RSPO CERTIFICATION ASSESSMENT PUBLIC … · RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT ......

PT. TÜV NORD Indonesia

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RSPO CERTIFICATION ASSESSMENT

PUBLIC SUMMARY REPORT

PT. TÜVNORD Indonesia

System Certification Management

Has assessed

PT. INTI INDOSAWIT SUBUR

Muara Bulian Mill and Supply Base

for Compliance to RSPO Principles and Criteria

for Sustainable Palm Oil Production

Date of assessment:

October 11-14, 2011

Report Number: RSPO-PC-01-1210

Head Office

System Certification Management

Perkantoran Hijau Arkadia Tower F,

7th Fl Suite 706

Jl. Let. Jend. TB Simatupang Kav. 88

Jakarta 12520 – Indonesia

Tel : +6221 7883 7338

Fax : +6221 7883 7336

Laboratory Division

Jl. Jababeka XVII E Blok U No. 27B

Kawasan Industri Jababeka I Cikarang Bekasi 17530 – Indonesia

Tel: +6221 898 403 18 – 19

Fax : +6221 898 403 20

Branch Office

Intiland Tower 11th

Fl, Suite 1E

Jl. Panglima Sudirman 101-103

Surabaya 60271 - Indonesia

Tel : +6231 53 444 54

Fax : +6231 53 4 44 82

President Director:

Mr. Robert Napitupulu

Email: [email protected]

Website: www.tuv-nord.com or www.tuev-nord.de

mailto:[email protected]

http://www.tuv-nord.com/

http://www.tuev-nord.de/


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List of Contents

1 Scope of The Certification Assessment ........................................................................................................... 4

1.1 Type of Assessment (Mill, Estate and Mill, etc.) .................................................................................. 4

1.2 Location, mill, and or hectare statement ............................................................................................. 4

1.3 Description of Supply Base (Fruit Sources) ........................................................................................ 4

1.3.1 Description of Mill(s) .............................................................................................................. 4

1.3.2 Description of Plantation (Fruit Sources) ................................................................................ 4

1.4 Date of Plantings and Cycle ............................................................................................................... 6

1.4.1 Age Profile of Palms - Planted Area (Ha) ............................................................................... 6

1.4.2 Time-bound Plan (for other management units and justifications). ......................................... 6

1.5 Other Certifications Held (ISO, etc.) ................................................................................................... 9

1.6 Organizational Information/Contact Person ...................................................................................... 10

1.7 Tonnages Certified ........................................................................................................................... 10

2 Assessment Process .................................................................................................................................... 10

2.1 Assessment Methodology (Program, Site Visits) .............................................................................. 10

2.1.1 General Overview ................................................................................................................ 10

2.1.2 Assessment Agenda ............................................................................................................ 11

2.2 Date of Next Surveillance Visit ......................................................................................................... 13

2.3 Lead Assessor/Assessment Team ................................................................................................... 13

2.3.1 Lead Assessor: Anita Masduki ............................................................................................. 13

2.3.2 Assessment Team Members ............................................................................................... 14

2.4 Certification Body ............................................................................................................................. 15

2.5 Outline of How Stakeholder Consultation Was Managed .................................................................. 15

2.5.1 Summary ............................................................................................................................. 15

2.5.2 List of Contacted Stakeholders ............................................................................................ 16

3 Assessment Findings .................................................................................................................................... 18

3.1 Summary of the Findings by Criteria ................................................................................................. 18

3.2 Identified Non Conformances and Noteworthy Positive Components ............................................... 31

3.2.1 Detail of Non Conformity ...................................................................................................... 31

3.2.2 Resume of Audit Results ..................................................................................................... 35

3.3 Issues Raised by Stakeholders ........................................................................................................ 35

4 Certified Organization’s Acknowledgement of Internal Responsibility ............................................................ 41

4.1 Formal Sign-off of Assessment Findings .......................................................................................... 41


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List of Figures

Figure 1-1 Geographical Map of Tungkal Ulu Mill and Plantation ............................................................................................................... 5

List of Tables

Table 2-1 Audit Schedule................................................................................................................................................................................. 11

Table 2-2 List of Stakeholder surrounding Muara Bulian Plantation ................................................................................................................. 16

Table 3-1 Summary of Findings by Criteria ...................................................................................................................................................... 18

Table 3-2 Resume of Audit Results.................................................................................................................................................................. 35

Attachment

Attachment A List of Abbreviation .................................................................................................................................................................... 40


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1 Scope of The Certification Assessment

1.1 Type of Assessment (Mill, Estate and Mill, etc.)

The assessment to the Palm oil mill and plantation owned by PT. Inti Indosawit Subur, located at Singoan / Bukit

Sari / Bulian Jaya Village, Muara Bulian / Pemayung District, Batang Hari Regency, Jambi Province, Sumatera-

Indonesia per National Interpretation of RSPO Principle and Criteria for Sustainable Palm Oil Production -

Republic of Indonesia(RSPO Indonesian National International Working Group <INA-NIWG> ver. May 2008

Standard).

1.2 Location, mill, and or hectare statement

Name of Mill and Plantation Location Coordinates

Muara Bulian Mill and Plantation

Singoan / Bukit Sari / Bulian Jaya Village, Muara Bulian / Pemayung District, Batang Hari Regency, Jambi Province

01034

’ 29

” N – 01

0 35

’ 49

” N

1030

10’55

” E – 103

013

’38

” E

See Figure 1-1 below.

1.3 Description of Supply Base (Fruit Sources)

1.3.1 Description of Mill(s)

Name of Mills Annual Output (ton) Mill Capacity

(ton/hour) CPO PK

Muara Bulian Mill 51,094 12,322 60

This data were based on budgeted production in 2012. To produce this amount of CPO, the mill received

FFB from Muara Bulian Plantation, Smallholders (Plasma), and out-growers.

1.3.2 Description of Plantation (Fruit Sources)

See the description of supply base (fruit sources) as below:

Name of Plantation Area (Ha) FFB Production

(ton/year) Total Planted

Muara Bulian Plantation 1,856 1,772 44,469

Plasma 4,710 4,710 108,973

Out-grower - - 35,205

Total FFB supplied to the mill 226,100

Above data were based on budgeted production in 2012


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Figure 1-1 Geographical Map of Muara Bulian Mill and Plantation

Map of Muara Bulian Mill and Plantation


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1.4 Date of Plantings and Cycle

1.4.1 Age Profile of Palms - Planted Area (Ha)

Age (Years) Planted Area (Ha)

21 – 30 -

11 – 20 1,772

0 - 10 -

TOTAL 1,772

1.4.2 Time-bound Plan (for other management units and justifications).

Below is the estimated time-bound for certification of other plantationswithin the PT. INTI INDOSAWIT

SUBUR (IIS). The company will use the experience obtained in the main assessment to ensure that the

other management units conform to the RSPO principles and criteria.Progress of this plan of time-bound

certification will be verified and reported in subsequent surveillance visits.

a. Time-bound plan for mill(s)

Name of Mill Address

Production in 2012(ton/y) Certified

Time-bound for

certification CPO PK

Buatan I Delik & PangkalanKerinciVillage, Bunut Langgam District, Pelalawan Regency, Riau

72,448 18,252 16 September 2010

Buatan II Delik & PangkalanKerinciVillage, Bunut Langgam District, Pelalawan Regency, Riau

72,609 18,618 16 September 2010

Ukui I Ukui Village, Ukui District, Pelalawan Regency, Riau

76,382 18,278 1 March 2011

Ukui II Ukui Village, Ukui District, Pelalawan Regency, Riau

85,505 20,447 1 March 2011

Tungkal Ulu Pulau Pauh/ Penyabungan/ MerlungVillage, Tungkal Ulu District, Tanjung Jabung Regency, Jambi

64,262 15,478 2012

Muara Bulian Singoan/ Bukit Sari/ BulianJaya Village, Muara Bulian/ Pemayung District, Batang Hari Regency, Jambi

51,094 12,322 2012

Topaz Petapahan Village, Tapung District, Kampar Regency, Riau

49,600 13,227 2013

Taman Raja Lubuk Bernai/ Kampung Baru/ Pelabuhan Dagang/ Pematang Pauh Vilage, Tungkal Ulu District, Tanjung Jabung Regency, Jambi

76,254 18,841 2013

Segati Langkan/ Penarikan/ Tambak/ SotolVillage, Langgam District, Pelalawan Regency, Riau

78,936 19,490 2014


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Tanah Datar Tanah Datar Petatal Village, Talawi District, Asahan Regency, North Sumatera

28,737 8,385 2015

Aek Nabara S1-S3 / Sukadame Village, Bilah Hulu / Kota Pinang District, Labuhan Batu Regency, North Sumatra

43,534 11,145 2015

Teluk Panjie Teluk Panjie Village, Kampung Rakyat District, Labuhan Batu Regency, North Sumatra

37,325 9,872 2015

Peranap Simelinyang/ Pauh Ranap/ Sengkilo Village, Peranap District, Indragiri Hulu Regency, Riau

52,287 12,858 2016

Bungo Tebo Tuo Sumai / Sungai Rambai Village, PWK Sumai / Tebo Ulu District, Bungo Tebo Regency, Jambi

36,986 9,090 2016

Tanjung Selamat Kampung Padang Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra

43,580 12,372 2017

Gunung Melayu I RahuningVillage, Bandar Pulau District, Asahan Regency, North Sumatra

34,200 10,080 2017

Gunung Melayu II GontingMahalaVillage, Bandar Pulau District, Asahan Regency, North Sumatra

36,557 7,720 2017

Negri Lama I Negri Lama Seberang Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra

34,084 9,089 2018

Negri Lama II Negri Lama Seberang Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra

29,288 9,323 2018

b. Time-bound plan for plantation(s)

Name of Plantation

Address

Area (Ha) Budgeted FFB

Production in 2012

(ton/year)

Time-bound for

certification Total Planted

Buatan Delik & Pangkalan Kerinci Village, Bunut Langgam District, Pelalawan Regency, Riau

5,781 5,549 142,914 Certified on

16 Sept 2010

Ukui & Soga Ukui Village, Ukui District, Pelalawan Regency, Riau

9,731 9,411 250,899 Certified on

1 March 2011

Buatan (Plasma) Kerinci Kanan, Pangkalan Kerinci, Dayun Village, Siak & Pelalawan Regency, Riau

10,946 10,946 268,061 Main audit: 5-9 Dec 2011

Ukui (Plasma) Ukui & Lubuk Batu Jaya District, Pelalawan & Inhu Regency, Riau

13,536 13,536 312,199 Main audit: 19-24 Dec 2011

Buatan (KKPA) Kerinci Kanan, Pangkalan Kerinci, Dayun District, Siak & Pelalawan Regency, Riau

1,500 1,500 27,989 2012


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Tungkal Ulu

(Plasma)

Renah Mendalo, Merlung, Muara Papalik District, Tanjung Jabung Barat Regency, Jambi

10,277 10,277 94,295 2012

Muara Bulian (Plasma)

Maro Sebo Ilir District, Batanghari Regency, Jambi

4,710 4,710 108,973 2012

Muara Bulian

(KKPA)

Maro Sebo Ilir District, Batanghari Regency, Jambi

2,428 2,248 37,452 2012

Topaz & Seed Garden

Petapahan Village, Tapung District, Kampar Regency, Riau

4,354 4,274 125,493 2013

Taman Raja & Badang

Lubuk Bernai / Kampung Baru / Pelabuhan Dagang / Pematang Pauh Village, Tungkal Ulu District, Tanjung Jabung Regency, Jambi

9,077 8,847 212,559 2013

Ukui (KKPA) Ukui & Lubuk Batu Jaya District, Pelalawan & Inhu Regency, Riau

1,660 1,660 37,871 2014

Segati Langkan / Penarikan / Tambak / Sotol Village, Langgam District, Pelalawan Regency, Riau

6,485 3,867 86,749 2014

Penarikan & Gondai

Pangkalan Sarik / Baru Village, Langgam / Siak Hulu District, Pelalawan / Kampar Regency, Riau

7,666 6,145 71,541 2014

Penarikan (KKPA) Pangkalan Sarik / Baru Village, Langgam / Siak Hulu District, Pelalawan / Kampar Regency, Riau

73 73 31,471 2014

Gunung Sahilan (KKPA)

Gunung Sahilan Village, Lipat Kain District, Pelalawan Regency, Riau

4,322 4,216 114,971 2014

Bahilang Bahilang Village, Tebing Tinggi District, Serdang Bedagai Regency, North Sumatra

1,019 947 28,764 2015

Tanah Datar Tanah Datar Petatal Village, Talawi District, Asahan Regency, North Sumatra

1,062 1,006 23,469 2015

Aek Nabara S1-S3 / Sukadame Village, Bilah Hulu / Kota Pinang District, Labuhan Batu Regency, North Sumatra

4,830 4,371 120,288 2015

Teluk Panjie Teluk Panjie Village, Kampung Rakyat District, Labuhan Batu Regency, North Sumatra

4,656 3,943 109,729 2015

Peranap Simelinyang / Pauh Ranap / Sengkilo Village, Peranap District, Indragiri Hulu Regency, Riau

5,215 3,660 97,674 2016

Bungo Tebo Tuo Sumai / Sungai Rambai Village, PWK Sumai / Tebo Ulu District, Bungo Tebo Regency, Jambi

2,652 2,551 49,681 2016

Peranap (Plasma) Simelinyang / Pauh Ranap / 5,142 5,142 100,442 2016


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Sengkilo Village, Peranap District, Indragiri Hulu Regency, Riau

Bungo Tebo (Plasma)

Tuo Sumai / Sungai Rambai Village, PWK Sumai / Tebo Ulu District, Bungo Tebo Regency, Jambi

5,914 5,914 90,810 2016

Tanjung Selamat Kampung Padang Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra

3,885 3,854 75,906 2017

Pangkatan Sennah Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra

4,336 3,716 93,079 2017

Sentral & Batu Anam

Gonting Mahala Village, Bandar Pulau District, Asahan Regency, North Sumatra

10,414 8,312 77,998 2017

Pulau Maria Rahuning Village, Bandar Pulau District, Asahan Regency, North Sumatra

2,302 2,057 43,033 2017

Negri Lama Negri Lama Seberang Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra

12,011 11,736 98,880 2018

Aek Kuo Aek Korsik Village, Aek Natas District, Labuhan Batu Regency, North Sumatra

2,588 2,542 63,423 2018

1.5 Other Certifications Held (ISO, etc.)

Certification Name Certification Num. Date of Certification Valid until

ISO 9001:2008 for Production and Distribution of Palm Seeds

16.100.0281 24.09.2010 23.09.2013

ISO 14001:2004 for Oil Palm Mill and Plantation

IDO05 / 65250 10.06.2011 10.06.2014

ISCC System for Buatan I Mill DE-B-BLE-BM-10-100-20110494

06.10.2011 06.10.2012

ISCC System for Buatan II Mill DE-B-BLE-BM-10-100-20110495

06.10.2011 06.10.2012

ISCC System for Ukui I Mill DE-B-BLE-BM-10-100-20110496

06.10.2011 06.10.2012

ISCC System for Ukui II Mill DE-B-BLE-BM-10-100-20110497

06.10.2011 06.10.2012

ISCC System for Muara Bulian Mill DE-B-BLE-BM-10-100-20120560

15.02.2012 15.02.2013

ISCC System for Tungkal Ulu Mill DE-B-BLE-BM-10-100-20120561

15.02.2012 15.02.2013

RSPO Certification for Buatan I & II Mill, Pelalawan, Riau

CU-RSPO-813510 16.09.2010 15.09.2015

RSPO Certification for Ukui I and II Mill and Supply Base, Pelalawan, Riau

SPO 565807 01.03.2011 29.02.2016

Company Performance Rating Program in Environmental Management for 2009-2010

Rating: Blue Year 2009 Year 2010


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1.6 Organizational Information/Contact Person

Organizational Information

Principle Contact Person Ms. Asrini Subrata

Position Stakeholder Relations Manager

Business Address PT. Inti Indosawit Subur

Jl. MH Thamrin No. 31, Indonesia.

Group Name (If applicable) Asian Agri

Office Telephone Number +62 21 230 1119

Mobile Telephone Number -

Fax +62 21 230 1120

E-mail address [email protected]

Web site www.asianagri.com

1.7 Tonnages Certified

Tonnages Certified

Name of Mill Muara Bulian Mill

Location Singoan / Bukit Sari / Bulian Jaya Village, Muara Bulian / Pemayung District, Batang Hari Regency, Jambi Province, Sumatera-Indonesia

CPO Production (ton) 10,450

PK Production (ton) 2,424

2 Assessment Process

2.1 Assessment Methodology (Program, Site Visits)

2.1.1 General Overview

The assessment was carried out by referring to TÜV NORD Indonesia Certification Procedure, PRSPO-

TNI-01 Rev. 0, dated 01.06.2008. This procedure described the assessment processes, which consist of

several stages, such as contract review and offer preparation, audit preparation, certification audit,

certificate issuance, and surveillance audit. Audit preparation included off site review of client document’s

such as RSPO manual, procedures, and working instructions. This preparation was conducted on July 4-

6, 2011. Based on this review the auditors were able to perform the audit schedule for pre audit. Pre audit

was required to assess the client’s readiness toward the certification audit. This includes review of

management system documentation and implementation on site.Pre audit was performed July 18-20,

2011. Based on findings and recommendation from pre audit, auditor team will ask client to prepare

mailto:[email protected]

http://www.asianagri.com/


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correction and its evidences, and when it is confirmed the auditor will issue notification for certification

audit to RSPO Executive Board to be published at RSPO website. The certification audit was conducted

on October 11-14, 2011 for both Muara Bulian mill and plantations.The auditor team carried out field and

office assessments of compliance for all the RSPO principles and criteria. Common systems were

identified and specific evidence was recorded. Interview with managers and workers were conducted both

for plantation and mill.

2.1.2 Assessment Agenda

Main assessment or certification audit was performed on October 11-14, 2011 and was led by Mrs. Anita as

lead auditor and was assisted by Mr.Haryadi as agrocultur expert and Mr. Ujang Sehabuddin as social

expert. The audit schedule is as below.

Table 2-1 Audit Schedule

Date Location P&C Main Activities

Day. 1

11.10.2011

Muara Bulian

Mill Office

Opening meeting.

Introduction by team leader.

Introduction of team members and assessment agenda.

Presentation by Group Manager (Plantation and Mill).

P 1.1, 1.2 ,

P 2.1, 2.2, 2.3

P 3

Full document review:

Centralized Documentation Audit for both mills and plantation.

Completion of the checklist. Review and documentation of evidence. All aspects of RSPO P&C’s.

All the general documents and legal compliances verification.

Interview and discussion with operational managers and executives. Legal department representative, training manager,

Verification and discussion on partial certification issues.

Day. 2

12.10.2011

Muara Bulian

Plantation

P 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8,

P 5.1, 5.2, 5.3, 5.4, 5.5, 5.6

P 6.2, 6.3, 6.4, 6.5, 6.6, 6.8, 6.9, 6.10, 6.11

Field Operations Inspections

Herbicide application program.

Harvesting sites and efficiency, fertilizing operations, SOP’s.

Soil maps, land preparation, ground cover, IPM, Soil erosion.

First aiders and boxes, field observations of all operations.

Worker interviews.

OSH. Sexual, religious, racial harassment .Pay and contracts. Child labor. First aid. Awareness.

Road maintenance. Run off.

POME and EFB application – site verification and records

HCV’s

Identification. Management plans. Environmental

Impact Assessments. Implementation.


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Riparian zones.

Width. Current and future management. Non

maintenance regimes.

Local communities

Contributions made. Employment opportunities. Social impacts. Complaints procedures.

Water management. Water courses. Water monitoring

Social Impact Assessments

New planting. Zero burn

Day. 2

12.10.2011

Muara BulianMill

P 4.1, 4.4, 4.6. 4.7, 4.8

P 5.3, 5.4, 5.6

P 6.5, 6.6, 6.7, 6.9, 6.10

Mill Operation

Mill SOP’s. Safe working environment. Gen sets. Walk ways. Signs. EFB. POME treatment. Emissions. Mass balance. Diesel tanks. PPE. Fire extinguishers. First aiders and boxes. Fuel and water usage.

Workshops.

Oil traps. Safe working environment. PPE. Diesel tanks.

OSH Committee.

Training. Management structure. First aiders.

Worker interviews.

OSH. Sexual, religious, racial harassment. Pay and contracts.

Chemical stores.

Storage. MSDS leaflets. Herbicide mixing areas. PPE. Ventilation. Security.

Waste Treatment

Interviews with householders. Inspection of water discharge points. Water improvement plans. Waste disposal

Energy Eficiency.

Energy use and use of renewable energy.

Day. 3

13.10.2011

Muara BulianOffice

P 1.1, 1.2 ,

P 2.1, 2.2, 2.3

P 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.8, 6.9, 6.10, 6.11

Stakeholder Meeting

Discussion with stakeholder to have feedback from them and discuss the result with management representative at closing meeting. Issues to be raised were:

Contributions made by company, employment opportunities, social Impact, complaints and grievance, land conflict.

Day. 4

14.10.2011

Assessor Team

Muara BulianOffice Closing Meeting

Chaired by the assessment team leader.

Presentation of findings by the assessment team.

Questions and answers.

Final summary by team leader.


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2.2 Date of Next Surveillance Visit

The surveillance audit will be scheduled later on, with at least nine (9) months up to one (1) year after the

issuance of certificate.

2.3 Lead Assessor/Assessment Team

2.3.1 Lead Assessor: Anita Masduki

Qualification Compliance

Educational Background

Chemical Engineer, Bandung Institute of Technology-Indonesia, passed 1987

Diploma of Biological Treatment Management, Name of University etc. Hiroshima University-Japan, 1991-1992

Diploma of Environmental Management, Institute of Environmental Management and Assessment, London- United Kingdom, 1999

Magister of Social Education, Ibnu Khaldun University, Bogor-Indonesia, 2007-200Doctoral Program of Social Education, Ibnu Khaldun University,Bogor-Indonesia, 2010-now

Yes (Y)

Working Experience

1992-1995:Assessment the environmental impact for several industries of pulp and paper, wood product, pharmacy, at Java, Sumatera, and Kalimantan

1996:Cleaner Production Division for GTZ-Germany and Environmental Impact Control Agency - Indonesia) and Swiss Contact; responsible for research and develop program to integrate cleaner production in the strategic planning of industrial development program, including identifying candidates for implementing cleaner production program in Indonesia. The project include of information dissemination, assist on pilot projects, develop guidance manual for cleaner production integration, develop cleaner production training workshops, deliver training for trainer, etc. This project based on social services provided by GTZ-Germany and Environmental Impact Control Agency of Indonesia as Awareness for Indonesian Cleaner Production Program.

1997- 1998:Global Climate Division of State Ministry of Environment, Jakarta and World Bank – Washington; responsible for preparing Investment Project Proposal for Ozone Depleting Substances Phaseout in Indonesia to be granted by Montreal Protocol Multilateral Fund through World Bank. This project focused on research in identifying industries as candidates for investment project. The project covered dissemination of information, assist on pilot projects, develop guidance manual for cleaner production integration, develop investment project proposal, delivered training, workshops for trainer, public training, etc.

1998-2011:Audit and consultancy experiences for more than 80 companies for ISO 9001, ISO 14001, OHSAS 18001, SA 8000, since 1996 up to 2011 in wide range of audit scope, such as plantations, oil and gas, pulp and paper, electronic manufacturing, school and university, contractors, etc.

Y

RSPO Training Certified RSPO Lead Auditor Training by Wild Asia, May 2011, Kuala Lumpur, Malaysia Y

Other Training

ISO9001:2000 Advanced Lead Auditor Training Course, by SGS International Certification Services, 2002, Jakarta-Indonesia

Certified Auditor Training of Environmental Management System (ISO 14001:1996) EARA -RIET - REDECON Jakarta

Occupational Safety and Health Audit Scheme (OSHAS) 18001, SGS-Jakarta 2002

Y

Experience related to RSPO

Having experiences in environmental impacts assessment for more than 60 of various industries

RSPO to date (Jan-Des 2011)

3 x pre-assessments in Indonesia (RSPO P&C)

10 x main assessments (Indonesia and Germany)

Y


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2.3.2 Assessment Team Members

RSPO REQUIREMENT ASSESSOR QUALIFICATIONS COMPLIANCE

Fluent in main local languages and English.

Sudarmadji (SD)

Ujang Sehabudin (US) Citizen of Indonesia, fluent in English Yes

Field working experience in the palm oil sector, orademonstrable equivalent.

Haryadi (HAR)

More than 10 years working experience in palm oil plantation

Yes

Good agricultural practices(GAP), integrated pestmanagement(IPM), pesticideand fertilizer use.

HAR

US

More than 10 years working experience in oil palm plantation

which includes GAP, IPM, pesticide and fertilizer use

Yes

Health and Safety assessmenton the farm and inprocessingfacilities.(For example OHSAS18001 oroccupational.Healthand safetyassurancesystem).

SD

Completed training as Lead Auditor/Internal Auditor Sustainable Palm Oil by Indonesia Palm Oil Board and KAN (National Accreditation Committee)

Yes

Workers welfareissues andsocial assessmentexperience.(For example withSA8000 orrelated social or ethicalaccountability codes).

Anita Masduki (AM) Having experience in SA 8000 assessment in 2 (two) companies in Indonesia, in 2009

Yes

US Having experience in CSR project as assessor for oil palm company over the past 3 years.

Yes

Environmental and ecologicalassessmenting.(For exampleexperience with organicagriculture, ISO 14001 orenvironmental managementsystems).

AM

More than 15 years for preparing the environmental impact assessment and ISO 14001. Preparing ISO 14001 for plantations, contractors, power plant, etc.

Yes

HAR

Doctorate in Plantation Ecology with considerable experience in several areas of oil palm plantation activities, such as expert auditor in RSPO Implementation, ISO 14000, feasibility studies, and had carried out research in Plantation Best Management Practices.

Completed training in EMS course for ISO 14001:2004 and has experience in oil palm plantation waste management, disposal of EFB and fertilizer packaging and environmental impact on employees’ housing complexes. Member of the team involved in RSPO certification assessment of PT. London Sumatra Indonesia, Tbk. in 2008.

Yes

Economic issues US

Audit ISO 14001:Palm oil and plantation company 2004 version and was involved as auditor training in oil palm and plantation company against the RSPO criteria

Yes


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2.4 Certification Body

PT. TÜV NORD Indonesia is a subsidiary of the German TÜV NORD Group. Our company is a market

leader in Indonesia for inspection, testing and certification services. Through more than 800 clients, we

offer not just a high added value service but also the trust and confidence embedded in our issued

certificates / reports. We satisfy not only our direct customers but also other stakeholders, like regulators

and interested society including NGOs, through our competent auditors, inspectors and analysts.

PT. TÜV NORD Indonesia, under its HQ in Germany, is a member of International Accreditation Forum

(IAF) and accredited by DAR–German and by the Indonesian Accreditation Committee (KAN). Services

provided by the Strategic Business Unit Systems Certifications are: Food Safety Management System ISO

22000, Information Security Management System ISO 27001, Social Accountability SA 8000, Food

Hygiene HACCP, Medical Device Directive MDD, ISO 13485, Occupational Health and Safety OHSAS

18001, Product Certification: GS-Mark, CE-Mark, SNI Mark, Inspection for ISPS Code, Clean Development

Mechanism (CDM) Validation & Verification, British Retail Consortium, BRC Issue 5.

2.5 Outline of How Stakeholder Consultation Was Managed

2.5.1 Summary

As part of document review, auditor team has reviewed list of local stakeholders provided by PT.Inti

Indosawit Subur (IIS). The company has identified all relevant stakeholders and they were invited in the

stakeholders meeting which was scheduled regularly once in a year, according to Information Request and

Response Procedure (Prosedur Permintaan Informasi dan Tanggapan),AA-GL-5009.1-R1, dated August 22,

2011. Last meeting between IIS with stakeholders was held on June 27,2011 at Muara Bulianoffice and

auditor team had reviewed the minute of meeting. Based on list of stakeholder and the stakeholder’s minute

of meeting, auditor team asked company to organize the stakeholder consultation meeting, which was

scheduled on October 13,2011 (see Table 2-1 Audit Schedule).

All stakeholders were sent a letter which included the agenda of the meeting. They were invited to make

any comments on several issues related to them, such as:

Information about RSPO to the public and stakeholders

Company approach to community development.

Environmental protection.

Biodiversity conservation.

Opportunities for employment.

Provision of housing, sanitation, amenities and educational support.

Participation in decision making.


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If there any complaints and grievance, land conflict

Any other issue, both positive and negative that relevance to the assessment.

There were 28 persons attended the public consultation meeting from various institution listed in stakeholder list

and discussed the above.They were asked to freely express their opinions and suggestion. Subsequently, the

auditor team discussed those issues with IIS (see3.3.)

2.5.2 List of Contacted Stakeholders

Public consultation meeting was held at Muara BulianOffice, and below is the list of stakeholders who

were attending the meeting (see Table 2-2 List of Stakeholder ).

Head of the Regency Plantations of Batang Hari

Local Environment Agency (BLHD) Regency ofBatang Hari

Department of Social and Labor District of Muara Bulian

Center of Agricultural Extension District Muara Bulian

Police from Batang Hari Regency and Muara BulianDistrict

Farmers Union of Oil Palm Plantatiion

Worker Association of Mura Bulian Mill and Plantation

Head of Village of Tidar Kuranji, Bukit Sari, Bulian Jaya, Singoan

Represenative from the KUD (Koperasi Unit Desa or Smallholder Scheme) from KUD Barokah, Subur Makmur, Makmur Rezeki, Karya Lestari

Representative from Yunior School, SMPN 23 Tidar Kuranji

Subsequently to the stakeholder meeting, the audit team discussed the issues raised with management

representatives of the company and follow up visits to specific sites were conducted(see 3.3.).

Table 2-2 List of Stakeholder surrounding Muara Bulian Plantation

No Statutory Bodies Name in Contact List

1. BABINKAMTIBMASDesa Bulian Jaya M. Syukr

2. Desa Karya Mukti Diky Arianto, Kades SP 1

3. Desa Tidar Kuranji Rahman Suri, Kades SP 2

4. Desa Bukit Sari Maji, Kades SP 3

5. Desa Bulian Jaya Jayin, Kades SP 4

6. Desa Terusan Fauzi JR, Kades Terusan

7. Desa Danau Embat Ahmad AR , Kades Danau Embat

8. Desa Pelayangan Herwansah ,Kades Pelayangan


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9. Desa Rantau Kapas Tuo M. Noor Rauf, Kades Rantau Kapas Tuo

10. Desa Rantau Kapas Mudo Arwinsah, Kades Rantau Kapas Mudo

11. Desa. Singoan Sialang Pungguk Zainuddin & Mansur, Kepala Dusun

12. KAPOLSEK Maro Sebo Ilir AKP Asrul Sani , SP 2 Desa Tidar Kuranji

13. Anggota Polsek Maro Sebo Ilir, Desa Tidar Kuranji Joko N / Suparman / Amer M / Apand

14. Camat Maro Sebo Ilir, Desa Terusan M. Fadhil SE,

15. Polres TK II Batang Hari Rudhy S. NST

16. Dinas Perkebunan TK II Batang Hari Muara Bulian Sunaryo / N. Sitanggang, Bachtiar

17. BLHD Batang Hari Suardi

18. Dinas Perindagkop TK II Batang Hari Bambang S / M Rizal

19. Disosnakertrans TK II Batang Hari A Siswanto / Hera Orba Jaya

20. Samsat TK II Batang Hari Made

21. BP3K Marosebo Ilir Desa Danau Embat Kokon Sugandi

23. Kantor BPN TK II Batang Hari Mulyono AB

23. SMP YLKI BULIAN JAYA Doni Satria, SP IV Bulian Jaya

24. SMP Neg. 23 Tidar Kuranji Hermawati ,SP II Tidar Kuranji

25. SD 163 Bulian Jaya Sukri A, MPd ,SP IV Bulian Jaya

26. PUSKESMAS SP 1 Suntana, Desa Karya Mukti

27. KUD Barokah Rafles, Desa Karya Mukti

28. KUD Barokah Samsudin, Desa Karya Mukti

29. KUD Subur Makmur Markun , Desa Tidar Kuranji

30. KUD Budi Sari Anwar, Desa Bukit Sari

32. KUD Makmur Rezeki Nasrul,Desa Bulian Jaya

33. KUD Karya Lestari Pandioman, Desa Kehidupan Baru

34. KUD Tuah Sakato Efendi Syarham, Desa Danau Embat

35. KUD Tuah Sakato sub unit Terusan Habibullah, Desa Terusan

36. KUD Tuah Sakato sub unit RKM Gamal A. Naser, Desa Rantau Kapas Mudo


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3 Assessment Findings

3.1 Summary of the Findings by Criteria

The assessment team conducted a thorough assessment of all the principles, criteria and indicators.

Evidences were sought for conformity with the RSPO NI of both systems and their implementation. The

summary of the assessment can be seen in Table 3-1, where “Findings/Comments” column reflects the

findings in accordance with each criteria and indicator or evidences that were found (the full and complete

checklist contains some confidential information and is an extensive document used for peer review and by

the certification decision panel and certifier), and when non conformity was found, a summary of the non-

conformity will be included.

Table 3-1 Summary of Findings by Criteria

FINDINGS/COMMENTS COMPLIANCE

Criterion 1.1 (C.1.1)

Provide adequate information to other stakeholders on environmental social and legal issues relevant with RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision-making

There is a system on how to provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO, so called Procedure of Handling Stakeholders Information Request (Penanganan Permintaan Informasi Stakeholder) no. SOP AA-GL-5008.1-R1

dated December 5, 2009. This procedure was prepared by Social Security Legal (SSL) Department of IIS Head Office. Auditor team assessed the implementation of this procedure and found that all information received from related parties and its responses has been recorded in Information’s Request and Responses Log Book (Buku Permintaan Dan Tanggapan Informasi).

The book contain information of date, name, organization, information requested, action taken to request , person in charge whom follow up or, and other referencesi.e.Letter. This log book and other references as records were maintained for at least five years.

Yes (Y)


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

IIS management has a policy which stated that all legal, social and environmental document sare publicly available, except for any related confidential commercial information and sensitive document. A Mechanism of handling the request of public documents is mentioned as well within the same abovementioned procedure SOP AA-GL-5008.1-R1 (C.1.1).

Auditor team has verified that these documents are available for public, such as: - Environmental and social impact assessment (AMDAL,UKL-UPL,AMDAS), - Environmental Management And Monitoring Reports (Laporan Pemantauan RKL/RPL) - Land Use Title (Hak Guna Usaha/HGU) - Plantation Operation Permit (Izin Usaha Perkebunan). - HCV identification (Identifikasi HCV) - License to use water (underground water use permit), - The Health and Safety Manual and Program. - Current and past FFB prices - Compensation claims mechanism

Y


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

The organization has mechanism how to comply with all applicable laws and regulations through procedure SOP AA-GL-5001.1-R0. Implementation of this procedure was followed up byproviding a list of regulations and legal requirements relevant to the mill and plantations. The list of regulation, including Land Titles, Environmental, Forestry, Water and Air Pollution prevention, Safety, Labor Wage, Waste Management, etc.

Auditor team has assessed that company has complied to the laws (Undang-Undang) on Environmental, Safety, and Labour such as Undang-Undang No.32/2009 on The Basic Laws on Environmental, Undang-Undang No. 13/2003 on Labor, U ndang-Undang No. 1/1970 on Safety, and Undang-Undang No. 18/2004 on the Plantation. The company has compliance to these laws. Auditor also checked and verified to the legal permits which have to be complied by the company, such as certificate of land (HGU), boiler, sterilizer, diesel generator, worker license/permit, etc. and found that the company complied on the legal permits. Only two of non compliances found, and noted as NC # T-01.10/11 and T-02 .1011

Major 1. Evidence of compliance with relevant legal requirements According to Environmental Berau of Batang Hari District No. 117, year 2011, PT Inti Indosawit Subur has been approved for keeping hazardous waste not more than 180 days. In fact, the last picked up of hazardous waste by PT Elmuson was on January 14, 2011, which was ten months late than time permitted for keeping hazardous waste.

Major 2. Evidence of efforts made to comply with changes int he regulations.

There was a change in the regulation, but actually no evidence of efforts made to comply it. For example, Undang-Undang No. 23/ 1997, which was changed to Undang-Undang No. 32/ 2009. Other relevant regulation was also not identified, such as UU 18/2008, Permen 02/2008, KepmenLH No.23/2003, PermenLH 18/2009, Kep.Gub. Jambi No. 417/Dissosnakertrans/2010, Kep.Bupati Batang Hari 117/2011, etc.

Both non conformities has been followed up with proper correction and corrective action respectively. The NC # T-01.10/11 has been closed as the hazardous and toxic wastefrom Muara Bulian has been sent to PT Elmusonsetindo Nusaindah on November 12, 2011. The NC# T-02.10/11 has been closed as the new list of laws and regulation was available. Auditor verified and accepted the correction and corrective action respectively and to be checked its consistency and improvement in next surveilance audit.

NC

NC # T-01.10/11 and T-02 .1011


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

Land titles for Muara Bulian Plantation were available and verified. List of land title was recorded in a file called Licenses of Plantation and Mill (Perijinan Kebun and Perijinan Pabrik). There are 5 (five)

Land Titles (HGU No 01,03,03,14,15 ) for the total 1856,49 ha in Muara Bulian plantation. The boundary stones scattered along the legal area and most of them were observed in a good condition.The legal status of boundary stone was approved by Badan Pertanahan Nasional(National Land

Body).The List of boundary stone maintenance for Muara Bulian plantation was recorded as a report of stone boundaries monitoring and maintenance (Laporan Pemeriksaan dan Perawatan Patok Batas) No.001/LAP/KMB/SSL/02.3/XII/2010complete with photograph.

The company has a mechanism for resolution of conflicts and disputes through SOP no. AA-GL-5003-1-R1. This procedure describes how the company solve the problem if any conflict occured both internal and external conflict. This procedure also mentioned if the problem can not resolved by negotiation, the company will take legal action involving related institution.

No land conflict found at Muara Bulian plantation. The plantation is surrounded by plasmas owned by local farmers which have been nurtured and educated by IIS. For each plasma there is a company representative who has a role as the plasma manager and he is in charge of overall plasma activities. All harvested FFB from plasma are supplied to Muara Bulian Mill. During the

Yes (Y)


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stakeholder meeting (13.10.2011), auditor team had reconfirmed the truth of the fact that there are no disputes regarding the purchasing of FFB from farmer to company directly to plasma representatives i.e Village Cooperative (KUD) who were attending the meeting. For more information regarding stakeholder consultationsee Section3.3 Issues raised by stakeholders.


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

There were no findings which indicated the current existence of customary rights on the plantations. Related issues were discussed during stakeholder meeting and those were confirmed that there were no outstanding customary rights or issues.

Y


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

The company has a documented working plan written in Annual Budget, both for Tungkal Ulu mills and plantations. It covers a minimum period of 3 years which include production forecast, production cost. For mill budget,covers FFB received and processed, CPO and PKO production details, crop yield projections, and income. Price of FFB is determined based on Governor Decree of Jambi (Peraturan Gubernur)No. 36 tahun 2011 about Guideline of FFB’s Price Determination (Pedoman Penetapan Harga Pembelian FFB Kelapa Sawit Produksi Perkebunan) dated September 12, 2011.

Replanting program for IIS is available and projected for 6 years and reviewed on yearly basis. First replanting has been programmed in 2012.

Y


Operating Procedures are appropriately documented and consistently implemented and monitored

IIS has provided an Agronomy Policy Manual (APM)& Standard Operating Procedure (SOP) for both mill and estate. The SOP for estate covers nursery set up and operation, planting preparation, maintenance, harvesting and related good agriculture practices, which broken down into several procedures num. AA-SOP-OP-1100.01-R1 until AA-SOP-OP- 1100.20-R1. Whereas for mill activities from receiving FFB until dispatch of CPO and PK are broken down into 16 procedures num. AA-MPM-OP-1400.01-R1 until AA-MPM-OP-1400.16-R1. Concerned aspects, such as quality, environment, and safety are incorporated in each related activity listed. These SOPs were well socialized to respective persons both at Muara BulianMill and Plantation.

Monitoring of estate operations recorded in Internal audit file, covershouse keeping, warehouse, maintenance, harvesting. Internal audit twice a year and external financial audit once a year

All activities regarding the estate operations was recorded in Monthly Management Report, containing detailed FFB production and expenses, fertilizer, pesticide and herbicide applications, pruning, harvesting, hand picking, stock balances of warehouses, operational expenses, visitors, management structure, clinic report, labor and employees, rainfall, workshop, inventories of company properties.

Y


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

Soil analysis is regularly carried out once in every two years by Asian Agri Research And Development Centre and make recommendations for fertilizer.Last analysis was held on May 2009. Leaf sampling and analysis was held on yearly basis. Based on soil and leaf analysis, the

Y


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agronomist will give recomendation of fertilizer dosage. Recommendation was recorded in R&D Agronomy Visit Report and Recommendation of Fertilizer and Realization of Application (Buku Rekomendasi Pemupukan dan Realisasi Aplikasinya), issued on November 2010.

To maintain land fertility, IIS used Empty Fruit Bunch (EFB) and Palm Oil Mill Effluent (POME) for land application, substituting the usage of inorganic fertilizer. This application was recorded in “Program Pelaksanaan Aplikasi Janjangan Kosong dan Aplikasi Tanah (POME)” (Program of EFB and POME for Land Application). Map and amount of EFB and POME application was available and clearly identified both for Muara Bulian mill and plantation. There was also report of land permeability which recorded as Report of Infiltration and Permeability on Land Application Area (Laporan Studi Infiltrasi dan Permeabilitas Areal Land Aplikasi)/, issued by Asian Agri Research and Development Center, issued in 2010. There was also available Report of Physical and Chemical Analysis of Soil, issued by Soil Research Laboratory of Bogor, period 2010.


Practices to minimize and control erosion and degradation of soils

IIS has a strong commitment to control and minimize soil degradation. Report of control and minimize soil degradation was recorded in Soil Survey Report (Laporan Survey Tanah Semidetail), issued by Asian Agri Research and Development Centre . A map of soil for Muara Bulian plantation is available.

Company provided SOP: AA-APM-OP-1100.05-R1 for soil and water conservation, including covers management strategy for slope planting. Auditor noted that IIS has identified conservation terraces and platforms to manage sloped areas, and the result of this was recorded in Programs & Realization for maintenance of terrace, horse hooves, silpit, preparation of midrib completed with maps(Program and Realisasi pembuatan/pemeliharaan teresan, tapak kuda, silpit, penyusunan pelepah). Constructed Individual and continuous terraces in conjunction for soil and water conservation.

Roads were very well maintained and there was a maintenance road program since 2007-2010. There was a monthly road maintenance activities using grader. These activities are planned in a Program for Road Maintenance, including road grading, road pit, sand and stone spreading along the road, etc. (Program Pemeliharaan Jalan: Pengerasan dan parit jalan, penaburan pasir dan batu)

There was no peat and fragile soil identified. But in case of any, IIS has prepared an SOP no. AA-APM-OP-1100.09-R1 item 3.6.1.2 to resolve of peat and fragile soil problem.

Y


Practices to maintain the quality and availability of surface and ground water

There was restoration of the riparian program which was recorded in Riparian Restoration Program (Program Restorasi Riparian). Through this program, IIS has implemented a riparian buffer zones program and monitoring for the existing of erosion control in field. All water courses are clearly identified on maps as well as on site. In this program, zero usage of fertilizer and pesticide application in the riparian zones was applied.

Water management included monitoring of all water usage and discharge as they enter and leave mills and plantations. IIS provided the water balance records, including monitoring of daily water consumption entering mills and plantation, and waste water discharge to waste water treatment and used it as POME for land application.

Biological Oxygen Demand (BOD) from waste water treatment plant was measured by external laboratory monthly. Result of the measurement was monitored and compiled into documents of RKL/RPL (Environment Management Plan – Environmental Monitoring Plan) , both for Tungkal Ulu Mill and Plantation which was sent to Environmental Impact Management Agency (Bapedalda – Badan Pengendalian Dampak Lingkungan Hidup Daerah) every six (6) months.

Water usage for mill operations was available and recorded as Water Management Program for

Y


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Mill (Program Pengelolaan Air di Pabrik). Four years data of water usage for both operational and

domestic water consumption are available. The records showed that during four years from 2008 up to September 2011 was insignificantly different, average water consumption for mill operation was 1.04 ± 0.05 m

3/ton FFB which was still under the operational budget for water consumption

1.21 m3/ton FFB.


Pests, diseases, weeds and invasively-introduced species are effectively managed using appropriate Integrated Pest Management (IPM) Techniques

IIS has provided procedure for Integrated Pest Management (IPM) plan in SOP:AA-APM-OP-1100.10-R1. The IPM focused on monitoring of pests and diseases. Several common pests have been identified - rat, caterpillar (Thosea asigna and Setora nitens) and termites.

IPM comprises both chemical and biological control. Biological control for caterpillari.e.by the planting of beneficial plants, such as Antigonon leptosus (air mata pengantin), Turnera subulata (bunga pukul delapan) Euphorbia heterophylla (patik emas), Casia cobanensis, Those plants have a role as a host for Cikanus sp., which is known as caterpillar predator.

Rat control was conducted through rat census and barn owl (Tyto alba) monitoring. Auditor found that the use of owls to control rats and use of beneficial plants alongside roads was effective. Usage of pesticides was decreased.

Report of IPM Program was recorded as Report of Pest and Disease, which is conducted by Research and Development Centre (RDC), and last record census for Pest and Disease for Muara Bulian is report No. KMB/R&D-P&D/01-10, dated May 10-11, 2010. The census was conducted yearly and for year 2011 it is planned on December.

There was yearly based record for leaf analysis, and monitoring of pesticide toxicity conducted by R & D Agronomist fom March 2009 up to July 2010. The latest was on July 8, 2010. Record of EFB and POME reports for land application from March to September 2011 was available.

Y


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

There is a list of agrochemical used, refer to World Health Organisation Type 1A or 1B and recorded as “Buku Klasifikasi Pestisida menurut WHO” and procedure of usage of chemical, such

as standard operation procedures (SOP), and MSDS.

Refer to Agriculture Ministry, through its decree No. 1/ 2007 regarding Restricted and Prohibited Pesticides(Bahan Aktif Pestisida Yang Dilarang Dan Pestisida Terbatas), Head of Environment and CSR Coordination, and oil palm plantation researcher have declared a commitment to minimize hazardous agrochemicals. Since year 2005 only approved agrochemicals that have been registered are to be applied in the plantations. The consumption of agrochemicals are used based on internal regulation issued by the Head of Environment and CSR coordination, and Researcher manager, and in accordance with the Managing Director Operation declarations. There was memorandum Head Plantation regarding Herbicide containing Paraquat Reduction Usage(Pengurangan Pemakaian Herbisida yang mengandung Paraquat).

The usage of Gramoxone was monitored properly, the summary of monthly usage record showed a significant reduction of Gramoxone application in Muara Bulian Plantation from 2010 to 2011, which were decreased from 1518 to 412 liter.

Training for almost of chemicals applicators have been done in between 2010 and 2011. The latest training was conducted on October 4, 2011 covered all workers who have not been trained. The

Y


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training was done externally by Ir. Guntur, Mr. Syahrial, Mr. Abdul Ghafur, and Suroso from Fertilizer and Pesticide Supervisor Commission for Jambi Province.

IIS listed all chemicals applicator worker, in a form namely Sprayer and Fertilizer Worker List updated September 29, 2011. Within this form, the company monitors training of pesticide certificate availability, medical check up certificate, pregnancy monthly test result for women worker. The latest pregnancy test result on September 13, 2011, showed no pregnant worker sprayer.


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

PT. Inti Indosawit Subur (IIS) management has established OSH policy, which was intergrated in “Kebijakan Lingkungan, Sosial, Kesehatan dan Keselamatan Kerja” (Environmental, Social, and Occupational Healt and Safety), on September 2008and was approved by Senior Manager.

To implement the policy there was OSH procedure, SOP-AA-447-002. R.1, dated August 15, 2007. Included in this procedure are map/layout of evacuation route, Fire Extinguisher, First Aid, Hydrant, Assembly Point and applicable in mill, plantation, warehouse, office, traction, and housing.This procedure has been socialized and communicated to all sites.

There was OHS organization structure, called Tim Panitia Pembina Keselamatan dan Kesehatan Kerja (Tim P2K3)/ OHS Steering Committee approved by Labor Authority both at Muara Bulian plantations and mills. Approval Letter of OHS Committee for Muara BulianNo.

568/752/DSKT/V/2011 and No. 568/947/DSKT/V/2011 and for No.560/2074/4.3/DSTKT/V/2011 and No.560/174/4.3/DSTKT/V/2011, dated 13 July 2011. The secretary of the team, must have Certificate for General OHS Expert (Sertifikat Ahli K3 Umum). OHS Committee conducts a regular monthly meeting and gives explanation to all supervisor at sites, both mill and plantations. Before working, supervisor of mills and plantations have a morning briefing to all workers which normally explain what are their to date job, including safety briefing. All worker equipped with suitable PPE.

Records of training, socialization of OHS, morning briefing, certificate of training, use of safety equipment such as fire extinguisher were available. There were several OHS training since March until June 2011 recorded, such as training on OHS and RSPO, First aid, HIRA, OHS program. Training of RSPO and OSH was given by the sustainability department; training or agronomy (includes spraying) by the estate manager.

Workers exposed to high risk were identified and records show that regular health examination takes place. All workers are insured by PT. Jaminan Sosial Tenaga Kerja (Jamsostek), the national insurance body.Records of member (worker) list and payment were available.

IIS provided the health care facilities for sprayer operators, workers, and staff as well as people living around the employee’s housing complex. The patient’s datawas registered in their medical record. Each plantation has a health care facility and there is a doctor who visitthem every week. For Muara Bulian plantation, medical check up (MCU) was conducted for workers who work as sprayer, chemical warehouse, workshop, fertilizer. Whereas for mill, the MCU was conducted for those who work at bolier station, water and waste water treatment plant, chemical warehouse, toxic and hazardous warehouse, workshop. Result of MCU was recorded in Recapitulation of Regular Medical Check Up for Worker (Rekapitulasi Hasil Pemeriksaan Berkala Karyawan). Both plantation and mill worker, are regularly check for two (2) times a year. The latest medical check up was done in April 1, 2011.

There wasa training for P2K3 team, which was coordinated by doctor and paramedic, other than that Basic Safety, Basic Fire, and First Aid training were conducted as well, and all records were well maintained accordingly.

Y


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


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Management of IIS provided training program for its staff, worker, smallholders in accordance with workers’ positions and competences. Training programs are formulated on yearly basis. There are several training programs for workers, i.e. spraying practices, Integrated Pest Management, Occupational Health and Safety, toxic and hazardous substances, toxic and hazardous waste management, and fire prevention and control. While training for smallholder include use of PPE and last information about FFB price

The training was held during 2010 and 2011, such as “Pelatihan Penggunaan Pestisida Terbatas” (Training of Restricted Agrochemicals Usage) back in November 2010, “Pelatihan Operator Pesawat Uap dan Juru Las” or Training for Boiler Operator and Welder, and training for supplier and contractor. There was also First Aid training for team P2K3(Occupational Heatlh and Safety Team), coordinated by doctor and paramedic from Muara Bulian Clinic. Training for smallholders and selected supplier and contractor were available. All training records were verified and found well recorded accordingly.

Interviews with staffs and workers of mill and plantation showed that they aware the risk of their job, to environment and safety and health. It was confirmed that the training was effective and the competence of worker was enough to support their job.While interview with external FFB’s smallholder, they were aware of using personnel protection equipment (PPE), and FFB price regulation.

All training records during 2010 and 2011, including attendance lists, photographs, and training material were available and maintained properly.

There was evaluation of the effectiveness of the training for all those training participants

Y


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

IIS has performed first Environmental Impact Assessment (AMDAL/RKL-RPL) based on Decree of Agricultural Ministry No.SK/Mentan. 014/ ANDAL/RKL-RPL/BA/V/95 dated May 3, 1995. The document was updated and approved by Badan Pengendali Dampak Lingkungan Daerah” (BAPEDALDA)/ Regional Environmental Impact Control through ANDAL No. 309/BLHD/2009 dated 6 Oct 2010. The assessment covered both Muara Bulian mill and estates which was submitted to BAPEDALDA every semester (6 months). In order to improve environmental management plan, the AMDAL document equipped with “Dokumen Pengelolaan dan Pemantauan Lingkungan or DPPL) based on Decree of Jambi Governor No.275/X/2009. DPPL consist of new

aspects that were not covered yet under AMDAL document, such as waste water management, land application of EFB and POME, temporary warehouse for hazardous waste and replanting program


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

IIS has assessed its areas for protected, rare, threatened or endangered species carried out by external consultants from Faculty of Forestry, Agriculture Institute of Bogor.

There was conservation management plan, biodiversity monitoring program, HCV monitoring program in HCV area and wildlife monitoring program.

Management plan for the HCV and conservation area is available. The plan includes details of the area, location, objective and target, management program, monitoring of wildlife. Maintenance of riparian zone was available as part of biodiversity is based on Indonesian Republic Act(Undang-undang) No. 41 tahun 1999 regarding Forestry and Indonesian Republic ActNo.5 tahun 1990 regarding Biodiversity Conservation.

NC

NC # T-03.10/11


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Monitoring of HCV management plan was conducted twice a year There was an HCV supervisor and operating worker to monitor and implement plans. Company appointed a dedicated and trained officer to monitor the HCV plans and activities as above. A daily security patrol in HCV area and production area conducted by field supervisor who has certificate of HCV training. Mr. Joko Prawoto who has been appointed as an HCV supervisor, received his HCV training for auditor back in March 17, 2009 from Daemeter Consulting.

The study has identified: HCV 1.2 : Based on CITES, IUCN PP No.7/199 7 species of mammals protected: Babi jenggot (Sus barbatus), kera ekor panjang (Macaca fascicularis); beruk (Macaca nemestrina), kucing kuwuk (Felis bengalensis); Trenggiling (Manis javanica). Based on EN ver. 1 IUCN 2010 were identified: Musang luwak (Paradoxuruss hemaproditus); 8 species of birds; and 4 species of reptils including buaya senyulong (Tomistoma schelegei).

Based on EN ver 2. 3 IUCN 2010. HCV 4.1: Benanak River, Lampisi River, Jitan River, Serayu River,and their branches. HCV 5 Benanak River, Jitan River.

There was conservation management plan, biodiversity monitoring program, HCV monitoring program in HCV area and wildlife monitoring program. IIS management team was responsible to manage and monitoring all HCV program which has been identified in the HCV report. Auditor team has checked and verified the HCV management and monitoring plan.

The HCV management includes details of the area, location, objective and target, management programme, based on Undang-undang No. 41 tahun 1999 regarding forestry and Undang-Undang No.5 tahun 1990 regarding biodiversity conservation.

Monitoring of HCV management plan was conducted twice a year There was an HCV superviosor and operating worker to monitor and implement plans. Company appointed a dedicated and trained officer to monitor the HCV plans and activities as above. A daily security patrol in HCV area and production area conducted by field supervisor who has certificate of HCV training.

Minor-1 Posters and signs warning of the presence of protected species are to be produced, distributed, and made visible to all workers and the community, including guidelines in handling them

There were HCV posters and sign boards in Muara Bulian and Office. But there was no HCV posters and sign boards available at conservation area to warn of the presence of protected species and made visible to all workers and the community. HCV posters only available at plantation office.


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

All environmental aspects both in Muara Bulian mill and plantation have been identified in the RKL/RPL report. This report was required by regulation and shall be submitted regularly to Jambi Province every six months. In this report, type and pollutions sources was identified and documented.

There was log book for all type of wastes, the pollution sources, amount, where to be disposed , name of waste collector and its truck identification, copy of permit/lisence of waste colector were available both at Muara Bulian and mills and plantations.

Procedure for waste handling, SOP-AA-KL-06-EFP, was available and communicated to waste officer at Muara Bulian

Toxic and hazardous waste was collected at centralized hazardous waste area and PT Elmusonsetindo Nusa Indah collected the wastes regularly. PT. Elmusonsetindo has a licensed as collector for toxic and hazardous waste based on Decree Letter No.144/2010, from Ministry of


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Environment. There was MoU between IIS and Emulsonsetindo No. 049/ESNI-ITP-AFR/III/2011 for and No. 07/SPJ/LEG-IIS/VIII/10 for Muara Bulian .

Before collected by PT Emulsonsetindo, there was temporary warehouse to keep and store the toxic and hazardous wastes. Under a Permit of Temporary Storage of Hazardous Waste issued by Ministry of Environmental no. 362A year 2009, IIS is allowed to keep those kinds of wastes for 180 days. The permit is valid from August 1, 2010 until August 1, 2015. .

Report of toxic and hazardous waste balance was recorded as Toxic &Hazardous Waste Storage Report (Laporan Pelaksanaan Penyimpanan Limbah B3) in a form no AA-KL-601-FMand the reports are available for periods of Jan-Dec from 2008-2010, and Jan-Sept of 2011. All records of waste balance and manifestation had been checked and verified.

Minor-2:

Records of waste monitoring/analysis shall be available

It was found that there was no monitoring/analysis of waste water from washing of pesticide’s sprayer clothes and fertilizer plastic bag at Muara Bulian Plantation


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

Fibers and shells used as energy substitution source in the mill (bio fuel)

Records of fibers and shells used as renewable energy used were recorded as Total Energy Usage Record (Pemakaian Total Energy) and summarized in a Manager’s Monthly Report for mill. Efficiency analysis was available and records on energy used was maintained properly. These provided data have been checked and verified.

Criterion 5.5

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

There was zero burning policy available under RSPO policy. Zero burning policy is also stated in contractor’s agreement.

To control fire if any, there was fire safety training provided by Dinas Pemadam Kebakaran

(Provincial fire fighting authorities) to person in charge in the Emergency Team, and record of the training was available. Fire extinguishers present in various locations on site and checked periodically.

There was information on analysis and maps of land prone available and recorded as a Risk Level Analysis for Easily Burned Area (Analisis Tingkat Kerawanan Kebakaran Lahan) complete with the map (Peta Tingkat Kerawanan Kebakaran Lahan) and a list of equipment and facility provided in case of fire at both mill and plantation.

Siren for getting attention and help during emergency was available and checked regularly.

Criterion 5.6

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

There was identification of the sources of pollution. At mill, air pollution was from boiler and generator. Air pollution measurement was conducted every six months by Labor Department’s Laboratory (Laboratorium Pengujian DISKIMPRASWIL) Riau province and recorded as “Laporan Pemantauan Kualitas Udara” (Air Emission Monitoring Report). The two (2) latest measurements of air emissions were on November 2010 and June 2011. These records are available in the AMDAL/DPPL environmental reports as well, and submitted every six months to Jambi District Environmental Bureau.

Liquid wastes, e.g. POME, are processed through series of settling ponds where anaerobic bacteria was used to digest wastes and reduce BOD. The treated effluent was applied to the field


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in flat beds and ready to use as land application. Usage of POME for land application was aim to reduce of fertilizer.

Before it was used as POME, according to the Keputusan Menteri Negara Lingkungan Hidup No. 28 Tahun 2003 tentang Pedoman Teknis Pengkajian Pemanfaatan Air Limbah dari Industri Minyak Sawir Pada Tanah di Perkebunan Kelapa Sawit (Decree of Ministry of Environment on the Usage

of Palm Oil Mill Effluent), the company monitored it as monthly checked by independent laboratory. Auditor checked parameter content of POME, such as pH, BOD, COD, TSS, for three months records, July-September 2011 and found it complied to the regulation. The company has permit to discharge its POME according to Ijin Pemanfaatan Limbah Cair Untuk Pemanfaatan Lahan (Permit

of POME for Land Application No. : 660/ 241/ LH/ 2010 dated on October 12, 2012

POME was monthly monitored; the results were summarized in a form called Tabulation of Waste Water Quality Monitoring Data updated to September 2011. The presented records showed no deviation results compare to standard. For example, BOD5 records showed that the treated waste water applied to land were varied below the permissible maximum standard 5000mg/L, ranging from 483 until 4970 mg/L. In average, the BOD5 was (2657 -1709)mg/L.

Criterion 6.1

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

There was documented Social Impact Assesment (SIA) available which conducted on March 5-11, 2011 for Muara Bulian plantation done by a team (consist of six people) from Forestry Department of Bogor Agricultural Institute whom was led by Ir. H. Nyoto Santoso, MS as the team coordinator together with Mr. Ahmad Faisal Siregar, S. Hut as the team leader. Both of them has an experience in social impact assessment since year 2000 and 1997, respectively. The report was released on June 2011.

SIA was focused onseven (7) main issues which are Social Impact Evaluation, Free Prior Informed Consent (FPIC), Land Ownership/Status, Land Acquisition and Compensation, Relationship in between workers, growers, and local community, Occupational Health and Safety, and Company’s Contribution to Local Development. The data on social and economic collected throughcensus method, Focus Group Discussion (FGD), and survey based on social economical aspect, types of available occupation, stakeholder’s interaction pattern .

Positive and negative impacts are described within the report as well as some of recommendations. Based on the recommendations, IIS made a plan of Social Management which covers root caused analysis, action plan, PIC, target of action, status of action as per October 10, 2011 and remarks.

There were records of Corporate Social Responsibility (CSR) activities for year 2010-2011. The program covered such as training on best practices for palm oil to farmer and smallholder, contribution given to community, such as road repair, school contribution. Social impact of company was discussed during stakeholder meeting on October 13, 2011, and topic matters was discuss in detail in section 3.4 of this report.

Criterion 6.2

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

IIS has provided a mechanism of handling to the request of public documents in procedure as above SOP AA-GL-5008.1-R1 “Penanganan Permintaan Informasi Stakeholder“ Rev.0 dated on 5 December 2009.

Auditor team assessed the implementation of this procedure and found that all information received from related parties and its responses was performed in “Buku Permintaan Dan Tanggapan Informasi” (Request and Responses Log Book)


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The book contain information of date, name, organization, requested information, action taken to request , person in charge, whom follow up or, and other referencesi.e. Letter. This log book and other references as records were maintained for at least five years.

IIS has a list of stakeholders, such as smallholder, supplier and contractor local governments, business partners, NGOs, local communities and the press. The list of stakeholder was updated periodically.(seeTable 2-2)

Criterion 6.3

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

IIS has procedure regarding mechanism for handling external complaint, SOP AA-GL-5005.1-R0 “Penanganan Keluhan” and internal complaint was SOP AA-HR-308.5-R0 “Penyampaian dan Penyelesaian Keluhan Karyawan”. This procedure has been socialized to internal and external stakeholders.

All information received from related parties and its responses was performed in “Buku Permintaan Dan Tanggapan Informasi” (Request and Responses Log Book). This log book and other references as records were maintained for at least five (5) years

Criterion 6.4

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

IIS has developed SOP AA-GL-5003.1-RO dated December 5, 2009 about Land Acquisition and Compensation (Mekanisme Penanganan Konflik Lahan). This procedure mentioned how to handle land conflict if it can’t be resolved by negotiation. This procedure had been communicated to stakeholders in the meeting with them, June 27, 2011. When public consultation conducted on October 13, 2011, auditor found that the stakeholders aware and understood about the content of procedure.

There was a negotiation process concerning compensation of land at Muara Bulian. Identification and calculation fora fair compensation refer to above mentioned procedure; The negotiation was clearly resolved and recorded properly.

Criterion 6.5

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

Pay rates as well as working time and overtime pay terms are included in work contract (Perjanjian Kerja Bersama - PKB). Pay rates are based on Undang-Undang No.32 Year 2004 Workers Union Agreement and as per the employment agreement. Pay rates includes basic wage and allowances are summarized in a document, so calledLabor Control,detailed with employment status.

PT IIS 2011 has set the salary based on Governor of Jambi 2011 No. 417/Kep.Gub./Disosnakertrans/2010 and Workers Union Agreement of Sumatera Plantation (Badan Kerja Sama Perusahaan Perkebunan Sumatera BKS-PPS No 165/BKS-PPS/2010. According to this agreement, PT IIS set the minimum salary of 1,033,000 IDR, which was consisting basic salary and allowance.

Payment records show that workers are receiving more than the minimum wage, between 1,067,500 until 2,554,205 IDR. Payment records are signed by the workers to acknowledge receiving the payment in full and understand the calculation. Interview with workers confirm that they understand the pay rate and payment is on time.

Company provide housing clean water, electricity, medical facility, an electricity, bus stop, school buses, church, mosque, kindergarten, sports activities,domestic waste collection


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Criterion 6.6

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

Under a policy of Awareness on Environment, Social, Health and Safety (Kebijakan Lingkungan, Sosial, Kesehatan dan Keselamatan), IIS gives every worker the right to form and to be a member of labor union.

Union worker office was located in the housing complex of the estate and mill; which easily accessible to all workers.

Meeting with labor union on December 13, 2010 and December 17, 2010 to form organization structure and labor union

Criterion 6.7

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

IIS has policy for each mill and estate regarding recruitment policy. This policy include the statement that no worker under 18 years will be accepted.There was memorandum from Head of HRD No. 21/HRD/INT/VII/2009 “Larangan Mempekerjakan Pekerja di Bawah Umur”. As a monitoring, IIS created a form where all workers are listed based on type of work, gender, ethnic, religion, date of birth, date of employment, and marital status. This record is updated regularly by each appointed person in charge.

Criterion 6.8

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

IIS has policy based on Undang-Undang no. 13 tahun 2003 tentang Tenaga Kerja (Act no 13/2003 about Labor) about equal opportunities for each mill and plantation. The policy indicates that workers have same opportunities for promotions regardless race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliations or age.

It was noted that company accepted new employee based on their capabilities and qualifications. In procedure SOP AA-HR-305.2-R0 Employee Recruitment and Selection (Rekrutmen dan Seleksi Karyawan) and through interview with workers in mill and plantations, it was confirmed that there was no discrimination on working opportunity, all workers have been treated properly

Records of employee’s recruitment and its contract agreement were available.

Criterion 6.9

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

Policy on sexual harassment is available in company’s policy of RSPO. There is SOP to prevent and handle sexual harassment available in document no. AA-HR-309.01-R0.

A committee of Gender has been formed on31 Jan 2011. This committee has a role in handling of women’s problem, socializing of women’s right to all women’s worker, etc. Both policy and SOP were communicated to respective worker at mill and plantation during labor union meeting which washeld by the gender committee. Important information on gender issues was communicated during the meeting.

Protection of reproductive rights for workers was stated in the Policy and SOP.There was a specific SOP on grievance mechanism. Records of pregnant leave, and permission letter for breast feeding


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women.

Records such as attendance list and minute meeting are available, example: for the committee gender meeting held on February 9, 2011.

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

IIS has developed a pricing mechanism for FFB and other services such as Working Agreement Letters between company as well as with other suppliers and contractors for both mills and plantations

In the Agreement with schemed smallholders there was a pricing mechanism of FFB available. The FFB prices based on current prices agreed by both parties and updated monthly. Records of payment from company to smallholder was available, include its deductions if any. Interviews with third party FFB suppliers confirmed that payment was transparent and understood.

The aspect of health and safety that must be complied by supplier and contractor also stated in the agreement. The supplier and contractor shall equipped their activities with personnel protection equipment (PPE) properly.

Criterion 6.11

Grower and mills contribute to local sustainable development wherever appropriate.

There were policy for contributions to the local development stated in RSPO policy. Implementation of this policy were available as Corporate Social Responsibility (CSR) activities for year 2010-2011

CSR program was available for both Muara Bulian and mil and plantation through contributions to local government and communities, such as:

- Providing roads maintenance for villages closed to plantations using company’s grader machines

- Providing transportation (school bus) and education facilities to play groups, elementary school, junior and senior high school for employees and communities around estates and mill

- Providingand improve health facilities for villages closed to plantations - Charity to local community in festival days, such as festival day of Idul Fitri and Idul Adha. - Records of CSR were maintained properly

Y

Criterion7.0

No new planting planned on any estate included in the scope of this assessment.

Principle 7 is not applicable to this assessment.

Criterion 8.1

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

The company can clearly demonstrate improvement in quality, environmental, safety and health, as well as social aspects, for both activities mill and plantation which are recorded in Master Plan for Continuous Improvement made by Mr. Ramli Simarmata as the Estate Manager . There was a mechanism through internal audit that organization regularly monitor and review their activities, develop and implement action plans that allow demonstrable continuous improvement in key operations (8.1). Result of internal audit was reviewd regularly through Management Review Meeting. The company kept the record both of internal audit and Management Review Meeting.

Y


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3.2 Identified Non Conformances and Noteworthy Positive Components

This section gives an over view of new or revised non-conformities raised during this assessment and of

action taken to close out non-conformities rose during the previous assessments.

3.2.1 Detail of Non Conformity

Non Conformity Report – T01.10/11

Date of issued 14.10.2011 NCR issued by : Anita Masduki

Location Muara Bulian Mill Discussed with : RSPO Team

RSPO – Criterion :

Criterion 2.1


Major. 1 Evidence of compliance with relevant legal requirements

Description of Finding/Objective Evident:

According to Environmental Berau of Batang Hari District No. 117, year 2011, PT Inti Indosawit Subur has been

approved for keeping hazardous waste not more than 180 days. In fact, the last pick up of hazardous waste by PT

Elmuson was on January 14, 2011, which was ten months late than time permitted for keeping hazardous waste.

Classification Major Minor

Correction:

To deliver hazardous and toxic wastefromMuara Bulian andto PT Elmusonsetindo Nusaindah

(PIC: Suheimi. Target: Week-2, November 2011)

Corrective Action

To monitor delivey of hazardous waste each 6 months, and 3 months before expired, the contract agreement of waste

shall be extended(PIC: Suheimi Target: continuous)

Auditee sign:

Date : 28 October 2011

Auditor Verification:

Explanation for corrective action can be accepted. It shall be ensured that theperson in charge aware this procedure well.

Auditor Comments and Conclusion

corrective action verified and accepted implementation verified by submitted documents

implementation verified on-site the effectiveness of corrective action will be verified in next audit

Date of verification:14.11.2011 Auditor(s) sign:


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Criterion 2.1


Major 2. Evidence of efforts made tocomply with changes in theregulations.


There was a change in the regulation, but actually no evidence of efforts made to comply it. For example, Undang-

Undang No. 23/ 1997, which was changed to Undang-Undang No. 32/ 2009. Other relevant regulation was also not

identified, such as UU 18/2008, Permen 02/2008, KepmenLH No.23/2003, PermenLH 18/2009, Kep.Gub. Jambi No.

417/Dissosnakertrans/2010, Kep.Bupati Batang Hari 117/2011, etc.


Correction:

To put the regulationin the List of Regulation and Law (PIC: Suheimi. Target: Week-2, November 2011)

Corrective Action:

To monitor thenew regulation and law and evaluate its compliance periodically (PIC: Suheimi, Target: continuous)

Auditee sign:



Corrective action verified and accepted. Monitoring of compliance evaluation shall be approved by otorized person




Date of verification:14.11.2011 Auditor(s) sign:


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Criterion 5.2

The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill

Minor 1. Posters and signs warning of the presence of protected species are to be produced, distributed, and made visible to all workers and the community, including guidelines in handling them


Posters and signs warning of the presence of protected species was not distributed in field area, only visible in office area


Correction:

Posters and signs warning of the presence of protected species will be distributed to relevant area where applicable

Corrective Action:

Person in charge for HCV will identify all area of HCV and put the HCV’s poster and sign in each area respectively

Auditee sign:



Penjelasan dapat diterima dan akan dilakukan pemeriksaan pada audit surveilance berikutnya




Date of verification: 14.11.2011 Auditor(s) sign:


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

Minor: 2. Records of wastemonitoring/analysis.


Monitoring/analysis of waste water from washing of pesticide’s sprayer clothes and fertilizer plastic bag was not available.


Correction:

Waste water from washing of pesticide’s sprayer clothes and fertilizer plastic bag will be measured in laboratory before

discharged to environment and the result of measurement will be monitored periodically.

Corrective Action:

Environment, Safety, and Health Commission will be in charge to measure and monitor all waste water from all actiities

before discharged to environment, both in mill iand plantations. It will be ensured that the result of measurement will be

monitored periodically.

Auditee sign:



Corrective action verified and accepted. Result of monitoring will be verified at Surveilance audit.




Date of verification: 14.11.2011 Auditor(s) sign:


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3.2.2 Resume of Audit Results

Table 3-2Resume of Audit Results

Indonesian National Interpretation of RSPO Principles and Criteria

P&C 1.1 1.2 2.1 2.2 2.3 3.1 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 5.1 5.2 5.3 5.4 5.5 5.6 6.1 6.2 6.3 6.4 6.5 6.7 6.8 6.9 6.10 6.11 7 8.1

Status

1 1 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 NA 1

#NC 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 - 0

NOTE: Audited:“1”Conforming; “2” Minor Non-Conformity; “3” Major Non-Conformity;“NA” not applicable, “#NC” : Number of Non-Conformities found

AUDIT OUTCOME

During this audit, 2 Non-ConformitiesMAJOR

2 Non-ConformitiesMINOR

3.3 Issues Raised by Stakeholders

Stakeholder meeting was held onJune 27, 2011 at Muara Bulian office. The subjects raised and responded

by the company will be reviewed at the first annual surveillance assessment. Subject discussed during the

stakeholder meeting were:

(1) Knowledge of RSPO;

(2) Benefits of the existence of palm oil plantation IIS on the community;

(3) Problems experienced related to the presence / activities of the garden;

(4) The solution to address the problems that occur.

The results of stakeholder meetings are as follow:

1. Participants in general stakeholders meeting have been informed regarding RSPO issues, although

their understanding varied between. Participants who are relatively more aware RSPO mainly

participants closed to plantations, such as labor associations, the village chief, and the chairman of

KUD. They knew this RSPO information from the management of IIS at stakeholders meeting

conducted earlier.

2. Participant of stakeholders meeting stated that the existence of oil palm plantation under IIS has

provided benefits to society.

3. The perceived benefits include:

a. Marketing palm fruit (FFB): KUD can sell their FFB to PT IIS with good price


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b. Provision of employment, both directly related to maintenance activities and the cultivation of

oil palm. Indirectly through partnership such as procurement of equipment, workmanship

maintenance of facilities (roads, bridges, building / office). It is also recognized by the

representatives of the Social Service and the local Labor.

c. Increasing the economic life of the community.

d. Improved local economy, especially felt by the plasma through the ownership of the garden.

Their lives better than before it became plasma. It was recognized as well by the Head of

Plantations people who know the initial conditions (plasma) when opening the garden

compared with current conditions. Indicators of economic improvement, among others, the

condition of the building houses, possession of motor vehicles, both motorcycles and cars.

Currently almost all plasmas have a motorcycle, and pretty much have to own a car. Another

indicator is many childrencan attend to school.

4. Corporate Social Responsiblity (CSR) Program

a. Improvement of road infrastructure

b. Roads connecting villages periodically repaired by the company in accordance with the priority

scale. These improvements generally through the hardening of the direct path of the company,

or through the help of heavy equipment to the public.

c. Improvement of the health service

d. Health facilities / clinics owned company located in the location of the garden provide health

care services not only to employees but the community gardens around the garden, especially

plasma.

e. Contribution the great days of national and religious and other activities

f. The company provides assistance in cash or in kind for religious activities (Idul-Fitr, Eid al-

Adha) and national holidays (Agustusan). Assistance is generally provided on the basis of

public demand through the proposals. In addition to religious activities and national holidays,

the company also provides assistance for specific activities in accordance with the proposals

of stakeholders, such as lighting facilities on the post BKPM.

g. Educational assistance

h. Company gave contribution for educational activities, among others, elementary school

teacher salary (for teachers), textbooks (Pelita Reader program), training library managers,

rehabilitation of school buildings: a classroom and toilets (Pelita Safe program), sanitation,


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clean water (Pelita program healthy), and the Pelita program Asri (comfort of the school

environment), assistance for high school computer 2, the assistance of teachers from the

company for taught courses in the local content (education plantations), cattle assistance to

high school 2 as a media practice of organic fertilizer and maintenance / livestock farming,

transportation assistance for student employees. PT IIS in collaboration with Foundation

Tanoto (Tanoto Foudation), especially for scholarship program to continue studies for

basic,medium, or higher level education.

5. Problems associated with the presence or activity of the plantation

Some of the problems that arise, whether experienced or known to stakeholders include:

a. Almost all KUD complained about the additional cost of transporting FFB, beyond the cost of

loading and unloading which has been agreed between the plasma and associated transport

services. There was an additional costs charged to the plasma so it was very detrimental to

the plasma.

b. There is often a long queue in the sale of FFB to the mill. This queue could be up to three (3)

days. This condition is very detrimental to the plasma because will be declining the quality of

FFB, so that the price FFB will be reduced.

c. Roadcondition. Condition of roads is also interfere children school activities, especially in

case of rainy season. The majority of students were elementary and some 123 junior school

(in the SP 3 and SP 4) and high school (in SP 4). In this case the children does not go to

school in rainy season, because the roads are slippery and damaged and it was difficult to

pick up them

6. The results of the meeting with the management of PT IIS

This meeting was conducted to clarify and verify some things related to the stakeholder meeting

mainly clarifications and solutions that have made the management of PT IIS to the problems

disclosed stakeholders meeting participants. The results of the meeting / clarifications presented

the management of PT IIS as follows:

a. Additional fee beyond the cost of transport (loading and unloading) as expressed in

stakeholders meeting recognized indeed occur. This happens because of the transportation

services are incorporated in the SPTI (Transport Workers Union Indosnesia) are beyond the

authority of the management of PT IIS. Legally, their existence (SPTI) is listed in the local

government, and monopolizes transportation FFB. The management of PT IIS has facilitated

meetings between both parties (smallholdersand SPTI), but until now the plasma / farmer


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groups are not "brave" and not willing to attend because they feel fear and worry SPTI

brought their FFB . The management of IIS already raised those matters to the leadership /

management of SPTI, but the management of SPTI stated that additional fee was not a

management policy of SPTI.

b. PT IIS will repair road infrastructure according to ability and corporate priorities, as most

roads are actually the responsibility of local government.

7. Suggestions / recommendations:

a. The information of RSPO needs to be socialized more intensive through media such as

information boards around the plantation offices. Sosialization and communication can be

done through meetings or activities such as public anniversaries, religious holidays, or

visiting to community.

b. IIS will be improved public facilities such as village offices (kantor desa), schools, clinics, and

others in coordination with local government.

c. Settlement of the issue of additional cost should be resolved and sought the best solution

that mutually benefits both the plasma and transport entrepreneurs. This activity should be

facilitated by PT IIS management by involving farmers / smallholders /KUD - SPTI - local

government.


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3.2.3 Noteworthy Positive Components

a. Transparent information for public and compliance of relevant law and regulation.

Company has commitment of transparancy of information and documents that available for public and

effort to comply relevant law and regulation, such as monitoring RKL/RPL(Environmental Management

and Monitoring Reports), Report of Toxic and Hazardous Waste, Hak Guna Usaha/HGU (Land Use Title),

Izin Lokasi (user rights/Site Permit), Izin Usaha Perkebunan (Plantation Operation Permit), Identifikasi

HCV (HCV identification), Surat Ijin Pengambilan Air Tanah/SIPA (underground water use permit),

Current FFB prices, etc (See 1.2 and 2.1)

b. Economic improvement

Economic improvement was noted in the Annual Budget, both for Tungkal Ulu and mills and plantations.

It covers a minimum period of 3 years which include production forecast, operating cost production cost.

Company put the target of mills and plantations production will be improve from year to year, and there

was target set up for at least 3 years. (See 3.1)

c. Water management plan

The plan includes the maintenance of culverts and construction of proper storm drains and silt pits to

control any surface run off from entering into water courses

d. Implementation of Integrated Pest Management (IPM)

There was a serious attention given by IIS management for implementing integrated pest management

(IPM). This action was taken in order to reduce dependency on chemicals, through introducing and

expanding the beneficial plant establishment such as Turnera Subulata, Euphorbia Heterophylla, and

Casia Cobanensi. IPM also includes establishment of barn owl boxes around the plantation. Management

was comitted that the program will be improve continuously

e. Decrease of use of restricted chemicals, such as paraquat (4.6)

Management has committed to further reduce paraquat Usage and looking for alternatives of paraquat.

The usage was gradually reduced since 2009-2010 and will be continued through Paraquat (i.e.

Gramoxone) Reduction Program, from 2011 until 2014.

f. Environmental Management (5.1)

In compliance with the Principles and Criteria 5.1, PT Inti Indosawit Subur has developed Environmental

Management System, containing these documents:


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- Environmental Policy

- Environmental Impact Assessment (EIA)

- Environmental Management Plan (RKL)

- Environmental Monitoring Plan (RPL)

- Report of RKL / RPL quarter.

- Waste Identification and Risk Analysis

- The procedure set out in the EHS SOP related to the environment.

- Document management of waste, emissions and pollution

g. High Conservation Value/ HCV (5.2)

In compliance with RSPO Principles and Criterion 5.2, PT Inti Indosawit Subur develop management

systems that have an area of high conservation value as part of company policy to preserve natural

resources. This system is part of the overall management system, in line with Environmental

Management System and include:

- Conservation Policy

- Identify areas of High Conservation Value /

- The organizational structure of the management of HCV

- Mapping areas of HCV

- Procedure / SOP management of HCV areas

- Work plan the management of HCV

- Document management of High Conservation Value Areas (KBKT)

i. Internal Audit

To ensure that all activities are running properly, RSPO Team Management conducted monitoring of mill

and plantation operations through an Internal Audit. During August to Novemebr 2011 there was two

times Internal Audit by Medan Head Office, and reported in Internal Audit Report, Number KTU/VA/FULL-

02.11and PTU/VE/FULL/03.09


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4 Certified Organization’s Acknowledgement of Internal Responsibility

4.1 Formal Sign-off of Assessment Findings

I the undersigned, being the legal representative of the inspected company, agree with the contents of this

report and accept the liability in execution of the instructions given in the report.

Signed for and on behalf of

PT. INTI INDOSAWIT SUBUR

Jakarta -March 6, 2012

Head of Operations, Environment and Sustainability

(Omri Samosir)

Signed for and on behalf of PT. TÜV NORD Indonesia – System Certification Management

Jakarta -March 6, 2012

Lead Auditor

(Anita Masduki)


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Attachment A.List of Abbreviations

AMDAL Analisis Mengenai Dampak Lingkungan

(Environmental Impact Assessment)

OER Oil Extraction Rate

BOD Biological Oxygen Demand OPRS Oil Palm Research Station

BPN Badan Pertanahan Nasional (National Land Body) OSH Occupational Safety and Health

CPO Crude Palm Oil OSHAS Occupational Safety and Health Assessment Scheme

CSR Corporate Social Responsibility P&C Principle and Criteria

EFB Empty Fruit Bunch PEFC Program for the Endorsement of Forest Certification

EMS Environmental Management System PK Palm Kernel

FFB Fresh Fruit Bunch PKB Perjanjian Kerja Bersama (Collective Agreement)

GPS Global Positioning System POME Palm Oil Mill Effluent

HCV High Conservation Value PPE Personal Protective Equipment

HCVF High Conservation Value Forest PT Perseroan Terbatas (Limited Company)

HGU Hak Guna Usaha (Land Right) R&D Research and Development

HIRA Hazard identification and risk assessment RKL Rencana Pengelolaan Lingkungan Hidup

(Environmental Management Plan)

IPM Integrated Pest Management RPL Rencana Pemantauan Lingkungan Hidup

(Environmental Monitoring Plan)

IUP Ijin Usaha Perkebunan (Land use permit) RSPO Roundtable on Sustainable Palm Oil

Jamsostek Jaminan Sosial Tenaga Kerja (Social Insurance for Employees)

RSPO NI Roundtable on Sustainable Palm Oil National Interpretation

Kapospol Kepala Pos Polisi (Head of Police Station) SA8000 Social Accountability 8000

MOU Memorandum of Understanding SIA Social Impact Assessment

KUD Koperasi Unit Desa (Village Cooperatives) SOP Standard Operating Procedure

MSDS Material Safety Data Sheet UKL Upaya Pengelolaan Lingkungan Hidup

(Environmental Management Effort)

NC Non Conformity UPL Upaya Pemantauan Lingkungan Hidup

(Environmental Monitoring Effort)

RSPO CERTIFICATION ASSESSMENT PUBLIC … · RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT ......

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