· marwas, ibnu satria prabudi taufik margani tony arifiarachman s-1 27 apri – arifiarachman3...

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management/Owner : SIME DARBY Plantation Sdn Bhd Plantation Name : Angsana Mini POM, KKPA 1 Estate

(PT. Sajang Heulang-Minamas Plantation) Location :

Sub District of Angsana, District of Tanah Bumbu, Province of Kalimantan Selatan

Certificate Code : MUTU-RSPO/006b

Date of certificate issue : 6 July 2011

Date of expiry of certificate : 5 July 2016

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

By

ST-2 4-9 October 2010 Deni A Novendi, Heri Antoni, Muardi

Marwas, Ibnu Satria Prabudi Taufik

Margani

Tony Arifiarachman

S-1 27 Apri – 3 May 2012 Octo H.P.N Nainggolan,

Oktovianus Rusmin, Rudi Ramdani.

Taufik Margani

Tony Arifiarachman

S-2 2-3 May 2013

Octo H.P.N Nainggolan, Marsudi Eko Santoso, Moh Arif Yusni, Syarif Lambaga, Sandra

Purba

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

Assessment Submitted

to RSPO on: Approved

by RSPO on: Approved

by MUTUAGUNG LESTARI on:

S-2 26 June 2013 - 10 June 2013

http://www.mutucertification.com/


ASSESSMENT REPORT

SPO – 4006a.5 Page ii Prepared by Mutuagung Lestari for Angsana Mini POM – PT Sajang heulang

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Sajang Heulang Figure 2. Operational Map of PT Sajang Heulang

01 02

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 03

1.2 Organization Information 03

1.3 Type of Assessment 03

1.4 Location of Plantations, Mill and Area Statement 03

1.5 Description of Supply Base 04

1.6 Dates of Plantings and Cycles 05

1.7 Tonnage Certified 05

1.8 Other Certifications 05

1.9 Time-Bound Plan for Other Management Units 06

2.0 ASSESSMENT PROCESS

2.1 Certification Body 08

2.2 Assessment Team 08

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 08

2.4 Stakeholder Consultation and List of Stakeholders Contacted 10

2.5 Date of Next Surveillance Visit 11

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

12 38

3.3 Conformity Checklist of Certificate and Logo Use 43

3.4 Summary of RSPO Partial Certification 44

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

47

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 52

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 55

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 56

2. Assessment Program 57

3. Glossary 58

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 1 Prepared by Mutuagung Lestari for Angsana Mini POM – PT Sajang heulang

Figure 1. Location Map of PT Sajang Heulang

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 2 Prepared by Mutuagung Lestari for Angsana Mini POM – PT Sajang heulang

Figure 2. Operational Map of PT Sajang Heulang


ASSESSMENT REPORT

SPO – 4006a.5 Page 3 Prepared by Mutuagung Lestari for Angsana Mini POM – PT Sajang Heulang

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 RSPO Supply Chain

Certification Standard November 2011.

1.2 Organization Information

1.2.1 Company name SIME DARBY Plantation Sdn Bhd

1.2.2 Contact person Mohamad Pirabaharan

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

1.2.4 Telephone +62-21-2992650

1.2.5 Fax +62-21-5711652

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Swasta

1.2.9 Management Representative who completed the application for certification

Mohamad Pirabaharan (Head of TQEM Plantation)

1.2.10 Registered as RSPO member 1-0008-04-000-00 date of 08 September 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) and supply base from 2 (two) estates: KKPA 1 and KKPA 4.

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Angsana Mini POM Sub District of Angsana, District of Tanah Bumbu, Province of Kalimantan Selatan

030 36’ 43,7” S 1150 26’ 35,3” E

1.4.2 Location of Supply Base

Name of Supply Base Location

GPS

Latitude Longitude

KKPA 1 Sub District of Angsana, District of Tanah Bumbu, Province of Kalimantan Selatan

30 38’ 45” – 30 35’ 39” S

1150 34’ 04”-1150 38’ 11” E

1.4.3 Tenure

Private Ha

State Ha

mailto:[email protected]

http://www.simedarby.com/


ASSESSMENT REPORT


Community 4,055.32 Ha

1.4.7 Area Statement

Total area 4,055.32 Ha

Mature area 3,864 Ha

Immature area - Ha

Mill - Ha

Emplashment 11 Ha

Infrastructure 126 Ha

Nursery - Ha

Occupation - Ha

Others area Ha

HCV 54.32 Ha

1.5 Description of Supply Base

1.5.1 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 POM

15

85,885.91

19,182.3

22.33 3,770.22 4.39 - -

*Source Production Data on April 2012 – May 2013

1.5.2 Description of 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)

%

KKPA1 4,055.32 3,864.00 104,730,19 27.10 52,911.39 61.6 - -


1.5.3 Smallholder(s) and other source

Name of

source(s) Member(s) Location

Total Area (Ha)

FFB (tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

Angsana Estate (ASE)

Minamas PT LSI

3,215.48 65,908.950 11.63 0.01

Gunung Sari Estate (GSE)

Minamas PT LSI

2,833.35 61,615.430 220.81 0.26

Pantai Bunati Estate (PBE)

Minamas PT LSI

2,715.00 64,684.690 26,683.37 31.07

KKPA 4 Estate PT. SHE Full

manage smallholder

District of Tanah Bumbu, Province of Kalimantan Selatan

2,713.01 62,033,90 6,058.710 7.4

TOTAL 11,476.84 254,242.97 32,974.52 38.4


1.5.4 Product categories FFB/CPO/PK/PKO


ASSESSMENT REPORT


1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year

Hectarage (Ha)

KKPA 1

2000 2724

2001 504

2002 636

2003 -

2006 -

TOTAL 3,864

1.6.2 New Planting area after November 2007 - Ha

1.6.3 Planting Cycle 1st/2nd Cycle 25 Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production 112,700 Tonnes/year

CPO Production 27,048 Tonnes/year

Palm Kernel (PK) Production 5,071 Tonnes/year

Palm Kernel Oil (PKO) Production Tonnes/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estate(s)

Total Area (Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

KKPA 1 4,055.32 3,864 108,192 28

1.7.3 Claim Certified Tonnage 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 POM

15 87,000 19,575 22.5 3,915 4.5 - -

** Not all FFB from KKPA 1 is processed by Angsana Mini POM, therefore production data can be claimed base to production data 12 months prior to surveillance-2.

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

Management Unit Location

Hectarage (Ha)

Time Bound Plan

Status

Mills Estates

Sekunyir PT. Indotruba Tengah District of Seruyan and Kotawaringin Barat – Province of Central Kalimantan

7,734.60 2009 Certified 2010

Manggala PT. Tunggal Mitra Plantations

District of Rokan Hilir – Province of Riau

13,836.00 2009 Certified 2010


ASSESSMENT REPORT


Bukit Ajong PT. Sime Indo Agro District of Sanggau – Province of West Kalimantan

11,652.00 2009 Certified 2010

Teluk Siak PT. Aneka Inti Persada City of Pekanbaru and District of Siak – Province of Riau

11,134.00 2010 Certified 2011

Sungai Pinang PT. Bina Sains Cemerlang District of Musi Rawas – Province of South Sumatera

6,513.00 2010 Certified 2012

Sukamandang PT. Kridatama Lancar District of Seruyan and Kotawaringin Timur – Province of Central Kalimantan

14,779.92 2010 Certified 2011

Pemantang PT. Teguh Sempurna District of Seruyan and Kotawaringin Timur – Province of Central Kalimantan

16,601.66 2010 Certified 2011

Alur Dumai PT. Lahan Tani Sakti District of Rokan Hilir – Province of Riau

3,759.02 2010 Certified 2012

Teluk Bakau PT. Bhumireksa Nusasejati

District of Indra Giri Hilir – Province of Riau 25,662.00

2010 Certifed 2011

Mandah 2013 -

Mustika PT. Sajang Heulang District of Tanah Bumbu – Province of South Kalimantan

7,794 2012 Certified 2011

Angsana Mini Full Manage smallholders (KKPA)

16,000 2010 Certified 2011

2013 Audited 2013

Angsana PT. Ladangrumpun Suburabadi

District of Tanah Bumbu – Province of South Kalimantan

6,077.00 2010 Certified 2011

Gunung Aru PT. Bersama Sejahtera Sakti

District of Kotabaru – Province of South Kalimantan

12,704.54 2010 Certified 2011

Ladang Panjang PT. Bahari Gembira Ria District of Muaro Jambi – Province of Jambi

1,202.04 2010 Certified 2012

Bebunga PT. Langgeng Muaramakmur

District of Kotabaru – Province of South Kalimantan

16,361.77 2011 Certified 2012

Pondok Labu PT. Paripurna Swakarsa District of Kotabaru – Province of South Kalimantan

14,892.00 2011 Certified 2012

Selabak PT. Swadaya Andika District of Kotabaru – Province of South Kalimantan

10,361.18 2011 Certified 2012

Rantau PT. Laguna Mandiri

District of Kotabaru – Province of South Kalimantan 15,299.80

2011 Certified 2011

Betung 2013 -

Ungkaya PT. Tamaco Graha Krida District of Morowali – Province of Central Sulawesi

4,145.00 2011 Certified 2012

Rantau Panjang PT. Guthrie Pecconina Indonesia

District of Musi Banyuasin – Province of South Sumatera

10,139.91 2011 Certified 2012

Lembiru PT. Sandika Natapalma District of Ketapang – Province of West Kalimantan

8,406.21 2011 Audited 2011

PT. Budidaya Agrolestari District of Ketapang – Province of West Kalimantan

2011 Audited 2011

MAS PT. Mitra Austral Sejahtera District of Sanggau – Province of West Kalimantan

8,741.29 2011 Audited 2011

Blang SImpo PT. Perkasa Subur Sakti PT. Padang Palma Permai PT. Perusahaan Sri Kuala

District of Aceh Tamiang and District of Aceh Timur- Province of Nanggroe Aceh Darussalam

6,451.99 1,128.90

2011 Certified 2013

Sime Darby has been certified on all 39 units management in Malaysia and 21 units management in Indonesia. There is a change Time Bound Plan that caused the company delay the certification process as follow :

1. PT Mitra Austral Sejahtera. There are unresolved problems (issues) social. Palm Oil Farmers Union (SPKS) Sanggau have not yet agreed the demands of society and improvement of conflict resolution in accordance with RSPO principles and criteria.

2. PT Sandika Natapalma and PT Agro Lestari have been assessed in June 2011, but there are some noncompliance that must be resolved related to regulatory compliance.

Sime Darby has informed the Time Bound Plan and Mutuagung has considered that Sime Darby still meet the requirements of the RSPO for Partial Certification


ASSESSMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Assessment Team

S-2 Lead Assessor and Assessment Team 1. Octo H.P.N Nainggolan (Lead Auditor). A Indonesian citizen, Bachelor of Agriculture, majoring of Social

Economics of Agriculture (Agribusiness). Seven years working experience since 2004 at oil palm Plantation Company in Indonesia and followed several trainings namely: Training of Conservation of Natural and Biological Resources in supporting HCV, Basic Plantation Management Program, Plantation Integrated Pest Management training, Management System Certification (ISO 9001-2008/SNI 19011-9001:2008), Environment Management System (ISO 14001:2004), SMK3 based on OHSAS, RSPO Lead Auditors Training Course endorsed by Proforest and Wildasia, Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course, supply chain certification system training and RSPO Renewable Energy Directive Lead Auditor training. Currently he worked as an auditor at Certification Body. In Surveillance 2, He assesses the legality, best practices, environmental and Occupational Health and safety.

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

3. Marsudi Eko Santoso (Auditor). Bachelor of Agriculture, majoring in Agro technology. Followed the Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor training, ISPO Lead auditor training and distribution quality management process - APMEA. He had involved several time in RSPO certification assessment activities as an auditor. Currently he works for Independent Certification Body. In Surveillance 2, He assess on the legality aspect, employment, welfare workers, fire prevention, child labor and OHS Implementation

4. Moh. Arif Yusni (Auditor). Bachelor of Agriculture, majoring of Plant Pest and Diseases (Plant Protection). He has a working experience for 2 (two) years in oil palm Plantation Company in Indonesia. Trainings attended namely: Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course. Now he worked at Independent Certification Body as Auditor. He has been several times following audit related to sustainable palm oil certification system as an observer and auditor. In Surveillance 2, He assess on best practice and welfare workers.

5. Sandra Purba (Trainee Auditor) Bachelor of Forestry, Department of Forest Products Technology, Faculty of Agriculture, University of North Sumatra. Have experience working in oil palm plantations Company. She had attended such training: Training Expert of OHSAS General, Training ISPO Auditor. In Surveillance 2, She assess on the employment, welfare workers and OHS Implementation

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

S-2 Number of auditors : 5 auditor Number of days for S-2 at site : 3 days Number of working days for S-2 at site :15Working days

2.3.2 Detail process of assessment

S-2 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PT Sajang Heulang 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 Scheme Smallholders October

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT


2009) 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 information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site. Some opportunities for improvement of the results S-2 delivered by the auditor MAL to the management unit and the results are the subject will be verified at the next assessment phase (S-3). Improvement of findings from main assesment findings were observed by auditors at thisS-2 assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of S-2. The assessment program please find Appendix 2

2.3.3 Locations of Assessment

S-2 Sample Locations was visited by team auditor are Angsana Mini POM, KKPA-1 Estate and KKPA-4 Estate Angsana Mini POM 1. Production Process (Loading ramp until dispatch). Observation related with FFB processing to produce

CPO, emergency response facilities in mill, interview with mill workers (boiler operator and engine room operator) related with medical checkup, operator's license, wages, grievance , implementation of Occupational Health and Safety (OHS), training, safe work method, adequacy of PPE and mechanism mass balance of supply chain model.

2. Chemical storage. Observation of ochemicals handling and interviews with warehouse staff about procedures for chemicals handling, emergencies and implementation of Occupational Health and Safety (OHS)

3. Water Treatment Plan. Observation on clean water supply that run first 4. Workshop. Observation on emergency facilities and first aid emergency. Interviews with welder about training,

medical checkup, OHS implementation, safety work, grievance mecanism, freedom of association and wages 5. Diesel fuel tank. Observation on fire-fighting facilities 6. Hazardous waste temporary warehouse. Observation on hazardous waste management in accordance with

regulations and interviews with warehouse staff about medical checkup, hazardous waste handling procedures and availability of facilities handling exposure and pollution.

7. Waste water treatment plant. Observation of liquid waste treatment plant and handling pollution reduction.

KKPA-1 Estate 1. Employee housing.Observation on facility are provided by the company, clean water supply, household waste

management, lighting / electrical, interviews with employees who live in house about complaints, socialization and committee gender.

2. Child Care, observation of cleanliness and facilities that provided (clean water and lighting), interviews with employees who care child

3. Genset room, Observation of security standards, existing grease trap and the function, handling used oil generators, gensets officers who get regular health checks and trained

4. Agrochemical warehouse, observation on completeness safety sign standards for chemical warehouse and placement, first aid emergency boxes and workers understanding about it . Do not use chemicals active ingredient like paraquat.

5. Fertilizer warehouse, observation of completeness sign safety standards for fertilizer warehouse and placement, first aid emergency boxes and workers understanding about it

6. Diesel fuel tank. Observation of Safety standards. Diesel fuel tank has been paired roof and wall containment to prevent contamination directly into the ground.

7. Hazardous warehouse. Observation of hazardous waste handling that generated in the estate. Warehouse Waste has protected so isolated and limited access. According to the worker, hazardous waste sent to hazardous waste temporary warehouse of Angsana Mini POM.

8. Workshop, observation of safety standards, management of used oil, according to warehouse personnel, used oil directly send to hazardous waste temporary warehouse, first aid emergency, understanding of officers, officers have trained in accordance with competence

9. Emergency Response Facilities, observation of fire emergency response facilities in KKPA 1, regular checks every month has scheduled and implemented.

10. Infrastructures, There are places of worship in a residential KKPA 1, L300 Cars for pick-up school children and posyandu officers, drill water wells that have tested the feasibility.


ASSESSMENT REPORT


11. Block J8 harvest activities. Observation and interviews with personnel related with the understanding of SOP, the use of PPE, employee benefits and housing facilities

12. Block I12 maintenance activities. Observation and interview with Spray Foreman and Sprayer team about corporate policy on application of chemical in riparian areas, company’s policy on periodic medical examinations, the use and adequacy of PPE, training on spraying techniques, training on OHS, training on First Aid emergency, gender specific grievance mechanisms, employee benefits and remuneration.

13. Block K8, Integrated Pest Management. Existence of Gupon (owl box), dirt, food residue, and found the owl). 14. Block H14 Fertilizer activities. Observation and interview with fertilizer workers about corporate policy on

application of chemical in riparian areas, company’s policy on periodic medical examinations, the use and adequacy of PPE, training on spraying techniques, training on OHS, training on First Aid emergency, gender specific grievance mechanisms, employee benefits and remuneration.

15. Boundaries pole KKPA ~ PT Sajang Heulang already mapped in each village and each landowner. village boundary following the boundaries that have been set by the government. For examples boundary of Purwodadi village with Bayan Sari village.

KKPA-4 Estate: 16. Blok I53 harvest activities. Observation and interviews with harvester related with the understanding of SOP,

the use of PPE, employee benefits and housing facilities

17. Block J59 maintenance activities. Observation and interview with Spray Foreman and Sprayer team about

corporate policy on application of chemical in riparian areas, company’s policy on periodic medical examinations,

the use and adequacy of PPE, training on spraying techniques, training on OHS, training on First Aid emergency,

gender specific grievance mechanisms, employee benefits and remuneration.

18. Block I59, Integrated Pest Management. Existence of Gupon (owl box), dirt, food residue, and found the owl.

19. Block I60 Fertilizer activities. Observation and interview with fertilizer workers about corporate policy on

application of chemicall in riparian areas, company’s policy on periodic medical examinations, the use and

adequacy of PPE, training on spraying techniques, training on OHS, training on First Aid emergency, gender

specific grievance mechanisms, employee benefits and remuneration.

20. Employee housing. Observation on facility are provided by the company, clean water supply, household waste

management, lighting / electrical, interviews with employees who live in house about complaints, socialization

and committee gender

21. Genset room, Observation of security standards, existing grease trap and the function, handling used oil

generators, gensets officers who get regular health checks and trained

22. Agrochemical warehouse, observation on completeness safety sign standards for chemical warehouse and

placement, first aid emergency boxes and workers understanding about it . Do not use chemicals active

ingredient like paraquat.

23. Central warehouse. Observation of standard safety sign for fertilizer warehouse and the storage, first aid

emergency boxes in chemical warehouse and workers understanding about first aid emergency.

24. Diesel fuel tank. Observation of Safety standards. Diesel fuel tank has been paired roof and wall containment to

prevent contamination directly into the ground

25. Hazardous warehouse. Observation of hazardous waste handling that generated in the estate. Warehouse

Waste has protected so isolated and limited access. According to the worker, hazardous waste sent to

hazardous waste temporary warehouse of Angsana Mini POM

26. Workshop, observation of safety standards, management of used oil, according to warehouse personnel, used

oil directly send to hazardous waste temporary warehouse, first aid emergency, understanding of officers, officers

have trained in accordance with competence

27. Fire Fighting Command Post. observation of fire emergency response facilities in KKPA 1, regular checks

every month has scheduled and implemented

28. Infrastructures, There are places of worship in a residential KKPA 1, L300 Cars for pick-up school children and

posyandu officers, drill water wells that have tested the feasibility

29. Boundary poles KKPA ~ PT Sajang Heulang already mapped in each village and each landowner. village


ASSESSMENT REPORT


boundary following the boundaries that have been set by the government. For examples boundary of Purwodadi

village with Bayan Sari village

Village and Agencies: 1. Forestry and Plantation agency Tanah Bumbu district. Interviews related to warning against discontinuation

of LSI plantation business activity. 2. Environment Agency, Tanah Bumbu district. Interviews related to revocation of the environmental documents

(EIA) of LSI. 3. Manpower and Transmigration Agency , Tanah Bumbu district. Interview related with labor laws. 4. Bunati village. Interview with village head related with contribution to rural development (CSR program

implementation), Communication and consultation with the community, the presence of HCV areas and the impact of plantation management.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Summary of stakeholder consultation process Consultation of stakeholders for PT Sajang Heulang was held by public consultation meeting with internal stakeholders by interviews and local stakeholders conducted by visits to villages and interviews with local peoples. Numbers of input from stakeholders were clarified by PT Sajang Heulang

2.4.2 List of stakeholder contacted

Please find appendix 3

2.5 Determining Next Visiting

The next visit (S-3) will be determined one year after this S-2


ASSESSMENT REPORT


3.0. ASSESSMENT RESULT

3.1. Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted an assessment of Angsana Mini POM – PT Sajang Heulang, Sime Darby operation consisting of one (1) mill and two (2) oil palm estates. During the assessment, there were one (1) Nonconformity were assigned against Major Compliance Indicator; one (1) nonconformity were assigned against Minor Compliance Indicators and no nonconformance against supply chain requirement for CPO mill and two (2) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in section 3.5. The company has already prepared and implemented the corrective action(s) that had been reviewed and accepted by Auditor(s) in form of documentation evidence(s) e.g. (document record/photographic). Those corrective action(s) taken that consist of one (1) major Nonconformity and one (1) Minor non-conformity had been closed out shall be verified during next assessment. MUTUAGUNG LESTARI found that Angsana Mini POM – PT Sajang Heulang, Sime Darby Group complied with the requirements of RSPO Principles & Criteria and National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008 Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is Continued

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 recording in the form of External Communication Log (Incoming and Outgoing Mail Registration) is available at each Estate. For example:

At Office KKPA 1, there was an order from the Head of Angsana Village (Mr. H. Sayid Umar Idrus) onJanuary3rd, 2012, number of letter: 412/01/AGN/2012. He asked for the help of vehicle for pilgrimage at Sacred Burial Place in South Kalimantan. Based on the study, there were 2 incoming mails and all of them have been responded.

At Office KKPA 4, period of 2012-2013. There was no order of information. However, there was an order of assistantship such as a Letter from Sebamban Lama Village on September 8th, 2012, asked for the help of heavy equipment for road repairmen and environmental cleaning. It was responded by sending heavy equipment (Grader KKPA 4) on September 10th, 2012.

In accordance with the SOP of Record Management number 704/TQEM-ESH/10 point 6.5, on April 4th, 2010, the storage time of recording is controlled according to its interest, such as:

- The need of audit/assessment checking in 3 years.

- The need of reference for 10 years.

- The law and regulations until revision

- Demand and information response for two years

- Company policy unit revision.

- A note to compensation of unlimited land (will be continuously stored during the operation of the company). In addition, the company has also pointed the head of department to monitor the need of document controlling.

Status: Full Compliance

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


ASSESSMENT REPORT


In accordance with the SOP of Information Answer No.AI 0900, April 1st2010, information and responses given to stakeholder are listed below: 1. Wide area of land clearing, Immature Plant (TBM), Mature Plant (TM), Facilities and Infrastructure. 2. Receipt of Jamsostek /Social Assurance of Labor 3. Evidence of employee medicine treatment, 4. Public facilities for employee 5. Data of pest and disease attack 6. Data of light vehicle and heavy vehicle 7. Data of supporting machines 8. Data of CSR realization 9. Data of fertilizer used in this activity 10. Type of agrochemical used in this activity 11. Summary of Financial Data 12. Data of bridge 13. Data of road length 14. Data of Working Building 15. Data of Public Building 16. Data of School Building 17. Data of SKU Employee 18. Data of Student

A memo related with the consultation of document order to the central management. Memo from the CEO No. M 024/CEO/V/2008 on May7th, 2008 concerning Information Delivery that the information delivery related with strategy, concept, and plan of company should be approved by Group Chief Executive Sime Darby through Corporate Communications Departments currently known as Plantation Services Department.


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

Angsana Mini POM and smallholders (KKPA 1 Estate) have met rule and regulations as follow: 1. To complete permit for the use of hazardous waste storage warehouse in accordance with the Government

Regulation number 18 year 1999; 2. To conduct a training, to provide job opportunity, to have a good relationship with worker, to give salary in

accordance with the regulation, to provide opportunity for organization. It has followed Law number 13 year 2003 concerning Manpower.

3. Permit for the application of liquid waste from palm oil mill in accordance with the Decree of Environmental Minister number 29 year 2003 concerning the permit of liquid waste utilization from palm oil mill.

4. To have Plantation Business Permit (IUP) in accordance with the Regulation of Agriculture Minister number 26 year 2007.

There is an effort to adjust and meet the regulation by Angsana Mini POM (PT SHE) and the smallholders (KKPA-1), for example, the company has paid salary in accordance with the Decree of South Kalimantan Governor number 188.44/0502/KUM/2012 on October 2012 concerning Minimum Wage at South Kalimantan Province in 2013 as much asRp. 1,365,000,- Angsana Mini POM (SHE) and KKPA-1 have a documented system whose information and legal requirement that must be met by the company. It is written in the SOP of Guidelines for Sustainable Plantation Management number 724/TQEM-SPMS/09 in Chapter 1.2. It describes the compliance to the Law, Government Regulation, and SOP of Legal Requirement by PT. Sajang Heulang (KKPA/Cooperative Credit Scheme) Minamas Plantation No.701/TQEM-ESH/10 approved onMarch6th, 2012. It describes the mechanism of valid and related requirement fulfillment identification.


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


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Authorization and operation of land for palm oil plantation by PT. Sajang Heulang (PT. SHE) can be shown by five HGU/ Land Use Permit as follow:

Certificate of HGU/ Land Use Permit Number 26, dated December4th, 2000, Wide area is 150 Ha.

Certificate of HGU/ Land Use Permit Number 27, dated December 4th, 2000, Wide area is 56 Ha

Certificate of HGU/ Land Use Permit Number 28, dated December 4th2000, Wide area is 200 Ha

Certificate of HGU/ Land Use Permit Number 34, dated May 14th, 2002, Wide area is 5.260 Ha

Certificate of HGU/ Land Use Permit Number 35, dated May 14th2002, Wide area is 2.128 Ha Total HGU/ Land Use Permits opt. SHE are 7794 Ha. There are documents: List of Farmers Name, the owner of KKPA (Cooperative Credit Scheme) Project by KUD (Village Cooperative Unit) Tuwuh Sari cooperated with PT. Sajang Heulang in accordance with its phase. This document contains the number of KUD (Village Cooperative Unit) member, name of farmer, place and date of birth, beneficiaries, number of land, block, and wide area of land.

1. First phase, Permata Bank, year of planting: 2000, wide area: 4000 Ha. 2. Second phase, Niaga Bank 1, year of planting: 2000 (841 Ha) and 2001 (625 Ha), total area 1,466 Ha. 3. Third phase, Niaga Bank 2, year of planting: 2000 (1 Ha), 2002 (1,581 Ha), 2003 (3,166 Ha), total area 4,748

Ha. 4. Forth phase, Niaga Bank 3, year of planting: 2004, total 3.868 Ha. 5. Fifth phase, Niaga Bank 4, year of planting: 2005 1,156 Ha 6. Sixth phase, Niaga Bank 5, year of planting: 2006 (610 Ha), year of planting: 2007 (152 Ha), total area 762 Ha.

For the first phase, all lands have certificate of property rights (SHM) notarized by Kasmuri S.H, total area 4,000 Ha (Kotabaru Regency), guarantee by Permata Bank

Second, third, and forth phase; lands still in the process of certificate of property rights (SHM) notarized by Farid S.H, total area 10,082 Ha (Banjarmasin), guarantee byNiaga Bank 1,2 and 3.

Fifth and sixth phase, land still in the process of certificate of property rights (SHM) publishing notarized by Mekar S.H, total area 1,918 Ha (Banjarmasin), guarantee byNiaga Bank.

Pantai Bonati Estate (PBE)-PT Sajang Heulang already has Land Use Permit number 35 on May14th, 2002. Based on the interview with the management (Mr. Puji), this area is a dispute area with PT. Anzawara Satria (Coal Mining Company). Based on the Review of Dispute Case at the Supreme Court, PT. Sajang Heulang does not have right to this land and district court Batu Licin to execute this land on behalf of PT. Anzawara Satria. Currently, PT. Sajang Heulang is still in the process of filing a lawsuit upon execution on October26th, 2012. Based on the field observation, this land has been cleared by PT. Anzawara Satria. There is a Pilar Book of Land Use Permit by PT. Sajang Heulang (Berkarangang Village, Ringkit Village, Mustika Village, Giri Mulya Village, Kuranji Village, Waringin Tunggal Village, Tibarau Panjang Village, Kusan Hulu Sub District, Tanah Bumbu Regency, South Kalimantan Province), published by BPN/National Land Agency, South Kalimantan Province in 2004. Boundaries pole maintenance activity is conducted together with boundaries line maintenance. There are also several documentation evidences in the form of pictures during boundaries pole monitoring and maintenance implementation program by PT. Sajang Heulang. Boundaries pole maintenance was conducted in area between KKPA (Cooperative Credit Scheme) plantation area which shares the same border with the smallholder’s area of PT. Ladangrumpun Suburabadi and PT. Sajang Heulang. It was directly conducted by each smallholder’s plantation management during the maintenance of outer boundary of plantation area. Meanwhile, the boundary area of KKPA (Cooperative Credit Scheme) which share the same border with village area was managed by each KKPA (Cooperative Credit Scheme) in accordance with the location of each block of plantation area. Since the procurement of land and implementation of KKPA-1 and KKPA-4 program, there was no conflict related with land utilization because scheme smallholders have received their own plot distribution for 2 hectares. Since the operation of palm oil KKPA (Cooperative Credit Scheme), profit sharing was conducted according to the monthly profit and by referring to the year of planting. The determination of fresh fruit bunch was conducted by using bunch tripartite method between the representative of scheme smallholders, local government, and main company every month. To avoid any conflict, SHE management and the board of Koperasi held a routine LPKP meeting every month. Tuwuh Sari KUD (Village Cooperative Unit) held Annual Meeting of Member (RAT) to report the development of Koperasi and


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Financial Report. Before the implementation of palm oil plantation development agreement with SHE, KUD (Village Cooperative Unit) and SHE has conducted socialization about the plan of palm oil plantation development by using KKPA scheme (Cooperative Credit Scheme). This socialization was held Wednesday, February 8th, 1998. It was attended by the representatives of villages that would be joined in KKPA program (Cooperative Credit Scheme), the board of KUD (Village Cooperative Unit) and SHE. Based on the review of document and discussion with Mr. Hasan Nuryadi (Secretary of KUD (Village Cooperative Unit)), there was no evidence of land claim related with the palm oil plantation development at KKPA-1 and KKPA-4. KKPA-SHE had determined the mechanism of conflict solution through the procedure of Occupational Land Acquisition number 343/PSD-OKUM/11 on February28th, 2012. The scope of this procedure regulates the process or procedure of occupational land acquisition that have been approved by Land Committee-Central. It was based on the Master Map of Final Occupation, the result of technical feasibility survey, and required document both in Land Use Permit and the outside area of Land Use Permit in legal authority. In addition, KKPA-SHE also has the SOP of Identification.


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.

Based on the Map of KKPA (Cooperative Credit Scheme) Area and Statement Area as well as field verification, there was no KKPA (Cooperative Credit Scheme) area under the authorization of traditional rights. There was a notification letter from the Office of BPN/National Land Agency of Tanah Bumbu Number 000/171/KP.12, July 15th, 2010, describe that there was no tenure land at the plantation area owned by PT. Sajang Heulang in the Certificate of Land Use Permit


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.

Each plantation area (estate) has document of company’s working plan in the term of Short-Term Plan for 2013-2014. It is written in the budget distribution of 2013-2014 for KKPA 1 Estate and Palm Oil Mill at Angsana Mini. 1. For Estate Management Unit, there is an approved operational cost plan. The distribution of working plan is

described below: a. Forecast of 2013-2016 production, production yield (ton/ha), administration cost, labor cost, mature upkeep,

manuring, harvesting and collection, transport, etc. b. For company environmental management plan, the company has allocated this cost plan for the cost of water

supply activity for the employee, Occupational Health and Safety Cost, RSPO, High Conservation Value/HCV, EIA, etc..

c. For the company’s social management plan, the company has allocated this cost plan for religious holidays, salary of teachers, cost for CSR/Corporate Social Responsibility, and social donation for the community, etc.

2. In Palm Oil Mill at Angsana Mini, there is a plan of operational cost that has been approved by Mill Manager, GM Mill, SGM Plantation Operation Region of Kalimantan/Sulawesi, Head Plantation Operation, and Upstream Productivity Department. The distribution of this working plan is described below: a. Forecast mill intake (FFB), extraction of CPO, extraction of kernel, processing cost, administration cost, training

cost, environment cost, health cost, transport cost, etc. b. For company’s environmental management plan. The company has allocated this cost plan for construction

cost, installation cost, maintenance cost of K3/Occupational Health and Safety and non K3/Occupational Health and Safety announcement board, laboratory analysis service cost for CPO, waste to outer party, etc.

c. For company’s social management plan, the company has allocated this cost plan for the third party donation such as honor, proposal for celebration, socialization cost of K3/Occupational Health and Safety, RSPO, High Conservation Value/HCV, Jamsostek/Social Assurance of Labor, Safety and Health, etc.

The company has implemented SAP program for financial monitoring. Based on the observation to company’s


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document, the company has designed several activities such as production, extraction of CPO, and extraction of palm kernel up to 2014/2015. KKPA-1 and KKPA 4 have not planned replanting program for the next five years. The first planting was conducted in 2000. The policy of Minamas Plantation – Sime Darby determined several requirements for the determination of replanting area, such as: a. Plant age more than 25 years b. Yield of production (Ton/Ha) < 18 Ton/Ha/year c. Height of plant should more than 15.1 meter d. Replanting is systematically conducted (centralized) and follow a pattern for BHS operational (Block Harvesting

System), BMS (Block Manuring System), and BSS (Block Spraying System). e. Field with limitations – flood prone, accessibility, inadequate soil conservation practices like terraces, high risk to

accidents, boundary with smallholders and theft prone.


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

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

Until the implementation of surveillance 2, there was no change in the procedure related with the operational activity of PT SHE’s plantation area and Palm Oil Mill of Angsana Mini. The company has a mechanism for checking or monitoring of operation activities, such as:

Internal audit (two times a year) is conducted by internal auditor of Region Office,

Plantation advisory (two times a year). The scope of this activity is production achievement, K3/Occupational Health and Safety activity, best management practices, environment, and follow up to the result of former internal audit.

Mill Advisory (MA) (two times a year). The scope of monitoring in this activity is financial aspect, purchasing and supply of goods, production of CPO/Kernel and delivery, and follow up to the result of former internal audit.

Audit of RSPO is usually conducted every year. The scope of audit is the monitoring to company’s compliance towards RSPO principle and criteria.

Monthly quality monitoring is conducted by PSQM (Plantation Sustainable Quality Management). All operational activities are recorded in Manager Report and available for estate and Palm Oil Mill. There is also monthly management report which reported every month to the plantation area. It describes all aspects of operational activities in the plantation area. Meanwhile, there is a monthly report for Palm Oil Mill about the operational activities at the mill, such as: statistic of production, capacity and utilization of mill, quality of production, financial loss of production to processed fresh fruit bunch (The Percentage of Financial Loss to Processed Fresh Fruit Bunch and The Percentage of Palm Kernel Financial Loss to Processed Fresh Fruit Bunch).


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

To maintain and increase the fertility of soil for optimal and sustained product, there are several efforts that have been conducted by the company, such as: 1. The company has conducted soil and leaf analysis as well as visual observation at the field. In detail, below is the

description: a. Soil Analysis

There is a semi-detailed soil analysis recording in 2012 conducted by Minamas Research Center. It itemizes the result of laboratory analysis to the condition and content of soil nutrient of each sample and the recommendation of fertilizer to maintain the balance of nutrient in the soil. There were several parameter measured in this activity such as: texture, acidity (pH0, content of C, N, P, K, Mg, Ca, Na, BS, CEC, Al, H and cation exchange capacity. There is a semi-detailed soil analysis recording conducted at KKPA1 and KKPA 4

b. Leaf Analysis


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The company has also regularly analyzed leaves once a year. Based on the result of leaf analysis, a recommendation of fertilizer doze was published in order to produce optimal palm oil fruit. The principle of fertilizing is giving a specific treatment to soil in order to produce required nutrient for palm with optimal production. There is a recording of leaf analysis conducted at KKPA 4 and KKPA 1

c. Visual Observation In addition of soil analysis and leaves analysis, MRC also conducted visual observation during sampling activity at the field. This visual observation is used for the consideration in determining recommendation of fertilizer and analyzing the potency of disease attack which potentially become a specific endemic disease.

There are several considerations to determine sampling during the implementation of soil analysis, leaves analysis, and visual observation. Those are year of planting, type of soil, and type of seedling. CAR 2012.01 is Closed The company has conducted fertilization, empty fruit bunch application, utilization of liquid waste from palm oil mill for land application. It is proved by the recording of fertilization activity, empty fruit bunch application and land application. For example: KKPA1

Fertilization according to the recommendation of fertilizer application in 2012-2013

Empty fruit bunch application (JJK). There is a recording empty fruit bunch application in 2012-2013 to March 2013

Division Tonnage (Ton) Wide Area (Ha)

Budget Realization Budget Realization

1 2,240 1,940 153 145

2 6,200 3,419 155 83

3 3120 2,940 78 65

Selective weeding: in the monthly report of manager in crops maintenance in order to keep the humidity of soil.

Fertilization is based on the recommendation of fertilization application in 2012-2013

Empty fruit bunch application (JJK). There is a recording empty fruit bunch application in 2012-2013 to March 2013

Division Tonnage (Ton) Wide Area (Ha)

Budget Realization Budget Budget

1 2,121.75 1,027.6 84.87 37.93

2 6911.5 1,982 276.46 29

3 2,424 8,671.4 96.96 32.90

Selective weeding: in the monthly report of manager in crops maintenance in order to keep the humidity of soil


4.3 Practices minimize and control erosion and degradation of soils.

Based on the result of soil analysis at KKPA 1 and KKPA4 of PT Sajang Heulang, each sample showed an actual suitability level S3 (Marginal Suitable). However, it has a quite big potency to become S1 (Highly Suitable) and S2 (Suitable). The main boundary factor at KKPA-1 and KKPA4 is the low nutrient availability. This condition is caused by high rain fall which stimulates alkali cautions leaching. In addition, there is no peat area in the operational area of company. Based on the semi-detailed map, land topography at KKPA 1 and KKPA4 is flat (slope level is 0%-2%). Therefore, a specific strategy is not needed in the management of planting in area with a certain slope, type of soil, and local climate. The company has document of Road Maintenance Evaluation which describe about the program and realization of road (all weather roads), construction of non flooded road, and construction of side drain to flow the water to collection drink at the block. Based on the result of field survey, the condition of road was good. There were several heavy vehicles used for road maintenance at KKPA1 such as 1 unit of compactor, 1 unit of grader, and 1 unit of TLB. Meanwhile, heavy


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vehicles used for road maintenance at KKPA 4 were 1 unit compactor, and 1 unit greader. First strategies for marginal land and other critical land treatment by the company are written in the Final Document of Semi Detailed Land Survey, such as:

Soil fertility improvement by planting land cover crops such as soft fern (Nephrolephis sp), empty fruit bunch application (JJK); selective weeding; MOP fertilizer application with the doze of 2,5-3 kg/tree/year..

Management of fertilizer: an effort to maintain the balance of nutrient especially N, P, and K and other fertilizers with a balanced doze to the need of crops and nutrient coming out from harvesting activity, shoots, leaching prevention, run off, and volatility.

Maximizing fertilizer use efficiency in the form of: right type of fertilization technique, doze, way, time and place, type of fertilizer selection such as slow release fertilizer.

To decrease leaching and to increase water availability especially plintudults type (easy for surface run off and flooding potency), hapludults type/sandy mud (easy for leaching). There are several efforts such as: to close area around the water to keep water reserve, field drain design at each block with the ratio of 1:8 for water reservoir and flooding prevention; organic material application especially for clay and sandy soil; mulching with empty fruit bunch


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

SHE has composed management strategy plan for High Conservation Value/HCV including river buffer zone management and other water sources managed as HCV 1.4 and HCV 4.2 with riparian boundary area marking, sign-board installation, forbidden of chemical material spraying, forbidden of fertilization as long as 50 meter at the left and right river boundaries, and forest trees planting. Based on the field survey at KKPA-1 Estate especially riparian of Nibung River, the ecosystem of riparian at Block I-15, there were several markings at the buffer zone in the form of circular yellow paint in palm tree trunk at the distance of 5 (five) trees from the riverside. KKPA-1 plans to plant perennial in buffer zone area. Water management program at Palm Oil Mill of Angsana Mini was conducted in the second semester of 2012. Palm Oil Mill at Angsana Mini routinely analyze the quality of river water from area before mill, after mill, monitored well water (Block H-19)) was by accredited institution (BARISTAN, Banjarbaru-South Kalimantan). It is conducted every month. Based on the result of water quality analysis, several location showed that the water quality still in its Threshold Value (NAB) in accordance with the valid regulation (Government Regulation of South Kalimantan Number 5 year 2007). The recording of water quality analysis is well available and routinely reported by LSI to the related institution to meet all required regulations. The company also maintain the quality of produced waste from the mill so it still below its valid measuring standard. The monitoring to BOD of liquid waste produced by Palm Oil Mill at Angsana Mini is routinely conducted every month to monitor the quality of liquid waste so it still below its valid measuring standard. Based on the observation result, BOD of liquid waste from pool number 5 (effluent) still below its stipulated quality standard. The sample of BOD test in July - October 2012 for liquid waste produced by Palm Oil Mill at Angsana Mini is:

July (93 mg/l)

August (102 mg/l)

September 165 mg/l)

October (186 mg/l)

November (144 mg/l). Based on the observation result to the document of water utilization in mill (per ton of fresh fruit bunch), Palm Oil Mill at Angsana Mini use water for processing (processing and boiler) and domestic needs in employee housing. Palm Oil Mill at Angsana Mini has recorded the use of water in the document of water use evaluation. It is conducted every day and well recorded. The result of water use evaluation since January – April 2013, the average use was 1.9 M3/ton of fresh fruit bunch (process was 1.7 M3/ton of fresh fruit bunch and domestic was 0.24 M3/ton of fresh fruit bunch). Palm Oil Mill at Angsana has implemented water use saving by reusing washing water from the mill.


ASSESSMENT REPORT



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

The company has implemented integrated pest control, such as:

Census program of palm leaves eating caterpillar is conducted every month and other pest (rat, oryctes, and ganoderma) census is conducted every 2 months or six month in a year.

Planting plan and beneficial crop maintenance 2012-2013 such asTurnera subulata, Antigonon and Casia tora.

Gupon (owl nest) monitoring program in 2013, every month (there are 15 gupons (owl box) at KKPA 1 and 33 gupons (owl box) at KKPA 4)

Integrated pest control program conducted by fishermen has been monitored and its wide area was reported to the company. It is routinely conducted every month. It describes the wide area of PHT, monitoring to the level of pest and disease attack, monitoring to the pest and disease control. Based on the result of study to document and field study in 2012 -2013, there was no pest and disease attack above its economic threshold. Based on the field study at KKPA 1 Block K8 and KKPA 4 Block I59, owl nest was in active condition, shown by the presence bird dropping, dead rats, and bird wings. In 2012-2013, the company has implemented PHT/Integrated Pest Control training program. The last training program was held on September 17th, 2012 at KKPA 4 and January 15th, 2013 at KKPA1 Related to the use of pesticide, the company also has monitored it such as the use of pesticide, the use of active material, active material per Ha and active material per ton of fresh fruit bunch.


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.

There is a list of pesticide used by the company. It is based on the Book of Pesticide for Agriculture and Forestry in 2011 published by the Directorate of Fertilizer and Pesticide, the Directorate General of Facilities and Infrastructure, the Ministry of Agriculture, Republic of Indonesia in 2011. All pesticides used by the company has been licensed and registered. In addition, the company also has committed to not use herbicide containing Paraquat as its active ingredient. It is based on the memo from the Research Department number MRC/Controller/HPO/698/X/2008, on November 4th, 2008 concerning the recommendation of active ingredient replacement namely Paraquat - Gramoxone at Minamas Plantation. Based on the monitoring to the use of pesticide at KKPA 1 and KKPA 4, paraquat does not use anymore. The use of pesticide by the company at each state has been well recorded. It described the amount of pesticide use, working item (chemist disk, bear market and stacking of sheath), the use of pesticide per hectare, and the number of application. The company provides MSDS (Material Safety Data Sheet) as the reference for first aid for officer directly contact with chemical material. Most of the MSDS have been provided in Bahasa so it easy to be understood by all level of worker. Based on the result of study to the document and field survey, pesticide used by the company has met its doze, target, and trained operator. Every morning, before the spraying, briefing is always conducted, about the use of APD/Personal Protective Equipment such as spraying, right spraying technique, and food supplements provision such as egg and milk. The company also has procedure about agrochemical waste and pesticide pack management (SOP of hazardous waste management and non hazardous waste number RA012/ASF/SOP.ESH/10, April 12th, 2010 for Angsana Factory; and SOP number RSPO/5.3/PLB3&BB3 for Angsana Mini POM and SHE plantation area,). This procedure is conducted by using reduce and reuse technique. Reduce technique is conducted by selling to the licensed third party or efficient use. Meanwhile, reuse is a technique to use something for couple times (such as, used water for knapsack washing can be reused for the next dilution of chemical material). The company has conducted a routine medical checkup for spraying employee. It is conducted every 6 months. There is


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a routine medical checkup at KKPA 1 onJanuary9th 2013 and KKPA 4 onDecember13th, 2013 by central policlinic doctor. Based on the result of medical checkup, all employees were healthy. The company has a policy about the Prohibition to Pregnant Worker and Breastfeeding Worker to work as spraying and fertilizing worker. It is based on the memo from Manager of Gunung Sari Estate to this assistant number GSE-gme/131/XI/2009/S, on November 18th, 2009. Based on the result of field survey and interview with workers, there was no pregnant worker and breastfeeding mom.


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

The company showed the document of Occupational Health and Safety policy approved by CEO of Minamas Plantation on July 5th, 2008. It contains the commitment: The company is responsible to the implementation of Occupational Health and Safety program at all operation activity in plantation area and mill. To realize this goal, the company has determined a procedure of operation activities at all plantation area and mill. This willing is realized in the compliance of Occupational Health and Safety regulation of workers, continuous and sustainable improvement so it can be used for risk monitoring and management of company’s business. . Goal and target:

To protect involved person in the activity of company (Zero accident) and company’s assets.

To realize a safe and healthy business and to increase the awareness of employee for safety culture.

To implement the Law of the Republic of Indonesia about Occupational Health and Safety. There is a procedure of K3 / Occupational Health and Safety number 711/TQEMS-P2K3/07 by Minamas Plantation. It was approved onDecember14th, 2007 by the Head of Plantation Operation. KKPA (Cooperative Credit Scheme) plantation area has the structure of organization ofP2K3 (Occupational Health and Safety Guiding Committee). It identifies the person in charge in K3/Occupational Health and Safety Program in accordance with the Decree of Head of Manpower Agency of Tanah Bumbu Regency number 560/19/BNWS-WAS/2013 on March5th, 2013. Manager of estate was determined as the person in charge for P2K3 program (Occupational Health and Safety Guiding Committee) and the secretary was Agus Gunawan (Expert of K3/Occupational Health and Safety in accordance with the Expertise Certification of Public K3/Occupational Health and Safety number 10.3929/AK3-U/DJPPK-P2K/III/2010). Meeting of P2K3 (Occupational Health and Safety Guiding Committee) has not been conducted yet because the meeting was planned to be conducted in April 2013 (1 month after its formation). It is in accordance with the Decree of Manpower Minister number 155 year 1984 section 16 and Report of P2K3 (Occupational Health and Safety Guiding Committee) submitted on June 2013 (3 months after its formation). There is paramedic at KKPA 4 Clinic and Central Clinic. Paramedic had resigned on March 5th, 2013 and a letter of paramedic application is available. Currently, health service is transferred to Health Center in Sebamban Village 2; KKPA 2. The name of paramedic is Hendrik Kusworo). In addition of formal information, training, and meeting, communication media for K3/Occupational Health and Safety can be given in the form of poster, signs, slogans, newsletter, backup management system, and campaign. There is a team for emergency situation and fire officers as well as P3K/First Aid Emergency Officer. There was a meeting of P2K3 (Occupational Health and Safety Guiding Committee) at TC Room on April 6th, 2013 attended by 39 participants. It discussed about the evaluation of meeting onJanuary9th, 2013 and the implementation of separated harvesting equipment and workers. There is a letter of P2K3 (Occupational Health and Safety Guiding Committee) report submission on April 25th, 2013.Handover document number 03/KKPA 1 – P2K3/IV/13/s. There is also P2K3 organization (Occupational Health and Safety Guiding Committee) at Angsana Mini POM with the Decree of Social, Manpower, and Transmigration Agency number 560/05/BNWS-WAS/2012 on March 3rd, 2012. There is P2K3 report (Occupational Health and Safety Guiding Committee) per three (3) months submitted to Manpower and Transmigration Agency of Tanah Bumbu Regency


ASSESSMENT REPORT


(number of report: 022/AMF-P2K3/V/12) on April 9th, 2013. The company has included the employee in Jamsostek program/Social Assurance of Labor. It can be seen at KKPA 1, total workers joined in Jamsostek program/Social Assurance of Labor is 400 people. In March 2013, the company paid Rp. 41,206,283,- for their insurance. For example, a worker on behalf of H. Sunarko. His total income is Rp. 1,483,500,-, It is cut by Jamsostek/Social Assurance of Labor as much as Rp. 29,670,- (2%) and company pay for Rp. 67,351,- (3,4%). Total contribution of Jamsostek/Social Assurance of Laboris Rp. 97,021,-. At KKPA 4, the number of SKU H workers is 242 people. The total cost of company for this insurance is Rp 22,896,965,-, (for example: the income of Fransiskus Mantu is Rp 1,483,500,-, It is cut by Jamsostek/Social Assurance of Labor as much as Rp. 30,452,- (2%) and the company pay for Rp. 67.351,- (3,4%), total contribution of Jamsostek/Social Assurance of Labor is Rp. 99.578,-). Total employee at SKU B is 36 people and the company pay for Rp 3,610,325,- (for example: the income of Hairudin is Rp 1,522,605,- cut by Jamsostek/Social Assurance of Labor as much as Rp. 29,670,- (2%) and the company pay for Rp. 67,351,- (3,4%), total contribution of Jamsostek/Social Assurance of Labor is Rp. 97,021,-) PT SHE has conducted routine medical checkup for plantation workers who work at high risk stations such as generator, workshop, and warehouse. For example, a routine medical checkup at KKPA-1 is conducted for warehouse officer on behalf of Agus Sudaryono, workshop officer on behalf of Otong and generator operator on behalf of Sukardi. It was conducted onJanuary9th, 2013. The document of routine medical checkup was available at KKPA-4 for generator operator on behalf of Firman and warehouse officer on behalf of Fajrin (medical checkup was conducted on February 6th, 2013 and valid toMay6th, 2013) Angsana Mini POM also has conducted routine medical checkup for high risk officers and processing operator. It was conducted by Labor and Transmigration Agency, Occupational Health and Working Safety Agency on February 4th, 2013. The result was reported on February 18th, 2013 (number of report 07.02/B.14/Disnakertrans/BHP-KK/2013). They were checked by dr. Sakinatus Syarifah. For example, a worker on behalf of Dian Feryanto (operator of boiler) and Arip Padilah (Electrician). They were checked about:

Physical checkup (general condition, eyes, ears, nose-mouth-throat, cardiovascular, tractus digestivus, nervous, tractus urogenitalis, skeletal system)

Anamnesa (health consultations)

HIRAC document at the estate including the analysis of hazards potential source, impact/risk, level of danger, and recommendation. It clarifies about:

Working risk analysis of plant management by identifying the type of job, the potency of work accident (hazard), effect, risk, risk control recommendation at the field related with the operational activities at the plantation area such as harvesting, shooting, fertilizing, spraying, road, warehouse, generator house, and workshop maintenance

Workshop/traction, main office, transportation of fresh fruit bunch, transportation of fertilizer, division, warehouse division, central warehouse, and supervision.

HIRAC of Working Building including the analysis of location (warehouse of poison, warehouse of fertilizer, fuel tank, main/division office, water machine, chainsaw, mover), potency of hazard, risk, and recommendation.

The organization also able to show HIRAC Mustika Factory (MTF) document for each job at each station. For example, checking job and impeller fan cleaning at Nut and Kernel Station, Hazard by impeller fan, broken hand effect, Risk (E=H, P=L, R=M) Risk Control Lock Out – Tag Out System, sign of repair, monitoring, SOP, Safety Awareness Training, to use proper Personal Protective Equipment, Residual Risk Nil, and assistant of PIC There are several certification/SIO of operator, such as:

Recommendation of welder Class III number 566/11/Disnakertrans/2013 was given to (welder at KKPA 1) on March28th, 2013

Certificate of Health Technique Development and Working Safety of Aircraft Power and Production Section was given to Sukardi from Manpower and Transmigration Agency of Banjar Baru (officer of generator at KKPA 1) on 03/28/2013 number 13.199-OPDK3-PTP/III/2013

Recommendation of welder Class III number 566/11/Disnakertrans/2013 was given to Hairudin (welder at KKPA 4) onMarch8th, 2013; Recommendation of welder Class III number 566/05/Disnakertrans/2013 was given to Putu Awita Eka Saputra (welder atKKPA 3); Recommendation of welder Class III number 566/06/Disnakertrans/2013 was given to Dody Azhar (welder at KKPA 5); Recommendation of welder Class III


ASSESSMENT REPORT


number 566/07/Disnakertrans/2013 was given to Hendra (welder atKKPA 2); Recommendation of welder Class III number 566/09/Disnakertrans/2013 was given to Dedy Subagyo (welder atMTF) onMarch8th, 2013. Based on the explanation from Manpower Agency, the company has coordinated about this point.

There is a letter from the Manpower Agency of South Kalimantan Province number 566/285/Disnakertrans on March11th, 2013 state that Manpower Agency of South Kalimantan Province has conducted Training for Lift and Transport Aircraft Operator, Diesel Motor, and Welder on March5th – 6th, 2013. The result of training showed that certifications have been given to 11 welders, 23 Lift and Transport Aircraft Operators. There were passed and certificate/SIO still in the process of publishing. The training was also given to 10 generator operators and they were passed. The certificate/SIO still in the process of publishing

There is a certificate for boiler operator as the evidence that training has been conducted for high risk station officer on behalf of Dian Feryanto (boiler operator Class I). It was published by Manpower and Transmigration Agency of the Republic of Indonesia, Directorate General of Manpower Supervision January 26th, 2010 (No: 10.083/PNK3-PUBT/OB-I/I/10).

The company has SOP of emergency responses, such as: o Procedure of Emergency Response, ASF/SOP.ESH/14, on April 8th, 2010 o Fire countermeasure No. 727/TQEM-ESH/10 on April 1st, 2010, o Identification and evaluation of emergency potential 724/TQEM-ESH/10 on April 1st, 2010, o Earthquake 746/TQEM-ESH/10 on April 1st, 2010, o Evacuation 726/TQEM-ESH/10 on April 1st, 2010, o Explosion countermeasure 728/TQEM-ESH/10 on April 1st, 2010, o Emergency training 733/TQEM-ESH/10 on April 1st, 2010, o Preparedness and response as well as emergency recovery number 725/TQEM-ESH/10 on April 1st, 2010.

Every guest who will conduct an activity at the mill area will receive safety briefing by staff of Palm Oil Mill. Every morning, before employee start to work, socialization and checking on the use of Personal Protective Equipment of Angsana POM are conducted. Response plan is also explained at the opening meeting. The company provide emergency response equipments, such as:

At KKPA 1, there are32 units of APAR (Fire Extinguisher), 10 boxes of first aid kits at several buildings (such as: warehouse, office, and workshop). Each foreman has one box of first aid kits (total 24 boxes). There is also a set of fire extinguisher such as 1 set of fire hose, 1 unit of water machine, 5 hoes, 10 jute sacks, 5 shovels, 5 bat mattresses, and 1 unit of water tank.

At KKPA 4, there are 11 units of APAR (Fire Extinguisher), 3 boxes of first aid kits, 1 unit of water tank, 1 unit of water pump, 50 meter of fire hose, 50 meter of small hose, 5 hoes, 2 machetes, and 5 helmets.

There are several emergency response equipments at Angsana Mini POM such as 12 units of APAR (Fire Extinguisher) and 4 units of hydrant. It is completed with hose in each hydrant and five boxes of first aid kits. It is placed in high risk stations which based on the risk analysis (such as: workshop, office, and warehouse). Workers have been trained for first aid kits such as first aid kits simulation on March30th, 2012 at Angsana Estate Sport Hall. It was conducted by company’s doctor and attended by 75 workers (foremen, teacher, workers, and staffs) from Gunung Sari Estate, Angsana Estate and Angsana POM. This training described the basic skills for first aid kits handling, simulation of first aid kits (burns, animal bites, unconscious, drowning victim, injuries caused by sharp weapon, fracture) and discussion. Minutes of meeting and list of attendance during first aid kit straining are available. The training was directed by dr. David Terny Tumbel on November 30th, 2012 at Estate Sport Hall of KKPA 3. It was attended by 37 workers of mill and KKPA/Cooperative Credit Scheme (Estate Manager, foremen, spraying workers, driver, fertilizing foremen, and spraying foremen). There is monthly report about accident at each unit in the form of “working accident monitoring at the plantation area/Palm Oil Mill” in KKPA 1. It contains the summary of accident in a month. Report of working accident is also available at KKPA 4. There was an accident on January 12th, 2013. A truck hit motorcycle. Investigation was conducted on January 18th, 2013. Truck driver would replace the damaged motorcycle with truck driver’s payroll deduction payment for 10 months. This accident did not cause a loss of working days.


ASSESSMENT REPORT


There is working accident report at Angsana Mini POM. The Recapitulation of Working Accident Report” was reported together with the P2K3 Report (Occupational Health and Safety Guiding Committee). It is reported every three months. The last report was on April 9th, 2013.


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

The organization has training program for the staff in the form of Plantation Management Committee Indonesia (Report On Human) Report on April 24th, 2012, such as Minamas Learning Design for 2012-2013, It contains Mandatory Training (Related to Employee Level : Core Executive Program) such as:

1. CEP 1 for Level of Supervisor/Assistant of Supervisor (G/H Level) 2. CEP 2 for Assistant of 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).

The organization also has identification matrix of training and training plan for non staff in 2013. It will consist of maintenance, spraying, fertilizing, harvesting, sortation of fresh fruit bunch, fire extinguisher, pollution prevention, public K3/Occupational Health and Safety, chemical material K3/Occupational Health and Safety-first aid kits, K3/Occupational Health and Safety for electricity, RSPO, management of K3/Occupational Health and Safety. For example: Training Program at KKPA 1 in 2012/2013, such as:

Training program of empty fruit bunch application given to workers, foremen and foremen 1; it was conducted in November 2012.

Training program of spraying for spraying officer, foremen and foremen 1; it was conducted in October 2012. Based on documents review and interviews with workers welding at Angsana Mini POM (on behalf Nurrohmansyah and Andre K) is known that they not have welder certificate as proof of worker competencies and Angsana Mini POM has not yet programmed training to obtain welders certificate. Raised CAR.2013.01 with Major category Angsana Mini POM has conducted training program for welders in May 2013. It can be used as the observation material by auditor team to the compliance of this training plan (indicator 4.8.2). CAR.2013.01 closed with observation. The Recording of General Training (PT LSI & SHI):

Recommendation of welder Class III number 566/11/Disnakertrans/2013 was given to Hairudin (welder at KKPA 4) on March 8th, 2013; Recommendation of welder Class III number 566/05/Disnakertrans/2013 was given to Putu Awita Eka Saputra (welder at KKPA 3); Recommendation of welder Class III number 566/06/Disnakertrans/2013 was given to Daody Azhar (welder at KKPA 5); Recommendation of welder Class III number 566/07/Disnakertrans/2013 was given to Hendra (welder at KKPA 2); Recommendation of welder Class III number 566/09/Disnakertrans/2013 was given to Dedy Subagyo (welder atMTF) on March 8th, 2013. Based on the explanation from Manpower Agency, the company has coordinated about this point.

There is a letter from the Manpower Agency of South Kalimantan Province number 566/285/Disnakertrans on March 11th, 2013 state that Manpower Agency of South Kalimantan Province has conducted Training for Lift and Transport Aircraft Operator, Diesel Motor, and Welder on March 5th – 6th, 2013. The result of training showed that certifications have been given to 11 welders, 23 Lift and Transport Aircraft Operators. There were passed and certificate/SIO still in the process of publishing. The training was also given to 10 generator operators and they were passed. The certificate/SIO still in the process of publishing.

SIO Operator Boiler, such as Certificate from the Ministry of Labor on behalf of Mohamad Sobirin (number of certificate: 11.1281-OPK3-PUBT-B.1/XI/2011 as the Boiler Operator Class 1 and License of K3/Occupational Health and Safety number 11.1281-OPK3-PUBT-B.1/IX/2012).

The recording of staffs training, such as: 1. Training by Mr, Bayu Setiaji (Assistant at KKPA 4 Class G) concerning supervisory Management onMay 10th, 2011

for 16 hours at the Meeting Room at the Representative Office of Banjarbaru. 2. Training by Mr, Agung Pambudi (Assistant at KKPA 1 Class G concerning supervisory Management on March15th,

2011 for 16 hours at Ibis Hotel Pekanbaru.


ASSESSMENT REPORT


The recording of KKPA 1 staffs training, such as: 1. Training of empty fruit bunch application (JJK) at Block J15 Division II KKPA 1 onMarch22nd, 2012 attended by 5

employees (foremen, foremen I, office clerk and workers). 2. Training of Spraying Team at Block K16 Division II KKPA 1 onJuly23rd, 2012 attended by 10 employees (foremen,

foremen I, office clerk and workers). 3. Training of the Use of APAR (Fire Extinguisher) at traction of KKPA 1 on February 22nd, 2013 attended by 10

employees (foremen, foremen I, office clerk and workers). 4. Training of Leaf Sampling Unit di Block K13 Division I KKPA 1 onMay29th, 2013 attended by 38 employees

(foremen, foremen I, office clerk and workers).

Based on the field interview with spraying workers, fertilizing workers, and harvesting workers at Division 1 Angsana Estate, they clarify that every activity has been completed with right technique learning such as right spraying technique, fertilizing technique, and harvesting technique. The company also stated that every morning assembly, safety briefing is conducted to deliver right working technique. There is a proof that the company use trained contractor such as a requirement to implement K3/Occupational Health and Safety and show the license of contractor’s workers, such as: there is a Letter of Agreement. The number of Letter of Agreement is 033/KKPA-1/SPK – LKL/I/13 concerning an agreement to palm fruit transportation (fresh fruit bunch) from KKPA 1 to Angsana Mill with Istikah/contractor, in Banjarsari Village, Angsana Sub District, Tanah Bumbu Regency, section 14 concerning Working Safety sub section 2, each contractor must have and install safety net, and sub section 1, the contractor must comply the valid regulation of K3/Occupational Health and Safety in the company such as: a. All operators must turn the vehicle’s lights at the plantation area during the day, b. all operators should wear APD/Personal Protective Equipment (helmet and safety shoes). Section 1 describe the

obligation of units to have Driving License (SIM), such as Truck, Police number DA 9208 TZ, the driver is Bawor, type of driving license is General B1 number 820318340090.


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.

KKPA-SHE has EIS document, RKL and RPL – SHE document composed by PT. Datawana Internusa consultant and it has been approved by the Secretary General/Head of Central EIA Commission of the Forestry and Plantation Department number 154/Menhut-II/2000 onDecember26, 2000. The scope area of EIA is 40.000 Ha and the capacity of Palm Oil Mill is 2 x 60 Ton fresh fruit bunch/hour. This EIA study has covered KKPA area (Cooperative Credit Scheme) as explained in Chapter III The Description of Activity or Business Plan and it also in the summary that cannot be separated from EIA document. The location of EIA study isSatui Sub District, Loban River and Kusan Hulu. Geographically, the business plan is located in 03030’58” - 03043’35” S and 115034’29” - 115047’33” E, in the latitude of 10-50 m above sea level and the farthest distance from the sea is 23.5 KM and the closest distance is 1 KM. There is RKL and RPL Implementation Report by PT. Sajang Heulang Period of July – December 2012. PT SHE has shown delivery document and RKL/RPL report acceptance for the second semester of 2012. It was submitted to the Environmental Agency of Tanah Bumbu RegencyonMarch21st, 2013. The number of letter is 01/KKPA-sp/III/13. In accordance with the Government Regulation number 27 year 2012 section 50, EIS revision can be conducted, if there is: 1. Change in business ownership 2. Change in environmental management and monitoring 3. Change in production equipments that influence environment. 4. Additional production capacity 5. Change of technical specification 6. Change of business/activity facilities 7. Area expansion


ASSESSMENT REPORT


Based on the verification and field survey, there was no factor causing EIA revision both at KKPA-1 and KKPA-4.


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.

KKPA-SHE has a recording from the identification result of protected, rare, endangered or critically endangered species and habitat with high conservation value in plantation area. There are two documents: a. EIA document composed in 2000. b. Identification process and analysis to the presence of High Conservation Value/HCVarea conducted by Forestry

Faculty IPB/Bogor Agricultural University on October7th – 14th 2012. At this audit S2, identification report was still in finishing process so there was no review document and final document from the identification ofHigh Conservation Value/HCV.

In the document draft of High Conservation Value/HCV, identification at NKT 1.2, there were several wild animals identified at smallholders area of KKPA-SHE as many as 41 species, consist of 5 species of mammals, 32 species of bird, and 4 species of reptile. Based on the analysis and identification of wild animal, some of them are classified into protected animal. Based on the Government Regulation number 7 year 1999, those protected animals are bobcat (Pronailurus bengalensis), collared kingfisher (Halycon chloris), pied fantail (Rhipidura javanica), cattle egret (Bubulcus ibis), changeable hawk-eagle (Spizaetus cirrhatus), sulawesi serpent eagle (Spilornis cheela), and brown-throated sunbirds (Anthreptes malacensis) as well as 6 wild animals at CITES Appendix II such as monkey (Macaca fascicularis), bobcat (Prionailurus bengalensis), Babi janggut (Sus barbatus), monitor lizard (Varanus salvator), and cobra (Naja sumatrana). However, there was no Critical Endangered (CE) species. High Conservation Value/HCVin the plantation area is:

High Conservation Value Presence Wide Area

(ha)

1. Area with Important Biodiversity Level None -

2. Important natural landscape to the dynamics of natural ecology.

None -

3. Area with rare or endangered ecosystem Yes 13.27

4. Area provide natural environment service Yes 142.17

5. Area with important function to fulfill the needs of local community

None

6. Area with important function to identify local community culture

Yes 0.001

Total 142.18

Related with the result of High Conservation Value/HCV identification in above Criteria 5.2.1, KKPA-SHE has conducted several actions to protect these rare species such as: 1. To make procedure number AI 0900 on April 1st, 2012 concerning wild animal management and procedure

number PM 0500 Rev 00 on January7th, 2013 concerning conservation forest management. 2. To compose High Conservation Value/HCV Program and Monitoring both at KKPA-1 and KKPA-4 and to make

buffer zone boundaries signs (have been installed). 3. To socialize High Conservation Value/HCV to the staffs and community.

The recording of socialization at KKPA-1 that was conducted on October 8th, 2012 in the office of Bayansari Village. The socialization contains flora and fauna preservation, protected animals recognition, and environmental sustainability preservation.

The recording of socialization at KKPA-4 that was conducted on February 4th, 2013 in the office of Sumber Sari Village. The socialization contain High Conservation Value/HCV information and management

Socialization about wild animal handling/High Conservation Value/HCV to the staffs has been delivered every morning briefing as stated by the Assistant of Division I KKPA-1 (Mr. Agung).

https://www.google.com/search?hl=id&biw=1366&bih=667&q=cekakak+sungai+collared+kingfisher&revid=1253753379&sa=X&ei=zuCtUY3kMYb_rAfdgoGwCg&ved=0CHMQ1QIoAA


ASSESSMENT REPORT


KKPA-SHE has wild animals handling procedure number AI0900 dated April 1st, 2012. This procedure is intended to minimize the threat of wildlife especially in concession area. There is also conservation forest management procedure number PM 0500 Rev 00 on January7th, 2013. KKPA-SHE has composed program and monitoring such as buffer zone boundaries signs, prohibition and recommendation sign board, trees planting, midrib stacking, and flora and fauna monitoring. The socialization of High Conservation Value management has been well conducted to the community/member of cooperative and employee as seen in the clause 5.2.2. There is poster and sign board at the field related with the information that this area has High Conservation Value/HCV, such as HCV 4.1. There is also sign board announce about animals should not be hunt and arrested as well as announcement board not to catch and kill fish. Sign boards are installed at the office of division, field, and High Conservation Value/HCV area. For example, sign board installation related with the socialization of protected animals and information of HCV of riparian. Protected animal sign boards are installed in front of Division I office, KKPA-1, Block I-13 and H-13 information of HCV of riparian is installed at Block I-13. This program is scheduled to December31st, 2013. Special officer who handle High Conservation Value/HCV has been pointed by the Decree of Manager at KKPA-1 Number 001/SKP-HCV/KKPA-1/II/2013 onFebruary1st, 2013 concerning the appointment of Mr. Solihin as the officer of High Conservation Value/HCV and the Letter of Manager at KKPA-4 onFebruary4th, 2013 concerning the appointment of Mr, Tri Agus Prasetyo as the officer of High Conservation Value/HCV.


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

Waste identification at Palm Oil Mill and estate. It contains the name of waste, type/phase of waste, clarification of hazardous waste and non-hazardous waste (B3 waste and non B3 waste), frequency, unit, number/month, handling (reuse/recycle/disposal), storage area, purpose, and note, such as:

Identification of Waste Sources and Management at Angsana Mini POM. Identification of waste sources at each station in Palm Oil Mill from Loading Ramp, Sterilizer, Press, Nut & Kernel, Clarification, WTP, Boiler, Engine Room, Store, Workshop, Office, lab, Canten, All Stations, to Effluent (B3 waste and non B3 waste).

Identification of Waste Sources and Management at each estate. Identification of waste sources at each location of plantation area was started from household, workshop, warehouse and office (B3 waste and non B3 waste).

Waste management has been written in several documents, such as: a. Identification of Waste Sources and Management

This document describe waste management plan, storage area, purpose and note, as follow:

- hazardous waste is managed by disposal, storage at hazardous waste warehouse, and delivers to licensed collector/buyer.

- Solid waste of empty fruit, Partenocarpy, decayed bunches to be reused for the application at Block

- Solid waste such as metal, carton, and plastic to be recycled

- Waste from household to be disposed at the TPA by using landfill system. b. SOP of hazardous and non hazardous waste management number No.RA012/ASF/ SOP.ESH/10, April 1st, 2010

for Angsana Factory. It regulates about waste management, as follow:

- Storage time of hazardous waste at licensed TPS/Final Disposal Site should not more than 90 days. If so, is should be coordinated with the related institution.

- Solid waste should be used for land application (such as empty fruit bunch), boiler fuel (such as fiber, shells), stacked at an empty area (such as boiler ash).

- Liquid waste from processing at mill can be used for land application at the plantation area.

- Air pollution can be handled by using routine service (such as generator), and

- Hazardous and Toxic Waste can be sold or eliminated by delivering it to licensed Hazardous and Toxic Waste collector.

The implementation of this waste management is based on the field observation, as follow: a. Application of empty fruit bunch solid waste at the plantation area b. The use of shells solid waste for boiler fuel c. Waste from household can be managed by using landfill method. There is TPA /Final Disposal Site at each estate

used to process domestic waste by using landfill method. The transportation of waste from each housing area to


ASSESSMENT REPORT


TPA/Final Disposal Site is conducted two times a week in accordance with the recording of regular waste transportation at each estate, for example at Block J10.

d. Liquid waste is used for land application. e. Hazardous and Toxic Waste/Hazardous and Toxic Waste KKPA-SHE have Hazardous and Toxic Waste management plan as written in the document of Identification of Waste Sources and Management and SOP document number 709/TQEM-ESH/10 concerning the management of Hazardous and Toxic Waste (for KKPA/Cooperative Credit Scheme) and SOP number RA 012 on April 1st, 2010 (GSE). These documents describe that Hazardous and Toxic Waste from all type of waste (solid and liquid) will be managed by using disposal technique. Waste will be delivered to licensed collector/third party for hazardous transportation/management. Before being delivered by licensed third party, Hazardous and Toxic Waste from waste producer, it will be stored at hazardous waste temporary warehouse that has certification from Mustika POM

Temporary Hazardous and Toxic Waste Storage Area In accordance with the valid regulation, Hazardous and Toxic Waste should be temporary stored at licensed storage area. For this purpose, KKPA-SHE has built one unit of warehouse. It will be used for temporary storage area of Hazardous and Toxic Waste situated at Mustika POM. Until the implementation of audit, the candidate location for the TPA/Final Disposal Site of Hazardous and Toxic Waste has not been legally operated because its permit from the government of Tanah Bumbu Regency has not been approved yet. However, SHE KKPA has a recording that permit application steps have been conducted. During the implementation of audit, SHE KKPA was still waiting the approval from the Regent of Tanah Bumbu Regency. Permit was submitted to the local Environmental Agency on April 9th, 2012 after the finishing of Hazardous and Toxic Waste warehouse construction. As the response of this letter, local Environmental Agency sent auditor team of Temporary Disposal Site of Hazardous and Toxic Waste on May16th, 2012. Minutes of meeting was declared after the location checking for permit in Temporary Disposal Site of B3/Hazardous and Toxic Waste by PT. Sajang Heulang. Based on these minutes of meeting, the Head of Local Environmental Agency of Tanah Bumbu Regency, memos have been delivered to the Regent of Tanah Bumbu Regency to ask for the approval of Temporary Disposal Site of B3/Hazardous and Toxic Waste at PT. Sajang Heulang. This permit process stuck at this phase and until the implementation of audit activity, permit of Temporary Disposal Site of B3/Hazardous and Toxic Waste has not been approved yet by the Regency of Tanah Bumbu Regency.

The management of B3/Hazardous and Toxic Waste, oil, oil filter, batteries, and contaminated cloth. Oil, oil filter, batteries, and contaminated cloth will be transported by PT. Larashatiku Environmental as the licensed third party. PT.Larashatiku Enviromental is the permit holder based on the Decree of Environmental Minister number 235 year 2011. Contract cooperation has not been conducted yet. However, purchasing agreement for each delivery has been conducted. In accordance with the manifest document and minutes of meeting of delivery, the latest used batteries and used oil was conducted by PT. Larashatiku on the February 1st, 2013 such as used oil (9 drums), used drums (63 kg), used filter (108 pcs), used battery (1 pcs), used painting can (105 kg) and bulb or light (45 pcs).

Medical Waste Management Procedurally, SOP regulates that medical waste is managed by disposal to licensed third party and medical B3/Hazardous and Toxic Waste will be eliminated by Local Hospital.

Pesticide waste management (agrochemical ingredient) In accordance with Waste Management Plan document, SOP number 709/TQEM-ESH/10 concerning Hazardous and Toxic Waste Management and Working Instruction number 701/IK-TQEM-ESH/10 concerning pesticide waste management (agrochemical ingredient) from estate, waste will be delivered to licensed storage warehouse at Mustika Estate (main). It will be then transported and collected by licensed third party.

Based on the result of monitoring document to Hazardous and Toxic Waste, balance of Hazardous and Toxic Waste, and field observation at Temporary Disposal Site of Hazardous and Toxic Waste of Angsana Mini POM, the company has not manage Hazardous and Toxic Waste in accordance with the valid SOP (SOP number 709/TQM-ESH/10) related with the storage time of Hazardous and Toxic Waste at TPS. The storage time should not more than 90 days (Non


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Compliance see CAR 2013.02). The recording of monitoring/waste analysis is available at SHE KKPA in the form of:

a. Log book SHE KKPA use to record the incoming and outgoing Hazardous and Toxic Waste to the warehouse in accordance with its type. Based on the valid regulation, the balance of Hazardous and Toxic Waste should show total mutation of B3/Hazardous and Toxic Waste every month. It should be in accordance with the determined format. Therefore, even though permit for Temporary Disposal Site of Hazardous and Toxic Waste has not been obtained yet, SHE KKPA has composed Balance Report ofB3/Hazardous and Toxic Waste. It has been reported on March25th, 2013. The number of submission letter was 072/MTF-SP/03/2013.

b. Production recording and solid waste reuse in the form of empty fruit bunch. Empty fruit bunch has been applied and its number has also been monitored. The recording of empty fruit bunch application is written in daily report and monthly report of each plantation unit.

c. Solid waste such as shells and fibers has been effectively used. The recording of monitoring has been written in the document of Renewable Energy Usage for Financial Year 2012/2013.

The monitoring of liquid waste is written in the daily report of Palm Oil Mill production.

Minor 5.3.1 Status: Non Compliance see CAR 2013.02

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

The monitoring on the use of energy is described in the document of Fiber and Shell Use Data for Boiler Fuel in April 2013. There were 536.98 ton of fiber and 230.13 ton of shells were used for fuel. It produced 16.139 Kwh energy and 1,641 ton of CPO. Based on the monitoring in April 2013, the use of renewable energy was 9.8 kwh/ton CPO. Based on the evaluation in January – April 2013, there was a decreasing on the use of energy from 12,34 kWh/ton palm product in January 2013 to 9.8 kWh/ton palm product in April 2013. The data on the use of fossil fuel (diesel) at Angsana Mini POM in April 2012 – March 2013 is showed in the evaluation document of fuel use and efficiency analysis of fossil use (diesel). In January 2013, the use of diesel was 0.94 litre/ton fresh fruit bunches, in February was 1.05 liter/ton fresh fruit bunches and in March was 0.89liter/ton fresh fruit bunches. LSI has used renewable fuel such fiber and shell to substitute the use of fuel in fresh fruit bunches processing so the efficiency of fossil fuel (diesel) can be maximum.


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 zero burning policy (land clearing with no burning) which stipulated in the Procedure of Land Preparation, the third part of SOP number of Policy 110/EST-ARM/08. It is strengthen by the determination of SOP for Sustainable Plantation Management Guideline number of policy: 724/TQEM-SPMS/09, point 5.7.2 concerning Zero Burning Technique, page 24 of 31. The company has zero burning policy (land clearing with no burning) which stipulated in the Procedure of Land Preparation, the third part of SOP number of Policy 110/EST-ARM/08. It is also strengthen by the Memorandum from the Head of Plantation Operation on July12th, 2010 number POD-UM-150/VII/2010. The company has monitoring report of burning for KKPA 1 and KKPA 4 in March 2013 related with the burning report in and outside area of plantation. In March 2013, there was no fire. SOP of Fire Prevention and SOP of Fire Fighting in 2010. SOP of Land Fire Fighting, number of document is 727/TQEM-ESH/10 on April 1st, 2010. It contains: reference, definition, general information, person in charge, procedure, certain condition, facilities and administration, appendix. SOP of Land Fire Response Plan: number 724/TQEM-ESH/10, approved by Udin Lasiata, Muklison, H.D. Munthe, M. Romdhon, Bambang Yuwono on 4/2/12. The recordings of response plan are :


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Evacuation path and assembly point during the emergency situation such as main office and Mess KKPA 1 are available

Evacuation path and assembly point during the emergency situation such as main office and Housing area of Division 2 GSE and Junior High School of Gunung Sari Estate are available.

Evacuation path and assembly point during the emergency situation such as Mess KKPA 4 are available.

The identification of fire danger potential location and water sources location are available

There is a document of minutes of meeting of Land Fire Extinguisher Simulation by PT LSI andSHE (smallholders/KKPA) onMarch2nd, 2012 at 14.40 p.m. A simulation of land fire extinguisher at Angsana Estate has been conducted. It was attended by 9 plantation workers, 1 worker of plantation area, two security, 8 people from Division3 people from workshop, 1 person from warehouse, 1 driver, 8 people from the field, The main equipments for fire extinguisher are: water tank 3,000 liter, water pump machine, fire hose 2.3”, 2 roll/40 meter and nozzle, 1 box of first aid kits, 1 stretcher and practice location as the boundary signs at Block A027, Division I ASE. The list of attendance of the simulation is also available. There are several land firefighting infrastructures and facilities at KKPA 1: 1 unit of water machine/Robin, 1 set of fire hose, 1 unit of water trailer (the capacity is 2000 liter at traction), 5 hoes, 5 machetes, 5 buckets, 15 plastic glasses, 15 fire gloves, 12 smoke masks, 5 helmets, 2 heavy equipments at traction (TLB/Becho Loader and Grader). Based on the result of study, the equipments were in good condition. There are several land firefighting infrastructures and facilities at KKPA 4: 1 unit of water machine/Robin, 1 set of fire hose, 1 unit of water trailer (the capacity is 2000 liter at traction), 5 hoes, and 2 machetes. OFI: KKPA 4 can add fire extinguisher in accordance to its vulnerability such as bucker and other equipments. Based on the result of study, the equipments were in good condition. Based on the interview result with the head of firemen, there was an information line about the land fire. It was started from the patrol by security guard. He then reported it to the emergency officer at the nearest division (1 foreman per division). This foreman then informed assistant and firemen at the traction to immediately take fire extinguishers and firemen to the fire location. There is a team of firemen at KKPA 1 lead by Agung Pambudi. It was legalized on January14th, 2012. At KKPA 4, the team is led by Mr. Supriyanto and legalized on March 2nd, 2013. There is a map of water source at KKPA 4 such as Block G30, G65 and F 32. Meanwhile at KKPA 1, water source can be found at Division I Block G-11, J9 and K-8). There is a Map of Fire Prone Area at KKPA 1 such as border area with the community plantation area at Block J2 and H18. Meanwhile, fire prone area at KKPA 4 was identified at the border area with the community plantation area such as Block D58, E50 and H08.


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

Angsana Mini POM has identified the source of pollution and emission as presented in the following table:

No. Source Type of Emission Management Note

1. The use of diesel CO2 To decrease the use of diesel

Monitoring to the use of diesel

2. The management of fresh fruit bunch

CO2 Routine emission and noise test as well as the decreasing of diesel use.

Emission test and monitoring to the use of shells and fibers for fuel.

3. POME CH2 Methane Trapping

Angsana Mini POM has conducted several monitoring to air quality and noise. The monitoring was conducted in front of Palm Oil Mill, behind Palm Oil Mill, in Palm Oil Mill, generator chimney atPalm Oil Mill, and chimney at boiler II. Based on the test of air quality and noise, the level of noise in front and behind Palm Oil Mill was higher than standard. The


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result of noise in front ofPalm Oil Millwas 59.4 dBA (the standard level of noise is 55 dBA). Meanwhile, the level of noise behind Palm Oil Millwas 56.5dBA, (the standard level of noise is 55 dBA). By referring to the Regulation of Labor Ministry number 14 year 2011 concerning the Measuring Standard of Physical and Chemical Factors in the working area, the company ask operators to use earplug at these locations. Meanwhile, the result of test at the chimneys of generator and boiler showed that the result of test were still below its emission quality standard as determined by the Regulation of South Kalimantan Governor number 070 year 2008 onDecember31st, 2008. Monitoring was conducted to measure the opacity emission of heavy equipments and AMF vehicles such as cold diesel, Mitsubishi L200 strada, wheel loaded JCB 540, Daihatsu hiline pick up and school bus. The result referred to the Regulation of Environmental Minister number 5 year 2006. Based on the opacity of emission, the result was still below its maximum quality standard. Water test was also conducted especially at area before the location of Palm Oil Mill, after the location of Angsana Mini POM and control well. The result of study also still below its required quality standard. The test was also conducted to application pools. KKPA-PT SHE has a recording about the effort and plan for pollution and emission decreasing. There is an SOP of Noise number AMF/SOP.ESH/06 on April 13th, 2010 which describe about the action to decrease and/or control the emission. For example, to decrease the noise, earplug can be used. Blow down silencer can also be used as many as 2 units at Angsana Mini POM Meanwhile, the recording of air quality monitoring, emission opacity of vehicle/heavy equipment and water quality monitoring have been conducted every 6 months. Liquid waste comes from production process oat Mini POM. To ensure the effectivity of Wastewater Treatment Plant (IPAL), water test is conducted every month. There are several parameter tested in this activity such as pH, BOD, COD, oil and grease, cadmium, copper, lead, and zinc. Liquid waste management is conducted by using land application. Liquid waste from Palm Oil Mill at Mini Mill is used as land application at Gunung Sari Estate. Based on the result to document at Mini Mill, debit to the plantation area is 5,593 m3applied to Block H19, H20 and H21 for 60.96 ha.


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

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

There are two documents describing about the social impact of plantation activities by PT. Sajang Heulang:

Environmental Impact Analysis (ANDAL) in 2000 (Page VI .11 – 17). The gathering of social economy, cultural, and health data was conducted by interviewing community and immigrants.

Document of Social Impact Study to Palm Estate Management PT. Sajang Heulang by Pollito in 2010. There is an appendix and it lists the name of people get involved in the socialization of Social Impact Study in 2010 in Visum Book with signatures and stamps.

PT SHE already has social impact management and monitoring as described in the RKL (Environmental Management Plan) and RPL (Environmental Monitoring Plan) document. It has been approved by Forestry and Plantation Minister number 154/menhut-II/2000 onDecember26th, 2000. It contains (1) Social unrest caused by mismatch compensation in the implementation of land clearing, (2) Opening to job and business opportunities and (3) Change in attitudes and community perception. In addition, KKPA-PT. SHE has also conducted social impact study in palm estate management in 2009 by Politto. Based on the result of study to the EIS revision and Social Impact Study document, there was no change in environmental element that cause change in social impact. There is RKL and RPL Implementation Report by PT. Sajang Heulang Periode of July – December 2012 which include social environment.


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PT SHE has showed the data of RKL/RPL report submission and acceptance in the second semester of 2012. The report was submitted to the Environmental Agency of Tanah Bumbu Regency on March 21st, 2013and number of letter is 01/KKPA-sp/III/13. Now, KUD (Village Cooperative Unit) Tuwuh Sari has been formed. It involved 10,892 people from 26 villages. Total area is 16,000 ha, consist of KKPA 1 (3,864 ha), KKPA 2 (3,792 ha), KKPA 3 (3,012 ha), KKPA 4 (2,676 ha), and KKPA 5 (2,656 ha). In accordance with the result of social impact study by POLLITO, there is an influence to the economy of local community (scheme smallholders) from the local economy rotation from Rp. 1,056,720,000,- to Rp. 1,773,200,000 per month. It was calculated from the expenditure of 821 local workers. Out of 12 villages around the SHE, the benefit of KKPA can be felt by the member’s okra (Cooperative Credit Scheme) who are already in normal harvesting period such as Angsana Village, Karang Indah Village, Bakarangan Village, and Karangmulya Village. Based on the RAT/Annual Meeting of Members of Tuwuh Sari KUD (Village Cooperative Unit)in 2012, a total asset of KUD wasRp. 281,681,923,386.


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

There is a new procedure for the communication and consultation with the community, SOP of Communication and Consultation with the Community, Number of Policy: 704/TQEM-ESH/10. It valid since April 3rd, 2012 and valid for KKPA (Cooperative Credit Scheme). There is also a procedure on communication and consultation with the community (No. KKM) on April 2nd, 2009 completed with flowchart. The SOP Communication and Consultation with the Community valid for Inti (GSE). The socialization of Procedure Communication and Consultation has been conducted such as socialization in, Waringin Tunggal Village on March14th, 2013. It was attended by 25 participants. The communication and consultation with the community was recorded in Incoming Mail and Outgoing Mail. For example, letter from Sebamban Lama Village on September 8th, 2012, concerning an order to borrow heavy equipment for road construction and environment cleaning. It was then responded by sending heavy equipments (Grader KKPA 4) on September 10th, 2012. There is a list of stakeholder of PT. Sajang Heulang in 2013, such as:

Related department at the national level : 8.

Head of Level I and Related Institution : 10

Head of Level II and Related Institution : 11

NGO, Cooperation, University, and other company : 12

Stakeholders of KKPA at Sub district Level and Village Level : 14

Community Figures : 6

The company has list of internal-external complaint recording to record all aspirations. This document cover several information such as date of acceptance, name of applicant, type of information/aspiration, person in charge, date of response, type of action, and status of completion. Based on the procedure of communication, number of Policy: 704/TQEM-ESH/10, manager of unit is responsible in the communication and consultation with community around the plantation area.


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 mechanism of complaint management is described in the Procedure of Information Acceptance (KKM). This


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procedure explains about the procedure for receiving and responding complaints from many parties such as procedure and completion time. This mechanism has been socialized to many parties during meeting with village head and local community. Communication and consultation has been conducted in Waringin Tunggal Village on March14th, 2013. The procedure of information is only accommodating complaints from parties submitted in writing so consideration is needed to accommodate unwritten complaints in logbook. Until this assessment, there is no complaint submitted to the management of PT SHE. There is a procedure of Occupational Land Clearing number 343/PSD-OKUM/11 onFebruary23rd, 2011 replacing the procedure number 344/PSD-OKUP/10, on September 2nd, 2010. In this procedure, there are several phases, such as:

1) Before the payment of land clearing, Minutes of Negotiation Meeting should be made, 2) Compensation payment process should be witnessed/known by several parties such as head of sub district,

head of village, etc), 3) Compensation payment of land clearing should be conducted after the signature of several documents

(Minutes of Meeting of Joint Agreement, Waiver Letter of Land Rights, Statement Letter, Receipt of Financial Lost Compensation, Recapitulation of Compensation, and Map of Compensation). These documents should be signed by the holder of land rights (the receiver of land compensation payment), representative of company, head of sub district/PPAT, and head of village and/or local RT (the lowest governance level).


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.

KKPA-SHE has determined the mechanism of conflict solving through the procedure of Land Acquisition number 343/PSD-OKUM/11 onFebruary23rd, 2011. However, there is no compensation process related with the procurement of KKPA estate (Cooperative Credit Scheme) includingKKPA-1 and KKPA-4. KKPA land came from direct delivery from the member of cooperation to the KUD (Village Cooperative Unit).


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 pay the salary in accordance with the valid regulation (Decree of South Kalimantan Governor number 188.44/0502/KUM/2012 onOctober22nd, 2012. The minimum wage for palm estate sector is Rp. 1,365,000. This commitment is realized in the form of monthly employee’s wage structure in 2013. The determined lowest wage is Rp. 1,392,505 Based on the study to the list of wage in March 2013, wage payment by the company has been following related regulation. For example, employee’s wage on behalf of H. Budiarso is Rp. 1,483,500,-. There is a Collective Labor Agreement for the period of 2012-2014. It has been approved by the Labor and Transmigration Minister number B.98/PHIJSK-PKKAD/PP&PKB/VI/2012 on June 6th, 2012 and Company Regulation in 2012-2014 approved by Labor and Transmigration Agency of Tanah Bumbu Regency Number 560/483/PP/Naker/2012 onJuly10th, 2012 - 2014. The company has several facilities such as one door housing area/family, 1 unit of drilling well that can serve 10 houses, 1 mosque, 1 L300 car to pick student and deliver moms to the posyandu/integrated medical service (based on the log car data on April 4th, 2013). There is an officer at the day care on behalf of Ms. Suparni. She is paid by the company per each working day. KKPA 4 has 1 praying house, 1 drilling well for employee housing (40 houses), residential area (1door/family), and 1 L300 car for the delivery of student to the school. There is also Letter of Agreement, The number of Letter of Agreement is 033/KKPA-1/SPK/KL/13 concerning the agreement of fresh fruit bunch transportation between KKPA-1 and Mekar Sari KUD (Village Cooperative Unit) Section 14 Working Safety subsection 2 that each unit of contractor should have and install safety net and sub section 3, the


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contractor should comply the regulation of K3/Occupational Health and Safety valid in the company, such as: a. All operators must turn the vehicle’s lights at the plantation area during the day, b. all operators should wear APD/Personal Protective Equipment (helmet and safety shoes), c. all operators should have valid driver license and politely behave. Similar with MA, the company shows the recording of training for the use of Personal Protective Equipment by contractor of fresh fruit bunch transportation. Section 15 describe about the procurement of Jamsostek/Social Assurance of Labor facility for contractor’s workers. There is Letter of Agreement. The number of Letter of Agreement is 109/KKPA-4/SPK-LKL/IV/13 between KKPA-4 and Mustika Warni (contractor) for fresh fruit bunch transportation. The safety provisions are written in section 14. Each contractor should have and install safety net and sub section 3, the contractor should comply the regulation of K3/Occupational Health and Safety valid in the company, such as

a. All operators must turn the vehicle’s lights at the plantation area during the day, b. all operators should wear APD/Personal Protective Equipment (helmet and safety shoes), c. All operators should have valid driver license and politely behave.

Similar with MA, the company shows the recording of training for the use of APD/Personal Protective Equipment by contractor of fresh fruit bunch transportation. Section 15 describe about the procurement of Jamsostek/Social Assurance of Labor facility for contractor’s workers.


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.

The management of KKPA PT. SHE has the Guidance of Sustainable Plantation Management (Number of Policy 724/TQEM-SPMS/09). At point 5, there is a social policy related with the freedom to form a worker union. There is also a document of Collective Labor Agreement (PKB) for period of 2012-2014 section 8 subsections 1. It states that the employer admitted that worker union is a legal organization that can represent and act for the name of all the member of union. There is a summary of Minamas Collective Labor Agreement Extension Agreement in 2012-2014 held at Novotel Hotel, Surabaya on February 22nd, 2012. It was attended by 2 employers, 7 witnesses, 2 representatives of workers and 7 witnesses. It was also completed with the minutes of meeting and the result of discussion. The management of KKPA (Cooperative Credit Scheme) PT. SHE also showed :

1. Document of Collective Working Agreement for the period of 2012 – 2014 by Business Group of PT. Anugerah Sumber Makmur and PT. Minamas Gemilang with Minamas Plantation Workers & Non Workers Federation Union of PT. Anugerah Sumber Makmur & PT. Minamas Gemilang. (It has been approved by the Ministry of Labor and Transmigration, Directorate General of Industrial Relationship Development and Labor Social Security on June 19th, 2012 with the number Kep.98/PHIJSK-PKKAD/VI/2012 on behalf of: Directorate General: R. Irianto Simbolon, SE. MM).

2. Document of Bylaw Unions of Workers at KKPA (Cooperative Credit Scheme) &Palm Oil Mill at Mustika PT. Sajang Heulang (It was approved by the Chairman of Trade Union of Workers at KKPA (Cooperative Credit Scheme) &Palm Oil Mill at Mustika, PT. Sajang Heulang onJanuary7th, 2013).

3. Document of bylaw Unions of Workers at KKPA (Cooperative Credit Scheme) &Palm Oil Mill atMustika PT. Sajang Heulang, completed with the figure of meeting in order to establish the union and list of attendance. It was attended by 9 participants from KKPA (Cooperative Credit Scheme) 1- 5 (Signed by 5 Chairmen of the Unions of Workers at KKPA 1 - KKPA 5 on January 7th, 2013).

4. Certificate Document on Behalf of Achmad Raihani/Trustees 1/Head of Labor Development and Monitoring, the Social, Labor, and Transmigration Agency, Tanah Bumbu Regency onMarch13th, 2013 state thatKKPA (Cooperative Credit Scheme) PT. SHE has registered the workers union at the Social, Labor, and Transmigration Agency, Tanah Bumbu Regency.

There is a minutes of meeting during the establishment of workers union of KKPA (Cooperative Credit Scheme) PT. SHE. It was conducted on February 15th, 2013 and attended by the representative of eachKKPA (Cooperative Credit Scheme). It was attended by 16 participants.



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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.

The organization has a document about Sustainable Plantation Management Guideline (Number of Policy is 724/TQEM-SPMS/09). It regulates social policy. At point 6, Plantation Upstream Indonesia does not use under age workers (kids). It is also stated in the Collective Working Agreement (PKB) for the period of 2012-2014 in the section 16 Workers Recruitment, sub section 1.1.2.2 general requirement that must be conducted during recruitment of worker candidate is the minimum age of 18 years old at the recruitment process. There was no worker below 18 years old at KKPA 1 and KKPA 4. It can be seen from the document of Worker Register. Based on the study to the document, the youngest worker was Muksin. He was born on August 17th, 1994. There was a report about socialization of worker union about the restriction to recruit under age worker. The socialization was conducted on May 2nd, 2013. It also can be seen from the employee data at KKPA 4 in 2013, for example, Yatin Rinto Rifa’i was born on June 10th, 1994.


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 company does not condone any act of discrimination during the implementation of its operational activity. It is stipulated in the Sustainable Plantation Management Number of Policy 724/TQEM-SPMS/09, on 08/27/2010 page 13 of 31, point 1 states that all staff/worker should be fairly treated in recruitment, progression, condition, and work overview irrespective of race, degree, race, gender, color of skin, imperfection/disability, orientation of sex, membership of organization, political view, religion, and age. Memorandum was also available for the promotion of staff on June 10th, 2011 from the Head Plantation Upstream Indonesia, number 333k-HRM-VI-11, PROMOTION OF STAFF AND NON STAFF: It contains 1. Background, 2. Terms of promotion, 3. Process, 4. Appendix about the sample of form for Promotion of Staff and Non Staff and Summary of Proposed Prospective Trainee. There is an Analysis and Proposal of Level Promotion for Staff, Monthly Worker an SKU in 2011-2012. It contains the position of level this year, proposal of level promotion from the estate manager to GM Estate, and proposal from SGM Plantation Operation KAL-SUL. Based on the study of document, data of KKPA 1 and KKPA 4 employee can be seen in the document of “List of Employee at KKPA 4 2013” in 2013. Recruited employee comes from various ethnic groups. For example, there were 42employees were approved and verified for level promotion at SKU in 2012 by GM HRM. An example, a promotion on behalf of Sumanto. His last position was harvesting porter and he was then promoted to be harvesting foreman (SKU level), the number of decree was 029/SK-PROM/SKU-KPPA-1/VI/2012.


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.

PT SHE has determined the policy for sexual harassment prevention and reproduction rights protection inSustainable Plantation Management page 13 of 31, Social Policy point 4 states: to develop and implement the policy in protecting female worker from any sexual harassment and crime and protecting rights related with female reproduction. The management of KKPA (Cooperative Credit Scheme) PT. SHE has Sustainable Plantation Management (Number of Policy 724/TQEM-SPMS/09) page 13 of 31, Social Policy point 4 states: to develop and implement the policy in protecting female worker from any sexual harassment and crime and protecting rights related with female reproduction. There is also policy in Collective Labor Agreement/Company Regulation in 2012 – 2014 namely after birth days off section 33 subsection 1: maternity/miscarriage, sub section 2 paid rest. Section 34 sub section 1 point 1.6 for period/menstruation leave for 2 days. The management of KKPA (Cooperative Credit Scheme) PT. SHE has established internal organization to protect


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female workers namely Gender Committee on July 1st, 2011 by Mr. Udin L. Lasiata (SM at KKPA).A promotion letter number 001/KKPA-SHE/SK/VII/11/G is available. Ms. Susilowati was promoted as the Chairman of Gender Committee Board. There is a KKPA 1 management policy about period leave for 2 days and birth leave for 1.5 months before birth and 1.5 after birth. It is stipulated in SE No 262/KKPA1-INTR/I/2013/SE, KKPA-4 direct referring to the Collective Labor Agreement of employee in 2012-2014 section 33 concerning leave rights granting. There is a lockout policy for pregnant woman and breastfeeding mom for two years after birth. It is stipulated in the memorandum number KKPA1-INT/274/V/12/SE and number 02/VI/2013/KKPA-4 (KKPA 4). However, the management of KKPA 1 and KKPA 4 determine the border for job that cannot be conducted by pregnant woman and breastfeeding mom to avoid discrimination indication. Maternity leave right and break right are regulated in Collective Labor Agreement of employee in 2012-2014 section 33 concerning leave rights granting. There is a Gender Policy approved by HPU Indonesia (Mohd Ghozali Yahya) in April 2011. There is a mechanism of complaint submission, sexual harassment prohibition, and discrimination prohibition to woman (Number 028/PSQM-UM/VII/2012). KKPA 4 and KKPA 1 have determined SOP as the guidance of Gender Committee Policy Implementation at PT SHE. Number of document is KP/02, on April 1st, 2012, by using complaint form such as appendix number 9.3 (number of document is 700/PD-KG/10.


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

Decree of fresh fruit bunch price determination is issued by Plantation Agency of South Kalimantan Province every month. For example, the price determination of fresh fruit bunch involves several stakeholders such as representative of farmers, representative of company, representative of government. The result of meeting in fresh fruit bunch price determination is openly announced in KUD (Village Cooperative Unit), company, and office of village. Fresh fruit bunch price determination was conducted by involving several stakeholders such as representative of farmers, representative of company, representative of government. The result of meeting in fresh fruit bunch (FFB) price determination is openly announced in KUD (Village Cooperative Unit), company, and office of village. There is a list of Fresh Fruit Bunch price in March 2012 in the form of matrix. It contains the information of CPO price according to its planting year, etc. There is also Letter of Agreement document describe about the agreement and mechanism of payment signed by two stakeholders (company and contractor). The sample of Letter of Agreement :

Letter of Agreement f or Palm Fruit Transportation. The number of Letter of Agreement is 033/KKPA-1/SPK-LKL/I/13 on behalf of contractor i.e. Mekar Sari KUD (Village Cooperative Unit)

Letter of Agreement for Palm Fruit Transportation on behalf of H. Usman.The number of Letter of Agreement is KKPA-4/SPK-LKL/II/13/098

Contractor payment is conducted right on time in accordance with the agreement of both parties as stipulated in the Letter of Agreement, for example:

There is a Minutes of Meeting of Fruit Transportation Payment f between the Management of KKPA1 to Mekar Sari KUD (Village Cooperative Unit)on March1st, 2013.The number of Letter of Agreement is 033/KKPA-1/SPK-LKL/I/13 as much as Rp 51.035.313,-

There is receipt of plantation management every month and it is reported every year. It can be seen from the document of “Summary of Smallholders Plantation Report at Angsana Village” for the period of 2012/2013.

There is a minutes of payment for the palm fruit transportation to contractor on behalf of H. Usman.The number of Letter of Agreement is KKPA-4/SPK-LKL/II/13/098 as much as Rp 446,610,- on March18th 2013



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

There are several documents related to the contribution of PT. SHE/KKPA to the local development, such as:

Minamas – Sime Darby Scholarship Program 2012 for Diploma III Technology and Production Management, Bogor Agricultural University (IPB) (Memorandum No. 027 – HRM-17-III-12 on March9th, 2012).

Minamas – Sime Darby Scholarship Program 2010 for Diploma III Technology and Production Management, Bogor Agricultural University (IPB) at KKPA 1 on behalf of Kusna Faradhel (Intern at Pinang Sebatang Estate).

The summary of payment to local contractor (Please see 6.10). Other type of contributions from company to the community around the company’s area is the development of palm plantation area through KKPA (Cooperative Credit Scheme) program for 16,000 hectares (productive plants for 16,000 hectares). It involves 3,258 members. Based on the data of KKPA (Cooperative Credit Scheme) member, KUD Tuwuh Sari(Village Cooperative Unit)and Community Development/CD SHE, the detail ofKKPA (Cooperative Credit Scheme) member is listed below: Bakarangan Village- 45 members, Kuranji Village - 20 members, Tiberao Panjang Village - 16 members, Angsana Village - 129 members, Sebambam Lama Village - 331 members, Waringin Tunggal Village - 507 members, Giri Mulya Village - 494 members, Mustika Village - 527 members, Karang Mulya Village - 894 members, and Karang Indah Village - 295 members.


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.

Not Applicable. During the implementation of surveillance-2, there was no new plantation at the operational area of KKPA-1 and KKPA 4 Estate. The last planting was conducted in 2006.

Status: Not Applicable

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.



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



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



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.

Not Applicable.


ASSESSMENT REPORT


During the implementation of surveillance-2, there was no new plantation at the operational area of KKPA-1 and KKPA 4 Estate. The last planting was conducted in 2006.


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.



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.



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 monitoring and implementation action plan in plantation and mill activities. It is presented in RKL/RPL document for the period of July – December 2011. There is also sustainable improvement plan written in the Plantation Advisor and Mill Advisor. It describes about the plan to decrease or mitigate any identified negative impact, such as:

- Land and water conservation by making silt pits at the block, road side drain, beneficial plant planting, and U-shape front stacking.

- Water efficiency by using condensate water as water dilution source to press station by pumping and filtering.

- Water efficiency by using turbine cooling water to be returned to water treatment system and reused in processing.

- Safety work sign boards making.

- Solid waste decreasing, shells was formerly stored for sale. Now, it is used as the boiler fuel for processing activity at the mill.

- Bund making at the end of application waste pool at the block (flatbed) to avoid any spill and pollution in the outside area of Land Application during the full time because of rain.

- Planting species of tree that able to absorb water in the riparian area of PT.SHE’s location in order to return in as High Conservation Value area.



ASSESSMENT REPORT


3.2. Summary of Assessment Report of Supply Chain

Clause (Module D) CPO Mills - Segregation 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.

Angsana Mini POM , SHE have procedures and work instructions to ensure implementation of supply chain system, as follow : a. SOP Angsana Mini POM refer to Technical guidelines for palm oil mill 1, 2 and administration that appropriate with

Memorandum of Head Plantation Operation No.POD-UM-154/VII/2010 dated July 26, 2010 which explain :

FFB Receipt No.110/POD-FAC/07, Sterilization No.. 110/POD-FAC/07, striping No. 110/POD-FAC/07, Digesting No. 110/POD-FAC/07, pressing No. 110/POD-FAC/07, Purification (clarification) No.110/POD-FAC/07, Separation of kernel and fiber No. 110/POD-FAC/07, Kernel Station No. 110/POD-FAC/07, Palm Oil storage No. 110/POD-FAC/07.

Angsana POM have SOP Identification and traceability Products at POM Minamas Plantation No.501/SHE-AMF-03/12 approved on October 20, 2011 by POM Manager and estate manager

SOP Identification and traceability Products at POM Angsana Mini PT Sajang Heulang Minamas Minamas Plantation No.RSPO/65/SCPP/SHE that explain segregation model in the supply chain

b. Personnel who responsible in these requirements include:

Manager of Angsana Mini POM: store and maintain all documents and records of all raw materials, supporting materials used in the production process and the quality of the final product.

Assistant Plantation Sustainable Quality Management (PSQM): examine the quality of FFB at POM and make recapitulation daily.

Laboratory Assistant: analysis and test quality of raw materials and products at all stages of production process Angsana Mini POM.

Assistant / Senior Assistant / Manager Bulking are responsible for transportation CPO and PKO products from POM to bulking station.


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

Angsana Mini POM, SHE have documentation system for receipt and processing of FFB certified, among other: a. FFB delivery Ticket b. Weigh tickets c. SIME Weight application program that explain origin of FFB (Division, block harvest, planting year, the number of fruit

bunch) d. Document production recapitulation of certified RSPO and non RSPO certified certified every month

FFB processed in Angsana Mini POM, mostly come from nucleus RSPO certified PT.SHE (Pantai Bonati) where not all FFB processed is not RSPO certified because there is FFB non RSPO certified from smallholders (KKPA1 and KKPA 4 ) that full managed by PT . SHE


2 Purchasing and goods in

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


ASSESSMENT REPORT


Angsana Mini POM, SHE shown the documents to verify FFB volume of certified and non-certified products in documents to separated certified RSPO and non-certified RSPO. Angsana Mini POM, SHE has determined Segregation in the application of Supply Chain Model. In the next period , smallholders KKPA-1 and KKPA-4 have acknowledged supply material of FFB certified. Documentation is done by Angsana Mini POM with marked documents of FFB certified using the stamp "RSPO certified" and "non- RSPO certified ".


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

Since July 8, 2012 until Surveillance-2 (May 1, 2013), Angsana Mini POM listed claim against CPO products of 5,033.7 tonnes (18.61% of the claim) and the Kernel of 986.47 tonnes (19.45%). The amount of product that can be claimed by Angsana Mini POM did not exceed from projection : a. 27,048 tons of CPO b. 5,071 tons of Kernel Angsana Mini POM, SHE will give information to Mutu Agung Lestari if there is excess production than projection.


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.

All recording and reporting has been made and stored fully by company. Storage system in the form of soft copy documents in the System Application Program (SAP), SIME Weight program and hard copy (FFB delivery Ticket, weigh Tickets, Delivery orders) are stored in the administration room of Angsana Mini POM


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

Angsana Mini POM, SHE have determined shelf life and shown records related to FFB receipts until the oil storage in storage tank. For example: Daily reports, data of entry and processed FFB, factory utilization, quality and capacity CPO and Kernel, Quality of oil in storage tanks, and Data of Kernel and CPO delivery (Delivery Order) and document Process Control Report for 5 years. All recording and reporting documents have been stored properly at the office of Angsana Mini POM


3.3 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.

CPO and Kernel that are produced in Angsana Mini POM, did not all products can be claimed as RSPO certified product. The products that can be claimed is derived from the nucleus SHE (Pantai Bonati Estate), while derived from smallholders (KKPA 1 and KKPA 4) cannot be claimed as a certified product. All FFB receipts and shipments CPO and Kernel of Angsana Mini POM accounted well for the three-month period in Monthly FFB document production and document delivery CPO and Kernel.


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, SHE shown evidence of trade documents such as sales contracts that describe the products certified and used Segregation models, such as: 1. Sales Contract No.0016/SHE/KTR-MKS/LOK/II/2013 dated February 27, 2013 that explained:

a. Company buyers


ASSESSMENT REPORT


b. Products purchased (CPO) c. Quality (FFA 5.00% Max, Moisture and Impurities 0.50% Max) d. Quantity 1.000,000 Kg e. Term of Delivery with delivered (franco) f. Delivery Period March 2013 g. Payment Terms 98% before delivery h. Price

2. Sales Contract No.00124/SHE/KTR-IKS/LOK/II/2013 dated February 22, 2013 that explain: a. Company buyers b. Products purchased (CPO) c. Quality (Moisture, Impurities, Dirt and Shell 16.00% Max) d. Quantity 300,000 Kg e. Term of Delivery with Ex Mill (Loco) f. Delivery Period February 2013 g. Payment Terms Advance payment 98% before delivery h. Price i. Customs terms


4 Sales and goods out

4.1 The facility shall ensure that all sales invoices issued for RSPO palm oil delivered include the following information: (a) The name and address of the buyer (b) The date on which the invoice was issued (c) A description of the product, including the applicable supply chain model (Segregated) (d) The quantity of the product delivered (e) Reference to related transport documentation

Angsana Mini POM, SHE shown invoice documents of RSPO certified products and used Segregation models, such as: 1. Invoice No. 00342/SHE/III/2013 dated March 6, 2013 with amount of 980,000 kg of CPO for Sales Contract and

Delivery Order No.00163/SHE/KTR-MKS/LOK/II/2013 No.00247/00163/03/13/L-SHE -MKS. 2. invoice No.00338/SHE/II/2013 dated 28 February 2013 with amount of 294 000 Kg Kernel for Sales Sales Contract

No.00124/SHE/KTR-IKS/LOK/II/2013 dan Delivery Order No.00141/00124/03/13/L-SHE-IKS

Document Invoice is contained information, such as (a) Name and address of buyer (b) invoice date issued; (c) description of the product; include supply chain model (segregation) (d) The number of products (e) Reference to the relevant transport documentation


5 Processing

5.1 The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oil is kept segregated from non certified material including during transport and storage and be able to demonstrate that is has taken all reasonable measures to ensure that contamination is avoided. The objective is for 100 % segregated material to be reached. The systems should guarantee the minimum standard of 95 % segregated physical material9; up to 5 % contamination is allowed.

Angsana Mini POM have procedures and records that describe the separation of RSPO-certified products in the transport and delivery mechanisms to ensure protected from contamination. Documents and records verification of the separation of certified products is available at Angsana Mini POM office.


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


ASSESSMENT REPORT


Angsana Mini POM shown evidence of documentation for RSPO certified product such as CPO and kernel that can be tracked. This is supported by the following documents:

a. Daily Production report of Angsana POM describe of

FFB processed

Utilities

Outcomes and Quality of CPO

Outcomes and Quality of Kernel

CPO delivery

Kernel delivery

Production of empty fruit bunch

Production of shell

Production of waste

The number and origin of FFB received

FFB Quality

Water Usage

Losses Oil, Unstrapped Bunch, Nuts

Stock and Quality of CPO in Bulking

Stock and Quality of CPO in Storage

Stock CPO

Stock Kernel

Stock and Quality Kernel in POM

Production Fiber and Shells

Data Delivery (Shipping) CPO and Kernel b. Shipping Documents of CPO and Kernel c. Working Sheet Oil Extraction (Ritchie and Beseet) d. Working Sheet Kernel Extraction (Ullage) e. FFB Receive Detail Report By Supplier f. Weight Ticket g. FFB delivery Ticket

Based on document review dated 2 May 2013 note that the production of CPO and Kernel can be traced back to the origin of suppliers estate. All documents properly recorded and stored by the Angsana Mini POM, SHE.


5.3 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 operator conforms to these requirements for segregation

The crush is covered through a signed and enforceable agreement

Angsana Mini POM, SHE only sell Palm Kernel and not to cooperate with Kernel Crushing Plant.


6 Training

6.1 The facility shall provide the training for all staff as required to implement the requirements of the Supply Chain Certification Systems

SHE has conducted training of supply chain model comprehension for FFB receipt until despacth palm oil in the form of Supply Chain Training Program for PT Sajang Heulang, Angsana Mini POM that was held on April 23, 2013 in the meeting room Angsana Mini POM and attended by 9 employees of Angsana Mini POM, SHE Training documents are available and stored properly at Angsana Mini POM office.


7 Claims


ASSESSMENT REPORT


7.1 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.

Sales of CPO and PK claimed from Angsana Mini POM, SHE make claims for certified products according to RSPO Communication and Claim. The claim process use E-trace by UTZ.



ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo

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

X or√

S-2 SHE has logo and certificate approval/permit number MUTU-RSPO/006.b √

Status: Full compliance

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

X or√

S-2 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 RSPO Partial Certification.

Total companies observed (0.5 √Y) Where Y is the total of uncertified RSPO registered company. The Management Unit name : PT Guthrie Pecconina Indonesia (KKPA Sungai Jernih). Date of Observation: 29 January 2013 – 2 February 2013

2.1

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

X or√

There is evidence of law fulfillment include: 1. Tenure of land compile with UU. 5 year 1960 on Agrarian Principles, namely HGU Certificate No.

664/2003, 552/2003 for an area of 10139.91 ha. 2. Providing social security such as labour social assurance (Jamsostek) compile with UU No. 3 year

1992. 3. Providing equipment Occupational Safety and Health program (K3) for all employees compile with

UU No. 1 year 1970. 4. Environmental management document preparation progress (RKL / RPL) compile with UU no. 23

year 1997. 5. No land clearing by burning compile with UU No. 18 year 2004. 6. No discrimination against employees compile with UU No. 21 years 1999 - ratification of the ILO's

anti-discrimination stated in Collective Labor Agreement. 7. Allocating some of the area as a protected area compile with Presidential Decree No. 32 year 1990

and UU No. 41 year 1999 about Forestry. (Identification of HCV by Aksenta in July 2012). 8. Giving wages above the minimum wage. Corporate compliance to legality of land tenure, the implementation of environmental and social governance, labor protection, as well as the submission of the report to agencies (e.g. Environment Agency, Government, and the Department of Forestry and Plantations Musi Banyuasin) stated that the GPI is quite obedient and consistent with the rules.

√


2.2

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

X or√

Company shown the documents of : 1. location Permit compile with Regent of Musi Banyuasin decree No 262 year 2011 covering area of

4,000 ha 2. location Permit compile with Regent of Musi Banyuasin decree No 0217 year 2011 covering area of

2,000 ha 3. Determination of smallholder as 262 Candidates compile with Regent of Musi Banyuasin decree No.

0258 year 2010. 4. Cooperation Agreement with KUD Sinar delima No.001/Plasma/GPI-KUD/I/2012 about development

of Oil Palm Plantation with KKPA Partnership (Cooperative Credit Scheme) 5. Plantation business permit (IUP) smallholder based on regent decree No. 0265 of 2010 (Core 800 ha

and smallholder 1200 ha in Gajah Mati village, Sungai keruh subdistrict) and IUP based on regent decree No. 282/KPTS/IUP/DISBUN/2011 (Core 1600 ha and smallholders 2400 ha).

6. Distribution plan had already plots, is waiting approval from village cooperative unit (KUD) distribute to smallholders

There is statement of the land handover from land owners such as pedestal Business Right and letter of recognition. For example, land handover statement on behalf of Aziz Ali with pedestal Business Rights and letter of recognition dated July 9, 2007 for an area of 2.8 ha approved by Head of Gajah mati Village and a letter of recognition on behalf of Aziz Alifor land area of 2.8 hectares in Gajah Mati Village on February 24, 2008 and registered in Subdistrict Office No.593/126/2009/XII/2008 dated December 3, 2008.

√


ASSESSMENT REPORT



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√

There is Consultation and Communication procedures to Community (RSPO/6.2/KKM), Society Complaint Handling (RSPO/6.3/PKM), Employee Complaints Handling (RSPO/6.5/PKK) and conflict resolution (RSPO/2.2/PK) . It had socialize to communities around the estate are (1) Talang Piase Village (May 14, 2011), (2) Talang Ilo III village (May 27, 2011), (3) NAPAL Village (May 29 20 110) and (4) Karang Ringin Village II (May 26, 2011), (5) Rantau Kasih Village (May 13, 2011). The socialization Record consist of time, place, material, photo and attendees list. Technical of disputes solution as effective, timely and correct manner describe in mechanism (flow chart) the complaints handling as follow : Complaints from internal / external received by section head and note it, then delivered to the manager to make decision or if needed to consult with head department and last made decision. Complaints from workers can solve in two days (counting from the complaint entered into management until realization decision), while society complaints handling is depending on the type of complaints, if the complaint was mild and the facilities available, it can solve more or less three days, but if complaints is significant and need consultation with head office management, approximately one week.

√


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√

Procedures to identify and calculate the compensation for loss of legal or customary rights over the land covered by procedure (SOP) Conflict Resolution (RSPO/2.2/PK) and have been socialized All evidence related with conflict resolution is available in form of statement of the land handover from land owners such as pedestal Business Right and letter of recognition.For example land handover statement on behalf of Aziz Ali with pedestal Business Rights and letter of recognition dated July 9, 2007 for an area of 2.8 ha approved by Head of Gajah mati Village and a letter of recognition on behalf of Aziz Alifor land area of 2.8 hectares in Gajah Mati Village on February 24, 2008 and registered in Subdistrict Office No.593/126/2009/XII/2008 dated December 3, 2008.

√


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√

There is identification of HCV conducted in July 2011 by AKSENTA. These documents ensure that no area of HCV is used for development of new KKPA plantations.

√


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√

Procedures to identify and calculate the compensation for loss of legal or customary rights over the land covered by procedure (SOP) Conflict Resolution (RSPO/2.2/PK).There is no contents revisions or mechanisms of compensation calculation. It is similar to previous audits. There is statement of the land handover from land owners such as pedestal Business Right and letter of recognition. For example, land handover statement on behalf of Aziz Ali with pedestal Business Rights and letter of recognition dated July 9, 2007 for an area of 2.8 ha approved by Head of Gajah mati Village and a letter of recognition on behalf of Aziz Alifor land area of 2.8 hectares in Gajah Mati Village on February 24, 2008 and registered in Subdistrict Office No.593/126/2009/XII/2008 dated December 3,

√


ASSESSMENT REPORT


2008. Development of smallholder based on agreement between KUD Sinar delima with PT GPI in accordance of Cooperation Agreement No.001/Plasma/GPI-KUD/I/2012 about development of Oil Palm Plantation with KKPA Partnership (Cooperative Credit Scheme). Determination of smallholder as 262 Candidates compile with Regent of Musi Banyuasin decree No. 0258 year 2010.


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√

There is statement of the land handover from land owners (pedestal Business Right and letter of recognition) that voluntarily agreed. For example, land handover statement on behalf of Aziz Ali with pedestal Business Rights and letter of recognition dated July 9, 2007 for an area of 2.8 ha approved by Head of Gajah mati Village and a letter of recognition on behalf of Aziz Alifor land area of 2.8 hectares in Gajah Mati Village on February 24, 2008 and registered in Subdistrict Office No.593/126/2009/XII/2008 dated December 3, 2008.

√



ASSESSMENT REPORT


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

3.5.1 Identification of Findings, Corrective Actions and Observations at S1 Assessment

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

CAR 2012.

01

Minor 4.2.1

Soil survey. 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

Estate Minor S2 SHE must conduct soil analysis are planned every 5 years to improve soil fertility

May 3rd, 2012.

Company through Minamas research center have evaluated soil analysis in Pantai Bonati Estate and Mustika Estate, and reschedule in June 2013

Closed with

observation

May 3rd, 2012

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, hazardous waste 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 SHE must conduct health check periodically to workers who work at high risk such as station operator, chemical sprayers, hazardous waste warehouse workers, fertilizer workers, at least 1 year according to Manpower Regulation No 2/1980 about employment medical examination.

May 1st, 2013.

The company has conducted a routine medical checkup for worker who work in high risk station by Man power agency (company hygiene & occupational health) Banjar Baru on February 4th, 2013

All records of examination are available at Central Clinic

Closed May 1st, 2013

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 SHE must monitor completeness of first aid box.

May 2nd, 2013.

Based on observation at Angsana Mini POM (central warehouse and administration office), is known that First Aid Emergency equipment have been checked regularly and complete

Closed May 2nd, 2013


ASSESSMENT REPORT


CAR 2012.

04

Minor 5.3.1

Hazardous material waste handling. Based on field check 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 accordance with Kep Bapedal (environment impact management body decree) number 5 year 1995 regarding Hazardous label and symbol.

POM Minor S2 SHE must handling hazardous waste in accordance with regulations (KepBapedal No.5/1995)

May 3rd, 2013.

Angsana Mini POM has shown evidence of Hazardous waste handling that contaminated directly into soil by trap and harder floor so avoid contamination directly into soil

Improvement records such as documents and picture

Closed May 3rd, 2013

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 SHE must ensure facilities and infrastructures of fire fighting are available and ready to use.

May 1st, 2013

Based on field observation is known Fire Extinguisher, for example in KKPA-1 in good condition and routine maintenance every month. The records is available and well maintain in estate office

Closed May 1st, 2013

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-certified FFBs.

Mill Minor S-2 Angsana Mini POM must have procedures for receiving and processing to separate FFB from certified and non-certified RSPO.

May 1st, 2013.

SHE has conducted training of supply chain Angsana Mini POM on April 5th, 2013 in Meeting room Angsana Mini Mill and attended by



ASSESSMENT REPORT


5 mill staff Angsana Mini POM

The records and training material are available and keep well in Angsana POM office

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 Angsana Mini POM must have documents of receiving and processing of FFB from certified and non-certified RSPO.

May 2nd, 2013

Angsana MiniPOM has shown documents of separation of RSPO-certified and non RSPO certified


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 Angsana Mini POM must show the document of recording and balancing all FFB RSPO certified and delivering CPO and Palm Kernel.

May 2nd, 2013

Angsana Mini POM has shown records and balance sheet of FFB, CPO and Kernel that RSPO certified and non RSPO certified


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 Angsana Mini POM PT.SHE can provide information in the Sales Contract documents that specify Mass Balance model of supply chain and the products is RSPO certified products.

May 2nd, 2013

Angsana Mini POM has shown sales contract that describe supply chain used is Mass Balanced

In next period, when KKPA-1 and KKPA-4 has been certified so Angsana Mini POM will use supply chain model of segregation


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 PT.SHE must conduct training related to implementation of Supply Chain Certification System for all staff.

May 2nd, 2013

Angsana Mini POM has conduct supply chain training on April 5th, 2013 for all mill staff against product traceability and supply chain model that used



ASSESSMENT REPORT


The records and training material are available and keep well in Angsana Mini POM office

CAR 2012.

13

SC 6.1

RSPO certified claims support. Angsana Mini POM have not been 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.

Mill Minor S2 PT. SHE should use claims of RSPO certified according to RSPO Guidelines for Communication and Claims in Sales Contract, Delivery Order and Invoice.

May 2nd, 2013

Angsana Mini POM has shown claim to support RSPO certified palm oil in accordance with RSPO Guidelines for Communication and Claims in Sales Contract, Delivery Order and Invoice, It also has integrated inside E-trace (UTZ) to support sales of RSPO certified products



ASSESSMENT REPORT


3.5.2 Identification of Findings, Corrective Actions and Observations at S2 Assessment

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

CAR 2013.

01

Major 4.8.1

Welder Training Program. Based on documents review and interviews with workers welding at Angsana Mini POM (on behalf Nurrohmansyah and Andre K) is known that they not have welder certificate as proof of worker competencies and Angsana Mini POM has not yet programmed training to obtain welders certificate

Mill Major July, 3rd 2013

Company must comply training programs and the realization for employees in accordance with their competence in each position

June 3rd, 2013 Angsana Mini POM have made training program for welders in May 2013, It will be observed by team auditor against fulfillment of the training plan (indicator 4.8.2)

Close with observation

June 3rd, 2013

CAR 2013.

02

Minor 5.3.1

Implementation of Hazardous Waste Management Plan. Based on review documents of hazardous waste monitoring and balance, also field observations in hazardous waste temporary warehouse Angsana Mini POM note that the company did not maintain hazardous waste in accordance with applicable SOP (SOP No. 709/TQM-ESH/10). It related with shelf life of hazardous waste not exceed 90 days.

Mill Minor S-3 Companies must conduct hazardous waste management in accordance with applicable SOP

3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 Minor 6.9.2 Company can review the policy for pregnant and lactating women for 2 years after giving birth in KKPA 1 (No. Memorandum KKPA1-INT/274/V/12/SE)

3.5.4 Noteworthy Positive Components

No Ref Std Descriptions

1 Minor 6.5.1 company has provided adequate facilities for employees

2 6.11 SHE have contributed to the welfare of surrounding community through KKPA programs (cooperative credit scheme) 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 Agency Tanah Bumbu district. LSI estate has been given a warning letter related to revocation of environmental documents (EIA) of PT LSI are considered invalid and automatically it will affect the business license of PT LSI.

LSI felt decision of Forestry and Plantation Agency, Tanah Bumbu district was not appropriate and has submitted objections to State Administrative Court.

This condition will observe in next assessment, because LSI have documents of Business Registration License (SPUP) No.458/Menhutbun-VII/2000 dated 25 April 2000 with extensive plantation and palm oil mill capacities 60 Tons FFB / hour, it was complied with Regulation (Permentan) No.26 Year 2007 about plantation business permit. (Indicator 2.1.1)

Environment Agency, Tanah Bumbu district.

Environmental document (EIA) PT LSI has been revoked and deemed invalid based on Decree of Regional Environmental Agency Tanah Bumbu district Number 660/44/BLHD/2012 dated May 2nd, 2012

Revocation based on Decree of Tanah Bumbu Regency No. 380 year 2010 about eligibility Plantation and mill activities and of PT Ladangrumpun Suburabadi.

LSI have environmental documents (EIA) which is legal based on Decree of Tanah Bumbu Regency No. 380 year 2010 on Feasibility of environmental Plantations and Palm Oil Mill Activities PT Ladangrumpun Suburabadi. The documents were prepared under direction of BLHD Tanah Bumbu district,so that LSI objected that EIA document was held to be invalid.

Environmental documents (EIA) PT LSI has been deemed invalid based on decree of Regional Environmental Agency Tanah Bumbu district Number 660/44/BLHD/2012 dated May 2, 2012, the revocation based on decree of Tanah Bumbu Regency year 2010 on Feasibility of environmental Plantations and Palm Oil Mill Activities PT Ladangrumpun Suburabadi.. (Indicators 2.1.1 and 5.1.1)

Manpower and Transmigration Agency, Tanah Bumbu district . In the operational area PT LSI is not employment issues. LSI has been trying to apply and fulfill all labor laws.

LSI committed to comply with all relevant regulations and respects the right of all personnel to form and join trade unions and prohibited all forms of discrimination.

LSI has endeavored to comply with all applicable labor laws.

Farmers & Community Leaders, Kuranji Village Positive impact of KKPA program (cooperative credit scheme), among others:

Economic development for rural residents (income source).

Open new job opportunities for people who work in the oil palm plantation sector (such as harvester and plant maintenance)

Village road maintenance

Aid of sacrificial animals during eid al-adha


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Aspirations:

Community expected assistance in education aspect (eg, procurement package books)

Business Profits (SHU) of KUD Tuwuh Sari should be clearly explained and distribute to all farmers, not only to village representatives.

The aid of pack books have not been made but company give scholarship for high school graduates to go to college An Explanation of SHU has been done, and about explanation directly to all farmers will be coordinated with the KUD.

KKPA management should implement the CD / CSR program based on community’s priority

Farmers Bekarangan village Positive impact of KKPA program (cooperative credit scheme), among others:

Economic development for rural residents (income source).

Village road maintenance Assistance have been given by KKPA management such as:

Aid of sacrificial animals during Eid Idhul

Cleaning / washing Bekarangan River

Drains water to support agricultural activities in the village

Villagers Bekarangan think that Bekarangan River may have contaminated mill waste, especially during the rainy season; one indication is reduction of fish in the river.

Waste management system in the MTF has been done in the best possible and monitored in line with SOP. Inlet bekarangan river not only from the MTF but also from other places / other businesses.

KKPA management should be socialized information about estate and mill management to the community around.

Board of KUD Tuwuh Sari 1. KKPA program funding sources are:

Part I consists of 4,000 hectares, is the source of their funds from Bank Indonesia Liquidity Credit (KLBI) through Bank Permata.

Part II consists of 12,000 hectares, is sources of funds from Bank Niaga.

2. Most of the seedlings planted are kind of Marihat from PPKS Medan and the rest are London Sumatra seed. KKPA reported business operations (production & maintenance costs) in each KKPA management (KKPA 1-5) through the smallholder Estate Management Reports (LPKP) to KUD Tuwuh


ASSESSMENT REPORT




Sari. KUD board then submit it to the representatives of farmers in the village.

3. KUD Tuwuh Sari conduct Year End Meeting every year, the last was conducted on February 16, 2013 (available Appendix attendance list 457 farmers). There is also Accountability Reports of Board and Supervisor KUD Tuwuh Sari Year 2012

4. KUD Tuwuh Sari does not conduct training for farmers because it is made by KKPA management. KUD only socialized mechanism of KKPA management, among others:

5. Status of Bank guarantees and repayment mechanism of farmers loan FFB price fluctuations is always follow the market price and according to Plantation Agency, South Kalimantan.

Aspirations: 1. KUD suggested to buy shell from Mustika factory can be a

new business because there are buyers who are interested in shells

Company canot sell the shells because it use as a source of renewable energy / fuel boiler to drive the turbine generator as power source of electricity in mill.

KKPA management should facilitate other business opportunity for KUD Tuwuh Sari.


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:

Company Name

Mutuagung Lestari

Management Representative

Lead Auditor

Mohamad Pirabaharan

Octo Nainggolan

Monday, 10 June 2013

Monday, 10 June 2013


ASSESSMENT REPORT


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

No Institution/NGO/Community Address Phone/Email Form of Contact

Date of Contact

1 Tanah Bumbu District of Plantation and Forestry Agency

Jl. Dharma Praja No. 2 Gunung Tinggi

0518 – 607 6051 / 0518 – 39425 [email protected]

interview 30 April

2013

2 (Social Labour Agency of Tanah Bumbu District

Jl. Dharma Praja No. 4 Gunung Tinggi, Kec. Batu Licin

0518 – 71135 [email protected]

interview 30 April

2013

4 Environment Management Body of Tanah Bumbu District

Jl. Transmigrasi No. 94 Km. 3,5 72271

[email protected] interview 30 April

2013

5 Kuranji Village Kuranji village, subdistrict of Kuranji, District Tanah Bumbu, South Kalimantan.

interview 20 March 2013

6 Bekarangan Village Bekarangan village, subdistrict of Kuranji, District Tanah Bumbu, South Kalimantan.


7 KUD Tuwuh Sari Purwodadi village, subdistrict of Angsana, District Tanah Bumbu, South Kalimantan.



ASSESSMENT REPORT


Monday, 29 April 2013

06.00 - 08.00

08.30 - 14.00

15.00 – 15.30

Jakarta - Banjarmasin Banjarmasin – PT LSI Opening Meeting

ON / MES / SL / MAY / SP



Tuesday, 30 April 2013

08.00 – 12.00 Public Consultation Agency (BLH, BPN, Disbun, Disnaker) Surrounding Villages .

ON / SP

MES / SL / MAY

Wednesday , 1 May 2013

14.00 - 17.00

Field observation Angsana Mini P.O.M

Documentation, workers interview (payment, training, facilities, racial harassment), safe working practices, safety and health equipments, fuel, water usage, process station, waste water treatment plant, workshop, hazardous waste storage and handling,

Public consultation and verification nonconformities in surveillance -1 (previous Audit) clarification

ON / SL

MES / MAY / SP

Thursday, 2 May 2013

08.00 – 12.00

14.00 – 17.00

Observation at KKPA 1 Estate

Harvesting, Maintenance (spraying and fertilizing)

Housing, Facilities workers, Hazardous waste management, health facility

Operational Boundary and utilization areas, Conservation Areas

field observation clarification Internal stakeholders consultation (Worker union, Gender committee)

ON / SP

MES / SL / MAY

ON / SL / MES

MAY / SP

Friday, 3 May 2013

08.00 - 09.00

09.30 - 11.00

12.00 - 17.00

Preparation assessment conclusions results (Noncompliance) Closing Meeting PT SHE - Banjarmasin

ON / SL / MES / MAY / SP

Appendix 2. Assessment Program

DATE 2-3 May 2013

ACTUAL PROGRAM PROCESSES / CLAUSES TO BE AUDITED AUDITOR


ASSESSMENT REPORT


Appendix 3. 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)