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Roundtable on Sustainable Palm Oil Annual Surveillance Audit Report

Report no. : ASA1_14001

RSPO Principles & Criteria for Sustainable Palm Oil Production Independent Smallholders - Indonesia National Interpretation (INA-NI), July 2010

Gabungan Kelompok Tani (Gapoktan) Tanjung Sehati Mekar Jaya Village, Tabir Selatan Sub District, Merangin District, Jambi Province

Date of assessment: 26-28 December 2014

Report prepared by: Hendra Fachrurozy

(RSPO Lead Auditor)

Certification decision by: M. Bascharul Asana

(Director of PT TUV Rheinland Indonesia)

Certification Body: PT TUV Rheinland Indonesia

Menara Karva, 10th Floor, Jl. H.R Rasuna Said Blok X-5 Kav.1-2

Jakarta 12950, Indonesia Tel : +62 21 579 44 579 Fax : +62 21 579 44 575

www.tuv.com

TABLE OF CONTENTS

1.0 SCOPE OF CERTIFICATION ASSESSMENT ............ ....................................................... 3

1.1 National Interpretation Used .................................................................................................................. 3 1.2 Type of Assessment ............................................................................................................................... 3 1.3 Location and Maps ................................................................................................................................. 3 1.4 Dates of Plantings and Replanting Cycles ............................................................................................. 4 1.5 Area of Plantation (Total, Planted and Mature) ..................................................................................... 5 1.8 Detail information about RSPO certification ......................................................................................... 6 1.9 Organisational Information / Contact Person ......................................................................................... 7 1.10 Approximate Tonnages Certified ......................................................................................................... 7 The approximate tonnages certified, based on projection of FFB production in year 2015 from members owned estate only, are as follows : .............................................................................................. 7 1.11 Recommendation for Certification ....................................................................................................... 7 1.12 Date of Certificate Issued and Scope of Certificate ............................................................................. 8

2.0 ASSESSMENT PROCESS ................................................................................................. 9

2.1 Certification Body ................................................................................................................................... 9 2.2 Qualifications of Lead Assessor and Assessment Team ...................................................................... 9 2.3 Assessment Methodology .................................................................................................................... 10 2.4 Date of Next Surveillance Visit ............................................................................................................. 10

3.0 ASSESSMENT FINDINGS ................................................................................................ 11

3.1 Summary of Findings ........................................................................................................................... 11 3.2 Status of Previously Identified Non-conformities ................................................................................. 29 3.3 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions......................... 32 3.3 Issues Raised by Stakeholders and Findings Pertaining to Issues..................................................... 36 3.4 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client .................................... 36

APPENDICES ......................................................................................................................... 37

Appendix 1 : Details of certificate ............................................................................................................... 37 Appendix 2 : Audit plan .............................................................................................................................. 39 Appendix 3 : List of member each group ................................................................................................... 43 Appendix 4 : List of Abbreviations .............................................................................................................. 49 Appendix 5 : List of Stakeholders Interviewed and Contacted .................................................................. 49 Appendix 6 : Positive Observations & Observations/Opportunities for Improvement ............................... 49

RSPO Annual Surveillance Audit Report

Gapoktan Tanjung Sehati Mekar Jaya Village, Tabir Selatan Sub District, Merangin District, Jambi Province

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QMF: RSPO-007a-11(Rev.0)

1.0 SCOPE OF CERTIFICATION ASSESSMENT 1.1 National Interpretation Used

The operations of the palm oil plantation were assessed against RSPO Principles & Criteria National Interpretation for Sustainable Palm Oil Production, Independent Smallholders, Republic of Indonesia July 2010 of the RSPO Principles & Criteria.

1.2 Type of Assessment

The surveillance assessment was carried out on independent smallholder group (Gapoktan) Tanjung Sehati in Mekar Jaya Village, Tabir Selatan Sub District, Merangin District, Jambi Province.

1.3 Location and Maps

Table 1: GPS locations for all estates included in certification assessment

Figure 1 : Location of Independent Smallholder Group (Gapoktan) Tanjung Sehati Plantation in Jambi, Indonesia

Name of group Location GPS locations

Latitude Longitude

Sido Mulyo Mekar Jaya Village, Tabir Selatan Sub District, Merangin District, Jambi Province

1°51’ 00” N - 1°51’ 48” N

102°27’ 30” E - 102°28’ 18” E

Sido Makmur Mekar Jaya Village, Tabir Selatan Sub District, Merangin District, Jambi Province

1°51’ 40” N - 1°52’ 10” N

102°27’ 56” E - 102°28’36” E

Mandiri Jaya Mekar Jaya Village, Tabir Selatan Sub District, Merangin District, Jambi Province

1°51’ 23” N - 1°52’ 5” N

102°27’ 36” E - 102°28’ 27” E

Sido Maju Mekar Jaya Village, Tabir Selatan Sub District, Merangin District, Jambi Province

1°51’ 50” N - 1°52’ 10” N

102°27’ 19” E - 102°27’ 2” E

Sumber Hasil Mekar Jaya Village, Tabir Selatan Sub District, Merangin District, Jambi Province

1°51’27” N - 1°52’ 40” N

102°27’ 00” E - 102°28’15” E

Kemang Jaya Mekar Jaya Village, Tabir Selatan Sub District, Merangin District, Jambi Province

1°51’ 46” N - 1°52’ 18” N

102°26’ 50” E - 102°27’ 30” E



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Figure 2 : Map of Independent Smallholder Group Estate in Jambi, Indonesia

Table 2: Certified tonnages claimed, certified tonnages sold, total and projected FFB production from Independent Smallholder Group (Gapoktan) Tanjung Sehati

Note : *) period of January to December 2013

**) Period of January to November 2014

***) Period of January to December 2015

****) OER: 20%, PKO ER: 45% and certified tonnages sold by Green Palm platform.

1.4 Dates of Plantings and Replanting Cycles Independent Smallholders Group follows a replanting cycle of 25 years. Information on the dates of plantings is as per the table below.

Description Amount (MT)

FFB CPO**** PKO****

Certified tonnages claimed 4,500.00 900.00 91.00

Certified tonnages sold** 0.00 402.00 50.00

Actual Production* 4,933.21 - -

Actual Production** 4,449.39 - -

Projected output for next 12 months*** 4,500.00 900.00 91.00



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Table 3: Age and year of plantings of independent smallholder estate

Age & Year of Plantings

Oil palm planted area at each estate (ha)

Total (Ha) Sido Mulyo

Sido Makmur

Mandiri Jaya

Sido Maju

Sumber Hasil

Kemang Jaya

17 (1997) 1.00 0.00 0.00 0.00 1.50 0.00 2.50

16 (1998) 0.00 0.00 0.00 0.00 2.25 0.00 2.25

15 (1999) 0.00 0.00 0.00 1.00 2.00 1.30 4.30

14 (2000) 13.67 0.00 0.00 3.90 0.00 6.65 24.22

13 (2001) 10.00 7.04 7.69 3.51 1.30 9.23 38.77

12 (2002) 3.10 2.73 13.02 4.81 0.00 2.30 25.96

11 (2003) 0.00 3.24 1.91 22.10 0.00 4.00 31.25

10 (2004) 17.76 9.22 14.18 17.57 3.30 3.05 65.08

9 (2005) 3.49 7.73 8.92 3.97 15.90 1.50 41.51

8 (2006) 25.64 11.14 12.67 7.15 7.50 0.25 64.35

7 (2007) 10.01 1.46 1.60 3.68 4.80 2.00 23.55

6 (2008) 7.26 0.63 1.38 0.00 0.00 0.00 9.27

5 (2009) 3.57 0.00 0.00 0.91 0.00 1.30 5.78

4 (2010) 2.83 0.95 0.00 0.00 2.00 0.00 5.78

3 (2011) 0.00 0.00 2.00 0.00 0.00 0.00 2.00

2 (2012) 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1 (2013) 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0 (2014) 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL 98.33 44.14 63.37 68.60 40.55 31.58 346.57

Based on information above that independent smallholder group replanting program begin in year 2023 for year 1997 planted area in Sido Mulyo group and Sumber Hasil group.

1.5 Area of Plantation (Total, Planted and Mature)

Table 4: Oil Palm Planted Area Summary, FFB Production and Average yield/ha for Independent Smallholder Group (Gapoktan) Tanjung Sehati

Estate Name

Total area (Ha)

Oil Palm Planted area (ha)

Mature (Production)

area (ha)

Immature (Non-

production) Area (ha)

FFB Producti

on* (tonnes)

FFB Producti

on** (tones)

Average yield

(ton/ha)*

Sido Mulyo 98.33 98.33 98.33 0.00 1,195.89 1,061.16 11.89

Sido Makmur 44.14 44.14 44.14 0.00 693.29 599.44 15.71

Mandiri Jaya 63.37 63.37 63.37 0.00 817.16 709.65 12.89

Sido Maju 68.60 68.60 68.60 0.00 1,036.75 1,064.50 15.11

Sumber Hasil 40.55 40.55 40.55 0.00 585.32 516.48 14.43

Kemang Jaya 31.58 31.58 31.58 0.00 604.80 498.16 19.15

TOTAL 346.57 346.57 346.57 0.00 4,933.21 4,449.39 14.86

Note: *) FFB production year 2013

**) FFB production year 2014 (January – November 2014)



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Table 5: Land use data for Independent Smallholder Group (Gapoktan) Tanjung Sehati

Estate Name Total area (ha)

Rubber

Planted Area (ha)

Oil Palm

Planted Area (ha)

HCV/

Potential HCV

areas* (ha)

Land used for other purposes (ha)

Local

Government office

Nursery Cleared

Area Land

conflict

Sido Mulyo 98.33 0.00 98.33 0.00 0.00 0.00 0.00 0.00

Sido Makmur 44.14 0.00 44.14 0.00 0.00 0.00 0.00 0.00

Mandiri Jaya 63.37 0.00 63.37 0.00 0.00 0.00 0.00 0.00

Sido Maju 68.60 0.00 68.60 0.00 0.00 0.00 0.00 0.00

Sumber Hasil 40.55 0.00 40.55 0.00 0.00 0.00 0.00 0.00

Kemang Jaya 31.58 0.00 31.58 0.00 0.00 0.00 0.00 0.00

TOTAL 346.57 0.00 346.57 0.00 0.00 0.00 0.00 0.00

1.8 Detail information about RSPO certification

Detail information about RSPO certification in Independent Smallholder Group (Gapoktan) Tanjung Sehati as follows:

Table 6: Profile of group members which involve the scope of certification

Estate Name

Included on certification scope

Not included on certification scope Grand Total

Note

Areas (Ha)

Members (person)

Areas (Ha)

Members (person)

Areas (Ha)

Members (person)

Sido

Mulyo 98.33 58 12.23 5 110.56 63

The members was not

included on certification

scope are member ID: 28 &

52 are 6.30 ha, member ID:

22 are 4.05 ha, member ID:

42 is 0.88 ha, member ID: 47

is 1 ha because rubber

plantation and they are not

interest with certification

Sido

Makmur 44.14 32 1.05 1 45.19 33

The members was not


RSPO membership no. And date: 1-0140-13-000-00 date of July 8, 2013 on behalf Gapoktan Tanjung Sehati

RSPO certificate no. : 824 502 14001

Date of first RSPO certificate & validity: June 16, 2014 & valid until June 15, 2019

Date of certification audit: 19-21 November 2013

Date of previous surveillance audit: -

Date of revised RSPO certificate & validity (if applicable):

-

FFB tonnages claimed: 4,500 Tonnes



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Estate Name

Included on certification scope

Not included on certification scope Grand Total

Note

Areas (Ha)

Members (person)

Areas (Ha)

Members (person)

Areas (Ha)

Members (person)

scope are member ID: 16 is

1.05 ha because rubber

plantations

Mandiri

Jaya 63.37 33 3.5 2 66.87 35

The members was not


scope are member ID: 29 is

1.5 ha and member ID: 31 are

2 ha because rubber

plantations

Sido Maju 68.60 38 0.0 0 68.60 38 -

Sumber

Hasil 40.55 25 6.0 5 46.55 30

The members was not


scope are member ID: 18 is 1

ha, member ID: 24 is 1 ha,

member ID: 25 are 2 ha,

member ID: 26 is 1 ha,

member ID: 28 is 1 ha

because rubber plantations

Kemang

Jaya 31.58 28 2.0 0 33.58 28

The members was not


scope are a part of areas from

member ID: 1 & 7 @ 1 ha

because rubber plantations

TOTAL 346.57 214 24.78 13 371.35 227

List of member each group has descripted in Appendix 3.

1.9 Organizational Information / Contact Person

Contacts details of the company are as follows:

1.10 Approximate Tonnages Certified

The approximate tonnages certified, based on projection of FFB production in year 2015 from members owned estate only, are as follows :

Fresh Fruit Bunch (FFB): 4,500 tones or equivalent with Crude Palm Oil (CPO): 900 tones (OER: 20%) and Palm Kernel Oil (PKO): 91 tones (PKO ER: 45%)

1.11 Recommendation for Certification Independent Smallholder Group (Gapoktan) Tanjung Sehati has established and maintains an effective system to ensure compliance with the RSPO Principles & Criteria for Sustainable Palm Oil Production Independent

Company/Organization Name: Independent Smallholder Group (Gapoktan) Tanjung Sehati

Address: Mekar Jaya Village, Tabir Selatan Sub District, Merangin District, Jambi Province

Contact Person: Mr Jalal Sayuti (Head of Independent Smallholder Group (Gapoktan)

Telephone: +62 0878 5823 5759 (Gapoktan)

Email: -



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Smallholders - Indonesia National Interpretation (INA-NI), July 2010. The audit team has confirmed through the audit process that the company’s practices complies with, adequately maintains and implements the requirements of RSPO Principles & Criteria for Sustainable Palm Oil Production Independent Smallholders - Indonesia National Interpretation (INA-NI), July 2010.

PT TUV Rheinland Indonesia recommends that Independent Smallholder Group (Gapoktan) Tanjung Sehati to continue being a producer of RSPO Certified Sustainable FFB.

1.12 Date of Certificate Issued and Scope of Certif icate

The scope of the certificate covers production of FFB from Independent Smallholder Group (Gapoktan) Tanjung Sehati estates, which includes group of farmer of Sido Mulyo, Sumber Makmur, Mandiri Jaya, Sido Maju, Sumber Hasil and Kemang Jaya.

The certificate was issued dated on June 16, 2014 as informed on Appendix 1 .



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2.0 ASSESSMENT PROCESS 2.1 Certification Body

PT TUV Rheinland Indonesia is member of Group TÜV Rheinland Group, a global leader in independent testing and assessment services. The TÜV Rheinland Group was established in 1872 with offices located in over 490 locations in 62 countries on all five continents. PT TUV Rheinland Indonesia offers certification for a wide range of management systems according to established international standards including ISO 9001, ISO 14001, OHSAS 18001, SA 8000, RSPO (RSPO-ACC-013 dated on June 06, 2014), ISPO (LS-P&K-005-ISPO dated on May 10, 2012), SFM (mandatory and voluntory). PT TUV Rheinland Indonesia’s office is located in Jakarta, Indonesia.

2.2 Qualifications of Lead Assessor and Assessment Team

The assessment team members of this surveillance audit that were part of the same assessment team for the certification audit are as follows: 1) Hendra Fachrurozy New assessment team members that were not part of the previous assessment team are as per the table below:

Name Position Qualifications / Experience

Taufik Rahman

Auditor

Education: Master Degree in Sociology, Faculty of Social and Political Sciences, University of Indonesia (UI), (2004). Trainings attended : Stakeholder Engagement and Communication, CSR Asia – Kuala Lumpur (2011), Certified Sustainability Reporting Specialist (CSRS), National Center for Sustainability Reporting (NCSR) (2012), awarness of RSPO (2014). Working experience : Researcher of social in A+ CSR Indonesia, Expose Indonesia Strategic Media Branding (Mizan Group) and Social Investment Indonesia (SII).

Wahyu Auditor

Education: Master degree in Mechanical Engineering – University of Pancasila; Bachelor degree of Mechanical Engineering – University of Indonesia. Training attended: Lead auditor course IRCA Approved - QMS 9001:2008; Lead auditor course IRCA Approved – EMS ISO 14001:2004, Auditor course CoC LEI, Auditor course ISPO; Lead Auditor course System Verifikasi Legalitas Kayu (SVLK), Auditor course ISO 28000 - Security Management System for Supply Chain; Training of Trainer Maritime Security Management; Auditor course – OHS Management System OHSAS 18001 and SMK3; Inspector course - Pressure Safety Valve by Ditjen MIGAS; Auditor course -Food Safety Management System ISO 22000; ISO 17021; Course ISO 17020; Internal Refreshment Course RSPO; In House Training RSPO-ISPO Certification System and Update of RSPO P&C 2013.

Working experience: Auditor at TUV Rheinland – till present; Auditor and Technical Manager at PT Mutu Hijau Indonesia (Certification body of ISPO, ISO 9001, ISO 14001, and LVLK); Freelance consultant of management system (QMS, EMS, OHS 18001, CSMS & etc.); Head of QHSE Management System at PT Carsurin (Inspection Body & Surveyor); Marketing Manager at PT Internex Indonesia (PCB Design); Head of R&D at PT Dawee Electronic Indonesia; Production Engineer at PT Video Display Glass Indonesia; Production Engineer at PT Sumiko LeadFrame Bintan; and Technician at PT Siemens Components.



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2.3 Assessment Methodology

The certification assessment was conducted between 26 to 28 December 2014 as per the assessment program below. The assessment was carried out in accordance with PT TUV Rheinland Indonesia’s RSPO audit procedure as well as the RSPO Certification Systems document. During assessment, the qualified TUV Rheinland assessors used the RSPO standard as endorsed for the country in which the assessment took place and recorded their findings.

Due to the location and proximity of the estates, combined with common management systems, it was possible to carry out both field and document assessments of all estates within the time frame without compromising the integrity of the assessment in anyway.

All 6 (six) estates were visited and the assessment team carried out field and document assessments of compliance to all the RSPO principles and criteria. Common systems were identified and specific evidence was recorded for individual estates. Interviews were conducted at all estates.

The auditee proposed the correction and corrective action for all identified non-conformities raised to the certification body 30 days after the closing meeting. Verification of closure of major non-conformances was conducted 2 months after the closing meeting of the assessment and implementation of corrective actions for minor non-conformities will be verified during the next surveillance audit. The certification assessment agenda is as explained below.

Surveillance Assessment Agenda.

2.4 Date of Next Surveillance Visit The next surveillance visit is planned for November 23, 2015.

Date Location/ Main sites Main activities 26.12.2014 Gapoktan secretary office Opening meeting

Verification of previous findings Document checking

27.12.2014 Estate in farmer group Verification in field: • Best practices • Social & employees • Protect of water sources • Waste • Pollution & emission • Compliance of regulation • ICS • Etc. Location: • Oil palm estate of group members from Sido Maju, Mandiri

Jaya and Kemang Jaya group • Umar sutrisno & Wawan estate, Angga Mulyadi, Mulyono &

Damis estate, Fadholi & Ta’at Pujianto estate, Hartino, Burlian Kamal & Suher estate.

28.12.2014 Gapoktan secretary office Closing meeting



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3.0 ASSESSMENT FINDINGS 3.1 Summary of Findings

During the certification assessment, there are 8 (eight) nonconformities , consist of 4 (four) nonconformities were assigned against Major Compliance indicators; and 4 (four) nonconformities were assigned against Minor Compliance Indicators. There are 7 (seven) observations or opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in Section 3.2. The observations & opportunities for improvement are listed in Appendix 6 .

The following is a summary of findings made for the criteria listed in the RSPO Principles & Criteria for Group Certificati on, July 2010 and for Independent Smallholder, July 2010. A. Findings against requirements for Group Certific ation:

1. Group requirements. Producers can form or join a group for group certification. The organization and its members

shall demonstrate their ability to meet the RSPO standard for group certification and the relevant RSPO standard for

sustainable oil palm production Element assessed: 1.1.1 to 1.1.4; 1.2.1 to 1.2.6; 1.3.1; 1.3.3 to 1.3.12 Element not assessed: 1.3.2

Findings:

Gapoktan Tanjung Sehati has a Group Manager to manage organisation, namely Jalal Suyuti who was assigned through consensus on the meeting on October 18, 2009. This is stated on notarial act document Aswanto, SH, M.Kn, no. 80 dated May 8, 2013. Some of responsibility of Group Manager are : • To manages the Group Management Documentation • To ensure that all group members are comply to applicable standards (i.e. RSPO standard)

There is sufficient evidence that the sixth of farmer groups to join in the Gapoktan dated 19 September 2013, to support the initiative on sustainable palm oil and RSPO certification that initiated by Gapoktan, and established documentation improvements especially in best practice cultivation, including environmental and community as required by RSPO P & C. Gapoktan Tanjung Sehati has 6 (six) groups of farmers from 214 (two hundred and fourteen) farmers members, the sixth of farmer group are:

1. Kemang Jaya, 28 members, 2. Sido Makmur, 32 members, 3. Sido Maju, 38 members, 4. Mandiri Jaya, 33 members, 5. Sumber Hasil, 25 members, 6. Sido Mulyo, 58 members.

The group management has established and maintained documentations including the documenting and monitoring of all individual group members for membership status. During the surveillance audit, auditor was review some documents including records, and there is sufficient evidence that the Group Management monitoring and maintain documents of all individual group members for membership status appropriately. The among others document are: 1. Statement letter of farmer groups from each group member. These documents are as formally

statement that the Farmer Group (Kelompok Tani) is willing to joint, support and actively engage in activities of Gapoktan Tanjung Sehati. These documents have signed by chairman, secretary and treasurer of each Farmer Group (Kelompok Tani) respectively.

2. List of group members for each farmer groups. The document signed by chairman of Farmer Group (Kelompok Tani). These documents contain information of farmer’s name, land area, addresses, and etc.

3. Register of the list of group members (Surat Tanda Daftar Anggota Kelompok Tani) each group members. Group member respectively as formal statement of group membership signs these documents.

4. Certificate of land (Surat Keterangan Tanah) from Head of village 5. Map of land each group members.

Since established, there is no revision or change on group membership until present (1st surveillance audit).



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There is sufficient evidence that the Group Manager maintain documentation and reports related to production process and other relevant aspects to ensure compliance with the relevant RSPO Standard for Sustainable Oil Palm Production and the RSPO Group Certification Requirements. The documentation were reviewed are (for December 2013 – November 2014 periods):

- Harvesting record each group members (member’s name, land area, land crop, number of tree, rotation of harvest, and FFB harvested).

- Total of Volume/Tonnage - Detail of Volume/Tonnage - List of fertilizer used - Records of pesticide used (brand, amount and month)

The Group Manager has issued Decree No. 08/SK-GKT-TS/VIII/2013, dated October 2013, concerning maximum number of members that can be supported by the management system and the human resource and technical capacities of the Group Manager, which are 500 members.

Gapoktan Tanjung Sehati (called “the organization” for further) has established a mechanism / procedure of internal assessment to ensure that all group member has comply with the required relevant RSPO Standard for Sustainable Oil Palm Production.

There is sufficient evidence that the group manager has conducted internal assessment against relevant RSPO standards and/or requirements. Related records were reviewed, such as Checklist (refer to P&C of RSPO), auditor assignment, summary of internal assessment results, and etc.

There is sufficient evidence that the group manager of the organization has implement a programme to support 2 (two) prospective members in achieving compliance with RSPO requirements. They are Sumber Bahagia and Sido Muncul Farmer Groups. However, they do not meet RSPO requirements until this surveillance audit. Thus, there has not been changed in-group membership since the group formally established. The group manager of the organization able to demonstrate separation between certified FFB and non-certified FFB production. Moreover, organization has implemented program or working plan year 2014 i.e. maintenance of estate together, credit, recruit of administration staff.

Formal members of the Group have signing an agreement with the Group Manager to achieving compliance with the relevant RSPO standard for sustainable oil palm production. Copies of its agreement documents are available and maintain at the Group Manager and each members respectively. The documents are: 1. Statement letter of farmer groups from each group member. These documents are as formally

statement that the Farmer Group (Kelompok Tani) is willing to joint, support and actively engage in activities of Gapoktan Tanjung Sehati. These documents signed by chairman, secretary and treasurer of each Farmer Group (Kelompok Tani) respectively.

2. List of group members for each farmer groups. These documents signed by each independent farmer respectively as formal statement of group membership.

There is sufficient evidence that all individual group members have adhere to and show demonstrate that the internal group requirements, as set out in the systems, programmes or policies adopted by the Group Manager are met. The documents including records that showed evidence are:

1. There is a signature on the consent of members to be involved in promoting sustainable palm oil; 2. Information on land area and the amount of the principal at each farmers; 3. There are records regarding to fertilizer application and dosage of each member of Farmer Group during

2013-2014; 4. There are notes about types of pesticides used in 2013-2014 by each member including the name of the

pesticide; 5. There is information about the source of seed being planted; 6. Copy of land certificate, except certificate that was for a guarantee in the Bank; 7. There is data on the profile of each member of the group farmer which provides:

name, date of birth, address, cell phone number, education, family status, number of children, extensive gardens, planting year, the principal amount, the origin of seeds, land titles, land boundaries.

8. The FFB production data including separation between certified FFB and non-certified FFB

This surveillance audit was carried out to ensure that the Group manager continuing comply with RSPO Standard for Group Certification. The result of this surveillance audit is described in the special section of this report.



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There is sufficient evidence that formal group members, individually and collectively, continually strive to maintain their compliance with the relevant RSPO Standard for Sustainable Oil Palm Production. In this surveillance audit, some documents including records have been reviewed and verified, they are:

- Working Plan or Programme year 2014 - Minute of meeting, - Attendance list for annual member meeting year 2014 (July 01, 2014) - Training programme/plan year 2014 - Annual report from Gapoktan Tanjung Sehati organization year 2014.

Based on notarial deed Aswanto SH, M.Kn regarding was appointed Group manager is Mr. Jalal Suyuti who is Chairman of the Gapoktan Tanjung Sehati, secretary Mr. Muhammad Solikin, and treasurer Mr. Junaidi.

The organizational structure of the Gapoktan, general description of role, responsibility and authority of the above mentioned position and responsibilities of each personnel are available and maintain appropriately.

Mr. Jalal Sayuti as group manager is derived from their own community, so he can smoothly communicate with all members. The daily verbal communication among them used Javanese language. On the other hand that Indonesia language (Indonesian) used for entire documentation formally and annual meeting in organization.

Based on interview with the Group Manager and other personnel of Gapoktan Tanjung Sehati, they can demonstrate and implement their knowledge of the requirements of oil palm production, the RSPO Standard for Sustainable Oil Palm Production, the RSPO Standard for Group Certification, and internal group procedures and policies.

There is sufficient evidence that the Group Manager has socialized the RSPO Standard for Sustainable Oil Palm Production, the RSPO Standard for Group Certification, and internal group procedures and policies to all group members by :

- Internal training, - Issue and share Pocket Book of P&C RSPO & Good Agriculture Practice, - Routine meeting, - Provide information board and - Any others informal communication

The Group Manager (Mr. Jalal Sayuti) has no any conflict of interest, either of financial and/or business interest. Mr. Jalal Sayuti has demonstrated his capacity and independency as Group Manager to meet the requirements (RSPO).

The Group Manager has demonstrated sufficient resources i.e. human, financial, physical and other relevant resources to enable effective and impartial technical and administrative management of Group Certification.

In order to perform routine activities including administration task, Group manager assisted by a sufficient number of personnel. The organizational structure Group has established to ensure that all activities related to Gapoktan will performe appropriately.

The organizational structure consists of an adviser, administrators, and members. Adviser consists of Bungo Tanjung Village Chief and Companion / village extension workers. Board consists of a chairman, secretary and treasurer. There is a monitoring and management program to ensure the compliances of RSPO P & C in all members, the implementation of the program has monitored by an assigned personnel.

Group Manager has hired a person to manage the Group Secretariat with the responsibilities as below : - Perform data collection of FFB of members - Archiving the Gapoktan data at secretariat - Communicate and coordinate with Group Manager of Gapoktan and farmer groups associated

administration of Gapoktan.

For financial purpose, the Gapoktan has internal mechanism to funding their activities. Besides internal sources, a part from the members of farmer groups, Gapoktan also received financial and management support from Setara Jambi Foundation and Networks. Whereas physical resources are roads that it can be used for a visit to the estates because location of all estates within the village itself. Gapoktan official



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existence that is always ready to help lead group manager full support to carry out their duties.

There is sufficient evidence that the Group Manager has been continuing demonstrate the capacity to control, monitoring and evaluation all members. To carry out the task, Group Manager has establish and implement some programme to ensure that all members continue to meet RSPO requirements, such as : internal assessment, socialized programme, and collecting regular reports from all members. Some evidence of implementation of the programme, as follows :

• Working Programme year 2014 • Internal assessment has performed in December 2013 – November 2014 that the number who has

visited is 72 (seventy two) members. • Annual member meeting (RAT) has conducted on July 01, 2014 • Monthly Chemical Fertilizer Application Data on December 2013 – November 2014. • FFB Production Data (certified and non-certified): January – November 2014 • Road maintenance schedule • Harvesting rotation

The Group Manager has documented system which sets out its mission and objective, policy and procedures for operational management and decision making in order to manage the group in a systematic and effective manner. The documentation is articles of association and bylaw (namelly : “Anggaran Dasar (AD)” dan “Anggaran Rumah Tangga (ART)”) of Gapoktan Tanjung Sehati which is ratified on November 20, 2011.

The policies and procedures for communication within the organization, including Group Manager and the group members has included in the documentation is articles of association and bylaw.

There is sufficient evidence that all formal and prospective members has understand the relevant RSPO Standards. The group manager also has develop of a strategic plan on how group certification can be achieved for prospective members, and/or provision of training needs and/or communication strategies relevant to the implementation of the applicable RSPO Standard for Sustainable Oil Palm Production and the RSPO Standard for Group Certification. Provision of training and communication provided by group manager directly and an externally run training course or provided by expertise. However, there is not prospectif member during December 2013 until this surveillance audit.

The group manager has established a procedure in order to manage FFB sales via the Gapoktan to ensure that the sales processes are transparent and mutually beneficial between Gapoktan and members of farmer groups.

The procedure also has purpose to control of FFB sales data and to prevent mixing between Certified - FFB and Non-

certified FFB production. The procedure has effective by September 2013, and there is not revision until this

surveillance. Compliance status: Full Compliance 2. Group management documentation requirements.

The Group Manager assesses compliance of the plantation practices and manages group members to ensure

compliance with the RSPO Standard for Group Certification and the relevant RSPO Standard for Sustainable Oil Palm

Production. The Group Manager shall have a documented internal system that contains the elements necessary for

assessing the performance of group members and their plantations

Element assessed: 2.1.1 to 2.1.5; 2.2.2; 2.2.3; Element not assessed: 2.2.1

Findings:

There is no revision or change in the group management documentation, decision-making and responsibilities within organization since the previous certification audit. Operational structure is contained in the articles of association and by laws Gapoktan that was ratified on 20 November 2011. In the constitution and by laws stated that each member entitled to vote and be elected into the board and has the right to participate in organized activities such as training and education, receive financial aid or loans,



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issued an opinion in a meeting of members.

The highest authority in Gapoktan owned by the congress, which will be held the first time in 5 years as the highest decision-making. Congress implemented aims to select chairman and board of Gapoktan and also formulate the documentation is articles of association and bylaw (AD/ART) and organizations strategic plan for the next 5 years.

Congress would implemented if the presence of members of at least two-thirds the number of members. Special congress will be held in the event of specific events such as the 50% Gapoktan cannot work or do not work in accordance with its mandate. In addition to congress annual meeting of members are also authorized to establish annual plans of Gapoktan. Members of the board, the group heads, supervisors and all members will attend the annual meeting.

All records related to Gapoktan, farmer groups and members would be kept in the 5-year period. There Gapoktan chairman decree no. 07/SK-GKT-TS/VIII/2013 about the shelf life of the document, which states that the shelf life of related documents RSPO certification, is valid for 5 years.

There is sufficient evidence that the group manager retains and maintains related records appropriately. The records were review, such as:

- Annual report of Gapoktan administrator year of 2014 - Minutes of meeting - Letter of meeting invitation, May 28, 2014 - Internal assessment checklist: December 2013 – November 2014 - Monthly FFB production data: January – November 2014 - Monthly Fertilizer consumption data - Etc.

The documented membership requirements for the participation of individual members in the group available on document of bylaw (Anggaran Rumah Tangga (ART)), effective date by October 20, 2013. Associated with membership requirements as described in the document of bylaw (ART), as follow: 1) Farmer groups are accepted as a member if it meets the following conditions:

a. Farmer groups from the Tanjung Bunga village - Tabir Selatan sub district. b. Aims to improve the welfare of farmers and their families. c. Approve/agree with the documentation is articles of association and bylaw (AD/ART), public programs

and regulations. d. Submit an application to become a member

2) A person can become a member if it meets the following conditions: a. Bungo Tanjung village – Tabir Selatan sub district b. It has been 17 years old or married c. Pancasila moral d. Approve/agree with the documentation is articles of association and bylaw e. Submit an application to the board f. Pay tuition

While at the Article 2 on bylaws (ART) has stated: 1. Members of the group are a legitimate member after receiving notification of a request title. 2. Refinance compulsory savings.

The article 5 on bylaws (ART- Anggaran Rumah Tangga) contains provisions regarding the procedure to remove a member of the group and remedial procedures for expulsion. Contained in Article 5 on bylaw (ART): Any member or officer who willfully neglects or violates the AD / ART and regulations are subject to disciplinary action in the form of: a. Verbal warning, a written warning to the violator policy, b. Suspension for rules and decisions violators. c. Dismissed for violators AD / ART.



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The group manager of Gapoktan has established operation manual that includes the following: - Internal assessment protocols, - Policies and procedures for accepting / removing members, - Policies and procedures for applying corrective action requests (CARs) to group members for non-

compliance with the relevant RSPO standards, - Procedures for communicating corrective action requests (CARs), - Clear description of the process to fulfill any correction action requests (CARs) issued internally by the

Group Manager or by the certification body including timelines and the implications if any of the CARs are not complied with.

- Policies and procedures for handling complaints, appeals, corrective action requests (CARs), and group member performance assessment.

- Policies and procedures for group monitoring, including carrying out and updating group risk assessment and annual surveillance of group members.

There is no revisions or changes of the above mechanism.

The suspension fixed by agreement Gapoktan board deliberation and strengthened by the board of farmer groups and valid 1 year, if there are signs of improvement then it may be noted again become a member.

The board decides expulsion of members from the group and Gapoktan of farmer groups and administrators attends discussion of results. The expulsion is valid for periods of 5 years after that the expelled member may be processed again become a member.

Associated with the internal assessment protocol implementation procedures of internal audit are each farmer group, September 2013: 1. Proposed internal audit and scheduling 2. Assessment of members plantation 3. Reporting the results of the assessment will be delivered after 7 days post-assessment to Gapoktan

official 4. If there are no issues or findings, will be published and stored by the board 5. If there are findings, the board will hold discussions with relevant members and jointly plan

improvements.

Correction will hold within one month for major and minor findings and will be start 1 day after closing meeting.

There is also the procedure how to join the farmer group, effective since September 2013: 1. Farmers report to the board of farmer groups; 2. Farmers fill out a form provided by the board members of farmer groups; 3. Comply with the rules in the farmer groups.

There are procedures for implementing corrective action against the farmer groups, namely: plan of corrective action procedures of external and internal audits, September 2013, and consists of: 1. Discussion of the board of Gapoktan, 2. Assessment to the field 3. Reporting results of the assessment will be carried out after 7 (seven) days assessment is completed. 4. If there are findings will be published and stored by Gapoktan. 5. If there are findings, then Gapoktan will discussed with associated members, and jointly carry out

improvement plans. 6. Repairs carried out for 1 month for the major and minor findings.

During this surveillance audit, the auditors were reviewed correction and corrective action taken to follow up NCR findings of previous surveillance audit. There is sufficient evidence that the Group Manager has taken correction and corrective action effectively.

Regarding to communicating Corrective Action Requests (CARs), there is procedure to implement corrective action and correction i.e. procedure of external and internal audit correction plan, valid since



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September 2013, consist of: 1. Discus with Gapoktan officer, 2. Field assessment 3. Report will do 7 days after closing meeting. 4. Any finding will be announced and Gapoktan will keep record. 5. Findings, if any will be discussed with Gapoktan and related member, and correction and corrective

action will be held. 6. Improvement will be held in 1 month for major and minor findings. 7. There is also form of continuous improvement consist of objective and schedule of implementation.

To be able to manage and respond to complaint, appeals, corrective action requests (CARs), and group member performance assessment, there is a complaint form sheets that can be used by members. There is a flowchart of the complaint. Gapoktan administration officers will maintain the record until members or stakeholders receive an answer.

Based on interview with Mr. Jalal Sayuti (Group Manager), there are no complaints or appeals during December 2013 until this surveillance audit.

Policies and procedures for the monitoring group, including carrying out a risk assessment and updating group and annual surveillance of the group members. In bylaw (ART), it is stipulated in article 13, section 4 of deliberations in the meeting.

The Group Manager has established and maintained a database of group members included within the Group Scheme. The database includes the information below for each member: 1. Copy of each group member’s application form to the group with relevant information for each member

that is updated regularly, i.e. name of producer, address, contact details, type of land ownership, size of plantation area, location. Additional information is also contained in this document is the origin of seeds, land titles, land boundaries and map of plantation area (both of individual map and collective map that covering all group members),

2. The date of group membership acceptance, 3. Records of each member which contains information on the total annual production and production per

unit area (hectare) for previous years, from at least one year prior to joining the group, and the estimated production for the current year. There are records of production Gapoktan members in each group, which contains information about the production in the past one-year.

4. Records of last internal and external assessments that showing performance levels to the relevant RSPO Standard for Sustainable Palm Oil Production, Including dates, these were carried out, any plans for improvement and implemented a corrective action requests (CARs) raised and closed out for each group member,

5. Summary of all data on land use (in hectares) for each group members, include: - Total of overall land area, - Total of oil palm planted area, - Total of RSPO certified production area, - The other crop production area, - Total of undeveloped area for any particular reason, and - Total of areas with infrastructure

Relating to an individual's membership in Gapoktan. There is documentation that contains information about the procedure and a record date of entry into force of the membership. All individual data with a map of oil palm plantations in sufficient scale. There is also a map that illustrates the location of the entire plantation members.

Gapoktan has a data record plantation area measurement of each farmer group : 1. Kemang Jaya : the number of 28 members who participated certified land area are 31.58 ha, which is

not involved extensive certification are 2 ha (member ID : 1 & 7 where each member is 1 ha) because rubber plantation so the total areas amount of 33.58 Ha;

2. Sumber Hasil : the total of members are 30 members but it was participated certified are 25 members



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only, the area of land involved certification are 40.55 ha and which did not participate land area of certification are 6 ha (1 ha (member ID : 18), 1 ha (member ID : 24), 2 ha (member ID : 25), 1 ha (member ID : 26) and 1 ha (member ID : 28)) because rubber plantation so the total areas of land are 46.55 Ha;

3. Mandiri Jaya : the total of members are 35 members but it was participated certified are 33 members only, the land area of certification are 63.37 ha and which did not participate land area of certification are 3.5 Ha (1.5 ha (member ID : 29) and 2 ha (member ID : 31)) because rubber plantation so the total areas amount of 66.87 Ha;

4. Sido Makmur : the total of members are 33 members but it was participated certified are 32 members only and who participated extensive certification are 44.14 Ha and which did not participate land area of certification are 1.05 ha (member ID = 16) because rubber plantation so the total areas of land are 45.19 ha;

5. Sido Maju : the number of members are 38 membes who participated certified land area are 68.6 Ha and which did not participate land area of certification is none so the total areas of land are 68.6 ha;

6. Sido Mulyo : the total of members are 63 members but it was participated certified are 58 members only and who participated extensive certification are 98.33 Ha and which did not participate land area of certification are 12.23 ha (6.30 ha (member ID = 28 & 32), 4.05 ha (member ID = 22), 0.88 ha (member ID = 42 and 1 ha (member ID = 47)) because he is not interest with certification and rubber plantation so the total areas of land are 110.56 Ha.

Data on certified products (FFB production) period of June to November 2014 has available.

There is no conservation area. However, there are areas that are used for infrastructure (goat barn with 9x22 size M), 9x9 warehouse M.

There are not prospective members intending to join the group to be included under group certification since the group formally established until this surveillance audit.

Gabungan Kelompok Tani Tanjung Sehati (for further call as the organization) has established a procedure for internal assessment mechanism i.e. “Prosedur Penilaian Internal Anggota Kelompok Gapoktan Tanjung Sehati”. Group Manager of the organization, Mr. Jalal Sayuti on December 2013, has signed the procedure. The procedure has describe that:

- Assessment will be held every month - Group chairman assigns auditors who will conduct assessment. - Assessment will be applied to 6 (six) members every month. - Different group member will be visited on each next assessment

The internal assessment records periods December 2013 until November 2014, such as assignment letter of auditor, audit checklist and audit results resume documented and maintained appropriately. Audit checklist were reviewed, and found that the checklist established has complied with relevant RSPO standards.

Audit records were reviewed and found that the organization has conducted internal assessment at regular basis per month by visits to 6 (six) of group members to confirm continued compliance with all the requirements of the relevant RSPO Standard for Sustainable Oil Palm Production and RSPO Standard for Group Certification.

Since the organization has achieved RSPO Certificate by July 2014, the organization has conducted internal assessment and has visit to 72 (seventy two) members of 214 (two hundred and fourteen) total members. Base on this situation, all member of the organization will be monitor during the period of validity of the group certificate (5 years).

There is sufficient evidence that the performance of each group member against RSPO Standard for Sustainable Oil Palm Production is assessed at each internal assessment.

The mechanism of sample size for each internal assessment has no fully followed the RSPO standards, however the number of sample taken has exceed the RSPO requirements. (0.8√total group members) x z; where z is the multiplier defined by risk assessment (i.e.: 1.2 for medium risk). So, the minimum size of sample is:

(0.8√214) X 1.2 � 15 group members

The internal mechanism of assessment has stated that different group members are visited to their estate in each next internal assessment.



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There is sufficient evidence that the Group Manager has issued corrective action request (CARs) for all non-conformities identified during internal assessment. The record of CARs and the correction & corrective actions has been taken available and maintain properly.

Compliance status: Full Compliance 3. Chain of Custody. The group manager shall have a system in place to enable the trading of RSPO certified FFB

produced from the group Element assessed: 3.1 to 3.6 Element not assessed: 3.7

Findings:

The result of FFB was produced by each farmer is documented in the handbook of good gardening method. The organization has information/data about result of harvest (volume of FFB (tonnasse)) basis monthly and each farmer. While the recapitulation of result of harvest per farmer group stated in a the record of harvest farmer groups (informed about name of farmers, land area per farmer, year plants, trees per hectare/the number of plants, and volume of FFB).

The organization has been implemented a system for the tracking and tracing of FFB produced by member group in form of FFB sales book through FFB marketing unit. In the book, there are information about name of farmer from FFB was harvested and it was categorized as FFB certified and non-certified.

On 1st surveillance audit, the organization has revised a mechanism/procedure/work flow about FFB sales via Independent Smallholder Group (Gapoktan) Tanjung Sehati dated on October 2013. In the mechanism/procedure/work flow has informed that the result of harvest FFB are collected in collection point results (Tempat Pengumpulan Hasil) to be weighed, recorded of name of the owner of the FFB and ensure of FFB category (FFB certified or FFB non-certified). Furthermore FFB brought to the mill by bringing the FFB delivery letter (Surat Pengantar Buah) and the recipient of the letter signed after FFB received in mill. Independent Smallholder Group (Gapoktan) conducting payment for FFB received from farmers with periodicly. The farmers signed receipt the result of harvest at time of receiving payment. Moreover, the mechanism has described that the organization will be to ensure that there are not non-certified FFB was claimed/sold as certified FFB.

Gapoktan was issued circular letter No.01/Gapoktan/IX/2013 regarding supply chain model selected i.e Mass Balance (MB). The certified FFB is FFB from member’s estates which include of certification scope and was sold via marketing unit. Whereas non-certified FFB is FFB from member’s estate which exclude of certification scope and FFB from surrounding communities.

Data of FFB sales (physic) via Independent Smallholder Group (Gapoktan) Tanjung Sehati (marketing unit) period of January to November 2014 are 3,153.84 ton come from the category of certified FFB : 949.16 tonnes and non-certified FFB : 2,204.68 tonnes. FFB sales were done physically is not claimed as a certified product by Gapoktan because appropriate with requirement.

Based on supply chain certification system that Independen smallholders can sale of the certified product by Green Palm platform where Gapoktan has joined since July 2014 with member ID is GP00000829. Gapoktan has sold certified CPO are 402 tonnes and PKO are 50 tonnes in year 2014 to Rewe Energy (German).

There are sufficient evidence that the mechanism of FFB sales above has socialized to all group members and has implemented appropriately so that there are not non-certified FFB claimed/sold as RSPO certified FFB.

The organization using FFB delivery slip to buyer on behalf Independent Smallholder Group (Gapoktan) Tanjung Sehati in Mekar Jaya village where there are information of delivery date/day, quantity/volume (tonnase), transport (car number plate and name of driver), name of product, supply chain model, sign of estate and sign of receipt. Futhermore delivery FFB to PT Sari Adtya Loka-1 mill has prepared form especially from company i.e FFB delivery letter. In the letter, there are information of destination of shipping, delivery date, transportation (car number plate and name of driver), origin estate, division/block, year plant, quantity (amount of bunches), volume of FFB (tonnase) in estate and note (there are information of smallholder FFB – MB).



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Group manager has delegated his authority to sales manager related ensure of all invoices for sales of RSPO certified FFB originating from member group are issued with the required information of the RSPO supply chain certification system.

The organization has owned truck with amount 1 (one) unit (BH 8210 FU ) i.e car number plate : BH 8210 FU with capacity are ± 10-12 ton/trip. The period of November 2014, GAPOKTAN was used self vehicle for FFB dispatch to PT SAL mill.

During 1st surveillance audit, all sales of FFB from the GAPOKTAN of group member as certified has documented such as weighbridge slip note (FFB weighing result from each farmer), FFB sold payment (marketing unit to farmers), FFB delivery letter (GAPOKTAN to PT Sari Aditya Loka-1 mill) and FFB delivery note (GAPOKTAN to PT Agrindo Indah Persada mill).

Weighbridge slip note as FFB purchase record from each farmers. it has 2 (two) pages where 1st page for farmer and 2nd page for head of marketing unit. The information on weighbridge slip note are name of farmer, name of road or group, date of harvesting, volume of quantity (kg). The organization has two type of FFB delivery note to mill i.e FFB delivery letter and FFB delivery note because requirement from each mill. Both documents contain information about vechicle number and supply chain model, description of product sold (RSPO certified or non-certified), name of organization, product volume/quantity, name of buyer and address/location buyer. The daily harvesting report as attachment where name of farmers, product volume and name of group/road available. Attachment was not delivered to mill but was keeped only as archive with FFB delivery note/letter.

The information stated on the payment slip are total FFB or FFB volume, date of loading, nominal of receive (Rp), name of farmer and sign of farmer . While payment records for buyer also keep by marketing unit including copy of invoiced issued and FFB grading result.

The organization has kept a copy of all document and records of transaction period two years (year 2013 and January to November 2014) such as FFB delivery note/letter, weighbridge ticket from mill, payment of FFB sold records from owner delivery order (DO), payment of FFB purchased records to farmer, etc. The organization has commitment to maintain transaction product record/document during 5 years because it has head of independent smallholder group (Gapoktan) decree no. 07/SK-GT-TS/VIII/2013 dated on October 20, 2013 regarding retention time of documents and records.

The organization do not have outsource activity or intermediary exists in supply chain.

Compliance status : Full Compliance

B. Findings against RSPO Independent Smallholders:

Principle 1 : Commitment to transparency

Criteria assessed: CR1.1; CR1.2 Criteria not assessed: -

Findings:

The organization Gabungan Kelompok Tani, or Gapoktan has a log book of outgoing letters, minutes of the annual members meeting, and board meetings. Information requested from stakeholders was not obtained. Gapoktan sets documents retention for requests for information and the responses for 5 years, as stated in the Chairman of Gapoktan Decree No. 07/SK-GKT/TS/VIII/2013 on the Shelf Life of the Documents.

Standard Operational Procedures document has set the entire Gapoktan members to provide information of farms and farmers profile. The information consists of land area, number of palm oil trees, plantation age, harvesting amount, the type and amount of fertilizer used, the type of pesticide used, source of the planted seed, the soil origin, copy of the land certificate. There are membership book of 6 Farmers Groups for which data have been renewed in October 2013. Moreover, Gapoktan have statement or policy that information can be access by public are 1). legal ownership of the land in the form of certificate of ownership (Sertifikat Hak Milik) and land information letter (Surat Keterangan Tanah) which issued by the head of village and



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there are no conflict in the land; 2). Environmental Management Statement (SPPL) document and their plan of managing efforts and their implementation; 3). Annual Working Plan and social activities. During 1st surveillance audit, there are not stakeholders request of information it.

Gapoktan Tanjung Sehati has an organizational structure and they have been legalized as an organization with the Notarial Deed of Gapoktan Establishment. Compliance status: Full Compliance

Principle 2: Compliance with applicable laws and re gulations

Criteria assessed: CR2.1; CR2.2; CR2.3 Criteria not assessed: -

Findings:

Gapoktan has a list of applicable regulations to palm oil plantation activities on the Gapoktan, labor, plantation (Government Regulation No. 7/1999, Ministry of Agriculture Regulation No. 1/2007, Ministry of Agriculture Regulation No. 14/2009, Ministry of Environment Regulation No.13/2010 and Ministry of Agriculture Regulation No.98/Permentan/OT.140/9/2013) and has maintained. There are sufficient evidences that the Gapoktan has fullfill implementation the applicable regulation, for instance are : • Gapoktan have complied with the Law No.13/2003 article 88, 89 and 90 on the wages of workers and

Jambi Government Province decree no. 610/Kep.Gub/DISSOSNAKERTRANS/2013 dated on October 23, 2013 regarding Provincial Minimum Wages year 2014. Based on interview with the workers and checking of payment receipts of the road maintenance workers that daily labour was paid Rp 70,000 per day (equal od Rp 1,750,000 per month with 25 working days ;

• Gapoktan have complied with the Ministry of Environment Regulation No. 13/2010 with evidence is the Gapoktan have Environmental Management Statement (SPPL) document which has issued by Head of the Environment Agency (BLHD) of Merangin Regency ;

• Gapoktan have complied with the Ministry of Agriculture regulation No.26 year 2007 article 5 with evidence is the each group members have Registered Business Certificate of Horticultural Crop Cultivation Venture (Surat Tanda Daftar – Budidaya (STD-B)).

• Gapoktan has been legalized with a Notarial Deed of Establishment No.80 dated on May 8, 2013 made by Aswanto,SH.MKn.

Current condition that the Gapoktan have complied with minimum wages year 2014 so that the Gapoktan has maked adjusment to regulation change.

Chairman of the Gapoktan established procedures about updating the regulations and guaranting that law and regulation are implemented. Update the regulations to be done in Gapoktan meetings by quarterly. The information of new regulations usually obtained from Goverment’s field counseling Staff (PPL-Petugas Penyuluh Lapangan) and NGO Setara. Chairman has verified several regulations by yearly with evidence in the form a check list record.

Smallholder are able to show legal ownership of the land in the form of certificate of ownership (Sertifikat Hak Milik) and land information letter (Surat Keterangan Tanah) which issued by the head of village. Smallholder has certificate of ownership amount of 51 persons and the other (163 persons) are the form of a land information letter from head of village as an example that Kemang Jaya Group are certificate of ownership : 10 persons and land information letter (Surat Keterangan Tanah) : 18 persons where three certificate of ownership as loan guarantee to bank, Mandiri Jaya Group are certificate of ownership : 13 persons and land information letter (Surat Keterangan Tanah) : 20 persons and Sido Maju Group are certificate of ownership : 25 persons and land information letter (Surat Keterangan Tanah) : 13 persons where four certificate of ownership as loan guarantee to bank.

In 1st surveillance audit, based on interview and verification in field that there was no dispute arises so that records of resolution/progress towards resolution are not available. Land borders are marked in the form of trenches, walkways, stacks of palm oil midrib was dead where it have been agreed between the two sides neighboring/adjacent. Based on verification in field (member no. KJ-17, KJ-23, MJ-10, MJ-19, MJ-35, SMj-37, SMj-38, SMk-06 areas) that land borders are marked clearly (border MJ-10 area with MJ-35 area is 010 51’ 51.7” S; 1020 28’ 00.6” E, border MJ-19 area is 010 51’ 45.6” S; 1020 28’ 10.2” E) and maintained.



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Map of the distribution of independent palm oil estates of Gapoktan Tanjung Sehati based on participatory mapping in July-August 2009 has been obtained. Update on the estates distribution map was done through participatory mapping in October 2012, GPS terrestrial survey in May 2013.

There is not traditional right or other rights in this area. The palm oil plantation which was cultivated by the farmers who are members of Gapoktan was derived from the land allocated by the government for the transmigration program (general transmigration and independent transmigration) year 1986 and the other land (leftover land) opened/worked by homesteader, or from the purchase of land from other village residents. Records of legally owned lands from the transmigration program and the purchase of land between village’s residents have available. Compliance status: Full Compliance

Principle 3: Commitment to long-term economic and f inancial viability

Criteria assessed: CR3.1 Criteria not assessed: -

Findings:

Organization has operational work plan year 2014 such as yearly member meeting (Rapat Anggota Tahunan), board meeting, management of subsidized fertilizer, FFB sales, credit/loan, maintenance of road, schedule of fertilizing, schedule of harvesting, maintenance of estate with together, submission of seeds and recruitment of administration personil, membership card issued and scholarships programe for students surrounding the Mekar Jaya village. The operational work plan year 2014 not include activity plan regarding to conduct coaching to group members with involving Goverment’s field counseling Staff (PPL-Petugas Penyuluh Lapangan), palm oil mill which has received FFB from Gapoktan and relevant government agencies. That is condition was raised as non-conformity (NCR No.2014-01 of 08 ).

The realization of operational work plan year 2014 are recruitment of administration personal since August 2014, road maintenance on jl.apel, jl.tomat and jl.kemang, and receiving seeds from seed company (PPKS) are 2,300 pcs.

Organization did not have a replanting program because the palms were still young, the oldest being just 17 years. They plan to start for replanting in year 2022 for year 1997 plantation area in Sido Mulyo and Sumber Hasil. Compliance status : Not Complaince

NCR No. 2014-01 of 08

The operational work plan year 2014 not include activity plan regarding to conduct coaching to group members with involving Goverment’s field counseling Staff (PPL-Petugas Penyuluh Lapangan), palm oil mill which has received FFB from Gapoktan and relevant government agencies.

Principle 4: Use of appropriate best practices by p lantation and mill

Criteria assessed: CR4.1; CR4.2; CR4.3; CR4.4; CR4.5; CR4.6; CR4.7; CR4.8 Criteria not assessed: -

Findings:

Organization has manual or guide of harvesting, maintenance/manuring (mature and immature), fertilization, land clearing, nursery, pest management, and land appropriate assessment which issued by Indonesian Oil Palm Research Institute (Pusat Penelitian Kelapa Sawit) and increase production and oil palm of sustainability guidance. Implementation of Good Agriculture Practices in field not appropriate with procedure such as: • Spraying activities till riparian areas at one of the group member areas (No. MJ-22) or 010 51’ 43.3” S;



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1020 28’ 18.3” E. It is not appropriate with maintenance/manuring procedure and maintains natural water resources guidance.

• Based on interview with member no. MJ-35 that he is mixing agrochemical and washing spraying tools (knapsack sprayer) in natural water resources. It is not appropriate with maintain natural water resources guidance.

• They are not fertilizing during 1 years such as member no. MJ-04, MJ-07, MJ-22, MJ-23, MJ-30, MJ-32 in Mandiri Jaya Group and Sainun and Marsono areas in Sido Maju Group. It is not appropriate with fertilization procedure.

• Handling/disposal of agrochemical waste container.

Condition above as non-conformity category so that it was raised as non-conformity (NCR No.2014-02 of 08).

There are evidence of implemented procedures, for example record the use of fertilizers year 2013 and 2014 (until November 2014) per farmer, record the use of pesticide year 2013 and 2014 (until November 2014) per farmer, record of harvest year 2013 and 2014 (until November 2014) per farmer, record of FFB delivery to buyer year 2013 and 2014 (until November 2014), FFB sales via Gapoktan year 2013 and 2014 (until November 2014), etc.

Smallholder organization has keeps the fertilizer application record year 2013 and 2014. Types of fertilizers used are Urea, KCl (MoP), SP, NPK, Borat, organic fertilizer and other fertilizers (ZA, kapur, kisrite, urine and EFB). Volume of fertilizer used by each farmer group year 2014 (until November 2014) are such as:

• Sumber Hasil farmer group amount of 33,260 Kg consist of urea: 2,500 Kg, KCl (MoP): 5,450 Kg, SP: 750 Kg, Borat: 10 Kg, NPK: 6,050 Kg, Kapur: 6,500 Kg and organic fertilizer: 12,000 Kg.

• Sido Mulyo farmer group amount of 47,546 Kg and 4,200 litre consist of urea: 5,800 Kg, KCl (MoP): 8,375 Kg, SP: 2,700 Kg, Borat: 161 Kg, NPK: 10,710 Kg, Kapur: 3,400 Kg and organic fertilizer: 15,000 Kg & urine: 4,200 litre.

• Sido Maju farmer group amount of 65,000 Kg consist of urea: 6,200 Kg, KCl (MoP): 7,100 Kg, SP: 5,750 Kg, Borat: 0 Kg, NPK: 6,900 Kg, Kisrite: 250 Kg, Kapur: 0 Kg, organic fertilizer: 34,800 Kg and EFB: 4,000 Kg.

• Mandiri Jaya farmer group amount of 21,700 Kg consist of urea: 3,750 Kg, KCl (MoP): 3,800 Kg, SP: 2,900 Kg, Borat: 0 Kg, NPK: 8,250 Kg, Kapur: 0 Kg, dolomit: 3,000 Kg and organic fertilizer: 0 Kg.

• Sido Makmur farmer group amount of 21,361 Kg consist of urea: 2,450 Kg, KCl (MoP): 4,900 Kg, SP: 2,150 Kg, Borat: 11 Kg, NPK: 8,400 Kg, Kapur: 1,950 Kg and organic fertilizer: 1,500 Kg.

• Kemang Jaya farmer group amount of 18,803 Kg consist of urea: 1,900 Kg, KCl (MoP): 5,450 Kg, SP: 0 Kg, Borat: 3 Kg, NPK: 6,550 Kg, Kapur: 4,900 Kg and organic fertilizer: 0 Kg.

Smallholder organization kept year productivity record and FFB production year 2013 & 2014 (till Nov 2014) where their information has described below:

Estate Name

Total area (Ha)

Mature (Production)

area (ha)

FFB Production year 2013 (tonnes)

FFB Production year 2014

(tones)

Average yield year

2013 (Ton/ha)

Average yield year

2014 (ton/ha)

Sido Mulyo 98.33 98.33 1,168.75 1,061.16 11.89 10.79

Sido Makmur 44.14 44.14 693.29 599.44 15.71 13.58

Mandiri Jaya 63.37 63.37 817.16 709.65 12.89 11.20

Sido Maju 68.60 68.60 1,036.75 1,064.50 15.11 15.52

Sumber Hasil 40.55 40.55 585.32 516.48 14.43 12.74

Kemang Jaya 31.58 31.58 604.80 498.16 19.15 15.77

TOTAL 346.57 346.57 4,906.07 4,449.39 14.86 13.27

In 1st surveillance audit, there is not adding scope audit so that profile of objects same as previous audit. Based on map of topography and soil and field verification, topography in Independent Smallholder Group (Gapoktan) Tanjung Sehati area is flat (dominant) but there is conservation effort for plantings on sloping terrains such as in Mr Sagimin’s estate using terracing method. Since the plantation has been mature stage, the auditor can not seen the process of cover crop plantation, however audit can see that remain cover crop still exist.



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There is no peat soil I all farmers area, as seen on the soil map information. There is small wetland area (lowland area) mineral soil, Gapoktan conduct soil and water conservation program by drainage system construction such as explained by the Gapoktan staff and observed on the field.

Organization has keeps record on pesticide and fertilizer application year 2013 and 2014. Information about record fertilizer application has described on indicator above. Furthermore, pesticide (herbicide) used are Supretox 276 SL (paraquate dichloride 276 g/l), Gramoxone 276 SL (paraquate dichloride 276 g/l), supremo 480 AS (isopropyl aniba glyphosate 479.7 g/l), Roundup 486 SL (isoprophylamine glyphosate 486 g/l) and Noxone 297 SL (paraquate dichloride 297 g/l), bismilang 480 AS ((isoprophylamine glyphosate 480 g/l). Volume of pesticide used by each farmer group year 2014 (until November 2014) has described below:

Estate Name

Total area (Ha)

Supertox (L)

Gramoxone (L)

Supremo (L)

Round-up (L)

Noxone (L)

Bismilang (L)

Sido Mulyo 98.33 61.0 81.0 0.0 3.0 3.0 7.0

Sido Makmur 44.14 7.0 11.5 0.5 1.0 0.0 0.0

Mandiri Jaya 63.37 33.5 8.0 16.5 0.0 5.0 0.0

Sido Maju 68.60 22.5 29.0 0.0 0.0 0.0 1.0

Sumber Hasil 40.55 5.0 7.0 0.0 0.0 0.0 0.0

Kemang Jaya 31.58 2.7 23.0 0.0 7.0 2.0 0.0

TOTAL 346.57 131.7 159.5 17.0 11.0 10.0 8.0

Organization has conducted socialization about maintain natural water resources (river and swamp) in form of signboard where the signboard are installed on the main road, estate and strategic location, terracing and setting midrib in parallel with water flow. Found in field that there are spraying activities till riparian areas at one of the group member areas (No. MJ-22) or 010 51’ 43.3” S; 1020 28’ 18.3” E. It is condition not appropriate with information in socialization. It was raised as non-conformity (NCR No. 2014-03 of 08 ).

Previous audit that organization has conducted monitoring and control of pest and disease but in 1st surveillance audit that organization has not conducted monitoring and control of pest and disease year 2014 so that report of monitoring and control of pest and disease not available. It was raised as non-conformity (NCR No. 2014-04 of 08 ).

Organization has conducted Integrated Pest Management (IPM) training on date of June 20, 2013 where attendance list, certificate and documentation available. Based on interview with one of farmer that he is understanding symptoms of pest and diseases such as rat, oryctes rhinoceros, nettle caterpillar, inefficiency nutrient etc. and ways to overcome them. Based on interview with six farmers that they have knowledge regarding IPM.

Organization has conducted how to use agrochemicals and OHS training (include agrochemical storage, how to spraying which safe and effective, emergency actions and handling of waste agrochemical container) on date have June 30, 2013 where attendance list and documentation available. Based on interview with eight farmers that they have knowledge regarding how to use agrochemicals in general.

Agrochemicals for pesticide (herbicide) used are Supretox 276 SL (paraquate dichloride 276 g/l), Gramoxone 276 SL (paraquate dichloride 276 g/l), supremo 480 AS (isopropyl aniba glyphosate 479.7 g/l), Roundup 486 SL (isoprophylamine glyphosate 486 g/l) and Noxone 297 SL (paraquate dichloride 297 g/l), bismilang 480 AS (isoprophylamine glyphosate 480 g/l) where these pesticide has registered and approved by The Ministry of Agriculture. Number of register for roundup 486 SL (isoprophylamine glyphosate 486 g/l) is RI.01030120001 560, gramoxone 276 SL (paraquate dichloride 276 g/l) is RI.01030113 436, noxone 297 SL (paraquate dichloride 297 g/l) is RI.1907/1-2008/T, supretox 276 SL (paraquate dichloride 276 g/l) is RI.2087/9-2008/T, bismilang 480 AS (isoprophylamine glyphosate 480 g/l) is RI.919/12-2008/T.

Implementation of spraying in field was appropriate best practice such as the use of agrochemical according to species, dosage, application method and time (in member no. KJ-17, KJ-23, MJ-10, MJ-19, MJ-35, SMj-37, SMj-38, SMk-06 areas); and the use of PPE (masker, helmet, boots, long shirts and gloves) except the workers in MJ-19 & 35 areas because they are not using of PPE on agrochemical activity. It was raised as non-conformity (NCR No.2014-05 of 08 ). Based on record and interview with farmers that there are not cases of pesticides poisoning to applicator.

Pesticides storage placed in location not easily reached by children’s and separated from other materials. Furthermore, waste pesticides container disposed in a certain hole that has been provided or collected at



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the secretariat independent smallholder group (gapoktan) as illustrated in flowchart of disposal of waste pesticide storage. If has full so the hole will be backfilled soil.

Organization has a policy on health and working safety which stated in signboard i.e. prioritizing the health and safety and mandatory use of PPE where one of implementation in field are note the direction of the wind at the time of spraying, immediately cleaned up and working tools after work. OHS and emergency action training has conducted by organization on date of June 30, 2013 where attendance list and documentation available. Based on interview eight farmers that they have knowledge regarding emergency action and handling an accident.

Organization has owns a document of risk analysis from working stages such as activity of spraying, fertilizing, harvesting, weeding, slashing midrib, loading of FFB to truck etc and preventive action it.

There is sufficient evidence that Training Program year 2014 has been done as per scheduled. The records that can demonstrate as follow : • Attendance List of RSPO P&C Socialization on, 2nd Week of March 2014, attended by 30 personnel,

performed by Gapoktan • Internal Supervision System, 4th Week of May 2014, attended by 15 personnel, performed by NGO’s

Setara – Jambi. • Integrated Pest Management, 1st Week of September 2014, attended by 35 personnel, performed by

Dishutbun, Merangin District. • Organizational & Leadership Management Training, 3rd Week of October 2014, attended by 14

personnel, performed by NGO’s Setara - Jambi Compliance status: Non Compliance

NCR No. 2014-02 of 08

Implementation of Good Agriculture Practices in field not appropriate with procedure such as: • Spraying activities till riparian areas at one of the group member areas (No. MJ-22) or 010 51’ 43.3” S;

1020 28’ 18.3” E. It is not comply with maintenance/manuring procedure and maintains natural water resources guidance.

• Based on interview with member no. MJ-35 that he is mixing agrochemical and washing spraying tools (knapsack sprayer) in natural water resources. It is not appropriate related to maintain natural water resources guidance.

• They are no fertilizing activities during 1 year such as member no. MJ-04, MJ-07, MJ-22, MJ-23, MJ-30, MJ-32 in Mandiri Jaya Group and Sainun and Marsono areas in Sido Maju Group. It is not appropriate with fertilization procedure.

• Handling/disposal of agrochemical waste container.

NCR No. 2014-03 of 08

There are spraying activities till riparian areas at one of the group member areas (No. MJ-22) or 010 51’ 43.3” S; 1020 28’ 18.3” E

NCR No. 2014-04 of 08

The Monitoring and control results report of pest and disease is not available

NCR No. 2014-05 of 08

There are workers in MJ-19 & 35 areas not using of PPE in agrochemical activities.

Principle 5: Environmental responsibility and conse rvation of natural resources and biodiversity

Criteria assessed: CR5.1; CR5.2; CR.5.3; CR5.5 Criteria not assessed: CR5.4; CR5.6

Findings:



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Gapoktan have Environmental Management Statement (SPPL) document which has signed by the Head of farmer group, Head of independent smallholder group (Gapoktan) and Head of the Environment Agency (BLHD) of Merangin Regency dated on November 28, 2013. The results of impact identification such as erosion in slope areas, puddles in certain locations, accelerating decline in groundwater levels, and pollution of water resources while some activities have been done by Gapoktan related of the management of environmental impact such as the develop of terracing in slope areas, there are plant remains on areas, piling midrib to the position perpendicular to the direction of countur/slope, making ditch drainage, planting other oil palm plant and management and controlling the use of chemicals.

The organization has develop of terracing in slope areas or erosion potensial areas, there are plant remains on areas, pilling midrib to the position perpendicular to the direction of countur/slope, making ditch drainage, planting other oil palm plant and management and controlling the use of chemicals. All activities has compiled in report of impact managements.

During 1st surveillance audit, the organization have a program for implementing impact management such as monitor of consistency about the stacking midrib, there are plant remains on areas, using PPE by applicators, handling of agrochemical container waste and making ditch drainage other locations.

Based on interview with eight farmers and verification to field that they are able to list protected flora and fauna in their local areas such as banyan tree (Ficus benjamina), tiger (Panthera tigris sumatrae), python (Python reticulatus), cobra (Naja sumatrana), bulian tree (Eusideroxylon zwageri), murai batu bird (Pycnonotus sp) but they are not exist within farmer estates so there is a dedicated person be appointed to train smallholders on conservation. Futhermore, farmers could explain the procedure/mechanism to handle conflict with protected species.

Based on interview with seven farmers and verification to field that farmers can explain measures to dispose hazardous agrochemicals and their container in accordance to instruction labels as stated by the manufacturer i.e waste agrochemical container destroyed and then buried at least half metric into ground at a place away from water sources and settlements. The one of group member in Mandiri Jaya Group (MJ-08) can not explain about handling of agrochemical container waste and there are not evidence that he has been done handle of agrochemical container waste accordance to instruction labels as stated by the manufacturer. It was raised as non-conformity (NCR No.2014-06 of 08 ). The organization has been providing the hole for disposal waste agrochemical containers so that the farmers throw it in the hole. Result of visit to field that there are waste agrochemical container in their hole.

During 1st surveillance audit, based on interview with head of Mekar Jaya village and neighbours from farmers which not member that there are not complaints from local communities related to disposal of agrochemical and their container.

Replanting will be carry out at early on year 2022, thus there is not replanting activities during this surveillance audit performed.

There is “Fire Emergency Response” Unit in the Organizational Structure of Gapoktan Tanjung Sehati. The Gapoktan has been appointed Mr. Lasno as Chairman at the Unit. The Group Manager also established a procedure to response emergency situation, especially fires emergency. There are sufficient evidences that the procedure has been socialized to members within Gapoktan and understood by them.

There are sufficient evidences that the Gapoktan do not use fire for eliminate pests and/or disease and for any other reasons. Since the simulation/training of emergency response of land fires was conducted on June 5, 2013, there is no simulation of fire emergency response anymore.

The infrastructures and equipments for fires fighting such as fire exstinguisher (dry chemical powder type), buckets, saws, rackets, safety helmet, masker, wearpack, etc are available and maintained. Compliance status : Non Compliance

NCR No. 2014-06 of 08 The one of group member in Mandiri Jaya Group (MJ-08) can not explain about handling of agrochemical container waste and there are not evidence that he has been done handle of agrochemical container waste accordance to instruction labels as stated by the manufacturer.



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Principle 6: Responsible consideration of employees and of individuals and communities affected by scheme smallholder

Criteria assessed: CR6.1; CR6.2; CR6.3; CR6.4; CR6.5; CR6.7; CR6.8; CR6.9; CR6.10; CR6.11 Criteria not assessed: CR6.6

Findings:

There is evidence that the farmers group has a checklist on environmental and social impact identification of the palm oil plantation. Examination on the checklist was carried out to 2 members of Kemang Jaya, 3 members of Mandiri Jaya, 2 members of Sido Maju and 1 member of Sido Makmur Groups. All members different with previous audit. The positive impacts identified are create employment (harvest workers, maintenance workers), rising the levels of public education (many of the children go to college), increasing the level of the economy, contributing to rural development (religious facilities, roads, culverts, etc.). While the negative impacts are the potential for air pollution and noise from trucks/palm oil transporting vehicle (trucks that pass through the road axis into the village are about 3-4 trucks per day), the potential impacts of water pollution. Based on interviews with farmers’ group members, eighth members of Gapoktan above can explain clearly the impact from the plantation activities.

Handling of grievance was carried out by member meeting and it has documented on minute of meeting such as broken road.

Gapoktan has an outgoing letter log book, circular letter, the minutes of the annual members meeting and board meetings. All records of consultation and communication has documented where include complaint records from internally and externally.

Gapoktan also has a guest book which records the visit of stakeholders and the arrival purposes of the guests. Designated responsible party for consultation and communications are each farmer’s group leader. From the head of the farmers group, it was then discussed with Gapoktan.

There is not change mechanism of communication, consultation and complaint with previous audit. The mechanism of communications, consultation and complaints made by Gapoktan is through the following process: from stakeholder/farmers group member sign the guest book and records their need, the record is then submitted to the Chairman of Gapoktan. Direct answer, if any, will be given directly by the Chairman of Gapoktan. If there is no direct answer, the stakeholder/farmers group member will have to wait for the Chairman to discuss with other administrators, before gaining the answer. The communications and complaints procedure was posted in the bulletin board in Gapoktan office. Gapoktan also provided complaint form, which contains the identity of the complainant (name, age, farmers’ group origin) and his complaints.

The organization has record on complaint/grievance regarding broken road and their action taken records but complaint record not well documented.

There are membership book of 6 farmers groups incorporated in Gapoktan Tanjung Sehati, based on the update in October 2013. The document includes a certificate of ownership (Sertifikat Hak Milik) and land information letter (Surat Keterangan Tanah) and map of the area. There is not traditional right or other rights in this area. The palm oil plantation which was cultivated by the farmers who are members of Gapoktan was derived from the land allocated by the government for the transmigration program (general transmigration and independent transmigration) year 1986 and the other land (leftover land) opened/worked by homesteader, or from the purchase of land from other village residents. Records of legally owned lands from the transmigration program and the purchase of land between village’s residents have available. There has been no case of land claims or conflicts related to land ownership.

Gapoktan itself already has a identification system and calculation of compensation payment on legal rights and customary rights transfer. It has described that acquision/selling process with the local community involving traditional authorities, neighbour boundaries and head of the village. That is system/procedure has re-socialized to stakeholders on February 2014 and relevant stakeholders was agreed with system/procedure it.

Checking to the workers who were working in the plantation owned by Gapoktan members, obtained information that the payment for harvest workers varies between Rp100,000 to Rp120,000 per ton. The wage difference depends on the distance yard. The farther away, the higher the wages. As for the job of cleaning the grass and spray ranges between Rp 65,000 to Rp 70,000, and pruning works is paid Rp 80,000. The wages paid have exceeded the terms of Jambi Province Minimum Wages of Rp1,502,230 per



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month (or about Rp 60,089 per day). Besides wages, the workers were also provided with snacks and cigarettes. There is no working contract made between farmers who owned the land and their workers because he is not permanent employees.

In the Standard Operational Procedures document made by Gapoktan, Article III and VIII have declared prohibition on employing child labor. Based of recognition of farmers group/farmers with labor, as well as interviews with workers, there are no children labor or exploited.

In the Standard Operational Procedures document made by Gapoktan, Article VIII has stated that all of the farmers’ group members with labor are required to respect the rights of the employees without discrimination.

During 1st surveillance audit, there were no cases and complaints of discrimination (based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation and age) from the workers. Most workers were relatives of the land owner. Workers are paid according to market value of the prevailing wage. There were no workers paid below market wages.

In the Standard Operational Procedures document made by Gapoktan, Article VIII stated that land owners with female workers are prohibited from doing physical or sexual violence, and to respect the reproductive rights of women.

Observed on field during 1st surveillance audit that auditor not found female as worker. Based on interview with the one of farmers and head of Gapoktan that if any other times/days, there are female’s worker where she is work to help their husband carry out the harvest. From farmers’ information, women usually just help their husband while maintaining the plants or when harvesting, but not in routine. There is not grievance/complaint/case regarding physical or sexual violence and reproductive rights of women.

In the Standard Operational Procedures, Article III Verse 10, 11 and 12 explained Gapoktan’s policy of doing business in a fair and transparent manner. Flowchart of FFB sales through Gapoktan Tanjung Sehati has been made in October 2013. Purchase of FFB from Gapoktan members apply the provisions of the harvested fruit is the fruit that is ripe and have fallen from the tree. Then, the harvest gathered in the Harvest Place (Tempat Pemungutan Hasil, or TPH) to be weighed. FFB then taken to the mill of PT SAL or PT AIP. Payment made after the mill pays to Gapoktan. Gapoktan will announce it to the farmers through SMS. The purchase price of each mill will be listed in Gapoktan office. Gapoktan publishes the information on FFB price in Gapoktan office.

Gapoktan itself is not involved in determining the price of FFB. The price received by farmers is the price determined by the company that received farmers FFB, namely PT Sari Aditya Loka and PT Agro Indah Persada.

Cooperation with PUSKUD is for the procurement of fertilizer for Gapoktan members, i.e. through the submission of application for obtaining fertilizer with low prices submitted by Gapoktan to PUSKUD.

Sales of FFB to PT SAL (Sari Aditya Loka) did not use contract documents, just a Note of Acceptance of the palm fruit. Confirmation to PT SAL stated that the Note of Acceptance was evidence of contract between PT SAL and the FFB supplier, including in this case Gapoktan Tanjung Sehati. While the sales of FFB to PT AIP (Agroindo Indah Perkasa) used a Delivery Order document owned by Mustapa (intermediate trader).

There are no written rules regarding FFB payment. Gapoktan (FFB Marketing Unit) will convey trough SMS when the funds of the payment is available. Based on interview with farmers, payment usually made 3 days after the harvest being transported. It is has implemented consistently by Gapoktan until 1st surveillance audit.

Gapoktan pays a contribution fee to the village at Rp5 per kilogram of harvest, an average of Rp1 million per month paid to the village through the Treasurer of Mekar Jaya Village. Gapoktan also make donation to parties who filed a request of donations trough proposal. Road of palm oil production, besides being used by palm oil farmers incorporated in Gapoktan, is also used by others. Compliance status: Full Compliance

Principle 7: Responsible development of new plantin gs



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Criteria assessed: CR7.1 to CR7.7 Criteria not assessed: -

Findings:

Based on verification of document and field that Gapoktan have not new planting or activities outside of the existing area so that there are not SEIA document, recommendation letter from local government regarding land suitability, working plan, HCV document, slope and marginal land map, agreement letter from indigenous people and local communities, agreement letter of compensation for land acquisition and record of implement zero burn techniques in land preparation for new planting areas/activities. The oldest planting activitiy was done in year 1997.

Compliance status: Full Compliance

Principle 8: Commitment to continuous improvement i n key areas of activity

Criteria assessed: CR8.1 Criteria not assessed: -

Findings:

Social and environmental activities work plan of Gapoktan Tanjung Sehati in 2014 was obtained but Gapoktan have not prepare action plan for continuous improvements in maintenance/manuring of palm oil/estates, maintain soil fertility, control and training on smallholder palm oil plantation management and handling of agrochemical container waste disposal. Moreover, no evidence that smallholder’s plantations/estate has received control from Goverment’s field counseling Staff (PPL-Petugas Penyuluh Lapangan) and or Gapoktan. It was raised as non-conformity (NCR No. 2014-07 of 08 and No. 2014-08 of 08). Compliance status : Non Compliance

NCR No. 2014-07 of 08 Gapoktan have not prepare action plan for continuous improvements in maintenance/manuring of palm oil/estates, maintain soil fertility, control and training on smallholder palm oil plantation management and handling of agrochemical container waste disposal.

NCR No. 2014-08 of 08 No evidence that smallholder’s plantations/estate has received control from Goverment’s field counseling Staff (PPL-Petugas Penyuluh Lapangan) and or Gapoktan.

3.2 Status of Previously Identified Non-conformitie s

During the previous audit, a total of 7 (seven) non-conformities were identified. The company is given a timeframe to close all major non-conformities within 60 days and at time of first submission of this report to the certification body.

Element 2.2. Major indicator 2 of RSPO Group Certification: The Group Manager shall implement a regular and ong oing internal assessment programme for all current group members

Non-conformance 2013- 01 of 07

There is no evidence that the Group Manager has conducted regular internal assessment as required under the RSPO standard for group certification.

Verification result:

The organization has carried out internal assessment dated on 20-22 December 2013 with sample size are 12 members/farmers so that it has appropriated with requirement i.e. 0.8√ y while y is 214 farmers (total



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member of Gapoktan).

Year 2014, the organization has carried out internal assessment with sample size are 72 members where it has appropriated with requirement as stated on principle 2 above.

Auditor Conclusions: Closed

Element 3.2 (Major) of RSPO Group Certification: There shall be a collective group procedure for the sale of all certified FFB originating from the plantations of group members that is agreed by the group members and the Group Manager and is designed to ensure that non-certified FFB are not s old as RSPO certified FFB. This shall be contained in any group marketing system that is dev eloped for the group, and shall follow one of the supply chain models as per the RSPO Supply Chain Ce rtification Systems, i.e. Identity Preserved, Segregation or Mass Balance. NCR No. 2013 - 02 of 07 (Major non-conformity): The mecanism/work flow has been designed and agreed by organization but still not efective because there are non-certified FFB (came from grave area and village estate) has claimed/categorized as certified FFB on sales period of October 2013 (simulation/trial period). Verification result: The organization has revised procedure/mechanism (December 2013). In the new procedure/mechanism has described that farmers shows harvesting location and FFB collection location (Tempat Pengumpulan Hasil) and informed that their estate participate in certification or not to sales team.

During 1st surveillance audit, the organization has consistent to implement procedure it so that the mistake of categorize such as previous audit did reoccur.

Auditor Conclusions: Closed Element 3.3 (Major) of RSPO Group Certification: The group manager shall ensure that all invoices fo r sales of RSPO certified FFB originating from the group are issued with the required information as per the adopted supply chain model requirements within Annex 6 of the RSPO Supply Chai n Certification Systems document – November 200 9.

NCR No. 2013 - 03 of 07 (Major non-conformity): On simulation/trial period, FFB delivery slip or FFB delivery letter was issued by Independent Smallholder Group (Gapoktan) Tanjung Sehati there are not information of product name, supply chain model and destination of shipping. Verification result: Organization has revised procedure/mechanism (December 2013). In the new procedure/mechanism has described that the FFB delivery slip/note should be information product name, model of supply chain, destination, issued/delivery date, volume/tonnase of FFB, car number plate of truck, driver name, sign of shipper and product sold (RSPO certified or not).

During 1st surveillance audit, the organizatioin has consistent to implement procedure it so that the mistake of categorize such as previous audit did reoccur.


Element 3.5 (Major indicator 4) of RSPO Group Certification: Description of the product sold (i.e. RSPO certifie d or not), product volume and destination

NCR No. 2013-04 of 07 (Major non-conformity) : There are not information of address/destination and product sold of delivery on FFB delivery letter or FFB delivery note for period of October 2013 which issued by independent smallholder group (Gapoktan) Tanjung Sehati.



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Verification result:

Organization has revised procedure/mechanism (December 2013). In the new procedure/mechanism has described that in the FFB delivery slip/note should be information product name, model of supply chain, destination, issued/delivery date, volume/tonnase of FFB, car number plate of truck, driver name, sign of shipper and product sold (RSPO certified or not).

During 1st surveillance audit that all information according procedure/mechanism has availabled on the delivery note/letter so that previous mistake was not re-issued again.


Criterion 2.1 (Major indicator 1): Evidence of compliance with essential regulatio ns relevant and related to oil palm cultivation.

NCR No. 2013-05 of 07 (Major non-conformity) : Gapoktan does not have a Statement of Environmental Management (Surat Pernyataan Pengelolaan Lingkungan-SPPL) in accordance with The Environment Ministry Decree No. LH. 13 of 2010

Verification result: The organization has a statement of environmental management each farmer group (kelompok tani) as a mechanism for monitoring and management of environmental impact signed by the head of farmer group, the head of independent smallholder group (gapoktan) and the head of environmental agency (Badan Lingkungan Hidup Daerah) - Merangin District on November 28, 2013.

During 1st surveillance audit, statement of environmental management still valid and not any revision so that the organization has been complied with relevant and related regulations.


Criterion 5.1 (Minor indicator 1): Records of implementation and report on managem ent of environmental impacts, kept at smallholder’s organi zation.

NCR No. 2013-06 of 07 (Minor non-conformity) : Organization did not have result of environmental impact identification and record of conducting it Verification results:

During 1st surveillance audit, the organization have a program for implementing impact management such as monitor of consistency about the stacking midrib, there are plant remains on areas, using PPE by applicators, handling of agrochemical container waste and making ditch drainage other locations. These program above has implemented by organization such as develop of terracing in slope areas or erosion potensial areas, there are plant remains on areas, pilling midrib to the position perpendicular to the direction of countur/slope, making ditch drainage, planting other oil palm plant and management and controlling the use of chemicals. Auditor Conclusions: Closed.

Criterion 6.4 (Minor indicator 1): Smallholder owns an evidence on legal rights an d customary rights transfer, involving community representative and re lated institution

NCR No. 2013-07 of 07 (Minor non-conformity) : Gapoktan already has a system of identification and calculation of compensation for hand over the rights of legal / customary rights land made in September but there is no evidence of such procedures socialized and agreed with relevant stakeholders (representatives of the public and other institutions). Verification results:



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The system identification and counting compensation for the expropriation of the rights of legal/customary land rights to stakeholders has disseminated to members dated on November 28, 2013.

The organization has carried out annual member meeting (Rapat Anggota Tahunan) year 2014 where one of agenda is re-socialization of the system extensively. Auditor Conclusions: Closed.

3.3 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions

A total of 8 (eight) nonconformance’s were identified during the 1st surveillance audit. These consisted of 4 major non-conformities and 4 minor non-conformities. For the major non-conformances, the company has taken the necessary corrective action to close these non-conformances within 60 days of completion of the assessment, and this was verified by the audit team through checks of documents submitted by the company. For the minor non-conformances, the company has taken corrective action against these as well, and for those, which could not be verified as closed through document checks, the closure of these minor non-conformities will be assessed during the next surveillance audit. A summary of all identified non-conformances, corrective actions taken and auditor conclusions is as below:

Indicator 3.1.1: A documented operational work plan for a minimum duration of 1 year

NCR No. 2014-01 of 08 (Major non-conformity) The operational work plan year 2014 not include activity plan regarding to conduct coaching to group members with involving Goverment’s field counseling Staff (PPL-Petugas Penyuluh Lapangan), palm oil mill which has received FFB from Gapoktan and relevant government agencies Correction:

• Develop of the operational work plan year 2015 where it has included conducting coaching to group members with involving Government’s field counseling staff (PPL-Petugas Penyuluh Lapangan), palm oil mill that has received FFB from Gapoktan and relevant government agencies.

• It would discussed on annual member meeting with members Corrective Action: To ensure that the annual operational work plan include all activity according requirements. Auditor Conclusions: Closed

Verification results:

Gapoktan has submitted operational work plan year 2015 which has included program of training and counseling to members regarding FFB quality by palm oil mill, best practices by government’s field counseling staff and management of waste container agrochemical by relevant of government agencies.

Indicator 4.1.1: A documented procedure or manual o f GAP in key activities (use of superior seeds, fertilizer application, IPM techniques and h arvesting) is available

NCR No. 2014-02 of 08 (Minor non-conformity)

Implementation of Good Agriculture Practices in field not appropriate with procedure such as: • Spraying activities till riparian areas at one of the group member areas (No. MJ-22) or 010 51’ 43.3” S;

1020 28’ 18.3” E. It is not appropriate with maintenance/manuring procedure and maintains natural water resources guidance.

• Based on interview with member no. MJ-35 that he is mixing agrochemical and washing spraying tools (knapsack sprayer) in natural water resources. It is not appropriate with maintain natural water resources guidance.

• They are not fertilizing during 1 year such as member no. MJ-04, MJ-07, MJ-22, MJ-23, MJ-30, MJ-32



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in Mandiri Jaya Group and Sainun and Marsono areas in Sido Maju Group. It is not appropriate with fertilization procedure.

• Handling/disposal of agrochemical waste container. Correction:

• Gapoktan management will issue circle letter to members and re-socialization of maintenance/manuring procedure and maintain natural water resources guidance.

• To fiil in fertilizer information in a book by regular so that record of fertilizing each member in a book usually update.

• Re-socialization of disposal agrochemical waste containers to members and the campaign of disposal agrochemical waste container to hole in estates by consistently.

Corrective Action:

• The Gapoktan management will monitor implementation letter it

• In monthly member meeting, Gapoktan management will updating progress of all activities (include fertilizing activity) so that if any member not carry out fertilizing that Gapoktan management will giving alternative solutions.

• Head of group members will receive agrochemical waste container from members in each house’s member so disposal to hole

Auditor Conclusions: Evidence of immediate action t aken was accepted. Effectiveness of implementation to verify on the next audit.

Indicator 4.4.1: smallholder organization keeps rec ord on pesticide and fertilizer application

NCR No. 2014-03 of 08 (Minor non-conformity) There are spraying activities till riparian areas at one of the group member areas (No. MJ-22) or 010 51’ 43.3” S; 1020 28’ 18.3” E Correction:

• Gapoktan management will issue circular letter to members and giving letter it to member no. MJ-22

• Re-socialization of maintenance/manuring procedure and maintain natural water resources guidance to members.

Corrective Action: The Gapoktan management will monitor implementation letter . Auditor Conclusions: Evidence of immediate action t aken was accepted. Effectiveness of implementation to verify on the next audit.

Indicator 4.5.1: records of monitoring and control of pests and diseases

NCR No. 2014-04 of 08 (Major non-conformity) Report the results of monitoring and control of pest and disease not available

Correction:

• Gapoktan conducting monitor and control of pest and disease on January 2015

• Create of monitoring and control of pest and disease reports Corrective Action: Gapoktan will carry out monitoring and control pest and disease by consistently and it was recorded



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Verification result: Gapoktan has submitted monitoring and control pest and disease report on January 2015. Period of January 2015, monitoring and control pest and disease has carried out in 5 (five) estate’s Mandiri jaya group member, 5 (five) estate’s sumber hasil group member, 15 (sixteen) estate’s sido Maju group member, 6 (six) estates’ sido makmur group member and 5 (five) estate’s kemang jaya group member.

The report has informed about period/month, type of pest/disease, quantity of attack (per Ha), level/intensities of attack (low and high), total of areas monitoring, location of monitoring and name of personnel. The type of pest/disease from results of monitoring are rats, monkey, pork’s, termites, leaf yellow because inefficiency nutrient with level/intensities of attack is low.

Indicator 4.6.3: Evidence of implementing safe proc edure (Program K3) in applying agrochemicals

NCR No. 2014-05 of 08 (Minor non-conformity) There are workers in MJ-19 & 35 areas not using of PPE on agrochemical activities Correction: Re-socialization or re-training regarding using of PPE on agrochemical activities Corrective Action: Communication to members and workers with intensive and friendly so that the awareness raised. Auditor Conclusions: Evidence of immediate action t aken was accepted. Effectiveness of implementation to verify on the next audit.

Indicator 5.3.1: Smallholders can explain measures to dispose hazardous agrochemicals and their containers in accordance to instruction labels as s tated by the manufacturer

Indicator 5.3.2: Smallholders could explain and has evidence that point 1 has been done

NCR No. 2014-06 of 08 (Major non-conformity)

The one of group member in Mandiri Jaya Group (MJ-08) can not explain about handling of agrochemical container waste and there are no evidence that he has been done to handle of agrochemical container waste in accordance with instruction labels as stated by the manufacturer. Correction:

• Gapoktan management will issue circular letter to members and re-socialization of maintenance/manuring procedure and maintain natural water resources guidance

• Re-socialization of agrochemical waste containers disposal to members and the campaign of disposal agrochemical waste container to certain hole in estates consistently.

Corrective Action:

• The Gapoktan management will monitor implementation letter.

• Head of group members will receive agrochemical waste container from members in each house’s member so they will disposed to certain hole.

Auditor Conclusions: Closed.


Gapoktan has issued circular letter and it has distributed to all members include of member no. MJ-08. Gapoktan has submitted evidence of re-socialization of agrochemical container waste disposal to



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member no. MJ-08, which has done on January 20, 2015 in the form photograph and their objective.

Indicator 8.1.1: Smallholder/smallholder organizati on prepare action plan for continuous improvements in maintenance and harvesting palm oil , IPM, maintain soil fertility, replanting techniques, control and training on smallholder pal m oil plantation management, minimizing negative impact on environment such as reduce waste , pollution or gas emission and minimizing negative social impact.

NCR No. 2014-07 of 08 (Major non-conformity)

Gapoktan have not prepare action plan for continuous improvements in maintenance/manuring of palm oil/estates, maintain soil fertility, control and training on smallholder palm oil plantation management and handling of agrochemical container waste disposal.

Correction:

• Gapoktan will create action plan for continuous improvements in maintenance/manuring of palm oil/estates, maintain soil fertility, control and training on smallholder palm oil plantation management and handling of agrochemical container waste disposal

• Gapoktan will create recapitulation of internal audit and their action plan

• Gapoktan will issue circle letter regarding use of organic fertilizer, no fertilizing on all estate’s land and handle of weed by slash using machine.

Corrective Action: The Gapoktan management will monitor implementation action plan it and will provide continuous action plan every year. Auditor Conclusions : Closed.


Gapoktan has provide evidences in the form continuous action plan year 2015 such as circular letter regarding handling of agrochemical container waste and agrochemical used waste, maintain soil fertility, to control and training on smallholder palm oil plantation management and recapitulation of internal audit.

Some activities plan for maintain soil fertility i.e. reduce use inorganic fertilizer; maximize use organic fertilizer, no spraying on total of land and strategy cycle nutrient such as applied EFB and midrib. Whereas, handling of agrochemical container waste or agrochemical used waste plan such as avoid of used agrochemical disposal to estate, river/drain and swamp, agrochemical container disposal in the hole which has prepared, avoid of spraying on riparian areas/zones, used agrochemical container not used as water storage, using PPE on working, avoid of washing spraying tools in river/drain and if any poisoned then contact to medical institute/section immediately.

Training on smallholder palm oil plantation management plan in the form of regular control and monitoring from Goverment’s field counseling Staff (PPL-Petugas Penyuluh Lapangan) and palm oil mill, which has received FFB from Gapoktan.

Indicator 8.1.1: Evidence that smallholder’s planta tion receives consultation from extension service agencies and / or smallholder organization

NCR No. 2014-08 of 08 (Minor non-conformity)

No evidence that smallholder’s plantations/estate has received control from Goverment’s field counseling Staff (PPL-Petugas Penyuluh Lapangan) and or Gapoktan Correction: Schedule of control from Goverment’s field counseling Staff (PPL-Petugas Penyuluh Lapangan) on working plan year 2015 available.



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Corrective Action: The Gapoktan management will monitor the implementation of schedule Auditor Conclusions: Evidence of immediate action t aken was accepted. Effectiveness of implementation to verify on the next audit

3.3 Issues Raised by Stakeholders and Findings Pert aining to Issues

No. Issues Raised Audit Verification

1. No negative issues regarding to existing and activities of Gapoktan members

Gapoktan members activities do not have negative impact to communities during the time

2. Gapoktan members has got benefit from RSPO certificate which their owned

There are sharing profit from Yayasan Setara on the results of selling RSPO certificate in the green palm platform

3.4 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client It is acknowledged that the assessment visit was carried out as described in this report and we accept the assessment findings and report content. Signed on behalf of Gapoktan Tanjung Sehati …………………………………………. Jalal Sayuti Head of Independent Smallholder Group Date : February 20, 2015

Signed on behalf of TUV Rheinland Indonesia ………………………………. Hendra Fachrurozy Lead Auditor Date: February 20, 2015



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APPENDICES

Appendix 1: Details of certificate



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Appendix 2: Audit plan

Date / Time (1) Organizational Unit and

Processes Auditor / Abbrev.

Interviewee Principle & Criteria

Thursday, December 25, 2014 11.05-12.30

Travelling Jakarta to Jambi

All Auditor

GA 0132

13.00-21.00

Travelling Jambi to Mekar Jaya

All Auditor

Friday, December 26, 2014 08.00-08.30

• Opening Meeting • Presentasi perihal Gapoktan

Tanjung Sari

All Auditor

Group Manager, Gapoktan & Poktan

08.30-12.00

Gapoktan Office

Document checking of related principle and criteria: Group Requirements

• Group elements • Compliance with standards • Group Manager

Group management documentation requirements

• Group management documentation structure and content

• Internal assessment system

Transparency Issues

Laws and regulations Issues • Compliance laws and regulations

Best practices and environmental Issues

• Training • Fire

NPP Issues • Fire Continuous improvement

WHY

Group Manager Gapoktan

Principle 1 Criteria 1.1, 1.2, 1.3 Principle 2 Criteria 2.1, 2.2 Principle 1 Criteria 1.1, 1.2 Principle 2 Criteria 2.1 Principle 4 Criteria 4.8 Principle 5 Criteria 5.5 Principle 7 Criteria 7.7 Principle 8 Criteria 8.1

08.30-12.00

Gapoktan Office

Document checking of related principle and criteria: Chain of Custody

Economic and Laws and regulations Issues

• Compliance laws and regulations • Legal land • Management plan

Best Practice and OHS Issues • Procedure or manual of GAP • Soil fertility • Control erosion and degradation • Maintain the quality of surface and

ground water • IPM • Agrochemicals • OHS

HF Group Manager Gapoktan

Principle 3 Criteria 3.1 s/d 3.7 Principle 2 Criteria 2.1, 2.2 Principle 3 Criteria 3.1 Principle 4 Criteria 4.1, s/d 4.7



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Environment Issues • Environmental impacts • HCV • Waste

NPP Issues • Environmental impact analysis • Soil surveys and topographic

information • Not replaced primary forest/HCV

(since Nov 2005) • Terrain and or marginal land Continuous improvement

Principle 5 Criteria 5.1, 5.2, 5.3

Principle 7 Criteria 7.1 s/d 7.4 Principle 8 Criteria 8.1

08.03-12.00

Gapoktan Office

Document checking of related principle and criteria: Laws and regulations, Social Issues

• Compliance laws and regulations • Land does not diminish without FPIC • Social impact • Communication and consultation • Complaints and grievances • Compensation • Wage • Employee • Child labor • Discrimination of employees • Sexual harassment • Fairly and transparently • Contribution to the local

development

NPP Issues • Social impact analysis • FPIC • Compensation

Continuous improvement

TR Gapoktan Principle 2 Criteria 2.1, 2.3 Principle 6 Criteria 6.1 s/d 6.11 Principle 7 Criteria 7.1, 7.5, 7.6, Principle 8 Criteria 8.1

12.00-13.00

Lunch Break

13.00-17.00

Continuing previous agenda Related Manager

Saturday, December 27, 2014 08.00-

12.00

Estate in Poktan

Site visit of related principle and criteria: Group Requirements

• Group elements • Compliance with standards • Group Manager

Group management documentation requirements

• Group management documentation structure and content

• Internal assessment system

Transparency Issues

Laws and regulations Issues • Compliance laws and regulations

Best practices and environmental Issues

WHY

Group Manager Poktan

Principle 1 Criteria 1.1, 1.2, 1.3 Principle 2 Criteria 2.1, 2.2 Principle 1 Criteria 1.1, 1.2 Principle 2 Criteria 2.1 Principle 4 Criteria 4.8



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• Training • Fire

NPP Issues • Fire Continuous improvement

Principle 5 Criteria 5.5 Principle 7 Criteria 7.7 Principle 8 Criteria 8.1

08.00-12.00

Estate in Poktan

Site visit of related principle and criteria: Chain of Custody

Economic and Laws and regulations Issues

• Compliance laws and regulations • Legal land • Management plan

Best Practice and OHS Issues • Procedure or manual of GAP • Soil fertility • Control erosion and degradation • Maintain the quality of surface and

ground water • IPM • Agrochemicals • OHS

Environment Issues • Environmental impacts • HCV • Waste

NPP Issues • Environmental impact analysis • Soil surveys and topographic

information • Not replaced primary forest/HCV

(since Nov 2005) • Terrain and or marginal land Continuous improvement

HF Group Manager Poktan

Principle 3 Criteria 3.1 s/d 3.7

Principle 2 Criteria 2.1, 2.2 Principle 3 Criteria 3.1 Principle 4 Criteria 4.1, s/d 4.7 Principle 5 Criteria 5.1, 5.2, 5.3

Principle 7 Criteria 7.1 s/d 7.4 Principle 8 Criteria 8.1

08.00-12.00

Estate in Poktan

Site visit of related principle and criteria: Laws and regulations, Social Issues

• Compliance laws and regulations • Land does not diminish without FPIC • Social impact • Communication and consultation • Complaints and grievances • Compensation • Wage • Employee • Child labor • Discrimination of employees • Sexual harassment • Fairly and transparently • Contribution to the local

development

NPP Issues • Social impact analysis • FPIC • Compensation

Continuous improvement

TR Poktan Principle 2 Criteria 2.1, 2.3 Principle 6 Criteria 6.1 s/d 6.11 Principle 7 Criteria 7.1, 7.5, 7.6, Principle 8 Criteria 8.1



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12.00-13.00

Lunch Break

13.00-17.00

Continuing previous agenda Poktan

Sunday, December 28, 2014 08.00-09.00 Gapoktan office

Closing Meeting

All Auditor

Group Manager, Head of Gapoktan and Head of Poktan

09.00-16.00

Travelling Mekar Jaya village to Bandara

All Auditor

17.35-18.55

Travelling Jambi to Jakarta All Auditor

GA 135



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Appendix 3: List of member each group

1. Mandiri Jaya Group

No Name of Member Area (Ha) Function Address Note

1 M.SUKARDI 3,68 Head MEKAR JAYA Village

2 SURYADI 2,46 Secretary MEKAR JAYA Village

3 SOLEH 2,40 Treasurer MEKAR JAYA Village

4 JALAL 1,24 Member MEKAR JAYA Village

5 SUROTO 1,91 Member MEKAR JAYA Village

6 SUSILO 2,17 Member MEKAR JAYA Village

7 JUMANI 2,09 Member MEKAR JAYA Village

8 NURYADI 2,18 Member MEKAR JAYA Village

9 HASIM 2,15 Member MEKAR JAYA Village

10 DAMIS 1 Member MEKAR JAYA Village

11 TUGIMIN 2,99 Member MEKAR JAYA Village

12 WARMI 1,08 Member MEKAR JAYA Village

13 MINTO.H 0,7 Member MEKAR JAYA Village

14 LASDI 1,72 Member MEKAR JAYA Village

15 TUJIRAN 1 Member MEKAR JAYA Village

16 SUGENG 2,61 Member MEKAR JAYA Village

17 SUJIMINARTO 1,46 Member MEKAR JAYA Village

18 NGATIMAN 1,56 Member MEKAR JAYA Village

19 ANGGA MULYADI 4,44 Member MEKAR JAYA Village

20 RUKANTO 1,08 Member MEKAR JAYA Village

21 PURNOMO 1,38 Member MEKAR JAYA Village

22 MARTONO 2,68 Member MEKAR JAYA Village

23 WAJI 1 Member MEKAR JAYA Village

24 ARLIUS 2 Member MEKAR JAYA Village

25 TRI JOKO 3,66 Member MEKAR JAYA Village

26 H.ROHMANU 0,9 Member MEKAR JAYA Village

27 JUMA’IN 1,32 Member MEKAR JAYA Village

28 WARSONO 2,74 Member MEKAR JAYA Village

29 KORIP/KARET 1,5 Member MEKAR JAYA Village Rubber so not involve certification

30 SUNARTO 1,84 Member MEKAR JAYA Village

31 SUMANI/KARET 2 Member MEKAR JAYA Village Rubber so not involve certification

32 NAPIAH/JUPRI 0,62 Member MEKAR JAYA Village

33 WARSITO 1,35 Member MEKAR JAYA Village

34 SULASTRI 1,45 Member MEKAR JAYA Village

35 ISRUDIN/MARYADI 2,51 Member MEKAR JAYA Village

TOTAL 66,87

33 -3,5/SERTIFIKASI 63,37



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2. Sumber Hasil Group


1 IMAM GOZALI 1,3 Head MEKAR JAYA Village

2 KORIP 1,5 Secretary MEKAR JAYA Village

3 WITONO 3,3 Treasurer MEKAR JAYA Village

4 MANTO 1 Member MEKAR JAYA Village

5 WAHYUDI 1 Member MEKAR JAYA Village

6 SUGENG 2 Member MEKAR JAYA Village

7 SUTARJO 2 Member MEKAR JAYA Village

8 IMRON ROJALI 2,5 Member MEKAR JAYA Village

9 NUR WAHID 1,4 Member MEKAR JAYA Village

10 PANIDI 2 Member MEKAR JAYA Village

11 SAKAT 1 Member MEKAR JAYA Village

12 YUSRIZAL 2,4 Member MEKAR JAYA Village

13 MARIYATIN 0,5 Member MEKAR JAYA Village

14 SUPRAPTO 1,5 Member MEKAR JAYA Village

15 GIANTO 1,3 Member MEKAR JAYA Village

16 SUDARNO 0,8 Member MEKAR JAYA Village

17 WAGIMAN 2,7 Member MEKAR JAYA Village

18 SOJO/KARET 1 Member MEKAR JAYA Village Rubber so not involve certification

19 BURLIAN KAMAL 1,7 Member MEKAR JAYA Village

20 SUKADI 1 Member MEKAR JAYA Village

21 M.SOLIKIN 2 Member MEKAR JAYA Village

22 PARJI 2,4 Member MEKAR JAYA Village

23 PONIJAN 1 Member MEKAR JAYA Village

24WARTO

DIHARJO/KARET1 Member MEKAR JAYA Village

Rubber so not involve certification

25 TUKIRAN/KARET 2 Member MEKAR JAYA Village Rubber so not involve certification

26 ISWANTO/KARET 1 Member MEKAR JAYA Village Rubber so not involve certification

27 SUKINI 0,5 Member MEKAR JAYA Village

28 PONIMAN/KARET 1 Member MEKAR JAYA Village Rubber so not involve certification

29 WAWAT HANDOYO 1,5 Member MEKAR JAYA Village

30 M. SARAGIH 2,25 Member MEKAR JAYA Village

TOTAL 46,55

25 -6/SERTIFIKASI 40,55



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3. Sido Maju Group


1 SUNARTO 1,5 Head MEKAR JAYA Vil lage

2 DEDI 1 Secretary MEKAR JAYA Vil lage

3 H.SUPONO 1,87 Treasurer MEKAR JAYA Vil lage

4 JUNAIDI 2 Member MEKAR JAYA Vil lage

5 SAPUAN 3 Member MEKAR JAYA Vil lage

6 SARPAN 2 Member MEKAR JAYA Vil lage

7 SURAJI 1 Member MEKAR JAYA Vil lage

8 AHMAD SAFA’AT 0,91 Member MEKAR JAYA Vil lage

9 AGUSTIYONO 0,75 Member MEKAR JAYA Vil lage

10 DJOEWARSIH 1,25 Member MEKAR JAYA Vil lage

11 JASIAH 2,2 Member MEKAR JAYA Vil lage

12 KUSNO 2,57 Member MEKAR JAYA Vil lage

13 MARJI 7,12 Member MEKAR JAYA Vil lage

14 WAKIJAN 3 Member MEKAR JAYA Vil lage

15 MAT ALI 1 Member MEKAR JAYA Vil lage

16 WAGIMAN 1,32 Member MEKAR JAYA Vil lage

17 SRI WIDODO 1,97 Member MEKAR JAYA Vil lage

18 SUWARNO 1,5 Member MEKAR JAYA Vil lage

19 SUPRIYANTO 1,21 Member MEKAR JAYA Vil lage

20 TRI WAHYUNI 1,1 Member MEKAR JAYA Vil lage

21 AMIR 1 Member MEKAR JAYA Vil lage

22 SUDARNO 3,25 Member MEKAR JAYA Vil lage

23 SUKADI 1 Member MEKAR JAYA Vil lage

24 GIMIN 1,62 Member MEKAR JAYA Vil lage

25 BONIRAN 2,3 Member MEKAR JAYA Vil lage

26 NAFSIAH 1 Member MEKAR JAYA Vil lage

27 SURATNO 1,71 Member MEKAR JAYA Vil lage

28 H.ROHMANU 6,41 Member MEKAR JAYA Vil lage

29 FATKUROJI 2,4 Member MEKAR JAYA Vil lage

30 SUSILO 0,77 Member MEKAR JAYA Vil lage

31 SURYONO 0,86 Member MEKAR JAYA Vil lage

32 MANTO 2,31 Member MEKAR JAYA Vil lage

33 ARIFIN 0,78 Member MEKAR JAYA Vil lage

34 WENI SUSANTO 1,2 Member MEKAR JAYA Vil lage

35 SUYATNO 2,36 Member MEKAR JAYA Vil lage

36 PURNOMO 1,5 Member MEKAR JAYA Vil lage

37 UMAR SUTRISNO 1 Member MEKAR JAYA Vil lage

38 WAWAN 1 Member MEKAR JAYA Vil lage

Total SERTIFIKASI 68,60



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4. Sido Makmur Group


1 MIFTAKIRUN 1,91 Head MEKAR JAYA Vil lage

2 Y.SAGIMIN 1,54 Secretary MEKAR JAYA Vil lage

3 ABU JALAL 1,71 Treasurer MEKAR JAYA Vil lage

4 JALAL SAYUTI 2,07 Member MEKAR JAYA Vil lage

5 A.KARIM 1,53 Member MEKAR JAYA Vil lage

6 SUHER 1,48 Member MEKAR JAYA Vil lage

7 SISWADI 1,40 Member MEKAR JAYA Vil lage

8 MUGIANTO 1,95 Member MEKAR JAYA Vil lage

9 PAIDIN 1,20 Member MEKAR JAYA Vil lage

10 PONIDI 1,97 Member MEKAR JAYA Vil lage

11 KARNI 0,66 Member MEKAR JAYA Vil lage

12 ANDI KAHAR 1,70 Member MEKAR JAYA Vil lage

13 SUYATNO 1,75 Member MEKAR JAYA Vil lage

14 WAHYONO 0,77 Member MEKAR JAYA Vil lage

15 DARYADI 0,63 Member MEKAR JAYA Vil lage

16 SUDJI 1,05 Member MEKAR JAYA Vil lagenot interest with

certification

17 M.YUSUF EFENDI 0,76 Member MEKAR JAYA Vil lage

18 MUHAJIRIN 0,70 Member MEKAR JAYA Vil lage

19 PAIMIN 1,19 Member MEKAR JAYA Vil lage

20 SURAJI 1,28 Member MEKAR JAYA Vil lage

21 FATKHUR ROZI 1,34 Member MEKAR JAYA Vil lage

22 WARSONO 1,73 Member MEKAR JAYA Vil lage

23 SAPUAN 1,87 Member MEKAR JAYA Vil lage

24 LASNO 2,02 Member MEKAR JAYA Vil lage

25 SUBROTO 2,29 Member MEKAR JAYA Vil lage

26 ROKHIMIN 1,69 Member MEKAR JAYA Vil lage

27 SUWANDI 1,14 Member MEKAR JAYA Vil lage

28 ARIF 1,30 Member MEKAR JAYA Vil lage

29 RIBUT WIDODO 0,28 Member MEKAR JAYA Vil lage

30 HARTONO 1,23 Member MEKAR JAYA Vil lage

31 ROZIKIN 0,67 Member MEKAR JAYA Vil lage

32 SOLEKAN 1,02 Member MEKAR JAYA Vil lage

33 H.ROHMANU 1,36 Member MEKAR JAYA Vil lage

Total SERTIFIKASI 45,19

32 (-1.05 HA) / 1 /SERTIFIKASI 44,19



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5. Sido Mulyo Group No Name of Member Area (Ha) Function Address Note

1 DARSONO 4,4 Head MEKAR JAYA Vil lage

2 WARSITO 2,04 Secretary MEKAR JAYA Vil lage

3 JAZILUN NUJUM 1 Treasurer MEKAR JAYA Vil lage

4 A.SAPAAT 0,92 Member MEKAR JAYA Vil lage

5 A.MUSBIHIN 1,29 Member MEKAR JAYA Vil lage

6 ARIPIN 0,98 Member MEKAR JAYA Vil lage

7 BUSARI 1,44 Member MEKAR JAYA Vil lage

8 DARMANTO 1 Member MEKAR JAYA Vil lage

9 ENDRO SUSANTO 1,75 Member MEKAR JAYA Vil lage

10 ESTANTO 2,95 Member MEKAR JAYA Vil lage

11 FATKHAN 1 Member MEKAR JAYA Vil lage

12 H.MUNASIM 2,84 Member MEKAR JAYA Vil lage

13 ISMANTO 0,49 Member MEKAR JAYA Vil lage

14 ABU JALAL 6,19 Member MEKAR JAYA Vil lage

15 JUNAIDI 4,83 Member MEKAR JAYA Vil lage

16 M. SUKARDI 1,54 Member MEKAR JAYA Vil lage

17 KUAT SANTOSO 0,6 Member MEKAR JAYA Vil lage

18 MARJI 4,33 Member MEKAR JAYA Vil lage

19 MAT ALI 1 Member MEKAR JAYA Vil lage

20 MISNADI 0,64 Member MEKAR JAYA Vil lage

21 MUSLIM 1,75 Member MEKAR JAYA Vil lage

22 NARDI.S 4,05 Member MEKAR JAYA Vil lage Not interest with certification

23 NAROH 2,08 Member MEKAR JAYA Vil lage

24 NURIL.A 1 Member MEKAR JAYA Vil lage

25 PADMO 1,77 Member MEKAR JAYA Vil lage

26 PURWANTI 1,33 Member MEKAR JAYA Vil lage

27 SYAFUAN 1,1 Member MEKAR JAYA Vil lage

28 SAMINO/KARET 3,02 Member MEKAR JAYA Vil lage Rubber so not involve certification

29 SAMSURI 1,69 Member MEKAR JAYA Vil lage

30 SARBI 3,26 Member MEKAR JAYA Vil lage

31 SARMIN 1,42 Member MEKAR JAYA Vil lage

32 SOLIKIN 1,8 Member MEKAR JAYA Vil lage

33 SRI WIDODO 1,5 Member MEKAR JAYA Vil lage

34 SUDARNO 5,19 Member MEKAR JAYA Vil lage

35 SUKARMIN 2,93 Member MEKAR JAYA Vil lage

36 SUKARNI 0,42 Member MEKAR JAYA Vil lage

37 KASTO TUKIMIN 2,83 Member MEKAR JAYA Vil lage

38 SUMARDI 1,08 Member MEKAR JAYA Vil lage

39 SUNARTO 0,82 Member MEKAR JAYA Vil lage

40 SUNOKO 0,87 Member MEKAR JAYA Vil lage

41 SUPARDI 1,09 Member MEKAR JAYA Vil lage

42 SUPARNO 0,88 Member MEKAR JAYA Vil lage Not interest with certification

43 SURAJI 0,55 Member MEKAR JAYA Vil lage

44 SUTINAM 3,05 Member MEKAR JAYA Vil lage

45 SARBANI 1,11 Member MEKAR JAYA Vil lage

46 SUTARTO 0,8 Member MEKAR JAYA Vil lage

47 SAIFUDIN 1 Member MEKAR JAYA Vil lage Not interest with certification

48 TUJIRAN 2,39 Member MEKAR JAYA Vil lage

49 ULIN NUKMAN 1,5 Member MEKAR JAYA Vil lage

50 WAHYONO 2,04 Member MEKAR JAYA Vil lage

51 WAKINO 1,53 Member MEKAR JAYA Vil lage

52 WARSONO/KARET 3,28 Member MEKAR JAYA Vil lage Rubber so not involve certification

53 YOTO SENTONO 2,1 Member MEKAR JAYA Vil lage

54 YUSUF.H 1 Member MEKAR JAYA Vil lage

55 PURWOKO 1 Member MEKAR JAYA Vil lage

56 SHOLEKAN 0,26 Member MEKAR JAYA Vil lage

57 SAFUAN DURI 0,5 Member MEKAR JAYA Vil lage

58 EDI SLAMET 1,18 Member MEKAR JAYA Vil lage

59 TA’AT UJIANTO 0,31 Member MEKAR JAYA Vil lage

60 RIBUT WIDODO 0,27 Member MEKAR JAYA Vil lage

61 IBNU ALROSYID 1,19 Member MEKAR JAYA Vil lage

62 H.ROHMANU 1 Member MEKAR JAYA Vil lage

63 BASARUDIN 1,39 Member MEKAR JAYA Vil lage

TOTAL LUAS 110,56 HA

58 (-12,23)/5/SERTIFIKASI 98,33 HA



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6. Kemang Jaya Group


1

ENDRO SUSANTO 1,3 Head MEKAR JAYA Village

a part of areas is rubber

plantation is 1 ha so not

involve certification

2 KAREM 0,3 Secretary MEKAR JAYA Village

3 SUTARTO 1,5 Treasurer MEKAR JAYA Village

4 SUPARNO 0,5 Member MEKAR JAYA Village

5 PARSO 1 Member MEKAR JAYA Village

6 MARINO 0,25 Member MEKAR JAYA Village

7 HARTINO 3,3 Member MEKAR JAYA Village

a part of areas is rubber

plantation is 1 ha so not

involve certification

8 WIYONO 1,3 Member MEKAR JAYA Village

9 SUTINO 1 Member MEKAR JAYA Village

10 MADRUSMAN 1 Member MEKAR JAYA Village

11 NURYADI 0,25 Member MEKAR JAYA Village

12 WARDIYO 2 Member MEKAR JAYA Village

13 SUNARTO 0,6 Member MEKAR JAYA Village

14 JAZILUN NUJUM 1 Member MEKAR JAYA Village

15 SUTINAM 0,5 Member MEKAR JAYA Village

16 BUSARI 1 Member MEKAR JAYA Village

17 FADHOLI 2 Member MEKAR JAYA Village

18 A.MUGIYANTO 3,5 Member MEKAR JAYA Village

19 WAGIMAN 1 Member MEKAR JAYA Village

20 ROKHIMIN 1,3 Member MEKAR JAYA Village

21 YANTO 2 Member MEKAR JAYA Village

22 BURLIAN KAMAL 1,5 Member MEKAR JAYA Village

23 TA’AT 1,5 Member MEKAR JAYA Village

24 KAMILUDIN 0,25 Member MEKAR JAYA Village

25 UDI SANTOSO 0,8 Member MEKAR JAYA Village

26 SRI WIDODO 0,35 Member MEKAR JAYA Village

27 M.SOLIKIN 1,98 Member MEKAR JAYA Village

28 SUSANTO 0,6 Member MEKAR JAYA Village

TOTAL 33,58 HA

28 (-2 ha)/LUAS SERTIFIKASI 31,58 HA



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Appendix 4: List of Abbreviations

FFB HCV IPM Gapoktan OHS SHM SKT SPPL

Fresh Fruit Bunches High Conservation Value Integrated Pest Management Gabungan Kelompok Tani (Independent Smallholder Group) Occupation, Health and Safety Sertifikat Hak Milik (certificate of ownership) Surat Keterangan Tanah (land information letter) Surat Pernyataan Pengelolaan Lingkungan (Environmental Impact Statement Letter)

Appendix 5: List of Stakeholders Interviewed and Co ntacted

No. Name of Stakeholder

Institution/Position Remarks

1. Jalal Sayuti Head of Gapoktan 2. Martono Farmer 3. Isrudin Farmer 4. Abu Jalal Farmer & Business Unit 5. Waji Farmer 6. Sunarto Farmer 7. Sobirin /Jumani Farmer 8. Bp Jupri / Ibu Napiah Farmer 9. Sainun Farmer

10. Marsono Farmer 11. Mulyono/Angga Farmer 12. Mulyadi Farmer 13. Suher Farmer 14. Damis Farmer 15. Sarlan, Ari, Arif, Edi T,

Dedi Harvesting

16. Umar Farmer 17. Wawan Sy Farmer 18. Ta’at Farmer 19. Padholi Farmer

Appendix 6: Positive Observations & Observations/Op portunities for Improvement

No. Conditio n Crit eria Positive observation

1. High motivation for continuous improvement

Observation/opportunities for improvement

1. Gapoktan has internal audit procedure but procedure should be include how to manage a follow-up from an audit results

Group certification 2.2.2

2. The village development Contribution should be follows with notes that Gapoktan has consult with the village government regarding the planning, monitoring and evaluation of the fund mangement

6.11

3. Motorcycle in risk matrix must be covering the hazard of motorcycle accident such as fall when riding and fall into drain/river when FFB transporting to FFB collection point activities

4.7.1 Minor

4. Gapoktan develop of sign board or name board on each estate which involve of certification

5. Gapoktan develop of member number for each member

6. • Write of FFB production on pocket note should be separate between FFB production from certified and non-certified areas.

Yayasan Setara



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