[ ]stage 1 [ ]stage2 [√ surveillance - rspo · spo – 4006a.4 page 3 prepared by mutuagung...

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

[ ]Stage 1 [ ]Stage2 [√]Surveillance

Plantation Management/Owner : Minamas Plantation - SIME DARBY Group

Plantation Name : PT Sajang Heulang (Angsana Mini POM), (Mustika estate and Pantai Bonati estate)

Location :

Certificate Code : MUTU-RSPO/006b SHE

Date of certificate issue : July 6, 2011

Date of expiry of certificate : July 6, 2016

Assessment Assessment

Date

Report Finalization

Date

PT. Mutuagung Lestari Auditor

Checked by

Approved by

S1

April 27 - May 3, 2012

June 27, 2012 Octo H.P.N Nainggolan, Oktovianus Rusmin, Rudi Ramdani.

Taufik Margani

Tony Arifiarachman

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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Submitted to RSPO on:

Approved by RSPO on:

Approved by Certification Body on:

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.4 i

Prepared by Mutuagung Lestari for

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of Figure 2. Operational Map of

1 2

1.0 SCOPE of the CERTIFICATION ASSESSMENT

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Plantations, Mill 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 6

2.0 ASSESSMENT PROCESS

2.1 Certification Body 7

2.2 Lead Assessor and Assessment Team 7

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 7

2.4 Stakeholder Consultation and List of Stakeholder Contacted 8

2.5 Determine Next Visit 8

3.0 ASSESSMENT RESULT

3.1 3.2

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

9 34

3.3 Conformity Checklist of Certificate and Logo Use 38

3.4 Summary of Time Bound Plan Verification of the RSPO Certification 39

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

41

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 49

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings 51

APPENDICES

1. Peer Review Report 52

2. Result of RSPO Committee - RSPO Certification 53

3. List of Stakeholder Contacted in the RSPO Certification Process 54

4. Assessment Plan 55

5 Glossary 57

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

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

Figure 1. Location Map of PT Sajang Heulang

PT Sajang Heulang

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT


Figure 2. Operational Map of

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT


1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

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 Supply Chain

Requirement for CPO Mill, November 2011.

1.2 Organization Information

1.2.1 Company name MINAMAS Plantation – SIME DARBY Group

1.2.2 Contact person Mohamad Pirabaharan

1.2.3 Company address The Plaza Office Tower Lt. 36

Jl MH Thamrin Kav. 28-30, Jakarta 10350

1.2.4 Telephone +62-21-29926000

1.2.5 Fax +62-21-29922686

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

Mohamad Pirabaharan

(Head of PSQM Minamas Plantation)

1.2.10 Registered as RSPO member September 8, 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm oil Mill and Estate

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT Sajang Heulang

1.3.4

Number of management unit

1 (one) unit of Palm Oil Mill (Angsana Mini POM)

FFB supply from 2 (two) estates: Mustika Estate

(MTE) and Pantai Bonati Estate (PBE).

1.4 Locations of Plantations, Mill and Area Statement

1.4.1 Location of estate

Name of Estate(s) Location

GPS

Latitude Longitude

Mustika Estate Subdistrict of Kuranji, District of Tanah Bumbu, Kalimantan Selatan

30 28’ 07” – 30 33’ 26” S

1150 39’ 02” – 1150 46’ 15” E

Pantai Bonati Estate Subdistrict of Satui, District of Tanah Bumbu, Kalimantan Selatan

3041’35” – 3046’05”

S

1150 32’ 23” – 1150 41’ 56” E

1.4.2 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Angsana Mini Subdistrict of Satui, District of Tanah Bumbu, Kalimantan Selatan

3040’21” S

1150 37’ 23 E

1.4.3 Maps ( Figure 1 & Figure 2 )

mailto:[email protected]

http://www.simedarby.com/


ASSESSMENT REPORT


1.4.4 Country Indonesia

1.4.5 Region South East Asia

1.4.6 Tenure

Private

State HGU certificate No. 26, dated 4 December 2000, area of 150 Ha.

HGU certificate Number 27, dated 4 December 2000, area of 56 Ha

HGU certificate Number 28, dated 4 December 2000, area of 200 Ha

HGU certificate Number 34, dated 14 May 2002, area of 5.260 Ha

HGU certificate Number 35, dated 14 May 2002, area of 2.128 Ha

Community

1.4.7 Area Statement

Total area 7,794 Ha

Mature area 6,229 Ha

Immature area - Ha

Mill 39 Ha

Infrastructure 360 Ha

Land Clearing - Ha

Occupation 518 Ha

HCV 336.2 Ha

Other area 647 Ha

1.5 Description of Supply Base

1.5.1 Estate(s)

Name of Estate(s) Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha

/year)

Supplied to Mill

FFB (tonnes/year)

%

Mustika Estate 5,079 3,724 56,579.39 15.2 52,236.63 92.3

Pantai Bonati Estate 2,715 2,505 48,770.97 19.5 14,475.55 29.7

TOTAL 7,794 6,229 105,350.36 16.9 66,712.18 63.3

Production data April 2011 – March 2012

1.5.2 Smallholder(s) and others

Smallholder(s)

Scheme Member(s) Location

Total Area (Ha)

FFB (tonnes/ye

ar)

Supplied to Mill

FFB (tonnes/year)

%

Gunung Sari Estate

PT Ladangrumpun

Suburabadi

Sub District of Angsana, District of Tanah Bumbu

2,832.60 47,861 328.01 0.7

KKPA 1, Sajang Heulang

2.162 members

District of Tanah Bumbu, Province of South Kalimantan

3,864 83.341,10 52,236.63 62.68

KKPA 4, Sajang Heulang

1.148 Members

District of Tanah Bumbu, Province of South Kalimantan

2,676 46.428,62 949.14 2.04

TOTAL


ASSESSMENT REPORT


Production data April 2011 – March 2012

1.5.3 Description of Mill

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Angsana Mini 15 67,989.3

3 16,044.343 23.6 2,863.982 4.21 - -

April 2011 – March 2012

1.5.4 Product categories FFB/CPO/PK/PKO

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year Hectarage (Ha)

Age (year)

1995 484.23 17

1996 1452.59 16

1997 848.38 15

1998 2097.91 14

1999 255.14 13

2000 9.81 12

2005 688.86 7

2006 280.07 6

2007 111.75 5

TOTAL 6,228.74

1.6.2 New Development area after November 2005 391.82 Ha

1.6.3 Planting Cycle 25 Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production 138,806 Tonnes/year

CPO Production 33,314 Tonnes/year

Palm Kernel (PK) Production 6,246 Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonage of FFB

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Mustika 5,079 3,724 60,500 16.25

Pantai Bonati 2,715 2,505 52,200 20.83

TOTAL 7,794 6,229 112,700 18.09


ASSESSMENT REPORT


1.7.3 Claim Certified Tonage of Palm Product

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Angsana Mini 15 112.700 27,048 24 5,071 4.5 - -

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 -

1.9 Time Bound Plan for Other Management Units

Certification Status

Number of Strategic Operating Units (SOUs) Remark/Details

Malaysia Indonesia

Certified 33 15 Certified until June 2012

RSPO Review 6 4 reviewed by RSPO

Audited 0 3 3rd party audit or external audit completed on July 2012.

Total SOUs 39 22


ASSESSMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

Jl. Raya Bogor Km 33,5 Number 19, Cimanggis - Depok 16953

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

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

2.2 Lead Assessor and Assessment Team

2.2.1 Assessment Team

S1 1) Octo H.P.N Nainggolan (Lead Auditor). A bachelor of Agriculture, Department of Social Economics of Agriculture (Agribusiness). He has a working experience from year 2004 to 2011 as an Operational Staff in a private oil palm plantation company in Indonesia. Trainings attended namely: Training of Conservation of Natural and Biological Resources in supporting HCV, Basic Plantation Management Program, Plantation IPM training, RSPO Lead Auditors Training Course and he have attended several audit activities related to certification system of sustainable oil palm plantation as an auditor. Followed the Management System Certification (ISO 9001-2008/SNI 19-9001:2008) Lead Assessor Training. Currently he works in an independent certification agency as an auditor. In the assessment activity, he conducted assessment on Waste Management, Implementation of OHS in the mill, FFB Processing, water management, pollution and Emission management, legality and supply chain requirement for CPO Mill.

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

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

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Assessment Dates

S1 April 27 – May 1, 2012

2.3.2 Estimate of person days to implement assessment

S1 Number of auditors : 3 persons Number of days for assessment at site : 4 days Number of working days for assessment at site : 12 Days

2.3.3 Detail process of assessment

S1 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the Sajang Heulang (SHE) to the requirements of National Interpretation of the Republic of Indonesia from RSPO Principles and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008) and Supply Chain Requirement for CPO Mill. The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the

http://www.mutucertification.com/


ASSESSMENT REPORT


information; and (3) field visit, aiming to observe directly the sufficiency of implementation on site. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and became the main appendix of Assessment Report. The detailed assessment process pleased see Appendix 4

2.3.4 Locations of Assessment

S1 Location 1. Block P-21 and P-22 1st Division Pantai Bonati estate. Observe and interviewing to manuring worker related to manuring activity, PPE fulfillment, first aid equipment and response, health check and gender. Location 2. Block P-18 1st Division Pantai Bonati estate. Observe and interviewing to spraying team worker related to PPE fulfillment, first aid equipment, health check and women right. Location 3. Block P-15 1st Division Pantai Bonati estate. Observe and interviewing to harvester related to PPE fulfillment, first aid equipment, health check and and interviewing the FFB transport contractor driver. Location 4. Chemical warehouse at Pantai Bonati estate. Observe and interviewing warehouse officer related to hazardous waste and chemical material management, emergency response handling, PPE fulfillment and health check. Location 5. 1st Division housing at Pantai Bonati estate. Observe related to precense and appropriate public facilities (clear water, housing, medical facilities, etc.) fire extinguisher facilities. Location 6. Pantai Bonati Policlinic. Observe and interview with medic officer related to health serve, regularly medical check, first aid training and medical waste handling. Location 7. Interview with gender committee related to gender committee organization and the activity. Location 8. Pantai Bonati workshop. Observe related to hazardous material spill containment and handling. Location 9. Erosion pole block O-29 1st Division at Pantai Bonati. Observe the monitoring mechanism of the erosion control. Locatoion 10. Block O-29 1st Division Pantai Bonati estate. Observe the implementation of the IPM (barn owl box, beneficial plant) Location 11. Block O-24 1st Division Pantai Bonati estate. Observe the land fire handling and fire monitor tower. Location 12. Main road block OP-35 1st Division Pantai Bonati estate. Observe related too main road and collection road upkeep and box culvert implementation. Location 13. HCV 1.1 and 4.1 area at block H-25 and H-27 Division IV mustika estate. Observe the water reservoir and swamp area and HCV sign board implementation. Location 14. HCV 1.1 and 4.1 area at block I-29 and I-35. Division IV Mustika estate. Observe the conservation and riparian area and HCV sign board socialization implementation. Location 15. Block L-28 and L-34 Division IV Mustika estate. Observe oil palm cultivation on planted year 2007. Location 16. Kuranji village. Interview with local villagers and village head related to Community Development and Community Social Responsible Program of PT SHE, scheme smallholders program (KKPA) and community interaction with SHE management. Location 17. HGU pole between SHE and scheme smallholder area at KKPA III, 2nd Division at Mustika estate. Observe the boundary/HGU pole maintenance.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Public consultation of stakeholders for PT SHE was done in 2 methods: 1) Public Announcement on RSPO website: (www.rspo.org), 30 days before audit surveillance 1.

2) The public consultation meeting with stakeholders in Tanah Bumbu District on April 23, 2012. Numbers of input from

stakeholders were clarified to SHE (PT. Sajang Heulang).

2.4.2 List of stakeholder contacted

Please find Appendix 3

2.5 Determining Next Visiting

The next visit (Surveillance 2) will be determined later, before passing the two-year certified (before July 6, 2013).

http://www.rspo.org/


ASSESSMENT REPORT


3.0. ASSESSMENT RESULT

3.1. Summary of Assessment Report of the RSPO Certification

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

1.1

Plantation and Palm Oil Factory have to give adequate information for stakeholders in appropriate language and forms,

to ensure the effective participation of stakeholders in decision-making.

The management of PT. Sajang Heulang have procedures in receiving and giving feedback information (SOP Information

Response, Number AI 0900, Effective from April 1, 2010). The Company has submitted / disseminating delivery information

mechanism to its employees and the public during meeting events with the Village. Available recording information request of

Incoming Mail in the PT. SHE (Mustika Estate & Bonati). There has been no request for information, however rather on the

request application of the Equipment Lending from Bonati village head to the management of PT. SHE for the improvement of

sports facilities (soccer field). Letter number 474/020/KESRA/2012.

There are also records of mail response of Request Information in PT. SHE (Mustika Estate & Bonati). The response to the

request of the Equipment Lending Bonati Village Head (Letter number: S474/020/KESRA/2012) to the management of PT. SHE

for the improvement of sports facilities (soccer field). Response letter Number PBE-ext/233/II/2012/s, dated February 3, 2012.

Information in accordance with the SOP response, Number AI 0900, On 1 April 2010, the shelf life of recording information

requests and responses is 5 years.

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.

In accordance with the Information response SOP Number AI 0900, effective on 1 April 2010, the information and feedback can

be provided to stakeholders is:

1) Land clearing area, Immature Plants, Mature plant, facilities and infrastructure. 2) Evidence of Social Security payments. 3)

Evidence of employee medical receipt. 4) Public facilities for employees. 5) Pest attack Data. 6) Light vehicles and heavy

equipment data. 7) Supporting machines data. 8) Realization of CSR data. 9) Type of fertilizer used data. 10) Type of

agrochemical used. 11) Financial Summary Data. 12) Bridge Data. 13) Road length data. 14) Building Work Data. 15) General

Building Data. 16) Building Education data. 17) Employee Data. 18) School Students data.

Accordance with the SOP of Information Response, Number AI 0900, dated April 1, 2010, the retention time of recording

information requests and responses is 5 years.

Full Compliance

PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

2.1

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

The Company has demonstrated compliance matrix and regulations that inform the rule name, chapter and requirements, and

the level of fullness. There are 65 types of regulations that are reviewed by the company include:

a. Statute Number 13 year 2003 and the ILO about labor

b. Government Regulation (PP)Number 74 2001 on the management of Hazardous Material;

c. Control of soil damage In accordance with PP No 150 year 2000;

d. Management of conservation areas In accordance with Presidential Decree (Keppres) Number 32 year 1990;


ASSESSMENT REPORT


e. The Company has paid wages In accordance with the decree of the Governor of South Kalimantan 188.44/0630/KUM/2011

dated December 28, 2011;

f. Complement permits the use of Hazardous Material waste storage facilities In accordance with the Government regulations

PP No 18 year 1999;

g. Erosion monitoring In accordance with the Government regulations PP No 150 year 2000. Evidence that SHE has

endeavored to comply with existing regulations, such as:

Changing the document UKL / UPL to the EIA (AMDAL) document.

SHE has permission for use of POM effluent applied by District Head of Tanah Bumbu decree Number426 of 2007 to be

land application area of 76 ha.

SHE has had two licensed temporary warehouse of Hazardous material waste such as:

1. Temporary Warehouse of Hazardous Material waste permits Mustika estate with coordinates S 030 29 '17.04'' - E

1550 42' 59.8'' by Regent of Tanah Bumbu Decree Number382 of 2010 ratified on July 20, 2010 and the period of

validity of license until July 20 2015.

2. Temporary Warehouse of Hazardous Material waste permits Angsana Mini Mill with coordinates S 030 40 '20.3'' - E

1150 37' 16.7'' by Regent of Tanah Bumbu Decree Number188 of 2011 ratified on May 2, 2011 and the period of

validity of license until May 2, 2016.

3. SHE has been established OHS Guidance committee organization in accordance to Head of Social, Labor and

Transmigration Agency Decree, Tanah Bumbu District Number560/01/BNSW-WAS/2012 on January 11, 2012.

SHE has made evaluation of compliance with applicable regulations in PT Sajang Heulang that includes 98 types of legislations

related to the management of palm oil plantation in which there are compliance status of each chapter are related to the

management of palm oil plantations

SHE has shown efforts to make adjustments to the compliance and regulatory changes in the SHE in the Regulatory Compliance

Evaluation PT. Sajang Heulang conducted by PSQM staff and PT.SHE Manager on February 1, 2012 such as:

1. The application of risk analysis, implementation of OHS, the use of PPE and safety briefing application statute no 1 year

1970 on occupational safety.

2. Labour Social Security for labor organizing, reporting of work accidents related to the statute Number3 year 1992

3. Fulfillment Temporary Warehouse of Hazardous Material waste Permit according to the Environmental Impact Management

Agency Decree Number 1 year 1995 on technical and Managing Hazardous Material waste storage.

4. Land Use Title ownership, business license, the EIA (AMDAL) relating to the statute Number 18 year 2004 on the plantation.

SHE has a documented system which provides information and legal requirements companies must meet guidelines set forth in

the SOP for Sustainable Plantation Management Number 724/TQEM-SPMS/09 explained in Chapter 1.2 of compliance with the

Act and Regulation and Legal Requirements SOP PT . Sajang Heulang Minamas Plantation Number 701/TQEM-ESH/10 ratified

on March 6, 2012 which describes the mechanism identify also accomplishment with relevant and related regulations.

SHE has recorded document data list consists of 65 regulations of laws such as:

1. Minister of Agriculture Regulation (Permentan) Number 26 year 2007 on Guidelines for Plantation permit

2. Minister of Environment Regulation (Permen LH) Number 74 year 2001 on the Management of Hazardous and Toxic

3. Minister of Labour Regulation (Permenaker) Number 1 Year 1999 on Minimum Wage

4. Presidential Decree Number 32 year 1999 on the management of protected areas.

5. Statute Number 13 year 2003 about labour.

6. Statute Number 18 year 2004 about plantation.

Full Compliance

2.2

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

demonstrable rights

Land tenure and land exploitation for palm oil plantations by PT. Sajang Heulang (PT. SHE) can be represented by the 5 of

Certificates of Land Use Title:


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Certificate of land use title (HGU) Number 26, dated December 4, 2000, Area 150 Ha.

Certificate of land use title (HGU) Number 27, dated December 4, 2000, area 56 Ha

Certificate of land use title (HGU) Number 28, dated December 4, 2000, area 200 Ha

Certificate of land use title (HGU) Number 34, dated May 14, 2002, area 5.260 Ha

Certificate of land use title (HGU) Number 35, dated May 14, 2002, area 2.128 Ha

Total of PT SHE land use title is 7,794 ha and validity of each land use title certificate is for 35 years.

Minamas Plantation management through Plantation Service Department (PSD) has sent a letter of application Number 238 / L

& ASD-Bjb/MGG/X/2010 to the Planning Board of South Kalimantan Province to obtain maps RTRWP, however until now it has

not obtained the map as being in the settlement process. This is evidenced by the Letter of Provincial Development Planning

Board Number 650/458/ITR Bappeda of South Kalimantan, dated October 20, 2010 that the map is in the settlement process.

Full Compliance

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.

Available certificate from the National Land Agency Office of Tanah bumbu Number 000/171/KP.12, dated July 15, 2010,

explaining that in some areas of the PT. Sajang Heulang included in the Certificate of HGU, there were no communal land status.

Based on identification reports by HCVA PT SHE by Pollito in year 2010, found the area is classified as HCV 6 of the Tomb of the

ancestor Setarap Village. Socialization has been done and consultation with relevant community related on HCVA determination,

the available evidence Activities Attendance At Public Hearing HCVA PT Sajang Heulang, Oil Palm Plantation. Date January 6,

2010. Distribution maps are available in the area of HCV 6 PT Sajang Heulang Plantation.

Full Compliance

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.

SHE has a document the company's work plan for the short term the Year 2012-2013 Work Plan and set in the 2012-2016

Budget for the distribution of Mustika Estate, Pantai Bonati and Angsana Mini Mill.

1. For the unit management Pantai Bonati and the Mustika Estate, there have planning for operating costs that have been

legalized on February 9, 2012 by the Estate Manager, GM Sebamban Estate Area, Senior GM Kalsul Plantation Operation,

Head Plantation Operation and Upstream Productivity Department, the distribution of the work plan include cover:

a. Forecast production of 2012-2016, the production yield (ton / ha), administration cost, labor cost, mature upkeep,

manuring, harvesting and collection, transport, etc.

b. For corporate environmental management plan has allocated the cost of the plan include the cost of water supply to the

activities of employees, the cost of OHS, RSPO, HCV, EIA, etc..

c. For social governance plan the company has plans to allocate these costs among other fee activities for religious

holidays, the wages of teaching staff, the cost for CSR programs and social contribution to society, etc.

2. Angsana Mini POM plans are operational costs that have been legalized on January 6, 2011 by the Mill Manager, Mill GM,

SGM Plantation Operation Region Kal/Sul, Head Plantation Operations, Upstream Productivity Department, the distribution

of the work plan include:

a. Forecast mill intake (FFB), palm oil extraction, kernel extraction, processing cost, admin cost, training cost, Environment

cost, Health cost, transport cost, etc.

b. For corporate environmental management plan has a plan to allocate those costs such as expenses for the activities of

manufacture, installation and maintenance of OHS and Non OHS bulletin boards and, the cost of laboratory analysis

services for the analysis of CPO, waste to outside parties, etc.

c. Social management plan for the company has plans to allocate these costs such as costs for activities such as

donations to a third party fees, the proposal celebrations, OHS socialization expenses, RSPO, HCV, Social Security,


ASSESSMENT REPORT


Safety and Health, etc.

3. SHE has implemented SAP program for financial monitoring. Based on the observation of documents the company has been

projecting for some activities such as production, extraction of crude palm oil, palm kernel extraction until the year

2015/2016.

SHE has a long-term replanting plan in the form of documents Long Range Replanting Programme (LRRP) and replanted in

2021-2030 Plan Map. This plan aims to redesign from the previous block, especially for crops planted by the year 1995 and

1996, with an area of 213.51 ha in Mustika estate and Pantai Bonati area of 221 ha estate Bonati. SHE policies established by

plant age over 25 years, the yield below 18 tonnes / ha, plant height in excess of 15 meters and carried out systematically

(centralize) and followed the operational pattern such as BHS (Block Harvesting System), BMS (Block Management System),

BSS (Block Spraying System), for the Implementation of the Year 2020 will begin in 2022 and Mustika Estate and Pantai Bonati

estate.

Full Compliance

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

4.1

Operating procedures are appropriately documented and consistently implemented and monitored.

SHE has the operational procedures of the SOP document AGRICULTURAL REFERENCE MANUAL Number Policy: 110/EST-

ARM/08, ratified on December 22, 2008 CEO, GM, Controller, HPO, SGM document contains about planting materials, nursery

technique, replanting, land preparation, planting density, maturity age, field upkeep, manuring, canopy management,

management of coastal water in the soil / plant oil palm on peat, ablation, standard ripeness, harvesting interval, tracebility, plant

protection.

Angsana Mini POM has started the procedure of receiving FFB, processing until the CPO and PKO dispatch for mill

operations Angsana Palm ratified on July 26, 2010 by Head Plantation Operations (HPO) which procedures contains:

1. SOP Number 110/POD-FAC/07, Chapter I of the basics Palm Oil Processing such as receipt of FFB, boiling water

(sterilizing), striping, digesting, compression (pressing), purification (clarification), separation seed and coir, kernel station,

stockpiling and palm kernel oil, laboratory management, boilers, electrical generating machinery, other types of engine

power, safety and work safety.

2. SOP Number 130/POD-FAC/07.

Chapter I of the basics Palm Oil Processing General Explanation (I), the Organization of POM (II), POM Operations

Administrative Procedure (III), Administrative Procedures delivery MKS / CPO or IKS / PKO (3.3).

3. There is a SOP on safety and health such as OHS Guidelines, Assessment and Control Hazard Identification Number SOP.

7301/PSQM-ESH/11 ratified on July 7, 2011 and the Occupational Health and Safety SOP number 711/TQEM-P2K3/07

ratified on May 31, 2007.

SHE has a mechanism for inspection or monitoring operational activity as follows:

- Plantation Advisory (PA). The scope of this activity include regarding the production, OHS activities, best management

practices, the environment and follow up on previous internal audit findings. Last assessment on October 14 to 16, 2011 in

Mustika estate, October 17-19, 2011 in Pantai Bonati estate.

- Mill Advisory (MA) report to the Angsana Mini POM conducted on October 12, 2011 describes the management review

process at each station, mill performance, Mill maintenance, OHS, the cost of production, labor, purchasing and inventory of

goods, sales of CPO / kernel and delivery, safety and follow up findings on previous internal audit.

- Internal audit activities at Mustika estate on October 26, 2011 and Pantai Bonati estate on September 21-27, 2011 in the

Inspection Conclusion Working Paper Sheet that explains the financial aspect, the availability and purchase of goods, plant

upkeep and fertilization, harvesting and transportation.

There are documents that have operations in every estate as Day Treatment and Harvesting Reports that every day was


ASSESSMENT REPORT


recorded and then recorded each month in the program MMCM (Minamas Management Committee Meeting) which is a monthly

report by the unit management to a central management Minamas Plantation describe the evaluation of operational activities

plantation to keep it monitored as reported in the month of March 2012 about the area containing the statement, organizational

structure, data infrastructure, rainfall data, the production of FFB, data accumulation, general expenses, details of material

supplies, etc.

Angsana POM Monthly Report describes the activities of mill operations such as production and delivery, quality analysis, the

cost of production, employment data, and the achievement of process, maintenance management, Quality management, Cost

management and inventory stock.

Full Compliance

4.2

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

yield.

SHE has recorded the suitability of the land as outlined in the document Semi Detailed Soil Final Report of Pantai Bonati and

Mustika Estate issued by the Research Department of Minamas Plantation.

Semi Detailed Soil Survey conducted every five years, including the grouping of soil types and land suitability classes based on

levels of fertility and topography. Semi Detailed soil survey results together with the results of leaf analysis, used as a reference

by the company to provide a fertilizer recommendation.

The results of semi-detailed soil surveys classify the types of soil in the Pantai Bonati Estate (January 26, 2007) into two ordos,

the Oxisol and Entisols. Furthermore each ordo is classified and gained further becomes 3 series Oxisol ordo, namely: MM-18

Petroerricc Hapludox, MM-19 Plinthic Hapludox and M-21 Lithic Hapludox. To ordo entisols MM-22 Lithic Udorthents Spread

each soil series is poured into the Soil Map Unit (SPT). Then from the four SPL is combined with the topography of the land and

acquired 4 Land Map Unit (SPL). SPL-1 and MM-18 soil series have a 3-8% slope area of 536 Ha (as in block P-18, P-19, N-19,

N-10, N-11); SPL-2 with a series of land MM -19 has a 3-8% slope area of 1732 Ha (as in block Q-31, Q-30, Q-21, Q-19) and

SPL-3 with a series of land M-21 has a 3-8% slope area of 18 ha (as in block L-3) and SPL-4 with a series of ground MM-22 has

a 3-8% slope area of 240 Ha (as in block O-22, O-23, 0-25, O-23).

Results of Semi detailed soil survey grouping in Mustika estate into 4 kinds of ordos, which are Ultisol, Alfisol, Oxisol and

Inceptisol. Furthermore each or do classified further and obtained five soil series, namely: MM-02 Typic Hapludults, Lithic

Eutrudox MM-09, MM-19 Plinthic Hapludox, MM-20 humic Endoaquepts and MM-23 Plithic Eutrudox. Distribution of each soil

series is poured into the Soil Map Unit (SPT). Then from the 6 SPL is combined with the topography of the land and acquired 6

Land Map Unit (SPL). SPL-1 and MM-02 soil series with 3-8% slope area of 1336 ha / 26% (block D-01, A-01, A-09, D-10 C-43);

SPL-2 with a series of land MM -02 to 8-17% slope area of 196 ha / 4% (block D-08, C-09), SPL-3 with MM-09 soil series with 0-

3% slope area of 621 ha / 12% (C-block 26, C-30, B-27, B-36), SPL-4 with a series of ground MM-09 with 3-8% slope area of

177 ha / 3% (block F-32, F-33, F-34) , SPL-5 with a series of ground MM-19 with 0-3% slope area of 187 ha / 4% (block C-34, B-

32), SPL-6 with MM-20 soil series with 0-3% slope area of 2320 ha / 44% (J-22, I-22,! -35, G-33, D-31), SPL-7 with the MM-23

soil series with 3-8% slope area of 134 ha / 3% (block E -33, E-34, D-35), however the semi detailed soil surveys are planned

every 5 years has not been made by the SHE through 2012 has not been done.

SHE has made regular leaf analysis (Leaf Sampling Unit) conducted every once a year which aims to provide recommendations

that will be given the amount of fertilizer on crops. Available records of results of leaf analysis regularly, including: document Leaf

Test Analysis Report, dated 25 May 2011. The results of the analysis including the following:

Pantai Bonati estate field M-015, coverage 23.07 Ha, planted in 1998; mineral soil type, the plants amount of 2,990, 18.5%

on dry matter (2.82% N; 0.168% P; 1135% K; 0.323 % Mg, and 0.597% Ca)

Mustika estate Field A-001, coverage 92.9 Ha, planted in 1996; mineral soil type, the plants amount of 12,357, 19.6% on dry

matter (2.89% N; 0.168% P; 1.022% K 0.269% Mg, and 0.552% Ca)

SHE has conducted semi detailed soil survey in 2006, however the semi detailed soil surveys are planned every 5 years through

2012 has not been carried out by the SHE.

Non-Conformance see CAR.2012.01.


ASSESSMENT REPORT


SHE had recorded the realization of activities to maintain and improve soil fertility such as:

a. Records of fertilizer application based on oil palm plant fertilizer recommendation of the MRC based on the type of fertilizer,

NPK dosage per plant, Kieserite, Rock Phosphate, HBFG (borate) and coverage area such as fertilization Mustika estate in

the period 2011/2012 fertilizer application activity has reached 84% or 1,470 tonnes of fertilizer application of fertilizer plan

period 2011/2012 amounting to 2,488 tonnes and Pantai Bonati estate for fertilizer application has reached 89% or 2,129

tonnes of fertilizer application of fertilizer plan period 2011/2012 amounting to 2,385 tonnes

b. Activity reports are available on the application of liquid waste Mustika estate on the block J-004 in the period March 2012

covering 41 ha total of 13,496 M3.

c. There are a EFB Applications report in March 2012 as in 3,044 tonnes Mustika estate covering 56 hectares (block B-03, B-

04, A-01, A-02, F-01, G-02, G-03) and in Pantai Bonati estate area of 14,532 t ha (P-011, N-010, P-018, K-005).).

Minor 4.2.1 Non-Conformance see CAR.2012.01.

4.3

Practices minimize and control erosion and degradation of soils.

There is a land suitability map for the SHE as in Pantai Bonati estate described as marginal land areas that have levels of

compliance S3 (less suitable / moderately Suitable) covering 794 hectares (such as block P-18, P-19, N-19, N-10 , N-11, L-3, O-

22, O-23, 025, O-23) and in Mustika estate described as marginal land areas that have levels of compliance S3 (less suitable /

moderately suitable) covering an area of 3314 Ha (such as block D-08, C-09, C-26, C-30, B-27, B-36, F-32, F-33, F-34, J-22, I-

22,! -35, G -33, D-31) and found that there was a land of gold mined in Mustika estate is categorized as an area that is not

suitable for oil palm plantation area of 190 ha.

SHE already has management strategy for the area with a certain slope:

- Reducing erosion and surface runoff by maintaining vegetation by selective weeding, the placement of midrib forming a U (U

shape Frond stacking) in each estate and the planting of the terrace grass (Vetiver grass ) in P-28 and P-29 Pantai Bonati

estate.

- Preparation of sylvite to hold water and prevent erosion has been done in Mustika estate as in block D-10, C-10, C-6.

SHE also have to monitor the rate of erosion as evidence of efforts in controlling soil erosion and degradation has been effective

SOP (Number Policy II-04/MRC-SOP/10) on erosion control in accordance with applicable regulations (Government Regulation

no 150 year 2000). These monitoring activities carried out by using the Pole Erosion method of measuring soil Erosion mounted

at some sample point and measured in period January to March 2012 as the Mustika estate (D-009) shows the measurement

results of 1-2 mm soil erosion.

SHE has a data recording plan and realization of Progress Road and Bridge and Road Map Hardening Plan since 2010-2012

that describes the program and the realization of All weather road conditions, road maintenance costs, location, formation of

roads to avoid flood, making side drain to drain collection of water to drink in a block like the program in March 2012 in the

Coastal division II Bonati estate in block P-27 and P-32 is based on field visits have been carried out road upkeep and collection

road main road which is in good condition.

Based on the results of semi detailed soil survey indicates that there is no peat in the PT.SHE work area.

SHE has a Final Report Semi Detailed Soil Survey conducted on February 6, 2006 for Mustika estate covering area of 2,835 ha

and Pantai Bonati estate in November 2006 covering area of 2,526 ha which explains the strategic plan in marginal soil

management and critical soil:

Measures to reduce the rate of erosion and surface runoff and leaching, by treatment with U-shaped Frond stacking, building

growth of Nephrolepis and vetiver grass, terracing or sylvite in sloping areas

Improvement of soil fertility is one of them with the acidity management measures (pH soil). The area of land on the MM-18

series, both SPL 1 and 2 have a soil pH between 4.01 to 4.88, however still need to raise the status of the soil pH by adding

of Dolomite fertilizer / agricultural lime.

Full Compliance


ASSESSMENT REPORT


4.4

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

SHE has developed a strategic plan including the management of HCV management of buffer zones of rivers and other water

sources are managed as HCV 1.4 to HCVS 4.2 and marking the limits of the riparian area, installation and sign-board ban on

chemical spraying and fertilizing the ban along 50 meters left and right boundaries river, forest tree planting, such as location at

Mustika estate and Pantai Bonati estate, as in the Bekarengan riparian, riparian ecosystems blocks I-29 to I-34 block, the water

source area and the block C-25 C-26, swamp area block C-38, C-39 and C-40, Setarap riparian, Angsana river 1 riparian,

Angsana 2 riparian, Bonati riparian.

Results of site visits to Sempadan Bekarengan Mustika Estate (block D-007, D-008, F-001, H-002, H-003, G-001, G-003) and

found to be a buffer zone boundary marking paint yellow circle on the distance to the main oil 5 (five) plant of the river. SHE is

also up to the month of March 2012 has planted 400 tree species Angsana and Clereside in areas such as Bekarengan river at

Mustika estate (block D-007, D-008, F-001, H-002, H-003, G -001, G-003.

Monitoring tree planting in Buffer Zone Area / HCV in Mustika estate include

1. October 6, 2010 -> Block E-10 244 Mahogany Trees

2. June 6, 2010 -> A-10 Block 50 Mahogany Trees and Block 65 B-11 Mahogany Trees.

3. February 9, 2011 -> E-10 30 Mahogany trees, 20 jackfruit trees, 400 Bamboo, 800 vetiver grass.

4. February 7, 2012 -> Block E-10 390 Jackfruit trees up to 730 Jackfruit trees, 57 mahogany trees up to 299 mahogany trees.

There are water management activities such as recording water quality test results report conducted by the Center for Industrial

Research and Standards, commodities and environmental testing laboratory for water samples taken from the river water,

artesian well water employee housing, such as test results which accordance to regulation in March 2012 that show:

Monitoring Wells block D residents for domestic purposes on March 8, 2012 which describes the parameters of pH 7.6, BOD

3.9 mg / liter, 8.7 mg COD / liter, 13 APM/100ml E. coli, Salmonella negative

Monitoring wells drilled for domestic employee housing on March 8, 2012 which describes the parameters of pH 8, BOD 2.5

mg / liter, 5.68 mg COD / liter, 8 APM/100ml E. coli, Salmonella negative

There is not enough evidence to do the analysis of water quality for domestic needs such as water from household water

treatment in Angsana Mini POM, Wells in the housing division to match the quality standards set out in Ministry of Health

regulation (Permenkes) Number 907 of 2002 on the terms and monitoring of drinking water and Government Regulation (PP)

Number 82 of 2001 on the management of water quality and water pollution, and that SHE has to evaluate the results of tests

conducted.

Angsana Mini POM has 6 ponds Installation of Waste Water Treatment Plant (WWTP) and the monthly monitoring of the quality

of waste water produced. There is monitoring of mill effluent BOD per month are available in the record Test Report conducted by

the Center for Industrial Research and Standards (BARISTAN), Banjarbaru, South Kalimantan and is also reported to the

relevant department every 6 months in the report RKL / RPL waste samples taken from pond number 1 (inlet), pond number 2,

pond number 3 (an-aerobic pond), Outdoor 4 (aerobic pond), pond number 5 (application pond), pond 6 (safety pond) such as

the Test Results Report:

February 2012 from the sample pond 5 (outlet / application) Report of Test Results Number 0904-E/BPKIMI/BRSBB/03/2012

with units of mg / liter: pH 7.4; 453 BOD: COD 938.22; Ammonia / NH3-N 2120; Copper / Cu 0.067; Lead / Pb 0.001; Zinc /

Zn 0.080.

March 2012 from the sample pond 5 (outlet / application) Report of Test Results Number 1439-E/BPKIMI/BRSBB/04/2012

with units of mg / liter: pH 7.98; 123 BOD: COD 247.02; Ammonia / NH3-N 0.104; Copper / Cu 0.067; Lead / Pb 0.001; Zinc /

Zn 0.047.

Based on the observation that the test results are known the document was met within the standards set for the wastewater

treatment plant is applied to the plantation.


ASSESSMENT REPORT


Records of monitoring the use of water available for plant use of water in the form of recapitulation of periodic monthly (January

2010 - March 2012), though inform FFB (tonne), water consumption (M3), and the average water use per tonne of FFB. In the

last 3 months was recorded for Angsana Mini Mill plant water use as follows:

January 2012

FFB 5,693.77 tonne process, use of water to process 7,400 M3 (1.3 M3/tonne FFB) and for domestic 2,046 M3 (0.36

M3/tonne FFB), so that total water use by 1.66 M3/tonne FFB.

February 2012

FFB 5,359.42 tonne process, use of water to process 7.392 M3 (1.38 M3/tonne FFB) and for domestic 2.046 M3 (0.38

M3/tonne FFB), total water use by 1.76 M3/tonne FFB.

March 2012

FFB 6,511.44 tonne process, use of water to process 8,222 M3 (1.26 M3/tonne FB) and for domestic 2.975 M3 (0.46

M3/tonne FFB), so that total water use by 1.72 M3/tonne FFB.

While for the Mini Mill Angsana known average water use was 1.7 M3/mt FFB. From the assessment document is known that the

use of water in Angsana Mini Mill continues to do daily monitoring by the company.

Full Compliance

4.5

Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest

Management (IPM) techniques.

PT SHE has consistently implemented the PHT program. As evidence of its execution, PT SHE has the PHT Program and

Budget document for the period of 2012, documents the monitoring cage and the owl population (Barn Owl Box) Mustika estate

on February 2012, observers in the name of Abu Bakar, the old Barn Owl Box 41 pieces, new Barn Owl Box 29 pieces, the good

condition of Barn Owl Box 30 pieces, 55 pieces of eggs, the average occupation rate 63.5%, document the monitoring Pest and

Disease Mustika Estate in February 2012 for division 1, 2, 3 and 4. Example: for divisions 1, 1212 ha area, the census results:

0% caterpillars, termites 0%, 0% oryctes, ganoderma o%, 0% pig, rat 0%, 49% nest box, also beneficial plant.

SHE also only use pesticides in accordance with existing regulations, as evidenced by a document monitoring of pesticide use

per hectare and per tonne FFB 2011-2011, both for the Mustika estate and the pantai Bonati estate that contains the type of

pesticide used, the active ingredient, unit (ltr or kg), the period of usage (November 2011-June 2012). SHE has also given the

right training to the spraying personnel, this can be seen from the Documents Team Training Tool Box Spray PT SHE, Pantai

Bonati Estate on 25 April 2012 which was attended by 13 people (there is present a list of participants).

Full Compliance

4.6

Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of

pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used

that are categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or Rotterdam

Conventions, growers are actively seeking to identify alternatives, and this is documented.

SHE has a document listing the chemicals used, both for Mustika estate and Pantai Bonati estate, which contains: trade name,

manufacturer, active ingredients, LD-50 Oral and Dermal, target of target weeds and registration number. Based on the

documents list the chemical, SHE does not use pesticides containing active ingredients that are prohibited in accordance with

Ministry of Agriculture Regulation Number 01 tahun 2007.

SHE also has a data document the use of material per hectare the period 2011-2012, which contains: Block application, block

area, year of planting, population, chemist upkeep program (type and amount of material used) and its realization, both for

Mustika Estate, and Pantai Bonati Estate. As an example for Pantai Bonati Estate, such as weeding chemist spraying on the

block P013, cropping year 1997, 91.24 ha area. Weeding chemist upkeep, in block N-011 planting year 1996, the area 92.29 ha,

89.29 ha was applied to a broad, systemic herbicide use by 35 liters, the amount of material consumption per hectare of 0.3 liter /

ha.

There is a temporary storage hazardous material waste permit by District Head of Tanah Bumbu Decree no 382 year 2010 (July

20, 2010), on the Permit Temporary Storage of Hazardous and Toxic Waste to PT Sajang Heulang (Mustika Estate) and the no


ASSESSMENT REPORT


188 dated 2 May 2011 to Angsana Mini Mill. SHE has shown the data management / delivery of all hazardous material (B3)

waste from the Pantai Bonati estate to Mustika estate which has a permit temporary storage of hazardous material waste and

evaluation of SOP hazardous material waste handling. Spraying activities conducted by SHE implemeted the BSS house system

which spraying activities can be controlled in one location.

SHE does not use pesticides containing active ingredients that are prohibited in accordance with Ministry of Agriculture

Regulation no 01/active T007. Examples for Mustika Estate, pesticides are used to:

1. Ally 20 WDG, the active ingredient methyl metsulfiron 20%, Number Register RI.837/1-2004/T

2. Basta 150 WSC, the active ingredient Amonium glufosinat 150 g/l, Number Register RI.1113/12-1998/T

3. Garlon 480 EC, the active ingredient Triklopir 480 g/l, Number Register RI.695/8-2003/T

4. Starane 200 EC, the active ingredient Floroksipir 1-MHE 288 d/l, Number Register RI.854/5-2004/T

5. Prima Up 480 AS, the active ingredient Isopropil amina glifosat 480 g/l, Number Register RI.1779/11-2007/T

6. Kenlon, the active ingredient Triklopir butoksi etil ester, Number Register RI.2433/5-2006/T

7. Trap 20 WP, the active ingredient Metil metsulfuron 20%, Number Register RI.1797/11-2002/T

8. Meta prima 20 WDG, the active ingredient Metil metsulfuron, Number Register RI.1897/7-2008/T

9. Metafuron 20 WP, the active ingredient Metil metsulfuron 20,05%, Number Register RI.1224/5-2006/T

10. Azodrin, the active ingredient Monokrotofos 150 g/l, Number Register RI.4266/1-1991/T

11. Decis, the active ingredient Deltametrin 23 g/l, Number Register RI.387/11-2002/T

12. Lentrek 400EC, the active ingredient Klorfirifos 400 g/l, Number Register RI.798/4-99/T

13. Ratgon 0,005 BB, the active ingredient Brodifacum 0,005%, Number Register RI.1212/8-2007/T

14. Klerat RM-B, the active ingredient Brodifakum 0,005%, Number Register RI.666/1-2004/T

Spraying teams for medical examination, the company has routinely conducted these checks every 3 months in the Central

Polyclinic. Especially for sprayer, based on field visits and interviews to the spraying team in blocks P21-P22, spraying workers

generally already know about the job the right way, the use of PPE and the rights of women workers.

Full Compliance

4.7

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

Available OHS (K3) policy endorsed by the CEO Minamas Plantation On July 5, 2008, which contains: Commitment of the

company is responsible for implementing the OHS program in all operational activities in the estate and mill. To realize this goal

the company has established operations procedures across the estate and mill. Determination is embodied in the effort to comply

OHS labor legislation, and will conduct continuous improvement and sustainable so that it becomes an equipment of risk control

and management of business activities.

Goals and Objectives:

1. Provide protection to everyone involved in the activities of the company (Zero accident) and its assets - the company's

assets

2. Realize that business activity is safe and healthy and to increase employee awareness toward safety culture.

3. Implement the RI Act on OHS.

4. Available OHS Procedures No: 711/TQEMS-P2K3/07, Minamas Plantation. Ratified on December 14, 2007 by Head

Plantation Operation.

The organization has the OHS Work Program document consisting of:

- OHS Meeting once a month

- Firefighter training twice a year

- OHS Guidance Committee internal audit programmed once a month

- OHS-month service activities programmed on the Month in January 2010

- OHS Quarterly Report programmed once every three months


ASSESSMENT REPORT


- OHS Expert training programmed once a year

- First aid training programmed once a year

- OHS Guidance Committee Training programmed every 3 months.

- Emergency response simulation two times a year.

- Periodic health examination Programmed every six months.

- OHS Guidance Committee minutes meeting exercise programmed every month.

- Inspection of fire extinguishers Programmed every month.

- Emergency response exercises Programmed three times a year.

Based on field visits to Angsana mill for welder and Angsana estate at block B-22 for EFB application worker known that workers

use appropriate PPE.

SHE has established the organizational structure of OHS in the estate and the mill unit by forming a Guidance committee of

Occupational, Health and Safety (P2K3), as:

Angsana Mini Mill got the approval of the social, labour and Transmigration Agency Tanah Bumbu District accordance to

Head of Labour Agency Decree Number 560/746/DISNAKERTRANS, dated July 6, 2007, and has proposed changes to the

new OHS Guidance Committee organizational structure related to the agency on March 29, 2012.

Mustika estate getting approval from the Social, Labour and Transmigration Agency Tanah Bumbu accordance to Head of

Labour Agency Decree No: 560/01/BNWS-WAS/2012, dated January 11, 2012. Every OHS Guidance Committee

organization in the estate and mill has OHS experts.

There are recording of regular meetings at Angsana mini Mill on April 9, 2012 to discuss the preparation environment

management. Availability first aid box. Company and has been regularly reported the OHS Guidance Committee activities to

related agencies.

Workers Social Security is available to all workers with a total of 621 workers PT.SHE are included in the Social Security program

in the month of March 2012 with the contribution Rp.56.353.232, - and the examples life insurance claims at Mustika estate on

behalf Imas Mulyani diagnosed abdominal pain and cyanosis in the month of December 12, 2011 are described in the recording

of the Certificate of Death and the claim is described in the document determination of Pension and life insurance Rp.12.439.580

,-. There are examples of the work accident insurance claim Pantai Bonati estate on behalf Suprapto on August 29, 2009 are

described in the minutes of occupational accidents and claims are described in the Accident Assurance Determination document

with amount Rp.6.009.200

SHE has conducted periodic inspections every six months to workers who are at high risk as there is a data recording Mustika

estate employee Periodic Examination by a company doctor who have received training by companies with personnel Hygiene &

Occupational Health (Hyperkes) Central polyclinic PT.SHE and the Medical Check-up, on January 20 - 24, 2012 to 65 workers of

chemicals sprayer, fertilizer, hazardous material (B3) warehouse clerk, supervision in Mustika estate and Pantai Bonati estate

which explains 12 sick workers and 53 workers in good health. Healt check parameters include: mentalist status, Stomaticus

status (ear, nose, neck, chest) and blood.

Data Periodic Examination conducted by the company doctor (David Terny Tumbel) on October 13, 2010 to 19 workers at the

Angsana Mini Mill operator there are 8 workers in pain is not due to the impact of occupational and 11 workers in good health,

however regular checks are carried out by Angsana Mini Mill to workers, especially workers who are at high risk of not exceeding

one year not appropriate with the plan PT.SHE health checks and not appropriate to Ministry of Labour Regulation number 2

year 1980 on labour health check.

Non-Conformance see CAR.2012.02

SHE has conducted risk analyzes for the OHS (K3) program on Estate and Mill as practiced by Mustika estate and Pantai Bonati


ASSESSMENT REPORT


estate in the Risk Assessment documents on May 1, 2010 made by the assistant division, Staff ESH Manager and approved by

the Estate Manager who explains the type of work, risk , the impact, the level of risk, risk control and responsible person , such

activities such as loading FFB to the truck with the potential hazards from FFB falling and the impact that injured limb so that the

recommended use of PPE (helmet and shoes)

Based on field visits at Angsana Mill workshop is known that the risk analysis for welders work has been done and based on

observations document the risk analysis at Angsana Mini Mill not found potential harm to hearing as the engine room station and

the boiler station. SHE may increase the risk analysis that evaluates the documents have to be adjusted to actual conditions.

OHS program in 2012 as planned by Angsana estate and mill OHS training such as:

1. First aid training exercise conducted at the Pantai Bonati estate sport building on October 20, 2010, followed by 22

participants from Pantai Bonati estate, Angsana Mini Mill. These activities led by the company doctor who discusses first aid

tool control, aid respiratory system, help for poisoned victim.

2. Comprehensive Safety and Health training conducted at the Angsana Estate in April 9 to 15, 2012 and attended by 14

participants from Mustika estate and Pantai Bonati estate that provides training on OHS Management training, first aid,

health standards, Safety transportation, waste management.

3. Minutes recording Simulation first aid (P3K) on March 30, 2012 at Sports House Angsana estate made by a company doctor

and attended by 75 participants from Mustika estate and Pantai Bonati estate. The training explains the basic knowledge of

handling first aid, first aid simulation (burns, animal bites, fainting, drowning victims, hit by sharp weapon injuries, broken

bones wounds) and discussion.

There is a Certificate of Steam Boiler Operator who has been trained in coaching and testing of OHS Steam Boiler operator

license conducted by the Ministry of Labour and Transmigration Directorate general of Labour Development Inspection on

January 5-14, 2010.

Available documents preparedness and emergency response procedures, including:

First Aid Procedures In Accident, AMF/SOP.ESH/07, dated April 9, 2010

Emergency Response Procedures, AMF/SOP.ESH/14dated April 8, 2010

Fire prevention. No 727/TQEM-ESH/10 dated April 1, 2010,

Identification and evaluation of potential emergency 724/TQEM-ESH/10 dated April 1, 2010,

Earthquakes 746/TQEM-ESH/10 dated April 1, 2010,

Evacuation 726/TQEM-ESH/10 dated April 1, 2010,

Explosion mitigation 728/TQEM-ESH/10 on April 1, 2010,

Emergency exercise 733/TQEM-ESH/10 dated April 1, 2010,

Preparedness and emergency response and recovery 725/TQEM-ESH/10 dated April 1, 2010.

Based on visits to the Angsana Mini POM every visitors before perform the activities in the mill work area, should to get a safety

briefing from safety officer and mill assistant.

Fulfillment of OHS program and first aid equipment is available at the work site as:

Mustika estate

30 units fire extinguishers, some located in the division office, employee housing, a large office, warehouse, garage

workshop, staff housing.

14 units first aid Box located at the division office, traction office, warehouse.

2 engine water pump fire extinguisher.

Provide PPE to all workers as minutes of PPE submission

Pantai Bonati Estate


ASSESSMENT REPORT


26 units fire extinguishers available among others located in the office division, the central clinic, warehouse, office traction.

14 units first aid box available in a large office, central warehouse, division offices, schools, truck spray employees.

Provide PPE to all workers as minutes PPE submission

Angsana Mini Mill

21 units fire extinguishers available include the processing station 11 units, housing staff and employees of 8 units, 2 units

of the mill office.-

3 units first aid box in the mill officel, engine rooms, offices workshop.

Provide PPE to all workers as PPE submission

Based on field check to Angsana Mini POM has not been carried out routine checks on the completeness of the first aid kit box

contents. Non-Conformance see CAR.2012.03

First aid training has been followed by the workers who are just as training operations conducted in Pantai Bonati estate Sports

Building on October 20, 2010 attended by 22 participants from Pantai Bonati estate (harvest foreman, spray foreman, clinic

assistants), Angsana Mini Mill (foreman process, lab employees). These activities led by the company doctor who discusses first

aid tool control, aid respiratory system, help to poisoning victim.

The workers who have received first aid training like first aid simulations on March 30, 2012 at Angsana estate Sports Building

led by a company doctor and were followed by 75 workers (foremen, teachers, employees, staff) from Mustika estate,Pantai

Bonati estate and Angsana Mill. The training explains the basic knowledge of handling first aid , first aid simulation (burns,

animal bites, fainting, drowning victims, hit by sharp weapon injuries, broken bones wounds) and discussion.

Accident Monitoring documents contained in the estate and the POM to explain the incident date, name of victim, gender,

employment status, place accidents, lost work days, categories of accidents and causes of accidents are recorded and reported

on a regular basis like a review was made in the period July 2011 to February 2012, there is accident affected by harvest

equipment, 11 work accidents that resulted in 29 lost of work days and an evaluation of work accident being repaired by briefing

activities in every morning Muster for harvest SOP socialization, safety work socialization, provide and application of complete

PPE.

Minor 4.7.2

Minor 4.7.6



4.8

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

Organizations have training programs for staff in the form of documents Indonesia Plantation Management Committee (Report

Human), dated 24 April 2012, a Minamas Learning Design for the period 2012-2013, which contains Mandatory Training Related

to Employee Level: (Core Executive Program) consists of :

1. CEP 1 for Supervisor/Assistant Supervisor/Assistant (G/H Level)

2. CEP 2 for Assistant Manager/Senior Assistant (F level)

3. CEP 3 for Manager and senior manager (D/E Level)

4. CEP 4 for GM up (C level up)

Competency Training program based on Employee training need analysis (GAP Competency), consisting of training: personal

effectiveness, leadership, functional. As evidence, there is a memorandum from the Head Plantation Upstream Indonesia

Number 623 HRM-i1-X-11, dated October 17, 2011 regarding Designation Vendor In House Training Minamas Proposal, 2011-

2012, contains: Vendors appointed and the module will be given. There is also a list of trainings attended by staff and training

documents, such as documents Workshop Field Clinic Fertilizer Management on April 17-18, 2012, held in the Hall of Angsana,

available schedule, speakers and attendance list of participants.

SHE, also has a matrix identifying training and training plans for employees of non-staff who will be given a period of 2012


ASSESSMENT REPORT


consisted of Care, fertilizing, spraying, sorting FFB, fire extinguisher, prevention, public OHS, chemicals OHS, first aid, electric

OHS, RSPO, OHS management.

Full Compliance

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

5.1

Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and

plans to negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate

continuous improvement.

Available ANDAL and RKL / RPL Documents for Palm Oil Estate (Main Estate) PT. SHE and palm oil mill (2 x 60, FFB / Hour), the

KKPA Program, 2000. ANDAL document has been approved by the Secretary General / Chairman of the Central EIA

Commission Department of Forestry and Plantations, Number 154/Menhut - II/2000 dated December 26, 2000.

Implementation Report also available RKL and RPL PT. Sajang Heulang, Period January-June 2011 and the Period July to

December 2011. RKL and RPL Implementation Reports PT. Sajang Heulang, Period Period July to December 2011 has been

reported to the Environment Agency of Tanah Bumbu District, dated May 1, 2012.

SHE has shown the data submission and receipt of the report RKL / RPL second semester of 2011 to the Environment Agency of

Tanah Bumbu District on May 1, 2012 with letter number 08/SHE/PSQM/II/12.

Full Compliance

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.

Based on documents HCVA PT SHE Identification Report, January 2010 conducted by Pollito explain not found a protected

species, rare and scarce in the area of PT SHE. In the PT SHE is an area of 444.19 ha consists of: HCV 1.1-Regions with the

support function of biodiversity; HCV 1.4 - Habitat for the species on a temporary basis; HCV 4.1 - Area of water supply and flood

control; HCV 4.3 - natural insulation to prevent fire; and HCV 6 - areas important for cultural identity of local communities.

Activities that have been done to protect the area HCV 1.4, 4.1, 4.3, and 6. among other participatory boundary marking,

installation of information boards, creation of a permanent plot vegetation and wildlife, planting tree species that is able to catch

the water, making observations of erosion plot, pile up palm midrib on sloping land, forming a unit of work management,

preparation of planning documents, the preparation SOP management of HCV, and the socialization of the presence of HCV to

the employees and the community.

Available documentation in the form:

Documentation of socialization results in the identification of HCV PT SHE plantation on September 30, 2010 (photos &

Present List of Participants).

Dissemination to the public areas of HCV in the village of Sumber Baru, Angsana and Bonati. Socialization is also followed by

the installation booklet in several public areas in the village and planting mangrove and mahogany along the Angsana (Block

Q-29). There are also photos of the implementation and dissemination activities on the River Angsana planting.

The posters that have been disseminated to workers and surrounding communities.

To perform program management areas of HCV in the PT. Sajang Heulang, the management has set the two officers. available

Decree and job descriptions for two specialized HCV staff:

1. From Pantai Bonati Estate Manager for the appointment of Managing and Monitoring HCVA foreman on behalf Indarto,

September 5, 2010.

2. From Mustika Estate Manager for the appointment of Managing and Monitoring HCVA foreman on behalf Husdiansyah,

Number 0001/HCV/MTE/XII/2011, dated December 1, 2011.


ASSESSMENT REPORT


Both of these staff has attended the Technical Workshop on the management of HCV located at Angsana Estate held by the

MRC (Minamas Research Center) on June 16-17, 2010 attended by 62 participant’s foreman level employees, staff and

managers from SHE unit management.

Full Compliance

5.3

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

SHE has to identify the sources of waste and pollution in both the estate and the mill as provided in the document and the Waste

Resources identification matrix that describes The management of waste sources (factories, household, workshop, warehouse,

office), type of waste (solid, liquid, gas), Classification of hazardous material (B3) and non hazardous material and the handling of

such waste:

The type of solid waste in the form of EFB (though 22-24% of FFB), fiber (12-14% of the FFB though), shell (6-7% of the

FFB though), and boiler ash generated by the process of CPO production in Mill.

Type of waste water though 60% of FFB produced by CPO production process at POM.

Hazardous material waste type is used gloves, cotton waste cloth, used batteries, fluorescent lights, chemical packaging,

catridge, tonner is produced from a variety of estate and POM activities.

Waste management plan is set in the Waste Management hazardous material and non hazardous material SOP Number

RSPO/5.3/PLB3 & BB3, June 4, 2009 which governs the management of waste as follows:

The hazardous material waste stored at licensed temporary warehouse shall not exceed the period of 90 days, if over time it

should make coordination with related agencies.

Solid waste used for land application (eg an empty bunch), for boiler fuel (eg, fiber, shells), pile up on vacant land (eg boiler

ash), as in the period January 2012 - March 2012, has made application to the EFB Mustika Estate (as much as 3044

tonnes for an area of 56 ha) pad block B-03, A-02, F-01, G-03. Company targeting applications EFB of 40 tonnes / ha.

Waste water treatment plant is used for land application in the plantation.

Air pollution be addressed by routine service (eg generators), and

Hazardous material (B3) Waste submitted to a licensed hazardous material waste collector.

SHE has a Waste Management hazardous material and not hazardous material SOP Number RSPO/5.3/PLB3 & BB3, June 4,

2009 that regulates the hazardous material waste management plan, SOP contains information Types of Waste, Management

Plan, and Time Management set includes the hazardous material waste management plan by way of temporary storage, sale to

another party who licensed, or destroyed and set the shelf life of hazardous material waste with a period of 90 days of storage.

Sales made to the hazardous material waste licensed collector (including PT.Larashatiku Environmental) that is the holder of a

license based on the Ministry of Environment Decree Number 235 year 2011. Before being sold or destroyed, hazardous

material waste is stored in a temporary storage warehouse located in SHE.

For medical waste disposal undertaken in collaboration with hospital. Ulin Banjarmasin with a number of cooperation agreements

001/RS-MGG/Limbah.M/VII/2010 and between PT.Minamas Gemilang Group (SHE, SHE, BSS, SAA, LMI, PSA, LMR, ITH, Exit,

TSA)660/3147/Kum-Inf/RSUDU and Ulin Hospital Banjarmasin.

PT SHE has two a temporary storage area that has received permission hazardous material waste such as:

1. Temporary warehouse for hazardous material waste permit at Mustika estate with coordinates S 030 29 '17.04'' - E 1550 42'

59.8'' by District Head of Tanah Bumbu Decree Number 382 of 2010 which was ratified on July 20, 2010 and the period of

validity of license until July 20 2015.

2. Temporary warehouse for hazardous material waste permit at Angsana Mini Mill with coordinate S 030 40 '20.3'' - E 1150 37'

16.7'' by Regent of Tanah Bumbu Decree Number 188 of 2011 ratified on May 2, 2011 and period of validity license until to 2

may 2016.

Based on field dheck to Angsana Mini POM found used oil spills outside the hazardous material waste warehouse location


ASSESSMENT REPORT


directly spills to ground and hazardous symbol are not in accordance with KepBapedal (Head of environment impact

management body decree) number 5 year 1995 regarding Hazardous label and symbol.

Non-Conformance, see CAR.2012.04

SHE Waste Monitoring available records, such as: Used oil, dust cloth fabric, old light bulbs, a former pesticide packaging, and

used batteries. The recording information includes: date of receipt, the origin of waste, the amount received, the number came

out, and stock.

Available data for the use of Fiber and Shell Fuel Boiler at Angsana Mini Mill on January-April 2012 which contains information

on processing, the number of process hours, fiber / shell was produce, the use for the boiler.

Available Card Warehouse Assistant for record-waste, which contains information of request, response and the stock as in

Mustika estate, up to April 2012 provided the remaining 273 liters of used oil.

SHE sell the used oil to the CV Nazar (Waste Oil Collection) permit holders according to the Minister of Environment Decree

Number 513 of 2008 dated August 7, 2008, valid for 2 (two) years. Based on the Cash Voucher dated October 9, 2011, note that

the former last oil sales to CV Nazar as much as 1,030 liters of Mustika estate and recorded at the Warehouse Card.

SHE has reported the realization of hazardous material waste storage activities related to the agency in accordance with

hazardous material waste temporary warehouse license owned by Mustika estate and Angsana Mini Mill.

Based on visits to hazardous material waste temporary warehouse in the Angsana Mini mill is available as a standard means of

OHS alarms, fire extinguisher equipment, shower eye wash and emergency response facilities.

Minor 5.3.1 Non-Conformance, see CAR.2012.04

5.4

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

Records of monitoring energy usage are described in the document the use of Fiber Fuel Boiler shells data in March 2012 as

fuel use fiber for 456 tonnes, 195 tonnes of shells at a yield of 36,300 kwh energy consumption while the CPO products are

produced at 1,553 tonnes and the kernel amounting to 292 tonnes, so the results of monitoring the use of renewable energy in

March 2012 of 13.9 kwh / tonne CPO or 11.7 kwh / tonne of palm product.

Based on the evaluation period January - March 2012 Note that a decline in energy use of 22.97 kWh / Tonne palm product in

January 2012 to 11.68 kWh / tonne of palm products in the month of March 2012.

SHE has recorded the use of diesel fuel in the form of matrix and graphs such as recording the use of diesel fuel in the period

November 2011 until March 2012, as known the usage of diesel fuel has decreased its the Angsana Mill. Based on the evaluation

of the recordings that Angsana Mini Mill increasing use of fiber and shell during the process of FFB processing so that the use of

diesel fuel can be reduced as the period of November 2011 is 2.33 liters / tonne in March 2012 on FFB , while the 0.84 liter /

tonne FFB.

Full Compliacne

5.5

Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified

in the ASEAN guidelines or other regional best practice.

The Company has a policy of zero burning (land clearing without burning) as outlined in the Procedure of Land Preparation,

Section 3 SOP Number Policy 110/EST-ARM/08. Also reinforced by the Head Plantation Operation Memorandum of July 12,

2010 POD-UM-150/VII/2010 numbers. PT SHE has a Fire Fighting SOP document number PM 0800 April 1, 2010, passed by the

PBE EM, EM MTE and Acting, FM AMF, contains a list of contents, purpose, scope, references, definitions, procedures. Available

Fire Fighting SOP, which was passed on 19/06/2010, contains about: preparation, land fire response team, fire control inside and

outside the plantation, administration and reporting.

SHE has the Mustika Estate Fire Monthly Monitoring report for the month of March 2012 related to reports of fire inside and

outside the estate, for the month of March 2012 at Mustika Estate there is no fires accident. The Company also has an

organizational structure, for example for Pantai Bonati Estate. The structure consists of: Coordinator who supervises the logistics,


ASSESSMENT REPORT


daily manager directly supervises the daily team leader A and B (in charge of the team leader spray, water supply team, and the

team flafer). PT SHE also have to include representatives of employees for training land fire fighters held in PT SHE, Angsana

Estate on March 2, 2012 and emergency response training in PT SHE dated February 7, 2012.

Based on site visits to storage and fire emergency facilities at the Workshop on Pantai Bonati Estate shown facilities and

infrastructures are not ready to use condition.


Related prevention and response to fires, available fire extinguishers list of land for the Pantai Bonati estate consists of: Water

machine, fire hose, water trailers, machetes slash, bucket, boots, safety glasses, gloves, smoke mask, helmet, first aid, map

pockets of water and the identification of areas prone to fires. The same list of documents available for the years 2011-2012

Mustika estate consists of: a water machine in traction, the tools available in each division (for 4th divisions): 42 unit of fire

extinguishers, hoses, helmets,sacks,buckets ,machetes, hoes, safety glasses, reservoirs, boots. There are also checklist the

location of Fire extinguisher, for example, to Mustika estate in 2011, there were 30 Fire extinguishers (managers House, Senior

House, Mess, a large office, Genset Division IV, Houses, Workshop.

Minor 5.5.1 Non-Conformance see CAR.2012.05

5.6

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

Available Waste Source Identification documents at the POM, including the sources of emissions and pollution. Sources of air

pollution: boiler, generators, and vehicle exhaust.

Sources of liquid waste are Heavy Phase and Condensate Sterilizer with 60% of the total amount of FFB processed.

Types of solid waste: EFB, fiber, shells, and boiler ash.

Types of liquid waste: heavy waste and condensate phase sterilizer.

Types of hazardous and toxic wastes: used oil, grease, water leaching chemicals in the laboratory; old leather gloves, cotton

waste lap marks, scars batteries, fluorescent lights used, packaging chemicals, used cartridge, toner used.

There is evidence that SHE had monitored the intensity of the noise environment, Ambient Air Quality Testing, Air Quality Work

Environment. The entire testing conducted by the Hyperkes (Hygiene Health and Safety Company) and the Ministry of Labour

and Transmigration Agency of South Kalimantan. Testing conducted for every 6 months. Previous tested on December 9, 2011.

Testing location for emission quality is the no 1 and no 2 boiler chimney, generator 1 chimney, generator 2 chimney. The test

results showed that raw emission levels are in accordance with quality standards set out in Ministry of Environment regulation No

7 year 2007 about quality standard static emission source.

Location Intensity Noise Testing Work Environment consists of the Office of the POM, loading ramp, thresher stations, sterilizer

station, press station, the station kernel, the station engine rooms, boiler station. The test results showed that the level of noise in

the press station (87.7 dBA), the station kernel (92.9 dBA), the engine room station (93.4 dBA) exceeded the threshold value

determined in accordance Ministry of Labour regulation (Permenaker) Number 13 year 2011 on Value threshold Physics and

Chemistry factor in the workplace. The Company has instructed the operator to use the earplug at that location.

Location of Ambient Air Quality Testing is Angsana Mini Mill office, at the mill site behind the mill office. The test results show the

ambient quality standards are still appropriate with Governor of South Kalimantan Regulation Number 053 year 2007 on Ambient

Air Quality Standards and Standard Noise Level, however for monitoring the quality of motor vehicle emissions at the Angsana

estate has not been carried out in accordance with the Ministry of Environment regulation number 5 year 2006 on Threshold for

vehicle exhaust emissions.


Available Noise SOP No AMF/SOP.ESH/06 dated 13 April 2010, which describes the actions to reduce and / or control

emissions. For example, to reduce the noise required to use ear plugs and placements 2 units of blow down silencers in the

Angsana Mini POM area.

Efforts to reduce air pollution, among others, Angsana Mill has 2 units Density Smoke Meter is functioning properly to monitor the


ASSESSMENT REPORT


concentration of smoke generated from combustion in the boiler which will give warning if the measured concentrations above

40% mm / hour.

SHE owned a licensed of effluent application by District Head of Tanah Bumbu Decree No.426 of 2007 which describe the

location allowed for the application area Gunung Sari estate covering 76 hectares to the total area allowed for the application of

wastewater utilization of 281 Ha. Records of POME management implementation are described in a daily report for the

production of effluent generated and applied as in the month of March 2012 the application of effluent at Angsana Mini ,5918 M3

to 45.6 ha area of application in block C-09, D-09, D-20, E-10 Gunung Sari estate.

Major 5.6.2 Non-Conformance see CAR.2012.06

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.

Type of document that describes the social impact of the activities of the PT. Sajang Heulang:

1. Document Environmental Impact Assessment (ANDAL) in 2000 (page VI .11 - 17). Collection datas of socioeconomic, cultural

and health carried out through interviews with community and immigrant communities.

2. Social Impact Assessment report documents of Oil Palm Plantations Management PT. Sajang Heulang by Pollito in 2010.

Document the names of the parties involved in the dissemination of Social Impact Assessment 2010 results in Visum book

contains the signature and stamp

Available RKL and RPL PT. Sajang Heulang Implementation Report, Period January-June 2011 and the Period July to December

2011. Measure Parameters of the Social Impact, described in the Social Impact Assessment Document PT. Sajang Heulang

2010. Examples: 1). Increasing people's welfare, now has formed village cooperative unit of Tuwuh Sari that has 8100

smallholder members, 2). Improved public perception of the existence of PT. SHE in the presence of plasma program (KKPA).

RKL and RPL Implementation Reports PT. Sajang Heulang, Period Period July to December 2011 has been reported to the

Environment Agency Tanah Bumbu District, dated May 1, 2012.

SHE integrate the social impact evaluation result into next period RKL / RPL implementation

Full Compliance

6.2

There are open and transparent methods for communication and consultation between growers and/or millers, local

communities and other affected or interested parties.

The management of PT. Sajang Heulang had Communication Procedure, No. Policy: 704/TQEM-ESH/10. There is recorded

evidence of communication and consultation with the community, the dissemination to the public areas of HCV in the village of

Sumber Baru, Angsana and Bonati. Socialization is also followed by the installation booklet in several public areas in the village

and planting mangrove and mahogany along the Angsana (Block Q 29). There are also photos of the implementation and

dissemination activities on the River Angsana.

There is also list of Stakeholder PT. Sajang Heulang including public figure, related government agency, and other directly related

companies. For instance, PT. Gawi Makmur Kalimantan, PT Buana Karya Bakti (Oil Palm plantation companies), and PT. Tunas

Inti Abadi (coal mining company).

Aspirations of the people recorded in the request and response Mail PT. Sajang Heulang.

Examples of recording people’s aspirations and response / follow-up by companies are:

Lending Application Heavy Equipment of the Bonati village Chief to the management of PT. SHE for the improvement of


ASSESSMENT REPORT


sports facilities (soccer field), Number 474/020/KESRA/2012 letter.

The response to the request of the Heavy Equipment Lending Bonati Village Chief (Number Letter: S474/020/KESRA/2012)

to the management of PT. SHE for the improvement of sports facilities (soccer field). Number PBE-ext/233/II/2012/s

response letter, dated February 3, 2012.

Unit Manager is the staff which responsible for the implementation of communication and consultation, with communities around

the plantation area.

Full Compliance

6.3

There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented

and accepted by all parties.

The management of PT. SHE has had complaints management mechanism of the parties, the mechanism described in the

Acceptance Procedure Information (AI 6900). These procedures explain the procedures for receiving and responding to

complaints from the parties, including procedures and scheduling for the settlement. Mechanism has been introduced to the

parties, at gatherings with village leaders and local communities. For example during a meeting with the village of Tiberao

Panjang April 22, 2012, related to settlement of land claims by the public, also described receiving information about the

mechanism. Available List of Participants Attending. Based on incoming mail records on PT. Sajang Heulang, have not found any

complaints / objections that go into management.

SHE has a procedure that Occupational Land Acquisition Procedures regarding dispute resolution, Policy Number: 344/PSD-

OKUP/10, September 2, 2010. The procedure described in several stages, among others: 1). Before being implemented payment

for land acquisition, it must first be created Minutes of Negotiation, 2). Compensation payment process should be seen / known

by the parties (for example the Head of Sub District and Village Heads, etc.), 3). Land acquisition fund payments made after the

documents (Minutes of Joint Agreement, Waiver of Land Letter, Statement, Receipt Statement, Summary of Torts, Torts Map)

signed by the holders of land rights (land acquisition payee), company representatives, Head of Sub district / Land deed officer,

the village head and / or local neighborhood

Full Compliance

6.4

Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented

system that enables indigenous peoples, local communities and other stakeholders to express their views through their

own representative institutions.

SHE has the Occupational Land Acquisition Procedures, Policy Number: 344/PSD-OKUP/10, September 2, 2010. The procedure

described in several stages, among others: 1). Before being implemented payment for land acquisition, first it must be created

Minutes of Negotiation, 2). Compensation payment process should be seen / known by the parties (for example the Head of

District and Village Heads, etc.), 3). Land acquisition fund payments made after the documents (Minutes of Joint Agreement,

Waiver of Land Letter, Statement, Receipt Statement, Summary of Torts, Torts Map) signed by the holders of land rights (land

acquisition payee), company representatives, Head of sub district / Land deed officer, the village head and / or local

neighborhood.

There are examples of recording the settlement of land acquisition Land Claims Payment Report Public Land Acquisition &

Occupational Completion Report on the PT. SHE Mustika Estate and Bonati Estate.

Example Completion of land acquisition on behalf of the Suryani from Setarap village, sub district Satui, distric Tanah Bumbu.

Available documents in the form:

Minutes of Council land claim settlement date of June 24, 2010, signed by the parties (owner of land, the village chief, and

head of the hamlet, Community Leaders, Company Parties and witnesses of Community Leaders, Police, Babinsa).

Letter of Release of Land Rights on behalf of the Suryani, dated August 11, 2010.

Receipt of payment for the land area of 41 hectares, the amount of Rp. 60 million, on August 11, 2010

Landowner’s resident identity card.


ASSESSMENT REPORT


Map of field site

Full Compliance

6.5

Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum

standards and are sufficient to provide decent living wages.

The Company has committed to provide the wage determination in accordance with the Minimum Wage in 2012 plantation sector

in accordance with the Governor of South Kalimantan Decree Number 188.44/0630/KUM/2011 dated December 28, 2011

amounting to Rp. 1,250,000. Based on documents reviewed and the results of public consultation with the Kotabaru Social,

Labour and Transmigration District Agency stated that the wages paid by the company in accordance with related regulations.

SHE has the 2010-2012 Agreement between the PT Anugrah Sumber Makmur and PT Minamas Gemilang with unions, for staff

and non staff workers, consisting of chapter XI. Chapter 1 General, Chapter 2 Rights and Obligations of employers and workers,

a bipartite forum section 3, chapter 4 of employment, chapter 5 working time, chapter 6 of work regulation, work discipline, as

well as acts and offenses, Chapter 7 days off and breaks, chapter 8 wages, chapter 9 protection and welfare, chapter 10 dispute

resolution procedures and termination of employment, chapter 11 of closing provision.

Company regulation status between PT SHE with employee there is a memorandum from HRM GM to the Director of, SHE,

number SHE 364/HRM-I3/IV/2012 19 April 2012, regarding the signing of company regulation, the HRM has examined the entire

draft new corporate regulations period 2012-2014, and no record of editorial changes, however there is no evidence that the

company regulation draft has been introduced to representatives of the workers / unions and get approval from the relevant

agencies.


PT SHE (Mustika Estate, Angsana Mini Estate and Pantai Bonati Mill) has been providing public facilities and equipment for

employees, such as shelter, clean water, electricity, places of worship, clinics and vehicle facilities for school children.

In terms of relationships with contractors, SHE required the contractor to comply with labour and OHS regulations, as outlined in

the Agreement Letter. The Company also has a mechanism to evaluate contractor performance. Based on field interviews with

one of the drivers of FFB transport contractors, stated that he received a salary in a month at least higher than province minimum

wage regulation.

Major 6.5.2 Non-Conformance see CAR.2012.07

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.

SHE has a policy related to workers freedom of association, consists of 6 points. Stated in the Guidelines for Sustainable

Plantation Management related social policy point 5 that the company is expected to respect the rights of all employees circuitry

form and join trade unions of their choice and negotiate together. No policy 724/TQEM-SPMS/09 DATE 08/27/2010 PAGE 13 of

31 pages, as part of the Memorandum of the Chief Executive Officer dated 8 November 2010, the number M-036/CEO/XI/2010,

regarding the establishment of Plantation Management Guidelines for sustainability. There is also a 2010-2012 Agreement

between the management of PT Minamas with staff and non staff.

Evidence of the implementation of the policy, there are documents such as: document composition of trade union officials

Mustika Estate and the Pantai Bonati Estate and meeting attendance list for the level of supervision on April 16, 2012 that

discussed the public facilities in employee housing and other social problems.

Full Compliance


ASSESSMENT REPORT


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.

Recent documents related to Social Policy, point 6 describe Plantation Upstream Indonesia does not take advantage of labour

under (children) also Chapter IV, General Information, point 4.5.3, page 20 of 31. On Economic Activity, states: Management unit

must not employ underage labour (children). See indicator 6.6.1.

SHE has employee data base for each division, from traction, office employees, up to field employees. Based on documents

employee data base observations of SHE up to April 2012, there are no employees under 18 years old worked.

Full Compliance

6.8

Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union

membership, political affiliation, or age, is prohibited.

The organization has a documented policy that gives equal treatment without discrimination to all employees. The policy

contained in the document Guidelines for Sustainable Plantation Management Number 724/TQEM-SPMS/09 Policy. Page 13,

principle 1 and principle 5. Principle 1, which reads: All the staff / employees should be treated reasonably and fairly in matters

relating to recruitment, advancement, conditions and job description, regardless of race, degree, ethnicity, gender, skin color

imperfections (defects ), sexual orientation, membership organizations, political views, religion and age. Principle 5, which reads:

companies are expected to respect the rights of all employees to form and join trade unions in the community of their choice and

negotiate jointly.

There is evidence of documentation of the proposed increase for employees class of PT SHE 2011 in which to load data for the

promotion of employees, both men and women, who come from different parts.

Full Compliance

6.9

Policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive

rights is developed and applied.

SHE has a policy of protection of women (Mustika, Pantai Bonati estate, Angsana Mini mill), contains a commitment to become

the company responsible for protecting workers from sexual harassment of women, to realize this commitment there are 5 points,

the prevention of sexual harassment in order to provide security and safety of female employee, giving punishment to the

perpetrators of sexual harassment. MTE signed by EM, EM. PBE, Mill Manager of AMF on April 1, 2010. This policy is also stated

in the Guidelines for Sustainable Plantation Management, page 13 of 31 pages, related to social policy, point 4, which reads:

develop and implement policies to protect women workers from sexual harassment and crime and protect the rights of women

relating to reproductive.

SHE has a policy regarding the protection of reproductive rights of women consisting of 6 points of policy, at point 2. Any woman

employee who became pregnant will be given a decent job placement and still be employed until the age of 8 months of

pregnancy, and further provided maternity leave for 45 calendar days before and 45 calendar days after childbirth. Points 3 each

female employee who worked in the field and experience it will be given a rest period menstruation for a maximum of 2

consecutive days each month. Points 4, each female employee who worked in the field or at the office after having birth, they

have opportunity to breastfeed her child in working time up to the age of 3 months. Points 5, each female employees who are

pregnant or breastfeeding, given a decent job and not allowed to work in jobs that use chemicals or fertilizers, which was signed

by the MTE EM, EM and FM AMF PBE

SHE has a Gender Committee that was formed on April 29, 2010 to Mustika Estate, the general chairman: Sartini,

Husniaturrahmah Secretary, Head of Division 1 (Rifdah), Chairman of the Regional Division II (Ni Luh Sri Utami) , Chairman of

the division 3 (husniaturahmah), chairman of the division 4 (husnul hatimah).


ASSESSMENT REPORT


There is document of pantai Bonati Estate gender committee meeting program 2010-2011, and 2011-2012 gender committee

meeting program, which was last meeting held in February 15, 2012. Examples of the implementation of other recordings that

document the existence of PT SHE, Mustika Estate, from Division II to the Estate Assistant Manager, dated 20/10/2008

3/MSE/II/V/08 number, containing the transfer of employment of pregnant and breastfeeding women in the name of yanti, age 35

years, from spray to light work teams that are not associated with agrochemical, the transfer became pregnant to breastfeed

based on the recommendation of the health medical officer, and known by the Assistant Division II.

Full Compliance

6.10

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

FFB prices are set each month by the Province Agriculture Agency with the involvement of the parties (stakeholders),

representatives of smallholders, representatives of the SHE and representatives of the Government concerned. FFB pricing

results shall be announced publicly through the village cooperative unit, the SHE, as well as the Village Office. FFB Price List

Available In March 2012 in the form of a matrix, which contains information about the price of CPO by age of planting, and others.

FFB payments to smallholders after the sale is completed in the previous month are computed. This happens because the length

of the calculation process should be done as well as the distribution of main village cooperative unit to each group of

smallholders, however it never caused problems among the smallholders, they can understand the administrative process that

must be passed.

There are also examples of evidence of contracts and payment by PT. SHE to local contractors. Examples of such documents in

the form:

1. Employment Agreement Letter Number MTE/SPK-LKI/XII/2011/040-BC, dated January 13, 2012 between the management

of PT. SHE with Rudianto (Local Contractors) for build Box Culvert Bridge. Outlined in the document about:

Plan budget

Occupational Health and Safety

The payment system

2. Wholesale price Local SPK provision.

3. Minutes of Examination and Payments, dated January 13, 2012.

4. Minutes of Examination Works, dated January 13, 2012.

5. Details of Payment Cuts, dated January 13, 2012.

6. Official Handover Work Results on January 13, 2012.

Full Compliance

6.11

Growers and millers contribute to local sustainable development wherever appropriate.

Available documentary evidence related contributions PT. SHE on regional development, such as:

Recapitulation of funds for the implementation of CSR in 2011, total: 81,022,636

Payment of Land and Building Tax (PBB) in 2011 paid by PT. SHE through BRI Branch Batu Licin, Rp. 1,384,365.760, dated

September 23, 2011.

Summary of payments to local contractors from July 2011 - March 2012, total .4,470,089,362

Available CSR Budget 2012/2013 PT. SHE, total: Rp. 516,014,200

Full Compliance

PRINCIPLE # 7 Responsible development of new plantings

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.


ASSESSMENT REPORT


There is no land clearing in the area of PT. Sajang Heulang.

Type of document that describes the social impact of the activities of the PT. Sajang Heulang:

1. Document Environmental Impact Assessment (ANDAL) in 2000 (page VI .11 - 17). The collection datas’ of socioeconomic,

culture and health conducted through interviews with community and immigrant communities.

2. The study report documents the Social Impact of Plantations Management PT. Sajang Heulang by Pollito in 2010. Appendix

document available the names of the parties involved in the socialization of Social Impact Assessment Results 2010 in Book

Visum contains the signature and stamp.

RKL and RPL Implementation Reports PT. Sajang Heulang been routinely reported to the relevant agencies. Available

Implementation Report RKL and RPL PT. Sajang Heulang, Period January-June 2011 and the Period July to December 2011.

Available RKL and RPL receipt Reports PT. SHE to Environment Bodies of District Tanah Bumbu, dated May 1, 2012.

Full Compliance

7.2

Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the

results are incorporated into plans and operations.

The Company has recorded the suitability of the land as outlined in the document Review and Results Survey of Semi Detailed

Soil Final Report (2006) issued by the Department of Research Minamas Plantation which includes all PT.SHE area. The map is

clear that the planting area has a land suitability as:

The results of Semi detailed soil surveys classify the types of soil in the Angsana plantation into 1 ordo, the Oxisol. Furthermore

each order is classified and obtained two further series of land, namely: MM-18 Petroerricc Hapludox and Plinthic Hapludox MM-

19. Spread each soil series is poured into the Land Unit Map (SPT). Then from the second SPT is combined with the topography

of the land and obtained 3 Land Units Map (SPL). SPL-1 and MM-18 soil series have a 8-15% slope area of 1855 Ha (as in block

AO-35, AO-33, AO-30, AO-25, AO-36); SPL-2 with a series of land MM -18 has a 15-20% slope area of 389 Ha (as in block AO-

26, A-17, C-18, C-26, C-36, D-36, D-39) and SPL-3 with a series of land M-19 has a 0-8% slope area of 903 Ha (as in block D-

33, D-27, D-21, C-14, A-14, AO-15).

The results of semi detailed soil surveys classify the types of soil in the Gunung Sari plantation became 1 ordo, the Oxisol.

Furthermore each order is classified and obtained two further series of land, namely: MM-18 Petroerricc Hapludox and Plinthic

Hapludox MM-19. Spread each soil series is poured into the Land Unit Map (SPT). Then from the second SPT is combined with

the topography of the land and obtained 3 Land Units Map (SPL). SPL-1 with a series of MM-18 land area of 1987 ha / 77.2% (as

in block E-41, F-41, E-23, D-19, D-14, G-18, I-20, I -22, G-23, F-24, F-33); SPL-2 with a series of MM-19 land area of 586 ha /

22.8% (as in block D-13, C-13, D-09, E -06, F-05 G-04, G-08, E-10)

Available area Statement maps that clearly illustrate the pattern of land use by companies, namely: the distribution of staple crop

area based on year planted, facilities.

Results superimpose a map of Area Statement with Soil Suitability Map, it is evident that all the main plant area is located on land

that has the category of "appropriate" to plant oil palml.

Full 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.

Based on the identification and the Map of Potential HCV PT. Sajang Heulang, there HCV 1 and 4, 6 in the area of the PT. SHE.

For example Bekarangan River in Division IV Block F.32 has been designated as areas of HCV-1 & 4 and the management

action taken is:

Installation of HCV signs locations

Marking the limit on the riparian area on the main oil

The planting of certain tree species in the area of HCV.


ASSESSMENT REPORT


Based on the results of field checks at several locations that have been designated as areas of HCV, for example in the area of

HCV 1 & 4 Block divisi IV, H25 - H27, Block I 29 - I 35 and Division II Block C25 - C26, efforts have been made in the form of

signpost installation location, marking the limit, do not call for the use of the activity of chemicals at the relevant site.

Management of PT. SHE through the Public Service Department has filed a draft application to get maps of South Kalimantan

RTRWP by letter Number 238 / L & ASD-Bjb/MGG/X/2010, dated October 14, 2010, and was answered by the Planning Board of

South Kalimantan Province by letter Number 650/458/ITR/Bappeda, dated October 20, 2010 that the draft maps RTRWP South

Kalimantan are still in the process of settlement.

Based on the Map of Potential HCV-1 & 4 Area of plantation PT. SHE and Area Map Statement of PT. SHE Year 2011/2012 did

not reveal any new plantings in HCV location.

Based on information from the management of PT. Sajang Heulang, there will be no new investment in the area of PT. SHE.

Full Compliance

7.4

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

In there is a map of land suitability for SHE such Pantai Bonati estate is described as marginal land areas that have high levels of

compliance S3 (less fit / moderately Suitable) covering an area of 794 Ha (such as block P-18, P-19, N-19, N -10, N-11, L-3, O-

22, O-23, Ø25, O-23) and in Mustika estate described as marginal land areas that have high levels of compliance S3 (less fit /

moderately suitable) covering an area of 3314 ha (such as block D-08, C-09, C-26, C-30, B-27, B-36, F-32, F-33, F-34, J-22, I-

22,I-35 , G-33, D-31) and note that there is a land of gold mined in Mustika estate is categorized as an area that is not suitable

for oil palm plantation area of 190 ha.

SHE has had a management strategy for the area with a certain slope:

Reducing erosion and surface runoff by maintaining vegetation by selective weeding, terracing of individuals, the placement

of midrib forming a U (U shape Frond stacking) in each estate and the planting of the Vetiver grass at Mustika estate.

Preparation of sylvite to hold water and prevent erosion has been done in Mustika estate.

SHE has also been monitoring the erosion rate as evidence of efforts in controlling soil erosion and degradation has been

effective SOP (Number Policy II-04/MRC-SOP/10) on erosion control in accordance with applicable regulations (PP # 150 of

2000) . These monitoring activities carried out by using the method of measuring soil erosion ”Pole Erosion” stilt mounted at

some sample point and measured period January to March 2012 as the SHE block (O-24, O-25, O-27, dan Q-25) each

point presents a particular slope according to field conditions (eg: 16%, 6%, 25%, 32%, 30%) the measurement results

shows of 1-4 mm soil erosion.

Full 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.

There is no land clearing plantations in the area of PT. Sajang Heulang. Socialization processes related to the opening of the

plantation has been carried out during the initial opening, it can be proved by:

1. Document Environmental Impact Assessment (EIA) in 2000 (page VI .11 - 17). The collection data’s of socioeconomic,

culture and health conducted through interviews with community and immigrant communities.

2. The study report documents the Social Impact of Oil Palm Plantations Management PT. Sajang Heulang by Pollito in 2010.

Appendix document available the names of the parties involved in the socialization of Social Impact Assessment Results

2010 in Book Visum contains the signature and stamp.

Full Compliance

7.6

Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior


ASSESSMENT REPORT


and informed consent and negotiated agreements.

The management of PT. SHE has the Occupational Land Acquisition Procedures, Policy Number: 344/PSD-OKUP/10,

September 2, 2010. The procedure described in several stages, among others: 1). Before being implemented payment for land

acquisition, it must first be created Minutes of Negotiation, 2). Compensation payment process should be seen / known by the

parties (for example the Head of District and Village Heads, etc.), 3). Land acquisition fund payments made after the documents

(Minutes of Joint Agreement, Waiver Land Letter, Statement, Receipt Statement, Summary of Torts, Torts Map) signed by the

holders of land rights (land acquisition payee), company representatives, Head of Sub district /Land deed officer, the village head

and / or local neighborhood.

SHE has a document-by-case negotiation of land claims by communities that occur in the work area companies, such as: Map

locations of claims, submission of Land Records - Land arrangement, delivery of the claimant to the company; map the location

of the claim, and no Statement there is a conflict - which contains a statement of the claim that after the deposit of the land, no

claim anymore.

Example: The completion of land acquisition on behalf of Suryani from the Village Setarap, Satui Sub district, Tanah Bumbu

district. Available documents in the form:

Minutes of Council land claim settlement date of June 24, 2010, signed by the parties (owner of land, the village chief, head

of the hamlet, Community Leaders, Company Parties and witnesses of community leaders, police, Babinsa).

Waiver letter of Land Rights on behalf of the Suryani, dated August 11, 2010.

Receipt of payment for the land area of 41 hectares, the amount of Rp. 60 million, on 11 August 2010

Landowner’s resident identity card.

Map of field site

Full Compliance

7.7

Use of fire in the preparation of new plantings is avoided other than in specific situations, as identified in the ASEAN

guidelines or other regional best practice.

SHE has a policy of zero burning (land clearing without burning) as outlined in the Procedure of Land Preparation, Section 3 SOP

Policy Number 110/EST-ARM/08. This policy is reinforced by the Memorandum HPO (Head Plantation Operations) Number

POD-UM-0065/VI/2008 about Dry Season Anticipation and preparation to fire hazard, and the Memorandum of Head Plantation

Operations Date July 12, 2010 number: POD-UM-150/VII / 2010, Subject: Dry Season Anticipation and Preparation to Fire

hazard 2010, emphasizing the range of operational units (estate and mill), number 9. Implementation of the Land Clearing must

pay attention to the Zero Burning Policy, to the supervision of the contractor and the work of clearing the field must be properly

addressed.

SHE has a policy of zero burning (land clearing without burning) as outlined in the Procedure of Land Preparation, Section 3 SOP

Policy Number 110/EST-ARM/08. Also reinforced by the Head Plantation Operation Memorandum of July 12, 2010 POD-UM-

150/VII/2010 numbers. The Company has a Special Fire Monitoring report for the month of March 2012 related to reports of fire

within and outside the plantation, for the month of March 2012 at Angsana Estate there are no fires. There is also evidence that

simulated fire training was held on March 12, 2012 in Block A027 Angsana Estate Division 1, which was also attended by

participants from PT SHE. During the visits to the block are still visible remnants of the training activities.

Full Compliance

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.

SHE has a monitoring and implementation of action plans in the estate and mill activities as stated in the document RKL / RPL


ASSESSMENT REPORT


period July-December 2011 and there is also a continuous improvement plan contained in the visit of Plantation and Mill Advisor

explaining the plan to reduce or mitigate negative impacts that identified , such as:

Soil and water conservation by making silt pits on the block, road side drain, planting beneficial plant and the U-shape front

stacking.

Water efficiency with use of condensate water as the water delution to press with a pumping station and conducted

screening.

Efficiency of utilization of turbine cooling water is returned to the water treatment system for reuse in the processing.

Making safety warning signs board in work.

Reduction of solid waste previously stored in the form of shells for sale will be used entirely as a boiler fuel for processing

activities in the mill.

Preparation of embankment (bund) at the end of the pond of waste applications within the block (flatbed) to avoid spills and

polluted out the Application Land area full time due to rain.

Making a place to put diesel fuel with a cemented (concrete) in the generator warehouse that will avoid contamination

directly into the ground

Maintain health in the workplace to conduct medical check-ups to all employees annually

Provide contract procurement opportunities and transport services to local communities to improve the local economy.

Management and monitoring of air quality and noise continuously performed every 6 months in collaboration with relevant

agencies.

Perform planting tree species that is capable of capturing water in the river at the riparian area PT.SHE to make re-location

as an area of HCV

There is a document RSPO Internal Audit Report PT.SHE related principles and criteria of RSPO recent assessment conducted

by the ESH Manager region Kal / Sul on December 21 to 22, 2011 which describes 35 findings of non conformance and already

repaired in settlement process such as evaluation on result of noise intensity test have been conducted. P&C RSPO

Internal audit programmed at least once a year

Full Compliance


ASSESSMENT REPORT


3.2. Summary of Assessment Report of Supply Chain

Clause CPO Mills Mass Balance Model Requirements

1 Documented Procedures

1.1

The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified

in these requirements. This shall include at minimum the following:

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

b) The name of the person having overall responsibility for and authority over the implementation of these requirements

and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the facilities

procedures for the implementation of this standard.

a) SOP Angsana Mini Mill PT.SHE refer to the Technical Guidelines for Palm Oil Mill 1, 2 and administration of the

appropriate Memorandum of Head Plantation Operation Number POD-UM-154/VII/2010 on July 26, 2010, among

others, which contain: Acceptance of FFB Number 110/POD-FAC/07, Boiling (sterilization) Number 110/POD-FAC/07,

striping Number 110/POD-FAC/07, Stirring (digesting) Number 110/POD-FAC/07, compression (pressing) Number

110/POD-FAC/07, Purification (clarification) Number 110/POD-FAC/07, No Separation of Seed and Fiber. 110/POD-

FAC/07, No Kernel station. 110/POD-FAC/07, No Palm Oil Stockpiling. 110/POD-FAC/07.Angsana Mill has SOP Product

Identification and Traceability Products in Plantation VFD Minamas Number 501/SHE-AMF-03/12 passed on October

20, 2011 by the Mill Manager and the estate manager.

b) Personnel responsible for implementation of these requirements include:

- Manager of Angsana Mini Mill store and maintain all documents and records of the use of all raw materials,

supporting materials used in the production process and end product quality.

- Plantation Sustainable Quality Management (PSQM) assistant checking the quality of FFB at POM and make daily

recapitulation.

- Assistant Laboratory analysis and quality testing of raw materials and products in all stages of the production

process Manggala POM.

- Assistant / Senior Assistant / Manager Bulking responsible for the transportation of products from CPO and PKO

from POM to bulking station.

Full Compliance

1.2

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

Angsana Mini POM PT.SHE currently has not own procedures in receiving and processing the documentation of FFB to

separate the products certified and not certified RSPO.

Non Conformance see CAR.2012.08

2 Purchasing and goods in

2.1

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

Angsana Mini Mill PT.SHE has a document and a computerized program for the reception of FFB such as:

1. SPB FFB delivery Letter and weigh ticket that explains weigh tickets number, SPB serial number, origin of FFB,

transport, harvest date, FFB pieces whirl, year of planting, block, bunch number, tonnage, vehicle number, the date of

delivery.

2. SIME-weight program for the information receiving FFB, CPO, Kernel, and other products

3. Mill Acceptance reports that describe the product is received, the date of receipt, supply base, vehicle number, driver,

FFB Delivery ticket, weigh ticket, date sent, weigh, enter and exit time, gross weight, weigh out, net weight. Plantation


ASSESSMENT REPORT


code (such as Angsana estate / E424, Gunung Sari estate / E425, Bonati Coast / E437, cooperative credit scheme 1 /

E485, cooperative credit scheme 4 / E488, cooperative credit scheme 5 / E489)

4. FFBGS Program (Fresh Fruit Bunch Grading System) which describes the quality of FFB that goes into the mill based

on the grading and to inform FFB (FFB quality, determination of CPO and kernel production per Plantation suppliers),

however the Angsana Mini Mill PT.SHE documents have not been able to show the separation acceptance for FFB

certified and noncertified RSPO.


2.2

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

Angsana Mini POM PT.SHE can recognize and claim the products are certified for a year to 33 314 tonnes of CPO products

and 6,246 tonnes of Palm Kernel for the period July 6, 2011 until July 5, 2012.

When the surveillance audit carried out a total of CPO and Kernel generated by the Angsana Mini POM since July

6, 2011 until April 29, 2012 the CPO at 23,703 tonnes and 4,923 tonnes of Palm Kernel

Up to this moment when surveillance audit for production of CPO and kernel that can be claimed as a certified

product Angsana Mini POM has not exceeded the projected, however the organization is committed to providing information

to Mutuagung Lestari if there is excess production has been projected.

Full Compliance

3 Record keeping

3.1

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

requirements.

The entire recording and reporting has been created and stored in full by the company. Storage system in the form of soft

copy documents in the program System Application Program (SAP), Sime-Weight Programmed for weighing FFB, CPO and

Palm Kernel, FFBGS (Fresh Fruit Bunch Grading System) to determine the quality of FFB to be processed, while the

documents in hard copy form (print out) stored in the administration of Angsana Mini POM.

Full Compliance

3.2

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

Angsana Mini Mill PT.SHE has set a minimum of retention time for 5 years and showed the tapes associated with the

recording of receipt FFB, keeping oil in the storage tank such as daily reports, data entry and processing FFB, mill utilization,

quality results and the capacity of CPO and kernel, quality oil in storage tanks, CPO and kernel data delivery (delivery Order)

and Process Control Report document set 5 years. For example:

1. FFB delivery letter and weighing ticket dated February 14, 2007 from Angsana estate, block A-31 as many as 615

bunches.

2. Kernel Shipment letter dated March 27, 2006 which describes the contract number, net weight, dirt, supplier, product

name.

Full Compliance

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.


ASSESSMENT REPORT


(c) The facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short.

Angsana Mini POM PT.SHE has not able to show the document recording and balancing FFB for RSPO certified palm oil

shipment and Palm Kernel for every 3 months.


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.

Angsana Mini POM has shown PT.SHE Sales Contract documents

1. For CPO products with the Sales Contract Number 00106/SHE/KTR-MKS/LOK/III/2012 on March 21, 2012 which

describes the trade name of the CPO (Crude Palm Oil) with the quality of Free Fatty Acid (As palmitic) up to 5.0 %,

maximum 0.5% Maximum Moisture Impurities

2. The kernel products of Palm Oil Sales Contract Number 00085/SHE/KTR-IKS/LOK/IV/2012 on April 3, 2012 which

describes the Palm Kernel trade names, product quantity, the quality of Moisture, Impurities, dirt Sales up 16%.

Based on the observations of the document is known that the document does not explain the Sales Contract Mass Balance

model of supply chain in accordance with SOP Angsana Mini Mill and does not describe the product being sold is RSPO

certified products.


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.

Angsana Mini mill PT.SHE Palm Kernel just made a sale and not to cooperate with the manager Kernel Crushing Plant.

Full Compliance

4 Sales and goods out

4.1

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

(a) The name and address of the buyer

(b) The date on which the invoice was issued

(c) A description of the product

(d) The quantity of the product delivered

(e) Reference to related transport documentation

Angsana Mini POM ensures all invoices have been issued for shipments of palm oil contain the necessary information such

as invoice Number 00239/SHE/III/2012 for CPO products are explained:

a. Name of purchaser is PT.Hasil Prime Eternal which is located in Jal. Industry Rungkut Kalirungkut II Number 8, Rungkut

Surabaya, East Java.

b. Invoice issued on March 27, 2012

c. A description of the product is Premium of Crude Palm Oil, however does not explain the type of RSPO-certified

products.

d. The amount of product shipped 1.1 million Kg

Shipping and transport is agreed that CPO in Bulk, buyers take from specified bulking station.

Full Compliance

5 Training

5.1

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


ASSESSMENT REPORT


Chain Certification Systems.

PT.SHE has not been able to show that the training requirements relating to the implementation of Supply Chain Certification

System were conducted for all staff.


6 Claims

6.1

The facility shall only make claims regarding the use of or support of RSPO certified oil palm products that are in compliance

with the RSPO Rules for Communications and Claims.

Angsana Mini Mill PT.SHE could not able to show the use of claims to support the RSPO certified palm oil according to the

RSPO Guidelines for Communication and Claims stated in the Sales Contract, Delivery Order and Invoice.



ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use (Only apply for Surveillance Assessment Report)

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

X or√

S1 SHE has logo and certificate approval/permit number MUTU-RSPO/006.b √

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

X or√

S1 The Company does not use the logo both on-product and off-product within the scope of PT.Sajang Heulang.

√

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 Time Bound Plan Verification of the RSPO Certification

Company name :

1. KKPA (PRIMARY COOPERATIVE CREDIT for MEMBER) smallholder scheme managed by PT SAJANG

HEULANG, MINAMAS PLANTATION.

Visit date : May 2nd – 4th, 2012

2.1

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

X or√

KKPA SHE have shown some compliance requirement applicable laws and related.

KKPA SHE has recorded document data list consists of 65 Laws and regulations.

Evaluation of the implementation of the compliance mechanism applicable legal requirements and

relevant, contained in Legal Requirements SOP PT.Sajang Heulang (KKPA) Minamas Plantation

No.701/TQEM-ESH/10 by doing:

Identify and inventory requirements of the law:

- Regularly contacting government agencies and non-governmental agencies to find out

the latest regulations applicable international, national and local

- Actively visit related web site

- Up-date once every 1 year

Compliance

- Summarizing the results of the identification of related regulations and summarize into a

summary document K3LL Regulations (Occupational Health and Safety Environmental

Protection)

- Give information or related units (stakeholders) regarding the provisions applicable

regulations.

- Renewal of regulations related summary K3LL every 6 months by the company.

- Perform inspection and analysis of operational data through internal and external audit

√

2.2

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

X or√

Estate acquisition and management of the KKPA plasma scheme at 5 KKPA (Primary Members

Cooperative Credit) between PT. Sajang Heulang with Cooperative Tuwuh Sari is based on

Recommendation of the District Government Kotabaru Number: 590/1849/Tibum, dated March

18, 2000 and recommendation of the Bupati Tanah Bumbu Number 525/1023/BUN/2005 dated

December 22, 2005.

Smallholders scheme management was confirm with agreement between PT Sajang Heulang

and Tuwuh Sari Cooperative dated January 5, 2000. Total KKPA smallholders area manage was

16.000 Ha, define in to 28 villages, 4 sub districts with 8.100 members of smallholders. All the

area already in form of ownership certificate..

√

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√

Available Conflict Resolution SOP number KP.77, dated April 1, 2012 and Communication

Procedure number KP.77. All complaint and grievance can be submitted by written to

management and will record in internal and external communication logbook in KKPA 1. Based n

√


ASSESSMENT REPORT


the record was found there was no complaint and grievance from the community.

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√

Estate acquisition and management of the KKPA plasma scheme at 5 KKPA (Primary Members

Cooperative Credit) between PT. Sajang Heulang with Cooperative Tuwuh Sari is based on

Recommendation of the District Government Kotabaru Number: 590/1849/Tibum, dated March

18, 2000 and recommendation of the Bupati Tanah Bumbu Number 525/1023/BUN/2005 dated

December 22, 2005.

Smallholders scheme management was confirm with agreement between PT Sajang Heulang

and Tuwuh Sari Cooperative dated January 5, 2000. Total area manage for KKPA scheme was

16.000 Ha, define in to 28 villages, 4 sub districts with 8.100 members of smallholders. All the

area already in form of ownership certificate.

√

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√

Company conducted the oil palm cultivation after November 2005, as in the KKPA-5 estate, the

planting is done in smallholders lands, such as Planting in June 2006 in Jaya Indraloka village

area of 6 ha (1,371 plants) Block S50, 10 ha (1,386 plants) Block S51, in July 2006, 36 ha (4,918

plants) Block V49 and August 2007 32 ha (4,441 plants) Block V48. KKPA Sajang Heulang has

not conduct HCV assessment for the planting crops after November 2005.

√

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√

No new plantings in the area KKPA Sajang Heulang. Analysis of environmental and social impacts

of plantation KKPA 1-5 management integrated in the document of ANDAL year 2000 and Social

Impact Assessment report in 2010 by third party.

√

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√

No land compensation process for the entire KKPA area plantation because KKPA smallholders

land were owned by member (land status was smallholders Ownership Certificate). √


ASSESSMENT REPORT


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

During the ST2 assessment 5 (five) nonconformities were assigned against Minor Compliance Indicators. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to close all non-conformities were verified during the surveillance assessment.

3.5.1 Identification of Findings, Corrective Actions and Observations at ST-2 Assessment

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2010.10

Minor 4.4.1

Water Management. The organization has conducted water quality analysis for rivers and ground water, however there is not enough evidence to analyze the quality of water for domestic household needs in accordance with quality standards specified in the regulations.

POM &

Estate

Minor S-1 The organization must show evidence of evaluation and action towards the water quality test results to eliminate the causes of why the environmental elements of water are higher than the tolerated threshold value.

August 10, 2010. The organization has shown evidence of periodical domestic water quality test results by independent institutions. However, SHE has shown evidence of evaluation and action to eliminate the causes of why the environmental elements of water are higher than the tolerated threshold value. For example: levels of Pb and Fe from the SHE domestic test sample of May 2010. April 28, 2012. SHE has shown the evaluation of domestic water quality test results conducted on February 28, 2012 on a periodic basis by an independent agency and SHE management makes circular letter to employees that domestic water is to be done further processing before consumption.

Closed April 28, 2012


ASSESSMENT REPORT


CAR No



Closing Date

2010.39

Major 2.2.3

Records of conflict resolution - The organization has provided the records of land claims cases resolution which clearly gives information of the claimants, land area, land location, and current status. However, there is insufficient evidence that the progress of the planned settlement has been accepted by the parties.

Estate Minor S-1 The organization must show evidence that the progress mechanism of the land claim settlement that would be done was accepted by all parties. For example: for the conflict resolution progress Tiberao Panjang and Pacakan Village community.

April 28, 2012. SHE has shown the documents recording land claim settlement in May 6, 2009 as an example in the village of Tiberao Panjang containing statements by the landlord and known by village head in its completion and facilitated by Tanah Bumbu Regional Parliament.


2010.42

Minor 4.7.7

First Aid Trained Personnel - There was not enough evidence that SHE had carried out P3K training for employees, both for the plantation and mill.

POM &

Estate

Minor S-1 The organization must realize the First Aid training program for employees.

April 28, 2012. The workers who have received first aid training simulations on March 30, 2012 at Sports House Angsana estate undertaken by a company doctor and was followed by 75 workers (foremen, teachers, employees, staff) of the Pantai Bonati estate, Mustika estate and Angsana Mini POM. The training explains the basic knowledge of handling first aid kit, simulation of first aid (burns, animal bites, fainting, drowning victims, exposed to sharp weapon injuries, broken bones wounds) and discussion.


2010.43

Minor 4.7.8

Evaluation of work accidents - There are records Periodical evaluation results and action measures were taken to prevent the occurrence of the same type of work accidents. However, there is insufficient evidence that action were based on the problems causing the

Estate Minor S-1 The organization must be able to show evidence that the preventive action against repetition of the same work accident has been based on the results of problem identification.

April 28, 2012. SHE has been to identify root causes and handling of the occupational accidents prevention such as PPE fulfillment monitoring, especially worker safety shoes and training how to harvest and place the midrib properly as in Division I Mustika estate, which was



ASSESSMENT REPORT


CAR No



Closing Date

accident. Thus, the same type of accidents still happened. For example, thorn in palm the SHE 2010: January (2 cases), February (2 cases), April (4 cases), May (3 cases), June (1 case).

attended by harvesting workers. Based on data from occupational injuries SHE showed a decrease in the number of work accidents palm thorn from the period January 2011-March 2012.

2010.46

Minor 6.1.3

Social impact monitoring and management report - SHE has made RKL/RPL implementation reports until the period of January -June 2010. However, the social impact parameters were not yet measurable.

POM &

Estate

Minor S1 SHE must present the social impact monitoring report with measurable parameters written in the RKL/RPL Implementation Report.

April 30, 2012. Social Impact Study results are known, such as open work access in the estate have been able to improve the welfare of the villagers who were working at SHE and currently has formed cooperatives Tuwuh Sari consisting of 8100 members and improved public perception of the existence of PT SHE with the KKPA program has been integrated in the RKL/RPL report.


3.5.2 Identification of Findings, Corrective Actions and Observations at Surveillance-1 Assessment

During the first Surveillance assessment 4 (four) nonconformities were assigned against Major Compliance indicators, 12 (twelve) nonconformities were assigned against Minor Compliance Indicators and 8 (eight) opportunity for improvements were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to close all non-conformities shall be verified during next surveillance assessment.

CAR No



Closing Date

CAR Minor Soil survey. Estate Minor S2 Open


ASSESSMENT REPORT


CAR No



Closing Date

2012.01

4.2.1 SHE has conducted semi-detailed soil survey in 2006, however through 2012 semi detailed soil surveys to support the are planned every 5 years has not been done by SHE

CAR 2012.

02

Minor 4.7.2

Periodic checks of workers at high risk. Based on the observations of the document is known that periodic medical examinations to workers, especially workers who are at high risk such as the station operator, chemical sprayers, B3 and fertilizer warehouse officer not exceeding one year in accordance with the PT.SHE health checks plan and do not correspond with the Minister of Manpower regulation 2 of 1980 on labor health check.

POM and

Estate

Minor S2 Open

CAR 2012.

03

Minor 4.7.6

First aid equipment. Based on field check to Angsana Mini POM has not been carried out routine checks on the completeness of the first aid kit box contents.

POM Minor S2 Open

CAR 2012.

04

Minor 5.3.1

Hazardous material waste handling. Based on field dheck to Angsana Mini POM found used oil spills outside the hazardous material waste warehouse location directly spills to ground and hazardous symbol are not in

POM Minor S2 Open


ASSESSMENT REPORT


CAR No



Closing Date

accordance with Kep Bapedal (environment impact management body decree) number 5 year 1995 regarding Hazardous label and symbpol.

CAR 2012.

05

Minor 5.5.1

Land fire extinguishing facilities. Based on field check to Pantai Bontai workshop found the water pump facility for land fire handling in not functioning condition.

Estate Minor S2 Open

CAR 2012.

06

Major 5.6.2

Emission quality monitoring. SHE has not carried out the quality of motor vehicle emissions monitoring in the Estate and Mill in accordance with the Environmental Ministry Regulation Number 5 year 2006 on Threshold for vehicle exhaust emissions.

Estate and POM

Major 60 days

SHE has conducted monitoring and evaluation of emissions contained in the document Summary of Motor Vehicle Emissions Test Results on May 26, 2012 to PT. Sajang Heulang, Angsana Mini POM and Mustika estate for 26 units conducted emissions testing of vehicles.

Based on evidence of motor vehicle emissions test results given SHE has complied with standard. (Will be observe at next surveillance audit)

Closed June 3, 2012

CAR 2012.

07

Major 6.5.2

Company regulations. SHE already has a regulation that has been agreed by SHE management and employee representatives, however has not been registered to the relevant agencies

Mill and

Estate

Major 60 days

SHE has shown evidence of company regulation handover approval on May 28, 2012 to the Social Labour and Transmigration Agency Tanah Bumbu District, South Kalimantan.

Based on evidence of Company Regulation that have been submitted and approve from the relevant agency SHE has been complied with the standard.

Closed June 3, 2012

CAR 2012.

08

SC 1.2

Certified and uncertified product documentation procedure. Angsana Mini POM doesn’t have documented procedures for receiving and processing certified and non-

Mill Minor S-2 Open


ASSESSMENT REPORT


CAR No



Closing Date

certified FFBs.

CAR 2012.

09

SC 2.1

FFB received document. Angsana Mini POM has not been able to show separation documents and receipts for RSPO certified and uncertified FFB.

Mill Minor S-2 Open

CAR 2012.

10

SC 3.3

Records of FFB, CPO and Palm Kernel certified and uncertified. Angsana Mini POM has not been able to show the document recording and balancing FFB for shipment of RSPO certified palm oil and Palm Kernel for every 3 months

Mill Minor S-2 Open

CAR 2012.

11

SC 3.4

Supply chain model used. Based on the observations of the document is known that the Sales Contract document does not explain the Mass Balance model of supply chain in accordance with SOP Angsana Mini POM and not describe the product being sold is RSPO certified products.

Mill Minor S-2 Open

CAR 2012.

12

SC 5.1

Supply chain training. Angsana Mini POM mill has not been able to show that the training requirements relating to the implementation of Supply Chain Certification System were conducted for all staff.

Mill Minor S-2 Open

CAR 2012.

SC 6.1

RSPO certified claims support. Angsana Mini POM have not been

Mill Minor S2 Open


ASSESSMENT REPORT


CAR No



Closing Date

13 able to show the use of claims to support the RSPO certified palm oil according to the RSPO Guidelines for Communication and Claims, both of which are listed in the Sales Contract, Delivery Order and Invoice.

3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 Minor 2.1.1

SHE may improve and update laws and regulations that apply each year, according to the compliance evaluation mechanism with relevant and applicable legal requirements, which has been set.

2 Major 2.2.1

SHE can improve the company operational map, based on the layout and area plan map (RTRWP from the government) as supporting evidence of plantation area

3 Major 2.2.3 Management Unit PT. SHE to follow up the process of resolving the status of the land in Waringin Tunggal village and Tiberao Panjang village.

4 Minor 4.3.3

SHE may improve to review the record of road maintenance plan and the realization such as a cost repair, location of work.

5 Major 4.5.1

SHE may improve the information of IPM program work volume on the planting of beneficial plant.

6 Minor 4.6.1

SHE may evaluate the handling of chemicals categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions are still stored.

7 Minor 6.1.3

SHE may integrate the results of social impact evaluations in the next period report of RKL / RPL.

8 Minor 7.1.2 SHE may integrate the results of social impact evaluations in the next period report of RKL / RPL.


ASSESSMENT REPORT


3.5.4 Noteworthy Positive Components

No Ref Std Descriptions

1 Major 6.5.1

SHE implements the minimum wage higher than government regulation to all workers.

2 Minor 6.5.1

SHE has provided adequate facilities for employees (housing, school bus, education building, health facilities etc....)

3 6.11 SHE provides a scholarship program opportunity through Minamas Plantation to high school students around the plantation and through the smallholder scheme (KKPA) program of 16,000 Ha.


ASSESSMENT REPORT


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

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

Forestry and Plantation Agencies of Tanah Bumbu District.

Forestry and Plantation Agencies of Tanah Bumbu District has conducted the

plantation level assessment for SHE period of 2011 with the title of 3rd level

estate. The next plantation level assessment of SHE is planned in May 2012.

SHE has been regularly providing plantation business development report (LPUP) per 6 months, only for the 2nd semester report is still not on time delivery. Examples for LPUP 2nd semester, 2012 handed over in February 2012.

Coordinated with the Minamas Plantation Service

Department for reporting of subsequent reports will be timely

received by the Department of Plantation.

Reports to relevant agencies should

be reported according to the rules

(regular and timely manner).

Social, Labor and Transmigration Agency of Tanah Bumbu District.

SHE has provided OHS Guidance Committee reporting per 3 months. The

Company also has demonstrated a commitment to the fulfillment of the rights of

workers, such as appropriate remuneration for minimum wage Rp 1,250,000

per month. SHE has also established and registered the organizational

structure of OHS Guidance Committee to Social, Labor and Transmigration

Agencies of Tanah Bumbu District and will inform if any changes in the

management structure of the OHS Guidance Committee.

SHE has been routinely report the employment report once a year to Social,

Labor and Transmigration Agency.

Occupational injuries has also been reported by the company no later than

2x24 hours after the accident, only to report a medical check by the company,

has never been reported, although this is not mandatory.

SHE has conducted training for employees which held on 9 to 15 April 2012 by

inviting the Social, Labor and Transmigration Agencies and PT Indosafe as

instructor.

Licensing of plantation equipment and manufacturing operations have been

met by the company, for example: boiler licensed, engine generators, tractor

Coordinated with the Department of PSD for reporting of

subsequent reports will be timely received by the Department

of Plantation.

SHE has been regularly reported

the obligate report to related

agency.


ASSESSMENT REPORT


Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

operator, heavy equipment, boiler operator etc.

Environmental agency of Tanah Bumbu District.

SHE has been reported regularly and implemented the environment management and monitoring in the company working area. SHE has been done regularly reporting such RKL/RPL report and has several

licenses for environmental management such as Land Application permit,

hazardous waste temporary warehouse licensed.

In 2010 and 2011 there were complaints from Sebamban Lama villagers related leakage of WWTP installations and based on the results of the Environment Agency Tanah Bumbu team visit were found that the pond was leaking due to overcapacity of Angsana mill WWTP by rain water, the company was asked to immediately fix the leak of the WWTP.

WWTP leakage related complaints from citizens, 3rd Commission on Tanah Bumbu Parliament consisting of 12 persons made a visit which was held on December 27, 2011 for clarification. Companies were able to show that there is no pollution. Commission will help explain to people that do not prove the existence of the grievance report.

Will be verified at filed check.

Kuranji villagers. Based on village information there were villagers works as SHE employee and

also scheme smallholders cooperative (KKPA) officer

SHE has been very help to developing village economy and open job

opportunity.

SHE will improve all the time of social responsibility to

surrounding community

Based on field observation and

interview KKPA program help the

community economy.


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:

Head of PSQM,

Mutuagung Lestari,

Minamas Plantation Lead Auditor Witnessed

Lead Auditor

Mohamad Pirabaharan Oktovianus Rusmin

Octo HPN Nainggolan

Wednesday, 22/June/2012 Wednesday, 22/June/2012

Wednesday, 22/June/2012


ASSESSMENT REPORT


Appendix 1. Peer Review Report

Name of Reviewer:

I. General comments on the evaluation

No Issues and Comments Clarification/explanation

TO BE FILLED IN BY MUTU

II. General comments on the inspection report



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




ASSESSMENT REPORT


Appendix 2. Result of RSPO Committee - RSPO Certification

No Input and Responses


ASSESSMENT REPORT


No nstitution/NGO/Community Addres Phone/Email Form of Contact

Date of Contact

1 Dinas Perkebunan dan Kehutanan Tanah Bumbu (Tanah Bumbu District of Plantation and Forestry Agency)

Jl. Dharma Praja No. 2 Gunung Tinggi

0518 – 607 6051 / 0518 – 39425 [email protected]

letter and interview

19 April 2012

2 Dinas Sosial Tenaga Kerja Tanah Bumbu (Social Labour Agency of Tanah Bumbu District)

Jl. Dharma Praja No. 4 Gunung Tinggi, Kec. Batu Licin

0518 – 71135 [email protected]

19 April 2012

3 Badan Pertanahan Nasional (National Land Agency) Tanah Bumbu District

Jl. Dharma Praja No. 4 Gunung Tinggi, Kabupaten Tanah Bumbu

19 April 2012

4 Badan Pengelolaan Lingkungan Hidup Daerah Tanah Bumbu (Environment Management Body of Tanah Bumbu District)

Jl. Transmigrasi No. 94 Km. 3,5 72271

[email protected]

19 April 2012

5 Badan Koordinasi Penanaman Modal Tanah Bumbu (Investment Coordinating Body of Tanah Bumbu District)

Jl. Transmigrasi 72271 0518 – 70664 [email protected]

19 April 2012

6 Kepala Desa Kuranji (Viilage Head) Kuranji village Interview 24 April 2012

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


ASSESSMENT REPORT


Appendix 4. Assessment Plan

DATE April 23rd , April 27th- 30th , May 3rd, 2012

PLANNED TIME ACTUAL

DURATION PROCESSES / CLAUSES TO BE AUDITED AUDITOR

23.04.2012 06.00-08.00

08.00-14.00

14.00-20.00

06.00-08.00

08.00-14.00

14.00-20.00

Travelling from Jakarta to Banjarmasin Public Consultation with Goverment & NGO’S at Tanah Bumbu District Travelling to Site

ALL TEAM

27.04.2012 08.00-08.30

08.30-12.00

12.00-14.00

14.00-17.00

08.00-08.30

08.30-12.00

12.00-13.30

13.30-17.30

Opening Meeting Document Observation & Company Respon to Public Consultation (PT SHE/Angsana Mini Mill and Supply Base)

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

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

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

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

Responsible consideration of employees and of individuals and communities affected by growers and mills (6.1; 6.2; 6.3; 6.4; 6.5)

Lunch/Pray Countinued of Document Observation (PT SHE/Angsana Mini Mill and Supply Base) in e.g.

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

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

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

Use of appropriate best practices by growers and millers (4.1; 4.2; 4.3; 4.4; 8.1; 8.2) Responsible consideration of employees and of individuals and communities affected by

growers and mills (6.1; 6.2; 6.3; 6.4; 6.5)

ALL TEAM

OCT

OR

RR

ALL TEAM

OCT

OR

RR


ASSESSMENT REPORT


DATE April 23rd , April 27th- 30th , May 3rd, 2012

PLANNED TIME ACTUAL

DURATION PROCESSES / CLAUSES TO BE AUDITED AUDITOR

28.04.2012 08.00-12.00

12.00-13.30

13.30-17.00

08.00-12.30

12.30-13.30

13.30-17.30

Documentation Observation (PT SHE/Angsana Mini Mill and Supply Base) e.g.

Use of appropriate best practices by growers and millers (4.5; 4.6; 4.7; 4.8);

Responsible development of new plantings (7.2; 7.3; 7.4)

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

Responsible development of new plantings (7.1; 7.3; 7.5; 7.7) Supply Chain verification

Responsible consideration of employees and of individuals and communities affected by growers and mills (6.6; 6.7; 6.8; 6.9; 6.10; 6.11),


Supply Chain verification Lunch/Pray Countinued of Document Observation (PT SHE/Angsana Mini Mill and Supply Base) e.g..

Use of appropriate best practices by growers and millers (4.5; 4.6; 4.7; 4.8);


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

Responsible development of new plantings (7.1; 7.3; 7.5; 7.7) Supply Chain verification

Responsible consideration of employees and of individuals and communities affected by growers and mills (6.6; 6.7; 6.8; 6.9; 6.10; 6.11),


Supply Chain verification

ALL TEAM

OCT

OR

RR

ALL TEAM

OCT

OR

RR

30.04.2012 08.00-12.00

12.00-14.00

14.00-17.00

08.00-12.00

12.00-14.00

14.00-17.00

Field Visit PT SHE (Angsana Mini Mill and Estate) Lunch & Pray Field Visit PT SHE (Angsana Mini Mill and Estate)

ALL TEAM

03.05.2012 08.00-09.00

09.00-12.30

12.30-14.00

14.00.20.00

08.00-09.00

09.00-12.30

12.30-14.00

14.00.20.00

Non Conformance Report and Clarification Closing Meeting at Angsana estate Lunch & Pray Travelling to Banjarmasin and Jakarta

ALL TEAM


ASSESSMENT REPORT


Appendix 5. Glossary

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

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

ASEAN : Association of South East Asian Nations

B3 : Bahan Beracun and Berbahaya (Hazardous Material Waste)

BKSDA : Balai Konservasi Sumberdaya Alam (Natural Resources Conservation Agency)

BOD : Biological Oxygen Demand

BPN : Badan Pertanahan Nasional (National Land Agency)

BTG : Batas Tingkat Getaran (Vibration Level Standard)

CPO : Crude Palm Oil

EFB : Empty Fruit Bunch

ESH / K3 : Environment, Safety and Health

HCV : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Hak Guna Usaha. (Land Use Permit)

HIRARC : Hazard Identification Risk Assessment and Risk Control

IUP : Izin Usaha Perkebunan. (Plantation Business License)

IPAL / WWTP : Instalasi Penyaluran Air Limbah (Wastewater Treatment Plant)

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

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

KKPA : Koperasi Kredit Primer untuk Anggota (Primary Credit Cooperatives for Members)

LSI : PT Ladang Rumpun Suburabadi

MRC : Minamas Research Centre

MTE : Mustika Estate

NAB : Nilai Ambang Batas (Noise Intensity)

OER : Oil Extraction Rate

P2K3 : Panitia Pelaksana Keselamatan and Kesehatan Kerja (Occupational Safety and Health Committee)

P&C : Principle and Criteria

PHT / IPM : Pengendalian Hama Terpadu (Integrated Pest Management)

PK : Palm Kernel

POM / PKS : Palm Oil Mill (Pabrik Kelapa Sawit)

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

PBE : Pantai Bonati Estate

PSD : Plantation Services Departement

PSQM : Plantation Sustainability and Quality Management

RSPO : Roundtable on Sustainable Palm Oil

SHE : PT Sajang Heulang

SOP : Standart Operating Procedure

SOU : Strategic Operation Unit

TBS / FFB : Tandan Buah Segar (Fresh Fruit Bunches)

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