[ ]Stage 1 Stage2 [ ]Surveillance Assessment Report · Stage 1 [ √] Stage2 [ ] Surveillance...

PT MUTUAGUNG LESTARI

ASSESSEMENT REPORT

Sustainable Palm Oil Certification

[ ]Stage 1 [ √]Stage2 [ ]Surveillance Assessment Report

Plantation Manager : MINAMAS Plantation – SIME DARBY GROUP Plantation Name : PT. TAMACO GRAHA KRIDA Region and Country : Morowali District – Sulawesi Tengah Province

Certificate Code : MUTU-RSPO/018

Date of certificate issue : July 10th, 2012

Date of expired of certificate : July 10th, 2017

Assessment

date Report finalization

date PT Mutuagung Lestari

Auditor Checked by Approved by

ST1 25/04/2011 – 01/05/2011

09/05/2011 Deni A.Novendi (Lead Auditor);

Muardi Marwas; Oktovianus Rusmin; Falahudin

Reny Rustianingsih

Tony Arifiarachman

ST2 31/06/2011 – 08/07/2011

28/03/2012 Deni A.Novendi (Lead Auditor);

Muardi Marwas Oktovianus Rusmin Marsudi Eko Santoso

Reny Rustianingsih

Taufik Margani

S1

S2

S3

S4

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 Mutuagung on:

05/04/2012 29/06/2012

10/07/2012


ASSESSEMENT REPORT

SPO – 4006a.3 i Prepared by Mutuagung Lestari for Tamaco Graha Krida

TABLE OF CONTENT

FIGURE

Location Map of PT Tamaco Graha Krida 1

Operational Map of PT Tamaco Graha Krida 2

1.0 CERTIFICATION SCOPE 3

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Plantations, Mill and Hectare Statement 3

1.5 Description of Supply Base 4

1.6 Dates of Plantings and Cycles 5

1.7 Approximate Tonnage Certified 5

1.8 Other Certifications 5

1.9 Time Bound Plan 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 7

2.4 Stakeholder Consultation and List of Stakeholder Contacted 9

2.5 Determining Next Visit 9

3.0 ASSESSMENT RESULT 10

3.1 Summary of Assessment Report of the RSPO Certification 10

3.2 Summary of Assessment Report of Supply Chain Requirement 32

3.3 Checklist Conformity of Certificate and Logo Use 37

3.4 Summary of Time Bound Plan Verification of the RSPO Certification 38

3.5 Summary of Non Conformance, Correction Action Required, Observation and Noteworthy Positive Components

39

3.6 Summary of Arising Issues from Public, Organization and Auditor Response 71

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY 76

4.1 Formal Sign-off of Assessment Findings 76

ANNEXES 77

1. Peer Review Report 77

2. Result of RSPO Committee - RSPO Certification 78

3. List of Stakeholder Contacted in the RSPO Certification Process 79

4. Glossary 80


ASSESSEMENT REPORT

SPO – 4006a.3 Prepared by Mutuagung Lestari for Tamaco Graha Krida 1

Figure 1. Location Map of PT Tamaco Graha Krida


ASSESSEMENT REPORT


Figure 2. Operational Map of PT Tamaco Graha Krida


ASSESSEMENT REPORT


1.0 CERTIFICATION SCOPE

1.1 National Interpretation Used National Interpretation: Principles and Criteria for Roundtable on Sustainable Palm Oil (RSPO) of Republic Indonesia. May 2008; and Supply Chain Certification System, November 2009

1.2 Organization Information

1.2.1 Company name MINAMAS Plantation – SIME DARBY GROUP

1.2.2 Contact person Mohamad Pirabaharan

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

1.2.4 Tel. +6221 – 29926000

1.2.5 Fax. +6221 – 29922686

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification Mohamad pirabaharan

1.2.10 Date of Being Registered as RSPO member 8 September 2004

1.2.11 Number of employee 889

1.2.12 Contractor/Community/other workers

Contractors 13

Daily Freelancers -

1.3 Type of Assessment

1.3.1 Scope of Assessment Mill and estates

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate

PT. TAMACO GRAHA KRIDA

1.3.4 Number of management unit

One mill (Ungkaya Mill) and one estate namely Ungkaya Estate (UKE).

1.4 Locations of Plantations, Mill and Hectare Statement

1.4.1 Location of estate

Estate(s) Location

GPS

Latitude Longitude

Ungkaya Estate Ungkaya Village, Wita Ponda Sub district, Morowali District, Sulawesi Tengah Province

2° 12’ 40” - 2°17’27” 121°33’12” - 121°39’44”

mailto:[email protected]

http://www.simedarby.com/


ASSESSEMENT REPORT


1.4.2 Location of Mill

Mill Location

GPS

Latitude Longitude

Ungkaya Mill Ungkaya Village, Wita Ponda Sub district, Morowali District, Sulawesi Tengah Province

2°13’22” 121°33’49”

1.4.3 Maps Figure 1 & Figure 2

1.4.4 Country Indonesia

1.4.5 Region South East Asia

1.4.6 Village/Sub District/District/Province Ungkaya / Wita Ponda / Morowali / Sulawesi Tengah

1.4.7 Tenure

Private -

State 4,145 ha*

Community -

Based on Land Use Permit 06/HGU/1989 dated July, 15th 1989; Total areal statement 4,712 ha.

1.4.8 Hectare Statement

Total area 4,712 ha

Mature area 4,255 ha

Immature area -

Mill 19 ha

Nursery 4 ha

Emplacement 45 ha

Road, bridge, canal and Swamp 246 ha

Occupation 142 ha

1.5 Description of Supply Base

1.5.1 Estate

Estate Total Area (Ha)

Planted Area (Ha)

FFB (ton/year/ha)

Yield (ton/year)

% Supplied to Mill

Ungkaya Estate 4,255 4,255 22.11 94,107.92 100

Source: Actual production of 2009/2010.

1.5.2 Smallholder(s) and others

Supply Base Number of Members

Location Total Area (Ha)

FFB (ton)

% Supplied to Mill

Independent Smallholders

176 Pebatae and Atanaga villages, Morowali District

5,848 91,286.98

Other company - Ungkaya village, Morowali district

- 5,465.78

Total 96,752.76


ASSESSEMENT REPORT


*Independent Smallholders

1.5.3 Description of Mill

Mill

Capacity (tones/ hour)

CPO (ton) PK (ton) PKO (ton)

Out put OER Out put OER Out put OER

Ungkaya 40 44,661 23.40 8,856 4.64 - -

1.5.4 Product categories Fresh Fruit Bunch, Crude Palm Oil and Palm Kernel

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year Hectare Age (year)

1989 724 22

1990 526 21

1991 751 20

1992 471 19

1993 631 18

1994 533 17

1996 241 15

1997 378 14

Total 4,255

Average Year 19

1.6.2 Area planting after 2005 - Ha

1.6.3 New planting area after November 2005 – extension

- Ha

1.6.4 Harvesting Cycle

7 Days

1.7 Approximate Tonnage Certified

1.7.1 Production recovery of FFB 23.30 %

1.7.2 Production recovery of Palm Kernel 4.35 %

1.7.3 FFB 88,692 Tonnes/Year

1.7.4 Crude Palm Oil 20,665.236 Tonnes/Year

1.7.5 Palm Kernel 3,858.102 Tonnes/Year

*Source budget production 2011/2012

1.8 Other Certifications

1.9.1 ISO 9001:2008/ISO 14001: 2004 -

1.9.2 OHSAS 18001:2007 -

1.9.3 HACCP -

1.9.4 Others -


ASSESSEMENT REPORT


1.9 Time Bound Plan for Other Management Units

1.9.1 Time bound plan for other management units SIME DARBY Plantation Sdn Bhd.

Certification Status

(Nov 2011)

Strategic Operating Unit (SOU) Remark

Malaysia Indonesia

Certified 33 15 Certified until December 2011

EB Review 6 3 It has been reviewed by Executive Board RSPO

Audited 0 4 3rd party audit or external audit completed on July 2011.

Total SOUs 39 22


ASSESSEMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

Phone +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

ST2 The assessment team was consisted of: 1. Deni A. Novendi (Lead Auditor). Bachelor of Forest. Natural Resources conservation department special in

ecology and social. He involved in study of social economy of Citanduy-Cisanggarung watershed, Ciamis district, and East java. And also have experience within 13 years in forest planning and conservation on forest concession at Indonesia. Since 2003, he worked for independent certification body as auditor for forest sustainable certification (FSC and LEI scheme); Chain of study, ISO 9001 and RSPO. He audited for several companies. In Stage 2, he focused on environmental aspects.

2. Oktovianus Rusmin (Auditor). Bachelor of Social Politic, Anthropology department. Especially in Social Culture (social impact and conflict resolution) and HCVF. He involved as auditor for Forest sustainable certification (FSC scheme) and he has ever worked in Anthropology study centre of Indonesia University. He worked as advisor in the Forest Trust Indonesia. He involved in social impact study and HCVF identification on several palm oil plantations. Training who attended is forest management auditor, environmental management system ISO 14001 & SVLK auditor. In stage 2, he focused to verify land using legality and social (social impact, conflict and HCV 4, 5, 6).

3. Muardi Marwas (Auditor). Bachelor of Agriculture. In several times, he audited for Roundtable Sustainable Palm Oil Certification. He attended in lead auditor RSPO training and distribution quality management process - APMEA. In stage 2, he focused to verify best management practices and environmental.

4. Marsudi Eko Santoso (Auditor). Bachelor of Agriculture, Agro technology department. He attended in training of Management system ISO 9001-2008 and Roundtable sustainable palm oil lead auditor. And also he involved in several companies for RSPO assessment. Now, he works in independent certification body. In stage 2, he focused on verifying the best practices and manpower aspect.

2.3 Assessment Methodology, Progress, and Site Visit

2.3.1 Assessment Dates

ST2 Stage 2 conducted in June, 30th 2011 – July, 8th 2011

2.3.2 Estimate of person days to implement assessment

ST2

28 person days

2.3.3 Detail process of assessment

http://www.mutucertification.com/


ASSESSEMENT REPORT


ST2 Stage 2 aims to observe the implementation which have done by Tamaco Graha Krida (TGK) against the National Interpretation, Roundtable Sustainable Palm Oil (RSPO) of Republic of Indonesia. May 2008. The assessment conducted in 3 ways, namely; (1) document review, aims to observe completeness, validity and adequate of requirements document. (2) Interview, aims to collecting information deeply and (3) Field visit, aims to observe the implementation in field comparing with the result of interview and information got by document. Several of improvements recommendation in Stage 2 communicated to management (TGK) and also the result are used as verification list at Surveillance 1. All information obtained is recorded into checklist and become main attachment of the assessment report. The assessment process, as follows: 30/06/2011. Travelling to location. 01/07/2011. Opening meeting was conducted in Ungkaya Estate (UKE) office, attended by Research and development regional Kalimantan and Sulawesi, Plantation sustainable quality management region Kalimantan and Sulawesi), Manager of UKE, Manager of UKF, Doctor, Assistant of PSQM, Assistant Division I, Assistant Division III, Assistant Division IV, Assistant of Mill, Head of administration , Head of administration Mill and several other staff. Then, continued document review concerning legality and best management practices. 02/07/2011. Team carried out document reviewed in UKE office. Team focused to observe for environmental (handling of hazardous waste, HCV management), social (complaint handling, land dispute, manpower, socialization of reproduction protection policy) and best management practices (harvesting, spraying and pest and disease management).

2.3.4 Location of Assessment

ST2 Location 1. Salonsa Jaya village. Interview with member of Bukit Agro Makarti. Interview focused for the agreement between TGK and plasma, and also FFB payment mechanism to farmers. Location 2. Blok 54. Observation boundary pole number 09 in Block 54 and boundary pole number 11 in Division 1 Ungkaya estate, and also observation the condition of Lalangkai river which is complained by Ungkaya communities. The river indicating contaminated waste from Ungkaya Mill. Location 3. Laantula Jaya. Interview with head of village, secretary and leader of community concerning the process of settlement of land claim in Laantula jaya village. The land managed by TGK since 1997. However, Presently the area managed by Laantula Jaya Communities. There is an agreement No. 590/0185/ADPUM/VI/2011 stated that the communities could manage that area. Location 4. Ungkaya Factory. Observation of hazardous material handling, hazardous waste and OHS implementing. Location 5. Division I emplacement. Observation of hazardous material handling at diesel fuel tank, workshop, chemical storage and oil storage. Location 6. Blok 63, Division I. Observation of land application and controlling the water land quality using a control well. Location 7. Polopi River at Blok 27 Division I & Block 21 division 2. Observation of HCV management 4.1; 4.3 like barrier sign, increasing forest plants and put in a sign ‘no wild hunting’. Location 9. Division II office. Observation of announcement sign concerning protection of maternal and breastfeeding women, child worker, PPA using and price of FFB.


ASSESSEMENT REPORT


Location 10. Blok 59/ A 006. Observation and interview concerning land application using flatbed.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process. There were 27 personnel contacted within public consultation. Public consultation conducted by two ways, as follows:

1) Public Announcement in RSPO website. 2) Public consultation with stakeholder was separate in 2 locations on July, 04 2011. Consultation with

government and local NGO directly conducted in Morowali district. Second location was in Club House UKE, attended by local communities, head of sub district, head of village and other relevant stakeholder. The information obtained would be verified by the company.

2.4.2 List of stakeholder contacted

See annex 3

2.5 Determining Next Visiting

Next visiting will be determined after this report reviewed and approved by RSPO Secretariat.


ASSESSEMENT REPORT


3.0 ASSESSMENT RESULT

3.1 Summary of Assessment Report of the RSPO Certification

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

The company has a SOP No. RSPO/B.4.7/TGK dated on June 1, 2009 regarding Request for Information which describes the flow of information handling processes. Request for Information Number RSPO/B.4.7/TGK SOP has been revised (revision 01 dated 05.07.2011) where clause 5.9 and 5:10 ensure that all information document requests and responses will be recorded into a file and Outgoing Mail Inbox, and stored at least 1 (one) year. In the period of May-June 2011, recorded 11 Mail-in of local government letters to company officials, generally in the form of requests for help. The observations, shows the company has provided information to interested parties in the form of outgoing mail files, and controlled, recorded and stored, sample letter out: (1) Introduction of the Action Plan No.33/TGK-UKF/SP/VI/11 Visits Department of Environment, (2) No. SP. Certification test 31/TGK-UKF/SP/IV/11 about noise and air pollution (letter No.341/TGK-UKF/VI/11), (3) Outgoing letter No. 152/TGK-UKF/I/11 to the Department of Manpower and Transmigration of Morowali District, subject P2K3 Reports 4th Quarter (period October-December of 2010).

Full Compliance

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

Company documents are available to the public and regulated in the SOP Request for Information (RSPO/B.4.7/TGK) dated June 1, 2009 which describes the procedures for handling requests for information (Chapter V), list the type of information that can be made publicly available has been presented in Section VI of SOP No. RSPO / B.4.7 / TGK Revision 1. Such as: EIA document, document HGU, the implementation of safety documents, recording the implementation of Corporate Social Responsibility. Request for Information No. RSPO/B.4.7/TGK SOP has been revised (revision 01 dated 05.07.2011) where clause 5.9 and 5:10 ensure that all information document requests and responses will be recorded into a file and Outgoing Mail Inbox, and stored at least 1 (one) year.

Full Compliance

PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

The Company has a documented system that contains the legal requirements that must be fulfilled by the company in the form of the document Regulatory Compliance Evaluation Checklist, which contained the information of regulations or


ASSESSEMENT REPORT


articles, descriptions of compliance status and evidence of compliance. Example: the requirements of Article 50 paragraph (1) PP. 41 year 1999 concerning the obligation to submit reports of monitoring results of air pollution to local authorities. Documentary evidence that ambient air monitoring results submitted to the District Environment Office of Morowali. In addition, it has been found in the field that the following matters are not fully complied with applicable regulations though the company had attempted to do so:

1. The land use permit for 134 ha of area located in Division IV is still undergoing processing by the Land Use Agency though it has the necessary recommendation from the Regents of Morowali Number 525.26/SK- 0064/DISHUTBUN/III/2011 dated March 22, 2011.

2. Reports on the implementation of the RKL / RPL semester I and II period 2010 to the Environment agency, Morowali District on June 24, 2011.

3. The company’s work on settling boundary issues and planting of buffer zone in block 21 and block 27 (Sungai Polopi buffer zone) were still in progress at the time of the visit .

4. There is no permit of temporary warehouse storage that contains the container of agrochemicals.

5. Application storage of lubricants, hydraulic oil and Diesel Fuel Spilled is not in accordance with Kep-01/Bapedal/09/1995 on Procedures and Technical Requirements for Waste Storage and Collection of B3.

6. Storage and management of B3 waste has not been implemented in accordance with regulation.

7. Did not conduct monitoring of soil erosion in accordance to PP. 150 of 2000.

The Company has a documented system that contains the legal requirements that must be complied by company in the form of the document Regulatory Compliance Evaluation Checklist.

2.1.1 Non-conformance is categorized CFA, See CAR-2011.05

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

Tenure of PT Tamaco Graha Krida evidenced by documents HGU 06/HGU/1989 dated July 15, 1989, which is issued by BPN Poso, valid until 2024, the area of 4,145 ha. The area is divided into 3 letters Measure, namely: (1) Letter measuring 124 Date 12/09/1989 - area 2,692 ha, (2) measuring 125 Letter date 09/12/1989 - covering an area of 610 ha, and (3) Letter measuring 126 dated 12/9/1989 - 843 ha area. The 2011 area statement shows that the total area of TGK is 4,712ha, giving a difference of 567ha against the figure in the HGU certificate. Senior Manager UKE explain the difference between the statement area (4712 ha) with an area of HGU (4145 ha) because of double counting of the infrastructure in the detail area statement. However, this explanation cannot be proven by the results of the measurement data and superimpose map of their measurement results. In the case of excess acreage, Chief Administrative of Regional Land Agency Office of Morowali explains, TGK should submit it to the authority concerned (Regent) to be legally processed under the appropriate regulations. Observation and Verified on 01/12/2011 The ± 567 ha is still in the process of applying for HGU. The company has proposed a perimeter survey (cadastral) through letter (09/UM/TGK/XI/2011) dated 24 November 2011 in the village of Laantula Jaya, Wita Ponda Sub district. These letters


ASSESSEMENT REPORT


was submitted to the National Land Agency of Sulawesi Tengah Province.

At the time of the audit, the company showed Land Permit of PT TGK in Wita Ponda and Bumi Raya Sub-District, Morowali District, number 525.26/SK.0064/DISHUTBUN/III/2011, dated March 22, 2011, the area of ± 12,289 ha (New Permit). It includes the area of 1997 planting, totalling 134 ha in Block 140-149, in Laantula Jaya village. Referring to Article 15 of the Regulation of the Minister of Agriculture of Republic of Indonesia 26/Permentan/OT.140/2/2007, the new Land Permit is considered to have not quite enough legal power to claim ownership over the land.

As set forth in clause V BPN, the company is responsible for carrying out regular boundary pole maintenance 3 times a year. Pole maintenance procedures 061/RSPO-PPBPN/2011 clauses 5.1 explain that the pal on the boundaries should be

maintained according to the position of markers on the map as attached in document HGU.06/HGU/BPN/89. Pals BTS 09 and BTS 11 were observed to be in good condition and well maintained. However, it is recommended that the company should keep pole boundary documents (Pole Books) as mentioned in the monitoring of position of pal limits.

TGK have shown agreement between PT TGK and the People's Alliance party sues, dated May 18, 2011 related to the settlement area of the Laantula Jaya Village as ± 134 ha. The document was signed by the Senior Manager of UKE, representatives of the People's Alliance Sues, and acknowledged by the Head of Wita Ponda. In essence, both parties

have agreed to invite the Management of TGK Head Office which is authorized to make decisions. The agreement allows the company to show documentary evidence as follows: 1. Record of agreement between PT. TGK with the People's Suing Alliance and known by Head of Wita Ponda sub

district, dated May 18, 2011. In clause 6 explained that the Head of Ungkaya SOU asked time to bring the ranks of management of PT. TGK Centre which was authorized to take decisions on acreage HPL of Laantula Jaya village, within two weeks. For point 6 (six), if within 2 (two) weeks, there is no realization from the management of PT. TGK, then the villagers of Laantula Jaya will do harvesting in the area of 134 Ha.

2. Minutes of Meeting between Minamas Management Group (General Manager / PSD Kalimantan-Sulawesi), Staff of PT. TGK with Head of Morowali District, dated May 30, 2011 regarding the settlement of land claims for 134 ha in Laantula Jaya village, Sub district of Wita Ponda, District of Morowali, it was agreed with the following points :

a. PT TGK will find a replacement area covering 134 ha on the new licensing of PT. TGK.

b. For the three villages: Laantula Jaya, Emea, and Sampeantaba will be given assistance under the company’s CSR program according to requirements of each village and the company’s ability to afford.

3. Letter from the Regional Secretariat of the Morowali District dated on June 13, 2011 590/0185/ADPUM/VI/2011. The letter contained::

a. Matters regarding the management of the 134 ha of HPL Laantula jaya area.

b. Technical of using HPL 134-ha area managed and implemented by Head of Witaponda Sub district to be returned to the community and utilization oil palm plantations, is given to the Village Laantula Jaya, Sampeantaba Village and the Emea Village Sub district of Witaponda under the coordination of the monitoring and guidance by the Head of Plantation Agency.

4. Letter from District Parliament of Morowali No. dated June 22, 2011.590/136/DPRD/VI/2011 containing the points:

a. Palm management activities over an area of 134 hectares held by Morowali Regents decree Number: 509/0815/ADDUM/VI/2011 dated June 13, to be temporary suspended, while waiting for better resolution.

b. Local Government together with Parliament to discuss ways of coming up with a better and safer solution for the problem mentioned above.

5. Recommendations from local parliament of Morowali dated June 24, 2011 Avg.525.26/145/REK/DPRD/VI/2011 related to problem of land HPL 134. The essence of the recommendations is that the Local Government should


ASSESSEMENT REPORT


immediately discuss the steps for solving the problem besides the formulation of management policy as mentioned above with Parliament within one week after the release of this letter.

Interviews with the head of Laantula Jaya village and also the former head of village have revealed that the 134 ha claimed by the village community of Laantula Jaya is now managed directly by representatives of the villagers based on a letter from the Regional Secretariat of the Morowali District dated June 13, 2011, letter no. 90/0185/ADPUM/VI/2011. It was also governed by the agreement between the Sampeantaba Village and Emea Village (as the Main Village of Laantula Jaya before division) under the coordination of Head of Witaponda sub district. The final outcome was based on agreed share proportions of 10% to Emea Village, 15% to Sampeantaba Village, 15% to help the construction of the Islamic Centre (The Morowali local government) and 60% to Laantula Jaya Village.

Document on resolution of conflict, SOP 059/TGK/2010 is available and the clause 5:16 expressly explained that the settlement of the conflict would be done as soon as possible through a mechanism that is acceptable to all parties, examples of which are as follows:

1. Record of compensation negotiations for the land in Block 4 and 7 covering about 8.75ha. The record dated July 19,

2003 was in the form of Minutes of agreement deliberations between Sudirman and the management of PT. TGK,

acknowledged by the Head of West Bungku.

2. The receipt of payment from PT TGK management to Sudirman is IDR 10,000,000.

Observation and Verification on 01/12/2011

TGK has been able to show tenure documents for 4,712 ha which is inclusive of the 4,145 ha with HGU. The difference of ± 567 ha is in the process of obtaining HGU.

TGK has proposed a perimeter survey (cadastral) for ± 567 ha in the village of Laantula Jaya; Wita Ponda Sub District through letter 09/UM/TGK/XI/2011 dated 24 November 2011 which was submitted to the National Land Agency of Sulawesi Tengah Province.

2.2.1 2.2.2

Non-conformance is categorized Minor, See CAR-2011.08 Non-conformance is categorized CFA, See CAR-2011.09

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

The company has a document of HCV identification, including HCV 4 - provide natural services area; and HCV 5 - areas that have important functions to fulfil the basic needs of local communities (e.g. fishing, timber extraction). These locations have been mapped on a scale of 1: 50,000 so that they can be clearly identified on the map. Identification of HCV indicates there is a recognition of traditional rights, and also supporting evidence in the form:

1. Minutes of discussions with head of village on 1-5 December 2009, explaining the presence of protected wildlife, the management of HCV and prohibition of illegal fishing.

2. Public Hearing for HCV on January 12, 2011, was attended by 21 participants.

3. The delivery receipts of HCV identification report to the parties on June 20, 2011 (Environmental agency, Plantation agency, Morowali local government).

Full Compliance


ASSESSEMENT REPORT


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

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

Budget Presentation and Projection 2012-2014 of PT TGK is available. The plan and realization contains: Actual and estimated total production per year and per ha, Harvest cost, Field maintenance (fertilizing, pest and disease management, road maintenance, weed control, maintenance of boundaries, land preservation, sanitation & pruning), labour, non-crop capital, analysis of vehicle running accounts (vehicles, heavy equipment), wages, the total cost analysis, general cost analysis (estate administration - staff, license , building maintenance, Environmental safety and health; road and bridges; Labour overhead – staff house’s maintenance, medicine, social activities and transport). And also a Total cost analysis of Ungkaya Factory (UKF) - period 2010/2011-2013/2014 contains FFB processed (163,189,120 kg), CPO (36,349,443 kg), PK (7,914,672 kg); OER 22.27%; KER 4.85%). There are recommendations contained in the Plantation Advisory of Minamas no.UKE/2/09-10. In the documents outlined on replanting program will be implemented in stages as follows: year 2012 (239 ha), 2013 (245 ha), 2014 (237 ha), 2015 (306 ha), 2016 (288 ha), 2017 (375 ha), 2018 (350 ha), 2019 (395 ha), and 2020 (186 ha). The Head administration of Ungkaya estate explained that, the initial replanting plan moved forward to the year 2011 and expected the land preparation started in October 2011. Regarding to the replanting plan, the company was advised to provide the environmental analysis document, and incorporate the results of monitoring it’s into the implementation RKL / RPL report.

3.1.2 Non-conformance is categorized CFA, see CAR-2011.66

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

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

Standard Operating Procedure for estate is available, which consists of: a. Agricultural Reference Manual-110/EST-ARM/08, of Minamas Plantation, ratified on August 19, 2008 by the CEO

(Franky Anthony). No Copy: 20.11.12, Distribution date 22 December, 2008. Comprising: Plant Materials, Seeding, Replanting, land preparation, Plant Maintenance, Fertilization, fertilization of immature plants, fertilizing using empty bunches, ablation, Standard maturity, crop cycle, quoting loose fruit.

b. SOP document, manual Agronomic Practices - Oil palm, a member of Guthrie Berhad December 1, 2004 that contains Nursery, land preparation, soil and water conservation, construction and maintenance of roads / bridges, Legume planting, Palm planting, censuses plant, weeds controlling, pests and diseases, pesticides and its management, fertilizing, pruning, harvesting, transport management, peat lands, and administration.

c. SOP document for Palm Oil Factory – Techniques Guidelines for palm oil factory. These guidelines contain receiving fruit, sterilizing, separating, mixing, pressing, clarification, and the separation of seeds, kernels until the CPO storage (storage). SOPs are controlled and documented.

The company conduct Internal Audit 2 times a year, both the estate and factory by the Internal Audit Department and the Plantation Advisor from Kuala Lumpur. In addition, the technical inspection conducted every month by PSQM related quality of products; and P2K3 examination by Assistant PSQM.

The results of all operations summarized in monthly Report, for example: Monthly Report of Ungkaya POM available up to March 2011. The report contains the realization, among others the Production and Delivery: Analysis of Quality, Loses and Applications; and Production Costs.

Full Compliance


ASSESSEMENT REPORT


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

The pre soil survey and evaluation of land suitability has been done in 2005. The soil is classified into 3 sub classes. However, in order to obtain more representative analytical results against the actual ground conditions, it is advisable to conduct a detailed soil survey. Research staff explained that regular leaf analysis is carried out every year and the results are used as basis to formulate and provide the annual fertilizer recommendations. There is The report of Leaf Analysis Results for Ungkaya Estate 2010. Based on the Letter to the Chairman SOU No. MRC. 034/RST-BJB/05/2011 dated May 12, 2011, detailed soil survey has been scheduled in 2012 and feasibility study in August 2011 (priority for planned replanting areas). The company implements both organic (empty bunch and land application of what?) and inorganic fertilizer applications. Based on the statement of the report period of July 2010-March 2011. Empty bunch has been applied in the area of 1,375.92 ha – 27.771.39 tons consisted of Division I (340.55 ha -12,854.89 ton), Division II (917.11 ha – 10,381 ton), Division III (24.85 ha - 936 tons), Division IV (93.41 ha – 3,599.5 tons). EFB applications based on the level of soil fertility and the recommendation of the Division of Research so that the application is not the same dose. The liquid waste from processing in the factory applied to the land after getting treatment at 7 ponds. Based on recordings of wastewater application, the application block Division I do in Block 49, 50, 57, 58, 59, 62, 63, and 67.

4.2.1 Non-conformance is categorized Minor, See CAR-2011.14

4.3 Practices minimize and control erosion and degradation of soils.

The marginal land was categorized in class N1 (not suitable / currently not Suitable) and N2 (was incompatible / Permanently not Suitable). Based on soil survey results and evaluation of land suitability in 2005, Marginal land was not found in the PT TGK area. The soil survey and land suitability evaluation conducted by the Minamas Research Centre (MRC), in October 2005. The survey results also showed that the nutrient content on this area classified as low to very low. Improvement of soil fertility through increased soil organic matter, to improve pH, increasing cation exchange capacity, and permeability. Based estate report, period July 2010-March 2011, empty bunch has been applied in the 1,475.29 ha – 31,686.89 tons consisted of Division I (340.55 ha – 12,854.89 tons), Division II (917.11 ha – 10,381 tons), Division III (24.85 ha - 936 tons), Division IV (93.41 ha – 3,599.5 tons). Road maintenance program is available on the company's annual budget. Estate manager and head of administration stated that the road maintenance program is primarily intended to facilitate the FFB transport and minimize soil erosion and degradation. Type of road maintenance done is compaction and improvement of drainage (ditch). Evidence of good road maintenance and presence of relevant soil conservation practices were observed during the field visits. Implementing of maintenance of road drainage and water disposal drainage to the estate area (not flowed directly to the river). Carry out maintenance of road drainage and drains system that flowed into the estate area (not discharged to the river directly). The soil map of the estate indicates there is no peat in the plantation and this was confirmed by field observations. Based on the results of soil surveys and field observations that the physiographic area known to have relief TGK slope between 0-30%, and average rainfall is 2340 mm / year (2007-2011). Management strategies in areas with a slope of 8-30%, among others: (1) is done by maintaining vegetation under and perform selective weeding, (2) making a patio or silt-pit, (3) implementation of the U-shaped Frond stacking, (4) application of empty bunch.

Full Compliance

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

There are some policies to protect the flow of water and the buffer zone, such as: HCV identification document recommended buffer zone in river as a High Conservation Value, and also guidelines for Sustainable Plantation


ASSESSEMENT REPORT


Management 724/TQEM-SPMS/09, setting the buffer zone in big river of 100 meters (left right) and in creek of 50 meters (left and right). The company has demonstrated the realization of the buffer zone boundary at the site, including the border area of the Ungkaya river in block 151. The company has the plantation managed to mark out the buffer zones for all the rivers and streams for example in Block 21 and 27. During the visit to block 21 and block 27 of Division II (buffer zone Polopi River) it was observed that buffer zone boundary marking with yellow paint on the palm trunks was still in progress. In addition, the company also plants forest plants (e.g. resin - Agathis Damara; linggua - Pterocarpus indicus, mahony - Swietenia sp, etc). The company has a document of river water quality testing and control of pollution in accordance with PP. 82 in 2001. Environmental parameters measured were pH, copper, cadmium, Lead, Ammonia, Nitrate, BOD5, COD, Chloride, and oil. Tests conducted by OHS Centre Makassar on 21-25 March 2011. The Sample was qualified class II water quality standards. Mill effluent monitoring carried out monthly by the OHS Centre Makassar, recent measurements carried out in March 2011. For example: On February 2011 pond 5 (BOD5 306.27 ppm whereas quality standards pp. 250 – Environmental decree Kep-51/MENLH/10/1995); pond 7 (BOD5 - 331.79 ppm; COD 522.27 ppm BMA 500 ppm). Wastewater BOD measurement results in January to March 2011 in pond 7 (last pond), the following: - January: 202.24 ppm; pH 8.0 - February: 331.79 ppm; pH 8.0 - March: 177.94 ppm; pH 8.0 The Company did not dispose of the mill effluent into the river but use it for land application. The land application was not in accordance with permit. The results of field observation indicate that the application of liquid waste performed in block 50, 57, 58, 59, 62, 63.67, while Part 1, point (2) of Head of Morowali Decree 660.06/022/KLH/II/2009 only allows the application of liquid waste in blocks 62 and 49 Division 1. Based on field Visit in Blok 63, Division I, the observation of land application and controlling the water land quality using a control well. On June 7, 2011 the company filed a new permit application to the Head Office of Environment, through its letter 09/UM/TGK/VI/2011, but according to the explanation of Head of Environment Morowali District, there are a number of administrative requirements that have not been complied. Head of environmental department of Morowali District justifies it. The company is less proactive and not comply some of the provisions required by Act No. 32 of 2009. Water monitoring contained in the Process Control report, made a monthly periodical. Information presented: months of usage, Total water using for processing, cleaning the factory, Bahumbelu bulking station, office. For example: on December 2010 the use of water for the 7,570 m3, FFB processed was 16,127.742 tons. Record of water use is available, updated on June 2011 recorded the use of water as follows: - Processing: 128,817.20 m3. - Cleaning plant: 172,133.19 m3. - Bulking station: 1,467.67 m3. - Domestic: 21,342 m3. Total July 2010-June 2011: 323,760.06 m3. The mill makes comparison analysis on the water use per tonne FFB with previous years for determines budget for next year's aimed at reducing water usage.


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

Pest control program in the form of planting of beneficial plants for natural enemies such as Cassia cobanensis, Turnera subulata and Antigonon leptosus was available. Programs and procedures for detection of Setothosea asigna nettle caterpillar and rat monitoring were also sighted. MRC staff explained that rodenticide by the name of Ratgone is used for rat


ASSESSEMENT REPORT


control in TGK as the use of barn owl is not allowed by the authorities of Morowali district. Total quantities of Ratgone applied in October 2010 were: 258.47 kg (Division I), 450 kg (Division II), 355.52 kg (Division III) and 490.25 kg (Division IV). The application was based on data of damage census carried out in August 2010 in Block 8 (1989 planting) of Division I, Ungkaya estate. Early detection of rat attack is also routinely conducted twice a year. The company has a monitoring records of pest infestation, (e.g. rodents) carried out every month (Documents Division I UKE, May 2011) and planting beneficial plants. Based on realization of planting data Division I Ungkaya Estate, Turnera subulata 9,225 meters (Main road); 2,000 meters (Collection Road) and Casia Cobanensis planted is 681 meters (Main road); 12,572 meters (collection road). The company has a record of pesticide used including the monitoring of toxicity (the active ingredient / hectare). Types of chemicals used are: Ratgone, prime up and starane. There is a decrease in the amount of chemical used (prime up and starane) period 2010 to 2011. Pesticide toxicity monitoring data show the use Ratgone (a.i. Brodifacum) 0.000023 kg active ingredient / ha (October 2010); 0.000026kg active ingredient / ha (November 2010); 0.000021kg active ingredient / ha (May 2011). The Company has trained and determining Agus (Division I), Siti (Division II), Silviana (Division III), Baco (Division IV) as a foreman in charge of pest management and integrated pest management.

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

The authority approved and registered agro-chemicals used by company are: :

Decis 25 EC, active ingredient: deltamethrin, 25 g / l; Registration: RI.387/11-2007/T.

Kenlon 480 EC, active ingredient: Triklopirbutilester Registration: RI.2433/5-2005/T.

Prima up 480 SL, active ingredient glyphosate Isopropilamina; Registration: RI.1779/11-2007/T.

Basta 150 SL, active ingredient: Ammonium glufosinat; Registration: RI.1113/12-2008/T.

Spontaneous 400 WSC, active ingredient: dimehipo 400 g / l; Registration: RI.1206/II/2000/T.

Meta prime 20 WG, active ingredients: Methyl metsulfuron 205; Registration: RI.1897/2006/T.

Ratgone 0.005BB, active ingredient: Brodifakum 0005%; RI registration. 1212/8-2007/T.

Starane (RI 854/7-2009/T)

Lindoming (RI 867/5-2006/T) and Karmex (RI.51/9-90/T).

Records on the types of pesticides used including their respective active ingredients were available, for examples: Prima up - isopropilamina glyphosate; Starane - fluroksipir; Ratgone - brodifacum; Meta prima - metsulfuron methyl. Based on the data available in the records, the rate of usage of Prima up and Starane showed a decline this year compared to the same period last year. For example :

Prima up, the active ingredient glyphosate Isopropilamina; total consumption (1,074.44 litters): The area of the application

area of 5,372.22 ha to 2 times the rotation; Dose 0.2l/ha; maintenance activities Types of places Harvest collecting /

harvesting Pathway.


ASSESSEMENT REPORT


Kenlon 480EC; active ingredients: Triklopirbutilester ethyl ester; Total consumption 4.90 litters; the area of 24.50 ha

application area for the first time rotation; dose of 0.2 l / ha; type of Harvesting Pathway maintenance activities.

Starane 25 EC; amount of 85.96 litters consumption; The area of the application area of 5,372.22 ha to 2 times the rotation;

dose of 0016 l / ha; maintenance activities places Harvest collecting / harvesting Pathway.

Ratgone 0005; Brodifacum 0005% active ingredient, 1,800.21 kg Total consumption; the area of 4,255.82 ha application

area for the second rotation time; Dosage 0:42 kg / ha; Types of control rat.

Decis 20 EC; active ingredient: deltamethrin, amount of use of 11 litters; The area of the application area 55 ha; dose of 0.2

l / ha; type of caterpillar fire control activities.

The application of Ratgone was as follows :

In October 2010 used 1,545.66 kg; area of application 3,348.02 ha; dose 0.46 kg/ ha; the amount of active ingredient 0.000023kg / ha.

In November 2010 used 482.96 kg; area of application 903.87 ha; dose 0.53 kg / ha; 0.000026 kg Number of active ingredient / ha.

In May 2011 used 1,296.31 kg; area of application 3,045.27 ha application; dose 0.42 kg / ha; 0.000021 kg Number of active ingredient / ha.

There were evidence and records of training on the technical aspects of chemical handling and its storage as exemplified by the attendance list dated May 24, 2011. Topics of training include ways to use various spraying tools correctly, proper clothing, basic knowledge on chemicals and first aid for accidental poisoning. The instructor of the training was Dr. John Mianto Alsim (company’s doctor). There was also a letter UKE-GM Purch/678/VI/11/S dated June 30, 2011 concerning the invitation of an outside party (a pesticide manufacturer) to provide some training to the staff and workers. Agrochemical waste including used pesticide packaging was stored in the B3 warehouse at the mill which has a permit issued by the Environmental Agency, Morowali District. There were efforts to improve the management of packaging wastes of pesticides in accordance with the required regulations;

Waste B3 (old batteries, cans, Ollie) from estates delivered to a temporary waste storage area located at the mill.

Used packaging of pesticides was perforated at the bottom so that it cannot be used by anyone to store water for drinking or cooking purposes. They are collected and temporary stored in the B3 warehouse at the mill.

With regards to the use of Ratgone with Brodifacum active ingredient, the Senior Manager has issued a memorandum No. 07/TGK-UKE/SM/VII/2011 dated July 6, 2011 instructing that the use of Ratgone must be on selective basis. In addition, the memorandum also stated that other types of rodenticides that do not contain Brodifacum (WHO class 1A or 1B chemical) active ingredient should be purchased in future once the Ratgone stock in the B3 warehouse of Ungkaya Estate is finished.

There was evidence of scheduled health check-up carried out by the company doctor on employees who apply agrochemicals. The check-up records for the May 2011 - April 2012 period, contains information on the time and type of medical examinations conducted by the doctor. Check up for spraying and fertilizer application workers was performed in May and June 2011. So far, no serious illness arising from agrochemical applications were detected on the workers concerned. The few common sickness often complained by the workers was asphyxia, chest pain, cough, dizziness and muscle cramps.

Related to the protection of women workers, the company made several improvements including:

As a precautionary measure to avoid direct contact with agrochemicals, the company has put up signboards to remind that pregnant and breastfeeding female workers are prohibited from applying fertilizers or working as


ASSESSEMENT REPORT


pesticide sprayers. The signboards were put up within the office compound of each Division.

By publishing Memorandum No.605/TGK-UKE/Pers/V/2011 regarding the prohibition of pregnant / breastfeeding female workers to work in the field, it indicates that relevant and appropriate identification, report and evaluation of the issue have been duly carried out by the Management.

Sri Astuti has been hired as sprayer (after convicted not being pregnant/ breastfeeding).

From the list of female workers who are identified as pregnant / breastfeeding, it was found that Mary M (fertilizer worker-Div III) has been transferred to work as a baby sitter in the childcare centre while Ernawati (wiping worker-Div III) was assigned manual maintenance work for predator host plants.

Interview with Ernawati (7 months pregnant) confirmed that pregnant and breastfeeding female workers are not allowed to apply fertilizers or work as sprayer. Currently, her works consist of planting and maintaining beneficial plants, carry out census on Setothosea sp and baby-sit. Her monthly wage is IDR 927,000 exceeding the minimum wage of IDR 827,500.

Full Compliance

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

There was a Health and Safety Policy Minamas Plantation dated May 31, 2007 set by the Group Head Plantation Indonesia and also SOP. 711/TQEMS-P2K3 dated May 31, 2007. Evidence of implementation:

There are Occupational Health and Safety Committee (P2K3), as the team responsible for occupational safety and health program. P2K3 has been endorsed by the Head of Social, Labour and Transmigration Morowali regency, No. 188.4/116/17.2/SNT/V/2011 dated May 9, 2011.

There is a Work Accident Report contains the time of the incident, the victim data, accident factors, the estimated losses, causes of accidents.

The evaluation of hazards per station, potential hazards, possible accidents, and recommendations.

Inspection of cleanliness.

P2K3 report published quarterly and delivered to the Head of labour agency, Sulawesi Tengah province, which was signed by the Chairman of P2K3 (Mariadi) which contains: Report of P2K3, P2K3 Organizational Structure, Work Accident Report|, Recommendations of the P2K3 to the company, work environment chemical in PT. Tamaco Graha Krida - Ungkaya factory, cleanliness and lighting Inspection Report, safety and health inspection report, inspection Minutes employees of PT Tamaco Graha Krida – Ungkaya Mill.

The committee has arranged coaches Occupational Safety and Health (P2K3) as a team who are responsible for occupational safety and health programs in the area ungkaya factory. P2K3 has been endorsed by the Head of Department of Manpower and Transmigration Social District. No. Morowali. 188.4/116/17.2/SNT/V/2011 dated May 9, 2011.

Insurance is available for non-staff workers is Jamsostek and Manulife. Manulife covered for old age, while the Jamsostek covers accidents, death and old warranty. Cost of health insurance is fully borne by the company. There was evidence of insurance payment (receipt of dues) made for all the employees of Ungkaya Estate in May 2011, amounting to IDR 52,809,582 for 761 workers. Interviews with Ernawati showed that Jamsostek and Manulife insurances were paid by the company.


ASSESSEMENT REPORT


Medical checks up for employees working in high-risk stations were general. The company has demonstrated schedule of medical checks up for the workers of the factory (August 2011). Minutes of Periodic Health check up was available for the period of July 9, 2010 and 5 April 2011 which contains the information, names, stations, physical check up, and recommendations. Check up for six employees, respectively: Harjanto (engine room), Benjamin (boiler), Iferson (water treatment), Satria (electric), Harjanto (boiler), M. Salam (processing). Check up includes examination of Blood Pressure, Body Weight, Body Temperature, and heart rate. Check up by Dr. John MA. Preferred medical checks is conducted to spraying workers and operators while the medical check for all workers general check up then if there are any health complaints will be further check up. The Doctors who perform medical check on PT. TGK has had Hiperkes training and Safety working certificates for Doctors Company/Industry. A record of risk analysis for OHS programs was available in the form of HIRAC (Hazard Identification Risk Assessment and Control) for each work location, containing the information: The location of work, Hazard Potential, Possible Accidents, and Mitigation. For example: Station Press, Potential Hazards (slip, stream burns, hot water ejected), the possibility of an accident (minor injuries, disabilities and severe injuries), countermeasures (installation of warning signs, use safety shoes, gloves, helmets).

OHS programs of UKE period of May 2011 – April 2012 have been compiled which includes briefing, audit, meeting P2K3, simulation of fire, hygiene inspection, check up and counselling by physicians. Records of OHS training programs in the form attendance list, photographs, certificates, and training materials, i.e.

a. Emergency and fire response training held on June 17, 2011. Basic training in fire prevention materials and First aid handling was attended 26 people.

b. External Training, Ungkaya Mill on 20 April 2011. Automatic control system level deaerator, drum boiler and sterilizing, was attended 8 people.

c. External Training Ungkaya Mill on April 29, 2011. Power pack hydraulic system was attended by 7 people.

d. Boiler water usage and boiler water treatment was carried out on May 31, 2011 and was attended by 7 people. The training in cooperation with PT. Nalco.

There was evidence that the company has conducted an emergency response for land burning on June 18, 2011 which was attended by 21 participants for assistants, managers, supervisors, and operators. For example: K Amzar Tattoos (Senior Assistant), DJ Tenny (Head of Security), Kadek Adi (Crania Agronomy), etc. The Evidence of implementation of emergency response simulation was also available in the form of instruction execution, the process of fire fighting scheme, and photographs.

First-aid box was available at locations easily accessible when needed, for example in the division office, club house, workshops, schools and central offices. The First aid boxes were found to be fully equipped with gauze, bandages, plasters, cotton, masks and various types of medicine. The company also provides personal protection equipment (PPE) which

includes helmets, goggles, eye glasses, masks, ear plugs, Ear Muff, Avron, gloves, and safety shoes. While the protection of working equipment was available for example Chisel Cover. The company has shown evidence of cause analysis for occupational injuries for every workplace accident. An example of which was a case dated 8 April 2011 concerning Herman (loader Division II) whose left calf was hit and injured by fallen FFB. Subsequent investigation of the case revealed that Herman was loading FFB above the height of the truck.

Full Compliance

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

The company has demonstrated that it has planned and carried out training programs that suit the training needs of the employees, such as:


ASSESSEMENT REPORT


a. SOPs socialization, HIRAC, Target Work and general training is all workers (RSPO training, Occupational safety and health training, and Environment and training).

b. Fertilizer Training Program in August 2010, realized at date of June 11, 2011, training materials: SOP fertilization, Safety Briefing, HIRAC, Fertilization. Accident analysis UKE implemented in the Division II by PSQM Assistant and Senior Assistant UKE.

c. Counselling and Guidance Plasma Program 2008-2010, 2011/2012, including socialization FFB pricing, Fertilization and spraying technique, grading, harvest schedules, Guidance on the palm oil maintenance, Socialization of Government rule regarding plantations, counselling on maintenance of roads, bridges and ditch maintenance.

Available training records that has followed by every employee including:

1. Document Employee Training History Staff PT Tgk (estate and mill) the period of 2008 to 2011 to inform the type of

training each individual employee, total hours of training, type training, implementation date, location and executive

training.

2. Employee Training Records document the mill and estate that inform each individual type of training of employees,

total hours of training, type training, implementation date, location and executive training. For example: Based on the

document in The period of 2010-2011 Training employees on behalf of Abdul Wahab (Foreman 1 Division 1 UKE)

has followed several training: Training of RSPO, P3K and K3 on the date of June 28, 2011; Training of SOP Harvest

on June 9, 2011 and Training About HIRAC on June 11, 2011.

The company has a mechanism of selection for contractors who are experienced and have proper legal status. Contractor selection process was openly conducted through announcements in newsletter, requires: (1) Work Experience, (2) has a reputation for good work (3) has a solid finance. The Contractor's documents were available on site, includes company profile, certification entity, picture of the work, Work Experience list, certificates. For examples: Completed documents of PT Sinar Wahyu Pratama (road construction) was available including company profile, list of work experience period 2006-2010, photos of the project, the Business Entity Service certificate 0094/ASPEKINDO/19/05/11.

Full Compliance

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

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

There was EIA document have been approved in April 1995 by the EIA Commission 011/ANDAL/BA/IV/95, includes seven types of impacts to be monitored: (1) deterioration of water quality, (2) a decrease in air quality, (3) increase in the rate erosion, (4) disturbance to flora and fauna, (5) social conflict unrest, (6) social unrest because of the continuity of farming, and (7) provision of employment and increase incomes of the population. EIA document covers the whole area of 15,000 ha reserved in the Morowali district. EIA document describes the potential positive and negative impacts that may arise by the estate and mill development by PT Tamaco Graha Krida. However, based on the results of an overlay map of Land permit business 06/HGU/BPN/89, area statement and EIA document. There were indications of land expansion in blocks 140-149 but no corresponding EIA revision was found. Observation and Verification on November 28, 2011 Furthermore, on November 28, 2011 TGK provide evidence on the explanation that the EIA document is approved by the


ASSESSEMENT REPORT


EIA Commission; April 2005 has covered all areas of 15,000 ha, including 140 block area up to 149. The actual conditions of the environmental and social aspect has been identified and monitored. Environmental Management Report still in the process to be fulfilled. The company shown Environmental management plan (RKL) / Environmental Monitoring Plan (RPL) documents Report Period I and II in 2009 and 2010, presented the impact that were managed and monitored includes: air quality and noise, water quality of rivers and wells, liquid and solid wastes, the potential of fire, disturbance of flora and fauna, and public unrest. for example: Report of RKL and RPL period July - December 2010 that the environmental component is monitored air quality and noise (the results of laboratory analysis by Sucofindo Makassar), POME (analyzed by the Centre of OSH Makassar was not conforming to quality standard for the parameter oil and grease, and ammonia-free), water quality of the river (inlet and outlet) and Domestic Water. The organization has evidence of delivery the report of RKL / RPL The period 2010 (Semester I and Semester II) to the Head Office of Environmental Morowali District, by letter dated 670/TGK-UKE/SM/VI/2011 numbers June 22, 2011. Received by staff BLH (Nurmiali) dated June 24, 2011.

5.1.1; 5.1.3 Non-Conformance is categorized Minor, See CAR-2011.38

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

Identification of protected species has been conducted in conjunction with HCVA Identification by the POLLITO in January 2010. Based HCVA documents were found, as follows:

30 species fauna, consisting of 7 species of mammals (4 types including Appendix II of CITES - Manis javanica, Macaca sp, Cervus sp, and Sus celebensis), 19 species of birds (one species included under Appendix II - Centropus sp); and 4 types of reptiles. There were also 28 species of flora, such as types of Cendana (Santalum album) in the location of observation 2, 3, and 5 with Important Value Index 23.2 to 34.3).

Total HCV area 249.76 ha area located on the Polapi river (89.21 ha), Mamalu river (25.01 ha), Laluria river (80.11 ha), and Laantula river (55.42 ha). HCV types were identified consisting of:

a. HCV 1.1 - provide support functions for the biodiversity of protected areas or conservation.

b. HCV 1.2 - Critically endangered species.

c. HCV 1.3 - The area is a habitat for populations of threatened species, restricted or protected deployment that will survive (viable population).

d. HCV 2.3 - Areas containing natural populations of representative species that will survive.

e. HCV 4.1 - ecosystems that are important as water supply and flood control for downstream communities.

f. HCV 4.3 - Serve as natural firebreaks to prevent the spread of forest and land fires.

g. HCV 5 - have important functions to fulfil the basic needs of local communities.

The company has shown Public Hearing attendance list dated 12/01/2010, was attended by 21 participants representing PT TGK (5 personnel), Local Government (6 personnel), relevant government agencies (5 personnel), public figures, including smallholder (5 personnel).

There was also documentation of public consultations sent by mail to the Forestry and plantation agency Morowali District, Head of Environment agency and Head of Legal Morowali, Morowali District (Letter 663/TGK-UKE / SM/VI/2011


ASSESSEMENT REPORT


date 20.06.2011) and the Tadulako University.

The company has shown its HCV management programs with reference to the recommendations contained in the report of HCV identification. The management program specifies the needs to carry out boundary marking for HCV areas, enrichment planting, installation of warning signboards and implementing regulations on hunting of protected species which are all meant to be time bound. There was a map to show the distribution of HCVs. Protected wildlife was monitored and the distribution mapped. Enrichment planting was implemented in the identified buffer zones. Water quality in the rivers was monitored periodically. Organization has been appointed Umar Al'amri as an officer HCV management coordinator, at PT TGK based on Decree No. 656/TGK-UKE/VI/2011 from Senior Manager dated June 7, 2011. Umar Al'amri had training on June 25, 2011 by Ki Agus Rasyidi (trainer of Minamas Training Centre). PT. TGK has socialized the protected species to employees which held on 06.17.2011, followed by 15 personnel. The objective was "Wildlife is protected in accordance Indonesia PP. 7 / 1999 ". The steps have been taken to protect the species:

Undertake enrichment planting with rare species (e.g. Santalum album, Agathis Alba). In addition to increasing the number of rare flora, enrichment planting in the border area of the river also aims to restore the function of Border River as habitats supporting biodiversity and management of HCV.

Install information board regarding ban on hunting wild animals, land clearing, and poisoning fish. It can be found in block 21 (Division II), block 90 and block 97 (Division III) and block 107 (Division IV).

Full Compliance

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

The company has a document to show the identified sources of waste and pollution for both the estate and mill. The sources of mill wastes are generated by the processing station, machinery, vehicles, chemical storage and employee quarters while the sources of estate waste are from the generator house, workshop, chemical warehouses, emplacement and clinic. Waste management plan contained in hazardous waste handling procedure 709/TQEM-ESH/10 and procedures RSPO/5.3/PLB3 & BB3. Under those procedures, waste produced, among others:

Industrial - liquid waste, solid waste as empty bunch, shell, fibber, scrap metals, and hazardous waste (including used oil, oil batteries, cloth cotton waste, etc.).

Estate - Hazardous waste (including used batteries, used oil, used pesticide packaging, etc).

Hazardous waste collected in a temporary storage warehouse licensed (i.e. in Ungkaya Mill) for further submitted to an authorized third party (collector). The temporary storage warehouse license from Morowali District 693.3/225/SI/KLH/I/2010 dated January 11, 2010. Based on license from Morowali District 693.3/225/SI/KLH/I/2010, all of hazardous waste collected in a temporary storage warehouse licensed (Ungkaya Mill) and for further is submit to an authorized third party. Observations to the hazardous waste storage Ungkaya Mill it is showed that the company has consistently implement hazardous waste management procedures and non hazardous waste before all of hazardous waste submits to the collector. The observations indicated the conformity between the number of physical and the recorded.

There was evidence handover 01/BAP-LB3/05/2011 (latter for transferring the waste), where as much as 2,200 litters of used oil, used batteries 50 pieces and 27 packaging ex-pesticides have been submitted to Storage UKF (Ungkaya Factory). Based on recordings of Hazardous waste UKF, until July 5, 2011, there were 27 pesticide containers; 3,000 litters


ASSESSEMENT REPORT


used oil, used batteries and 73 Battery cell was used. The observations indicate conformity with the list of material inventories (recorded).

Empty bunch used as organic fertilizer throughout the land, while the shell and fibber was used as fuel for boilers. The liquid waste from processing in the factory applied to the land after getting treatment at 7 ponds. Based on recordings of wastewater application, the application block Afdeling I do in Block 49, 50, 57, 58, 59, 62, 63, and 67. It is not in accordance with an approval letter Morowali District 660.06/022/KLH/II/2009 dated February 13, 2009, in which the land application area Division I was in Block 49 and 62 covering an area of 32 hectares in the wita ponda sub district. On June 7, 2011, the company submitted an extension request to Head of Morowali District 09/UM/TGK/VI/2011. Regional Environmental agency, Morowali district explained that, the process of permit

renewal for land application by TGK was still hampered by the administrative requirements that have not been met by the estate as the results of analysis on water quality and soil were yet to be submitted.


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

There was monitoring of renewable energy record in the form of matrices of using shells and fibber. The efficiency of the use of fibber and shell is measured against its budgeted consumption as well as against the reduction in diesel consumed. The higher consumption of shell and fibbers will result in lower use of diesel fuel and vice versa. Period July 2010 - May 2011 recorded the use of shell 9,854,749 tons (budget 9,464,969 tons); use of fibber (s / d May): 20,389,137 tons (budget 19,582,694 tons) – 169,909,472 tons of FFB processed. Usage of diesel fuel – 71.032 l / kwh; turbine 3,276,536 kwh. There were in Monthly Report of Operations section Engine Room i.e. March 2011 diesel fuel 10,415 litters for 495.10 hours of work.

Full 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 does not conduct burning during land preparation for replanting in accordance with agronomic manual 110/EST-ARM/08 policy section 4 Preparation of land. Land preparation is done mechanism included the cutting small trees logs diameter < 15 cm; Tree Cutting; Cleaning up; collecting the tree trimmings with heavy equipment. TGK has been providing Fire fighting Land Policy 501/TGK-UKE-05/11 such as set about the prevention of fire (Clause 2.1), fire control land (clause 2.2), and activities after the fire goes out (clause 2.3). There was evidence that emergency response simulation was held on June 18, 2011 attended by 21 participants for assistants, managers, supervisors, and operators. TGK have the results of the adequacy of fire fighting equipment evaluation carried out by analyzing of fire extinguishers for a long time to fight fire, based on simulated fire fighting of land on June 18, 2011. The type and number of extinguishers consist of: car tank (1 unit), fire beaters (4 pieces), hoes (6 pieces), scratch (4 pieces), machetes (6 pieces), buckets (6 pieces), the engine pump (1 units), and communication tool (2 pieces handy talky). Those equipments can turn off the source of the fire in 30 minutes. Observations to the fire prevention storage, Ungkaya Estate, types of equipment listed above can be found.

Full Compliance


ASSESSEMENT REPORT


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

The company has shown the identification of emission sources and its management, including information sources of emissions, emission type, the type of flue gases, classification, and management (reuse / recycle / disposal, and landfills. UKF emission sources include: sterilization station, clarification station, boilers station, engine rooms, and vehicles. There was ambient air quality monitoring and emissions report. The document provides air quality monitoring, air quality monitoring methods, monitoring results, conclusions and suggestions which explain also the source of pollution and emissions in the UKE. The RKL / RPL reports period II of 2010 explained that the implementation of air quality and emissions monitoring is done periodically every month, air samples taken were analyzed in a laboratory which is accredited. Report of ambient air quality and emissions measurement Ungkaya Factory was available, conducted in June 2011 by the Laboratory of OHS Makassar. Include: ambient air quality and emissions; Air Quality Emissions and Air Quality Emissions generator boiler. The test results indicated no parameters exceed the specified quality standards. Efforts and plans to reduce pollution and emissions were listed in the document Technical Guidelines for Palm oil Mill II Policy: 120/POD-FAC/07 describing the cleaning of kitchen ash (dust collector) including explaining procedures of cleaning and the frequency of execution. In the document mentioned that the implementation of cleaning kitchen ash should be every 3 hours. Management efforts and reduction of pollution emissions in the document HIRAC (Hazard Identification and Risk Assessment Control), such as concerning the maintenance and cleaning machinery units regularly and greenery in the estate and around the area of housing and factories and requires all workers to wear PPE (e.g. for space station boilers and generators must use ear-plug). Record of the use of liquid waste for land application was available at the Daily Production Report, sub Section H. Land Application of Total flat bad / block applications, effluent applied (m3) i.e. examples dated on 26 April 2011, the amount of effluent applied today 840.00 m3: until this month 15,274,700 m3; s / d this year 154,886,900 m3. Mill effluent monitoring carried out monthly by the OHS Centre Makassar, recent measurements carried out in March 2011. For example: On February 2011 pond 5 (BOD5 306.27 ppm whereas quality standards pp. 250 – Environmental decree Number: Kep-51/MENLH/10/1995); pond 7 (BOD5 - 331.79 ppm; COD 522.27 ppm BMA 500 ppm).

Full Compliance

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

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

There were EIA and Social Impact Assessment in 2009 by CV POLLITO. The company has shown an attempt to consider changing the social conditions around their working area refers to the results of social impact assessment. Compared with EIA documents 1995 have been validated, the potential social impact studies in 2010, did not show any significant change, namely:

1. The positive impact: employment opportunities, increased accessibility, and interaction with the settlers.

2. The negative impact: the quality of human resource gap, the gap utilization rate of local and migrant populations, and the decline of natural resources.


ASSESSEMENT REPORT


The management has shown complaints documents, including complaints about the impact of company Operations and numerous complaints have been responded by the company i.e. complaints from villagers related to indications pollution due to liquid waste disposal into Lalangkai and Ampat River. The results of analysis of river water conducted by the Laboratory Centre for OHS Makassar revealed that the quality of river water tested did not exceed the applicable Quality Standards in accordance with Decree LH. 51/1995.

The company has shown Report of RKL / RPL implementation Period I and II in 2010, presents the kind of impact that were managed and monitored included: air quality and noise, water quality of rivers and wells, liquid and solid wastes, the potential of fire, disturbance of flora and fauna, and public unrest. The Company has submitted a report RKL / RPL Period 2010 (Semester I and Semester II) to the Head of Environmental Morowali District, by letter 670/TGK-UKE/SM/VI/2011 June 22, 2011. Received by staff environmental agency (Nurmiali) dated June 24, 2011.

The EIA document which is approved by the EIA Commission; April 2005 has covered all areas of 15,000 ha, including block 140-149. The actual conditions of the environmental and social aspect has been identified and monitored. Environmental Management Report still in the process to be fulfilled.

The company has smallholders scheme covering 5,786 hectares. There was evidence showing the company had given a positive role for the farmers through extension programs. Example: (1) provision of counseling on improving the quality of the fruit through farm management (fertilization, maintenance, harvest) - evidenced by 04/ADO/LAP/2003 report dated January 28, 2003, (2) plasma group counseling in collaboration with the other group, (3) grading together at POM in 2003. Plasma Manager stated that TGK aims to get good quality FFB for

processing; hence it routinely performs coaching for plasma stakeholders directly, carried out by the estate Foreman and Assistants.


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.

PT. TGK has shown Communication and Consultation with the Community procedure (RSPO/6.2/KKM), where the clause 6 explained the community consultation carried out by providing a mailbox on the Central Estate and each Division, and providing an email address ([email protected]). There was evidence of communication record and consultation with the community in the form of attendance & Minutes plasma development socialization on May 12, 2011. Stakeholders list was available included information name of stakeholders – sub district, District, County. There were 47 registered stakeholders in the list of names and addresses Stakeholder were grouped into:

1. Departments and agencies included the Department of Agriculture, Forestry Department, Ministry of Environment, Ministry of Manpower and Transmigration, etc.

2. Head of Regional Level I and II; included head of district, Head of Forestry and Plantations agency, National Land Agency, Labour agency, and Tadulako University.

3. Head of Sub-district and village.

4. Community Leaders and Community Groups.

The company has demonstrated the revised SOP 058/TGK Public Complaints /2010; where clause 5.7 asserts that all complaints, suggestions, and aspirations of the community will be recorded in the document 'Register Mail Login' and will be taken no later than 2 weeks from the date the letter was received . Aspirations of all complaints, suggestions from the community could be submitted through the Assistant, Senior Assistant, or Head of administration. The facilities used as a medium for information was box at office and email Ungkaya Estate (point VI, SOP Complaint Handling Mechanism).



ASSESSEMENT REPORT


There was evidence the procedure has been implemented, such as recording aspirations in Mail Inbox 33 dated 20 November 2010, concerning the application support fund for Christmas by the women committee in 2010 and has fulfil on 31 November 2010. The officer responsible for consultation and communication with the community was Senior Assistant. Senior Manager explained in certain situations Senior Assistant could be delegate tasks to staff depending on the type of information to be conveyed to the public.

Full 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 demonstrated the revised SOP 058/TGK Public Complaints /2010; where clause 5.7 asserted that all complaints, suggestions, and aspirations of the community will be recorded in the document 'Register Mail Login' and will be taken no later than 2 weeks from the date the letter was received . Aspirations of all complaints, suggestions from the community could be submitted through the Assistant, Senior Assistant, or Head of administration. The facilities used as a medium for information was suggestion box at office and email of Ungkaya Estate (point VI, SOP Complaint Handling Mechanism) The Company has a record of handling complaints, including complaints submitted by the Environmental Agency of Morowali District dated 11/02/2011 which directly responded by Verification Team of Environment Agency. There are Action Plan as a follow up of grievances the parties which the environmental impact caused by the activity of PT. TGK. Action plan is a follow-up of the recommendations of Environment Agency No. 090/74/KLH/2011. There were also action plan as a follow up of stakeholder complaints related with the environmental impact caused by the activity of PT.TGK. The action plan was a follow-up of environment agency recommendations 090/74/KLH/2011 dated June 22, 2011. The procedure for calculating the compensation has been included in the procedures of identification Land claim clause 4. 001/PSDS-L U.S. and compensation deliberative process. The procedure describes the process of land identification, map of completion, Deliberation Process Claims, Payment and Reporting.

Full 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.

There was Identification and Land Compensation procedure (001/PSDS-L & USA). The procedure describes the process of land identification, mapping completion, Deliberation process claims, Payment and Reporting Procedures. Records on process of negotiating compensation were available for the case involving Sudirman (Ungkaya community). The records consist of minutes of deliberation on the deal, a map showing the survey results and receipt for payment made to Sudirman. The ceremony of compensation was graced by the Head of Bungku barat sub-district on July 19, 2003. The land concerned was located in Blocks 4 & 7 measuring about 8.75 ha with compensation valued at IDR 10,000,000.

Full 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.


ASSESSEMENT REPORT


There was payroll refers to the Governor of Sulawesi Tengah decree 651/609/Disnakertrans-GST/2010 dated 5 November 2010 regarding the Minimum Wages in Sulawesi Tengah Province in 2011. The amount of the minimum wage set at IDR 827,500 per month, and the daily minimum wage is IDR 33,100 per day. Based on list of Salaries, it is known that TGK has paid wages according to the decree of the Governor. For instance:

1. Sulaeman who works as a harvester for 6 months, the salary received in March 2011 was IDR 1,500,000 plus 15 kg of rice.

2. Nurhasanah, salary received in March 2011 was IDR 1,126,000, - (including premium).

3. Juliana, 4-year period of employment, base salary was IDR.920.000 in March 2011, -, premium IDR 250,000 and 15 kg of rice. The interviews with Ernawati wages received IDR 927 500.

TGK have shown Labour Agreement documents the period 2010 - 2012 was set out in Jakarta on November 3, 2010 by the General Director of Industrial Relations Labour and Social Security KEP.155/PHIJSK-PkkAD / PKB/IX/2010. The agreement applied to staff and non staff workers, while the agreement for employees SKU (unit) were still in the process of finalizing the discussion. There was application of PT TGK’s Senior Manager to the Board of SPSI 583/TGK-UKE/SM/IV/11 On 24 April 2011, for delivering and completing the agreement period 2011 to 2013. Based on the explanation of the Chair of SPSI Unit finalization of the draft agenda for the period 2011-2013 to be discussed with the Management on July 2011. The Company has provided facilities for employees, such as: Support education for children, consisting of JHS Graha Krida built in 1996, amounting to 8 Class; kindergarten Graha Krida built in 1996 amounted to 2 Class. Currently there were 8 classrooms, 18 staff (teachers and others). There were teachers from the Department of Education (Principal and several teachers).

One unit of Polyclinic for healthcare built in 1996. Health personnel consist of one medical doctor, two nurses, and one midwife. Other medical facilities include first aid equipment, one male and one female in-patient rooms. Medicine stocks were adequate and complete.

1 unit of mosque in each Division and 1 unit of Church in the Division I

Housing for employees in each Division (Division I, II, III, IV).

Water supply is sourced from the hills while well water is the alternative source in case of drought in the dry season.

Work agreement Letter was available with the Fence contractor (Abdul Muis) EST/UKE/SPK-LKL/VI/2011/123. At points 10.3, which states in order to realize and support the policy of Plantation Management Minamas on "Occupational Health and Safety (K3) - Zero Accident. Contractor workers must comply with safety standards. The company also has memorandum by Senior Manager 666/TGK-UKE/SM/VII/2011 dated May 1, 2011, such as, highlights some of the requirements for contractors in terms of wages, minimum age of workers, the use of PPE, implement K3, and pay taxes.

6.5.2 Non-conformance is categorized CFA, See CAR-2011.60

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.

Company policy gave workers the freedom of association was also contained in point 5 of the Guidelines for Sustainable Plantation Management 724/TQEM-SPMS/09 April 1, 2010, signed by the CEO. All workers currently incorporated into the Agriculture and Plantation Workers Union of Indonesian Workers Union indicated the presence of organizational Structure. SPSI stewardship work unit PT. TGK, for the period 2011 - 2014 has been ratified by Decree 01/SKEP/SPSI-PT.TGK/IV/2011 regarding the Composition and Personnel Management Unit SPSI PT. TGK Period 2011-2014 and has been endorsed by the Social, Manpower and Transmigration Decree 188.4/107/08.2/SMT/V/2011 dated


ASSESSEMENT REPORT


on May 1, 2011. Based on the explanation by the Head of SPSI, there was no meeting with Unions since 2005. But in the future, if there is a meeting, it will be recorded and stored in the document RSPO Principle 6 (6.6) Rack 3: 3.1.

Full 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 program. Children are not exposed to hazardous working conditions.

Company policy on worker's age requirement is outlined in the Collective Labor Agreement Book for Staff under Article 16 clause1.2.2 which states that the age requirement for prospective employee should be at least 18 years old or married. Also there was Memorandum by the Head of Plantation Operations Minamas in Jakarta regarding child protection policy which contains the prohibition to use underage labor in accordance with Law of Labor Affairs. The plantation’s labor name list for 2011 showed that no workers are less than 18 years of age. For example, a young worker by the name of Fahrun with employee register number 11055 who was born on October 22, 1992 and reported for work on April 1, 2011 is calculated to be 18 years and 8 months old. Besides that’s other implementation could be shown with Job announcement. For example: Job Labour Supervision PT Graha Krida Tamaco Ungkaya Estate where it is stated in point 1 of the requirements of prospective workers aged at least 18 years.

Full 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.

Company policy about the opportunities and no discrimination in employment opportunities, available in the SOP for Sustainable Plantation Management Policy 724/TQEM-SPMS/09 dated August 27, 2010, points 1 states: All staff should be treated reasonably and fairly in matters relating to recruitment, advancement, conditions and job description, regardless of race, degree, ethnicity, gender, skin colour, physical imperfections, sexual orientation, membership organizations, political, religion, and age. Contained in the Agreement Period 2007 - 2009 of Article 16 of the Acceptance of Labour that contains: 1. Selection recruitment 1.2. The general requirements that must be met in the acceptance of prospective workers, as follow:

Citizen of Indonesia

Aged 18 at the time of admission or married

Regulated and healthy-minded

meet the criteria or qualifications needed

Willing to comply with the rules and regulations in force in the company

Not engaging in activities or membership of the party or company that is banned by the government as well as well-behaved in accordance with a written certificate issued by the Police of the Republic of Indonesia

Not being in the criminal proceedings

Not tied to a working relationship with other parties in any form

Willing to be placed on any job site of the company or of any company in the business of PT. Anugrah Sumber makmur and PT. Minamas Gemilang.


ASSESSEMENT REPORT


Recordings of opportunities and equal treatment in employment opportunities available in the form associated with the recruitment mechanism for Staff and Non Staff and SKU. Based on the explanation of HRM Staff Representative Banjarbaru known that mechanism recruitment Staff and Non Staff (Employees at headquarters and representative) divided into 2 categories, namely:

1. Existing company employees follow the mechanism of promotion through performance appraisal and evaluation conducted by a supervisor or superior.

2. Recruitment of new employees - request for new employees is made by submitting the Recommendation Recruitment Form to HRM. Upon approval by HPUI, announcement of job vacancies will be made followed by recruitment process which entails interviews, psychological test, medical examination and finally the appointment for those who meet the requirements.

For recruitment SKU, there was recruitment mechanism that begins with identifying the needs of employees; job announcements submitted to the District, the village chief's office, and posted in public places; selection Administration (According to Form Check List Selection Administration); medical tests by the Doctor; written test, practice and Interview by Manager, and Head of Administrative (the value of the test set out in Form Resume Interview). Conducted a trial period of 3-6 months.

Full Compliance

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

The company has a gender policy No 701/TQEM-ESH/10 which has been approved by Manager of PSQM and Chairman SOU 7 on the date of July 1, 2011 and distributed on July 1, 2011. And also in the letter of the Joint Working Agreement Article 28 point 2.6 regarding the prohibition of gambling, drinking alcohol, drunkenness, immoral conduct or sexual harassment in the workplace, as well as accessing pornographic sites and / disseminate pornographic images for sexual harassment and prevents of violence. Under the policy on reproductive rights, Article 33, paragraph 1 of the Joint Working Agreement staff and non staff for the Period 2010 to 2012, female workers are entitled to a full salaried break of 1.5 months before as well as after giving birth, based on estimation of delivery date made by obstetrician or midwife, and in section 1.6 points 34 that the woman in a condition of menstruating is obtain a rest for 2 days with fixed wages. For example, based on the Certificate of Pain (Pregnant) 138/TGK-UKE/V/11 for Fida (20 years old) of Administration / Teachers Division, she was diagnosed to be pregnant and due to give birth. She was recommended to rest for 3 months from 11/05 to 10/08 2011 under the provision of maternity leave which she has to apply through the normal Leave Application Form. 07/TGK-UKE/CT/V/2011 on behalf Asmaul Mufida, Section Administration / Elementary School Teacher filed Leave for 90 days from the date of 11/05/2011 until 12/08/2011 was approved by the Head of Division (Sumitro) and known by the estate manager (Harry Susanto). Menstruation leave for Sudarsila (fertilizer application worker) of Division 4 - she was allowed to take a 2-day rest (08-09/06 2011) with approval from the Assistant of Division 4. The company already has the Gender committee Period 2011-2012, chaired by Siti Ratna K. Ratification Committee on Gender is still in the process of recording to Social, Manpower and Transmigration agency. The company has submitted application for Registration of Gender Committee to the Manpower and Transmigration agency, dated June 27, 2011 and accepted by the administration Staff Social of Manpower and Transmigration agency, Morowali District on 28/06/2011. The Company has conducted Gender Committee Socialization on Saturday, June 18, 2011 in Division II was attended by 28 participants. Gender Socialization involves the introduction of the committee and its members, efforts to prevent acts of sexual harassment which include advice on how to be polite in terms of words, speech, appearance and other aspects, mechanism of complaints on gender problems. Committee on Gender has a Program period July to December 2011. The program includes activities such as Socialization of gender Committee; Socialization of basic Law of building gender Committee, Socialization of complains mechanism, the


ASSESSEMENT REPORT


Coordinating Meeting of evaluation. This program was Created by secretaries and acknowledged by the Chair and Advisor on May 1, 2011. Mechanism for handling complaints from female workers covered under Clause 6.4 (Complaints Procedure) of the SOP Implementation of Gender Policy 701/TQEM-ESH/10 dated July 1, 2011 that explained if there were complaints related to the protection of women workers presented to the Committee on Gender to be reported to the management, then the management will determine the action to respond to the complaint.

Full Compliance

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

There was standard FFB price per month issued by the Plantation Agency based on the results of the meeting by the stakeholders, consisting of; The Plantation agency, Head of commerce agency, Head of Industrial and cooperative agency, Representative of Farmers Plasma and Representatives from each oil palm plantation company.

Standard rates can be accessed by all parties, including farmers. Relevant FFB price is displayed on notice board placed in the office compound, for example, in the compound of Division 2 office.

Listed in the contract of employment i.e. UKE/SPK-LKL/I/2011/046-lkl, such as: the contractor is willing to obey the health and safety regulation and traffic line in company area, for example: all of contractor should be using of Personal Protective Equipment (helmet, safety shoes, etc). There is the Payments of FFB accordance with agreement. For example: Evidence of payment E439/BV007/III/011, dated March 7, 2011, transferred to the BRI Branch of Bungku 5202.01.004548.53.4 on behalf of Ashar.

Full Compliance

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

The company has developed CSR program of 2011; consider the basic needs of the community, for example: scholarships, repair religious facilities, and maintenance of village roads. The company also proven to tax to the state related land using for plantation area and include all of buildings (PBB) (of IDR 510,237,076, - (2010) and payment of CPO fees amounting IDR 75,129,056, - (2007), IDR 87,466,172 (2008), and IDR 75,473,750 (2009). However, the company should be able to present evidence that CSR programs include records of the results of the identification of needs, development priorities plan and implementation record.

6.11.1 Non-Conformance is categorized CFA, See CAR-2011.65

PRINCIPLE #7 Responsible development of new plantings

Based on area statement data, there was no development of new plantings after 2005 as the last planting of TGK was in 1997. Hence, all Criteria of Principle 7 are not applicable

Not Applicable

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.

There were 2 documents for monitored environmental and social parameters, namely: document Environmental Management and Monitoring Plan (RKL/RPL) and HCV Management Program (High Conservation Value). RKL / RPL plan includes monitoring pollution and emissions, water quality, wildlife development, and public unrest. While HCV management program includes monitoring the implementation of HCV boundary, enrichment planting, and monitoring wildlife. The company has shown improvement efforts against RSPO findings, there were 65 potential non-conformance of Stage 1, 59 of which have been declared closed by the auditor.

Full Compliance


ASSESSEMENT REPORT


3.2. Summary of Assessment Report of Supply Chain

Clause Requirements Supply Chain Model

IP SG MB

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) Complete and up to date records and reports that demonstrate compliance with these requirements (See 5 for more details) and are 100% verifiable by auditor.

c) 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.

PT Tamaco Graha Krida Palm oil or Ungkaya Factory (UKF) has documented procedures that cover all stages of the process according to the supply chain requirements relevant with the operations, namely the document "Standard Operating Product Traceability 501/TGK-SPC Rev. -01/11. 01 dated 05/07/2011. This procedure contains, such as policies of the company to use the Mass Balance Supply Chain Model to control the production process (clause 6.2.2). To support the implementation of its supply chain model (contained in clause 6.1.1). The company establish the composition of the raw material (FFB - FFB) to be used was 35% supplied from the nucleus (RSPO certified), 55% supplied from plasma (RSPO certification will be processed), and 10% supplied by independent grower (not certified RSPO). Ungkaya Factory (UKF) has been providing and implementing revenue and expenditure recording material at all stages of palm oil production process, from receipt of FFB to dispatch. The recording process is done every day, while recapitulation was poured into a weekly report, monthly report, Report of Three Monthly, and Annual Report. Described in clause 5.1.1 501/TGK-SPC-01/11 procedures, that Ungkaya Factory Manager was specified as in charge and has full powers to implement the system supply chain product in accordance with applicable requirements.

√

2 Purchasing and goods in

2.1

The facility shall ensure that RSPO certified palm oil is identified. This shall include at minimum the following:

(a) Order of RSPO certified palm oil product shall specify the requirement for RSPO certification in purchase orders. It shall be ensured that the origin of the material until the previous processing facility in the supply chain can be verified.

(b) The facility receiving RSPO certified palm oil shall confirm that the RSPO certified palm oil delivered is the same as that specified in the purchase order and the


ASSESSEMENT REPORT


accompanying trade and shipping documentation from the supplier and that has been shipped by the supplier.

(c) The facility receiving RSPO certified palm oil shall ensure that the validity of accompanying trade and shipping documentation is verified prior to accepting the RSPO certified palm oil

UKF was palm oil processing so as not to make purchase oil and palm oil products from the outside. Activities relevant to this indicator were palm oil shipments, which was from the factory (UKF) to the loading point and from the loading point to the customer. Referring to clause 6.2.2 of 501/TGK-SPC-01/11 procedure, so that the category of material to be generated by the UKF as the "Mass Balance" which contains 35% RSPO certified.6.2.10 Based 501/TGK-SPC-01/11 procedure, explained that the categories of material (palm oil) in the delivery of material from the factory to the loading point will be stated on the Letter of Introduction of Goods (SPB), while the delivery of products from the loading point the customer will be stated on the invoice. At the time of the audit, this procedure cannot be implemented because the UKF has not made the production process from raw material that the RSPO certified. To ensure this is done after the UKF produce RSPO - certified products published CAR-2011.68, MINOR. UKF did not buy palm oil, material received only a FFB. At each reception TBS (according to the procedure 501/TGK-SPC-01/11) Letter implemented mechanism checks Fruit by the designated officer, to ensure the source of the fruit and other information required.

X

2.2

A mechanism for handling non-conforming material

Not applicable – See 2.1.b and 1.1.a above NA

3 Sales and goods out

3.1

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

Procedure described in clause 6.2.10 501/TGK-SPC-01/11, that every publishing Invoice for RSPO - certified products, will state clearly the following: (a) Name and address of the customer, (b) Invoice date issued, (c) A description of the product, including categories of materials (Mass Balance), (d) the number of products shipped, and (e) Reference documents related transport. At the time of the audit, the company has demonstrated Invoice format used for product sales, and has listed the requirements above, except the category of material as a 'Mass Balance' as yet use RSPO certified raw materials. To ensure this is done after the UKF produce RSPO-certified products published CAR-2011.68 as Minor.

X


ASSESSEMENT REPORT


4 Processing

4.1

The facility shall only choose a supply chain model in case where the RSPO certified palm oil has been verified to meet the intent and the requirements of the supply chain model at the previous stage of the supply chain.

Identity Preserved → Segregated → Mass Balance → Non RSPO Certified Palm Oil

Described in clause 6.2.2 of the procedure product traceability 501/TGK-SPC-01/11, that will implement the UKF establish traceability systems by using the Mass Balance Supply Chain Model. See also explanation in 1.1.a above. Percentage of RSPO - certified material used for the production process, can be identified on the Daily Production Report, such as to record information on the number and origin of received FFB and used for the production process, the amount and quality of the produced CPO and KPO, and OER (Oil Extraction Ratio).

√

4.2

The facility shall ensure that the RSPO certified palm oil is uniquely identifiable to the mill and its supply base and is kept physically isolated from all other oil palm sources in its facility.

Not Applicable. NA

4.3

The facility shall ensure and verify through clear procedures and record keeping that the RSPO certified palm oil is kept segregated from non certified material including during transport and storage and be able to demonstrate that is has taken all reasonable and necessary measures to ensure the objective of 100% segregated material is reached. The system should guarantee the minimum standard of 95% segregated physical material.

Not applicable. NA

5 Record keeping

5.1

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

The company already has a record and report daily, weekly, monthly, quarterly, and yearly, which includes information about the number of receiving FFB, FFB sources, the amount of FFB processed, and the amount of palm oil produced and sold. All types of reports were an important analysis tool for decision makers within the internal scope of the company, and as the basis for the preparation of reports to relevant government agencies. See also explanation in 1.1.b above.

√

5.2

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


ASSESSEMENT REPORT


Clause 4.1 product traceability procedures 501/TGK-SPC-01/11 explained all records and reports related to the traceability of the product will be stored for at least 5 (five) years.

√

5.3

(a) The facility shall record and balance the volume of RSPO certified palm oil on a three-monthly basis used in processing

(b) When the Mass Balance model is used, a facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short

See explanation above 5.1 - the company has implemented the Three Monthly Report of record all receipts and expenditures of RSPO - certified materials including palm oil. This appropriate with the required by clause 6.2.13 product traceability procedures 502/TGK-SPC-01/11. The company has shown Time Bound Plan to certify the entire source of raw materials which are under its management (including nucleus and plasma), it is intended that all palm oil produced and sold only made of RSPO certified sources.

√

5.4

The following trade names should be used and specified in purchase and sales contracts.

Not to date.

5.5

The facility shall provide documented proof that the RSPO certified palm oil can be traced back entirely to the palm oil mill.

Not applicable NA

5.6

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

Not applicable NA

6 Training

6.1

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

There was Training Plan in 2011 for managerial UKF, including training RSPO. Supply Chain Systems was reserved implementation in June 2011.

√

6.2

The facility shall keep records of the training provided to staff in relation to implementation of these requirements.


ASSESSEMENT REPORT


Records of training available in the form of supply chain Attendance List dated June 20, 2011, followed by five participants consists of Manager, PSQM Assistant, Process Assistant, Maintenance Assistant, and head of administration UKF. Instructor Tjahyo (PSQM Manager), the material provided: Standard RSPO Supply Chain and Procedures traceability.

√

7 Claims

7.1

The facility shall only make claims regarding the use of or support of RSPO certified palm oil that are in compliance with the RSPO Guidelines for Communication and Claims (see Annex 10).

Set in Section 6.2.2 of the product traceability procedures 501/TGK-SPC-01/11, that the company will claim a product certified by RSPO Mass Balance Model. Only palm oil was processed in accordance with applicable procedures that will be claimed as the RSPO certified products, namely the use of raw materials from the nucleus (35%), plasma (55%), and other sources (10%).

√


ASSESSEMENT REPORT


3.3 Checklist Conformity of Certificate and Logo Use

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

submitted by Client

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

against Guideline of Logo Use

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

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


ASSESSEMENT REPORT


3.4 Summary of Time Bound Plan Verification of the RSPO Certification (Not Applicable)

Total companies visited (0.8 √Y) Where Y is the total of one holding company The company name :

1. 2. 3.

Visit date :

2.1

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

2.2

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

6.3

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

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.

7.3

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

7.5

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

7.6

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


ASSESSEMENT REPORT


3.5. Summary of Non Conformance and Noteworthy Positive Components 3.5.1. Summary of Non Conformance, Correction Action Required and Observation at Stage-1 Assessment

No Ref Std

Non Conformance Grade Area Corrective Action Request Time Limits

Date and Observation Status Closing Date

2011.01 1.1.1 Records of requests for information - Company (PT Graha Tamaco Krida) have not been able to show the document recording the information request.

NC Estate and Mill

Company should reassess SOP Request for Information (RSPO/B.4.7/TGK) to ensure that requests for information from stakeholders will be recorded.

Stage 2 06/07/2011 The company has demonstrated SOP information Request No. 01 dated 05/07/2011revision RSPO/B.4.7/TGK where clause 5.9 and 5:10 ensure that all document requests and responses will be recorded information into bundles Incoming Mail and Outgoing Mail and retained for at least 1 (one) year. In the period May-June 2011, recorded 11 Mail-in of local government officials, regarding the letter is a request for help.

closed 06/07/2011

2011.02 1.1.2 Records of information request response - not enough evidence that responses to requests for information have been recorded consistently throughout the site, For example: (1) In the estate, there was no response recorded information. (2) In the MCC, Letter No. 152/TGK-UKF / I/11, addressed to Disnakertrans Morowalidistrict, subject P2K3 Reports 4th Quarter (October-December period of 2010), is not recorded into the Outgoing Mail Register.

NC Estate and Mill

Company should reassess SOP Request for Information (RSPO/B.4.7/TGK) to ensure that all requests for information from stakeholders have responded according to procedures specified time, and all responses have been documented.

06/07/2011 See explanation above observations CAR 2011.02. Observations bundle outgoing mail, showing that all outgoing mail has been recorded and stored. Sample letter out: (1) Introduction to Action Plan No.33/TGK-UKF/SP/VI/11challenged the Environment Agency visits, (2) No. SP. Certification test 31/TGK-UKF/SP/IV/11 about noise and air pollution (letter No. 341/TGK-UKF/VI/11).

Closed 06/07/2011


ASSESSEMENT REPORT


No Ref Std



2011.03 1.1.3 1.2.2

Determination of the shelf life of recording responses and requests for information - Company has a SOP of Information Request Number RSPO/B.4.7/TGK, dated on June 1, 2009, but found no statement showing that the shelf life of the document / record information requests and responses has been determined.

NC Estate and Mill

Company should reassess SOP Request for Information (RSPO/B.4.7/TGK) to ensure that the shelf life of the recording request and response information from stakeholders has been established on the basis of importance. Prior to Stage 2 07/06/2011

Stage 2 See explanation above observations CAR 2011.01

Closed 06/07/2011

2011.04 1.2.1 This type of information documents - Company have SOPs on RSPO/B.4.7/TGKNumber Information Request, dated June 1, 2009, but was not found or policy statement that explains the types of documents that can be published and is exempt according to applicable regulations (for example: Law no. 14 of 2008 on the Disclosure of Information).

NC Estate and Mill

Company should review the SOP Number RSPO/B.4.7/TGK to make sure it has to determine the types of information that can be published.

Stage 2 06/07/2011 List of types of information that can be published has been presented in Section VI of SOP No. RSPO/B.4.7 / TGK Revision 1. Among others: EIA document, document HGU, the implementation of safety documents, recording the implementation of Corporate Social Responsibility.

Closed 06/07/2011

2011.05 2.1.1 Evidence of compliance with legal requirements - There are some rules that have not fully complied with, for example: 1. There is an area of ± 134 ha in the Division IV that do not have HGU. 2. Report on the implementation of RKL / RPL has not delivered regularly and timely information to relevant agencies according to PP. 27 in 1999. 3. Border delimitation of

NC Estate and Mill

Company shall ensure that all relevant operational regulations plantations and mills being fulfilled

Surveillance 1

04/07/2011 The company has demonstrated an effort to meet all applicable regulations, including those related to: - Legality area of ± 134 ha in the Division IV has been filed into the new development area and has received recommendations from the Regent Morowali 525.26/sk-0064/DIS

Open (CFA)


ASSESSEMENT REPORT


No Ref Std



water protection (rivers and springs) is not referring to the Law no. 41 in 1999.

HUTBUN/III/2011 dated March 22, 2011. - Reports on the implementation of the RKL / RPL semester I and II period 2010 to the Office of Environment (Morowali District on June 24, 2011 (very late). - The visit to block 27 and 21 (Polopi river buffer zone), the company shows the progress of settlement boundaries and the planting of buffer zone which is under implementation.

2011.06 2.1.2 Evidence of adjustment to changes in the rules - yet there is evidence showing that the company has conducted an evaluation of compliance with applicable legal requirements and related its amendment.

NC Estates and Mill

Company shall provide the results of the evaluation document compliance with all regulations and amendments thereto.

Stage 2 05/07/2011 Company have shown documents Regulatory Compliance Evaluation Checklist form of a matrix that contains regulatory information / articles, descriptions, compliance status, and evidence of compliance. Example: the requirements of Article 50 paragraph (1) PP. 41 year 1999 concerning the obligation to submit reports of monitoring results of air pollution to local authorities. Evidenced by the documents the ambient air monitoring results are submitted to the District Environment Office Morowali.

Closed 05/07/2011


ASSESSEMENT REPORT


No Ref Std



2011.07 2.1.3 2.1.4

Evaluation system of regulatory compliance - not found evidence showing that the company has a documented system for evaluating compliance with all applicable regulations related to oil company operations.

NC Estates and Mill

Company shall provide a documented system for evaluating compliance with all applicable regulations related to oil palm plantation company operations.

Stage 2 05/07/2011 See explanation above observations CAR 2011.06.

Closed 05/07/2011

2011.08 2.2.1 Document tenure - There is a difference between the areal extents statement (4,712 ha) with the certificate document HGU (4,145 ha).

NC Estates Company must present documentation of possession of the land that covers the entire area of work area.

Surveillance 1

02/07/2011. Senior Manager of UKE explains that the difference between the actual area (4,712 ha) with an area of HGU (4,145 ha) because the double accounting of infrastructure into the detail area statement. However, this explanation cannot be proven by the results of the measurement data and map overlay measurement results. Criterion 2.2 RSPO P & C confirms that the operational activities conducted outside the legal limits must be stopped. In the case of excess acreage, Head Administrative of National Land Agency, Morowali Regency explains, TGK should submit to the competent authority, to be

Open (Minor)


ASSESSEMENT REPORT


No Ref Std



processed legally appropriate regulations.

Observation and Verified on 01/12/2011 Letter filings the company has proposed measuring circumference measurements (cadastral) for an area of ± 567 ha in the village of Laantula Jaya, Wita Ponda district. Petition of measure the circumference was presented to National Land Agency of Central Province according with 09/UM/TGK/XI/2011 dated 24 November 2011.

2011.09 2.2.2 The boundaries of legal - No available documentation has been done that show the installation of the boundaries of the demarcation area.

NC Company shall provide documented evidence of the presence of pal-pal limits of work area.

Surveillance 1

02/07/2011 The company has a regular maintenance plan of boundary poles three times a year stated in the clausal V, pole maintenance procedures No.061/RSPO-PPBPN/2011. Clauses5.1 explains that the pole boundaries are maintained according to the map position of markers as an attachment document HGU No 06/HGU/BPN/89. Results observation into boundaries pole No. 09 and 11 found in good and preserved. However, the pole

Open (CFA)


ASSESSEMENT REPORT


No Ref Std



document (Book monument) which should be referenced in monitoring the position of stakes, not available on site.

2011.10 2.2.3 2.2.4

The process of conflict resolution - There is a claim by the Rural Community areas Laantula Jaya area of 134 ha (planting year 1997) in Division IV who have not got the deal completion process.

NC Estates Company must be able to provide documented evidence that shows that the entire settlement of the conflict through a process agreed by the parties

Stage 2 05/07/2011 Documents have shown PT TGK Agreement Between the People's Alliance Party Sues, dated May 18, 2011 related to the settlement area of the Village HPL Laantula Jaya area of ± 134 ha. The document was signed by the Senior Manager of UKE, representatives of the People's Alliance Sues, and known by the Head of Wita Ponda. In essence, both parties have agreed to bring Management Centre authorized to make decisions within two weeks. If, within the time specified there is no realization, then the community will harvest the area. Current conditions, the company is passive, and the area is already managed by the community.

Closed 05/07/2011

2011.11 2.2.5 Mechanisms of conflict resolution - The company does not have the conflict resolution procedures adopted by the parties.

NC Estates Company shall provide conflict resolution procedures that ensure the process of settlement accepted by the parties.

Stage 2 04/07/2011 Conflict Resolution procedure available No.059/TGK/2010, 5:16 clause expressly explained that the settlement of the conflict as soon as

closed 04/07/2011


ASSESSEMENT REPORT


No Ref Std



possible through a mechanism that is acceptable to all parties.

2011.12 2.3.1 2.3.2 2.3.3

Ownership of traditional rights - Results show the area of identification of HCV HCVHCV 4 and 5 in the work area TGK (traditional rights related to the utilization of natural resources in the form of hunting and fishing rights), but no evidence has been disseminated and available to the parties negotiated .

NC Estates Company must be able to prove that the ownership rights of traditional communities be respected, promoted, and regulated through negotiations with the owners of rights.

Stage 2 04/07/2011 TGK have shown evidence of the recorded evidence of socialization recognition of traditional rights, such as: A). Minutes of discussions with the relevant Heads of Village dated December 1 to 5, 2009. 2). Public Hearing attendance list HCVA on January 12, 2011, was attended by 21 participants. 3). Proof of delivery receipts socialization Documents Report Identification of HCV to the parties on the date June 20, 2011 (District Environment Office. Morowali, Plantation agency, Morowali district, Morowali Local Government Law Section).

closed 04/07/2011

2011.13 4.1.2 Mill SOP - There is evidence that shows that the UKF (Ungkaya Factory) has implemented a system supply chain product, which indicated the presence of TBS recording receipts and Daily Production Reports. However, to further refine the system, it is recommended that UKF provides SOP Supply Chain with reference to the requirements of the applicable RSPO supply

CFA Mill Stage 2 05/07//2011 UKF has a supply chain procedures 501/TGK-SPK-01/11 Revision No. 01 dated05/07/2011 on Standard Operating Product Traceability (Traceability), has covered person in charge, the method claims, determining the shelf life of documents, and training.

Closed 05/07/2011


ASSESSEMENT REPORT


No Ref Std



chain.

2011.14 4.2.1 Records of soil analysis - The company has a Land Survey Review and Evaluation of Land Suitability Class of 2005 who categorized land into three SPT. However, to obtain analytical results are closer to actual conditions, it is advisable to perform periodic Detailed Soil Survey.

CFA Estates Stage 2 02/07/2011 Based on the Letter to the Chairman SOU No. MRC. 034/RST-BJB/05/2011 dated May 12, 2011, has been scheduled for detailed soil surveys and feasibility for UKE as follows: detailed soil survey in 2012, and FS in August 2011 (priority for replanting plan area).

Closed 02/07/2011

2011.15 4.3.2 Management of land with a particular slope - the Company has made efforts for the management of soil erosion on a certain slope through the U-shaped Frond stacking, mulch empty bunch, and terracing. However, available evidence has not yet evaluated the level of effectiveness.

NC Estate Company shall provide evidence of the effectiveness of soil erosion control efforts have been made.

Stage 2 02/07/2011 Available SOP measurement of soil erosion (Policy No. II-04/MRC-SOP/10 dated May 25, 2010), set erosion monitoring each month. To measure the effectiveness of the application of U-shaped Frond stacking, mulch empty bunch, and terracing. The effectiveness of erosion control is monitored through erosion stakes posted on June 20, 2011 in block 63, 61 and 56.

Closed 02/07/2011

2011.16 4.4.1 Protection of water flow - There are some company policies to protect the flow of water and the border rivers, which include the management of border rivers as HCV. However, insufficient evidence has been done consistently. Example: not found zoning boundaries are clear and appropriate measures for the protection of demarcation Ungkaya River in Block 151.

NC Estates Company should review the policies to implement the management of HCV and the demarcation of the river.

Stage 2 06/07/2011. TGK has demonstrated the realization of zone buffer boundary at the site, including the border area of the river Ungkaya in block 151. Field visit to block 21 and block 27 Division II (S. Polopi buffer zone) was found to progress the implementation of the buffer zone boundary river of

Closed 06/07/2011


ASSESSEMENT REPORT


No Ref Std



yellow paint on staple crops and planting of woody plants (Agathis, linggua, mahogany, etc.).

2011.17 4.4.3 Records of monitoring effluent BOD - The company has conducted monitoring of factory effluent BOD periodic monthly by the Centre for K3 Napier. However, there were no evaluation results and corrective actions on the results of measurements that exceed the threshold. Example: Measurement of February 2011 from a pool of 5 (BOD5 306.27 ppm whereas quality standards pp. 250 - Decree No. LH. Kep-51/MENLH/10/1995); Swimming 7 (BOD5 - 331.79 ppm; COD 522.27 ppm quality standards while BMA 500 ppm).

NC Mill Company must be able to show proof that all monitoring results have been evaluated and acted upon.

Stage 2 05/07/2011 The company understands that the deviation of effluent BOD test results, standard errors are caused by the Quality Standard is used. Standards should be referred to Regent Decree No. 660.06/002/KLH/II/2009 dated February 13, 2009 Quality Standards which set maximum 3,000 ppm BOD.

Closed 05/07/2011

2011.18 4.4.4 Records of use of water for the plant - Available recording monthly water use contained in the Report Process Control. However, to facilitate the evaluation, it is advisable to make annual recapitulation.

CFA Mill Stage 2 05/07/2011. Recapitulation recording water use has been available. As of June 2011 was recorded as follows:

- Processing: 128,817.20 m3,

- Cleaning plant: 172,133.19 m3;

- Bulking station: 1467.67 m3;

- Domestic: 21,342.00 m3.

Total July 2010-June 2011:

323,760.06 m3.

Closed 05/07/2011

2011.19 4.5.1 IPM Program - Not enough evidence that TGK have IPM programs. For example: owls for rat, planting beneficial plants for the caterpillars of fire, etc.

NC Estates Company shall provide the IPM program documented.

Stage 2 02/07/2011 The company has shown a document IPM program beneficial form of investment that is Casia cobanensis,

Closed 02/07/2011


ASSESSEMENT REPORT


No Ref Std



Turnera subulata, and Antigonon leptosus; detection of Setothosea asigna and monitoring of rodents. Pest control mice performed chemically using pesticide Ratgon.

2011.20 4.5.2 Monitoring IPM activities - Not enough evidence that TGK has consistently carry out the monitoring activities of IPM. Example: the results of monitoring / census rat after August 2010 are not found anymore.

NC Estates Company shall provide evidence of monitoring the results of IPM activities is complete and consistent.

Stage 2 02/07/2011 Companies can indicate an attack rat realization of monitoring activities conducted periodic every month (Documents Division I UKE, May 2011).

Closed 02/07/2011

2011.21 4.5.3 Records of monitoring the toxicity of pesticides - Not available evidence indicates that TGK been monitoring the toxicity of pesticides (active ingredient / LD 50 per ton FFB).

NC Estates Company shall provide record monitoring toxicity of pesticides (active ingredient / LD 50 per ton FFB).

Stage 2 04/07/2011 The company has a record of pesticide use including the monitoring of toxicity (the active ingredient / hectare) in the form of matrices that inform the use of Chemist types of chemicals used, active ingredients, the location and extent of use, and the dose used.

Closed 04/07/2011

2011.22 4.6.1 Agro chemicals listed - There are 3 (three) types of agro-chemicals that do not have a registration number from the competent authority, namely Starane, Lindoming, and Karmex.

NC Estates TGK must ensure that all types of agrochemicals used already have a registration number from the competent authority.

Stage 2 04/07/2011 The company has completed the registration number of the entire agro-chemical materials used, including Starane (RI 854/7-2009/T), Lindoming (RI 867/5-2006/T) and Karmex (RI.51/9-90/T).

Closed 04/07/2011

2011.23 4.6.2 Records of pesticide use - TGK have records that inform the amount of pesticide use and the number of applications, but do not

NC Estates Company shall provide records of pesticide use include active ingredients used.

Stage 2 04/07/2011 TGK matrix recordings have shown the use of pesticides including active ingredients

Closed 04/07/2011


ASSESSEMENT REPORT


No Ref Std



include information active ingredients used.

used. i.e. Prima up - isopropilamina glyphosate; starane - fluroksipir; redgon - brodifacum; metaprima - methyl metsulfuron. closed 04/07/2011

2011.24 4.6.3 Sprayer - Not enough evidence that personnel involved in the application of chemicals has been trained to follow appropriate use and storage instructions on the label.

NC Estates Company shall provide proof of training in the use of chemicals for all your users.

Stage 2 04/07/2011 TGK recordings have shown evidence of training in the use and storage of chemicals in the form of Attendance List dated May 24, 2011; training materials include ways the use of tools, clothing, the introduction of chemicals, and help in case of poisoning. Instructor: Dr. John Mianto Alsim.

Closed 04/07/2011

2011.25 4.6.4 Management of packaging waste pesticides - Found managing packaging waste pesticides that are not in accordance with the rules and regulations (PP. 85 in 1999; PP 74 of 2001). For example: pesticide packaging waste in temporary storage at the UKE is not permitted.

NC Estates Company should review the policy for the management of packaging waste pesticides so in accordance with applicable regulations.

Stage 2 O6/07/2011 Observations to the warehouse UKE (Ungkaya Estate) and cross check to the warehouse UKF (Ungkaya Factory), found evidence of pesticide packaging waste handover from the estate of 27 units. All receipts have been recorded to document the monitoring of waste B3 in UKF.

Closed 06/07/2011

2011.26 4.6.6 Periodic Health Examination for the operator - Have not found evidence to show that periodic health examinations for operators involved in agrochemical applications have been implemented.

NC Estates Company shall provide a routine inspection program for all operators involved application of chemicals.

Stage 2 04/07/2011 TGK have shown schedule periodic medical examinations for employees who are involved chemical application period May 2011 - April 2012, prepared by the company doctor, among others, to inform the execution

Closed 04/07/2011


ASSESSEMENT REPORT


No Ref Std



time of inspection procedures and fields of work. Examination of the employees and workers spray fertilizers has been conducted in May and June 2011.

2011.27 4.6.7 Sprayers from pregnant or lactating women - Following cases in 2009, where a power sprayer from women who are pregnant 8 months (Sri Astuti), it is recommended that company create a standard procedure not to use power sprayers from women who are pregnant or breastfeeding.

CFA Estates Stage 2 04/07/2011 TGK have shown an effort to make the protection to pregnant and lactating women, among others:

Install a sign board ban for pregnant / lactating to work on job-related chemicals. Sign board mounted in the Office of each Division.

Publishes Memorandum No. 605/TGK-UKE/Pers/V / 2011 concerning prohibition for pregnant / nursing to work in the field. Including means of identifying, reporting and evaluating if there are pregnant / lactating working spray / fertilizer.

Closed 04/07/2011

2011.28 4.7.4 Periodic health examination for a particular station operators - UKF has shown evidence of the implementation of periodic inspections for operators who worked at the station at high risk. However, examination of material not specifically

NC Mill Company shall review the material routine examinations for operators who work in a particular work station.

Stage 2 05/07/2011 The company has demonstrated schedule medical examinations for employees of the factory (August 2011).

Closed 05/07/2011


ASSESSEMENT REPORT


No Ref Std



lead to the kinds of health risks in accordance with the field work.

2011.29 4.7.6 Records of training program K3 - Not enough evidence that the company has recorded consistently K3 training programs in all areas. Example: In the UKF available documents Training Plan, Briefing Attendance List, and related training certificates K3, but not yet available on tape.

NC Estates and Mill

Company shall provide and implement training programs consistently include K3 and estate

Stage 2 06/07/2011 The company has shown throughout the OHS program training records of the attendance list, the documentation in the form of photographs, certificates, and training materials. Example:

Emergency training and fire response - date June 17, 2011, material: Basic Fire Fighting Training, and handling P3K. Followed by 26 participants/

External Training ungkaya factory - Date 20 April 2011. Training materials: System-level automatic controls of boiler drum aerator and stew. Followed by 8 people.

Closed 06/07/2011

2011.30 4.7.7 The process of preparedness and emergency response - not found evidence that shows that the emergency response simulation has been carried out in the UKE.

NC Estates Company should have done a simulation evidence of the emergency response.

Stage 2 02/07/2011 There is evidence that the company was conducting fire prevention emergency response simulation of land on June 18, 2011 attended by 21 participants for level assistants, managers, supervisors, and operators. Example: K Amzar Tattoos (Senior Assistant), DJ Tenny (Head of Security), Kadek Adi (Krani

Closed 02/07/2011


ASSESSEMENT REPORT


No Ref Std



Agronomy), etc. Evidence of implementation of emergency response simulation is also available in the form of instruction execution, the process of fire fighting scheme, and photographs.

2011.31 4.7.8 Equipment P3K - There was no evidence that P3K equipment has been provided at the work site.

NC Estates and Mill

Company shall P3K providing equipment at each work site in accordance with the level of vulnerability accident.

Stage 2 04/07/2011 Equipment first-aid box P3 form is available at a location easily accessible if needed for example in the division office, club house workshops, schools and central offices. P3K box containing gauze, bandages, plasters, cotton, masks, and various types of soft drugs.

Closed 04/07/2011

2011.32 4.7.9 The presence of trained personnel P3K - no evidence has been done P3K training for workers in the UKE.

NC Estates Company shall provide training programs for workers P3K.

Stage 2 04/07/2011 The company has demonstrated proof of First aid training for estate employees that was held on June 17, 2011, followed by skilled foremen and orderly division. All personnel who are trained are still actively working in the area.

Closed 04/07/2011

2011.33 4.7.10 Records of occupational injuries - TGK have shown proof that Accident Monitoring evaluated regularly (monthly). However, the company has not been carefully analyzed the cause of the accident, so it is still kind of accident that happened over and over.

CFA Estates Stage 2 06/07/2011 The company has shown evidence of analysis of causes of occupational injuries is good for every kind of workplace accidents. Example: The case dated 8 April 2011 on behalf of Herman (SKU-loader

Closed 06/07/2011


ASSESSEMENT REPORT


No Ref Std



Example: In the period July 2010-March 2011 264 cases of occupational accidents occurred in the estate, where the type of accident stab wounds exposed palm midrib occurred more than 20 times.

Division II); type of left calf injury caused by stab wounds to the fall of the fruit; cause of the accident: do the loading exceed the height of the truck.

2011.34 4.8.1 The training program according to job competence - There was no evidence that UKE has had continuous training programs for staff, employees and farmers in accordance with the competence of each position.

NC Estates Company shall provide continuous training programs for workers and farmers in accordance with its competence.

Stage 2 05/07/2011. The company has demonstrated Matrix realizations plans and internal training for mill and estates employee’s, that describes the training needs of employees of each Division / Station on (SOP, HIRAC and Target Work and general training all employees who obtained the plant on the RSPO, K3, Environment and Health); Plan months of implementation and Instructor. For example: Energy Training Program fertilizers in August 2010, realized at date of June 11, 2011, training materials: SOP fertilization, Safety Briefing PPE, HIRAC Fertilization, Accident Analysis UKE implemented in the Division II UKE by PSQM Assistant and Senior Assistant UKE. There is also a document Guidance Program Extension and Farmers Plasma 2011/2012 as well as document the realization of Farmers Plasma Counselling and Guidance

Closed 05/07/2011


ASSESSEMENT REPORT


No Ref Std



years 2008-2010.

2011.35 4.8.2 Records of training for employees - Company have not been able to show records of training for each employee UKE.

NC Estates Company shall provide training records that have been followed by the employee.

Stage 2 05/07/2011. The company has shown monthly training records for employees and SKUs, which include matrix Employee Training History Staff PT TGK Period 2008 - 2011 which informs the type of training, total hours of training, training materials, implementation dates, training location and executor. Example: Regular training for farmers. Last training conducted on May 20, 2011 at Bahombelu with the title Development of Plasma Tani conducted by the Manager, Senior Assistant and Assistant Plasma.

Closed 05/07/2011

2011.36 4.8.3 Proof of contractors trained - Company cannot show proof of documentation that shows that the contractor has used the skills qualifications in the field of work.

NC Estates Company must be able to show records that indicate that contractors have qualified skills in the field of work.

Stage 2 05/07/2011 The company requires prospective contractors are qualified according to the type of work to do, which must be proven with Work Experience List. Example: Completed Documents contractor PT Sinar Wahyu Pratama road construction contractor including company profile, list of work experience years 2006-2010, and certificates of Enterprise Services Construction No. Pelaksana.0094/ASPEKINDO/19/05/11.

Closed 05/07/2011


ASSESSEMENT REPORT


No Ref Std



2011.37 5.1.2 6.1.4

Records of periodic environmental management Report – The company have shown documents of RKL / RPL Period I and II in 2010, but have not been sent to relevant institution

NC Estates and Mill

Company should review the policies associated with the mechanism of report submission to the competent authority to be able to ensure that all reports have been submitted in a timely manner.

Stage 2 01/07/2011 The company has demonstrated proof of submission of the RKL / RPL report Period 2010 (Semester I and Semester II) to the Head Office of Environmental Morowali District, by letter dated 670/TGK-UKE/SM/VI/2011 June 22, 2011. Accepted by staff BLH dated June 24, 2011.

Closed 01/07/2011

2011.38 5.1.3 6.1.3

Environmental Impact Analysis Revision - Company have not been able to explain the results of the EIA revised regarding to differences between the actual area (4,712 ha) TGK with HGU area (4,145 ha).

NC Estates and Mill

The Company shall ensure that all areas have been included in environmental studies.

Surveillance1

01/07/2011 TGK could not explain the revised EIA document that includes the actual area of the management (4,712 ha).

Open (Minor)

Observation and verified on 28/11/2011. Company could explain that the EIA document which has been approved by the EIA Commission; April 2005 has covered TGK areas of 15,000 ha, including block 140 - 149. The actual conditions of the environmental and social aspect has been identified and monitored. Environmental Management Report still in the process to be fulfilled. The company monitored these area by Enrichment plant (like Ficus and


ASSESSEMENT REPORT


No Ref Std



bamboo) in riparian belt to avoid erosion and also put signboard in no animal hunting.

2011.39 5.2.1 The results of species identification and HCV - Available on identification document that establishes the existence of HCV 1; HCV 2: HCV 4; and HCV 5 and a number of protected species in the area TGK. However, no evidence has been carried out public consultation as required in the Toolkit Identification of HCV in Indonesia.

NC Estates Company shall provide evidence that the determination of HCV has been carried out public consultation in accordance with the Toolkit identification of HCV in Indonesia.

Stage 2 02/07/2011 The company has shown Attendance Activities HCVA Public Hearing date of 12/01/2010, was attended by 21 participants representing PT TGK (5 personnel), Local Government (6 personnel), relevant government agencies (5 personnel), public figures, including farmers' plantations (5 personnel). There is also documentation of the implementation of public consultations conducted by mail to the Forestry and Plantation Morowali District, Head of Morowali District Environment Office, District Offices and Head of Legal Morowali (Letter No. 663/TGK-UKE / SM/VI/2011 date 20.06.2011) and the University Tadulako (via email - [email protected]).

Closed 02/07/2011

2011.40 5.2.2 Management of species and HCV - Not enough evidence to show that TGK has made the management of HCV species and refers to the recommendations of the identification of HCV and regulations.

NC Estates Company should reassess management programs and the HCV species that has been done.

Stage 2 02/07/2011 The company has shown a matrix management programs HCV refers to the recommendations of the identification of HCV. The management program specifies the type of management (HCV marking boundaries, enrichment plants,

Closed 02/07/2011



ASSESSEMENT REPORT


No Ref Std



installation of information boards), and procedure execution time.

2011.41 5.2.4 Steps to protect species and their habitats - Company have not been able to show proof of having carried out the steps the management of protected species and their habitats through the control of hunting, fishing, or illegal logging according to relevant regulations.

NC Estates Company shall review the management of HCV program.

Stage 2 02/07/2011 TGK have shown documents the implementation of protected species to employees who held on 17.06.2011, followed by 15 personnel. Materials provided: Animal Indonesia which refer to Regulation No. 7 / 1999. At the site can be found signboard ban on hunting and clearing land, and poisoning of fish in the block 21 (Division II), 90 and 97 (Division III), 107 (Division IV).

Closed 02/07/2011

2011.42 5.2.4 Warning presence of protected species - was no evidence that shows that TGK has to provide and disseminate (to employees and the public) posters, warning signs about the presence of protected species along with information handling.

NC Estates Company should reassess species management programs and the HCV.

Stage 2 02/07/2011 See explanation above observations CAR 2011.41.

Closed 02/07/2011

2011.43 5.2.5 Officers trained management of species and HCV - Have not found evidence establishing specialized and trained personnel to oversee the management plan for the species and HCV in the work area TGK.

NC Estates Company shall provide evidence of competence for personnel assigned to the supervision of the management of HCV.

Stage 2 02/07/2011 The company has set as the official coordinator Omar Al'amri management of HCV in PT TGK based Senior Manager Letter Number 656/TGK-UKE/VI/2011 dated 07 June 2011. Evidence of HCV to Umar Al'amri training available in the form of Attendance List dated June 25, 2011 by Ki Agus Rasyidi. Total participants

Closed 02/07/2011


ASSESSEMENT REPORT


No Ref Std



were 25 people at the rank of foreman, assistant and head of administration.

2011.44 5.3.1 Identify sources of waste and pollution - There was no evidence (documentation) the identification of sources of waste and pollution.

NC Estates and Mill

Company must provide proof of identification of sources of waste.

Stage 2 04/07/2011 TGK have shown a document on identification of pollution sources of waste and waste containing information sources, and both types of waste from the estate. Sources of plant waste: the station processing, machinery, vehicles, chemical storage, employee housing. While the source of estate waste generator consists of houses, workshops, chemical warehouses, residential, clinic.

Closed 04/07/2011

2011.45 5.3.2 Waste management plan - not enough evidence that the company has implemented SOP and SOP No. No. 709/TQEM-ESH/10. RSPO/5.3/PLB3 & BB3 about waste management. Example: used oil reuse of data found on 4 November 2010 as many as 600 litters for gearbox machine in MCC.

NC Estates and Mill

Company should review the procedures and implementation of waste management.

Stage 2 05/07/2011 The observation to waste storage in Mill shows that the company has implemented a waste management procedures and non B3 consistently. Example: There suitability of B3 waste that is stored with the record, set of symbols, and provides recording revenues and expenditures.

Closed 05/07/2011

2011.46 5.3.3 Hazardous waste management plan - Company not consistently implement the SOP No. RSPO/5.3/PLB3 & BB3 on the Hazardous waste Management and B3 Not PLB3 & BB3 documents. Example:

NC Estate Company should review the SOP and implementation management of B3 waste

Surveillance I

05/07/2011 The company has shown evidence of an official report No. handover. 01/BAP-LB3/05/2011, where was 2,200 litters of used oil,

Open (CFA)


ASSESSEMENT REPORT


No Ref Std



still found contamination of diesel fuel and used oil directly into the ground in the tank of diesel and waste storage facilities, while the B3 in the factory;

Found packaging waste agro-chemicals in the warehouse UKE which is not permitted.

used batteries 50 pieces, and 27 packaging of pesticides have been submitted to the warehouse. However, the Company must refine back the progress of B3 and B3 waste management in the factories and estate to guarantee no directly contamination B3 waste liquid to the ground. For example: (1) canopy diesel tank at POM, (2) floors of fuel depots and oil lines and fuel tank traps on traction.

2011.47 5.3.4 Records of waste monitoring - monitoring records available waste that contains information: date, type of goods, the amount received, the number came out, and the warehouse stock. However, do not cover all types of waste as set forth in SOP RSPO/5.3 / PLB3 & BB3. For example: scrap metal, scrap tires.

NC Estates and Mill

Company should review the procedures and implementation of waste management rather than B3 and B3.

Stage 2 04/07/2011 The company has shown a monitoring document of hazardous waste, including used pesticide packaging, used oil, used batteries, metal and old tires.

closed 04/07/2011

2011.48 5.4.1 Monitoring the use of renewable energy - Not available evidence of monitoring and analysis of efficient use of renewable energy (e.g. shells, fibber).

NC Mill Company shall provide records of monitoring and evaluation of the use of renewable energy.

Stage 2 05/07/2011 Records of monitoring of renewable energy available in the form of matrices and graphs use of shells and fibber. 2010-2011 (until May): the use of shells of 9,854,749 ton (9,464,969 tons budget). The use of fibber (until May): 20,389,137 tones (19,582,694 tons budget) - 169 909 472 tons of FFB processed.

Closed 05/07/2011


ASSESSEMENT REPORT


No Ref Std



Usage of diesel fuel - 71 032 l / kwh; turbine 3,276,536 tons / kwh.

2011.49 5.5.3 Procedures land fire emergency response - There are 3 (three) types of fire-related SOPs No SOP. 730/TQEM-ESH/10; SOP RSPO/B.4.1/TGK; and SOP 727/TQEM-ESH/10. However, none of which regulate land fire emergency response.

NC Estates Company should reassess the fire SOP, and ensure it includes land fire emergency response

Stage 2 02/07/2011 TGK has compiled a Fire Response SOP Land Policy No. 501/TGK-UKE-05/11 such as, set on the Prevention of fires (Clause 2.1), fire control land (clause 2.2), and activities after the fire goes out (clause 2.3). There is evidence that emergency response simulation was executed on June 18, 2011 attended by 21 participants for level assistants, managers, supervisors, and operators.

Closed 02/07/2011

2011.50 5.5.4 Facilities and infrastructure land fire prevention - Not enough evidence to show that TGK already have land fire-fighting facilities in accordance with the level of its vulnerability.

NC Estates Company shall ensure that fire prevention facilities and infrastructure are in accordance with the level of its vulnerability

Stage 2 02/07/2011 TGK have shown the results of the evaluation of the effectiveness of fire fighting equipment based on the ownership of the target time on the simulation of fire fighting extinguishing land dated June 18, 2011. The type and number of extinguishers consist of: a car tank (1 unit), fire beaters (4 pieces), hoes (6 pieces), scratch (4 pieces), machetes (6 pieces), buckets (6 pieces), the engine pump (1 units), and a communication tool (2 pieces handy talky).

Closed 02/07/2011


ASSESSEMENT REPORT


No Ref Std



2011.51 5.6.1 Proof of identification of sources of pollution and emissions at the plant - Available recording and monitoring of pollution emissions, but not enough evidence to show that UKF has a document on identification of pollution sources and emissions.

CFA Mill Stage 2 05/07/2011 The company has shown the matrix identify the emission sources and their management, including information sources of emissions, emission type, the type of flue gases, classification, and management (reuse / recycle / disposal, and landfills. UKF emission sources include: the cooking station, clarification station, station boilers, engine rooms, and vehicles.

Closed 05/07/2011

2011.52 6.1.1 6.1.2

Documentation of social impact analysis - Available results of the Social Impact Assessment which includes the identification of positive and negative impacts. However, only limited involvement of the community as a source of information.

CFA Estate Stage 2 05/07/2011 The company has shown a recording of complaints, including complaints from the parties on the impact of company operations. Numerous complaints have been responded by the company for instance, complaints from villagers of Ungkaya related pollution due to waste disposal plant in the Lalangkai River. Corporate action of river water quality testing conducted by the Laboratory Centre for K3 Makassar. The test results revealed that the quality of river water does not exceed the applicable Quality Standards in accordance Decree LH. 51/1995.

Closed 05/07/2011

2011.53 6.2.1 Procedures of communication and consultation with the public - There are several related communication and

NC Estate and Mill

Company should review the procedures to ensure communication and consultation

Stage 2 05/07/2011 Company have shown documents RSPO/6.2/KKM procedure where

closed 05/07/2011


ASSESSEMENT REPORT


No Ref Std



consultation procedures, but do not include communication and consultation with affected communities.

has included consulting the affected communities.

clause No. 6 explains that the community consultation carried out by way of providing a mailbox on the Central Estate and each Division, and provide an email address ([email protected]). Available recording of evidence of communication and consultation with the community in the form of Attendance & Minutes Development Socialization Plasma by PT. TGK to the parties on May 12, 2011.

2011.54 6.2.3 Records of the aspirations of the community - not found records, procedures, or policies that ensure that all people's aspirations will be addressed and documented.

NC Estate and Mill

Company shall ensure that all people's aspirations will be recorded.

Stage 2 05/07/2011 The company has demonstrated the revised SOP Public Complaints number 058/TGK / 2010; where clause 5.7 asserts that all complaints, suggestions, and aspirations of the community will be recorded into bundles Incoming Mail Register and will be taken no later than 2 weeks from the date the letter was received ,

Closed 05/07/2011

2011.55 6.3.2 Records of the handling of complaints - not enough evidence that TGK had any treatment for complaints of the parties. Example: not found a recording act with respect to public complaints through the BLH (verification of date 02/11/2011), which is turbid and smelly in Lalangkay River.

NC Estates and Mill

Company shall ensure that all complaints responded to and acted upon.

Stage 2 02/07/2011 Company recordings have shown the handling of complaints, including complaints submitted through the Ministry of Environment dated 11/02/2011 Morowali District responded in March 2011. There is also Action Plan as a follow up of recommendations KLH Morowali

Closed 02/07/2011


ASSESSEMENT REPORT


No Ref Std



district No. 090/74/KLH/2011 dated June 22, 2011.

2011.56 6.3.3 The procedure for calculating compensation - no available evidence indicates that TGK already have procedures to identify and calculate fair compensation for the loss of community land rights.

NC Estate Company shall provide procedures to identify and calculate fair compensation for loss of land rights communities.

Stage 2 06/07/2011 The procedure for calculating the compensation has been included in the Procedures and Standards Identification Number Land Indemnity clause 4 001/PSDS-L U.S. & compensation deliberative process.

Closed 06/07/2011

2011.57 6.4.2 Records of identification of the parties to receive compensation - no available evidence that already has a record of identification TGK parties who receive compensation.

NC Estate and Mill

Company shall have procedures to ensure that parties who receive compensation have been identified.

Stage 2 06/07/2011 Records of the parties to receive compensation has been provided in the form of compensation bundles. For instance: land restitution on behalf of the Sudirman (Ungkaya village). Records of compensation available in the form of receipts for compensation of land with a nominal IDR 10,000,000 (ten million rupiahs),

Closed 06/07/2011

2011.58 6.4.3 Recording the process of negotiating compensation - No available evidence shows that TGK already have a recording compensation negotiation process.

NC Estate and Mill

Company shall provide procedures to ensure the whole process of negotiating compensation will be recorded.

Stage 2 06/07/2011 Records of negotiations of compensation available in the form of bundles of documents of land compensation consisting of: Minutes of the deal result of deliberation, a map of the measurement results, and receipt of payment. Examples: land compensation on behalf of Sudirman, BAP is known by the Head of Bungku Barat dated July 19, 2003, the location of land in Block

Closed 06/07/2011


ASSESSEMENT REPORT


No Ref Std



4 & 7 of ± 8.75 ha, and receipt by the compensation value of IDR 10,000,000 (ten million rupiahs).

2011.59 6.4.4 Records of implementation of the compensation payment - Not enough evidence that TGK has provided recording compensation payments.

NC Estate and Mill

Company shall have procedures to ensure that all compensation payments will be recorded.

Stage 2 06/07/2011 See explanation on CAR 2011.58 Observation above.

Closed 06/07/2011

2011.60 6.5.2 Collective Labour Agreement - Not enough evidence that TGK has Collective Labour Agreement document has been agreed for the current year.

NC Estate and Mill

Company shall provide the CLA that has been approved for the current year.

Surveillance 1

01/07/2011. TGK have shown Labour Agreement documents the period 2010 - 2012 are set out in Jakarta on November 3, 2010 by the Director General of Industrial Relations Labour and Social Security No. KEP.155/PHIJSK-PkkAD / PKB/IX/2010. CLA applies to staff and non staff workers, while the CLA for employees SKU (unit) is still in draft form. CLA from 2011 to 2013 are still in the process of finalizing the discussion. Although PKB period 2010 - 2012 for staff and non staff has been established by the relevant authorities, company should also facilitate the acceleration of the finalization of the collective labour agreement for employees SKU.

Open (CFA)

2011.61 6.5.4 Requirements for contractors comply with labour laws - is not enough evidence that the working agreement with the contractor

NC Estate and Mill

The company must have a mechanism to ensure that the SPK with a contractor already requires

Stage 2 05/07/2011 No. TGK shows an example SPK. EST / UKE / SPK-LKL / VI /

Closed 05/07/2011


ASSESSEMENT REPORT


No Ref Std



has TGK require contractors obey regulations in terms of employment.

contractors comply with all applicable laws in terms of employment

2011/123 (fence building work contract with Abdul Muis) where clause 10.3 requires the contractor to meet safety standards. The company also has a Senior Manager Number 666/TGK-UKE/SM/VII/2011 memorandum dated May 1, 2011, among others, highlights some of the requirements for contractors in terms of wages, minimum age of workers, the use of PPE, implement K3, and pay taxes.

2011.62 6.6.2 Records of meetings with trade unions - was no evidence that shows that have been conducted meetings with the union.

NC Estate and Mill

Company shall ensure that all the results recorded meetings with trade unions.

Stage 2 02/07/2011. Based on the explanation of the Chair of SPSI and administration, that since 2004 SPSI TGK stagnated in the environment (not active) that has never been a meeting between unions and companies.

Closed 02/07/2011

2011.63 6.9.1 6.9.3

Policy on the prevention of sexual harassment - Available Gender Policy Implementation Guidelines No. 700/PD-KG/10 commission governing the formation of gender and sexual harassment prevention, but not yet approved by the authorities.

CFA Estate Stage 2 03/07/2011 The company has a Gender Policy Implementation 701/TQEM-ESH/10 which was approved by the Manager and Chairman PSQM SOU 7 on the date of July 1, 2011 and distributed on July 1, 2011.

Closed 03/07/2011

2011.64 6.9.5 The mechanism of handling complaints - Not enough evidence to show that TGK

NC Estate and Mill

The company must have a mechanism for handling complaints

Stage 2 03/07/2011 Mechanism for handling complaints

Closed 03/07/2011


ASSESSEMENT REPORT


No Ref Std



has had complaints mechanisms related to protection of women.

related to the protection of women. related to the protection of women have been included in clause 6.4 (Complaints Procedure) of the SOP Implementation of Gender Policy No. Minamas Plantation. Policy: 701/TQEM-ESH/10 dated July 1, 2011.

2011.65 6.11.1 A contribution to local development – The company is highly recommended that review the CSR program that has been done, to reduce programs that are personal donations. CSR program should be prepared based on the identification of priority needs (basic needs) from the community or communities affected, including consideration of gender issues.

NC Estate Surveillance 1

05/07/2011 The company has developed a CSR program for 2011, consider the needs of the community, for example: scholarships, repair religious facilities, and repair of village roads. The company also proven to have paid duty the land tax of IDR 510, 237 076, - (2010) and payment of CPO fees amounting IDR 75,129,056 - (2007), IDR 87,466,172 (2008), and IDR 75,473,750 (2009). However, the company should be able to present evidence that CSR programs include records of the results of the identification of needs, development priorities plan and implementation record.

Open (CFA)


ASSESSEMENT REPORT


3.5.2 Summary of Non-Conformance, Corrective Action and Observation on Stage 2

No. CAR

Ref Std

Non Conformance Grade Area Corrective Action Request

Time Limits Date and Observation

Status Closing Date

2011.05 2.1.1 2.1.1 Compliance with legal requirements - It is recommended that company review the mechanisms in the preparation and submission of regular reports to relevant authorities so it can be timelier. Example: reporting of RKL / RPL semester I & II in 2010 to the Office of Environment submitted in June 2011.

CFA Estate and Mill

Surveillance 1

2011.08 2.2.1 Document tenure - Company cannot show the synchronization document between the Area Statement (4,712 ha); HGU statement 06/HGU/BPN/89 (area 4,145 ha), and land tax payments SPPT (area 4,588 ha).

Minor Estate The Company must be able to provide the document of land possession which covers the work area.

Surveillance I Observation and Verified on 01/12/2011 The company has been able to show documents that include tenure area of 4,712 ha, which have acquired tenure area of 4,145 ha HGU. There are ± 567 ha is in the process to obtain HGU. The company has proposed circumference measurements letter 09/UM/TGK/XI/2011 dated 24 November 2011 (cadastral) for an area of ± 567 ha in the village of Laantula Jaya, Wita Ponda Sub district. These letters was submitted to the National Land Agency of Sulawesi Tengah Province.

Open


ASSESSEMENT REPORT


No. CAR

Ref Std



Status Closing Date

2011.09 2.2.2 The legal boundaries - The results of field observations to pal number BTS 09 and BTS 11, was found pal limits are found in good condition and maintained in accordance HGU No map attachment. 06/HGU/BPN/89. However, Company need to complete the document legal (pole Books) referenced in monitoring the position of stakes in the field.

CFA Estate Surveillance 1

2011.38 5.1.1 5.1.3 6.1.3

Environmental management documents - TGK not been able to present evidence showing that the entire management of work area (4,712 ha) have been included in the EIA document. Block 140 until 149 is not included in the scope of the EIA analysis.

Minor Estate The company shall ensure that all areas have been included in the environmental assessment (EIA).

Surveillance 1 Observation 28/11/2011. The EIA document which is approved by the EIA Commission; April 2005 has covered all areas of 15,000 ha, including block 140-149. The actual conditions of the environmental and social aspect has been identified and monitored. Environmental Management Report still in the process to be fulfilled. The company monitored these area by Enrichment plant (like Ficus and bamboo) in riparian belt to avoid erosion and also put signboard in no animal hunting.

Open


ASSESSEMENT REPORT


No. CAR

Ref Std



Status Closing Date

2011.46 5.3.3 B3 waste management - Companies should enhance the progress of the re-B3 and B3 waste management in the factories and farms to guarantee no directly contamination B3 waste liquid to the ground. For example: (1) canopy diesel tank at POM, (2) floors of fuel depots and oil lines and fuel tank traps on traction;

CFA Estate and Mill

Surveillance 1

2011.60 6.5.2 Collective Labour Agreement - Although PKB period 2010 - 2012 for staff and non staff has been established by the relevant authorities, company should also facilitate the acceleration of the finalization of the collective labour agreement for employees SKU.


2011.66 3.1.2 Replanting plan - Related replanting plan that will begin in 2011, it is recommended that prior studies document provides the environment and incorporate the results into a report monitoring the implementation of the RKL / RPL.


2011.67 4.4.3 5.3.2

Wastewater management - Block application of liquid waste utilization (50, 57, 58, 59, 62, 63, and 67) are not in accordance with Morowali Regency Decree 660.06/022 / KLH / II/2009 applications where the block is set at block 62 and 49 Afdeling 1.

Minor Estate Company shall implement wastewater treatment associated with maintaining the quality of surface water and groundwater in accordance with applying in accordance with the block of land established by Decision Morowali Regent.

Surveillance1

2011.68 3.1 SCC After RSPO certificates issued, the company must complete the sales documents / palm oil shipments to the information, as follows: 1. Names and addresses of customers, 2. Date invoice issued, 3. Description of products that include a category of

Minor Mill Companies must completed sales documents / palm oil shipments to the information in accordance with existing requirements.

Surveillance 1


ASSESSEMENT REPORT


No. CAR

Ref Std



Status Closing Date

material (mass balance), 4. Quantity of products sold. 5. Reference document transport.


ASSESSEMENT REPORT


3.6. Summary of Arising Issues from Public, Organization and Auditor Response

No Public Issues

Organization Response Auditor Response

1 Community Leaders of Laantula Jaya

Critics of the oil palm plantation on the banks of the river.

Planted in the year 1989 - 1990 & before any provision of the RSPO and ill all places, now all has become the buffer zone.

PT TGK has set a border area of the river as the area of HCV 4.1 and 4.3 which is a conservation area so there are several steps for management. Among the efforts that have been Sign Board Borders is the installation of the river, marking the area that should not be applied agrochemical. See also 5.2 and 4.4.

Planting outside the region HGU (in the Ungkaya & Bumi Harapan village)

There is a crop year 1997, Block 145-149, at the opening outside HGU land that was originally corridor between APL vaporous boundaries

There is already a decision of the Local Government Morowali dated June 13, 2011 Avg.590/0185/ADPUM/VI/2011 about giving opportunity to the Laantula Jaya community to manage the area covering 134 (land claimed).

CD funds are not granted to the village During this program is given in the form of the material / physical because not in the form of money / funds coaching.

Community development programs including allocation of funds has not been carried out in accordance basic need has not been made public and transparent.

2 Ex Chief of Laantula Jaya

PT TGK less sensitive to community Management is not willing to respond because the questioners who choose a track record many problems.

Will be verified, whether the company has a procedure / mechanism to respond to public complaints. SOP on the Management of Complaints Handling Mechanism RSPO/B.4.9/TGK PT, TGK has a record of complaints handling and action plan as a follow up of complaints related parties. See indicator 6.3.1 and 6.3.2.

3 Villagers Moahimo

Welfare levels are rising, but also many negative effects of social impact, no PR from the company.

Public relation played by head of administration in the Unit, If programs that its head office policy, PSD team went down to the field.

Community development program not known by the public

The program was implemented through head of village or chief of sub-district. Related to scholarship program was socialized directly to the teacher and parents.

Socialization of Community development program has not been made transparent and corresponding basic need of society.


ASSESSEMENT REPORT


No Public Issues


There is no transparency regarding recruitment of manpower.

The company has a transparent associated with recruitment. Announcement of recruitment accessible to the public. For example in the factory if there is a job announcement posted on the bulletin board. While the estate, there was an announcement in the workshop.

Socialization to the community about the mechanism of recruitment and provision of information that is more open to the parties.

Planting by the river. The Company has established the region as an area of the river commensurate HCV 4.1and is set to be managed as a conservation area

PT. TGK has expected to re-arrangement according to local regulations on protected areas related the presence of border rivers.

HGU-related, there is growing outside the HGU. .

The company recognizes that there areas managed outside HGU. PT. TGK not completes all legal documents & area boundary in accordance with the total area listed on HGU permit.

4 Community leaders Moahino

Environmental Impacts of pollution on the river.

If contamination occurs, the company is committed to make improvements. For example in Block 49-50 is no longer functioned as a land application because adjacent to the Lalangkai River, a radius of 600 – 700 m of riverbank not functionalized.

PT. TGK has done follow-up appropriate referrals & recommendations of the Environment agency, Morowali District (see 6.3.2).

5 Community Leaders Solonsa Jaya

People feel there is no transparency (e.g. grading issues), how many tones grading so that will be informed to the community.

The company has been providing information boards Ungkaya Mill Production Monitoring Monthly production data describing every day include the date, FFB received, FFB processed, Production of CPO, CPO Extraction, Production of PK, PK extraction, FFA, total shipments, stocks in the Mill and bulking and can be accessed by the public at the Office of UKF. The company has informed that the number of TBS can be accepted by the company (the corresponding TBS) through farmer groups.

On 05/07/2011 Farmers Group chairman posintuwu (Dea posintuwu) UKF office visit and can see the information board production monitoring. Based on observations and interviews with farmers in mind that the factory received FFB (FFB appropriate) informed the company into a proof of payment. While the fruit is not fit to be taken by the farmers.

Pricing is determined at the meeting Plantation agency.

The Company cannot determine the price unilaterally TBS plasma. But the pricing is done through meetings in Plantation Office with the parties concerned.

Available standard FFB price per month issued by the Plantation Office based on the results of the meeting each month by the parties. See also indicators 6.10.1

6 Village Chief Ungkaya I


ASSESSEMENT REPORT


No Public Issues


Waste in the waste into the river Lalangkai I & River Bridge 4.

Based on the Manager of UKF stated that mill effluents discharged into the river but not used for Land Applications.

The observations in Block 052 UKE Bridge around 4 showed no significant contamination and who tests are performed by the Great Hall of the river water K3 Ungkaya Napier 21-25 March 2011 showed that the river water samples tested expressed qualified class II water quality standards and values environmental parameters tested were below the threshold by 51 Kep.MenLH 1995.

7 Village Community Leaders Sampean Taba

Improvement of road transportation of crude palm oil bulking has not been addressed.

The Company has conducted a process improvement path to bulking Bahumelu since June 28, 2011 and completed on July 2, 2011.

The Company has conducted a process improvement path from the date of June 28, 2011 as evidenced by the cooperation

8 Head of Petasia

Improvements by the company, for example EIA-related documents should be reviewed at the time will do the replanting.

The company is already preparing a procedure for the preparation of EIA & study tours to prospective farmers who have been successful in KKPA South Kalimantan Province (PT Sajang Heulang).

PT. TGK has not made appropriate revisions to the EIA.

9 Community Leaders Ungkaya

Too much public mistrust of TGK primarily associated with the HGU 4,145 to 4,712 Ha.

The company recognizes that there are outside HGU land managed by the company.

PT. TGK could not complete all legal documents & area boundary in accordance with the total area listed on Certificate HGU.

10 Head of WitaPonda

Many issues related to social aspects of society, such as transparency regarding the program CD, the program expects a CD compiled based on community needs.

The management realized that indeed the program CD will be repaired in accordance with the basic need of society.

CD program to the community & the realization of basic need has not been within their local communities.

11 Head of Environmental Impact Management Agency Regional Environmental Morawali District

The results of verification activities related to environmental management will be poured on indicator 5.2; related wastewater on 4.4.3;

He said a few things, namely: RKL and RPL reports the company has delivered on


ASSESSEMENT REPORT


No Public Issues


a regular basis each semester to the related offices, but the process is often too late. Indicated the existence of liquid waste pollution from the plant due to the emergence of perceived odour surrounding community. Representative offices Bapedalda have been to the site, says the factory wastewater ponds Ungkaya inadequate to accommodate the volume of waste so that in case of rain will overflow. In Management TGK, yet there is a special division to handle the environmental aspects in preparing and planning efforts management overall environment. Agencies find it difficult if the parties wish to clarify the environmental issues to the company. Environmental management is not indicated in accordance with the Environmental Impact Analysis (EIA) which has been prepared.

12 Head of administration of the National Land Agency, Morowali District

PT. TGK has acquired HGU area of 4,145 ha in the Witaponda sub district, Morowali district. Over time there is a change to the extents. According to him, there is an area of 134 ha of which are outside HGU provided and have been planted with oil palm.

Based on the results of the verification company has HGU area of 4,145 ha and 4,712 ha statement. There is also an area of 139 ha of which are beyond the HGU has been planted with oil palm and see indicator 2.2.1


ASSESSEMENT REPORT


No Public Issues


13 Head of Occupational Health and Safety Office of Social Affairs, Manpower and Transmigration Morowali District.

Report the amount of manpower development, workplace accidents and remuneration periodically been submitted to the agency. In addition, the safety equipment provided to employees complete.

Based on the observation of the company has reported the development of the workforce, workplace accidents and regular remuneration has been submitted to the agency. In addition, the safety equipment provided to employees complete.


ASSESSEMENT REPORT


4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal sign-off of assessment findings

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

Signed on behalf of:

Head of PSQM

Lead Auditor

Minamas Plantation

Mutuagung Lestari

Mohamad Pirabaran

Deni A. Novendi


ASSESSEMENT REPORT


Annex 1. Peer Review Report

Name of Reviewer:

I. General comments on the evaluation

No Issues and Comments Clarification/explanation

II. General comments on the inspection report


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



ASSESSEMENT REPORT


Annex 2. Result of RSPO Committee - RSPO Certification

No Input and Responses


ASSESSEMENT REPORT


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

No Institution Address Phone/Email Form of Contact Date of Contact

1. Djafar Hamid SH Environmental agency

Morowali district - Letter No. 763.19/Mutu/VI/2011 27/06/2011

2. Ir. Yan Lamandesa Agriculture agency

Morowali district - Letter No.763.19/Mutu/VI/2011 27/06/2011

3. Drs. Yarbit Tulakamin Social, Manpower and transmigration agency


4 Ir. Rahmansyah Plantation and Forest agency


5 National Land Agency Morowali district - Letter No.763.19/Mutu/VI/2011 27/06/2011

6. WWF (NGO) Morowali district Letter No.763.19/Mutu/VI/2011 27/06/2011

7 Walhi (NGO) Palu - Letter No. 763.19/Mutu/VI/2011 27/06/2011

8. Head of Witaponda Lantulajaya village - Letter 27/06/2011

9. Head of Bumiraya Bahonsuai village - Letter 27/06/2011

10. Head of Petasia Kolonodale village - Letter 27/06/2011

11. Head of Bungku Barat Wosu village - Letter 27/06/2011

12. Head of Solonsa Utama Solonso Utama village - Letter 27/06/2011

13. Head of Solonsa Jaya Solonso Jaya village - Letter 27/06/2011

14. Head of Ungkaya Ungkaya village - Letter 27/06/2011

15. Head of Emea Ernea village - Letter 27/06/2011

16. Head of Moahino Moahino village - Letter 27/06/2011

17 Head of Bumi Harapan Bumi Harapan village - Letter 27/06/2011

18. Head of Sampeantaba Sampeantaba village - Letter 27/06/2011

19. Head of Laantula Jaya Laantula Jaya village - Letter 27/06/2011

20. Head of Pontari Makmur Pontari Makmur village - Letter 27/06/2011

21. Raiyala - Community Leader of Solonsa Utama

Solonso Utama village - Letter 27/06/2011

22. Abdul Rasyid – Community leader of Solonsa jaya

Solonso Jaya village - Letter 27/06/2011

23. Syamsudin Mu’min – Community leader of Ungkaya

Ungkaya village - Letter 27/06/2011

24 Hamzah B – Community leader of Emea

Ernea village - Letter 27/06/2011

25 Abd. Wahab – Community Leader Moahino

Moahino village - Letter 27/06/2011

26 Misi tato – Community Leader of Sampeantaba

Sampeantaba Village - Letter 27/06/2011

27 Soekardi – Community Leader of Lantulajaya

Laantula Jaya village - Letter 27/06/2011


ASSESSEMENT REPORT


Annex 4. Glossary

ANDAL : Environment Impact Analysis

B3 : Hazardous Material

BOD : Biological oxygen demand

BAPEDALDA : Environment Agency

CD : Community development

CPO : Crude palm oil

CFA : Comment for action

FFB : Fresh fruit bunches

HCV : High conservation value

HGU : Land business permit

IUP : Plantation business permit

JAMSOSTEK : Social Assurance

K3 : Occupational Safety and health

MSDS : Material safety data sheet

NA : Not applicable

RKL : Environmental management plan

RPL : Environmental monitoring plan

SPK : Mutual Agreement

PSD : Plantation Services department

PSQM : Plantation Sustainable Quality Management

PKB : Work Agreement

POM : Palm Oil Mill

POME : Palm oil mill effluent

P2K3 : Occupational safety and health committee

P3K : First aid kit

UKE : Ungkaya estate

UKF : Ungkaya factory

[ ]Stage 1 Stage2 [ ]Surveillance Assessment Report · Stage 1 [ √] Stage2 [ ] Surveillance...

Documents

Transcript of [ ]Stage 1 Stage2 [ ]Surveillance Assessment Report · Stage 1 [ √] Stage2 [ ] Surveillance...