeting in the Meeting Room at the PT. Citra Borneo Indah (CBI) Group Headquarters which was attended by the Chief Operational Officer, Executive Director, Financial Director, Regional Head, the Head of the Financial Department, the Heads of the Logistics, Legal, and Development Departments, the Head of R&D, the EHS, QMS, HRD, and Engineering Managers, and other related personnel. This was followed by the document review until late afternoon. After that, the Team traveled from PT. CBI’s Headquarters to the location of PT. SSS’s plantation. 18 September 2012. The Team of Auditors continued the document review in relation to the legality, the documentation of best plantation practices, and the documentation of environmental and social management for the POM Sulung unit and its Supplier Plantations. Team IV (Yudwi Wisnu Rahmanto) conducted a stakeholder consultation to the related government agencies. 19 September 2012. The Team of Auditors visited the pre-determined locations. The Team was broken up into 2 smaller teams; Team I (Oktovianus Rusmin & Taufik Margani) visited the villages around the plantation, HCV area, the Estate, the slope, peat and sand area management, and checked the Land Use Title boundary poles. Team II (Ibnu Satria Prabudi & Yudwi Wisnu Rahmanto) visited the POM and workshop, best practices activities (spraying, fertilizing, harvesting), road maintenance, erosion surveillance, fire control facilities and infrastructure, agrochemical warehouse, hazardous waste warehouse, waste water treatment plant, Land Application, and EFB application. 20 September 2012 In the morning, the Team of Auditors carried out field visits and compiled assessment results. In the evening, the Team traveled back to the Head Office. 21 September 2012. In the morning, the Team of Auditors conducted the final verification of documents at the PT. Citra Borneo Indah Group Head Office and after that presented the findings in a closing meeting. In the afternoon, the Team of Auditors traveled back to Jakarta.

2.3.4. Assessment Sample Locations

ST 2 19 – 20 September 2012 1. PT. SSS’s Palm Oil Mill. Observations of the fresh fruit bunch (FFB) processing operational activities,

observations of the implementation and the facilities and infrastructure for OHS, the hazardous material warehouse, the hazardous waste material warehouse.

2. The Implementation of Occupational Health and Safety (OHS). Field observations of OHS implementation at each processing station, hazardous material warehouse, general warehouse, the Sulung POM workshop and PT. SSS’s Central Workshop. The objectives for this verification are the availability of fire control facilities (fire extinguishers, fire hydrants), First Aid Kits, the usage of PPE.

3. The Mill Liquid Waste Management. Field observations of the Waste Water Treatment Plant (WWTP) at Sulung POM’s waste water pond.

4. Land Use Title Boundary Poles. The verification of Land Use Title boundary poles in Block 2 Bravo, Kondang Estate. The Land Use Title boundary poles between companies (PT. SSS and PT. KSA) in Block 9 Charlie, Rungun Estate.

5. Land Use Title Boundary Poles Block 2, Afdeling Bravo, Kondang Estate and Block 9, Afdeling Charlie, Rungun Estate; Block 14 Afd. Hotel, Pulau Estate. Conducted observations of the presence and the maintenace of Land Use Title boundary poles, land conservation, erosion poles, empty bunches applications, domestic waste landfill and HCV area.

6. Kondang Estate hazardous waste warehouse. Conducted observations and interviewed the warehouse employee pertaining to the management of hazardous waste, the handling of hazardous waste material in case of an occupational accident and the hazardous waste scale.


ASSESSMENT REPORT


7. Sulung Estate Workshop/Diesel Tank. Conducted observations pertaining to the implementation of OHS and the handling of direct spillage to soil, (Warehouse): The visit to this location was focused on checking the fire control equipment provided on the Estate and also the local warehouse. The results of the checking showed a consistency with the records available and there had been improvements in the plantation fire control equipment as there is now one firefighting vehicle (equipped with the tank and pump and the operator).

8. Sulung Estate Fire Control Facility Warehouse. Conducted observations and inteviewed the fire fighters pertaining to the available fire control equipment.

9. Block 3 Afdeling Charlie, Sulung Estate. Conducted observations of the method used in spraying, the use of PPE and the OHS aspect of the workers involved in spraying, interviewed the workers about the wages, health care, and gender policies.

10. Block 1 Afdeling Alfa, Sulung Estate. Conducted observations pertaining to the methods employed in fertilizing, the use of PPE, and the OHS aspect of the workers, interviewed them about the wages, health care, and HPT activities.

11. Block 10 Afdeling Alfa, Sulung Estate. Conducted observations pertaining to the method employed in harvesting, HPT observations, the use of PPE, and the OHS aspect of the harvesters, interviewed them about the wages, health care and Labor Social Assurance.

12. Block 18 Afdeling Delta, Rangda Estate. Observations of the riparian management. 13. Block 5 Afdeling Bravo, Kenambui Estate. Observations of the Land Application management. 14. Block 23 Afdeling Hotel, Selangkun Estate. Observations of the empty bunch application on mineral

and sand areas in Block 9 Afdeling India. 15. Block 19, 22, 23 Afdeling Alfa, Kenambui Estate. Observations of the conservation area. 16. Afdeling India, Selangkun Estate. Observations of the peat land block location management. 17. Block 9 and Block 14, Afdeling Bravo, Sulung Estate. Conducted observations of the erosion poles

and interviews pertaining to erosion survellance and the efforts to curb the effects. 18. Block 15 and block 19, Afdeling Charli, Sulung Estate. Conducted observations of erosion poles and

interviews pertaining to the riparian management. 19. Rangda Polyclinic. Observations of the clinic facilities and a document review of the Routine Check-up

of PT. SSS workers in Rangda Estate. The observation showed that there is an adequate health facility and an adequate number of health workers for workers needing medical attention.

20. Type G2 Housing. Observations of the workers’ housing and other supporting facilities and an interview with one of the tenants. The results of both the observation and the interview showed that the housing and its facilities (clean water and lighting) are adequate.

21. PT. SSS’s Central Polyclinic. Observations of the clinic facilities and a document review of the Routine Check-up of PT. SSS’s workers. The results of the observation showed that the health facilities and number of physicians are adequate for any workers needing medical attention.

22. Rangda Village. Conducted an interview with one of the members of Farmers’ Group Sepakat Jaya pertaining to the Cooperative Credit Scheme program and the relationship between the company and the people around the village. From the interview it was discovered that there are ± 239 members of the scheme smallholders (Cooperative Credit Scheme) in this village and 100.2 ha of the 500 ha of land allocated for the farmers’ group have been planted with oil palms.

23. Kenambui Village: Interview with the Head of the Village about the CD/CSR programs that PT. SSS has carried out.

24. Sulung Village: Interview with the Village Government officials (the Head of General Affairs and the Vice Chairman of the Village Consultative Council (BPD) about the CD/CSR programs that PT. SSS has carried out.

25. Block 5 Afdeling Charlie, Sulung Estate. Conducted observations pertaining to the riparian management.

26. Rungun Estate: Field observations pertaining to soil conservation, erosion poles, boundary poles, the JJK application, the domestic waste landfill, and HCV area.


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2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 The Summary of the Public Consultation Process

See 3.6 the summary of issues arising from the public

2.4.2 The List of Stakeholders Contacted

Appendix 3

2.5 The Determination of the Date for the Next Visit

Surveillance-1 will be conducted 1 year after receiving the RSPO certificate.


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3.0. ASSESSMENT RESULTS 3.1. Summary of the RSPO Certification

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINSIP #1 COMMITMENT TO TRANSPARENCY

1.1 Oil palm growers and millers provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages & forms to allow for effective participation in decision making.

Records of information requests are available in the Correspondence Register in each Estate. For example: a request for information from the Plantation Agency of Kotawaringin Barat District, No. 525/861/99/KP/2012, dated 7 May 2012 about the Report on Fire Control Equipment Monitoring. The request was responded by the management of PT. Sawit Sumbermas Sarana via e-mail sent together with an attachment, the Report on Plantation and Field Fire Prevention and Control Facilities and Infrastructure on 29 May 2012. In the Procedure for Providing Information to Third Parties (SOP – LEGAL.GN-015), effective from 18 June 2012 (point 6.1), it is explained that the records of information requests must be store for one year before they can be destroyed.

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.

Based on the Procedure for Providing Information to Publics (SOP – LEGAL.GN-015), effective from 18 June 2012 (point 6.2 & 6.3), documents are categorized as Public Accessible Documents (Dokumen Akses Luas) and Limited Access Documents (Dokumen Akses Terbatas). Public Accessible Documents are environmental documents, OHS, Plantation SOPs, Labor and Social documents. Limited Access Documents are permits and legal documents, financial records, endangered animal range maps, company data, soil type maps, topographical maps, land use maps, and plasma fund usage. The company has records of information requests and information responses from other parties which are stored in each estate. According to the Procedure for Providing Information to Publics (SOP – LEGAL.GN-015) point 6.1, the records of information requests must be stored for one year before destroying.

Status: Compliance

PRINSIP #2 COMPLYING WITH APPLICABLE LAWS AND REGULATION.

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

PT. SSS has an Identification and Evaluation matrix 02/2012 revision as proof that there is a documented system pertaining to compliance to changes in regulations. Within the matrix, the number of the company’s fulfillments of OHS, environmental, and other regulations are recorded. The requirement objectives identified are, among others: Regulations, Chapters, Articles, Verses, Regulation Descriptions, Implementations, Fulfillment Parameters (General Requirements, Reportation, Permits, Equipment Certification, Personnel Certification, Physical Facilities), Current Fulfillment (Status and Explanation), Follow-Up, Person in Charge. Example: Government Regulation 26 year 2008 pertaining to National Spatial Planning, Article 1, Verse 24. Implementation: Implemented. Fulfillment Parameter: General Requirements, Permits, Routine Examinations, Threshold Values. Current Fulfillment Status: Fulfilled. Explanation: EHS 027 Riparian Management. Occupational Environment, Safety and Health Management System Procedure (LMK3). Doc: No SOP-EHS.GN-003, Revision: 02, Effective from: 10 April 2012. This document contains: 1. Aims, 2. Scope, 3. References, 4. Definitions, 5. Basic Policy, 6. Procedure Details, 7. Appendices. In Procedure Detail 6.1.2 it is stated that the collections and re-identifications or new identifications may be conducted through visits or through e-mail, letter/fax communications, and/or trainings, conducted


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twice a year, in April and October. The responsibility of renewing information about regulations is held by the Legal and EHS Department. Written proof of the adjustments is also found in the LOHS Regulation Identification and Evaluation Document number: F-EHS.GN-002.R1. Written proof for the documented system is fulfilled in the Occupational Environment, Safety, and Health Regulation List (LMK3) Document number: F-EHS.GN-019.R0. Effective from: 10 April 2012. There is a list of regulations pertaining to the environment which has revisited on 1 May 2012 and has been passed by the Environmental Body of the Kotawaringin Barat District Government. The evaluation mechanism is stated in the Occupational Environment, Safety and Health Management System Procedure (LMK3). Doc. Number: SOP-EHS.GN-003, part 6.2 about Evaluation and 6.4 about Routine Evaluation and the Follow-Up. 6.2.2 Standards and regulations established are included in the standard identification and implemented regulations list. 6.4.2 Conducting routine evaluations of the related standards and regulations which have been identified in order to ensure their conformance to the Report of Health and Safety Work aspect every four months.

Status: Compliance

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

PT. SSS’s land acquisition legal documents are is Location Permits. Total of area is 20.400 Ha, there is: - Head of Kotawaringin Barat District’s Decree number 144.480.42/2001 (12,000 Ha) have been change based on

Kotawaringin Barat District’s Decree number 550.480.42/BPN/VII/2003 (12,700 Ha) - Head of Kotawaringin Barat District’s Decree number 228.480.42/BPN/III/2004 (7,500 Ha) - Decree number 616.480.42/BPN/III/2003 (200 Ha)

Plantation Business Permits: the Head of Kotawaringin Barat District’s Decree number EKBANG/525.26/401/X/2002 (12,000 Ha); the Head of Kotawaringin Barat District’s Decree number EKBANG/525.26/18./2004 (POM capacity increase to 60 Tons FFB/hour); the Head of Kotawaringin Barat District’s Decree number EKBANG/525.26/301/VIII/2003 (200 Ha); the Head of Kotawaringin Barat District’s Decree number EKBANG/525.26/113/IV/2004 (7,500 Ha). The total acreage according to the initial Plantation Business Permit is 19,700 Ha. There are new Plantation Business Permits, the Head of Kotawaringin Barat District’s Decree number 525/209/EK (12,342.49 Ha) and the Head of Kotawaringin Barat District’s Decree number 525/210/EK (7,500 Ha) making the total acreage according to the new permits 19,842.49 Ha. Land Use Title: Land Use Title Certificate number 30 Natai Raya Village (198.93 Ha); Land Use Title Certificate number 36 Sulung Kenambui Village (12,342.49 Ha); Land Use Title Certificate number 47 Sulung Kenambui Village (4,443.41 Ha), the total acreage of the Land Use Title is 16,984.83 Ha. Observations on 14 December 2012 The company has shown progress in their legality. It now has the Head of Kotawaringin Barat District’s Decree number 522/98/Pem/2012, 29 November 2012 to Central Kalimantan’s Governor pertaining to the recommendation for PT. Sawit Sumbermas Sarana’s Area Exchange. Also available is the Forest Area Exchange Location Map under the name of. PT. SSS in Kotawaringin Barat District, Central Kalimantan Province. The company also showed the most recent improvement, the most current map according to the statement area change (19,842.49 Ha) and Business Plan – Revised year 2012 – 2025. The results of the boundary pole field check show that there have been adjustments to conform to the area change statement. Condition: Closed (having fulfilled major indicator 2.2.1) The company has a SOP pertaining to the Maintenance of Plantation Legal Boundary Poles (SOP-EHS.GN-035) dated 18 June 2012. In the SOP, the checking, maintenance and identification of Boundary Poles are to be done every 6 months (semester). PT. SSS has identified all Land Use Title Boundary Poles and have distributed them to their respective estates to be identified and maintained. For example, in Kondang Estate there are 3 Land Use Title boundary poles, the SSS 102, SSS 104 and SSS 001 boundary poles, dated 13 September 2012 and they have been maintained . In the SIA docment (September 2012) compiled by Sonokeling Akreditas Nusantara, there were no Social and Land Conflicts identified. The company has enough proof of the land acquisition compensation process which has been carrried out in several locations. The proof of the process includes the negotiation records, the compensation proposal verification records, the land checking records, the payment plan realization recommendation letter, the land ownership statements with the


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voundaries and payment receipts. (2.2.5) The company has a Land Conflict Resolving Procedure (SOP-LEGAL.GN-014), effective from 18 June 2012. Handling claims that arise from other parties in relation to the oil palm plantation managed by companies within the Citra Borneo Indah Group is explained in the Procedure Details (Point 6) and Flow Process.

Status: Compliance

2.3 Use of 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 the Final HCV and SIA Report (September 2012) made by Sonokeling Akreditas Nusantara, there is no HCV6 attributes or potentials pertaining to tribal/traditional rights have been identified in PT. SSS’s area.

Status: Compliance

PRINSIP #3 COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL FEASIBILITY

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

Revised Business Plan documents - Year 2012 – 2025 (CBI Group) are available. The Business Plan documents explain various topics, i.e. the acreage of the company area (each PT) according to the area changes in the most statement, plant projection, production estimates (FFB, CPO, PK & PKO), maintenance cost, harvesting and collection cost, etc. This document is also the annual plans for each company (PT) which is described per year (2012 – 2025). A recapitulation of the company development costs; the Acreage per Region; the Acreage per Estate; the Development Stages per Business Unit; the Development Stages per Region; the Plant Projection; the FFB, CPO, PK, PKO Production Estimate; the Business Unit Development Cost; the Regional Development Cost; the Harvesting and Collection Costs; the TM Maintenance Cost; the TB, TBM1-TBM3 Maintenance Costs; Infrastructure Development; Infrastructure Needs; Infrastructure Development Cost; the Processing and Shipping Costs; the General Overhead; the Plantation Capital Expenditure Kebun and POM are also included. Based on the 2012-2025 Business Plan, PT. SSS has no replanting programs in the near future. This is because the plants are still 11 years old and the oldest plants were planted in 2001. The replanting is planned for 2026.

Status: Compliance

PRINSIP #4 USE OF APPROPRIATE BEST PRACTICES BY GROWER AND MILLERS

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

The company has a quality management system procedure called the Controlled Document Master List. This procedure was designed by the Head of the Plantation Department, checked by the Management Representative, approved by the Plantation CEO, and implemented by the Executive Director. The procedure covers: the Land Clearing Procedure (SOP-KBN.GN-001), the Nursery Procedure (SOP-KBN.GN-002), the oil palm planting procedure (SOP-KBN.GN-003), the Oil Palm Planting on Peat Land Procedure Penanaman (SOP-KBN.GN-011), the oil palm maintenance procedure (SOP-KBN.GN-004), the oil palm harvesting procedure (SOP-KBN.GN-005), the Oil Palm Administrative Procedure (SOP-KBN.GN-006), the fertilizer storing procedure (SOP-KBN.GN-007), the Oil Palm Plant Spraying Procedure (SOP-KBN.GN-008), the Oil Palm Plant Pest and Disease Control Procedure (SOP-KBN.GN-009), the Oil Palm Fertilizing Procedure (SOP-KBN.GN-010). As for the POM, the procedures are: the FFB Receiving Procedure (SOP-POM.GN-003) Rev.01, effective from 1 April 2012; the FFB Processing Procedure (SOP-POM.GN-004) Rev.02, effective from 1 April 2012; Palm Kernel Processing Procedure (SOP-POM.GN-005) Rev.00, effective from 1 September 2011; CPO Processing Procedure (SOP-POM.GN-006) Rev. 02, effective from 1 April 2012. The operational checking and monitoring for both the plantation and the POM are conducted by internal audits (twice a year) and Plantation Advisory Performance (every two years). In addition, daily, weekly, and monthly monitorings are conducted consistently by the company. The records of the company operational activities are written in the progress management report (monthly report) which is compulsory. In this report, all the activities are monitored according to the budget planning and realization. Example: the


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August 2012 covered the Areal statement, the Plant Condition Report, the Rainfall Report, the Production Report, the Fertilizing Realization Report, the Material Usage Report, the Financial Report, the Maintenance Report, etc.

Status: Compliance

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

The company has soil analysis documents for 2010 in the form of a Soil Analysis Report by SUMBIO-BLRS ANALYTICAL LABORATORY. The soil analysis survey is done annually for 5 years on 20% of the total area managed. The leaf analysis is done annually with a sampling period of 6th to 10th month every year. All of these activities are carried out by the R&D Department. The foliar analysis results (leaf sampling unit) as of 13 September 2012 at Selangkun Estate are used for fertilizing recommendation calculations for the following year. Meanwhile, the company’s effort to maintain and increase soil fertility based on the leaf and soil analyses results are, among others: fertilization according to the recommendations, the application of empty fruit branches on sandy areas (40-50 tons/Ha), the application of liquid waste from processing (Land Application), planting Legume Cover Crops (Mucuna bracteata) and the construction of silt pits. Example: the implementation of empty fruit branch application at Selangkun Estate in August 2012 at Block H21 was 1,485.6 tons (30.95 Ha) or 48 tons /Ha.

Status: Compliance

4.3 Practices minimise and control erosion and degradation of soils.

The types of soil existing in PT. SSS’s plantation are mineral, sand, and peat and a classification map of the slope of the land (topography) is available. In the marginal soil category, the company owns 19,850 Ha (peat) and 453 Ha (sand), with a slope variation of 0-8% (3,853.93 Ha); 8-15% (8,601.36 Ha); 15-25% (2,946.87 Ha); 25-40% (1,383.73 Ha) [source: the Final Report of HCV Identification by Sonokeling Akreditas Nusantara – September 2012 and Kalimantan Landsystem Map]. As planting management strategy for slopes, PT. SSS has a soil and water conservation strategy (SOP-EHS.GN-033) which includes the steps in managing slopes such as legume planting, JJK application, palm midrib positioning, individual terrace making, terrace fort, silt pit, and culvert construction. An example of the application of these strategies could be seen during the field visit to Rungun Estate Block D10 in order to measure the level of erosion at a slope class of 15-25% in which the treatment was planting Legume Cover Crops of the Mucuna bracteata species. PT. SSS has also conducted road maintenance in order to control erosion and soil degradation. This can be seen in the monthly report of August 2012 about road maintenance. The types of road maintenance carried out were laterite layering and road fortifications (timbun jalan) of all access roads all over the plantation area, Main Roads and Collection Roads. The expenses for road maintenance were adjusted to the target budget and other factors. Specifiically for peat land management, in accordanced to the Soil and Water Conservation Procedure (SOP-EHS.GN-033), the steps for managing the peat land were done by constructing a drainage system to drain any excess water, maintaining the water table at 0.5-0.7 m from the surface, administering enough P and K, microminerals Cu, Mo, Zn and the scattering of fruit bunch ash or chalk in the planting hole. As for the water surface level surveillance, the Culvert System Water Management in marshes and peat land (SOP-EHS.GN-031) explains that the method for monitoring the water level uses a phiscal meter and the insallation of a peat land pole subsidence measuring equipment (piezometer). The results of the peat land soil physical characteristics monitoring at Rungun Estate Block D4 and D19 as of 10 April 2012 show that the average subsidence is 2 cm. The water level at Block E6 Rungun Estate’s water gate was 60 cm from surface level. In accordance to the water and air conservation procedure (SOP-EHS.GN-033), the steps in managing marginal and critical soil are: administering mulch, administering clay and organic materials, planting LCC (for sandy soil); administering chalk, weed control, fertilizing (acidic suphate soil), monitoring the erosion rate by plating erosion monitoring poles on 80 and 150

slopes.

Status: Compliance

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

In order to maintain the water flow and wetlands incoirporated in the river riparian area, PT. SSS has implemented maintenance efforts in the form of setting aside a buffer zone such as a riparian boundary pole with a radius of 50-100 meters alongside the river bank. In addition, there is a policy for non-chemical treatments or the prohibition of agro-chemicals for oil


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palms around the water source. The field visit to the riparian area of Karang Hijau River (Block C14 and C17 Kenambui Estate) revealed a river water debit monitoring device in the form of a water surface measuring stick and natural secondary vegetation (bushes) that were let to grow as a commitment to water flow conservation. The company has carrried out water management programs as can be seen in the Water Treatment SOP. The company utilizes the water from the reservoir (which originates from Simpang Kanan River) as raw material for the mill processes and also domestic use. The water is treated in the WTP (Water Treatment Plant) then distributed to the mill processing line and also domestic line. Besides that, the company has routinely had the river water quality checked (as an appendix in the Environmental Management Plan/Environmental Monitoring Plan implementation report). The rivers here are the ones identified in PT. SSS’s EIA study documents, i.e. Kanan RIver, Arut River, Simpang Kanan River, Dobi Lake. The water analyses were doen by the Regional Health Laboratory, Kotawaringin Barat District Government Health Agency, Central Kalimantan. The BOD of the liquid waste monitoring is done regularly by the company and the records of the monitoring are included in the Waste Water Management Report which is submitted every 3 months to the associated agency, the Environmental Body of the Kotawaringin Barat District. From the monitoring results of the January – August 2012 period, there were no parameters above the value threshold; the average BOD was 1,949.5 mg/Liter (Threshold Value 5,000 mg/Liter) and the average pH 7.5 (Threshold Value pH 6 – 9). As for the waterr usage for processing in Sulung POM, monitoring data from August 2012 is available and it shows a 1.53 m3/ton FFB processed efficiency. The result still exceeded the target budget, 1.50 m3/ton FFB, due to the R&D housing and Training Center development.

Status: Compliance

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

In pest and plant disease control, PT. SSS has several procedures, i.e.: the Early Warning System Procedure for Leaf Caterpillars (SOP-RND.GN-012); Hog Pest Control System Procedure (SOP-RND.GN-013); Porcupine Pest Control Procedure (SOP-RND.GN-014); Marasmius Disease Control System Procedure (SOP-RND.GN-015); Oryctes R Pest Control System Procedure (SOP-RND.GN-016); Tirathaba Pest Control System Procedure (SOP-RND.GN-018); Nursery Pest and Disease Control System Procedure (SOP-RND.GN-020); Spear Base Root Disease Control System Procedure (SOP-RND.GN-022). Aside from those above, the company, through its R&D Department, is also breeding owls (Tyto alba). The records of the Integrated Pest Management are included in the Monthly Plant Pest and Disease Report document. For example: in July 2012: an infestation of asistic rhinoceros beetles (Oryctes rhinoceros): 2.28%, termites: 0.06%, Spear Base Rot: 0.02%; termites: Afdeling Echo Block 12 (23.53 ha), level of infestation 0.03%, 1 tree is controlled with 12.5 ml regent. Block 6 (22.4 ha), level of infestation 0.07%, tree 1 is controlled with 12.5% reagent. Block 15 (33.1 ha), level of infestation 0.12%, 6 trees with 75 ml reagent. Block 16 (23.74 ha), level of infestation 0.09%, 3 trees controlled with 37.5 ml regent. The company has shown the documents containing the usage of chemical material which includes the size of the area controlled, the brand name, the active ingredients, the units, the materials (up to July 2012), the total amount used, the usage (l/ha) and the active ingredients contained (l/ha).

Status: Compliance

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 categorised as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.

The company is able to produce a list of chemicals used. Based on the chemical usage list document, it can be seen that all the chemicals used are registered and have permits from the required agencies. Example: Insecticides (Cypermax 100 EC: Active ingredient: Cypermenthrin: Registtration number: RI. 2060/4-2009/T); Herbicide (Supremo 480 SL: Active ingredient: Isopropilamina glifosat; Registration number: RI. 0101011977298); Fungicide (Cozeb 80 WP; Active ingredient: Mankozeb: Registration number: RI. 1876/7-2008/T); Rodenticide (Xilaw 0,005 BB; Active ingredient: Brodifacoum; Registration number: RI. 3011/11-2007/T). The agrochemical use records contain information about the area where they were applied, the acreage of the applied area,


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the application rotation, the number of workers involved, the type of pesticide used and the amount used. For example, at Afdeling Delta, Rangda Estate, the type of activity: chemical circles were made in Block 24 (Afdeling 03) covering 31.25 ha with a twice a year application rotation, it needed 15 man-days, using 2 liters of the pesticide Supretox and the trend used is 87.5 gr. The company could show the target and dosage of the agrochemicals used in accordance to the recommendation on the label. For example: the usage of Supremo at Sulung Estate Afdeling E Block 5 (31.65 Ha) to eradicate the weed Imperata cylindrica was 3 liters (in line woth the technical recommendation from the supplier). The sprayer operator had been trained for the procedure of proper spraying and how to handle any occupational accidents. The training techniques included the introduction of and a hands-on training on the usage of insecticides and pesticides, the LD 50 toxicity. This training was conducted on 15 March 2012 at the SSS Training and Development Department and was attended by 11 supervisors. Another training was conducted by Kotawaringin Barat’s KOMPES (Pesticide Commission) in September 2012 and was certified. The Head of the Kotawaringin Barat District issued decree number 660/II/BLH-III.1/IX/2012 pertaining to a Hazardous Material Temporary Storage Permit for PT. SSS on 18 September 2012. The permit was issued for three locations, Sulung POM Central Workshop, Kondang Estate and Kenambui Estate.

PT. SSS has conducted monitoring of the use of limited pesticides and is committed to sigrificantly reducing the use of active

ingredients which are listed in categories 1A and 1B. The proof of the reduction is shown in Rungun Estate in January to

August of 2011 and 2012 when it had reduced the use of Supretox (Paraquat) by 813.28 liters and Klerat (Brodifacum) by 552

kgs.The paraquat used on January to August 2011 period are 2,213 litres and on January to August 2012 period are 1,400

litres. Whereas the brodifacum used on January to August 2011 period are 1,862 kgs and on January to August 2012 period

are 1,310 kgs. Based on the pesticide management SOP point 6.5.1: workers must undergo a routine annual check-up and a specific check-up at least once every 6 months. The company has conducted regular health check-ups for the sprayer operators every 6 months at the plantation polyclinic. As an example: the chemist/plant pest and disease worker in Sulung Estate Afdeling Delta named Ngatini, 33 years old, had underwent the examination on 19 – 20 June 2012 and was declared healthy. The company also has a policy prohibiting pregnant of nursing mothers from working on jobs that require contact with chemicals such as spraying and fertlizing. This policy is stated in SOP – EHS.GN – 019 point 6.2.2.k: pregnant and nursing women are prohibited from working. Based on the field visit to sprayer operators at Block 3 Afdeling Charlie, Sulung Estate, it was found that there were no pregnant sprayer operators.

Status: Compliance

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

There are some policy documents pertaining to the OHS, i.e.: Occupational Environment, Safety and Health Policy issued by the Executive Director of PT. Citra Borneo Indah dated 1 May 2011; Environment, Health & Safety Plan (HIRAC), effective from 10 April 2011 for all plantation job fields; Disease Outbreak Emergency First Aid Drill Report , dated 12 May 2012; the Attendance List for the Socialization of the Use of PPE for Harvest Workers at Kondang Estate on 1 August 2012, attended by 27 people. In the LK3 Management System Procedure (SOP-EHS.GN-005) part 6, Procedure Details, The persons in charge for the LK3 program implementation are: the BoD, the Head of Region, the Manager, the EHS Department, all employees, the Guiding Committee of Occupational Safety and Health. For each estate there is an official of the Guiding Committee of Occupational Safety and Health responsible for the implementation of the LK3. Social Assurance is stated in the companyregulations in Chapter IX about Social and Welfare Assurance, article 50 pertaining to Labor Social Assurance, verse 1: in Accordance to Statute number 3 year 1992 pertaining to labor social assurance, all employees under the age of 55 must be registered in the Labor Social Assurance program. The company already has an employee heatlh check-up SOP (SOP – POLI.GN – 001, effective from 1 July 2012) which encompasses regular health check-ups and special check-ups for chemists which are conducted every 6 months. Example: the General Medical Check (high risk) – Sulung POM document for noise, dated 5 September 2012, the number of


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employees examined was 22 people; resulting in 19 normal and 3 having hearing problems (they have been moved to another position). The risk analysis for various jobs is available in the F-EHS.GN-001.R2 document, Doc. Type: Form, Revision: 02, Effective Date: 10 April 2012. The document contains the EHS Plan in the form of a detailed matrix of risk analysis for each job. Some trainings have been conducted by the company in an effort to support the occupational health and safety program. This is line with the internal memo about the Limited Pesticide Technical Training, Memo Number 140/CBI-TND/VI/2012, dated 20 June 2012. The training was held on 26-27 June 2012; the trainer from PT. Dharma Guna Wibawa. The participants were some supervisors and sprayer supervisors from each estate. In ensuring the continuation of the plantation and mill operational activities, the company has a emergency response organizational structure procedure (SOP-EHS.GN-025) Rev.01, effective from 10 April 2012 and an ISO Emergency Response Structure number 01 which consists of the PT. SSS- Sulung POM Guiding Committee of Occupational Safety and Health Organizational Structure, the Emergency Response Job Description, Fire Susceptibility/Potential Map together with the chart for the locations of the fire extinguishers and hydrants, and Health and Safety induction. In order to fulfill First Aid and supporting equipment requirements, there are First Aid Kits in 6 locations in Sulung POM; one unit each. They are: the security guard station, the Office, the Processing Office, the Maintenance Office, the hazardous material warehouse, the chemical warehouse. The fire control facilities in the form of hydrants and fire extinguishers in the mill are in good condition and the evacuation pathways are charted. Personnel have been trained for First Aid in both plantation and mill levels. The documented proof for the elucidation are: the First Aid elucidation attendance list, the Occupation Ergonomy, the Snake Bite Handling. The elucidation was held in Sulung POM on 12 March 2012 for mill and estate employees; attended by 32 people. The attendance list for First Aid, Occupational Ergonomy, Industrial Hygiene elucidation. It was held in Kondang Elementary School on 15 March 2012 for estate employees, attended by 37 people. For reviewing occupational accidents incidents, PT. SSS has incident report which is compiled by each plantation and mill unit. The report explains the occupational accident data and occupational accident evaluation every month to the Environment Safety and Health (EHS) Departement and Regional Head.

Status: Compliance

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

There are 2 types of Training Programs for employees: 1) Trainings which are conducted by Citra Borneo Indah’s Human Development Department for the full-time employees of each unit; 2) Trainings which are conducted by the Estate for part-time employees (in relation to their respective technical fields, for example, for plant maintenance workers, harvesters, and adminsitration workers at the afdeling level). In addition, there is PT. CBI’s Training Center Program Plans for 2012 which covers: Soft Skill (In House Training), Vision, Misision and Value System; Certification Training; Technical Training; External Seminars and Management Training Incidental/Annual Program. The records of these training were written in the January-June 2012 Training Execution Recapitulation by Citra Borneo Indah Group’s Human Development Department. An example of the record of the most recent training conducted by PT. CBI is the Limited Pesticide Application Training on 13 September 2012. In selecting trained contractors, PT. SSS has Job Contracts. In Article 5 verse 1, the contract mentions: a contractor with > 15 employees must have a Safety Officer who is responsible for the employees’ compliance to the Environmental and OHS regulations in effect in performing their jobs. As for contractors with < 15 employees, the contractor Officer/Leader acts as the Safety Officer who is responsible for the employees’ compliance to the Environmental and OHS regulations in effect in performing their jobs.

Status: Compliance


ASSESSMENT REPORT


PRINSIP #5 ENVIROMENTAL RESPONSIBILITY AND NATURAL RESOURCES AND BIODIVERSITY.

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

PT. SSS has environmental impact assessment documents in the form of EIA (Environmental Impact Analysis) documents which consist of Terms of Reference of EIA (KA-ANDAL), EIA, Executive Summary (RE), Environmental Management Plan and Environmental Monitoring Plan documents. The EIA document has received acknowledgement from the Head of Kotawaringin Barat District through decree number 11 year 2006 pertaining to the Environmental Appropriateness of PT. Sawit Sumbermas Sarana’s Oil Palm Plantation and Mill Development which covers an area of 19.842,49 Ha and has a Palm Oil Mill with a 90 Ton FFB/hour capacity, dated 3 August 2006. The Environmental Management Plan/Environmental Monitoring Plan report for every period is regularly submitted by the company to the Environment Body of Kotawaringin Barat District. In accordance to the plantation development plan in the 2012-2025 Business Plan, PT. SSS will develop an additional oil palm processing unit (POM) in Rangda Village with a 90 ton FFB/hour capacity. Because of this development, the company has Environmental Management Efforts/Environmental Monitoring Efforts documents pertaining to the POM development recommendations issued by the Environment Body of Kotawaringin Barat District number 660/436/BLH.II/VIII/2011 issued on 15 August 2011. In relation to the routine reports of the water quality parameters to concerned agencies, PT. SSS has made revisions of the Environmental Management Efforts/Environmental Monitoring Efforts in which the Class IV water quality is changed to Class II as of 4 September 2012; and the results of the analysis show compliance to the environmental value thresholds.

Status: Compliance

5.2 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.

PT. SSS has conducted High Conservation Value Areas (HCV) identification activities which were carried out by Sonokeling Akreditas Nusantara in August 2012. The final identification report was avaiilable per September 2012. The total acreage of the HCV area is 1,638.46 Ha or approximately 8.26 % of the total mangement unit area. The HCV Areas identified were: HCV1 (HCV1.1; HCV1.2; HCV1.3; HCV1.4), HCV2.3, HCV4 (HCV4.1; HCV4.2) and HCV5. There are species which are endangered and protected according to the IUCN Redlist, CITES and Government Regulation number 7 year 1999. There are 8 species of plantlife (7 species from the Dipterocarpaceae family and 1 species from the Lauraceae family). As for the animals, there are birds (10 species), mammals (14 species), and reptiles (5 species). The HCV management recommendations given by the consultant in order to ensure the protection of all HCV attibutes are: 1) The compilation of an important habitat management document for the short, medium, and long term by first collecting basic data/information from the population survey; 2) Reinstating the HCV areas through the board of directors ratification on activities of area determination, dissemination to stakeholders, boundary management, and information board installation; 3) Delineation of the degraded area. The steps to protect the protected species based on the HCV identification have been formulated in the form of a matrix for each HCV to protect RTE species and their habitats (PT. SSS’s High Conservation Value Areas management and monitoring table, September 2012) are included in activities in preventing illlegal activities involving RTE species which are stated in the HCV Area Management Procedure part 6.2, Protecting, Safeguarding, and Patroling. There are publication media available in the form of posters of the protected species, warning notice-boards, lists of the Folra and Fauna found on PT. SSS land, and proof of socialization efforts to the village inhabitants the around the plantation to introduce them to biodiversity and the protected areas. In addition, there are 7 special officers who manage the HCV Areas as stated in PT. CBI’s Board of Directors’ Decree number 0077/DIR-SK/CBI-IN/IX/2012.

Status: Compliance

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

An initial effort made by the company to identify the sources of waste and pollution was by compiling a waste management procedure, i.e. hazardous waste material management (SOP – EHS.GN – 016), organic and inorganic waste management (SOP – EHS.GN – 030), waste material management in POMs (SOP – POM.GN – 007), pesticide management (SOP –


ASSESSMENT REPORT


EHS.GN – 019). There is also a monitoring and environmental measuring matrix which explains the sources of waste materials and the pollution caused by both plantation and POM activities. The management of PT. SSS’ waste material is well-documented and well-implemented. The organic and inorganic waste management mechanism, the empty pesticide container disposal, the emission monitoring and the waste water monitoring are forms of implementation found all over the estate and POM. In managing hazardous waste materials, PT. SSS has a hazardous waste material management procedure (SOP – EHS.GN – 016) and a Temporary Hazardous Waste Storage Permit from the local Environment Body (number 66/289/BLH-III/X/2010). All the records of the hazardous waste material and medical waste handlings are well-documented, including the manifests for shipping the hazardous waste material to the licenced collector, PT. Maju Asri Jaya Utama. In managing the waste produced by oil palm processing in Sulung POM, PT. SSS examines samples of the waste water both in the Waste Water Treatment Plant (WWTP) and in the Land Application and in the control well as a comparison for pollution control. As for solid waste as a result of the processing, it is reused as additional fertilizers (empty fruit bunches) and boiler fuel (the fibre and shell).

Status: Compliance

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

PT. SSS could show the records and calculations for Sulung POM’s energy effficiency analysis in the form of fibre and shell. Sulung POM’s fibre and shell yields to FFB are 13% (fiber) and 5% (shell). The company’s monitoring records for energy use for the mill’s operational needs and the employee housing near the mill’s electricity supply are in the form of fossil fuel (diesel) and renewable fuel (fibre, shell) use efficiency calculations which are made by comparing the usage (realization) to the pre-determined budget.

Status: Compliance

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.

The company has the Citra Borneo Indah Group’s Oil Palm Plantation SOP Chapter VI document which was compiled by CBI Group’s Plantation Department in May 2009. In this document, it is explained that one of their policies for land preparation and replanting methods was Zero Burning. The zero burning policy is implemented by socializations in the form of field fire hazard warning signs in some planting blocks. Other documentation records are, for example, the Job Contract with the contractor who carried out the land clearing activities in Rangda Estate (number 221/PP/SSS.RDE-DD/IX/2011 tanggal 15/09/2011). The Plantation Brush Fire Control Procedure (document nuber: SOP-EHS.GN-013) contains the mechanism and procedure of fire prevention, the fire control, and brush fire control facility/infrastructure maintenance. Also included are the emergency response organizational structure and the proof of training. Records for emergency response training in Kondang Estate held on 5 May 2012 are available. The training was attended by the Chief Assistant (Askep), Assistants, and Supervisors. In addition, there is the July-August 2012 period Field Fire Monitoring (document number: F-EHS.GN-032.R0) which had been done daily by the staff and supervisors in the morning and by special workers in the afternoon. Field fire facility and infrastructure data is available in the Number and Types of Fire Extinguishing Equipment List document in each estate and mill. The equipment is in good and proper condition. Field observations in Sulung Estate showed that there are lists of field fire control equipment and the checking (equipment condition) and are in line with the equipment’s ready-to-use status. For example, 1 unit 3000 lt portable tank and a 35 PK pump; fire extinguishers checked.

Status: Compliance

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

The company has identified Sulung POM’s pollution and emission sources, the generator, boiler, and loading ramp. In its effort to reduce pollution, PT. SSS conducts emission quality surveillance by checking air ambiance at the pre-determined surveillance points. The results of this activity are recorded in the Environmental Management Plan/Environmental Monitoring Plan report and submitted to the local Environment Body every semester. As another form of its effort to reduce pollution and emissions, the company has implemented preventive maintenance in the form of engine care and engine break-down prevention at Sulung POM. The use of diesel fuel for turbine operation is also


ASSESSMENT REPORT


being reduced by maximizing the use of fibre and shell as boiler fuel. For liquid waste monitoring and management methodology, Sulung POM has a Waste Water Treatment Plant (WWTP) which consists of 11 application ponds. Effluent monitoring is done daily by checking the mill’s waste water BOD and a monthly checking by the Regional Health Laboratory, Health Agency, Kotawaringin Barat District Government.

Status: Compliance

PRINSIP #6 RESPONSIBLE CONSIDERATION OF EMPLOYEES AND INDIVIDUALS AND COMMUNITIES AFFECTED BY GROWERS 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 impacts are made, implemented and monitored to demonstrate continuous improvement.

The 2006 Environmental Impact Analysis document is available for the Development of PT. Sumber Sawitmas Sarana’ Oil Palm Plantation and Processing Mill; area acreage = 19,842.49 Ha, Planned Palm Oil Mill Capacity = 90 ton FFB/hour (Head of Kotawaringin Barat District’s Decree number 11 year 2006, dated 3 August 2006). In this document, the positive and negative impacts on the environment and the society are listed, among others:

A. The Construction stage: 1) The Plantation Road Construction (Worker Employment, Heavy Equipment Mobilization, Land Clearing, Plantation Road Construction, Drainage Network Construction, Cover Crops Planting, Nursery, Land Preparation, Oil Plam Planting, Immature Plant Maintenance) 2) Mill Construction (Land Clearing, Equipment Mobilization and Installation, WWTP Construction, Infrastructure and Supporting Network Development)

B. The Operational Stage: 1) Mature Plant Maintenance (Plant Pest/Disease and Weed Control); 2) Mill Operations (FFB Transportation, CPO Processing, Waste Material Management, CPO Transportation).

Also available is an appendix which consists of suggestions from various parties, i.e. related agencies and heads of villages/community representatives from the villages surrounding the plantation when they were discussing PT. Sawit Sumbermas Sarana’s Oil Palm Plantation and Palm Oil Mill Development Environmental Impact Analysis and Environmental Management Plan/Environmental Monitoring Plan document draft.

Records of the social impact management and monitoring plan are presented in the Environmental Management Plan/Environmental Monitoring Plan which is submitted every 6 months to the related agencies. In addition to this, in the report of the Social Impact Assessment conducted by a Sonokeling Akreditas Nusantara consultant (September 2012), there is a framework in the form of a social management recommendation which is used as the managerial foundation to determine the direction of the policies in social activites.

In PT. Sarana Sumbermas Sarana’s Environmental Management Efforts/Environmental Monitoring Efforts 2011 documents, there is a plan to add another Palm Oil Mill in Rangda Village, South Arut Sub-district, Kotawaringin Barat District with a capacity of 90 Tons FFB/hour. The recommendation was from the Environment Body of Kotawaringin Barat District number 660/436/BLH.II/VIII/2011 dated 15 August 2011.

All the reports of PT. SSS’s implementation of the Environmental Management Plan/Environmental Monitoring Plan which were submitted to the Environment Body of West Koatawringin District are well-documented and up-to-date.

The special interest placed on the smallholder scheme is discussed in detailed in the Social Impact Assessment report made by a Sonokeling Akreditas Nusantara consultant in September 2012. In this document, SSS is recommended to conduct guidance and socialization. This has been done by the organization, for example about oil palm cultivation so that they could produce good quality FFB (interviews with Rangda Village inhabitants who are smallholder members) and rewarding good quality FFB received from the smallholder schemes with incentives.

Status: Compliance

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.


ASSESSMENT REPORT


There is a Community Communication and Consultation Mechanism Procedure (SOP-LEGAL.GN.-013) and records of communication that has been carried out. PT. SSS also has a list of stakeholders in each estate in order to aid the communication and consultation process. The stakeholders are: related agencies (Regional Planning and Development Board, Natural Resources Conservation Agency, Forestry Service); the Head of the Sub-district, the Heads of the Villages (Kenambui, Rangda & Rungun); community elders, (12 people); NGOs (2 people); locals (10 people). In communicating with the community, there are records and responses to the neighboring community’s aspiration. Example: the Proposal for Heavy Equipment from the Mekar Mulya Village for road maintenance (Letter number 114.4/157/MM/IV/Pem.2012, dated 15 May 2012). The aspiration has been responded to with a disposition of an approval for the request for heavy equipment for Mekar Mulya Village dated 18 May 2012 and the records of the realization in the form of the Contractor Fee Detailing List to the heavy equipment operator by the name (Operator B Loader 08), dated 31 May 2012. Based on the Community Communication and Consultation Mechanism Procedure (SOP-LEGAL.GN.-013), the Estate Manager is responsible for receiving and documenting complaints from the community and coordinating with the Community Development Officer (CDO) at the Pangkalan Bun Head Office in order to formulate responses in community consultation and communication.

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.

The company has a mechanism to receive complaints, the Community Communication and Consultation Mechanism Procedure (SOP-LEGAL.GN.-013, effective from 15 June 2012) and Land Conflict Resolve Procedure (SOP-LEGAL.GN-014), effective from 18 June 2012. All records of related to complaints or objections are submitted directly to the management (incoming letters) or may be submitted through the suggestion box which is available in each plantation. Based on the information from PT. Sawit Sumbermas Sarana management and incoming letter check, no complaints from either the neighboring community or the employees pertaining to the operational activities. As for the identification and calculation procedure for any loss of legal rights, the company has the Land Acquisition Procedure (SOP-LEGAL.GN-001), effective from 15 June 2012. This procedure is used in the Socialization Process, The Negotiation Process, Land Acquisition and the land compensation fee proposing process.

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.

The procedure for negotiating for compensations of the loss of legal or traditional rights is stated in the Land Acquisition Procedure (SOP-LEGAL.GN-001), effective from 15 June 2012. In point 6.1. The Socialization Process and Point 6.2. The Negotiation Process it is explained that the identification up to the land acquisition processes are done with the involvement of other parties such as Community Elders, Tribal Elders, Tribal Institutions, the Village/Sub-Village Government, and the National Land Authority. The records for land acquisition compensation identification in PT. Sawit Sumbermas Sarana are stored in the Release of Land Rights Dossier (Book number: 31) for three individuals (Sudiansyah, Sahni, Gt. Bakrani), Acreage: 14.96 Ha, Compensation Value IDR 85,600,000 in Sulung and Kondang area, South Arut Sub-district, Kotawaringin Barat District. The dossier contains: Land Compensation Negotiation Documentation; Land Compensation Proposal Verification Documentation; Land Verification Documentation; Release of Land Rights Statement; Family ID; ID Card; Land Acquisition Location and Coordinates Map; Land Compensation Fee Payment Recapitulation, 22 September 2011; Payment Receipt with a IDR 6,000 stamp for each person; photographs.

Status: Compliance

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.


ASSESSMENT REPORT


There is the Governor of Central Kalimantan’s Decree number 031 year 2011, dated 25 November 2011 pertaining to the District Minimum Wages (UMK) and the District Sectoral Minimum Wages (UMSK) year 2012 in Kotawaringin Barat District. The District Minimum Wages (UMK) year 2012 is IDR 1,401,010 and the District Sectoral Minimum Wages (UMSK) year 2012 for the Plantation Sector is IDR 1,471,156. Based on Internal Memo number 002/CBI-HR/IM/IX/2010, dated 22 September 2012 pertaining to the Temporary Daily Laborers’ Wage Revision. The memo is a revision of the Executive Director’s Decree number 0211/Dir-SK/CBI-IN/III/2012 specifically for the temporary daily laborers’ wages becoming IDR 47,500/day + Natura in form of rice (according to the regulations). The verification showed that the wages for the employees of PT. Sawit Sumbermas Sarana have fulfilled the District Sectoral Minimum Wages in effect. There is the PT. Sawit Sumbermas Sarana Company Regulations (2011 – 2012) which have been approved by the Kotawaringin Barat District Labor and Transmigration Agency on 16 August 2011, c.q. The Industrial Relations and Monitoring Section number 08/PP/HIP-HI/XLI/2011. The approval of PT. Sawit Sumbermas Sarana’s Company Regulations was based on the Head of the Labor and Transmigration Agency of Kotawaringin Barat District’s decree number KEP.1023/DTT/HIP-HI/VIII/2011. The public facilities available are an employee housing and its facilities such as clean water, religious buildings, a polyclinic, schools, a daycare center, school buses, an ambulance, a sports center, a marketplace, an a rural bank which are a form of the company’s responsibility for its workers. The contractor’s responsibility is explained in the Job Contract, stating that contractors having > 15 employees must have a Safety Officer who is responsible for the employees’ compliance to the environmental and OHS regulations which are in effect within their jobs. As for contractors having < 15 employees, the Contractor Officer/Leader acts as the Safety Officer who is responsible for the employees’ compliance to the environmental and OHS regulations which are in effect within their jobs Example: Job Contract number. 020/PP/SSS.RDE/I/2012 for CV. Dona Doni for the job of transporting FFBs.

Status: Compliance

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.

In PT. Citra Borneo Indah’s Executive Director’s decree pertaining to the Labor Policies in each Citra Borneo Indah Group Affiliation Business Unit number: 0062/DIR-SK/CBI-IN/VI/2012, dated 18 June 2012 explains that for the employees social development, the company gives them the freedom to form employee social organizations as long as they do not violate any of the Republic of Indonesia’s State Regulations and it also endorses the founding of an employee cooperative as the employees economic media as long as it does not violate the state and company economic principles. PT. Sawit Sumbermas Sarana has formed an umbrella organization for the labor union in the form of a Bipartite Cooperation Organization dated 22 March 2012 and has been approved by the Labor and Transmigration Agency of Kotawaringin Barat District (number KEP.1198/DTT/HPK-HI/VIII/2012, dated 2 August 2012). The organizational structure comprises of representatives of the company and of the employees. Meetings between the company and the employee representatives were conducted during the initial stages of the Bipartite Cooperation Organization formation.

Status: Compliance

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 programmes. Children are not exposed to hazardous working conditions.

PT. Citra Borneo Indah Group’s Executive Director’s decree pertaining to Labor Policies in each Citra Borneo Indah Group Affiliation Business Unit number: 0062/DIR-SK/CBI-IN/VI/2012, dated 18 June 2012, point 3 explains that in order to endorse the compulsory education program, the company builds schools in the neighborhood whrere the company has its operation and prohibits any children below 18 to work and provides a Child Daycare Center and Nursing Area in the company environs. In Chapter III, Article 10 Verse 2 of PT. Sawit Sumbermas Sarana’s Company Regulations, it is explained that the requirements for employees is being at least 18 years old at the time of recruitment. The regulation has been approved by the Kotawaringin Barat District Labor and Transmigration Agency on 1 June 2011, number KEP.734/DTT/HIP-HI/2011 and has also been recorded in the Company Regulation Approval Registry of Kotawaringin Barat District Labor and Transmigration Agency c.q. The Industrial Relations and Monitoring Section number 05/PP/HIP-III/VI/2011. The Company Regulations are effective from 01 June 2011 to 31 May 2013.


ASSESSMENT REPORT


The Kondang Estate Employee Recapitulation up to August 2012 is available:

- Temporary Daily Laborers : 388 people

- Permanent Daily Laborers : 184 people

- Permanent Employees(monthly) : 37 people

- Staff : 38 people

Based on the documentation records and field verification, it can be concluded that there are no workers under 18.

Status: Compliance

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.

In PT. Sawit Sumbermas Sarana’s Company Regulations, there is a written statement that the employee recruitments are based on the company needs and capacity and must abide to the recruitment procedure in effect. The company tries its best to conduct fair, transparent, and procedural employee recruitments which is free from ethnic, religious, racial and class prejudice. Based on PT. Sawit Sumbermas Sarana’s 2012 List of Employees, there are 4,482 employees from various ethinic groups, religions, races, and classes. During the field visit to Sulung and Kenambui Villages, it was found that due to the opening of the oil palm plantation in the vicinity meant job opportunities and that there were several villagers working for PT. SSS. Unfortunately there were no records made by the village authorities.

Status: Compliance

6.9 A policy to prevent sexual harassment and other forms of violence against women and to protect their reproductive rights are developed and applied.

Through PT. Citra Borneo Indah’s Executive Director’s Decree pertaining to Labor Policies in each Citra Borneo Indah Group Affiliation Business Unit number 0062/DIR-SK/CBI-IN/VI/2012, dated 18 June 2012, it is explained that the company is committed to implementing the District Minimum Wages normative regulation and prohibits and will take strong measures against any sexual harassment or crime towards any person within the company environs. Policies pertaining to reproductive rights are stated in the Company Regulations article 3 about maternity leave. Verse 1 states: Female employees have a right to a 3 month maternity leave with only basic pay. The maternity leave must be taken 1.5 months before giving birth and 1.5 months after giving birth. Verse 2: Female employees who experience a miscarriage will receive sick leave, the length of which is determined based on the physician’s recommendation, 1.5 months at the longest. Verse 3: In order to obtain the sick leave, the female employee must submit the physician’s statement. Verse 4: The detailed procedure of maternity leaves is explained and regulated in a separate regulation. Article 37: Menstrual leave, verse 1: The company can grant a leave with pay of 2 days for female employees experiencing pain within their menstrual period. Verse 2: The menstrual leave can only be taken during the menstrual period by submitting a written message to her direct superior and the Human Resource Department. Proof of the implementation is, among others: the records of the Employee Complaint and Sexual Harassment Prevention Socialization on 31 July 2012 (document number: FR.003.1/QEHS-CBI) and maternity leave proposals for female employees. Example: the maternity leave proposal from the radio operator dated 12 March 2012. As for the specific complaint handling mechanism consists of the Sexual Harassment Complaint Handling Procedure (SOP-PERS.GN-016) and Employee Complaint Handling Procedure (SOP-PERS.GN-017). During the audit, there were no specific complaints found.

Status: Compliance

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

The FFB and CPO price information refers to the letters circulated by the Plantation Agency of Kotawaringin Barat District published every month through a price determination meeting. The FFB price in effect and the previous price are available for public scrutiny at the POM. The pricing mechanism at PT. Sawit Sumbermas Sarana is based on the internal policy, the FFB Basic Price Decree number 136/IM/CBI/I/2012, dated 1 January 2012. In this letter, it is explained that the FFB price determination is based on the price set by the Plantation Agency of Kotawaringin Barat and is adjusted to the Central Kalimantan market conditions and refers to the POM production cost and the Regulation of the Agricultural Ministry 17/PERMENTAN/OT.140/2/2010.


ASSESSMENT REPORT


The understanding of a fair, legal, and transparent contract agreement for all parties can be proven by the company by making Job Contracts with local contractors. In each Job Contract, there are statements of rights and responsibilities which should be understood by both parties, including the payment system to be used. Example: Job Contract (number 217 SPK-TAN/SSS-/V/2012, dated 10 May 2012) between Pulau Estate Manager and Supri (a local contractor) for the planting of 5,000 plants.

Status: Compliance

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

Evidence that PT. Sawit Sumbermas Sarana has contributed to local development is that it has fulfilled its duty to pay the Land and Building Taxes (PBB) and has several CSR programs such as Mill Operator Scholarships (Diploma 1) in cooperation with STIPER Yogyakarta for local employees.

Status: Compliance

PRINSIP #7 RESPONSIBLE DEVELOPMENT OF NEW PLANTINGS.

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

The company owns Environmental Impact Assessment documents which consist of KA ANDAL, ANDAL, RE, Environmental Management Plan and Environmental Monitoring Plan. There are also stages which the company goes through before conducting the aforementioned Environmental Impact Assessment. As a form of responsibility in environmental management, the company documents the routine Environmental Management Plan and Environmental Monitoring Plan and is submitted to the Environment Body every 6 months. In environmental and social management, the company also has records of the scheme development program for PT. Sawit Sumbermas Sarana, including the Rangda Village Inventory Land (tanah kas desa) production monitoring records.

Status: Compliance

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

The company can show land survey and land appropriateness survey records. The land survey was done by the Bogor Land Survey Team in collaboration with the company in 1999 in the Rungun-Lalang-Rangda-Natai Raya area, covering an area of 14,730 Ha. The information obtained was, among others: the type of soil, the physiography, the shape of the area (the slope), main materials, soil fertility, and land appropriateness class. In line with the land utilization plans in the area statement of PT. Sawit Sumbermas Sarana, no advancements toward plantation development/ expansions were identified.

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

PT. Sawit Sumbermas Sarana has conducted HCV identification and there is a final report to prove that the planting of oil palms were not done in primary forests or any area that has been set aside in order to maintain or increase one or more HCVs (High Conservation values). Based on the document verification results, the new planting was done in January 2007, numbering 200 plants. Planted 200 plants are sampling from the field observations in Kenambui Estate, Afdedling Block C 12 and the planting data, the 2007 planting year was executed on 26 January 2007. There is a planting realization map in the form of PT. SSS’s 1:100,000 scale planting year map. The HCV identification assessment was done in the 23 July – 3 August 2012 period by Sonokeling Akreditas Nusantara. The identification results claim that there are no new plantings on HCV areas. The last planting year was 2011 and it was not on HCV area.

Status: Compliance

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

The company has several maps such as the Soil Type Map, the Land Slope Classification Map, and the Peat and Sandy Soil Map. Those maps indicate that on areas that have marginal land, integrated management needs to be applied with conservation values put in consideration.


ASSESSMENT REPORT


The management mechanism for marginal land is found in the Soil and Water Conservation procedure (document number SOP-EHS.GN-033) and the Land Clearing (LC) procedure. These procedures explain the steps for the management of various soil types (slopes, peat, sand, acid sulphate).

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.

The final Social Impact Assessment (SIA) document is already available and was published in September 2012 by Sonokeling Akreditas Nusantara. The report contains social impacts that PT. Sawit Sumbermas Sarana needs to manage and monitor. PT. Sawit Sumbermas Sarana’s Environmental Management Plan/Environmental Monitoring Plan, Semester II (July – December 2012), in which the plans for managing and monitoring social impacts are detailed, covers job opportunities, business opportunities, and disease prevalence and incidence. There is a Land Rights Release document for an area of 4.62 Ha, the Compensation Fee Value under the name of Harkani in Kondang Village, Kotawaringin Lama Sub-district, East Kotawaringin District, paid on 12 June 2012.

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 agreement

All the records of activities related to rights identification and assessment are available in the HCV Identification Final Report and the Social Impact Assessment (SIA) documents compiled by Sonokeling Akreditas Nusantara, September 2012. The mechanism used to identify the parties who have the right to receive compensation for legal and traditional rights is explained in the Land Acquisition Procedure (SOP-LEGAL.GN-001), effective from 15 June 2012. This procedure is used for the Socialization Process, Negotiation Process, Land Acquisition Process and land compensation fee proposal process. All records of the negotiation process and/or compensation agreements have been documented in the company’s archives. For example, the records for land compensation fee negotiation under the name of Mr. Harkani dated 29 May 2012 for an area of 4.62 Ha. The receipt for the payment of the compensation was dated 12 June 2012. PT. Sawit Sumbermas Sarana also has built collaborations with the adjacent community in the form of smallholder schemes plantations. Some farmer’s groups involved are Mitra Tani Abadi, Mitra Sulung Abadi, Sepakat Jaya and Mekar Mulya Village. The records of the compensation process and claim results for several land acquisitions are fully documented in the company archive. For example, the Land Rights Release Certificate for 4.62 Ha under the name Harkani Kondang Village, Kotawaringin Lama Sub-district, East Kotawaringin District. The documents attached were: the Registration of the Acceptance of PT. SSS’s Land Compensation Fee Proposal; Land Verification/checking Records; Location Maps of the compensated land; the land owner’s statement; the Land Rights Release Statement from the land owner; the land owner’s ID card; the land owner’s Family ID; Land Cultivation Certificate; Land Acquisition Location Map; Land Compensation Fee Proposal Verification records; Land Compensation Payment Receipt; photographs of the Land Compensation Fee payment.

Status: Compliance

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

No-burn land clearing is a company policy, stated in the Plantation Department Land Clearing (LC) procedure, document number SOP-KBN.GN-001, Revision: 01, effective from: 01 February 2012. An example of the execution of no-burn land clearing can be seen in the clauses of the Job Contract with CV. Dona Doni (number 221/PP/SSS.RDE-DD/IX/2011) for clearing the land on one of the estates and documentation of the activity. The types of activities were, among others: blocking, the road shaping and construction, bridge construction, tree felling and brush clearing (imas tumbang), stacking/pruning, blanket spraying, LCC planting until the land is ready for planting. On the other hand, there is also the Brush Fire Control on Plantations Procedure (document number SOP-EHS.GN-013) and the records of the training are some of the company’s efforts in being responsible for the prevention of the use of fire in land clearing and other potential brush fires. In order to make sure that all the element are well-applied, the company also provides brush fire control facilities and infrastructure such as fire extinguishers, water tanks and pumps, water tank trucks, fire control location maps, and a emergency response team.


ASSESSMENT REPORT


Fulfillment Status: COMPLY

PRINSIP #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 control PT. Sawit Sumbermas Sarana over the use of chemicals is in the form of a list of chemicals which have been registered and have licences from the related agencies. In environmental management, there is the Environmental Management Plan/Environmental Monitoring Plan report which is regularly submitted to related agencies. In waste management, PT. Sawit Sumbermas Sarana has an environmental monitoring and analysis matrix and explanations for the sources of waste and the pollution cause by activities both on the plantation and in the POM. This includes the plans for reducing pollution and emissions which are cone through preventive maintenance of machinery and other operational appliances. For the social aspect, there is the social impact assessment by Sonokeling Akreditas Nusantara in September 2012, showing that the company has several responsibilities which have to be conducted with the community’s participation. For the time being, PT. Sawit Sumbermas Sarana has not received an RSPO certificate; therefore there are no follow-up records for improvement measures to ensure a sustainable oil palm plantation management yet.

Status: Compliance


ASSESSMENT REPORT


3.2. The Summary of the Supply Chain Requirement Assessment Report

Clause Requirements of Mass Balance Supply Chain Models

1 Documented Procedures

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

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

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

There is a supply chain procedure (SOP-PK.GN-20) rev-1 dated 1 October 2012.

The aim of this procedure is to verify the origins of the raw materials and the traceability of the product produced in the operation unit down to the buyers.

The scope is: fruit harvesting on the estate, transportation of the fruit from the estate to the POM, receiving the raw materials at the POM, the shipment of the product (CPO.PK) to the buyers and the shipment of the product to the bulking. Then it has been determined in the supply chain model procedure as the “Mass Balance”.

There are PICs for each stage of the supply chain:

1. Estate manager/askep assistant afdeling, harvesting

2. Estate manager/transporter

3. Weighing operator

4. Grading man

5. Weighing operator

6. Sterilizer operator

7. Press and Clarification operator

8. Lab Analyzer

9. Mill manager

Status: Compliance

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

The company has a supply chain procedure (SOP-PK.GN-20) rev-1 dated 1 October 2012 which regulates the receiving and processing of certified and non-certified FFBs starting from the harvesting at the estate, the transportation of the fruit from the estate to the POM, the receiving of the raw material at the POM, the processing of the fruit at the POM, and the shipping of the product (CPO.PK)

Status: Compliance


ASSESSMENT REPORT


2 Purchasing and goods in

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

The company only handles or processes certified and non-certified FFBs.

There is a possibility of receiving RSPO-certified fruit (but not for now). SSS differentiates the fruit reception between the ones from the scheme and non-scheme by noting the name of the estate, the afdeling, the block, and also the name of the village for outside fruit. The fruit is then mixed and processed and is graded based on the mass balance test in order to converse oil extraction rate (OER) in percentage in relation to the certified CPO claim.

Status: Compliance

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

The certified FFB practice is regulated in the supply chain procedure (SOP-PK.GN-20) rev-1. It has been assured that there is a separation between certified and non-certified fruit which starts when the fruit is received (the delivery order ascertains the fruit origins (certified or non-certified)).

The materials received are certified and non-certified FFBs and they can be differentiated from the plantations of origin.

If the FFBs do not comply with the requirements, then the FFBs are not accepted. SSS has contracts with suppliers and for schemes it must also be clear whether or not the fruit will be accepted or weighed.

It is explained that in accordance to the production capacity and OER calculations, certified CPO can be accounted for in claims; this is related to the possibility of over production; it will refer to the RSPO regulations which demand it to be reported to the certification agency.

Status: Compliance

3 Record keeping

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

The data can be shown even though it is not yet certified from scheme plantations, i.e. recorded in the forms and reports and is filed (documented) according to the fruit reception for processing until the end product, CPO.

Status: Compliance

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

The company has regulated the record archive for the supply chain process, 5 years, and is noted in POM Sulung’s quality list records (F-QMS.GN-004) rev-0, for example: fruit grading reports, replas records (FFB delivery report).

Status: Compliance


ASSESSMENT REPORT


3.3 (a) 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. (b) All volumes of palm oil and palm kernel oil that are delivered are deducted from the material accounting system

according to conversion ratios stated by RSPO. (c) The facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short.

The POM has shown up-dated notes or records of the certified and non-certified FFBs in the form of:

a. The presence of Monthly records

b. The presence of the calculation of CPO ratio according to the material balance test.

c. SSS has not sold and made any mass balance calculations at the end of the month (at the moment), even though the daily calculations can be made

Status: Compliance

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.

The POM has shown the processing procedure for scheme (certified) and non-scheme fruit and is differentiated based on the origin of the fruit. It is explained that the sales of certified CPO the Mass Balance (MB) code will be stated in the CPO sales contract.

Status: Compliance

3.5 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 is covered through a signed and enforceable agreement.

Not Applicable – there is no pocessing of palm kernels into PKO, including that involving contractor services.

Status: NOT APPLICABLE (NA)

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

(d) The quantity of the product delivered

(e) Reference to related transport documentation

There are no certified products yet and it has been explained that in writing invoices in the marketing procedure there will be a connection to the certified CPO claim.

Status: Compliance


ASSESSMENT REPORT


5 Training

5.1 The facility shall specifies and provides the training for all staff as required to implement the requirements of the Supply Chain Certification Systems.

RSPO training has been conducted including SCCS on July 2012, even the planning for supply chain (SCCS) training for palm oil mill personnel have been made by the training department or training center and is acknowledged by the head of HRD in the Head Office. The supply chain training is planned to be conducted before the end of 2012 for all related personnel in the POM including those in marketing.

Status: Compliance

6 Claims

6.1 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 (refer to Annex 10).

It is explained that in the future, in relation to the claims for using or supporting RSPO certified palm oil, the company shall refer to RSPO’s standards, i.e. the Guidelines for Communication and Claims.

Status: Compliance

3.3. Logo Use Regulations Checklist (only in effect for surveillance reports)

1. Certificate and Logo Use Approval/Permit Proof X or√

PT. Sawit Sumbermas Sarana has not yet received the RSPO certificate NA

Not Applicable

2. Implementation of the certificate and logo by the client in accordance to the shape and size explained in the logo use guidelines

X or√


Not Applicable

3. Implementation of the certificate and logo which are not used on the product X or√


Not Applicable

4. Certificate and logo control by the client, including controlling/withdrawing improper Logo use

X or√


Not Applicable


ASSESSMENT REPORT


3.4 Summary of Time bond Plan Verification of the RSPO Certification

Citra Borneo Indah (CBI) Group has 5 Management Unit, 1 (one) Management Unit already assessed by PT. Mutuagung Lestari, and 4 (four) Management Units are still preparation process to certification. The Management Unit of CBI Group are:

1. PT. Sawit Sumbermas Sarana (already assessed for RSPO) 2. PT. Kalimantan Sawit Abadi (preparation process to certification)* 3. PT. Mitra Mendawai Sejati (preparation process to certification)* 4. PT. Sawit Mitra Utama (preparation process to certification) 5. PT. Tanjung Sawit Abadi (preparation process to certification)

Total Company who visited: (0.8 √ Y) where Y is the number of companies that are still in the process of certification. Thus, the team determines the location of the samples verified that: Company Name: PT. Kalimantan Sawit Abadi and PT Mitra Mendawai Sejati Date of visit : October 1st to 7th, 2012

1 There are no significant land conflicts

Based on field observations and stakeholder consultation e.g. BPN (National Land Agency), Dinas

Kehutanan (Forestry Agency), DInas Perkebunan (Agricultural Agency), Badan Lingkungan Hidup (Environmental Agency) in District Level of Kotawaringin Barat, Villages communities to each companies, and these companies already have a valid evidence of ownership of the work area and there are no significant land conflicts and disputes.

√

2 No replacement of primary forest or any area containing HCV since November, 2005

Both companies have done identification of high conservation values (HCV), documented and consulted to stakeholders. Based on the results of HCV identification and legal documents owned by the companies, there is no clearing of primary forest area and the HCV area since November 2005.

√

3 No labour dispute that are not being resolved through an agreed process

Based on stakeholders consultation to Disnaker (Labour Agency in Kab. Kotawaringin Barat) and employees interviewing, and also companies records and there is no conflict and dispute of labor (workers) which unresolved. The companies already have a mechanism to resolve the conflict by working through a process of consensus.

√

4 No evidence of non compliance with law in any of the non certified holding

Based on stakeholders consultations and documentation assessment that PT. Kalimantan Sawit Abadi and PT Mitra Mendawai Sejati there was no evidence of non compliance against laws or regulations. And both companies demonstrated the appropriate documents which supported comply to laws such as:

1. Ijin Lokasi (Location Permits) :

- Decree Head of Kotawaringin Barat Number: F11.480.42/X/2004, Oktober 2004 and Number: 40.480.42/BPN/II/2005, Oktober 2005 (PT. Kalimanatan Sawit Abadi).

- Decree Head of Kotawaringin Barat Number: 229.480.42/BPN/III/2004, March 27, 2004 (PT. Mitra Mendawai Sejati).

2. Ijin Usaha Perkebunan (Plantation Business Permits) :

- Decree Head of Kotawaringin Barat Number: EKBANG/525.26/575/XII /2007, December 15, 2006 and Number: 525.26/369/EKBANG/2007 June 13, 2007 (PT. Kalimantan Sawit Abadi).

- Decree Head of Kotawaringin Barat Number . 525/242/EK, 2012 (PT. Mitra Mendawai Sejati)

√


ASSESSMENT REPORT


3. Other legal documents : Sertifikat Hak Guna Usaha (Land Use Title Certificate):

- Number 48, December 12, 2007 and Number 49, December 11, 2007 (PT. Kalimantan Sawit Abadi).

- Number 35-HGU-BPNRI-2007, September 18, 2007 and Number 36-HGU-BPNRI-2007 (PT. Mitra Mendawai Sejati)


ASSESSMENT REPORT

SPO – 4006a.4 Halaman 35

Dibuat oleh Mutuagung Lestari untuk

3.5 Identification of Findings, Corrective Actions, Observations, Area for Improvement and Positive Component Records

During the assessment (ST2), four (4) Non-Conformance which was addressed to three (3) Major Compliance indicator, and One (1) Non-Conformance which was addressed to Minor Compliance indicator, have been identified. Further explanation of the non-conformance and corrective action taken by the company is provided in this section. The Company prepared reviewed corrective actions which have been accepted by MUTU and corrective actions taken to cover all non-conformance must be verified during the next assessment.

3.5.1 Identification of Findings, Corrective Actions and Observation during (ST1) Assessment

CAR No

Ref Std Findings Location Grade Time Limit Corrective Actions Observations Status Closing

Date

2012.01 Major 2.2.1

Documents showing land tenure which are in accordance with applicable legislation. Based on the document review and field verification, there were and area owned by PT. SSS that does not comply with legal documents.

Estate

NC Stage-2 The Company must show proof of documents that area owned by PT. SSS is in accordance with legal documents.

20 September 2012 The Company demonstrated the latest progress of legality in form of PT. SSS Plantation Business Permit issued on 4 July 2012 which cover the area of 12,342.49 hectares and 7,500 hectares or the total area of 19,842.49 hectares and determination of area statement covering an area that equals to what mentioned on Plantation Business Permit or have a difference with the previous area, as many as 2,904.52 hectares (previous statement area was of 22,747 hectares). Based on information provided by SSS, there is no evidence of updated area statement in form of: map, internal management statement, management plan adjustment (3-year) including each estates and efforts to get the certainty of the area in form of Building Use Title (HGU) from HGU area of 16,984 hectares to 19,842.49 hectares.

Closed 14 Dec 2012


ASSESSMENT REPORT



CAR No


Date

22 October 2012. Internal Memorandum from President Director No. 0071/DU/CBI – IM/IX/2012 on 20 September 2012 concerning Area Statement Amendment from 22,747.89 hectares to 19,842.49 hectares. The Company has also shown document of Business Plan-Revised Year 2012 – 2025 (CBI Group). 14 December 2012 The Company showed progress on area legality in form of Kotawaringin Barat Head of District’s Letter, Number: 522/98/Pem/2012, on 29 November 2012 to the Governor of Central Kalimantan concerning Exchange Recommendation of PT. Sawit Sumbermas Sarana Ltd area. There is also available Site Map of Exchange Application of Forest Area on behalf of PT. SSS at Kotawaringin Barat District, Central Kalimantan Province. The Company has also shown the latest progress in form of; latest map according to area statement change (an area of 19,842.49 hectares) and Business Plan – Revised Year 2012 – 2025. The result of boundary poles field- inspection showed that arrangements have been made in accordance with the change of area statement.


ASSESSMENT REPORT



CAR No


Date

2012.02 Major 2.2.2

Legal proof/legal area boundary poles are clearly demarcated and maintained. Based on field visit, PT. SSS has not conducted maintenance of boundary poles. Boundary poles was found in not well-maintained condition. For example: at Block 2 Afdeling Bravo Kondang Estate; Block 9 Afdeling Charlie Rungun Estate and Block 14 Afdeling Hotel Pulau Estate.

Estate NC Stage-2 The Company must show evidence of boundary poles maintenance activities in accordance with the number of Land Use Title poles from National Land Agency.

20 September 2012 The Company has an SOP on maintenance of Legal Boundary Poles-Plantation Boundary Management (SOP-EHS.GN-025) dated 18/6/2012. The SOP manage the inspection and maintenance of Boundary Poles, and regular identification for period of 6 months (semester). PT. SSS has identified all Land Use Title Boundary Poles and distributed them to each estate to be identified and maintained. For examples: in Estate Kondang there are 3 well-maintained Land Use Title Boundary Poles, namely SSS 102, SSS 104 and SSS 001 dated 13 Sep 2012

Closed 20 Sep 2012

2012.03 Minor 4.6.5

Records of Pesticides Used & Evidence records of banned pesticides reduction. The Company has shown list of pesticides used. From the list, it was known that the company still uses pesticides with active ingredient Paraquat. However, The company has not been able to demonstrate the records of pesticides use with the said active ingredient which show the reduction trend. Moreover, this

Estate NC Stage-2 The Company must demonstrate the reduction or elimination of the use of chemicals with categories of type 1A or 1B WHO and/or chemicals containing paraquat as active ingredient.; and anyone who applies restricted pecticides has received special training from local Pesticides Commission.

20 Sept 2012 There was evidence in the period of 2011 and 2012, which showed the reduction of restricted pesticides for example at Sulung and Rungun Estate for type of klerat and supretox. Training has been conducted by SSS in Sept 2012 by Kotawaringin Barat Pecticides Commission and certificates were provided.

Closed 20 Sep 2012


ASSESSMENT REPORT



CAR No


Date

type of active ingredient is included into the category of restricted pecticides (Appendix of Regulation of Agriculture Ministry No. 24 year 2011), so that anyone who is going to apply it must take special training organized by local Pesticide Commission (Regulation of Agriculture Ministry No. 24 year 2011 Article 9). Based on the documents review, it was known that the spraying workers not yet received special training for the use of restricted pecticides, training were only given to supervisor level. Pesticides Management Procedure was available (SOP-EHS.GN-019). But The company has not been able to show evidence report of restricted pesticides reduction effort.

2012.04 Major 5.1.2

& Minor 7.7.4

Reporting Record of environmental management ( water management and water source maintenance). The Company has conducted surface water quality monitoring regularly to the relevant agencies, however, based on the documents review, it was found

Estate &

Mill

NC Stage 2 The Company must take measurements of surface water quality in accordance with the directions on Environmental Impact Assessment documents.

20 September 2012 SSS has done revision on the Environmental Management Plan and Environmental Monitoring Plan report given to the relevant institution and revised the water quality from class IV to class II on 4 September 2012.

Closed 20 Sep 2012


ASSESSMENT REPORT



CAR No


Date

that the water quality monitoring conducted by the company did not comply with environmental documents (Environmental Management Plan/Environmental Monitoring Plan). For example: the Environmental Management Plan/Environmental Monitoring Plan documents stated that surface water quality standard in the work area of PT. SSS should be class II, while the company used water quality standard of class IV in its monitoring.

2012.05 Major 5.2.1 5.2.2 5.2.3

Minor 5.2.5

High Conservation Value Identification There have been posters of protected species and some riparian areas have been marked with riparian boundary poles and warning/prohibition board. But it was not yet based on the identification of High Conservation Value corresponding to RSPO request, where the identification should be done by experts who have been ratified by RSPO and coresponding to HCV tool kit.

Estate NC Stage 2 The Company should identify the High Conservation Value area, as required by the RSPO, create measures to protect Rare-Threatened-Endangered species, including protecting illegal activities related to RTE species. Moreover, there are not enough officers appointed and trained.

20 Sept 2012 In the HCV documents by Sonokeling Accreditation Nusantara Consultant published on September 2012, Protected, Rare-Threatened-Endangered species (RTE), and habitats of High Conservation Value were identified. For example: at Kondang Estates, High Conservation Value 1.1 to 1.4 at Tanjung Biru and RTE, species such as 2 types of flora, 7 species of birs, 10 species of mammals and 5 species of reptile were identified. Measures based on the identification of High Conservation Value area has been made in form

Closed 20 Sept 2012


ASSESSMENT REPORT



CAR No


Date

of a matrix for each High Conservation Value area to protect the Rare-Threatened-Endangered species and their habitats (Table of KBKT management and monitoring PT. SSS, dated September 2012), including to protect the illegal activities related to RTE species set in Management of High Conservation Value Area section 6.2 Protection, Security and Patrol. KBKT internal training conducted by PT. SSS for officers appointed by the Company on 28 August 2012 and appointed officers to manage High Conservation Value area at PT. SSS area as many as 7 persons.

2012.06 Minor 5.5.4

Facilities and infrastuctures for fire-fighting based on the vulnerability level. Facilities and infrastuctures for fire-fighting were available. However, based on field visits (Sulung Estate), there was data deviation between the condition described in the documents and the physical condition at the filed.

Estate NC Stage 2 The Company should ensure that the availability of fire fighting facilities and infrastucture is in accordance to the data in the document.

20 September 2012 Based on field observation at Sulung Estate, a list of fire-fighting equipment and its inspections (equipment condition) was available and in accordance with the ready-to-use equipment condition status, for example: 1 unit of portable tank with a capacity of 3000 L and pump of 35 PK, and the presence of fire extinguisher which was well-inspected.

Closed 20 Sep 2012

2012.07 Minor 6.1.2

Records of management and monitoring plan of social

Estate & Mill

OFI S-1 The Company must perform Social Impact Assessment

20 September 2012 Social Impact Assessment

Closed 20 Sep 2012


ASSESSMENT REPORT



CAR No


Date

Major 7.5.1

impact. There was Report of Environmental Management Plan and Environmental Monitoring Plan of PT. Sawit Sumbermas Sarana, Semester II (July – December 2012) in which, part of impact management and monitoring plan were explained. Type of impacts managed and monitored were: 1). Employment and job opportunities, 2). Prevalence and disease incidence. However, there was insufficient evidence that the Company has done impact monitoring and management activity (Social Impact Analysis/Assessment) regularly to more comprehensively demonstrate about positive and negative impacts related to operational activities. Social Impact Assessment has been done by Sonokeling Accreditation Nusantara Consultant but the report which explained that the Company manage the social impact was not yet available and documented.

which can more comprehensively show about positive and negative impacts related to operational activity and it must be documented.

Documents were available and published on September 2012 in which explained about social impacts to be managed and monitored by PT. SSS. It is recommended that Social Impact Assessment results are included in the next period of Environmental Management Plan/Environmental Monitoring Plan report, so that it will more comprehensively explain about management of social impacts arised due to PT. SSS activities.

2012.08 Minor 6.1.5

Special attention on impact to smallholders scheme. The Company has performed

Estate & Mill

NC Stage-2 The Company must perform Social Impact Assessment which can more

20 September 2012 Within the Social Impact Assessment document Sept 2012, it

Closed 20 Sep 2012


ASSESSMENT REPORT



CAR No


Date

social impact assessment at smallholders estate and sceme estate, however there was not enough evidence that it was a final report which identified impacts on scheme smallholders and that the Company has given special attention to scheme smallholders.

comprehensively show the positive and negative impacts related to smallholders estate and scheme estate operational activities.

was mentioned about impact identification to smallholders scheme in which not yet transparently known by some members of the community (“potential conflict”). Further, it was recommended to do fostering and socialization. In practice, the organization has given socialization about oil palm cultivation so they have had quality fresh fruit bunches (based on interview with villagers of Rangda Village, member of smallholders scheme) and the other was providing incentive based on FFB quality coming from smallholders scheme.

2012.09 Major 7.3.1

New planting in period November 2005 to November 2007. PT. SSS has performed the High Conservation Value Identification but the report proving that oil palm planting were not done in primary forest or in the area which was required to maintain or to improve one or more High Conservation Value areas, was not yet available.

Estate NC Stage 2 The Company must provide evidence that oil palm planting were not done on primary forest or in the area which was required to maintain or to improve one or more High Conservation Value areas.

21 Sept 2012. There are HCV documents published on Sept 2012 identifying the High Conservation Value area which covers all PT. SSS region. HCV documents stated that no new planting done on primary forest and/or one or more High Conservation Value area (page 4-22) Based on field observation result at Kenambui Estate Afd. Block C 12 and planting data, planting year 2007 was held on 26 January 2007. HCV identification assessment was conducted on period of 23 July – 3 August 2012 by Sonokeling

Closed 21 Sep 2012


ASSESSMENT REPORT



CAR No


Date Accreditation Nusantara. Identification results showed that no new cultivation done on HCV area. The last planting year was 2011 and was not conducted on HCV area.

2012.10 Major 7.3.2

Records of land clearing Plan and Realization Map in accordance with High Conservation Value identification. Land clearing plan and realization Map which was in accordance with HCV identification was not yet available.

Estate NC Stage 2 The Company must provide land clearing plan and realization map which is in accordance with HCV identification.

20 Sep 2012 HCV Identification documents (Sept 2012) and map which is a combination of HCV map and planting year map was available. Based on observation results and work area information, ‘PT. SSS did not conduct new planting or land clearing in areas of primary forest and one or more of HCV area.

Closed 20 Sep 2012


ASSESSMENT REPORT



3.5.2 Identification of Findings, Corrective Actions and Observations on (ST2) Assessment

CAR No

Std Ref Findings Locatio

n Grade Time Limit Corrective Actions Observations Status

Closing Date

2012.11 Major 3.1.1

Work Plan Documents of the Company. Long-term plan documents in form of business plan and annual plan related to the plantation management for each estate was available, however the organization was not yet able to show area statement adjustment or revision of an area covering 19,842.49 hectares.

Estate Major Before the recommendation to publish the certificate

The Company must provide management plan document for achievement of long-term economic and financial security in accordance with the area statement.

14 December 2012 Business Plan-Revised Document Year 2012 – 2025 (CBI Group) was available. This document explains about; the companies area (each company) in accordance with latest area statement revision, plant projection, production estimation (FFB, CPO, PK & PKO), maintenance cost, harvesting and collection cost, and others. This document is also as annual plan of each company (PT) described annually (2012 – 2025).

Closed 14 Dec 2012

2012.12 Major 6.5.1

Employee Wage List Sectoral Minimum Wage of Kotawaringin Barat District year 2012 for plantation sector was IDR 1,471,156. The Company has showed fund request list for employee wages and the observation sample result for employee with daily freelance status (PHL) showed that daily basic salary for Daily Freelance Worker at Kondang Estate and Sulung POM was IDR 43,700/day and daily natura (rice) provision

Estate and

POM

Major Before recommendation to publish the certificate

The Company must fulfill the wages and employment conditions for employees in accordance with applicable minimum standard.

6 October 2012 Within the Internal Memo No. 002/CBI-HR/IM/IX/2010, dated 22 September 2012 about Wages Revision for Daily Freelance Worker, which was a revision to President Director’s Decree No. 0211/Dir-SK/CBI-IN/III/2012, the wage for Daily Freelance Worker becomes IDR 47,500/day + Natura in form of rice (in accordance with the provision). This provision started to apply from payroll period of September 2012. This was in accordance with the minimum wage standard.

Closed 6 Oct 2012


ASSESSMENT REPORT



CAR No

Std Ref Findings Locatio

n Grade Time Limit Corrective Actions Observations Status

Closing Date

was IDR 4,200 so the total wage accepted by the Daily Freelance Worker PHL in one month (30 days) was IDR 1,437,000. This was not comply with District Sectoral Minimum Wage of Kotawaringin Barat District.

2012.13 SCCS Minor 5.1

Supply Chain Training The Company was not yet able to demonstrate training related to RSPO Supply Chain application as required in Supply Chain Certification System.

POM Minor S-1 The Company must set and provide training for all staffs as required to apply the Supply Chain Certification System requirements.

20 September 2012 Supply chain training plan (SCCS) for personnel at palm oil mill had been made by training department or training centre and had been approved by Head of Manpower at Head Office. Supply chain training was planned to be done before the end of year 2012 for all related personnel at POM, including marketing department.

Closed 20 Sep 2012


ASSESSMENT REPORT



3.6 Summary of Public Issues, Organization and Auditor Responses

Issues from Public (Institution/ Non-Government Organization /

Community) Organization Responses Auditor Responses

Labour and Transmigration Agency, Kotawaringin Barat District.

1. Guiding Committee of Occupational Safety & Health (P2K3): Guiding Committee of Occupational Safety & Health organization structure has been made at PT. SSS, however the highest authorized official at corporate level or company group was not clearly stated.

2. Industrial relationship: PT. SSS should enhance the industrial relationship harmonization between the employee and the employer, to avoid conflict and gap that may arise.

3. Work norm: In Guiding Committee of Occupational Safely & Health quarterly reports, PT. SSS should provide result of data and analysis of accidents happened along with social assurance submission act. So that Labour and Transmigration Agency can get involved in the efforts of controlling the prevention of occupational accidents and monitoring claim on social assurance.

1. The main authorized officials of Guiding Committee

of Occupational Safety & Health are GM, EM, MM, and Askep (Chief Assistant). At top management level the officials are the Director of each subsidiary and corporate (holding).

2. PT. SSS already has Bipartite Cooperation Institution related to industrial relationship between the employee and the employer.

3. The Company has conducted Guiding Committee of Occupational Safety & Health reporting quarterly where the report already included occupational accident level happened at PT. SSS area. However, so far PT. SSS has not yet received any coordination or feedback for Guiding Committee of Occupational Safety & Health report.

Communication between government agencies and the company needs to be improved so that operational activities related to employment can run harmoniously.

Land Department, Public Administration, Regional Secretary, Kotawaringin Barat District. So far, PT. SSS has followed the rules in the Kotawaringin Barat District related to the licensing process in investing at plantation sector. However, if there is a revision related to licensing in the actual condition, PT. SSS is expected to coordinate with

PT. SSS has a strong commitment to fulfill both national and regional regulation, so that all changes that have implications to the regulation will always be communicated and followed up.

Any changes and/or updates to the legal aspects should be communicated between the company (executive) and the relevant government agencies (regulators), so that each party can understand their roles and responsibilities.


ASSESSMENT REPORT





Public Administration Department.

Indonesian Orangutan Foundation (YAYORIN). Yayorin knows the existence of PT. SSS (CBI Grup), but not entirely familiar with the profile of The company, moreover about its commitment towards the certification process of RSPO and ISPO. This was because there has never been any communication between Yayorin and PT. SSS earlier, except when attending Public Consultations related to HCV Assessment. Yayorin expected that all oil plam plantation companies in Kotawaringin Barat area including PT. SSS and its CBI Group should involved Non-Governmental Organizations such as Yayorin in a ComDev activities and sustainable environmental Education, not only in the process of RSPO or ISPO certification.

All inputs from Yayorin related to cooperation and communication will be conducted in accordance with the needs of the company in order to have commitment to the environment.

The Company needs to enhance cooperation against environmental-and-social-based non-governmental organizations, so that the company’s commitment to implement the vision and mission of sustainable oil palm management will be able to run well with the open support from the parties involved.

Kenambui Village. The presence of PT. SSS has opened job opportunities for some of the villagers, there are some villagers who work in the Estate (about 20 people), among others, in the plant nursing division. Some of the assistance given by the company, among others are:

Supporting the development of Madrasah (Islamic Elementary School) building at Sulung Village.

PT. SSS has provided some assistance through the CD/CSR program.

Assistance provided to the community should be adjusted to the basic needs of the local village community.


ASSESSMENT REPORT





Providing Salary for Madrasah Teacher (1 person) since 2009 (IDR 1 Million / Month)

Village Land Cash/Tanah Kas Desa (TKD) Program, same as scheme program, but the land used belong to village government.

Sulung Village. PT. SSS has opened job opportunities for local people. From Sulung Village there are about 50 villagers working at the Palm Oil Mill at Sulung Village and also at the plant nursing division. Assistance has been provided by the company to the village, among others:

Improvement of rural roads

Assistance in form of a tractor to clean up the Sulung Village Office construction site.

Village Land Cash/ Tanah kas Desa Program, same as scheme program, but the land used belongs to village government. This program has been running since 2007 and FFB produced has been supplied to Sulung POM

PT. SSS has provided some assistance through the CD/CSR Program.

Assistance provided by the company for the community should be adjusted to the basic needs of the local village community.


ASSESSMENT REPORT

SPO – 4006a.4 Halaman 49 Dibuat oleh Mutuagung Lestari untuk PT. Sawit Sumbermas Sarana


ASSESSMENT REPORT


Annex 1. Peer Review Report

Name of Reviewer:

I. General comments on the evaluation

No Issues and Comments Clarification/explanation TO BE FILLED IN BY MUTU

II. General comments on the inspection report


III. Specific comments on the proposed certification decision, including any reconditions, conditions or recommendations



ASSESSMENT REPORT


Annex 2. Result of RSPO Committee - RSPO Certification

No Input and Responses


ASSESSMENT REPORT


Annex 3. List of Stakeholder Contacted in the RSPO Certification Process

No Institution/Department Address Phone/Email Form of Contact

Date of Contact

1. Muhammad Sum (Secretary) Wahyu (Officer) Forestry Agency of Kotawaringin Barat

Jl. H. M. Rafii Pangkalan Bun 74112

- Post 30 Juli 2012

2. Sutowo (Officer) Agriculture Agency of Kotawaringin Barat

Jl. Pasir Panjang-Kumpai Batu, Pangalan Bun, Kalimantan Tengah 74114

- Post 30 Juli 2012

3. Fitri Environment Agency of Kotawaringin Barat

Pangkalan Bun, Kalimantan Tengah

- Post 30 Juli 2012

4. Labour and Transmigration Agency of Kotawaringin Barat.

Pangkalan Bun, - Post 30 Juli 2012

5. National Land Affairs Agency of of Kotawaringin Barat.


- Post 30 Juli 2012

6. Yayasan Orangutan Indonesia (YAYORIN).


- Post 30 Juli 2012

7 Yayasan Borneo Lestari Jl. Masjid No, 381, Kumai 74181, Kotawaringin Barat Kalteng

- Post 30 Juli 2012

8. Kusnadi (Head of Kenambui Village)

Kenambui Village - Interview 18 September 2012

-

9. Retno (Staff of Village Office) M. Yani (Staff of Village Office) Sulung Vilage

Sulung Village - Interview 18 September 2012

-

10 Rangda Village Rangda Village - Interview 18 September 2012

-


ASSESSMENT REPORT


DATE September 17 – 21 , 2012

TIME PROCESSES / CLAUSES TO BE AUDITED AUDITOR

PLAN ACTUAL

Monday, 17.09.2012

07.00-08.30

09.00-10.00

10.00-12.00

12.00-14.00

14.00-17.00

17.30 - 19.30

07.00-08.30

09.00-10.00

10.00-12.00

12.00-14.00

14.00-17.00

18.00 – 20.00

Traveling from Jakarta to Pangkalan Bun Opening Meeting Document Review:

Compliance with applicable laws and regulations (2.1; 2.2; 2.3) Break & Pray Continued of Document Review:

Compliance with applicable laws and regulations (2.1; 2.2; 2.3) Travel to PT. SSS Plantation Area.

Taufik Margani;

Oktovianus Rusmin; Ibnu Satria Prabudi;

Yudwi Wisnu

Rahmanto

Annex 4. Audit Schedule


ASSESSMENT REPORT




PLAN ACTUAL

Tuesday, 18.09.2012 08.00-12.00

12.00-14.00

14.00-17.00

08.00-12.00

12.00-14.00

14.00-17.00

Document Review (PT SSS/Sulung Mill and Supply Base) in e.g.

Documentation review e.g. Commitment to transparency (1.1; 1.2),

Compliance with applicable laws and regulations (2.1; 2.2; 2.3)

Commitment to long-term economic and financial viability (3.1),

Use of appropriate best practices by growers and millers (4.1; 4.2; 4.3; 4.4; 4.5; 4.6; 4.7; 4.8; 8.1; 8.2)

Environmental responsibility and conservation of natural resources and biodiversity (5.1; 5.2; 5.3; 5.4; 5.5; 5.6),

Responsible consideration of employees and of individuals and communities affected by growers and mills (6.1; 6.2; 6.3; 6.4; 6.5; 6.6; 6.7; 6.8; 6.9; 6.10; 6.11)

Responsible development of new plantings (7.1; 7.2; 7.3; 7.4; 7.5; 7.6; 7.7)

Supply Chain verification

Stakeholders Consultation

Break & Pray Continued of Document Review (PT SSS/Sulung Mill and Supply Base) in e.g.

Documentation review e.g. Commitment to transparency (1.1; 1.2),

Compliance with applicable laws and regulations (2.1; 2.2; 2.3)

Commitment to long-term economic and financial viability (3.1),

Use of appropriate best practices by growers and millers (4.1; 4.2; 4.3; 4.4; 4.5; 4.6; 4.7; 4.8; 8.1; 8.2)

Environmental responsibility and conservation of natural resources and biodiversity (5.1; 5.2; 5.3; 5.4; 5.5; 5.6),

Responsible consideration of employees and of individuals and communities affected by growers and mills (6.1; 6.2; 6.3; 6.4; 6.5; 6.6; 6.7; 6.8; 6.9; 6.10; 6.11)

Responsible development of new plantings (7.1; 7.2; 7.3; 7.4; 7.5; 7.6; 7.7)

Supply Chain verification


Yudwi Wisnu

Rahmanto


ASSESSMENT REPORT




PLAN ACTUAL

Wednesday, 19.09.2012 08.00-12.00

12.00-14.00

14.00-17.00

08.00-12.00

12.00-14.00

14.00-19.00

Field Visit PT SSS (Sulung Mill and Estates) Implementation of CD & CSR, Land Conflict, Boundaries, Conservation Areas, Best Practices, Worker Facilities, Health & Safety and Mill Operational. Break & Pray Continued of Field Visit PT SSS (Sulung Mill and Estates) Implementation of CD & CSR, Land Conflict, Boundaries, Conservation Areas, Best Practices, Worker Facilities, Health & Safety and Mill Operational.


Yudwi Wisnu

Rahmanto

Thursday, 20.09.2012

08.00-12.00

12.00-14.00

14.00-17.00

08.00-12.00

12.00-14.00

14.00-18.30

Field Visit PT SSS (Sulung Mill and Estates) Implementation of CD & CSR, Land Conflict, Boundaries, Conservation Areas, Best Practices, Worker Facilities, Health & Safety and Mill Operational. Break & Pray

Continued of Field Visit PT SSS (Sulung Mill and Estates) Implementation of CD & CSR, Land Conflict, Boundaries, Conservation Areas, Best Practices, Worker Facilities, Health & Safety and Mill Operational.


Yudwi Wisnu

Rahmanto

Friday, 21.09.2012

08.00-11.00

11.00-13.00

13.30-15.30

17.00-18.00

08.00-11.00

11.00-13.00

14.00-16.00

17.00-18.00

Preparing Report

Break & Pray

Closing Meeting

Travelling from Pangkalan Bun to Jakarta

Taufik Margani;

Oktovianus Rusmin; Ibnu Satria Prabudi;

Yudwi Wisnu

Rahmanto


ASSESSMENT REPORT


Annex 5. Glossary

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

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

ASEAN : Association of South East Asian Nations

B3 : Bahan Beracun dan Berbahaya (Hazardous Material Waste)

BOD : Biological Oxygen Demand

CPO : Crude Palm Oil

CBD : Convention on Biodiversity

OFI : Opportunity for Improvement

HCV : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Hak Guna Usaha. (Land Use Permit)

IUP : Izin Usaha Perkebunan. (Plantation Operation Licence)

IPAL : Instalasi Penyaluran Air Limbah (installation of waste distribution)

SSS : Sawit Sumbermas Sarana

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

Jankos : Janjangan Kosong (Empty Fruit Bunch)

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

KER : Kernel Extarction Rate

LC : Land Clearing

OER : Oil Extarction Rate

PHT : Pengendalian Hama Terpadu (Integrated Pest Management)

PK : Palm Kernel

PKS : Pabrik Kelapa Sawit

POM : Palm Oil Mill = Pabrik Kelapa Sawit

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

SOP : Standard Operating Procedure

S1 : Surveillance

ST 1 : Stage 1

ST 2 : Stage 2

TBS : Tandan Buah Segar (Fresh Fruit Bunches)

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

[ ]Stage 1 Stage2 [ ] - RSPO · 2014. 11. 2. · 1.8.2 OHSAS 18001:2007 IDII/01880 – SGS...

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