st-1 13 – 17 may 2013 oktovianus rusmin, bukti bagja rudi ramdani, moh. arif yusni,naila karima...

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management/Owner : IVOMAS TUNGGAL

Plantation Name : Bumi Palma POM

PT BUMIPALMA LESTARIPERSADA

Location :

Bagan Jaya Village, Sub District of Tempuling,

Indragiri Hilir District, Riau Province, Indonesia

Certificate Code : MUTU-RSPO/xxx

Date of certificate issue : -

Date of certificate expiry : -

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

by

ST-1 13 – 17 May 2013 Oktovianus Rusmin, Bukti Bagja

Rudi Ramdani, Moh. Arif Yusni,Naila Karima Octo HPN

Nainggolan Taufik Margani

ST-2 22 – 27 July 2013

M. Syarip Lambaga, Oktovianus

Rusmin, Muardi Marwas,

Ardiansyah, Rudi Ramdani

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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Assessment Submitted

to RSPO on: Approved

by RSPO on: Approved

by MUTUAGUNG LESTARI on:

ST-2 23 October 2013 - -

http://www.mutucertification.com/

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Bumipalma POM – PT Bumipalma Lestari Persada, Ivomas Tunggal

TABLE OF CONTENT

FIGURE

Figure 1. Location Map Figure 2. Operational Map

1 2

1.0 SCOPE OF THE CERTIFICATION

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Mill, Plantations and Area Statement 3

1.5 Description of Supply Base 4

1.6 Dates of Plantings and Cycles 5

1.7 Approximate Tonnage Certified 5

1.8 Other Certifications 6

1.9 Time-Bound Plan for Other Management Units 7

2.0 ASSESSMENT PROCESS

2.1 Certification Body 8

2.2 Assessment Team 8

2.3 Methodology, Process and Locations of Assessment 8

2.4 Stakeholder Consultation and List of Stakeholders Contacted 11

2.5 Determining Next Visiting 11

3.0 ASSESSMENT RESULT

3.1 3.2

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

12 42

3.3 Conformity Checklist of Certificate and Logo Use 45

3.4 Summary of RSPO Partial Certification 46

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

47

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 54

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 62

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 63

2. Assessment Program 64

3. Glossary 66

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 1 Prepared by Mutuagung Lestari for Bumipalma POM – PT Bumipalma Lestari Persada, Ivomas Tunggal

Figure 1. Location Map of PT Bumipalma Lestari Persada

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 2 Prepared by Mutuagung Lestari for Bumipalma POM – PT Bumipalma Lestari Persada, Ivomas Tunggal

Figure 2. Operational Map of PT Bumipalma Lestari Persada

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 3 Prepared by Mutuagung Lestari for Bumipalma POM – PT Bumipalma Lestari Persada, Ivomas Tunggal

1.0 SCOPE OF THE CERTIFICATION

1.1 National Interpretation Used National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008 and RSPO Supply Chain Certification Standard November 2011.

1.2 Organization Information

1.2.1 Company name IVOMAS TUNGGAL

1.2.2 Contact person Ismu Zulfikar

1.2.3 Company address and site address Head Office : Sinar Mas Land Plaza, Tower II, 30th Floor Jl. MH Thamrin No. 51, Jakarta 10350, Indonesia Phone: +62-21-5033 8899. Fax: +62-21-5038 9999 Site : Estate & Mill: Bagan Jaya Village, Sub District of Tempuling, District of Indragiri Hilir, Riau Province

1.2.4 Telephone (+62-21) 318 1388

1.2.5 Fax (+62-21) 318 1389

1.2.6 E-mail [email protected]

1.2.7 Web page address www.smart-tbk.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

Ismu Zulfikar (Head of Environmental Departement)

1.2.10 Registered as RSPO member 1-0056-08-000-00, 17 June 2008

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm Oil Mill and supply base

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT BUMIPALMA LESTARIPERSADA

1.3.4 Number of management unit 1 (one) unit of palm oil mill (Bumi Palma POM) which is supplied by 3 (three) estates: Bumi Palma Estate (BPME), Bumi Lestari Estate (BPLE), dan Bumi Sentosa Estate (BSNE)

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Bumi Palma POM Bagan Jaya village, sub district of Tempuling, district of Indragiri Hilir, Riau Province

0°35‟ 53" S 102° 59‟ 00" E

mailto:[email protected]

http://www.smart-tbk.com/


ASSESSMENT REPORT


1.4.2 Location of Supply Base

Name of Supply Base Location

GPS

Latitude Longitude

Bumi Palma Estate Bagan Jaya village, sub district of Tempuling, district of Indragiri Hilir, Riau Province

0°36‟ 14" S 102° 59‟ 19" E

Bumi Lestari Estate Pebenaan village, sub dictrict of Kritang, district of Indragiri Hilir, Riau province

0°35‟ 59" S 103° 01‟ 35" E

Bumi Sentosa Estate Suhada village, sub district of Enok, district of Indragiri Hilir, Riau province

0°39‟ 11" S 102° 55‟ 54" E

1.4.3 Tenure

Private -

State 6,689.80 Ha

Community -

1.4.7 Area Statement

- Total area 6,689.80 Ha

- Mature Area 4,272.68 Ha

- Immature Area 1,818.50 Ha

- Mill 12.72 Ha

- Infrastructure 532.71 Ha

- Housing 38.69 Ha

- Nursery 14 Ha

- Occupation 0 Ha

- HCV 0.5 Ha

- Total area 6,689.80 Ha

1.5 Description of Supply Base

1.5.1 Description of Mill

Name of Mill Capacity

(tones/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tones)

Extraction (%)

Out put (tones)

Extraction (%)

Out put (tones)

Extraction (%)

Bumi Palma POM 30 142,655 28,248 19.80 7,361.56 5.16 - -

*Production data on August 2012 –July 2013

1.5.2 Description of Estates

Name of Estates

Total Area (Ha)

Planted Area (Ha)

FFB Production

(tonnes/year)

Yield (tonnes/ha/year)

FFB Supplied to Mill

(tonnes/year) %

Bumi Palma Estate 3,000.21 2,744.22 39,812.67 14.5 39,812.67 27.9

Bumi Sentosa Estate 1,860.51 1,703.98 33,948.87 19.92 33,948.87 23.79

Bumi Lestari Estate 1,829.08 1,642.98 18,303.09 11.14 18,303.09 12.83

TOTAL 6,689.8 6,091.18 92,064.64 19.16 92,064.64 64.53

*Production data on July 2012–June 2013


ASSESSMENT REPORT


1.5.3 Smallholders and other source

Name of sources Members Location

Total Area (Ha)

FFB (tonnes/year)

FFB Supplied to Mill

FFB (tonnes/year)

%

PT.AGROTUNGGAL JAYAMANDIRI

- Rumbai Jaya - 6456.77 6456.77 -

HARIANTO ( HRTX ) - Bagan Jaya - 11,596.56 11,596.56 -

MUHSIN ( GMSX ) - Pasir Penyu INHU - 5,643.65 5,643.65 -

AMBOK ASSEK (AASX ) - Bagan Jaya - 7,380.53 7,380.53 -

Koperasi Usaha Manunggal IDSA DIV -01

- District of Indragiri Hulu 732 1,499.99 1,499.99 -

IDSA DIV -02 (KLT.SEJAHTERA )


Koperasi Hidup Baru (IDSA DIV -03)


IDSA DIV -04 ( KLT.SUMBER REZEKI )

- District of Indragiri Hulu 1,067 5,968.76 5,968.76 -

Koperasi Belilas Mandiri (IDSA DIV -07)

- District of Indragiri Hulu 275.50 895.44 895.44 -

Koperasi Setia Kawan (INDA -TBS- 02)

- District of Indragiri Hulu 768 54.30 54.30 -

Koperasi Anggrek (INDA -TBS- 01)

- District of Indragiri Hulu 1,330.50 557.43 557.43 -

Koperasi Milik Bersama (INDA -TBS- 04)


Koperasi Rahayu Makmur (INDA -TBS- 03)

- District of Indragiri Hulu 1,062 63.71 63.71 -

Koperasi Tunas Harapan (INDA -TBS- 06)


Koperasi Morgo Mulyo (IDLA - TBS -07)


Koperasi Jaya Bersama (IDSA - TBS -08)


Total 50,590.68 50,590.68 35.46

*Bumipalma Mill received FFB from other source(outside the core estate)

1.5.4 Product categories FFB/CPO/PK

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year Hectare

Bumipalma Estate (Ha)

Bumilestari Estate (Ha)

Bumisentosa Estate (Ha)

Total (Ha)

1992 590.90 - 348.13 939.03

1993 403.78 350.02 541.57 1,295.37

1994 114.89 408.73 716.08 1,239.70

1995 - - 98.20 98.20

1997 96.39 - - 96.39

1998 30.77 - - 30.77


ASSESSMENT REPORT


1999 - 104.53 - 104.53

2001 - 15.92 - 15.92

2005 223.29 - - 223.29

2009 229.48 - - 229.48

2011 213.55 317.82 - 531.37

2012 575.02 233.21 - 808.23

2013 266.15 212.75 - 478.90

TOTAL 2,744.22 1,642.98 1,703.98 6,091.18

1.6.2 New Planting area after November 2007 - Ha

1.6.3 Planting Cycle 1st/2nd Cycle 25 Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production - Tonnes/year

CPO Production - Tonnes/year

Palm Kernel (PK) Production - Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estates Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Bumi Palma Estate 3,000.21 2,744.22 41,803.31 15.23

Bumi Sentosa Estate 1,860.51 1,703.98 35,646.31 20.91

Bumi Lestari Estate 1,829.08 1,642.98 19,218.25 11.69

TOTAL 6,689.8 6,091.18 96,667.87 15.67

*Projection of FFB Production 2013

1.7.3 Claim Certified Tonnage of Palm Product

Name of Mill Capacity

(tones/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tones)

Extraction (%)

Out put (tones)

Extraction (%)

Out put (tones)

Extraction (%)

Bumi Palma POM

30 96,667.87 19,816.91 20.50 5,075.06 5.25 - -

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others SMK3 Gold Flag No reg 0178/787/Sucofindo/2012 dated April 23rd 2012


ASSESSMENT REPORT


1.9 TIME BOUND PLAN FOR OTHER MANAGEMENT UNITS

MANAGEMENT UNIT LOCATION

Hectarage (Ha) *)

Time Bound

Status

P O M Estate (Supply Base)

SAMSAM POM PT. Ivomas Tunggal Sub District of Kandis, District of Siak, Riau Province

9,717 2009 Certified Certified

LIBO POM PT. Ivomas Tunggal Sub District of Kandis, District of Siak, Riau Province


UJUNG TANJUNG POM

PT. Ivomas Tunggal Sub District of Kandis, District of Siak, Riau Province


NAGA SAKTI POM PT. Buana Wiralestari Mas

Sub District of Tapung, District of Kampar, Riau Province


KIJANG POM PT. Buana Wiralestari Mas

Sub District of Tapung hilir, District of Kampar, Riau Province


RAMARAMA POM PT. Ramajaya Pramukti Sub District of Tapung hilir, District of Kampar, Riau Province


INDRASAKTI POM PT. Meganusa Intisawit Sub District of Rakit Kulim, District of Indragiri Hulu, Riau Province

15,172.23 2011 Audited 2013

BUMI PALMA POM PT Bumipalma Lestaripersada

Bagan Jaya village, sub district of Tempuling, district of Indragiri Hilir, Riau Province

6,689.80 2012 Audited 2013

- PT. Sawitakarya Manunggal

Provinsi Kalimantan Selatan 6,763 2015 Planned 2015

IVOMAS TUNGGAL operates 8 mills and 54 estates in Indonesia and has achieved RSPO certified for 6 mills and supply base in Indonesia. IVOMAS TUNGGAL has informed the Time Bound Plan progress, MUTUAGUNG has considered that Golden Agri Resources Ltd is comply with the RSPO requirement for Time Bound Plan.


ASSESSMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

Telp. +62-21-8740202; Fax +62-21-87740745/46

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

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

ST2 Assessment team: 1. Oktovianus Rusmin (Lead Auditor Witnesser) Bachelor‟s Degree in Social & Political Sciences Department of

Anthropology. Specialists in the field of Social and Cultural (Social Impact & Conflict Resolution) and HCVF. Followed the Forest Management Auditor Training (FSC Standard), ISO 14001 Environmental Management System Training & SVLK (wood legality) auditors. He was several times involved in the assessment of Sustainable Forest Management Certification (Standard LEI). Had worked at the Center for the study of Anthropology, University of Indonesia; and experts to the field of Social Tropical Forest Trust (TFT) Indonesia. He was numerously involved the Social Impact Study and Identification HCV in Oil Palm Plantations and natural forest concessions. In this assessment activity, he was Lead Auditor Witnesser.

2. M. Syarip Lambaga (Lead Auditor Witnessed) Bachelor of Agriculture from UNHAS, Master of Science Program Post Harvest Technology of IPB, trainings have been followed among others, Lead auditor training RSPO, In House Training for ISO 9000 and 14001 Lead Auditor Training SFM as Social Expert, ISO 22000 Lead Auditor Training, ISPO Lead Auditor Training, and Malcolm Baldrige Training. Having experience in the plantation of more than 5 years, and experience as a food safety auditor for more than 5 years, team members evaluator SNI BSN Awards, and as a team member for socialization RSPO smallholder and large estates conducted by DMSI 2006-2009. In this assessment activity, he conducted assessment of legality, environmental aspect(s) and best management practice.

3. Rudi Ramdani (Auditor) Bachelor of Agriculture Majoring in Agronomy, Agriculture Faculty of Bogor Agriculture Institute. He has working experienced more than 2 (two) years as an operational staff in private oil palm plantation company in Indonesia. Several training he has followed namely: Indonesian Sustainable Palm Oil auditor, Awareness RSPO, Management System Certification (ISO 9001-2008) training. In this assessment activity, he conducted assessment of best management practice, fire prevention and worker welfare.

4. Muardi Marwas (Auditor) Bachelor of Agriculture Bogor Agriculture Institute. Attended RSPO and ISPO Assessment in Indonesia. He had been trained Lead Auditor RSPO and Witteness Distribution Quality Management Process (DQMP) APMEA. Right now, he works as auditor in independent Certification Body. In this assessment activity, he conducted assessment of mill best management practice, fire prevention, management of hazardous material and environmental aspect.

5. Ardiansyah (Auditor) Bachelor of Forest Resources Conservation, Department of Forestry, Bogor Agricultural University. He has followed the Management System Certification (ISO 9001-2008), followed several activities such as preparing EIA document for plantation and plantation forest; contribute on several HCV identifications and several times following audit activities related to sustainable palm oil certification system as an auditor. In this assessment activity, he conducted assessment of hazardous material management, pollution & emission source.

2.3 Methodology, Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

ST2 Number of auditors: 4 Auditor Number of days for ST2: 6 days Number of working days for ST2 at site: 24 working days

2.3.2 Detail process of assessment

ST2 Assessment is conducted to measure adequacy of implementation and consistency performed by PT Bumipalma Lestari Persada – Bumipalma Mill to the requirement of National Interpretation of Republic of Indonesia from RSPO

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT


Principle and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008 and Supply Chain Requirement for CPO Mill). Assessment is performed in three methods: (1) Document review, aims to observe the adequacy of documentation; (2) Interview with the internal stakeholders (workers, worker union, management representatives) and external stakeholders (government, NGOs, and relevant village community) to obtain more detailed information to the company performance, and (3) field observation, aims to directly observe the adequacy of implementation in the plantation unit to meet the required standardization. Some of the opportunities for improvement from ST2 are presented by MUTU auditor to the management unit and the result is the part that will be observed on the next visit of Surveillance-1 (S-1). All information obtained is recorded and becomes a part of Mutuagung Lestari (MUTU). The assessment program can be found in Attachment 2.

2.3.3 Locations of Assessment

ST-2 The scope of this certification was 1 POM and 3 Estate which supply raw material (FFB) namely Bumi Palma Estate (BPME), Bumi Lestari Estate (BPLE), and Bumi Sentosa Estate (BSNE). In the assessment process, the auditor team used 0.8√y formulation to determine estate sampling for the focus of assessment. Based on this formulation, auditor team then determined sampling estate for all estate suppliers. The complete location for assessment is described below: a. Bumi Palma Estate, Division II & III

- Housing. The assessment in this location was also focused to the observation of housing facilities and other supporting facilities. The result of observation showed that there were several other supporting facilities around the housing area of workers, such as: praying house, sport hall, day care, kindergarten, elementary school, and junior high school.

- Office. Simulation of land firefighting. All equipments for firefighting were in good condition and well functioned.

- Interview with a teacher of the second grade and headmaster of Pesifera Elementary School PT BPLP. Based on the interview result, this school was built in 1997. School building construction, operation cost, and teachers salary are fully paid by the company. The students in this school come from several divisions in PT BPLP and their parents do not need to pay school fee except uniform and sport apparel. There is also bus school for students from other divisions.

- Interview with a wife of worker. Based on the interview result, houses in this housing area have electricity supply (in the morning 04.00 – 06.00, afternoon/night 18.00 – 24.00) and clean water supplied by the company. Each house has trash bin for temporary waste storage. It will be then transported to the landfill. There are several prohibition not to burn any trash. Based on the interview with several visited housing occupants, they were quite understood about this prohibition.

- Interview with 3 nurses at the day care. Based on the interview result, several workers‟ kids were stayed at 05.30 – 14.00. While their parents working and having a rest at the estate, these kids are learning simple lessons such as introduction to letters and numbers.

- Block C1. Field observation related with monitoring of peat moss water level by using pizzo meter and water level; and observation to the presence of owl in the barn owl box.

- Block C10. Field observation related with peat land decreasing process by using peat subsidence. - Block H09, Division II. Field observation related with the management of HCV 6. The company has provided

boundary poles at the HCV area and HCV sign board. - Block A04 Division III. Observation and interview with the supervisor of harvesting, workers of harvesting,

related with the use of Personal Protective Equipment (helmet, mask, gloves made of rubber, apron boots), first aid on working accident, availability of first aid kit at the field, payroll and working day, workers union and service, and workers health security.

- Block D1 and E1 Division III. Observation and interview with field officers related with immature plan maintenance activity such as: manual fertilization, circle maintenance activity and plant disease control such as ferotrap installation, disease census activity and manual control of Oryctes sp.


ASSESSMENT REPORT


b. Bumi Lestari Estate, Division I & II - Housing at Division I and Division II. The observation at this location was also focused for the observation of

housing facilities and other supporting facilities. The result of observation showed that there were several other supporting facilities around the housing area of workers, such as: praying house, sport hall, day care, and clinic. There was trash bin in every house and prohibition around the housing area not to burn any trash.

- Office. Simulation of land firefighting. All equipments for firefighting were in good condition and well functioned.

- Interview with 3 nurses at the Pondok Lestari Day Care in Division I and II. Based on the interview result, several workers‟ kids were stayed at 05.30 – 14.00. While their parents working and having a rest at the estate, these kids are learning simple lessons such as introduction to letters and numbers. There is a neighborhood health center conducted by the team from Central Clinic. It is conducted every month. The activity at the neighborhood health center is conducted every month and there is supplementary feeding to children.

- Hazardous material warehouse, Division I, the auditor inspected warehouse of chemical material and spraying worker‟s equipments. Hazardous waste symbol was installed so workers can easily recognize it.

- Hazardous material warehouse, Division III, the auditor inspected warehouse of chemical material and spraying worker‟s equipments. There was a used packaging of pesticide that was not managed in accordance with the procedure.

- Interview with 4 freelance FFB harvesters. According to them, they have had health insurance (Labor Social Assurance/Jamsostek). The wage of contract worker is depending on their job performance. The company has determined payroll system for this type of job.

- Interview with the supervisor of estate (Hendra). He explained about the mechanism of worker medical checkup especially for spraying officer and infectious waste handling. Extra infectious waste from the maintenance activity was stored and then delivered to the hospital to be dissolved. However, this waste was stored for a long time (6 months) and it was not delivered to the charged management.

- Along the side of observation, vetiver grass was planted massively along the canal. - Generator house at Division III. There were chemical material directly spills on the ground. - Block H5, Division I. Field observation related with monitoring of peat moss water level by using pizzo meter

and water level; monitoring of peat moss land decreasing by using peat subsidence and observation to the presence of owl in the bird nest.

- Block H05 Division I. Observation and working interview with the supervisor of harvesting, workers of harvesting, and fresh fruit bunches harvester related with the use of Personal Protective Equipment (helmet, mask, gloves made of rubber, apron boots), first aid on working accident, availability of first aid kit at the field, payroll and working day, workers union and service, and workers health security.

- Block H06 Division II. Observation and working interview with the supervisor of spraying about a safe working technique before, during, and after working, the use of Personal Protective Equipment (helmet, mask, gloves made of rubber, apron, boots), first aid on working accident, availability of first aid kit at the field, payroll and working day, the presence of gender commission, H1 (period leave) & H2 (maternity leave) rights, the presence of workers union and service, and workers health security. There was also an observation to the presence of the host plant biological control of pests (Turnera subulata and Antigonon leptosus).

- Block L08 Division II. Observation of immature area related with the presence of legume cover crop, water management, pest control such as ferotrap installation and other pest control technique, and the presence of beneficial plant (Turnera subulata).

c. Bumi Palma Palm Oil Mill

- Waste Water Pond. Liquid waste was managed at the Waste Water Treatment Plant before being disposed to the water. This Waste Water Treatment Plant consist of 4 ponds (each pond has 4 sub ponds), tertiary canal, and main canal. The mill analyzed the quality of liquid waste by involving internal laboratory and sucofindo laboratory. The BOD was maintained below its quality standard in accordance with the valid regulation before being disposed to the water. There was one sampling point at Pond 4a. There was no runoff/liquid waste leakage directly from the estate.

- Fireplace. The mill operates 3 fireplaces and the quality of all of them had been tested. - Boiler and generator. The mill operates 2 boiler and 3 generators. The quality and emission of all of them

had been tested


ASSESSMENT REPORT


- Fire control simulation. The auditor inspected the readiness of 2 hydrants and their fire fighter team. These two hydrants were good to be used.

- Kernel Station and Machine Room. Interview with machine and boiler operator. According to the statement, Personal Protective Equipments (earmuff, helmet) are provided by the company. The operator has earned the permit of machine operation from the related agency.

- Warehouse of Hazardous Waste. The warehouse store waste from the operational activity at 3 estates. Its allocation has been permitted by the regent. The symbol of Hazardous Waste was also installed. Hazardous Waste was delivered to PT Primanru Jaya as the licensed collector of waste.

- The process of palm oil is started sortation of FFB in the outside area of estate to purification process (clarification) into CPO product.

- Interview with Worker Union.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

ST2 Tim auditors conduct public consultation in two main ways, namely : - Send notification letter to the NGO consultation Peat Society Network Riau 1 week prior to the audit - Conduct site visits and discussions with stakeholders (stakeholders) on June 23, 2013 as follows:

2 members of the team made visits to government agencies in consultation Indragiri Hilir (BPN, the Environment Agency, Department of Agriculture, the Department of Labor).

3 team members in consultation with the internal stakeholders (trade unions, women's cooperative board and commission) and external stakeholders PT. BPLP (residents, village officials, community leaders and youth, local businesses, the security forces).

Details of the results of the public consultation can be found in Appendix 3.4.

2.4.2 List of stakeholder contacted

Please find appendix 3

2.5 Determining Next Visiting

Surveillance-1 will be determined nine month after RSPO certified.


ASSESSMENT REPORT


3.0. ASSESSMENT RESULT

3.1. Summary of Assessment Report of the RSPO Certification

Mutuagung Lestari has conducted an assessment of Bumipalma POM – PT Bumipalma Lestari Persada, Ivomas Tunggal operation consisting of one (1) mill and three (3) oil palm estates. During the assessment, there were two (2) Nonconformities were assigned against Major Compliance Indicators (4.6.4; 5.3.2), four (4) non conformities were assigned against Minor Compliance Indicators (4.6.1; 4.7.6; 4.7.7; 5.6.1) and three (3) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in section 3.5. The company has already prepared and implemented the corrective actions that had been reviewed and accepted by Auditors in form of documentation evidences. Those corrective actions taken that consist of two (2) Major non-conformities and four (4) Minor non-conformities had been closed out shall be verified during next assessment. Mutuagung Lestari found that Bumipalma POM – PT Bumipalma Lestari Persada, Ivomas Tunggal complied with the requirements of RSPO Principles & Criteria and National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008. Therefore Mutuagung Lestari Recommends RSPO Certification of compliance is issued.

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

Information request is documented in communication book and/or information list book. In addition of information request documentation, the company also has provided information to the stakeholders. There is Information List Book for the stakeholders at the POM and Estate. It contains date of incoming mail, number, purpose, content of information mail, sender of information, and receiver of information. Based on the study of this communication and information book, there were several obtained information, as described below: - Bumi Palma Mill: there was no information request. However, there was an information provision by the company to the related

institution, such as: 1. Report of Hazardous Waste in the Second Quarter (Balance of Hazardous Waste and Logbook of Hazardous Waste) on

17 July 2013. 2. Quarterly report of liquid waste management on 17 July 2013. There is a minutes of meeting of handover document

composed by the POM on 8 July 2013. - Bumipalma Estate: there is one information request and most of the information requests were in the form of routine report

delivery by the company to the related institutions, as follow: 1. Quarterly report of Guiding Committee of Occupational Safety & Health on 11 July 2013. 2. Income and Calculation of Income Tax report on 19 June 2013. 3. Report of Labor Social Assurance for PT BPLP on 5 June 2013 by KTU BPME received by the staff of Labor Social

Assurance. 4. Information request from the Central Agency on Statistics from the Indragiri Hilir District number 14.033.434 on 21 June

2013 for survey activity of the estate in 2012. It has been recorded in BPME Information Book on 24 June 2013. - Bumipalma Lestari Estate: there was no information request but quarter report of Guiding Committee of Occupational Safety &

Health of BPLE which delivered on 10 July 2013. Based on the study to the communication book and information list, incoming mail is usually assistance request such as fund request for charity and village road reconstruction. There was an archive of information request letters and log book of information request and its response by stakeholder which stored at the office of SPO. Information request from the Central Agency on Statistics Indragiri Hilir District on 21 June 2013 has been responded by the Estate


ASSESSMENT REPORT


Manager of Bumipalma Estate on 24 June 2013 Number 192/BPME/PBRO/06/2013 addressed to the Accounting JKTO and copied to the related institution in order to immediately send the data of this related information request. Based on the SOP of Information Request and Response (Number of document: SOP/SPO/SMART/LH-01 on 1 July 2010) owned by the company, working phase section explained that if there is an information request from stakeholder which is not written in the document of “information list and related stakeholder”, top management must agree with undetermined time limit. The company has a SOP about the Monitoring and Retention Time of Document. The number of this document is SOP/SPO/SMART/LH-02 on 01 July 2010 which describe about the retention time of document that has been determined by the company. It ensure that all documents and records related with the implementation of SPO at the PT. Smart Tbk. are legal and to ensure that all documents and records are kept in relevant and controlled area. The retention time of document at the office of SPO is 5 years. Based on the circulated letter from the RC and PC of Indragiri (Number 01/SE-RC/PC/Indragiri /V/13), state that document which still needed for legal compliance was not disposed and it was kept as long as its validation.

Status:Full Compliance

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

There are information list that can be accessed by many parties: a. The number of employee b. The salary list of employee. c. List of employee and information related with land & building tax. d. Local tax/retribution payment. e. The study of EIA, Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL). f. Certificate of its establishment and change, data of area and production as well as fertilization application data. g. Evidence of land ownership such as certificate of land use title. h. HCV assessment report. i. Social assessment report. j. Social activity documentation.

There is a SOP of Document Control and Retention Time. The number of document is SOP/SPO/SMART/LH-02 on 01 July 2010 that describe about retention time of document that has been determined by the company to ensure that all documents and records related with SPO implementation at PT. SMART Tbk. Are legal document and record. It is also used to ensure that all documents and records are kept in relevant and controlled area. The retention time of document at the office of SPO is 5 years. There was also a circulated letter from Regional Controller and Production Controller of Indragiri District (The number is 01/SE-RC/PC/Indragiri/V/13). It is stated that document was still needed for legal compliance was not disposed and it was kept as long as its validation.


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

There is a List of Regulation, such as: 1. Occupational Health & Safety Section (173 Regulation) 2. Plantation Area Permit (51 Regulations) 3. Environment (59 Regulations)

- Not to burn area for land clearing and to have facilities and infrastructure for land fire control. It is in accordance with the Regulation of Agricultural Minister number 26 year 2007 paragraph 15

- To have Landfill of Hazardous Waste and to report waste balance in accordance with the Government Regulation number 18 year 1999

4. Manpower (100 Regulations) Evaluation to the implementation of these above legal requirements conformance is conducted every year. There is an evidence about conformance effort to the regulation related with the conformance of Riau Governor Regulation number


ASSESSMENT REPORT


67 year 2013 concerning minimum wage of 12 Regencies/Municipalities in Riau Province in 2013. It is stated in the appendix of this Riau Governor Regulation that minimum wage in Indragiri Hilir District is IDR 1,492,000,- /month. As an effort to the conformance of Riau Governor Regulation number 67 of 2012, a Decree about payroll system in 2013 has been determined. It was signed by the CEO on 5 April 2013 and this decree was valid since 01 January 2013. This decree explains about: - Decree number 053/CEO 5/HR PSM5/04/13 concerning wage of freelancer in 2013 in PT BPLP, the wage of freelancer is IDR

65.040/day. - Decree number 054/CEO 5/HR PSM5/04/13 concerning wage of daily contract worker (SKU-H) of PT BPLP, wage of contract

worker whose working period less than a year is IDR 1,509,000,-/month and whose more than a year is IDR 1,511,500/month. - Decree number 055/CEO 5/HR PSM5/04/13 concerning wage of monthly contract worker of PT BPLP in 2013. It determined

wage increasing as much as IDR 226,800,-, It is divided from the lowest group namely G8 as much as IDR 1,611,150,-/month and the highest group namely A1 as much as IDR 2,368,350,-/month.


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

The company able to prove a right to control and use land without any legal demand from the local community. In the land control and use, the company has had these following permits: 1. Agreement/Permit of Plantation Business Principle from the Minister of Agriculture of the Republic of Indonesia Number

HK.350/E4.59/01.89 on 24 June 1989. Reserve land: 15,800 Ha, Commodity: hybrid palm for 6,300 ha, rubber in 4,340 Ha and cacao in 2,000 Ha in Kerintang Sub District, Reteh Sub District, and Enok Sub District Indragiri District to PT. Pulau Sambu.

2. Agreement of area reserve from the Minister of Forestry Number 1562/Menhut-II/89 on 15 November 1989 about Agreement of Forest Area Reserve for 15,800 ha in Riau Province on behalf of PT. Pulau Sambu. Sambu to PT. Bumipalma Lestari Persada according with forest area releasing process conducted by Forestry Department.

3. A Letter from the Minister of Agriculture Number HK.350/E4.105/01.90 on 30 January 1990 for President Director of PT. Bumipalma Lestari Persada concerning Agreement of Palm Oil Plantation Business Principle for 6000 ha, hybrid palm for 4000 ha and cacao in 3000 Ha in reserve area 15.800 Ha in Kerintang Sub District, Reteh Sub District, and Enok Sub District, Indragiri Hilir District, Riau Province.

4. An Agreement from the Indonesia Investment Coordinating Board of Riau Province Number 570/BKPMD/152 on 25 August 1990 concerning Transfer of land provision for plantation area from PT. Pulau Sambu to PT. Bumipalma Lestari Persada.

5. Decree of Riau Governor Number kpts.22/P.T-V/1990 on 2 May 1990 concerning Reserve Area as many as 15.800 Ha in Reteh Sub District, Enok Sub District, and Keriting Sub District Indragiri Hilir District for the Plantation of Palm Oil, Hybrid Coconut, and Cocoa on behalf of PT. Bumipalma Lestaripersada signed by the Head of Indonesia Investment Coordinating Board of Riau Province on behalf of Riau Governor and Appendix of Land Reserve Map with the scale of 1: 100,000.

6. Decree of Riau Governor Number Ktps. 40/I.L-X/1990 on 22 October 1990 concerning Permit of Location and Permit of Right Releasing/Land Purchasing in Reteh Sub District, Enok Sub District, and Keriting Sub District in Indragiri Hilir District for the Plantation of Palm Oil, Hybrid Coconut, and Cocoa on behalf of PT. Bumipalma Lestaripersada signed by the Head of Indonesia Investment Coordinating Board of Riau Province on behalf of Riau Governor and Appendix of Land Reserve Map with the scale of 1 : 100,000.

7. Decree of Minister of Forestry Number 136/Kpts-II/92 on 15 February 1992 concerning Releasing of Some Forest Area in S. Reteh-S.Pengalian Forest Group, Indragiri Hilir, District, Riau Province in 11,562.5 Ha for Plantation Business on behalf of PT. Bumipalma Lestaripersada.

8. Certificate of Land Use Title Number 01 for 6,690 Ha, Letter of Measurement on 30-3-1995 Number 02/1995 and Appendix of Map (Scale 1 : 25.000), based on the Decree of the State Minister of Agrarian/Head of National Land Board Number: 73/HGU/BPN/95/ on 10 November 1995, published by the Head of Land Agency of Indragiri Hilir District on 20 April 1996. It was located in Mumpa Village, Pusaran Village, Baganjaya Village, Sungai Rukam Village, Pengalihan Village, Pebenaan Village, and Sungai Gergaji Village. This certificate of Land Use Title valid to 31 December 2030. Map of Special Situation Number 02/1995 contains signs of boundaries as many as 133 poles.

9. Building Construction Permit (IMB) for mill at area 3,645.5 meter based on the Decree of Indragiri Hilir Regent Number: B-0/HK/1995, on 30 November 1995.

The company has demarcated legal area boundaries that have been determined by the National Land Agency in the appendix of Land Use Title certificate. Total area boundaries that have been installed according to the Decree of Land Use Title were 127


ASSESSMENT REPORT


pieces. The company has composed boundary markers maintenance program by referring to the Procedure of Installation and Maintenance of Estate Poles (SOP/BPLP/PPPK Rev 00) on 2 March 2011 and Working Instruction of Estate Pole Maintenance (IK/BPLP/TM/02). The phase of this activity consist of:

1. Implementation of check list of boundary marker every month. 2. Improvement and painting of pole is conducted in accordance with the determination every 6 months. 3. Cleaning of poles location every 4 months.

Based on field visit at Bumi Lestari Estate (BPLE), there were several boundaries made of cast concentrate with a base size of 70 cm x 70 cm x 40 cm and its monument size was 30 cm x 30 cm x 60 cm. The size of pole was in accordance with the Regulation of the Head of National Land Board Number 3 year 1997. Poles were well maintained such as poles number 17 and 18 which directly share the same border with corn plantation area of community in S.Rukan Village, pole number 70 share the same border with corn plantation area of community in Pembenaan Village and poles number 56, 57, 58, and 59 which directly share the same border with coconut estate owned by the community in Nusantara Jaya Village Based on field visit at Bumi Palma Estate (BPME) there were several boundaries made of cast concentrate with a base size of 70 cm x 70 cm and its monument size was 30 cm x 30 cm x 60 cm. The size of poles was in accordance with the Regulations of the Head of National Land Board Number 3 year 1997. Poles were well maintained such as poles number 1 which directly share the same border with the settlement area of Suhada Village and poles number 11, 12 and 13 which directly share the same border with the palm oil mill community in S. Rukam village. Information from the management (RC Indragiri, Department of Legal PSM V and Public Relation of Indragiri), information from the Plantation Board of Indragiri District and the result of Focus Group Discussion which attended by surrounding people, community figures, board of Smallholder Cooperation, Village Heads, Regional Security Council in Sub District, and the Representative of Agricultural and Plantation Workers Union (Indragiri Hilir District), until the implementation of audit Stage 2, there was no conflict between the company and community because area boundary of company‟s Land Use Title and community‟s land was clear. The company has a mechanism of conflict resolution namely. Standard Operating Procedure (SOP) of Land Conflict Resolution, Number of Document: SOP/SPO/SMART/LH – 04. The coverage area of this procedure is activity related with land conflict resolution activity in plantation area and its processing unit. The purposes are: 1). To ensure harmonious communication relationship between community around the estate area and the company especially about land ownership according to the valid regulation and law. 2) To ease/smooth activity monitoring in controlling the activity at special field to solve land conflict in accordance with the purpose of the company. In this procedure, point 6 (Working Phase) in case of land conflict with the surrounding community, land conflict resolution will be conducted by involving the help/facility from the local government. Related parties are: community figures, village head, head of sub district, regent, NGO, and Assembly at District Level. The result of agreement must be documented, such as: Minutes of meeting of agreement as evidence about mutual agreement among many parties. There is a sample of record in the form of book (bundle) such as land compensation process. It contains:

- Inventory List of Land/Impacted Land by the Land Location of PT Bumi Palma Lestari Persada - List of name (List of Attendance) of Compensation Payment Plan Meeting. - Confidential Letter from the land owner who will receive compensation payment. - Notification Letter of Right Releasing signed by land owner, representative of plantation, village head, sub district head,

and staff of District Land Office. - Receipt of payment

There are several samples of record about land compensation payment process to the community in Parit Setia Kawan on 22 April 1992, such as:

- Inventory List of Impacted Land/Plant by the Plan in the Area of PT Bumi Palma Lestari Persada in Parit Setia Kawan, Sungai Rukam Village Enok Sub District Indragiri Hilir District (wide area 193 Ha)

- List of name (List of Attendance) of Compensation Payment Plan Meeting (there were 12 participants) - Confidential Letter from the land owner who received compensation payment in Parit Setia Kawan, Sungai Rukam Village.

This letter was signed by land owner and 3 witnesses, known by the Head of Sungai Rukam Village and Head of Enok Sub District.

- Notification Letter of Right Releasing signed by land owner, representative of plantation, village head, sub district head, and staff of Land Office of Indragiri Hilir District.

- Receipt of payment (signed by the representative of PT Bumi Palma Lestari Persada, land owner and known/signed by the Head of Sungai Rukam Village and Head of Enok Sub District).


ASSESSMENT REPORT


OFI :

The company has an opportunity to synchronize the SOP of Maintenance and Improvement of Plantation Pole with Working Instruction of Pole Maintenance.

The company has an opportunity to review maintenance program of pole location hygiene.

Status: Observation

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

There is a sample of record in the form of book (bundle) of land compensation payment processes in the early days of estate opening. It contains Confidential Letter from land owner who will receive compensation payment, for example: on behalf of Muhammad Saleh and Notification Letter of Right Releasing signed by land owner, representative of plantation, village head, sub district head, and staff of District Land Office. Based on the Document of High Conservation Value Report of PT Bumipalma Lestaripersada Unit of Bumi Palma-Bumi Lestari Estate-Bumi Sentosa Estate, Indragiri Hilir District Riau Province, there is no land with tenure right status in the plantation area owned by PT BPLP. There is a record in the form of List of Attendance-Participant of Socialization Meeting/Public Consultation of HCV & SIA (Social Impact Assessment), attended by 40 people. Based on the result of public consultation with stakeholders such as people from the surrounding area, community figures, Board of Smallholder Cooperation, Village Heads, Sub District Head, and Representative Worker Union of Agriculture and Plantation Sector (Indragiri Hilir District), there was no indigenous people around the plantation area of PT BPLP.


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

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

The company has three-years working plan for 2013 – 2015. It was composed according to the annual budget of all company units. The document was composed according to the annual budgeting from all company units. This document was approved by CEO PSM 5 as the main document of PT. BPLP. PT. BPLP has projected its profit per year with the assumption of CPO price is USD 825, IDR 9.500, inflation rate 6%, and discount rate 12%, assumption of OER (20,5%) and PKR (5,25%). The document of working plan consist of: FFB production prediction, CPO and PKO production prediction according to the yield assumption (OER and PKR), cost prediction (mill cost, estate cost, transportation cost, HO cost, Man fee), replanting plan, tax, assumption (CPO price, inflation, exchange rate, and discount rate), net profit/loss, and NPV. The company composed replanting plant every year such as plan in 2012 - 2017. To ensure the stability of FFB supply to the mill, the company conducts replanting activity in several phases. The company has determined the projection of land clearing cost for BSNE and BPLE in 2013. Account consists of pioneering, falling down, chopping, monitoring, and drain making..


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

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

The company has Standard Operational Procedure (SOP) of Agronomy in the document of Management Committee Agronomy and Research (MCAR) on 1 September 2012. It describes about the aspects of palm oil cultivation such as: new area planting plan (SOP/SMART/MCAR/I/TA-PPA), replanting plan (SOP/SMART/MCAR/II/TA-PRP), nursery (SOP/SMART/MCAR/III/TA-BBT), new land clearing (SOP/SMART/MCAR/IV/TA-PLB), planting (SOP/SMART/MCAR/V/TA-TNM), plant side, replanting (SOP/SMART/MCAR/VI/TA-RPL), pest and disease control (SOP/SMART/MCAR/II/TA-PHT), maintenance (SOP/SMART/MCAR/VIII/TA-PGM), fertilization (SOP/SMART/MCAR/IX/TA-PPK) maintenance of immature plant (SOP/SMART/MCAR/X/TA-PTB), preparation of harvesting (SOP/SMART/MCAR/XI/TA-PMP), maintenance of mature plant (SOP/SMART/MCAR/XII/TA-PTM), harvesting (SOP/SMART/MCAR/XIII/TA-PNN), loading and transportation of FFB (SOP/SMART/MCAR/XIV/TA-PPT), rainfall measurement by using ombrometer (SOP/SMART/MCAR/XIV/TA-PPT). The company also has a Standard Operational Procedure (SOP-PENGOLAHAN/REVIEW MCMD#1/20101/85) for the processing of plantation product in the document of Management Committee for Mill Development (MCMD) Revision IV. Several operational


ASSESSMENT REPORT


activities managed in this SOP are: FFB receiving process, sterilization, Threshing, press, clarification, substation of oil recovery tank clarification, sop of storage tank oil recycling, nut and kernel, boiler and machine chamber, water treatment, final effluent, and storage tank cleaning and Standard Operational Procedure for the laboratory of palm oil mill; guideline of CPO and PK quality measurement. There is also a SOP Dispatch CPO & PKO in: SOP of CPO and kernel production delivery (PT. BPLP-BPMM/SOP/07) on 01 July 2011 that managed about: purpose, coverage, duty and responsibility, definition, description of receiving procedure/DO, loading of CPO tank truck and kernel truck, appendices, and document monitoring. Auditing and monitoring activity of the operational activities at the Estate and POM is minimally conducted once a year by Internal Audit team. For Estate, it consist of Operational Internal Audit and Agronomy Audit & Advisory, while POM consist of Operational Internal Audit and Mill Audit & Advisory, for example: 1. Bumi Palma Estate/BPME :

- Operational Internal Audit (OIA): is conducted once a year. There was a letter on 31 August 2012 for schedule of visitation plan for the Operational Internal Audit to be conducted on 10 September 2012 - 5 October 2012 at BPME, BPMM, and BSNE. There was also a letter from Internal Audit Team of Jakarta, on 17 September 2012 for the meeting invitation of Operational Internal Audit Semester 2 in 2012 to be conducted on 17 September 2012 at the meeting room of BPME office.

- Agronomy Audit & Advisory (AAA): there was a sample of report Number 2/2012 for the second period on 13-14 December 2012. The total finding of improved activity is 7, such as replanting activity and immature development, application of immature plant fertilization, census of tree and pleizometer, pest of seedling, maintenance, canal flushing, and housing area of workers. In 2012, there were 2 AAA activities on 13-14 January 2012 and 13-14 December 2012.

2. Bumi Palma POM : - Mill Audit & Advisory (MAA) is conducted once a year, for example main report of audit at Bumi Palma POM on 13 - 17

April 2013 for visitation on 4 - 7 September 2012. It contains information about production, throughput, yield, processing, fuel and generator use, etc.

In addition, the company has also reported and monitored operational activity at the estate and POM, for example: o Bumi Palma Estate (BPME) :

1. Production report every running month: for example in January - June 2013: Bumi Palma Estate as much as 16,549,508 kg; budget was 16,924,705 kg;

2. Report of fertilization: For example at Bumi Palma Estate: document of Bunch Ash fertilization for the first semester of 2013 in 1,346.41 Ha as many as 164,747 trees by using 247 ton of Bunch Ash; chemical fertilization (data of plan and realization of fertilization in 2013) for HGFB, CUSO4, ZnSO4, kaptan, urea, MOP, TSP, RP, Super dolomite, kieserite, FeSO4, NPK Compound 12:12:17:2 and 15:15:6:4.

3. Report of circle spraying activity and harvesting path (2 rotations) in 2013. First Rotation has been finished, 100% and Second Rotation is still on progress.

4. Manual Weeding (1,993.8 Ha) and Circle Manual Weeding (604.27 Ha) is conducted in two rotations and still on progress.

o Bumi Lestari Estate (BPLE) : 1. Production report every running month: for example in January - June 2013: Bumi Palma Estate as much as 8,373,187 kg;

budget 8,995,392 kg; 2. Report of fertilization:

For example: chemical fertilization document (data of planning and realization of fertilization in 2013) for HGFB, CUSO4, ZnSO4, kaptan, urea, MOP, TSP, RP, Super dolomite, kieserite, FeSO4, NPK Compound 12:12:17:2 and 15:15:6:4.

3. Report of Circle and Harvesting Path Spraying Activity (2 rotation) in 2013. First rotation has been finished 100% and Second Rotation is still on progress.

4. Manual Weeding (575.27 Ha) and Circle Manual Weeding (233.21 Ha) is conducted in two rotations and still on progress. o Bumi Palma POM :

1. Monthly Processing Report in June 2013 contains several activities such as: the amount of processed Fresh Fruit Bunches (FFB), the amount of produced Crude Palm Oil, Oil Extract Rate, Kernel Extract Rate and processing hour.


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


ASSESSMENT REPORT


The company has conducted several actions to maintain the fertility of soil. This program is managed by SMART Research Institute (SMARTRI). According to the information from the Region Field Coordinator of SMARTRI, in order to maintain the fertility of soil, SMARTRI conducted soil analysis and leaves analysis, and observed the visual condition of plants. SMARTRI determined the type of fertilizer and proper dose of fertilizer to the type of soil in PT. Bumipalma Lestaripersada (peat area). Soil Analysis Activity There is a record of soil nutrient status observation to identify the availability of soil nutrient that used as a media for palm oil. The status of nutrient availability is a part in the composing of right, effective and sustainable soil recommendation in nutrient balance concept in the soil. In this report, there is an appendix of each soil sample laboratory analysis result. Measured parameters were: texture, acidity (pH), content of C, N, P, K, Mg, Ca, Na, BS, CEC, Al, and H. Soil analysis was conducted when 3 years old, 8 year old, 13 years old, 18 years old, 23 years old, and before replanting. The division of palm tree age depends on the immature plant and mature plant. It represents the range of plant age: young plant and old teen. There is a record of soil analysis result at each estate such as soil analysis result in 2012 at Bumi Palma Estate and soil analysis result in 2011 at Bumi Lestari Estate. Leaves analysis activity There is a record of leaves analysis published by SMARTRI. The result of leaves analysis is used for the recommendation and planning by PT. Bumi Palma Lestaripersada for the application of fertilizer in certain dose in order to obtain optimal palm fruit. The principle of fertilization is a treatment in the soil to produce nutrient required by palm tree for optimal palm fruit or soil enrichment. There was also a record of leaves analysis conducted at Bumi Palma Estate and Bumi Lestari Estate in 2011 and 2012. In 2013, it is scheduled in the second semester. There was also a record of leaves analysis conducted at Bumi Palma Estate and Bumi Lestari Estate in 2012, for example: Bumi Palma Estate. There was also a record in 2012 such as at Block D05. Based on the result of leaves analysis: the content of N was 2.61%; P was 0.166%, K was 0.93%, Mg was 0.34%, Ca was 0.65% B was 17 ppm and Cl 0,64% Bumi Lestari Estate There was also a record in 2012 such as at Block K03. Based on the result of leaves analysis: the content of N was 2.91%; P was 0.185%, K was 0.90%, Mg was 0.31%, Ca was 0.64% B was 23 ppm, Zb was 20 ppm, Cu was 6 ppm and Cl was 0.68% To maintain and increase the fertility of soil, the company has conducted several efforts such as to follow the recommendation by SMARTRI (there was a document of fertilization recommendation at the estate in 2013) and application of empty fruit bunches. All above activities have been monitored and recorded according to the study result of document; the given dose has followed the result of soil and leaves analysis result and MCAR. This monitoring and recording has been written in SAP program (fertilization).

- There was a document of inorganic fertilization recapitulation for the first semester at Bumi Palma Estate until April 2013. It has been realized, such as: urea 51,815 kg, RP 44,682 kg, TSP 19,532 kg, MOP 25,348 kg, kaptan 26,532 kg, borate 2,486 kg, CUSO4 1,735 kg, ZNSO4 1,735 kg, super dolomite 5,760, kieserite 1,394, NPK compound 5,808 kg.

- There was a document of inorganic fertilization recapitulation for the first semester at Bumi Lestari Estate until April 2013. It has been realized, such as: urea 35,700 kg, RP 24,200, TSP 2,400 kg, MOP 129,650 kg, kaptan 94,000 kg, borate 6,255.7 kg.

- There was a document of fertilization plan by using empty fruit bunches to be conducted in the second semester at Bumi Palma Estate and Bumi Lestari Estate

Legume was not planted by the company because company area was situated in peaty area so legume was not able to grow in optimal condition. In addition, dry leaves of this legume are also potential to be the source of fire.


4.3 Practices minimize and control erosion and degradation of soils.

The company has conducted Semi Detail Soil Survey in 2007 for all estates. The information contains type of soil, topography, condition of drainage, depth, boundary factor, class of land conformance, for example: - Bumi Lestari Estate: peat area, slope 0-3%, depth of peat is 2,5-3 meter, boundary factor is drainage with the class of land

conformance is S3. Based on the study result of document and field survey, there was no area with certain slope.


ASSESSMENT REPORT


PT BPLP has ground road and water transportation (canal). The company has road maintenance program in 2013 and it has been realized. Based on the result of field survey at Bumi Palma Estate and Bumi Lestari Estate, transportation infrastructure (land and water) was in good condition and well maintained. For example: - Bumi Palma: maintenance for example canal flushing/algae cleaning. There was a data of program and canal flushing

realization for each division in January 2013 - December 2013, such as division I program for June 2013 in 16,700 meter and its realization was 19,200 meter.

Surface water level maintenance programs in peat area that has been conducted by BPLP are listed below: - Water management by using primary, secondary, and tertiary canal and boundary. - Monitoring of water level to measure water level at the canal. - Monitoring of water table by using Piezometer. - Stop of Block to control the availability of water at the drain in the middle of the block, especially block of replanting area. - Water pump to add the supply of water in drainage system especially in less water condition in the drainage system of the

estate. - Main overflow (water gate) to control the level of water in drainage system. It is opened during over supply of water in drainage

system. - Monitoring of peat land surface decreasing (subsidence). Based on the result of field survey, it was identified that: - There was pizzo meter, peat subsidence and water level. It was monitored every month such as at Block H05, Division I, BPLE. - There were 2 water pumps (pump house) at Bumi Palma Mill housing area to add the supply of water at the canal. - There was legume cover crop in the edge of canal to prevent any erosion caused by water abrasion.


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

All of PT. BPLP areas are located in the wet land of peat area in Indragiri Hilir District. The identified water source as described in the EIA and HCV study was surface water in peat area that has been flowed to the canals in estate area. In addition of surface water, there was no other water source such as river or ground water (spring water).

There were several programs and water maintenance to ensure the availability and quality of water in peat area, such as: 1. The development and maintenance of water management facility to ensure the availability of surface water, such as:

- Primary (main), secondary, tertiary, and boundary canal. Canal and drain are designed to facilitate activity at the estates and to ensure the availability of water at the estates. Primary canal has a depth of + 3 m and width 12 meter. It is connected to secondary canal (8 meter) and tertiary canal with smaller dimension. All canal systems at the estate are closed system and do not receive any water input from the outside area and water is only flowed from Watergate/main overflow at Bumilestari Estate.

- Water level to measure its level at the canal. The availability of water at the canals and ground at the block (water table) can be monitored through water level parameter from the canal side. Water level can be measured in much area. There are 10 water levels at Bumipalma Estate, 6 units at Bumisentosa, and 14 units at Bumilestari.

- Piezometer to measure the level of water table Piezometer was planted at the ground to measure water level at the block (water table). Based on the field survey, there was pizzo meter, peat subsidence, and water level. It was monitored every month such as at Block H05, Division I, BPLE.

- Stop block to control water availability at the middle drain of block, especially replanting block. There are 5 stop block at Bumipalma Estate. The auditor visited 2 water pumps at the housing area of Bumi Palma Mill that used to add water availability at the canal.

- Water pump to add water availability in the drainage system from the outside area of drainage system to the inside drainage system at the estate during water deficiency at the estate drainage system. There was one unit of pump at Bumipalma Estate as relatively high elevation of metal handiwork.

- Main overflow (water gate) to control water level at drainage system in Bumilestari Estate. 2. To monitor the decreasing of peat land surface (subsidence)

The decreasing of peat land surface is caused by decomposition and/or compacting in drained peat land. Subsidence is important to be monitored because it is an indicator of water management success in canal. The record of subsidence monitoring is available in the form of table of report/recapitulation of subsidence monitoring at each estate in PT. BPLP.


ASSESSMENT REPORT


There were 4 monitoring locations of peat land surface decreasing (subsidence) such as Block F08 and Block C10 at Bumipalma Estate, Block H-7 at Bumi Sentosa Estate, and Block H-5 at Bumilestari Estate.

3. Vertifer grass planting to strengthen canal side and to let ferns at the canal. The visitation was conducted at Bumi Lestari Estate. It can be seen that vertifer grass was planted in massive at the canal side.

4. Waste Water Pond / Disposal management and monitoring for liquid waste quality was conducted by flowing it from Waste Water Pond / Disposal. Based on the field survey, liquid waste was managed by waste management installation before being disposed to water. This installation consist of 4 ponds (each pond has 4 sub pond), tertiary canal, and main canal. The mill analyzed the quality of liquid waste by involving internal laboratory and sucofindo laboratory. The BOD was maintained below its quality standard in accordance with the valid regulation before being disposed to the water. There was one sampling point at Pond 4a. There was no runoff/liquid waste leakage directly from the estate.

Monitoring of liquid water quality was conducted by Sucofindo Laboratory every month. Liquid waste sample was taken at Waste Water Pond 4A as the outlet. The result of BOD test showed that BOD still below its determined quality standard as stipulated in the Regulation of Environmental Minister Number 51 year 1995 (maximum BOD is 100 mg//L). The result in February 2013 showed that BOD test still above its quality standard. The company has improved its management so waste quality in the following months is in safe level.


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

The company has determined the Procedure of Plant Pest and Disease Management. It use Integrated Pest Management concept (SOP/SMART/MCAR/VII/TA-HPT on 12 June 2012). This Integrated Pest Management is conducted through several phases such as: 1. Detection (consist of detection implementation, detection reporting, report verification, and IPM). 2. Census (consist of census implementation, census reporting, report verification and follow up, and recommendation request

from SMARTRI) 3. Recommendation of monitoring 4. Monitoring according to the recommendation from SMARTRI 5. Evaluation and follow up. Pest Management programs at Bumi Palma Estate (BPME) and Bumi Lestari Estate (BPLE) are: o Control of rhinoceros beetle/Oryctes sp: Most of the attack in Immature Plant and some in Mature Plant. Management

techniques are: 1. Manual larvae hunting every month. 2. Imago control through the installation of Oryctes trap. 1 unit of Pherotrap in every 5 ha. Observation every two weeks and

ferotrap replacement every two months. 3. Winkling, manual control to cite imago in between the palm midrib is routinely conducted every month. 4. Breeding site demolition is conducted every month. 5. The use of marshal as many as 5 gram/tree is conducted every month in Immature Plant according to winkling result.

o Nettle Caterpillars control, such as:

Detection is conducted every two months. If the result of detection showed that attack level above its economical quality standard (>5% and/or >10% depend on the type of Nettle Caterpillars), census will be conducted. Census activity: if the result of census showed that more than 50% of Nettle Caterpillars attacked by virus, there will be no control action. In the contrary, control will be conducted: chemical control by using Decis or Matador, pupa citation and light trap incidentally installation such as mercury lamp in a bucket of water in 200 meter on the road at attacked block.

o Ganoderma control program, such as: 1. Ganoderma census, two times a year. If there is a fall tree caused by ganoderma, it will be chopped and planting hole will

be reopened; Immature Plant in the nursery, during planting, mychoriza will be given as many as 40 gram/polybag, and 500 gram per hole during planting activity.

o Rat census program in 2013 is planned four times a year. o Termite control program is planned once a year. o Weed control program in 2013: is planned three times a year in circle and harvesting path; first rotation used contact herbicide,

second rotation used systemic herbicide; third rotation used contact herbicide. In Mature Plant area, contact herbicide used for


ASSESSMENT REPORT


this activity was Rolixone 250 cc/ha; and systemic herbicide used for this activity was Roll Up 250 cc/ha. Manual control of stacking of sheath is conducted two times a year in between chemical control.

The company has conducted integrated pest management. There is a document of Integrated Pest Management Training (IPT) on 19 January 2013 at the Club House of PT. BPLP. It was attended by 40 participants and the trainer was Research Department of SMARTRI. The training content was: Selective and/or Specific Spraying and the training content of Integrated Pest Control was optimizing natural enemy and early warning for caterpillar, rat, owl, oryctes and ganoderma. There are several evidences of Integrated Pest Management program conducted by PT. BPLP, for example:

- Nettle Caterpillars control: there is a document of Working Program at Division III BPME for 343.09 Ha Mature Plants in 2013 to detect nettle caterpillars of palm oil. It is conducted every two months and it has been conducted in January and March 2013. There is a document of Pest Detection Recapitulation of BPME in March 2013, for example at Block D-05, wide area is 39.19 Ha; date of detection was 2 March 2013 for leaves borer, its attack level is light 3, moderate 0, heavy 2, out of 36 observation points.

o Working Program at Division III BPME Mature Plant in 2013 for palm oil nettle caterpillars‟ census program as many as 343.09. It is conducted every two weeks according to the detection result such as Block E01 as many as 15.72 Ha.

o Working Program Division III BPME in 2013 as many as 343.09 Ha for rat census. It was conducted 4 times a year and it has been conducted in April 2013, for example at Block E01 as many as 39.29 Ha.

o Horn Beetle Pest Control at BPME: there is a sample of winkling activity document (Manual Hunting of Horn Beetle/Oryctes sp.) in December 2012 at Division 3 for example on 15 December 2012 (every two weeks) as many as 30 beetles and 265 battles in a month.

o Recapitulation document of Oryctes sp trap. BPME used ferotrap in December 2012 at Division 3 on 29 December 2012 as many as 395 beetles.

o LT.13 document for the monitoring of BPME Owl Report in 2012, total nest was 31 consist of active nest was 14 and non-active nest was 17, mature bird was 28

o Ganoderma control: there is a PKD document for Division III in 2013 as many as 343.09 Ha conducted 4 times a year, for example in March 2013 at Block F02 as many as 9.56 Ha.

o Nettle Caterpillars control: there is a Working Program Document for Division I BPLE as many as 594.49 Ha Mature Plant in 2013 to detect nettle caterpillars of palm oil. It is conducted every two months and it has been conducted in January and March 2013. There was no attack more than its measuring standard.

o Working Program at Division I BPLE in 2013 for rat census activity. It is conducted 4 times a year such as in April 2013 at Block H04 as many as 0.17 ha.

o Owl maintenance program (Tyto Alba) at BPLE Division 1 in 2013. It is planned to be conducted every month.

The company has also monitored about the use of pesticide per ton of FFB both Bumi Palma Estate and Bumi Lestari Estate, for example document of Bumi Palma Estate, there is a pesticide monitoring document per April 2013:

Name of product

Active Ingredient LD50 % Active Ingredient

Amount of Application (kg or liter)

Total Active Ingredient

FFB Production (ton)

Pesticide Unit per Ton FFB

Erkafuron Metil Metsulfuron 5000 0.6 13.37 8.02 2,531.08 0.000000633879

Garlon 670 EC

Tricopyr 480 g/lt 2574 0.4 - - - -

Rolixone 276 SL

Paraquat dichloride 276 g/lt

90.9 0.42 183.36 77.01 2,642.67 0.000320587496

Roll Up Isopropyl amine gliphosate 480 g/l

5000 0.41 71.08 29.14 2,531.08 0.000002302795


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

The company has showed that all used pesticides have been registered in the book of agricultural and forestry pesticide. There was a document of pesticide list used at Bumi Palma Estate/BPME and Bumi Lestari Estate/BPLE that contain information about brand, active ingredient, number of registration, validity, and utility.


ASSESSMENT REPORT


The company showed Estate Working Program document in 2013 for Bumi Palma Estate and Bumi Lestari Estate. It describes about chemical weed and pest controls program, rotation of application, and the type of ingredient/pesticide used. For example, spraying at the circle and harvesting path is planned three times a year (2 contact pesticide and 1 systemic pesticide). There was also a document of Supervisor Activity Book at Bumi Palma Estate on 17 April 2013 for spraying activity at the circle and harvesting path at Immature Plant Block D14 for 49.07 ha by using 6.85 workday, the result was 11.5 ha, by using rolixone active ingredient as many as 4.3 liter (dose 0,374 l/ha) and erkafuron as many as 215 gram (18.69 gram/ha). There was a document of Integrated Pest Management Training (IPM) on 19 January 2013 at the Club House of PT. BPLP attended by 40 participants, delivered by the research department of SMARTRI. The content was about Selective and/or Specific Spraying and Integrated Pest Management by optimizing natural agent and early warning system for nettle caterpillar, rat, owl, oryctes, and ganoderma. The company able to showed that the use of pesticide dose did not exceed the recommended dose by the producer, for example rolixone herbicide for spraying activity at the circle and harvesting path. The company used 250 cc/ha for Mature Plant and 375 cc/ha for Immature Plant. The producer recommended the use of it as many as 1-2 liter/ha based on the presence of weed at the palm estate. There was a Working Instruction of Pesticide and Fertilizer Pack Washing and Cleaning. Used pesticide pack was washed 3 times (according to the MSDS) and used water was reused for spraying. Sack washing was conducted by soaking it for 30 minutes and then the ex washing water used for watering palm tree or any plant in the estate. Based on the SOP of Waste Management Number SOP/SPO/SMART/LH-09 on 1 July 2010 at 6.3.b, that washed pesticide packs were sent back to the supplier. Implementation of procedure

- There is a minutes of meeting about ex package of pesticide handover for Bumi Palma Estate on 10 April 2013 from Bumi Palma Estate to PT. Rolimex Kimia Nusantara-Pekanbaru as many as: rolixone jerry can 20 liter: 33 jerigen; roll up jerry can 20 liter as many as 6 jerry cans; erkafuron bottle as many as 145 bottles; 1 tiflo and on 02 July 2013 such as Rolixone as many as 18 bottles, Roll Up jerry can as many as 19 jerry cans and Erkafuron as many as 152 bottles to PT. Rolimex Kimia Nusantara.

- There is a minutes of meeting about ex package of pesticide handover for Bumi Lestari Estate on 10 April 2013 for Roll Up used package as many as 6 unit; rolixone 48 unit and erkafuron 214 unit to PT. ROLIMEX KIMIA NUSANTARA and on 03 May 2013 as many as 69 bottles of Matador, 313 packs of Marshal, 1 pack of Tikumin, 16 packs of Benstar to PT. Agro Sejahtera.

To decrease the use of paraquat, the company has determined Paraquat Use Policy published by Vice President Agronomy – PSM 5 on 1 February 2011 which stated that:

- To implement and maintain the use of programmed paraquat chemical material. - To increase the awareness of all employees about the concern and knowledge on the use of paraquat in order to create a

safe working environment for the employee and surrounding environment. - To develop and implement the sustainable decreasing of paraquat chemical material by decreasing the amount of

paraquat chemical material every year as many as 25%. There was also a result from the Research Department of SMARTRI about paraquat pesticide use by using S4 technique (Selective Spraying and/or Site Specific) at 3 Estates (LIBE; RBKE and KJGE). This research was conducted for 3 months since 1 November 2009 to 11 March 2013. It showed that S4 spraying technique can save the use of paraquat for 15% (control dose was 265 cc/ha). This research result has been socialized to PT. BPLP on 19 January 2013. Based on the notification from the staff of this Research Department, this spraying technique can be implemented at mineral land of peat land. The current dose for paraquat application at this estate is 250 cc/ha for mature plant and 375 cc/ha at immature plant. Based on the result study to the document, there was an increasing trend of paraquat use. For example, paraquat has been used at Bumi Palma Estate since 2011 (Mature Plant 0.24 Liter/Ha and Immature Plant 0 Liter/Ha), 2012 (Mature Plant : 0.23 Liter/Ha and Immature Plant 0.55 Liter/Ha) and until June 2013 (Mature Plant 0.22 Liter/Ha and Immature Plant 0.58 Liter/Ha). Therefore, this was opposed with the effort to decrease the use of paraquat and not in line with the policy of company published by Vice President Agronomy – PSM 5 on 1 February 2011 concerning paraquat use decreasing as many as 25% per year. Minor nonconformance 2013.05 Verification on 27 July 2013


ASSESSMENT REPORT


The company has showed the revision of Paraquat Use Policy which determined by VPA-PSM V on 26 July 2013. The written commitments in this policy are:

- To sustainably develop and implement paraquat decreasing program by decreasing the amount of paraquat use every year.

- Replanting will increase area of Immature which impacted to the increasing of paraquat, so the company kept implementing its decreasing program which planned to be sustainably conducted in the mid-year of 2013.

- To ensure that paraquat meet the standard of government policy and registered in the book of valid agricultural and forestry pesticide use.

To describe paraquat use program that will be implemented in the mid-year of 2013, the management of estate has composed paraquat use decreasing program in 2013, such as: The use of paraquat in Immature Plant Spraying at circle and harvesting path: Dose of paraquat in the former budget was 0.375 L/Ha and now changed into 0.300 L/Ha. Rotation: I (0-12 months), 5 (13-24 months) and 4 (25-36 months) Spraying of ferns at the stacking of sheath, it was 1,500 L/Ha and now 1,000 L/Ha. Rotation: 5 (0-12 months), 4 (13-24 months) and 2 (25-36 months). The use of paraquat in Mature Plant Spraying at circle and harvesting path from 0.25 L/Ha (2 Rotation) into 0.20 L/Ha (2 Rotations). Review of the implementation of paraquat active ingredient decreasing program will be conducted at the next visit. Therefore, nonconformance CAR.2013.05 status is Closed with Observation. The company has evaluated the result of employee medical checkup especially those with health problem. They had advanced medical checkup at Puri Husada Tembilahan Public Hospital on 13 May 2013. The result of medical checkup (recommendation of doctor) showed that they still can work but use PPE during their work. The company has conducted special medical checkup including blood laboratory test /cholinesterase for high risk workers at POM and Estate on 10 – 11 June 2013 at the Thamrin Clinic Laboratory, Pekanbaru. Therefore, Potency of Nonconformance CAR.2013.01 is Closed. Observation 26 July 2013 BPLP has managed this used agrochemical packaging waste in accordance with the procedure. There was a minutes of meeting about used agrochemical packaging waste washing on 3 June 2013. Nonconformance CAR.2013.06 is Closed. The company has medical checkup program for each Estate and POM in 2013 by company‟s doctor. Special medical checkup for Bumipalma Lestari Estate is described below:

- There was medical checkup report for 23 workers (spraying, fertilizing, and warehouse) from Thamrin Clinic Laboratory on 10 June 2013 for blood, urine profile, liver function, cholinesterase, and thorax. Based on this medical checkup (it has been evaluated by the company doctor), there was no company workers who were not allowed to work because of illness.

Medical checkup for Bumipalma Estate : - There was medical checkup report for 42 workers (spraying, fertilizing, and warehouse) from Thamrin Clinic Laboratory on

10 June 2013 for blood, urine profile, liver function, cholinesterase, and thorax. The result has been also evaluated by the company doctor.

There was a Memorandum VPA PSM 5 Number 001/SE/VPA5/12/08 on 20 December 2008 concerning pregnant and breastfeeding workers that the company does not allow pregnant and breastfeeding workers to work as spraying worker. The company has a mechanism to prevent pregnant woman in spraying section such as medical checkup for them every two weeks by the company‟s polyclinic. Based on the result of document review, especially early pregnancy test at BPLE on 25 June 2013 for 9 spraying workers, there was no pregnant spraying worker. For example: Nurlela was negative and it has been checked by nurse on behalf of Noni. There was also a document of early pregnancy test form for six spraying workers at BPME on 24 June 2013, for example on behalf of spraying worker: Timah. The result of pregnancy test showed that she was negative. Based on the field survey to spraying workers at Bumipalma Estate and Bumilestari Estate, there was no pregnant spraying female worker.

Minor 4.6.1 Major 4.6.4

Status: Minor non conformance CAR.2013.05 is closed Status: Major non conformance CAR.2013.06 is closed


ASSESSMENT REPORT


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

The company has a Policy of Occupational Health & Safety at POM and Estate. This policy stated that the company will always try to decrease the use of dangerous goods that can cause injury, illness, property damage, fire and explosion, and disorders that hinder the process of production and other things that may damage the environment. Occupational Health & Safety Policy was communicated through the Announcement Board and verbally committed during morning circle (briefing prior to the commencement of the work). In the implementation of the Occupational Health & Safety policies, the company has provided Personal Protective Equipment for workers according to the hazards and risks of each job. The company formed Guiding Committee of Occupational Safety & Health who responsible as the person in charge in Occupational Health & Safety Program. Guiding Committee of Occupational Safety & Health was formed at each working unit of POM and Estate. Its management board consists of builder, chairman, vice chairman, secretary, deputy secretary, supervision department, research department, evaluation department, counseling department, and health department. - Bumi Palma POM :

- Guiding Committee of Occupational Safety & Health has been approved by Labor and Transmigration Agency, Indragiri Hilir District. The number of Decree is 25/NAKERTRANS-PKHI/P2K3/560 dated 22 March 2013, as the change of the previous board of Guiding Committee of Occupational Safety & Health approved on 08 October 2010.

- As the fulfillment of Regulation of Labor Minister Number 04 year 1987, secretary of Guiding Committee of Occupational Safety & Health on behalf of Didik Lesmana has been certified as the Expert of Occupational Health & Safety. Its number is SKP KEP. P. 806/M/DJPPK/XI/2012 dated 03 September 2012 and valid for three years.

- Routine meeting of Guiding Committee of Occupational Safety & Health has been consistently conducted every month; for example, there is a sample of minutes of meeting of Guiding Committee of Occupational Safety & Health on 08 July 2013. Its agenda was discussion of working program in all sections. It was attended by the head and management board of Guiding Committee of Occupational Safety & Health.

- Bumi Lestari Estate : - Guiding Committee of Occupational Safety & Health has been approved by Labor and Transmigration Agency, Indragiri

Hilir District. The number of decree is 26/NAKERTRANS-PKHI/P2K3/560 dated 22 March 2013, as the change of the previous board of Guiding Committee of Occupational Safety & Health approved on 05 July 2011.

- As the fulfillment of Regulation of Labor Minister Number 04 year 1987, secretary of Guiding Committee of Occupational Safety & Health on behalf of Pipiet Ariwibowo has been certified as the Expert of Occupational Health & Safety. Its number is SKP KEP. 167/M/DJPPK/III/2011 dated 21 March 2011 and valid for three years.

- Routine meeting of Guiding Committee of Occupational Safety & Health has been consistently conducted every month; for example, there is a sample of minutes of meeting of Guiding Committee of Occupational Safety & Health on 08 July 2013. Its agenda was discussion of about training of understanding on Occupational Health & Safety. It was attended by the head and management board of Guiding Committee of Occupational Safety & Health.

- Bumi Palma Estate : - Guiding Committee of Occupational Safety & Health has been approved by Labor and Transmigration Agency, Indragiri

Hilir District. The number of Decree is 23/NAKERTRANS-PKHI/P2K3/560 on 22 March 2013, as the change of the previous board of Guiding Committee of Occupational Safety & Health approved on 05 July 2011.

- As the fulfillment of Regulation of Labor Minister Number 04 year 1987, there was an Authority Card of Expert of Occupational Health & Safety. Registration Number is: 4197/PK3/AJ/14/2013/P1 on behalf of Todi Kevin Arifandi valid until 15 April 2016. This based on the Decree of State Minister of Labor and Transmigration, Number of Decree: Kep.274/M/DJPPK/IV/2013 concerning Appointment of General Occupational Health & Safety Expert on 15 April 2013.

- Routine meeting of Guiding Committee of Occupational Safety & Health has been consistently conducted every month; for example, there is a sample of minutes of meeting of Guiding Committee of Occupational Safety & Health on 05 July 2013. Its agenda was discussion of necessity evaluation and warning installation. It was attended by the head and management board of Guiding Committee of Occupational Safety & Health.

The company has engaged workers in Labor Social Assurance (Jamsostek) that consists of Working Accident Assurance (JKK), Mortality Assurance (JKM) and Old Ages Assurance (JHT), while Health Maintenance Assurance is managed by the company by providing clinic, doctor, nurse, and midwife. There is a sample of Labor Social Assurance Form 2 BPME (number of registration is DD040106) for the payment of Labor Social Assurance for SKU workers in May 2013 as many as 276 workers. The total of payment was Rp.29.392.689. The company has conducted medical checkup including blood test/cholinesterase for high risk workers at POM and Estate on 10 – 11 June 2013 at Thamrin Clinic Laboratory, Pekanbaru. Therefore, Potency of Nonconformance CAR.2013.01 is Closed.


ASSESSMENT REPORT


The company has conducted routine medical checkup for high risk workers such as audiometric checkup for those who work at location in locations with noise levels exceed the threshold limit value (TLV) and spirometry screening for those who work in dusty locations and contact with chemicals. Medical checkup programs for Bumipalma POM‟s worker in 2013 are listed below:

- Medical checkup before work: every month along the year for new worker. - Physical checkup for all workers in February 2013 and it has been conducted according to the plan. - Special checkup (cholinesterase, spirometric, audiometric) was planned once a year in June 2013, and it has been

conducted according to the plan. There is a sample of special checkup for mill worker and its evaluation result which conducted on 10 June 2013 at Thamrin Clinic Laboratory, Pekanbaru for 5 high risk workers (workers at Water Treatment Process, Laboratory, and Head of Warehouse). Based on the medical checkup, there was no worker with health problem.

The company has composed risk analysis document in the form of ISBPR (Identification of Hazard Source, Assessment, and Control Risk) for each of the activity and work process at the Mill and Estate. Preparation of documents was created by following the flow as follows: hazard potential of all activities and work processes at the POM and Estate were identified based on the source/events and impacts, then its level of risk and risk control was determined such as elimination, substitution, engineering, administrative, or the use of PPE. - ISBPR (Identification of Hazard Source, Assessment, and Control Risk) at Bumi Palma POM, in January – December 2013.

The activity/working process are security, weighbridge 40 ton, weighbridge 20 ton, grading of FFB, loading ramp, transfer carriage, sterilizer, tippler, thresher, press, clarification, boiler, kernel, engine room, water treatment, effluent, workshop, warehouse, warehouse file, hazardous waste storage, and Hazardous Waste, fuel tank, laboratory, office, dispatch of CPO, machine unit installation, firefighting, and vehicle traffic.

- ISBPR at Bumi Palma Estate and Bumi Lestari Estate, in January – December 2013, The activity/working process are maintenance of Immature Plant & Mature Plant (drain flushing, maintenance of stacking of sheath/manual maintenance, stacking of sheath spraying, maintenance of circle and harvesting path, weed control, fertilization (manual and plane using), pest and disease control, road maintenance, harvesting, transportation by using pompong/motorized vehicle, replanting, warehouse (fuel, oil, spare part, agrochemical, Hazardous Waste), office, knapsack and used fertilizer sack, workshop, generator, and infrastructure.

There is a record of minutes of meeting of Occupational Health & Safety program at POM and Estate, such as : - On 05 and 07 February 2013, socialization of procedure and working instruction of Occupational Health & Safety, SOP of

Estate Management and Socialization of the Understanding of Occupational Health & Safety and PPE. It was attended by processing workers.

- 01 March 2013, training of First Aid Emergency by PT Arpindo Pratama, attended by Sarari from BPMM, Marhadi from BPME, Rifaldi from BPLE and Komariah from BSNE.

- 09 March 2013, training of chemical material control and MSDS, management of Hazardous Waste and SOP of laboratory attended by the operator of WTP, sample boy, assistant of laboratory, and head/clerk of warehouse at Bumi Palma POM

- 02 May 2013, internal training of First Aid Emergency by company‟s doctor. It was attended by the supervisor of estate, assistant of division, operator, and clerk of, POM.

- Training of First Aid Emergency was attended at the Central Polyclinic of BSNE on 25 July 2013 and attended by 10 participants.

There is a SOP of Emergency Response (SOP/SMK3/SMART/LH-09) which approved by the Head of Environment & Sustainability Division on 1 July 2010. There were several emergency situations which successfully identified in this activity such as fire, explosion, pollution, natural disaster, riots, demonstrations, and work accidents. Generally, SOP contains definitions of emergencies and emergency response teams, reporting steps in case of an emergency situation, the duties and responsibilities of emergency response teams, planning and response of emergency situation, and recovering from an emergency. As the implementation of procedure, the company established an emergency team at Bumi Palma POM approved on 21 March 2013, at Bumi Palma Estate approved on 01 March 2013 and at Bumi Lestari Estate approved on 22 March 2013. The composition is described as follow: builder, chairman, secretary, public servant, chairman of the board, the fire brigade (poison fire, hydrant, sand/mud, wet burlap, and gaff hooks), health care teams, security teams, squad‟s removal, shift linkage, and evacuation team. In addition, the company also provides training, simulation, and socialization of emergency response on 10 May 2013 at the housing area of Bumi Palma Estate, which was attended by employees of Bumi Palma Estate, Bumi Palma Estate, Bumi Lestari Estate, and


ASSESSMENT REPORT


Bumi Sentosa Estate.. The company has provided several equipments for Occupational Health & Safety Program and First Aid Emergency at the working units, such as: - Bumi Palma POM

- 6 First Aid Emergency Boxes (at the office of BPMM, laboratory, warehouse, office of workshop, office of processing, and landfill of Hazardous Waste), completed with the monitoring of shelf life medicines in the list of content of First Aid Emergency box and monitoring on the completeness of First Aid Emergency box two times a month.

- Firefighting equipments, such as 21 tubes of fire extinguisher (16 dry powder tubes and 5 CO2 tubes), 4 Hydrants, 3 units of drum KTD (wet burlap, sand, shovel, bucket), monitoring of inspection is conducted every month.

- Distribution of PPE, for example on 03 March 2013 handover of PPE in the form of mask and gloves for laboratory employee and the operator of WTP.

- Bumi Palma Estate - 11 First Aid Emergency boxes, spreadly identified at the office, day care, generator house, and school at each division I -

IV. - 17 First Aid Emergency Bags brought by supervisor on his duty at the estate. - Fire prevention equipments such as 32 tubes of fire extinguisher (31 dry powder tubes and 1 CO2 tubes), 7 units of

Bakortiba Drum, 7 sacks, 6 units fire extinguisher, 6 fire beater 6 units, axes, buckets, gaff hook, and 7 unit shovels. Monitoring is conducted every month..

- Bumi Lestari Estate - 14 First Aid Emergency boxes spreadly identified at the main office, office of division 1, division 2/3, day care at division 1

and 2, workshop, etc. - 12 First Aid Emergency Bags brought by supervisor on his duty at the estate. - Fire prevention equipments such as 19 dry powder tubes, 6 units of drum KTD, 7 units of gaff hook, 1 unit of water pump,

nozzle, and nose. Monitoring is conducted every month. Based on the field survey at the nursery area of BPLE, a supervisor on behalf of Arifin Siregar brought First Aid Emergency Box was seen that he brought incomplete First Aid Emergency (no flashlight, plasters, bandages 5 cm, 10 cm and 2.5 cm) and it was not in accordance with their allocation (there were spikes, etc). Minor non conformance CAR.2013.07 is raised. Observation on 26 July 2013 : The company has a mechanism First Aid Emergency box checking at the field conducted by the assistant of field. There was a documentation of checking to the equipments in First Aid Emergency box by the assistant of nursery BPLE to the supervisor on behalf of Arifin Siregar and its handover document of First Aid Emergency box on 25 July 2013. Therefore, Nonconformance CAR.2013.07 is Closed. The company has conducted internal and external First Aid Emergency training for workers who responsible as the officer of First Aid Emergency at the working unit, such as:

- 01 – 02 March 2013, external First Aid Emergency training conducted by PT Arpindo Pratama cooperated with the Ministry of Labor and Transmigration. It was attended by the representative of employee such as Sarari from BPMM, Marhadi from BPME, Rifaldi from BPLE and Komariah from BSNE.

- 02 May 2013, internal First Aid Emergency training by the company‟s doctor. It was attended by the supervisor of estate, assistant of division, operator, and clerk of POM.

Based on the result of field survey at the Nursery of BPLE, a supervisor on behalf of Arifin Siregar has not been trained with First Aid Emergency. Minor non conformance CAR.2013.08 is raised Observation on 26 July 2013 : The company showed a list of attendance document of participant at the First Aid Emergency training on 25 July 2013 which conducted at the Central Polyclinic of BSNE. It was attended by 10 participants including Arifin Siregar (Supervisor of Nursery at BPLE). Therefore, Nonconformance CAR.2013.08 is Closed. There is a record of working accident and it is well stored by the company. Report of working accident use Working Accident Report on 1 x 24 hours form (Number of document: FP-01/SMK3/SOP-10) and Report of Accident Inspection from the Assistant (Number of document: FP-02/SMK3/SOP-10).

Based on the analysis of working accident statistic (Number of document: FP 04/SMK3-SOP-10), January – April 2013 Bumi Palma


ASSESSMENT REPORT


POM and Bumi Palma Estate did not have any working accident. Meanwhile, there were 4 light working accidents at Bumi Lestari Estate. For example, there was working accident report on 3 January 2013; a harvester at Bumi Lestari Estate got a wound on his left hand. The accident happened when he sickle FFB‟s frond, it fall into his left hand which cause stab wound. Report has been well documented.

Minor 4.7.6 Minor 4.7.7

Status:CAR 2013.07 is closed Status:CAR 2013.08 is closed

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

The company has training program in 2013 for the employee of POM and Estate, such as: - At the estate, the training was conducted on the understanding of Occupational Health & Safety, chemical material

handling and MSDS, emergency preparedness, fire extinguisher use and maintenance, ISBPR, First Aid Emergency, PPE, socialization of procedures and work instructions, control of Hazardous Waste, legislation of Occupational Health & Safety, internal audit of Occupational Safety & Health, safety riding, SOP of Processing Factory, House Keeping, Welders, operators of vapor pressure vessels and aircraft, Occupational Health & Safety general expert, forklift operator, electrician.,

- At the Estate, consisting several trainings - Internal: Understanding of Occupational Health & Safety, chemical material and MSDS, emergency preparedness, fire

extinguisher use and maintenance, ISBPR, First Aid Emergency, PPE, socialization of procedures and work instructions, control of Hazardous Waste, legislation of Occupational Health & Safety, internal audit of Occupational Safety & Health, safety riding, House Keeping.

- External: Occupational Health, welder, limited pesticide use by Pesticide Commission. Record of training that has been conducted in 2013 by the company, such as:

- Socialization of procedure and working instruction of Occupational Health & Safety, SOP of Mill Management and socialization about the Understanding of Occupational Health & Safety and PPE. It was attended by processing workers at Bumi Palma POM on 05 and 07 February 2013

- Chemical material control and MSDS, control of Hazardous Waste and SOP of Laboratory. It was attended by the operator of WTP, sample boy, assistant of laboratory, and head/clerk of warehouse at Bumi Palma POM on 09 March 2013.

- Internal First Aid Emergency training which presented by the company doctor. It was attended by the supervisor of estate, assistant of division, operator, and clerk of POM on 02 May 2013.

- Simulation of land fire was attended by 56 participants; consist of 27 participants from BPME, participants from BSNE, 15 participants from BPLE. It was conducted on 22 May 2013.

The company showed the evidence that contractor used in this activity has been trained as described in the Bidding Procedure (AA OPS/1-001) owned by BPLP. The sample of trained contractor was CV. Bintang Meriah for replanting activity, such as: 1. There is Business Permit of Construction Service number: 1.133793.1212-2.00272/2012 for Business Permit of Construction

Service. It valid until 17 December 2015 and can be used in the entire area of the Republic of Indonesia. Its qualification is Gred 2 and social security number of the company is 01.437.230.4.125.000.

2. There is a document of Classification and Qualification Detail and Construction Service Business Grade 2 for several activities, such as: Irrigation and Drainage including its maintenance; and Land preparation.

3. There is a document Certificate of Contractor Business Service from the National Construction Service Development Institution number: 1789/GAPEKSINDO/02/11/09 and number of registration: 2-1212-2-16-1-02-133793.


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

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

PT. BPLP has environmental document in the form of Environmental Evaluation Study (SEL) and Environmental Management Plan – Environmental Monitoring Plan (RKL-RPL) as part of SEL process. This SEL document has been approved (the number of letter is RC.220/713/B/V/1993) from the EIA Commission from the Agricultural Department on 5 May 1993. Meanwhile, Environmental Management Plan – Environmental Monitoring Plan (RKL-RPL) document was approved by (the number of letter is RC.220/1970/B/X/1993) the EIA Central Commission from the Agricultural Department on 20 October 1993.


ASSESSMENT REPORT


Document of SEL and Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL was composed in 1993. It stated that the wide area of plantation owned by PT. BPLP is + 6,000 hectare. The capacity of palm oil processing mill is 32 ton/hour. In its development, the wide area of SEL study and Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL is smaller than Land Use Title which obtained in 1995 as many as 6,690 hectare. Therefore, the company revised in the document of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL to adjust it with the wide area of impact analysis. The implementation of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL document revision has been approved (the number of letter is 660/DLHPE.02/VIII/2006/273) by the Environmental Agency of Indragiri Hilir District. This revision of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL document is used as the newest reference for environmental activity at PT. BPLP.

PT. BPLP has regularly composed and reported (6 month) the Implementation of Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL) to the Environmental Agency of Indragiri Hilir District. The Report of Implementation of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL composed environmental monitoring matrix such as change of hydrology, decreasing of water quality, handling of Hazardous Waste, solid waste disposal, noise disturbance and air quality decreasing, fire hazard prevention, plant pest and disease increasing, job creation and income increasing. However, the document of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL had not composing yet data and peat subsidence analysis as required by SEL document. Subsidence data is an important data in this peat land management so there was a nonconformance between environmental document request (SEL) with the implementation of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL.

The result of conducted peat subsidence measurement has been reported in the Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL First Semester of 2013. This report was submitted on 24 July 2013.

Based on this description, Potency of Nonconformance CAR.2 2013.02 is Closed.


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

PT. BPLP has identified several protected, rare, endangered, or threatened with extinction, and habitat of high conservation value. An identification result was described in the Report of Identification of High Conservation Value by PT. Bumi Palma Lestari Persada, Estates Units of Bumi Palma – Bumi Lestari – and Bumi Sentosa which was compiled in February 2013. The identification was conducted by the company's internal team namely Biodiversity and Conservation Team (Sustainability Division of PT Smart Tbk.) The team consisted of 5 people: 4 people are HCV assessor who has been approved by the RSPO. Identification of the stages has following HCVA identification guide in Indonesia issued by the Consortium Revision of HCV Toolkit Indonesia, June 2008. Based on the identification, there were two types of HCV, namely HCV 1.2 (endangered species) and HCV 6 (areas with an important function for the cultural identity of the social community). There are 10 species of birds, three species of mammals and 3 species of reptiles that used as key species (HCV 1.2). HCV 6 is encountered as an area of cemetery for 0.5 hectare. There are several HCV protection efforts conducted by the company such as: - SOP publishing about the identification and management of HCV through the document Number SOP/NP/Smart/IV/LH001 in

2010 that composed several efforts of identification, monitoring, and management of HCV. - Circular Letter number 002/SE-SMDOPS/IX/2010 on 20 September 2010 from Senior Managing Director (SMD Ops) PT. Smart

about protected animals. - Letter of Wild Rare and Endangered Animal Protection Policy signed by the SMD Ops (Daud Dharsono) on 25 June 2012. - Letter of Internal Office Memo Number 1231/M-Int/MDSP-VIC/XI/XI on 25 November 2011 from MD Service and Project

concerning zero tolerance policy to the endangered animal. - Animal monitoring on several locations is routinely conducted every month. For example a monitoring at Block H5, Division I,

BPLE, there were 3 lizards and 1 eagle. - Announcement board installation and poster of protected animals. Based on the field survey, there were several announcement

boards and posters have been installed at the main paths and determined HCV area. - Oral socialization to the community through public consultation about HCV analysis result on 11 May 2013, as showed by the

list of attendance in socialization activity.

The company has special and trained officers (PIC) who have same level with assistant. Their duties are to control and manage


ASSESSMENT REPORT


HCV. There is one PIC for one estate and they have been approved by the Decree of Estate Manager, as follow:

- Agus Wibowo for Bumi Lestari Estate - Pendra Wangu T. for Bumi Palma Estate - Martin Anamesa for Bumi Sentosa Estate.

The training has been internally conducted by Biodiversity and Conservation Team especially HCV approved assessor. The content of training was available and it can be shown in the form of presentation slides.


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

The company has identified several waste sources as described in the SOP of Waste Management (SOP/SPO/SMART/LH-09, it was approved on 1 July 2010) and the results of identification are listed below:

Source of Waste Type of Waste Waste Management

Mill activity Shell It is used as the boiler fuel material.

Fiber It is used as the boiler fuel material.

Plantation waste Frond and fruit stalk. It was arranged in dead stacking of sheath.

Used agrochemical packs. It was washed for three times and stored at the warehouse to be sent back to the supplier

Domestic waste Used tire and metal. It was stored in special area and labeled.

Liquid waste (toilet) It was disposed through septic tank

Liquid waste (bathing and washing)

It was disposed to the drainage.

Clinical waste Infectious waste It was stored in special area and labeled. It was also cooperated with licensed incinerator. Minimally, it was sent to licensed party who own incinerator every 3 months

Based on the result of interview and study of document, it can be identified that used oil waste from the generator at the water pump house was still kept at the pump house since 1 July 2013. Major nonconformance raised CAR.2013.09 Observation 27 July 2013 The company has showed log book that used oil waste as many as 30 liter from pump house has been placed at the Temporary Disposal Area (warehouse) on 26 July. There was a minutes of meeting and documentation of this activity. There was also a minutes of meeting of 30 liter used oil handover from overflow generator house on 26 July 2013. It was delivered by the generator operator and received by the clerk of workshop. It was also known by the manager (it was completed with documentation record). Nonconformance CAR 2013.09 is Closed. The company has conducted waste management in accordance with the identification result, such as: - Used Agrochemical Pack Waste: There is a minutes of meeting of used agrochemical pack waste from warehouse of BPLE to

the supplier, for example the delivery of jerry can ex Roll up (11 pieces), jerry can ex Rolixone (18 pieces), and bottle ex Erkafuron (108 pieces) on 2 July 2013. There is a minutes of meeting of used agrochemical waste washing on 3 June (its type and amount was similar with delivered waste).

- Clinic waste: There is a minutes of meeting of medical waste handover from Bumi Sentosa Central Clinic of PT. Bumipalma Lestaripersada to the Puri Husada Hospital on 09 April 2013 as many as 3 kg.

- Shell and fiber waste: there was 545 ton of shell and 1,238 fiber for boiler fuel in June 2013. The management of Hazardous Waste is described in the SOP of Hazardous Waste Management (Number of document: SOP/SPO/SMART/LH-18) First Revision on 01 October 2011. Hazardous Waste produced by the estate and mill activity was temporary stored at the Landfill of Hazardous Waste which licensed by the local government. It was then delivered to the final Hazardous Waste collector. For the final collector of Hazardous Waste, the company has cooperated with PT BINASAMSURYA MANDALAPUTRA. This company has been licensed by the government of Indonesia in accordance with the Decree of Environmental State Minister number


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294 of 2010. All produced Hazardous Wastes by the company are well documented in Hazardous Waste Balance and those are routinely reported (3 months) to the government. The company has conducted Hazardous Waste management in accordance with the result of identification, such as: - Hazardous Waste from the Estate to the Landfill of Hazardous Waste: for example a delivery report on 15 July 2013 from

BPME to the landfill of Hazardous Waste as many as 200 liter used oil, 40 pieces used filter, 15 pieces contaminated clothes, and 14 pieces light bulbs.

- Hazardous Waste from BPLP to final collector: for example manifest of Hazardous Waste Delivery on 23 February 2013 from Bumi Palma POM to PT Binasamsurya Mandalaputra in the form of 5 drums used oil, 17 pieces used battery, 101 kg used filter, 65 kg contaminated clothes, and 6 kg light bulbs.

Major 5.3.2 Status:CAR 2013.09 is closed

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

Renewable energy used in this activity is fiber and shell solid waste for boiler fuel. Water sterilization at the boiler will produce steam that can move the turbine and produced electricity. Once electricity is produced by turbine, the generator that use diesel as its fuel will be stopped. Based on the data of CPO produced by Bumipalma Mill, the average renewable energy used in this activity is 92 KWh/ton CPO (2011), 88 Kwh/ton CPO (2012), and 52 kwh/ton CPO (June). In 2011, all fiber and shell were used to produce energy; It could reduce the fuel consumption as 812,471 liter. In 2012, all fiber and shell were used to produce energy; It could reduce the fuel consumption as 848,018 liter.


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

The company does not burn land for its clearing (zero burning). Land preparation for replanting activity was conducted in accordance with the SOP of Land Clearing (SMA/MCAR/05/05-07, revision 02) which conducted on 18 April 2007. There are several land clearing phases such as spatial planning compilation, path blocking, road construction, land clearing (cutting small logs diameter < 15 cm, cutting down, mechanical stacking, pile stack path, implementation of mechanical stacking, chopping block, and so on). Based on the result of field survey to the replanting area (Block H9, Division II, and Bumi Palma Estate) there was no land burning (zero burning) for land clearing. There were also several chopped palm trees and stacked them in prepared drain. The company also has socialized trash burning prohibition through announcement board around the housing area of employee. Based on the field survey and interview, it was identified that the employees and their families had known this trash burning prohibition. Procedure of fire prevention and management is presented in the SOP of Emergency Response (SOP/SMK3/SMART/LH-09, on 1 July 2010) and SOP of Land Fire Management (SOP/NP/SMART/XI/L-H002 on 1 July 2010). Each unit of management (estate and mill) has fire extinguisher team who has attending simulation of fire emergency response. There is an evidence of land fire emergency response simulation. It was conducted on 22 May 2013 at Lestari Estate (BPLE). There was also simulation of fire emergency response at the housing area on 10 May 2013 at Pondok Bumi Palma Estate. This simulation was attended by the representative of fire extinguisher team from all estates and mills. Potency of Nonconformance CAR.2013.03 is Closed. Based on the result of interview with fire emergency response team, it was identified that the team has understood the procedure of fire emergency response. Facilities and infrastructure of fire control/management are available at each management unit (estate and mill). Several facilities and infrastructures are fire extinguisher, motorized vehicle of fire extinguisher, water machine, water hose, and nozzle. The company has routinely checked fire extinguisher facilities and infrastructure (once a month). Based on the result of simulation of land fire control/management facilities and infrastructure at BPME and BPLE, all facilities and infrastructure were properly functioning.


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

The company has identified source of pollution and emission at the estate:

- List of Environmental Aspect at Bumipalma Mill in 2013, there were several aspects to be analyzed such as impact potency,


ASSESSMENT REPORT


related SOP, and management plan. The source of pollution and emission was identified at the station of palm oil processing (receiving of FFB, sterilizer, threshing, pressing, clarification, Nut & kernel, engine room, and so on).

- List of Environmental Aspect at Estate. The source of pollution and emission was identified at each activity in the plantation area from nursery area, maintenance, harvesting, transportation, warehouse, and so on.

There was chemical material spill (fuel/oil) on the ground so it can pollute the environment at two locations: Location: mill‟s fuel tank and warehouse of generator at Division 2/3. Raised Minor non conformance CAR.2013.10 Observation 25 July 2013 Ground floor in the front of fuel tank has been cemented in order to directly prevent oil spill on the ground. The dimension of fuel charging is widening so it minimize its spill on the ground. Minor Nonconformance CAR.2013.10 is Closed. BPLP has conducted periodic measurements of air quality (emission and ambient) every six months by the Center for Occupational Health & Safety, Ministry of Manpower and Transmigration in Medan, as an accredited laboratory. Measurements have been carried out for the 2nd half of 2012 which conducted on 14 November 2012 at the mill (emission of boilers and generators) as well as in the mill environment (ambient). Based on the measurement results, all environmental parameters met the emission and ambient air quality standards as stipulated by the government regulations. The results of inspection to the mill‟s pollution and emission management are listed below:

- Boiler and generator. The mill operates 2 boilers and 3 generators. All of them have been tested especially their air quality and emission.

- Kernel Station and Machine Room. Based on the interview result with the operator of machine and boiler, Personal Protective Equipments (earmuff, helmet) were provided by the company. The operator has got a license to operate the machine by the related agency.

- The use of shell and fiber as the source of renewable energy. - There was no liquid waste application to the land.

Waste Water Pond is located at the Bumi Palma Estate. Its wide area is 7,95 ha and the capacity is 67,620 m3. Liquid waste was well managed so liquid waste disposed to the water was not exceeding its valid quality standard. The name board of liquid waste quality test has been installed at the outlet of 4A pond. WWTP consist of: 1. Pond 1 as cooling pond which consist of 4 sub ponds namely Pond 1A (capacity is, .043 m3), 1B (capacity is 4,588 m3), 1C

(capacity is 3,908 m3), 1D (capacity is 3,899 m3). 2. Pond 2 as anaerobic ponds that consist of 4 sub ponds namely Pond 2A (capacity is 4,977 m3), 2B (ka capacity is 4,330 m3), 2C

(capacity is 3,373 m3), 2D (capacity is 3,582 m3). 3. Pond 3 as anaerobic ponds that consist of 4 sub ponds namely Pond 3A (capacity is 4,991 m3), 3B (capacity is 4,705 m3), 3C

(capacity is 3,472 m3), 3D (capacity is 3,582 m3). 4. Pond 4 as anaerobic ponds 4C (capacity is 4,158 m3) and 4D (capacity is 4,127 m3). that consist of 2 sub ponds namely Pond 5. Pond 4 as polishing pond that consist of 2 sub ponds namely Pond 4A (capacity is 4,241 m3) and Pond 4B (capacity is 4,645

m3). Pond 4A and 4B as polishing pond which planted with vertifer grass.

Minor 5.6.1 Status:CAR 2013.10 is closed

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

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

There was a Report of Social Impact Identification Study at the Estate and Palm Oil Mill of PT Bumi Palma Lestari in 2013 which describe about the negative and positive impact caused by the operational activities of plantation. It was also completed with the Recommendation of Negative Impact Management and Recommendation of Positive Impact Increasing. There was also a Matrix of Social Impact Monitoring Plan and Matrix of Social Impact Management Plan. The result of this Social Impact Identification Study has been socialized to many parties.


ASSESSMENT REPORT


This document has been revised by adding positive and negative impacts caused by replanting activity in social and environmental aspect. These several activities at replanting phase impacted other activities, such as: 1. Nursery impacted to workers recruitment. However, in the other hand, it also impacted to the decreasing of worker in other

section such as harvesting section because of the harvesting area decreasing to be harvested. Some workers at this section must be early retired. In the other words, it increased the number of resigned workers from the company because their job did not meet their desired initial job.

2. Mobilization of heavy equipment such as excavator, bulldozer and chipping bucket for land preparation process. The use of truck impacted the use of workers during equipments mobilization. However, it also impacted to the decreasing of air quality and makes it dusty and produces air pollution.

3. Palm tree cutting impacted workers recruitment because it was manually conducted by using heavy equipments so it needed workers from the local contractor. However, it can also impacted air quality decreasing because the use of heavy equipment. It produced emission, pollution, and dust in high amount.

4. Planting activity impacted environmental quality decreasing such as land erosion rate indication because water cannot be absorbed entirely by the roots.

PT. Bumipalma Lestaripersada has regularly composed and reported (6 month) the Implementation of Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL) to the Environmental Agency of Indragiri Hilir. The Implementation Report of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL Period I in 2013 has been submitted on 24 July 2013. This report contains matrix of environmental management and environmental monitoring in accordance with the document of Environmental Management Plan and Environmental Monitoring Plan (Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL) which composed in 2006. This RKL RPL document contains environmental parameter analysis by comparing it to the valid quality standard. Based on this description, Potency of Nonconformance CAR.2013.04 is Closed.


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.

There is a procedure of communication and consultation with the community in the form of SOP of Communication and Consultation (SOP/NP/SMART/XIV/MCAR003) on 1 July 2010 (Revision I). In this SOP, communication can be directly conducted. It can also be conducted by using mail which delivered through mail boxes at the office of mill and estate. There was a record socialization activity about SOP of communication and consultation to the community which conducted at Bumi Palma Estate on 6 March 2013 and Bumi Lestari Estate on 9 February 2013 (there was a list of attendance and activity documentation). It was attended by the community around the plantation area. Based on the result of public consultation with the company‟s stakeholder on 23 July 2013, it can be identified that the procedure of this communication and consultation has been known. The company has a list of stakeholder, the last update was on 28 December 2012, consist of;

a. Statutory Bodies: 14 Stakeholders b. Indigenous People: 5 stakeholders c. Local Community: 5 stakeholders d. Workers Organization: 5 Stakeholders e. Smallholders: 5 Stakeholders f. Independent Supplier: 2 Stakeholders g. NGO: 3 Stakeholders

The company has composed the Manager of Estate and Manager of POM as the person in charge to conduct communication and consultation with the community. There was a sample of letter of RC Indragiri. The number of letter is 006/RC-Indragiri/SPO/VI/2012 dated 02 August 2011 concerning Social Responsibility that Erham Saputra (Manager of BPLE) was pointed at Bumi Lestari Estate. The record of communication was documented at the Communication Book and/or Complaint Book. All incoming mails have been described including the company response and its last status. Most of the incoming mail were donation request, such as:

- BPMM: on 27 May 2013, there was a request for fund donation from the youth of S. Gantang Village for volley ball tournament. It has been followed up by the company on 30 May 2013. BPMM donated IDR 250.000. In June, there was no


ASSESSMENT REPORT


request or aspiration/communication from the community. - BPLE: on 24 May 2013, there was a fund donation request for the farewell party of Elementary School of PT. BPLP as

much as Rp.400.000. It has been followed up on 5 June 2013 by donating some money as requested. In June – July 2013 there was no request or aspiration/communication from the community.

- BPME: on 14 June 2013, there was a fund request to replace neighborhood health center cost as much as Rp.100.000. It has been followed up on 19 June 2013 by donating some money as requested.


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

There was a document of procedure of Grievance and Dissatisfaction Management (SOP/NP/SMART/XII/MCAR001) on 01 July 2010. Based on this SOP, the mechanism of grievance management is divided into three types, such as: - Internal grievance: grievance submitted by this type of employee was the Mechanism of Grievance and Dissatisfaction

Management - Grievance 1. - External grievance: grievance submitted by external party was the Mechanism of Grievance and Dissatisfaction Management -

Grievance 2. - Female workers grievance: grievance submitted by female workers was the Mechanism of Grievance and Dissatisfaction

Management - Grievance 3.

Based on the study to the complaint book of BPMM, BPLE, and BPMM, it can be identified that there was no complaint in July 2013. Generally, incoming mails are asking for fund donation or village road construction fund. In 2013, there was a complaint from the community related with palm tree beetle attack at the company‟s operational area and community estates. The company has responded this complaint. Negotiation was still in progress between these two parties. The temporary agreement was showed by the letter from the Advocate Office of Zainuddin SH & Friends on 23 July 2013. The number of letter is: 025/A-Z/VII/2013 concerning Solving Options Submission Between Smallholders and PT. BPLP. The conclusions were:

1. The smallholders are willing to cooperate with PT. BPLP by using scheme smallholder system (note: partnership is only for schemed estate and smallholders are involved in the technical management, system, and mechanism of scheme pattern through further discussion).

2. This scheme smallholder pattern can be realized if PT BPLP gives compassion/consolation before the Islamic Holiday 1434 H.

3. This agreement can be conducted in front of the Notary in Tembilahan. (On behalf of Maryanto/representative of the community, and Zainuddin SH).

Based on the notification from Department of D&L and Regional Controller of PT. BPLP, company‟s procedure, PT. BPLP will then deliver letter from the Advocate Office of Zainuddin SH & Friends on 23 July 2013 to the management of headquarter of PT. SMART Jakarta for follow up. The deadline of this letter response is 1 month (maximum). For a while, the company (PT. BPLP) keep holding letter on 1 July 2013 that the company is willing to make restitution for Rp.21.000.000/ha and land belong to the company after completion of compensation. There is a Procedure of Land Compensation. The number of document is SOP/NP/SMART/VII/D&L002, and valid since July 2010. The coverage of this SOP is all activities related with the process and procedure of compensation to the Land/Crops in Location Permit/Right on Land used by the company. In the Section 6. Working Phase, point 6.2, it is explained that pre-inventory activity is finished to be conducted. The company conducted several physical inventory activities, such as: land area measurement, calculation the number and type of plant parcels (inventory of land owner) in accordance with the evidence of land ownership conducted and witnessed by Land Clearing and Local Government Team, that consist of:

a. Land owner b. Local government c. Limit boundary d. Witness of riparian (if any) e. Representative of the sub district f. Representative of the company

There is a record of grievance management which documented in the Complaint Book, such as: - Bumi Palma POM, January – April 2013, there was no grievance from the workers of POM. - Bumi Palma Estate, January – April 2013 there were 2 grievance from the workers and those have been responded by the

company, for example on 8 April 2013, worker at Division 4 of BPME asked for used zinc for house reconstruction and it has been responded by the company by giving used zinc as many as 30 pieces on 8 April 2013.


ASSESSMENT REPORT


- Bumi Lestari Estate, January – April 2013 there were 4 grievances from the workers and those have been responded by the company, for example on 17 April 2013, grievance about clogged toiler repairmen at the housing area of workers. It has been responded by Estate Manager on 19 April 2013. This repairman has been completed on 25 April 2013 as described in Supervisor Activity Book (BKM).


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

PT Bumipalma Lestaripersada has a Technical Guideline of Land Clearing, Land Compensation (SOP/NP/SMART/VII/D&L002). Its coverage is all activities that related with the process and procedure of land/crops payment in the Location Permit/Right on Land used by the company. Based on the book (bundle) of land compensation payment process, it can be identified that identification processes and land compensation payment are conducted by involving and get in through the agreement of several parties such as: land owner, village head, sub district head, and staff of Land Agency at the District. The process of compensation payment to the community land has been conducted in the beginning of estate opening. There were several evidences about this compensation payment. These evidences were documented in the book (bundle) of land compensation payment process, such as:

- An evidence in the form of Inventory List of Land/Plant Impacted by the Plan at the Location of PT Bumipalma Lestaripersada & List of attendance of Compensation Payment Plan Meeting.

- An evidence in the form of Confidential Letter from land owner who will received compensation payment, for example Mr. Muhammad Saleh and Notification Letter of Right Releasing, signed by land owner, representative of plantation, Village Head, Sub District Head, and staff of Land Office of the district

- Evidence in the form of payment receipt to the land owner signed by the representative of PT Bumipalma Lestaripersada, land owner, Village Head, and Sub District Head.


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.

The document of employee wages can be showed at each estate. Employee wages was based on the Regulation of Riau Governor Number 67 year 2012 concerning minimum wage in Indragiri Hilir District as much as IDR 1.492.000,- /month. This wage payment has followed the regulation. Office clerks group at the Division 2 of Bumi Sentosa Estate (April 2013) namely Hanafi, Syafri, Aman, and Hasrijon earned basic wage as much as IDR 1,511,500 Harvesting group at the Division 2 of Bumi Sentosa Estate (April 2013) namely Arsad, Kahar, Arbain, and Zulmahdi earned basic wage as much as IDR 1,511,500. Daily freelancer for FFB loading is paid according to his working day such as Rikardo (IDR 390,240), Siragih (IDR 715,440), Saprudin (IDR 910,560), and Huda (IDR 892,349). The employee has working agreement with the company, such as:

- Daily SKU workers – It refers to the Collective Labor Agreement between Agency for Cooperation between Sumatera Plantations (BKS-PPS) with the Executive Committee of the Federation of Agriculture and Plantation Workers Union of Indonesia (PP.FSP.PP-SPSI) which has been registered under the Decree of the Director General of Industrial Relations Labor and Social Security. The number of Decree is 191/PHIJSK-PKKAD/PKB/XII/2012 with a validity period of 14 November 2012 - 13 November 2014.

- Staff and assistant refer to the Smart Company‟s Regulation in 2013-2014. The document was approved by the relevant authorities on 11 December 2012.

- Freelancer referred to the Circular Letter CEO PSM 5 on 3 January 2007, about non-permanent/freelancer employment agreement.

Facilities and infrastructures for the welfare of employees are available such as houses, mosques, churches, sports halls and auxiliary clinics. The auditors visited the housing area at Division 1, 2 and 3 of Bumi Lestari Estate to assess the feasibility of housing, educational facilities (elementary school), daycare, and health facilities. This year, the company is currently renovating several housing units at G1 (the target is 2 units), G2 (7 units have been built). New housing development is built in stages until the next 4 years at G1 (8 units) and G2 (54 units).


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Based on the inspection result at the housing area of Bumi Lestari and Bumi Palma, the visit at this location was also focused on the observation of housing and other support facilities. The results showed that there are several other facilities around the housing area of workers, among others: religious facilities, sports halls, daycare and kindergarten, elementary school and junior high school. There was an interview with a second grade teacher and the principal of Pesifera elementary school of PT BPLP. Based on the interviews, it was identified that the school was founded in 1997. The school building, operational costs, teachers' salaries are fully borne by the company. The students of this school are come from several divisions at PT BPLP. The parents are not charged for school fee except the procurement of school uniform and sports wears. There is also school bus for the students from the other divisions.


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.

There was a Circular Letter Number 045/CEO5-SE/11/2010 on 16 November 2010 which stated that the company respects the valid regulation and rules as stipulated in the Law number 21 year 2000 including workers union freedom as a basic right for workers. It is written in the document of Collective Labor Agreement BKS PPS in 2013 Paragraph II Organization Recognition Paragraph a, b, and c. The management of Working Unit at SPPP-SPSI is available at each working unit of POM and Estate, such as: Bumi Palma POM

- The management of Working Unit at SPPP-SPSI of Bumi Palma POM has been registered by Labor and Transmigration Agency, Indragiri Hilir District. The number of Its Recording is 58/NAKERTRANS-PKHI/560 on 22 October 2012. The composition of its management board is: Chairman: M. Fadinal Mirza, Secretary: Andi Parengrengi, Treasurer: Aman Mahdi.

- There is a list of worker who becomes the member of worker union in April 2013 as many as 127 workers. Bumi Palma Estate

- The management of Working Unit at SPPP-SPSI of Bumi Palma has been registered by Labor and Transmigration Agency, Indragiri Hilir District. The number of Its Recording is 56/NAKERTRANS-PKHI/560 on 22 October 2012. The composition of its management board is: Chairman: J. Sirait, Secretary: Kaharudin, Treasurer: Rajemah.

- There is a list of worker who becomes the member of SPSI as many as 269 workers. Bumi Lestari Estate

- The management of Working Unit at SPPP-SPSI of Bumi Lestari Estate has been registered by Labor and Transmigration Agency, Indragiri Hilir District. The number of Its Recording is 57/NAKERTRANS-PKHI/560 on 22 October 2012. The composition of its management board is: Chairman: Noncik, Vice Chairman: Hendrik Firdaus, Secretary: Juriatno, Treasurer: Sugianto

- There is a list of worker who becomes the member of SPSI as many as 1,729 workers.

Workers union meeting with the management of company and internal worker union has been conducted. There was a record of this meeting as described below: Meeting of internal worker union:

- 11 and 12 February 2013, meeting of SPPP-SPSI Riau. Its agenda was UMSP in 2013 with GAPKI & Collective Labor Agreement between „Corporation Sumatera Plantations‟ at Hotel Grand Central Pekanbaru.

- 19 February 2013, meeting of SPPP-SPSI in Riau Province. Its agenda was advanced negotiation of UMSP of Riau Province in 2013 at Hotel Grand Central Pekanbaru.

- 07 March 2013, meeting of PUK SPPP-SPSI BPLE. Its agenda was: a. Socialization of change of bonus basic calculation in 2012 which agreed by the management. b. Incomplete worker problems, such as: wage of daily harvester should be similar with FFB loading daily workers, their

basic wage can be cut, daily harvester who has worked for 3 months or more can be immediately promoted to be SKU, wage of SKU harvesters who do not meet the basic should not be cut but considering their working hours and harvested wide area, the company should provide vehicle to go to central clinic, so far the workers use their own vehicle or rent.

Meeting with the management of company:


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- 06 December 2012, meeting of PUK SPPP-SPSI BPMM, BPME, BPLE, and BSNE. The agenda of meeting was the discussion about criteria and formulation of annual bonuses. It was conducted at the Office of RC BPME. The agreement of this meeting was a new bonus calculation which adjusted with valid regulation at PT BPLP.

- 11 March 2013, meeting of PUK SPPP-SPSI BPMM, BPME, BPLE, and BSNE with the management unit of PT BPLP (Factory Manager, Estate Manager, and PIC RSPO). The agenda of this meeting was socialization of consolidation cost. The result of this meeting showed that workers bonus payment is charged with consolidation cost as many as 5 % of their monthly wage. It is directly deducted and it is received by PUK-SPSI. As the compliance of this agreement, there was a record of workers bonus payment in 2012 at Bumi Lestari Estate. Its consolidation cost was 5% for each worker and paid on 16 March 2013.


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

Based on the Circular Letter from the HR Director Number 002/SE-HRDV/03/09 on 31 March 2009 concerning Minimum Age, the company stated the minimum age of worker is 18 years old according to the Law number 13 year 2003. It is announced at each estate that inform about the content of this circular letter on 31 March 2013. For example, there was an announcement board at Bumipalma Lestaripersada Estate inside its office that it is forbidden to employee worker below 18 years old. There is a list of employee at the POM and Estate in April 2013, that consist of data of employee number, name of employee, date of birth, sex, group ethnic, age, group, position, and residence. Based on the observation to the document, there was no worker below 18 years old when he was recruited as company‟s employee.


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.

There was a circular letter from the CEO of PSM 5 Number 003/CEO5-SE/06/2009 on 24 June 2009 concerning the Implementation of Industrial Relationship at the Unit. It stated that each operational working unit must implement industrial relationship regardless ethnic, religion, race, and sex in all working sections. There is a list of employee at the POM and Estate in April 2013, that consist of data of employee number, name of employee, date of birth, sex, group ethnic, age, group, position, and residence. Based on the observation to the document, there were male and female workers, Muslim and Christian. They come from different ethnics such as Banjarnese, Bugisnese, Javanese, Kerinci, Malay, Manado, Minang, Palembang, and Sundanese. It showed that the company gave equal opportunity and treatment for their working opportunity with no difference in ethnic, religion, race, and sex in all working area according to the company‟s policy.


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

The company has established a policy to prevent sexual harassment, to prevent criminality to female workers, and to protect the reproduction right of female workers. There is a Circular Letter from the CEO 5 Number 001/CEO5-SE/02/2009 on 20 February 2009 concerning Socialization of Sexual Harassment Problem. It stated that the company must socialize Sexual Harassment prevention to all company‟s workers. The policy of company concerning reproduction rights protection is regulated in:

- Circular Letter from the CEO 5 Number 002/CEO 5-SE/03/2009 on 02 March 2009 concerning Menstrual Period Permit states that the company gives employees time off for menstrual women as much as 2 days/month (first and second day) with a doctor's checkup.

- Memorandum of VPA PSM 5 Number 001/SE/VPA5/12/08 on 20 December 2008 concerning pregnant workers and breastfeeding workers states that the company does not allow pregnant workers and breastfeeding workers to work at spraying section.

- Collective Labor Agreement between Agency for Cooperation between Sumatera Plantations (BKS-PPS) with the Executive Committee of the Federation of Agriculture and Plantation Workers Union of Indonesia (PP.FSPPP-SPSI) :

- H1 (period leave), for female workers as many as 2 days/month (first and second day) with a doctor's checkup. - H2 (maternity leave) for 3 months: the detail is 1.5 month before birth delivery and 1.5 month after birth delivery by


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doctor‟s checkup and calculation. The evidence of the implementation of sexual harassment prevention policy can be showed. The company established a Gender Committee at the working unit namely Gender Committee at Bumi Palma POM, led by Ms. Nurhaidah. Gender Committee at Bumi Palma Estate, led by Ms. Rumiati Ismail, and Gender Committee at Bumi Lestari Estate lead by Ms. Lailansyah. There are several Working Program by Gender Committee at Bumi Palma POM in 2013, such as;

- Socialization of sexual harassment at each housing area in April – August 2013.

- Public facilities checking such as praying house and sport hall in February – December 2013.

- Neighborhood health center is conducted every month. There were several records of Gender Committee meeting, such as :

- Bumi Palma POM on 18 April 2013 at the Housing Area of BPMM. It was attended by the member of Gender Committee, workers‟ wife, RSPO PSM, RSPO Officer and the company‟s doctor. The agendas of this meeting were: - No sexual harassment case until April 2013. - Sharing about how to take care baby for better quality. - An appeal not to burn waste and to separate organic and inorganic waste.

- Bumi Lestari Estate on 2 April 2013. The agendas of this meeting were about delivery flow in case of sexual harassment to the workers and the function of Gender Committee is to collect, facilitate, and deliver woman workers‟ complaint in sexual harassment.

- The company has conducted a seminar about sexual harassment prevention on 22 May 2013 at Club House. It was attended by 18 participants.

The record of the implementation of reproduction rights protection policy is also available in the form of record book for H1 (period leave) and H2 (maternity leave) at Bumi Palma POM, Bumi Palma Estate and Bumi Lestari Estate, for example:

- Fruit buncher at Bumi Lestari Estate on 5 and 6 April 2013 for H1 (period leave). Based on the observation of the document of SKU wage detail list in April 2013, this employee is still paid.

- Teacher at Division 2 of Bumi Palma Estate H2 (maternity leave) in February – May 2013. Based on the observation of the document of SKU wage detail list in April 2013, this employee is still paid.

There is a SOP of Grievance and Dissatisfaction Management (SOP/NP/SMART/XII/MCAR001) which approved by the Head of MCAR on 01 July 2010. Based on this SOP, the mechanism of grievance management is divided into 3 types, such as: - Internal grievance in the form of the Mechanism of Grievance and Dissatisfaction Management - Grievance 1. It is a grievance

from the workers which deliver through PUK-SPSI by writing a letter to the Unit Head. The grievance is then received and verified by the Assistant of Head/Administration. Response to this grievance is then immediately given within a month after the receiving of its problem. Its problem solving is conducted by using deliberation process. If it cannot be solved, it can be forwarded to higher leader.

- External Grievance in the form of the Mechanism of Grievance and Dissatisfaction Management - Grievance 2. Oral and written grievance can be accepted and completed with the personal identity and legal evidences. Then, grievance and dissatisfaction can be accepted and verified by the Unit Head. Response on grievance can be immediately given within a month after the after the receiving of its problem. Its problem solving is conducted by using deliberation process. If it cannot be solved, legal action will be taken.

- Grievance of female workers in the form of the Mechanism of Grievance and Dissatisfaction Management - Grievance 3, by individually delivering grievance and dissatisfaction through female workers organization. Grievance will be then accepted and verified by Unit Head and the mechanism of completion refers to the internal grievance management.

There is a mechanism about sexual harassment solving at PT BPLP. It consist of 4 steps; - If there is a sexual harassment and victim, worker can complaint to PRISMA (Female Workers Unity of Meganusa and

Bumipalma) or the management board of Gender Committee both oral and written. PRISMA and the management board of Gender Committee will analyze/process its complaint according to the information from victim.

- PRISMA and the management board of Gender Committee accompany victim to report it to unit head. - Based on the information and data, unit head will check for evidences. - After the convicted offender, unit head can impose sanctions in accordance with company regulations or through legal

channels.



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

PT Bumipalma Lestaripersada, through Bumipalma Mill purchase FFB from the local smallholders (individual smallholders/not small scheme holders). It is conducted by the supplier of FFB through the cooperation of PT Bumipalma Lestaripersada with PT Agrotunggal Jayamandiri as vendor of 4 FFB suppliers (local smallholders). The price of FFB is determined by Purchase Manager (Head Office) by considering the potency of OER/KER, processing cost, international market price, price determined by Plantation Agency and price by other competitors (the price must be mutually agreed with Business Control & Funding PSM 5). The price of FFB will be always renewed at a certain period with market price condition. FFB supplier is free to sell to other place if they disagree with price in certain period. In addition of FFB purchasing from the smallholders, the company also cooperated with local contractor for other services, for example the use of local contractor service in replanting and grass cutting.


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

The contribution of the company in the local development by paying tax, implementation of CD/CSR program, and purchasing to local entrepreneurs. There were samples of company contribution to local development, such as: 1. Payment of Land & building tax in 2012 for taxable as many as 67,180,782 m2 (Rp. 913,707,360) in Mumpa Village, Tempuling

Sub District, Indragiri Hilir District 2. The implementation of CD/CSR at PT Bumipalma Lestaripersada: Bumi Palma Estate There are several samples of recording, such as:

- List of CSR Program at Bumi Palma Estate (BPME) in January - December 2012, there are 40 activities such as: education fund: Assistance for Education, Sport and Religious and Social Activity (Glasses Procurement)

- Picture of implementation: Safari of Islamic Holy Month/Ramadan, Cement procurement for praying house construction. - Fund Donation Handover for Football Tournament in Bagan Jaya Village Enok Sub District on 19 May 2012.

Bumi Lestari Estate There are several samples of recording, such as:

- Recapitulation of CSR Activity Implementation Report at Bumi Lestari (BPLE) in January - December 2012, there are 35 activities: Office furniture procurement, sports, and Social Activity (Glasses Procurement)

- Picture of implementation of Religious Activity and Free Treatment. Minutes of meeting of Sport Equipments and Art Handover for State Elementary School 035.

3. Local purchasing Bumi Palma Estate Local purchasing, there is a recapitulation of local purchasing in January – April 2013. This local purchasing consist of: office tools purchasing and other operational equipment in the shops near the plantation area. Bumi Lestari Estate Local purchasing, there is a recapitulation of local purchasing in January – April 2013, This local purchasing consists of: office tools purchasing and other operational equipment in the shops near the plantation area. Based on the information from the management of estate and also several statements from many parties during stakeholders consultation, it can be identified that the management of estate also impacted surrounding community, such as:

- The opening of road access from and to surrounding estate area and villages. - The opening of job for surrounding activity. - The farmers (independent farmers) can sell FFB to PT BPLP - There are several activities (assistance) given by the company, such as donation for religion holydays commemoration. - The use of local contractor and goods purchasing from local entrepreneur.

Status: Full Compliance

PRINCIPLE #7 Responsible development of new plantings


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

The company has conducted replanting activity at several estate parts. For this replanting activity, environmental document still referred to the environmental management document which composed at the early phase of environmental development namely Environmental Evaluation Study (SEL) and Environmental Management Plan – Environmental Monitoring Plan (RKL-RPL) as part of SEL.


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

There is a semi detail land map published by Plantation Monitoring And Planning Division (PMNP) scale 1: 25,000. The number of registration is 447/202/PMNP/VII/2007. It contains the type of soil, land topography, land texture, drainage condition, land conformity level, and boundary factors, such as: Bumi Lestari Estate

SPT Soil Classification Thickness of peat

Slope GWT Cm

Mature Level Conformity Class

Boundary Level

Wide area Up Down

1 Sapric tropofibrist 2.5-3 m 0-3% 60 -80

Sapric Fibric S3 Mature and thickness of peat, drainage.

994.33

2 Hemic tropofibrist 2.5-3 m 0-3% 50 -70

Hemic Fibric S3 765.22

3 Sapric tropohemist 2.5-3 m 0-3% 70 -100

sapric hemic S3 Thickness of peat, drainage.

65.94

Bumi Palma Estate

SPT Soil Classification Thickness of peat

Slope GWT Cm

Mature Level Conformity Class

Boundary Level

Wide area Up Down

1 Sapric tropofibrist 2.5 -3 M 0-3% 60 -80

Sapric Fibric S3 Mature and thickness of peat, drainage.

1,653.5

2 Hemic tropofibrist 2.5 -3 M 0-3% 50 -70

Hemic Fibric S3 Mature and thickness of peat, drainage.

1,133.43

3 Sapric tropohemist 2.5 -3 M 0-3% 70 -100

sapric hemic S3 Mature of peat, drainage.

213.28


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

Based on the Document of HCV Identification Report at PT BPLP, it can be identified that the company cleared new land area in 2005. Replanting was conducted at several areas in 2005. It was conducted at legal area in accordance with the certificate of Land Use Title of PT BPLP. There is HCV Identification Report at PT. Bumipalma Lestaripersada working unit of Bumi Palma – Bumi Lestari – and Bumi Sentosa. The study of High Conservation Value (HCV) Identification was conducted by internal company team namely Biodiversity and Conservation Team from Sustainability Division of Smart Tbk. Several team members are an assessor of HCS that has been identified at the RSPO. Based on this document, there was no new replanting/opening of primary forest/identified as HCV area.


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

PT Bumi Palma Lestari Persada area is peat land. Its slope level is 0-3% Its land conformity level is S3 (marginal appropriate). Its boundary factor is drainage and peat matureness. The company conducted several strategies such as soil condensation, field drain making with the amount of 1;16, 1;8, 1;4 or 1;2 in accordance with the necessity. Drain maintenance in peat area and low area is conducted once a year, at the beginning before first planting, water management was conducted. It consists of dam making, piezo meter making, and water level monitoring. The company has conducted fertilization in accordance with the dose as recommended by SMARTRI. In addition, there is also an empty fruit bunch ash fertilization to increase soil fertility.


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

This plantation area managed by PT Bumipalma Lestaripersada is taken over from PT Ivomas Tunggal and PT Puri Mas Sasmita from PT Pulau Sambu Group in 1997. There is a document of Minutes of Meeting of Plantation Physical Handover for PT Bumipalma Lestaripersada in Mumpa, Indragiri Hilir Riau, on 18 January 1997 from the earlier management to the new management. There is also a record of land compensation in the form of document (bundle). It contains the process of land compensation in the form of land compensation process documents (bundles). These documents are:

- List of Land/Plant Inventory Impacted by the Planned Location of PT Bumipalma Lestaripersada - List of Name (List of Attendance) Deliberation process of compensation. - Confidential Letter from land owner who received compensation payment. - Confidential Letter of right releasing signed by land owner, representative of company, village head, sub district head and

staff from the Land Office of District. - Payment receipt.

Replanting activity at the several areas was conducted in legal area in accordance with the certificate of Land Use Title of PT BPLP.

PT. BPLP has environmental document in the form of Environmental Evaluation Study (SEL) and Environmental Management Plan – Environmental Monitoring Plan (RKL-RPL) as part of SEL process. This SEL document has been approved (the number of letter is RC.220/713/B/V/1993) from the EIA Commission from the Agricultural Department on 5 May 1993. Meanwhile, Environmental Management Plan – Environmental Monitoring Plan (RKL-RPL) document was approved by (the number of letter is RC.220/1970/B/X/1993) the EIA Central Commission from the Agricultural Department on 20 October 1993. Concerning Agreement of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL in PT. Bumipalma Lestaripersada.

Document of SEL and Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL was composed in 1993. It stated that the wide area of plantation owned by PT. BPLP is + 6,000 hectare. The capacity of palm oil processing mill is 32 ton/hour. In its development, the wide area of SEL study and Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL is smaller than Land Use Title which obtained in 1995 as many as 6,690 hectare. Therefore, the company revised in the document of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL to adjust it with the wide area of impact analysis. The implementation of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL document revision has been approved (the number of letter is 660/DLHPE.02/VIII/2006/273 by the Environmental Agency of Indragiri Hilir District concerning Approval of the Revision of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL Document on behalf of PT. Bumipalma Lestaripersada. This revision of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL document is used as the newest reference for environmental activity at PT. BPLP. There was a Report of Social Impact Identification Study at the Estate and Palm Oil Mill of PT Bumi Palma Lestari in 2013 which describe about the negative and positive impact caused by the operational activities of plantation. It was also completed with the Recommendation of Negative Impact Management and Recommendation of Positive Impact Increasing. There was also a Matrix of Social Impact Monitoring Plan and Matrix of Social Impact Management Plan. Social aspect data was gathered by using questionnaire and interview. There are also several recording evidences, such as:

- Minutes of meeting of Public Consultation on Social Impact Assessment at PT Bumipalma Lestaripersada, Indragiri Hilir


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District, Riau Province, Saturday 11 May 2013 - List of Attendance – Member of Socialization Meeting/Public Consultation of Social Impact Assessment (SIA), on 11 May

2013 (Participant was 40 people), from the representative of villages in surrounding, community figures, and representative of PT BPLP.

This document has been revised by adding positive and negative impacts caused by replanting activity in social and environmental aspect.


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

This plantation area managed by PT Bumipalma Lestaripersada is taken over from PT Ivomas Tunggal and PT Puri Mas Sasmita from PT Pulau Sambu Group in 1997. There is a document of Minutes of Meeting of Plantation Physical Handover for PT Bumipalma Lestaripersada in Mumpa, Indragiri Hilir Riau, on 18 January 1997 from the earlier management to the new management. There is also a record of land compensation in the form of document (bundle). It contains the process of land compensation. These documents are:

- List of Land/Plant Inventory Impacted by the Planned Location of PT Bumipalma Lestaripersada - List of Name (List of Attendance) Deliberation process of compensation. - Confidential Letter from land owner who received compensation payment - Confidential Letter of right releasing signed by land owner, representative of company, village head, sub district head and

staff from the Land Office of District. - Payment receipt.

Replanting was conducted at several legal areas in accordance with the certificate of Land Use Title of PT BPLP.


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

The company did not develop new plantation area. Land preparation activity was only replanting activity. The company did not burn for replanting activity (zero burning). The procedure, emergency response team, facilities and infrastructure, and recording of fire emergency response simulation are available (please see criteria 5.5). Potency of Nonconformance CAR.2013.03 is Closed.


PRINCIPLE #8 Commitment to continuous improvement in key areas of activity

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

There was a Report of Social Impact Identification Study at the Estate and Palm Oil Mill of PT Bumi Palma Lestari in 2013 which describe about the negative and positive impact caused by the operational activities of plantation. It was also completed with the Recommendation of Negative Impact Management and Recommendation of Positive Impact Increasing. There was also a Matrix of Social Impact Monitoring Plan and Matrix of Social Impact Management Plan. This document has been revised by adding positive and negative impacts caused by replanting activity in social and environmental aspect. The management unit of PT BPLP has showed improvement effort to several findings at the first audit stage. There is also a recording of improvement efforts to nonconformance at the first stage.



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3.2. Summary of Assessment Report of Supply Chain

Clause (Module E) CPO Mills - Mass Balance Requirements

1.1

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

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

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

The company has a procedure of identification and tracking ability (PT BPLP-BPMM/SOP/01) valid since 10 January 2013. Bumi Palma Mill adopts Mass Balance supply chain system. The source of FFB is main estate and independent estate.

The duties and responsibilities of all these requirements are clearly regulated:

a. Production controller, to ensure and assure that the source of produced product can be traced, delivered product can be accepted in accordance with the quantity and quality.

b. Manager, to be responsible so all processes in supply chain can be well conducted. To ensure that mass balance calculation has been well conducted so the amount of certified product can be identified.

c. Assistant: to ensure that received FFB has been in accordance with the determined criteria, to monitor the process of FFB, to supervise the process of product quality analysis.

d. Office clerk of weighting: to separate and record document of FFB/CPO claim certified product from FFB/CPO non-certified product.


1.2

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

The receiving and processing of certified and non-certified FFB is regulated in supply chain processing flow diagram. The supplier of certified FFB as sustainable product can be identified and mark it so differentiate it from non-certified supplier.

The document related with supply chain in the receiving of FFB is FFB delivery ticket (SPB) and Weight Ticket of Fruit Receiving.


2 Purchasing and goods in

2.1

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

The company has verified incoming FFB to the mill both from the main estate and outside estate. In addition, the documentation of certified and non-certified FFB volume has been completed with notification that can be differentiated since at loading ramp. The recording of certified and non-certified FFB volume is the responsibility of Administration Head. The documents related with early verification are fruit delivery letter and weight ticket of fruit receiving


2.2

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

The procedure of identification and tracking ability regulates about the reporting of certified claim.

For certified product, if the projection of certified production is bigger than certified product that has been claimed, there are several points that must be conducted, such as:

a. To inform to the related RSPO certification institution and RSPO IT system


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b. To reanalyze the production data and mass balance report that has been composed.

c. To calibrate and recheck weight bridge and its supporting facilities.

d. To make the new projection of certified product by considering the error level for 5% at the maximum of total projection that has been delivered.


3 Record keeping

3.1

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

The recording of document related with supply chain requirement is started since May 2013. The document related with delivery ticket of main estate, outside estate, weight ticket of main estate, weight ticket of outside estate, weight ticket of product, delivery letter of product (CPO and PK) and daily production report are complete and well recorded. The head of administration is responsible to all the completion of recording.

The recording of FFB receiving from outside estate and main estate, document related with Delivery Letter of FFB, suppliers‟ estates, data of FFB grading.

The recording of CPO/PK product delivery, document related with mill weight card, purpose of delivery, minutes of meeting of product weighting at the destination area, and delivery handover.


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

Document of identification activity and tracing ability is minimally kept for 10 years for SCC and 5 years for RSPO. It can be kept at the office of mill. Related document, delivery ticket of main estate, delivery ticket of outside estate, weighting ticket main estate, weighting ticket of outside estate, weighting ticket of product, product delivery letter, and daily production report.


3.3 (a) The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and

palm kernel meal on a three-monthly basis. (b) All volumes of palm oil and palm kernel oil that are delivered are deducted from the material accounting system

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

The recording of document related with supply chain requirement is started since May 2013. The document related with delivery ticket of main estate, outside estate, weight ticket of main estate, weight ticket of outside estate, weight ticket of product, delivery letter of product (CPO and PK) and daily production report are complete and well recorded. The head of administration is responsible to all the completion of recording.

The company record and make all RSPO certified FFB receiving and certified CPO & PK delivery balance. Its basic is monthly and quarterly. In May – June 2013, the recording of receiving FFB, CPO product, and PK product can be showed.

May 2013: simulation of certified FFB (7,072,144 kg), non-certified FFB (1,703,610 kg), certified CPO (1,427,528 kg), and non-certified CPO (260,128 kg).

June 2013: simulation of certified FFB (6,515,583 kg), non-certified FFB (3,384,460 kg certified CPO (1,341,678 kg), and non-certified CPO (497,549 kg).


3.4 The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts, e.g. *product name*/MB or Mass Balance. The supply chain model used should be clearly indicated.

In the related document (delivery of CPO and PK product), Mass Balance supply chain model has been well described. The product come out from the mill and has been completed with weighting letter, weighting minutes of meeting, permit, and


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specification of product.


3.5 In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed and enforceable agreement.

Palm kernel owned by the company is delivered to the Rama-rama Mill outsource to be processed


4 Sales and goods out

4.1

The facility shall ensure that all sales invoices issued for RSPO palm oil delivered include the following information:

(a) The name and address of the buyer

(b) The date on which the invoice was issued

(c) A description of the product, including the applicable supply chain model (Segregated or Mass Balance)

(d) The quantity of the product delivered

(e) Reference to related transport documentation

The company showed invoice that issued for certified RSPO product. It contains the information of name/address of purchasing, date of issued invoice, description of mass balance supply chain model, amount of product and specification of delivered product both CPO and Palm Kernel.

Buyer: PT Ivomas Tunggal

Address: Sinarmas Land, Central Jakarta

Palm Kernel

12 March 2013


5 Training

5.1

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

The company sent personal related with the socialization of supply chain certification system. This personal was involved as transportation office clerk, production office clerk, to the head of estate and mill administration. The socialization was conducted on 20 July 2013 at Bumi Palma Mill.


6 6

6.1 The facility shall only make claims regarding the use of or support of RSPO certified oil palm products that are in compliance with the RSPO Rules for Communications and Claims.

The company have the procedure of RSPO Rules for Communications and Claims. When assessment process (Stage 2) the company has not yet certified.

Status: Comply


ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use

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

X or√

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

Status: Not Applicable

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

X or√



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

X or√



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

X or√




ASSESSMENT REPORT


3.4. Summary of RSPO Partial Certification.

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

2.1

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

X or√

All subsidiary of IVOMAS TUNGGAL are planned to be RSPO certified.

Status: Compliance

2.2

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

X or√


Status: Compliance

6.3

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

X or√


Status: Compliance

6.4

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

X or√


Status: Compliance

7.3

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

X or√


Status: Compliance

7.5

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

X or√


Status: Compliance

7.6

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

X or√


Status: Compliance


ASSESSMENT REPORT


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

3.5.1 Identification of Findings, Corrective Actions and Observations at ST1 Assessment

CAR No

Ref Std

Finding Area Grade Time Limit

Corrective Action Observation Status Date

2013. 01

Minor 4.6.2 4.7.2

The Record of Medical Checkup for High Risk Workers There was no evidence that the company has conducted medical checkup for spraying workers such as blood laboratory test/cholinesterase.

Potential NC

Estate Stage-2 The company must show the evidence of medical checkup for high risk workers such as blood laboratory test/cholinesterase

Root cause: There was no evidence of medical checkup for high risk workers such as blood laboratory test/cholinesterase Corrective action: medical checkup for high risk workers such as blood laboratory test/cholinesterase has been conducted by Thamrin Clinic at Pekanbaru on 10-11 June 2013 and its documentation. Preventive action: Medical checkup is regularly conducted for all spraying workers (once in every 6 months). Observation on 23 July 2013 There was a report of blood lab test/ cholinesterase for spraying workers (high risk workers) at each estate in PT. BPLP conducted by Thamrin Clinic Laboratory on 10 June 2013. The result of this lab test has been evaluated by the company‟s doctor.

Closed July 25

2013

2013.02

Major 5.1.2

Data of Subsidence in the Report of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL Document of Environmental Management Plan/RKL and

Potential NC

Estate Stage 2 The company must show the evidence that subsidence measurement result has been written in the Document of Environmental

Root cause: data peat land subsidence was not available in the RKL & RPL and report has not been submitted to the Local Environmental Agency. Corrective action: Subsidence measurement

Closed July 25

2013


ASSESSMENT REPORT


CAR No

Ref Std



Environmental Monitoring Plan/RPL has not described data and analyses peat land subsidence as described in the SEL document.

Management Plan/RKL and Environmental Monitoring Plan/RPL and reported to the related institution.

has been conducted by PT. BPLP since 2010, the report has been documented at the Smartri. Peat land subsidence was then described in the Report of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL, First Semester of 2013. Preventive action: To periodically prepare RKL & RPL document for estate and mill unit for each semester and submit this report to the related institution. Observation on 24 July 2013 The result of peat land subsidence measurement has been written in the Report of Environmental Management Plan/RKL and Environmental Monitoring Plan/RPL First Semester of 2013.

2013.03

Major 5.5.3 Major 7.7.3

Recording of Land Fire Emergency Response. There was no enough evidence that the company has conducted periodic training of land fire emergency response for all estates.

Potential NC

Estate Stage-2 The company must show the evidence that periodic training of land fire emergency response for all estates has been conducted.

Root cause: There was no document that the company has conducted periodic training of land fire emergency response for all estates. Corrective action: The company has conducted periodic training of land fire emergency response for all estates at PT. BPLP on 22 May 2013. Preventive action: The simulation of emergency response will be periodically conducted for at least once a year. Observation on 25 July 2013: There was evidence that the company has

Closed July 25

2013


ASSESSMENT REPORT


CAR No

Ref Std



conducted training of land fire emergency response on 22 May 2013 and it was attended by the representative of all firefighting team from each estate.

2013.04

Major 6.1.1

Identification of Replanting Impact There is no enough evidence that replanting activity since 2005 has been identified and composed its impact management plan to environment and social aspect.

Potential NC

Estate Stage-2 The company must show the evidence that environment and social impact of replanting activity has been identified and its management plan has been composed.

Root cause: The document of environment and social impact study of replanting activity and its impact management plant have not been identified and composed. Corrective action: Positive and negative impact study has been reported in the Social Impact Identification Study by CSR Department and environmental aspect has also been reported in the list of environmental aspect. Preventive action: positive and negative impact study has been reported in the Social Impact Identification Study and it will be followed up at the RKS & RPS, environmental aspect study will be followed up in the monitoring report of RKL & RPL. Observation 23 July 2013 There was Social Impact Identification Study Report of Palm Oil Estate and Mill of PT Bumi Palma Lestari in 2013 (Revision). This report has covered the identification of negative and positive impact of estate operation activity including impact of replanting activity on social and environmental aspect, and its management plan.

Closed July 25

2013


ASSESSMENT REPORT


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

CAR No

Ref Std



2013.05

Minor 4.6.1

The Use of Paraquat. The company has established the policy to decrease paraquat use as many as 25 % every year. However, according to its data used in 2011, 2012 until June 2013, it showed that its trend was increasing to it was not in line with the determined policy.

Estate NC S1 The company must show the evidence that the use of paraquat has been decrease or eliminated.

Observation 27 July 2013 Root cause: The increase of paraquat using in BPLP is caused by replanting program on several area is dominated by hard weeds. Corrective action: The company has determined a new policy published by VPA PSM V on 26 July 2013 concerning the sustainable decreasing of paraquat use and will compose program to decrease the use of paraquat to be started in the middle of 2013. The company has composed the decreasing use of paraquat program by decreasing of its dose of use both at Immature Plant and Mature Plant. Preventive action : The company shall evaluate effectiveness dosage of paraquat used & technic of selective weeding.

Closed with Obser-vation

July 27 2013

2013.06

Major 4.6.4

Agrochemical Waste There was a used pesticide packaging (rolixone and roll up) not managed according to the procedure. Location: Hazardous waste storage Division 2 and 3 Bumi

Estate &

Mill

NC Before the

publication of

certificate

The company should manage agrochemical waste according to the required procedures and rules.

Observation 26 July 2013 Root cause: The personal in charge at the hazardous waste storage not yet aware the procedure of hazardous waste management. Corrective action: BPLP has managed this used agrochemical

Closed July 26 2013


ASSESSMENT REPORT


CAR No

Ref Std



Lestari Estate.

packaging waste in accordance with the procedure. There was a minutes of meeting about used agrochemical packaging waste washing on 3 June 2013. Preventive action : The company shall socialization procedure of hazardous waste management to increase the awareness all of the personal in charge in related to hazardous waste management.

2013.07

Minor 4.7.6

An evidence of health program equipment and occupational safety as well as first aid kits for accident (First Aid Emergency) at the working area. Based on the field survey at the nursery area of BPLE, a supervisor on behalf of Arifin Siregar brought First Aid Emergency Box was seen that he brought incomplete First Aid Emergency (no flashlight, plasters, bandages 5 cm, 10 cm and 2.5 cm) and it was not in accordance with their allocation (there were spikes, etc).

Estate NC S1 The company must ensure the availability of health program equipments and occupational safety in adopted by the company and to assure that First Aid Emergency box/bag is completed with proper equipments.

Observation 26 July 2013 Root cause: The nursery supervisor is careless about function of the first aid bag. Corrective action: The company has a mechanism of First Aid Emergency box checking at the field which conducted by the Field Assistant. There was a documentation of First Aid Emergency box checking by Nursery Assistant to the Supervisor of Nursery at BPLE. Preventive action : The company shall socialization of main function of and monitoring content of first aid bag.

Closed July 26 2013

2013.08

Minor 4.7.7

The availability of trained workers in First Aid Emergency in the estate and mill operational activity. Based on the result of field survey

Estate NC S1 The company must ensure that pointed person in charged First Aid Emergency in the field has been trained.

Observation on 26 July 2013 Root cause: The supervisor is not yet trained because he is new staff.

Closed July 26 2013


ASSESSMENT REPORT


CAR No

Ref Std



at the Nursery of BPLE, a supervisor on behalf of Arifin Siregar has not been trained with First Aid Emergency.

Corrective action: The company showed a List of Attendance on the training of First Aid Emergency on 25 July 2013 which conducted by Central Polyclinic of BSNE (it was attended by 10 participants including supervisor on behalf of Arifin Siregar). Preventive action : The company shall plan training of first aid emergency to all of staff in relation to emergency situation in field.

2013.09

Major 5.3.2

Implementation of Hazardous Waste Management. Based on the result of interview and study of document, it can be identified that used oil waste from the generator at the water pump house was still kept at the pump house since 1 July 2013.

Estate NC Before the

publication of

certificate

The company should implement waste management according to the result of identification.

Observation 27 July 2013 Root cause: The personal in charge at the water pump house was not yet aware the procedure of hazardous waste management. Corrective action: BPLP has showed the evidence of improvement in the form of documentation and minutes of meeting of Hazardous Waste hand over in the form of used oil from the pump house to the warehouse of Hazardous Waste. Preventive action : The company shall socialization procedure of hazardous waste management to increase the awareness all of the personal in charge in relation to hazardous waste management.

Closed July 27 2013


ASSESSMENT REPORT


CAR No

Ref Std



2013.10

Minor 5.6.1

Effort and plan of pollution decreasing There was chemical material spill (fuel/oil) on the ground so it can pollute the environment at two locations: Location: mill‟s fuel tank and warehouse of generator at Division 2/3.

Estate NC S1 Chemical material can be ensured that it does not directly pollute the environment both water and soil..

Observation 25 July 2013 Root cause: The ground floor in the area of Mill fuel tank and area surround of generator room at Division 2/3 is not yet properly design to prevent of oil spill. Corrective action: The ground floor in the front of fuel tank at Mill and generator house at Division 2/3 has been cemented in order to directly prevent oil spill on the ground. The dimension of fuel charging is widening to minimize opportunities of fuel spill on the ground. Preventive action: The company shall develop of properly facilities to prevent of oil spill.

Closed July 26 2013

3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 Major 2.2.2

The company has an opportunity to synchronize SOP of maintenance and improvement of estate‟s pole with the working instruction of boundary pole maintenance.

The company has an opportunity to review a hyegene maintenance program at the boundary pole location.

2 Major 4.6.3

The company has an opportunity to evaluate spraying working list at BPME and BPLE, related with several spraying workers who have been moved to other department.

3 Major 4.8.1

The company has an opportunity to increase the performance of worker through training for staff and employee so they can finish their jobs and responsibilities in accordance with the procedure, such as training on the management of Hazardous Waste for workers who work at station producing Hazardous Waste.


ASSESSMENT REPORT


3.5.4 Noteworthy Positive Components

No Descriptions

1 The commitment of the company to implement the principles of sustainable palm oil management.

2 The competence of personal (staff) at each section.

3 Occupational Health & Safety Management System of Gold Flag in 2012 has been received.

4 Procurement of education facilities for kindergarten, elementary school & junior high school.

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

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

The Office of National Land Agency of Indragiri Hilir District.

- PT BPLP has had Land Use Title published by the related institution.

- There is no report related with land dispute at PT BPLP.

- The company committed to all regulations and keeps a

harmonious relationship with the community and related institutions.

- Management of PT BPLP has proved the ownership of right on land which legally obtained and not demanded by the surrounding community. The company has demarcated the ownership of right on land by installing boundaries markers in accordance with the coordinates determined by the National Land Agency. These boundaries markers have been well maintained.

Labor and Transmigration Agency of Indragiri Hilir District. - There was no labor problem at BPLP. - A routine monitoring related with working equipment has

been conducted by related agency.

- The company always tries to meet the company‟s obligation to

the regulation of manpower.

- The management has tried to meet the

regulation related with the manpower. There were several issues related with the training of First Aid Emergency for supervisor who


ASSESSMENT REPORT




has not been conducted and deficiency of First Aid Emergency equipments that has been improved by the company.

Local Environmental Agency of Indragiri Hilir District. - WWTP has been well systemized. - The monitoring of liquid waste has met the required

quality standard. - The result of air waste monitoring has met the required

quality standard. - Solid waste disposal (empty fruit bunches) was

conducted by using fireplace. - Produced hazardous Waste has been well managed by

licensed party. Transportation and licensed collector was limited in Indragiri Hilir District.

- The obligation of regulation compliance related with environment

is always used by the company as a reference for sustainable plantation management.

- The coordination with Environmental Agency will always be well maintained in order to meet environmental management.

- There were several findings related with the

management of Hazardous Waste, agrochemical waste, and pollution decreasing. Those have been improved by the company.

- The company has a licensed of Hazardous Waste Storage, WWTP, and monitor liquid, air, and solid waste qualities.

Plantation Agency of Indragiri Hilir District. - Permit of plantation business was issued by the central

government. - Reporting of plantation business development was not

correct yet, not only BPLO but also all estates in Indragiri Hilir District.

- Report of plantation business that has been submitted to the Plantation Agency was period of January 2012 - December 2012 and it was submitted in May 2013.

- The assessment of estate class was conducted by provincial government.

- Plantation Agency has not been able to ensure the cause of horn beetle attack because independent party has not stated its scientific reason to the Plantation Agency.

- Plantation Agency has sent a letter to the PT BPLP. However, it has not been responded yet, for example, letter number 353/Disbun/PPP/VII/2012 on 16 July 2012.

- In the future, the report of plantation business development of

PT. BPLP will be reported every month. - PT. BPLP has submitted plantation business report period of

January - June 2013 on 25 July 2013. - The company‟s problem related with the attack of beetle was still

discussed by both parties for best solution. The company has offered a solution but it has not been responded by the representative of community.

- The company always response to information request from the government. However, correspondence did not reach its destination. Data request has been sent on 25 July 2013.

- The company has tried to meet the regulation

related with the plantation business development report.

- Several issues like incorrect plantation business report, attack of beetle to community coconut plants around the estate area and less response to information request are currently reviewed and responded by the management. The issue of beetle attack has involved the Plantation Agency. Based on the result of study, PPKS did not clearly state the source of horn beetle attack.


ASSESSMENT REPORT




Head of Suhada Village & Representative of Community in Enok Sub District. Suhada Village is directly sharing the same borders with PT. Bumipalma Lestari Persada. Note :

- Related with beetle attack to coconut plants owned by the community after replanting activity by the company: there was a discussion with the company. However, the community has not received any follow up, socialization and real problem solving about this grievance.

- CSR: the community felt that CSR fund for Suhada Village is still less and unevenly distributed. Their expectation is CSR fund distribution for area directly sharing the same borders with the company for example a fund donation for Islamic School teachers.

- Village government thought that company response to several requests from the villages was still slow. For example: a fund donation request as much as Rp 200,000 for the 17th August Indonesia Independence Day Celebration proposal require an approval by the Riau or Jakarta Office.

- Company‟s problem related with the beetle attack is still discussed to get best solution for both parties. The company has offered a solution but it has not been responded by the representative of community.

- The implementation of CSR is adjusted with the assessment and

necessity of community. - The feasibility of assitance is based on the analysis and

appropriateness by the head of unit.

- The company can show the newest evidence of development related with the discussion of beetle attack possibility with the lawyer pointed by the representative of community. The socialization related with the development is the autorization of pointed lawyer (See criterion 6.3)

- The company conduct CSR program according to the result of necessity assessment and it always keep to be increased.

- The mechanism of assistance application has been in accordance with the SOP.

Village community figures along the track road of KM7 - KM.11.

Technical The company has offered technical palm oil cultivation that guided by the Assistant of Division from the company. However, farmer group has not been established yet.

- Road watering program has been conducted. However, it has not been routinely conducted. Road watering is only

- If the community need a guidance about palm oil plantation, the

company will always help.

- Road watering is adjusted with the condition and capability of the company.

- PT. BPLP has a scholarship program for excellent student but

- The company has conducted positive points related with the development of social, economical, and environmental impact. It is showed by zero conflict between the company and community

- Road watering has become a common concern.


ASSESSMENT REPORT




conducted during high tide. - There was no information about scholarship at the

elementary school, junior high school, and university.

poor. The head of unit should socialize it to the community.

- The company can socialize this scholarship

program.

Community figures of Parit Setia Kawan. The history of this plantation was a handover from forest to the community. The community feels several points, such as: - The community can take the benefit of company‟s canal

for FFB transportation. The community request for one day FFB transportation in case of overproduction of FFB. They also requested that the company can buy their overproduction FFB post holyday.

- The community expected that road paving should not be dusty.

- The use of canal for community transportation is regulated for

estate and security purpose. In a week, it is allowed for 2 days. - It is a positive point and it will be used as the reference for

sustainable improvement. - CSR program is adjusted with the strategic plan of the company. - The purchasing of community FFB is adjusted with the capasity

of processing mill.

- The company has conducted positive points related with the development of social, economical, and environmental impact. The company tries to avoid conflict with the community.

Head of Gender Committee of PT. BPLP. - An assistance request for pregnant woman USG test

especially those 8 months of pregnancy. - Sexual problem has not been identified at the field. There

is a neighborhood health center program for once in a month.

- Medical service including USG for pregnancy woman is conducted in accordance with the recommendation and reference from the polyclinic (company‟s doctor). It is conducted by own initiative and personal responsibility, because it does not regulated by the company.

The company has a mechanism related with the pregnancy checkup.

Head of Lintas Utara Village, Bumi Sentosa Estate. - There was no problem related with FFB theft. The

existence of the company is very helpful for the community in terms of employment, where there are about 60 families of workers from the surrounding village.

- It is a positive point and it will be used as the reference for

sustainable improvement.

- The company never had an agreement about road openning with any party in the estate area.

The company has conducted positive points related with the development of social, economical, and environmental impact. The company tries to avoid conflict with the community.


ASSESSMENT REPORT




- Social activities such as massive circumcision, praying house donation especially mosque.

- There was a request for new road opening at Division 1, from the road side of provincial highway to the border line of housing area.

- Request for the provision of gravel road that can connect

the community at the Division 1 & 2 (village road) to the provincial road.

- CSR program is adjusted with the strategic plan of the company.

In the estate area, transportation facility is canal. Motorcycles and pathways are only used in roads.

The Community of Danau Pulai Indah Village

- Until now (more less 2 years) the community in this area has not received any assistance/donation from the company.

- The welfare of community: the community requested for an assistance/donation from the company related with community FFB quality increasing, whether a guidance or fertilizer.

- This village is an expansion village of Rumbai Jaya Village. It was legalized in 2013.

- The company is ready to conduct a counseling of harvesting activity and its management. So far, the company does not receive any request.


Police/Babinkamtibmas (Community Training and Security Officer) of Suhada Village and Bagan Jaya Village. The company is very helpful for the community:

- Workers and roads. - There was no criminality; it can be controlled by the local

police. - There was no social and land conflict.


sustainable improvement. .



ASSESSMENT REPORT




All attended stakeholders. HCV : There are several wild animals at the estate and around the estate such as wild boar, cobras, humming bird stone / starlings, gracula. Protected animal: the company spreaded the documentation related with protected animals. However, wild boar is expected as pest by the community in surrounding. The community at the Estate of PT BPLP comes from various ethnics. There was no indigenous community.

The determination of protected animal refer to the identification of HCV and regulation of national and international conservation. Wild boar is protected by IUCN.

The company identified HCV. The company has installed several announcement boards related with protected animals and area.

BABINSA/ noncommissioned law enforcement officer of Keritang Sub District.

- The relationship between the community and the company is quite good.

- There was a free massive treatment program.

- It is a positive point and it will be used as the reference for sustainable improvement.

.


Head of Worker Unions of Plantations in Indragiri Hilir District (Johan). There was no workers demonstration. Problem was solved bipartite. There was no workers problem that must be solved by the Manpower Agency. - However, the bipartite response of the company is slow

in responding problem submitted by Plantation Workers Union (1-2 month).

- The company must provide USG/guaranteed by the company. There was an agreement with Plantation Workers Union for H1 (period leave) in Collective Labor


sustainable improvement. - Every different view of the implementation of worker regulation is

always discussed at the unit level. - Medical service including USG for pregnancy woman is

conducted in accordance with the recommendation and

- The response of the company related with bipartite is similar with the mechanism. The company has a mechanism related with


ASSESSMENT REPORT




Agreement that female workers can take day off for 2 days.

- There is no transportation facility for the student‟s especially senior high school. In the Collective Labor Agreement stated that they will be dropped until main road.

- To prioritize education programs for student in the university especially the children of workers.

- Job promotion or group assessment for field officer/supervisor is still less, for example daily supervisor.

reference from the polyclinic (company‟s doctor). It is conducted by own initiative and personal responsibility, because it does not regulated by the company. The implementation of H1 (period leave) is adjusted with the regulation, if she informs and asks for it.

- Education and transportation facilities for elementary school and junior high school are provided in the estate.

- CSR in education program for university level is not limited for a

certain group. However, it is intended for all groups including the children of workers but they have to pass the selection conducted by Smart Diploma IPB Bogor and INSTIPER Jogjakarta.

- The assesment of specific workers achievement such as supervisor is conducted by local leader every year including his/her jop promotion proposal.

the pregnancy checkup

- Scholarship program conducted by the company is open for all groups.

- The company has conducted a mechanism of workers assessment.

PUK of Worker Union at Bumi Palma Estate, Bumi Palma Estate, and Bumi Sentosa Estate

- Public facilities are quite adequate. - PUK proposed for the visitation of HRD team for

consultation. - The company is slow in responding the letter from the

PUK. Currently, there are 2 letters that have not been responded (letter from 4 PUK that request for the coming of HRD team for discussion.

- Fruit buncher (freelancer) as the main activity for wholesale/contract. If he works by himself, it will not sufficient. The wage is Rp.600.000 per month below the Provincial Minimum Wage in Oil and Gas Sector.

- Wage payment at Bumi Palma less pay attention to the


sustainable improvement. - A meeting has been conducted with the representative of

management such as RC, EM BPME, PUK SPSI, and DPC SPSI Inhil on 26 June 2013 and every manpower problem did not need a meeting with the HRD team from Jakarta.

- The payment of fruit buncher is conducted by using a

contract/wholesale in accordance with the result of work by referring to the SE. VPA. PSM 5 If he dillegently work he can earn more than Provincial Minimum Wage in Oil and Gas

- The company showed evidence about the meeting with PUK related with consultation request and it has been adjusted with the exits mechanism.

- The company showed a mechanism of fruit

buncher‟s wage payment has followed the regulation.

- The mechanism of employee performance


ASSESSMENT REPORT




working period based on the position change (scale of wage). The differentiation is only at the bonus/premium amount.

- An application for education assistantship for workers who live at the outside area, such as: electricity and school.

- Based on the points at Collective Labor Agreement between the Agencies for Cooperation between Sumatera Plantations (BKSPPS), if worker has work for 3 months, he must be promoted as daily contract worker/SKU. There was an agreement between the Head of Plantation FSP with RC related with the promotion of workers to be daily contract worker/SKU.

Sector..

- The wage of PT. BPLP employee has noticed the working period such as working period <1 year and >1 year.

- The procurement of housing facilities such as electricity, water, etc are only allocated for those who live at the housing area of estate.

- The promotion of daily contract worker/SKU is adjusted with the necessity and assessment of worker‟s ability.

assessment has been running.


ASSESSMENT REPORT


4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

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

Signed on behalf of:

PT Bumipalma Lestari Persada

Mutuagung Lestari

Head of Environmental Department

Lead Auditor

Ismu Zulfikar

M. Syarif Lambaga

30 August 2013

30 August 2013


ASSESSMENT REPORT


No Institution/NGO/Commu

nity Address Phone/Email Form of Contact

Date of Contact

1 The Office of National

Agency of Indragiri Hilir

District

Tembilahan, Riau

- Consultation 23 July

2013

2 Labor & Transmigration


District

Tembilahan, Riau


2013

3 Local Environmental


District

Tembilahan, Riau


2013

4 Plantation Agency of

Indragiri Hilir District

Tembilahan, Riau - Consultation

23 July

2013

5 Jaringan Masyarakat

Gambut Riau

Riau anaknegeri.andalas@

wwf.or.id Letter

16 July

2013

5 Head of Suhada Village

& Representative of

Community in Enok Sub

District

Suhada village, Riau


2013

6 Kempas Sub District and the Community of Kempas Jaya Village

Kempas Jaya Village - Consultation

23 July

2013

7 Head of Bagan Jaya

Village

Bagan Jaya Village - Consultation

23 July

2013

8 Community figures of

Danau Pulai Indah

village & Parit Setia

Kawan Village

Danau Pulai Indah Village & Parit Setia Kawan Village


2013

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


ASSESSMENT REPORT


DATE / TANGGAL 22 – 27 JULY 2013

ACTUAL DURATION PROCESSES / CLAUSES TO BE AUDITED AUDITOR

Monday, 22 July 2013

06.00 - 08.00 08.30 - 16.00 16.00 - 17.00

Jakarta - Pekanbaru

Pekanbaru - PT Bumipalma Lestaripersada) Opening Meeting

SL / OR / MM / ARD / RR

Tuesday, 23 July 2013

08.00 – 02.00

08.00 – 12.00

Public Consultation a. Public meeting (related community, villagers, contractors, Worker

Union, Gender Committee, NGO, etc..) – BPLP b. Related Government Institution (Indragiri Hilir District)

a. Completing Checklist of Bumipalma POM and Supply Base (Bumi Palma Estate & Bumi Lestari Estate)

b. Review of Previous Visit Non-conformance (stage-1)

OR / BB

MM

ARD / RR


12.00 – 14.00 BREAK

14.00 – 17.00 c. Completing Checklist of Bumipalma POM and Supply Base (Bumi Palma Estate & Bumi Lestari Estate)

d. Review of Previous Visit Non-conformance (stage-1)


Wednesday, 24 July 2013

08.00 - 12.00

Field Observation: a. Bumipalma POM worker facilities

- housing, health clinic, clean water, etc b. Bumipalma POM: WWTP (IPAL), Operational, K3 (OHS), Supply

Chain

a. RR / MM

b. SL / OR

12.00 – 14.00 BREAK

14.00 – 17.00 Field Observation: Legal Operational Area

- Legal Boundary Continue of Checklist Review and Follow up from Field Observation

c. ARD / SL / OR

d. SL / OR / MM / ARD / RR

Thursday, 25 July 2013

08.00 - 12.00

Field Observation: a. Bumipalma Estate

- Manuring, Spraying, Harvesting, best agricultural practices b. Company Conservation Area (HCV area)

a. MM / RR

b. SL / OR / ARD

12.00 – 14.00 BREAK

14.00 – 17.00 Field Observation: c. Bumipalma Estate

- Worker facilities (housing, health clinic, clean water, etc) - Land Fire facilities, Storage, et..

d. Continue of Checklist Review and Follow up from Field Observation

c. MM / RR / AR

d. OR / SL

Friday, 26 July 2013

08.00 - 12.00

Field Observation: a. Bumi Lestari Estate

- Manuring, Spraying, Harvesting, best agricultural practices - Worker facilities (housing, health clinic, clean water, etc)

a. SL / OR / MM / ARD / RR

Appendix 2. Assessment Program


ASSESSMENT REPORT


DATE / TANGGAL 22 – 27 JULY 2013

ACTUAL DURATION PROCESSES / CLAUSES TO BE AUDITED AUDITOR

- Land Fire facilities, Storage, et..

12.00 – 14.00 BREAK

14.00 – 16.00 16.00 – 17.00

Field Observation: b. Company Conservation Area (HCV area) c. Continue of Checklist Review and Follow up from Field

Observation

b. ARD c. SL / OR / MM / RR

Saturday, 27 July 2013

09.00 – 10.30 11.30 – 17.00

Closing Meeting

Travelling to Pekanbaru



ASSESSMENT REPORT


Appendix 3. Glossary

AAA : Agronomy Audit and advisory

AMDAL : Environmental Impact Analysis

APAR : Alat Pemadam Api Ringan (Fire Extinguisher)

ASEAN : Association of South East Asian Nations

B3 : Hazardous Waste

BLHD : District Environmental Agency

BOD : Biological Oxygen Demand

BPN : National Land Agency

BPLE : Bumi Lestari Estate

BPME : Bumi Palma Estate

BPMM : Bumi Palma Mill

BSNE : Bumi Sentosa Estate

CBD : Convention on Biodiversity

CD : Community Development

CPO : Crude Palm Oil

CSR : Corporate Social Responsibility

DAS : Daerah Aliran Sungai (River watershed)

EWS : Early Warning System

FFB : Fresh fruit Bunch

GRK : Greenhouse gasses

HCV : High Conservation Value

HGU : Hak Guna Usaha (Land Use Permit)

HIRARC :

Hazard Identification Risk Assessment and Risk Control (Identifikasi Resiko Bahaya, Penilaian, dan Pengendalian Resiko Kecelakaan)

IK : Instruksi Kerja (Work Instruction)

IPAL : Instalasi Pengolahan Air Limbah (Wastewater treatment plant)

IPM : Integrated Pest Management

ISPO : Indonesian Sustainable Palm Oil (Perkebunan Kelapa Sawit Berkelanjutan Indonesia)

IUP : Izin Usaha Perkebunan (Plantation Business Permit)

IUP-B : Izin Usaha Perkebunan – Budidaya (Plantation Business Permit for Agriculture)

IUP-P : Izin Usaha Perkebunan – Pengolahan (Plantation Business Permit for Processing)

JAMSOSTEK : Jaminan Sosial Tenaga Kerja (Worker’s Social Security)

K3 : Keselamatan dan Kesehatan Kerja (Occupational Safety & Health)

KER : Kernel Extraction Rate (Rendemen Kernel)

LA : Land Application

LB3 : Limbah Bahan Berbahaya dan Beracun (Toxic & Hazardous Waste)

LC : Land Clearing

MAA : Mill Audit and Advisory

MCAR : Management Committee Agronomy and Research

MCMD Management Committee for Mill Development

MN : Main Nursery

NKT : Nilai Konservasi Tinggi (High Conservation Value)

OER : Oil Extraction Rate (Rendemen Minyak Kelapa Sawit)

PC : Production Controller

PPE : Personal Protective Equipment

P2K3 : Committee for Occupational Safety and Health Trustees

PK : Palm Kernel

PKB : Perjanjian Kerja Bersama (Collective Bargaining Agreement)


ASSESSMENT REPORT


PKO : Palm kernel Oil

PN : Pre Nursery

POM : Palm Oil Mill

PT BPLP : PT Bumipalma Lestaripersada

PUK SPPP-SPSI : Pengurus Unit Kerja Serikat Pekerja Pertanian Perkebunan – Serikat Pekerja Seluruh Indonesia

RC : Regional Controller

RKL/RPL : Environmental Management Plan / Environmental Monitoring Plan

RSPO : Roundtable Sustainability Palm Oil

SEL : Environmental Evaluation Study

SMARTRI : Smart Research Institute

SMK3 : Occupational Safety and Health Management System

SOP : Standart Opeartional Prosedur

SPSI : Serikat Pekerja Seluruh Indonesia (Indonesian Workers Union)

TPSA : Tempat Pembuangan Sampah Akhir (Landfill)

UMR : Upah Minimum Rata-rata (Minimum Wage

UMSP : Plantation Sector Minimum Wage

UPDKS : Palm leaf eating caterpillars

st-1 13 – 17 may 2013 oktovianus rusmin, bukti bagja rudi ramdani, moh. arif yusni,naila karima...

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