public report sustainable forest management...

Public Report Sustainable Forest

Management System

Ownership of this report and the information contained within remain the property of AJA Europe

AJA EUROPE PUBLIC AUDIT REPORT - SFM TO BE SUBMITTED TO THE CLIENT, IFCC AND TO AJA EUROPE

Document: Report Format Public – IFCC

Issue: B

Date: 02 September 2015

Page : of 8

SITE NAME (Legal Name):

ADDRESSES OF COMPANY SITES VISITED INCLUDING COUNTRY (If more than 4 sites have been visited please add additional rows):

DATE OF EACH SITE VISIT:

PT. Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang

Indragiri Hilir Regency and Pelalawan Regency, Riau Province, Indonesia. March 15 to 18 ,

2016

SITE NAME (Legal Name):

ADDRESSES OF ADDITIONAL SITES NOT VISITED BUT STILL COVERED BY THE REGISTRATION INCLUDING COUNTRY – TO BE COMPLETED IF CLIENT IS UNDER A SITE SAMPLING AUDIT PLAN (If more than 4 additional sites have been registered please add additional rows)

N/A

REF No: ADDRESSES OF INSTALLATION SITES (CLIENT’S CUSTOMER SITES) VISITED AND NOT COVERED DIRECTLY BY THE COMPANY REGISTRATION INCLUDING COUNTRY (If more than 2 installation sites have been visited please add additional rows)

N/A

Brief Description of the concession and its natural and socio-economic conditions.

PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang is the holder of HTI IUPHHK based on Minister of

Forestry No. SK.19 / Menhut-II / 2007 dated January 5, 2007 and Addendum IUPHHK SK-HTI PT Satria Perkasa Agung

Unit Koperasi Tani Hutan Sinar Merawang based on the Ministry of Forestry number: SK.56 / Menhut-II / 2013 dated

January 23, 2013 regarding the stipulated working area of IUPHHK-HTI PT Satria Perkasa Agung Unit Koperasi Tani Hutan

Sinar Merawang, covering an area of 10,070 hectares in Riau Province.

PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang is administratively located in the District of Simpang

Kanan, Kateman Simpang Village, District Pelangiran, Indragiri Hilir, Riau Province, Indonesia.

PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang is in the form of cooperation between PT Satria

Perkasa Agung and Koperasi Tani Hutan Sinar Merawang as outlined in the Joint Agreement in order to form a Joint

Venture Plant Forest Partnership that was entered into on February 20, 1999.



Issue: B


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In accordance with the requirements of the requisite IFCC Standard, forest areas registered for certification shall not

include those resulting from the conversion of primary or secondary forests after December 31, 2010. Hence, of the total

forest area under Management Unit PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang, the scope of

certification is restricted to an area of 8,680.7 hectares, with a further area of 1,389.3 ha failing to qualify.

PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang has prepared a spatial plan of the effective working

area in reference to EIA Document and Document of Macro / Micro Delineation. This consists of staple plant area of 5,474

ha (54.4%); featured plant area of 529 ha (5.3%); livelihood plant area of 1,014 ha (10.1%); protected areas of 2,710 ha

(26.9%); and infrastructure area of 343 ha (3.4%).

PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang has implemented the principle of continuous

improvement. Principle P (Plan), D (Do), C (Check), A (Action) is implemented on production, ecological and social aspects.

PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang already has and implements a management plan and

other documents in accordance with the use of forest areas and based on the spatial planning. These include the Work

Plan for Utilization of Industrial Plantation Forest (RKUPHHK-HTI) in Plantation Forest for the 10-year period (2008 to

2017), continuous improvement of the long-term planning documents (RKUPHHK-HTI Year 2008-2017), and revision of

RKUPHHK-HTI due to the publication of the Ministerial Decree on Establishment of Boundaries Addendum of working

area, and the completion of IHMB activities and additions and shift in acreage of livelihood plant area and feature plant

area.

The management plan (RKUPHHK-HTI) includes the following: a) silvicultural systems; b) aspects of the prerequisites

(organizational plan and employment, the boundary plan, spatial planning, restructuring area plan, plan of forest

inventory, prospective import and use of equipment, procurement plan for facilities and infrastructure, plans to open the

forest area); c) the preservation of the production (procurement plans for seedlings, plan for land preparation, planting

plan, maintenance plan, harvesting plan and marketing plan results); d) preservation of the environment (protection plans

and forest protection, and management plans and environmental monitoring); e) social preservation (community

development plans and partnerships, institutional plan); and f) monitoring and evaluation over five-year period.

Management Unit PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang has prepared and implemented

management plans to take into account the principle of conservation of forests, namely:

1) The production function wherein Acacia crassicarpa is the plant type developed taking into account the peat bog soil,

with recycling of cutting of staple plant areas every five years, and division of the production area into working areas

of 25 hectares. In regard to operations in the field, the Management Unit has been preparing and conducting

arrangement of the working area, land preparation, planting, crop maintenance, inventory of planted forest areas,

environmental management, and CSR / CD program.

2) The ecological function wherein the company has been establishing and maintaining protected areas such as water

catchment areas and the preservation of biodiversity, animal corridors, and the preservation of germplasm in-situ. To

achieve this, the Management Unit of PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang has allocated

a germplasm conservation area (KPPN) of 1,074 ha and regional wildlife protection (DPSL) of 1,636 ha. In addition, the

management of biodiversity by PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang has identified

through inventory and mapping of the distribution of flora and fauna that are protected, endemic, rare and

endangered species / endangered species and their habitats throughout its working area. Moreover, forest protection

activities are carried out in accordance with the identification of potential interference to the operations of the

Management Unit of PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang, including among others: soil

and water conservation, waste management B3, pests and plant diseases, encroachment on the area / illegal land

occupation, fire on land or forest



Issue: B


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3) The social function wherein the Management Unit has allocated an area of plant life the results of which will be used to

improve the welfare of society, and implementation of the CSR / CD program for villagers living around the working

area of PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang. In addition, efforts have been made to

create jobs for local people, either as permanent employees or daily labor. Moreover, the Management Unit has been

carrying out sustainable forest management in association with recognition and respect of the rights of local

communities around the working area; implementing sustainable forest management activities associated with the

'relationship' between PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang and the surrounding

community; implementing sustainable forest management activities related to the fulfillment of the rights of workers

according to regulations; and implementing sustainable forest management activities related to occupational health

and safety. The villages identified around the working are Kampung Pulau Muda and Kampung Danau Desa.

The Management Unit has optimized the use of forest resources to ensure efficient production, reduce waste, and

minimize the damage caused due to logging.

1) PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang already has and implements SOP Micro Planning

for Harvesting Industrial Plantation Forest (HTI). The goal is effectiveness of harvesting in order to achieve optimal

timber production and supply of land ready for planting with attention to safety, environmental, and social impacts.

Among others, this includes clarification of plot boundaries; boundaries of protected areas for environmental and

social aspects; optimization of the skidding distance plan in regard to slope steepness, groove, the position of roads,

canals, trenches, and landing areas, paying attention to the density of the roads, as well as to the ease of work and

supervision.

2) Harvesting activities are monitored and evaluated through SOP Verification Havex (Harvesting Excellent) and SOP

Implementation Havex.

3) Havex is performed by P & P (Production and Plantation) supervisors and is used for the assessment of land

preparation (Land Preparation without Fuel).

4) The criteria assessed in Havex are loss of wood, wood residue, stump height, spreading / matting row, skid track /

waterlogged, handover area (HOA) time, and the area of contribution.

After the HOA has been carried out a wood leakage assessment (WLA) is conducted by an independent team (PAT) of

Sinarmas Forestry Perawang. WLA assessments can result in penalties for the contractor.

PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang has drawn up a plan for rehabilitation of crop acreage

seeded with tree planting of endemic species (Bintangur (Callophylum pulcherimun), Tenggek birds (Euodias Lunu-

ankenda), (Syzygium cerinum), charcoal (Diospyros puncticulosa), Tebasah, Rengas (Gluta aptera) and Jackfruit (Artocarpus

heterophyllus)), with 2,000 seedlings needing rods. Seed have been made available from the nursery in District Simpang

Kanan.

PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang has been identifying significant impacts in the EIA

documents, which include component / sub-component environmental parameters, comprising physical-chemical

elements such as micro-climate, physiography of land (physical, chemical properties, subsidence, erosion), hydrology

(water surface flow, debit fluctuation, sedimentation), water quality. The biology component covers vegetation (potential

and results of non-timber forest), wildlife (habitat, property type, and dispersion), biota bodies (abundance & diversity).

Impact evaluation potential includes source of impact and positive / negative impact. Environmental impact assessment

includes forecasts of major and important impacts (pre-construction, construction and post-construction stages) and

evaluation of important impacts (sustainability of ecological and production functions). The action plan, forecasts of

significant impacts and impact evaluation of major and important impacts are described in the environmental

management plan (RKL).



Issue: B


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Management Unit has also conducted environmental impact assessment on the potential impacts on flora and fauna that

are protected, endemic, rare and threatened species / endangered, according to the scale and intensity of forest

management, and to reduce the impact / interference, namely:

1) Allocate wildlife conservation area, germplasm area, and the area of plant seed as biodiversity conservation area that

serves as a place of refuge and pockets of natural forest for species.

2) Marking limits and maintaining boundaries of the protected areas, installation boards / signpost information and / or

prohibition, as well as the protection and security of protected areas.

3) Rehabilitation of protected areas

4) Extension to the community

5) Monitoring and evaluation of biodiversity in protected areas and forest plants with availability of plot observation /

monitoring of biodiversity (transecting lines).

The Management Unit monitors the use of hazardous substances toxic waste (B3), by way of recording, storing and

transmitting to a third party (transporter) in accordance with the procedure. In addition, the Management Unit controls

forest fires and illegal logging activities by carrying out routine patrols and outreach to the community. The Management

Unit already has adequate facilities and infrastructure in order to prevent forest and land fires. In integrated pest control,

the Management Unit has implemented an integrated pest management program in accordance with documented

procedures that are to be found in the handbooks:

1) Introduction to Guidance Document for Control of Pests for Acacia and Eucalyptus Plantation.

2) Introduction to Guidance Document for Control of Pests for Acacia and Eucalyptus in the Nursery.

3) Guidance Document for Recognition and Weed Control in HTI.

4) Control of pests and disease is carried out based on the results of monitoring; if the population and intensity of the

attack is still below the threshold level then control is not performed.

PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang has conducted studies related to the impact study pre-

forest resource management plans in a bid to identify the negative impact that may result from the management plan and

utilization of SDH following efforts that should be made to minimize the impact. Those efforts that can significantly

minimize impacts of implementation have been translated to form the Forest Village Community Empowerment Program

and / or Community Development, which has been rolled over from the RKTUPHHK-HTI period of 2011 - 2015.

The Management Unit’s Operational Plan for Forest Village Community Development (PMDH) and Realization of

Community Development and Social Impact Assessment Report is evidence of implementation efforts and measures taken

by PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang to minimize the negative effects on the villagers

around the HTI concessions, in particular direct or indirect impact on the socio-cultural parameters.

Community Development activities in the form of capacity building and / or infrastructure that have been brought into

effect are: (1) assistance with temporary teacher’s salary for each of the target villages, Pulau Muda, and Sinar Danau

Tanjung Simpang; (2) physical support in the form of marginal, school buildings, Kampung Danau, Tanjung Simpang

Village; (3) provision of scholarships for underprivileged students, Segamai Village and Labuhan Bilik Village; (4) iron

plate for manufacturing culverts, Kampung Pulau Muda; (5) Preparation of a sports field, Kampung Pulau Muda; (6)

financial assistance for motorcycle repair business, Kampung Pulau Muda; (7) Making of new fields, help with nets to catch

fish, Kampung Pulau Muda Village and Kamoung Sinar Danau Tanjumg Simpang; and (8) fish cultivation for people in the

working area of the Management Unit.

The Management Unit has implemented workers' rights in accordance with the agreement between the Management Unit

and the workers party, which are recorded in the form of a Joint Working Agreement (PKB). Meanwhile, the effectiveness

of the rights associated with external workers is based on mutual agreement between the parties and the Management



Issue: B


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Unit as outlined in the agreement, a clause based on the scope of work having not been effective.

Management Unit has and implements SMK3 and has documented the results of the hazard identification, risk assessment,

determination of risk control, and implementation of internal audit activities health and safety (K3). To support these

activities, the Management Unit has provided training or training related activities to the parties such as health and safety

training, and accident investigation training to personnel working and shaping the composition of P2K3 to synergize the

implementation of activities at the operational level.

Prior to conducting the Stage 2 Audit of the Management Unit of PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar

Merawang, PT AJA Certification Indonesia conducted public consultation, commencing February 29, 2016, asking

stakeholders to provide feedback on PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang. The Public

Consultation was uploaded to the website of PT AJA Sertifikasi Indonesia (www.ajaindonesia.com), sent to the parties via

email and / or mail, and published in local newspapers. There was no input from the public consultation and PT AJA

Sertifikasi Indonesia audit team also gathered information from media reports about PT Satria Perkasa Agung Unit

Koperasi Tani Hutan Sinar Merawang Such reported cases are considered to be part of the audit process carried out by PT

AJA Sertifikasi Indonesia.

The Management Unit has identified all the necessary requirements for this certification process, comprising legal aspects

that include compliance with international rules and regulations and conventions. The management system has been built

to cover all activities in the field of certification, which is registered for certification of an area of 8.680,7 ha

Findings on the certified client certified client conformity with the certification requirements and description of critical issues in relation to the conformity.

The results of the Stage 2 Audit, revealed two (2) minor non-conformities. The Management Unit PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang has taken remedial action of the discrepancies identified and has shown a serious commitment to realize sustainable forest management.

No Non-conformity/NC Corrective action to be undertaken Category

1 Management Unit does not have a documented procedure traceability system that allows identification of all harvested wood products at all stages of transport, and the source of the wood in the forest area, in reference to the Regulation concerning the administration of Timber Forest Products from Forest Plants in Production Forest. Ref I.1.11

The SOP wood traceability system has been revised in accordance with the Regulation concerning the administration of Forest Products originating from Planted Forests in Production Forest.

Minor

2 1. The Management Unit of PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar Merawang does not have licenses TPS B3 for storage of hazardous waste.

2. There is not yet managed waste, i.e. waste that has been stored beyond the permitted time scale (90 calendar days), which among others, includes: pesticide packaging, used oil, waste from clinic,

Storage (TPS) and hazardous wastes (B3) licenses have been renewed

Minor



Issue: B


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used filters.

Clause Ref I. 6.6.

Conditions under which the certificate is issued

The certificate is valid until 01/07/2019 provided that PT Satria Perkasa Agung Unit Koperasi Tani Hutan Sinar

Merawang completes all corrective actions according to the proposed time schedule and does not have the same problem

at the next surveillance visit. If non-conformities are not closed at the next surveillance, the certificate will be suspended

until such time as AJA is able to perform a closeout visit.

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