rspo annual surveillance assessment 1 public … · gunung tua abadi balian sawit estate 2013 pt....

PT. TÜV NORD Indonesia

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ASA‐1 AUDIT REPORT AEK TARUM 030313ASA1 of 40

RSPO ANNUAL SURVEILLANCE ASSESSMENT 1

PUBLIC SUMMARY REPORT

PT. TÜVNORD Indonesia System Certification Management

Has assessed

PT.AEKTARUM- SAMPOERNAAGRO

Belida Mill and its Supply Bases

for Compliance to RSPO Principles and Criteria

for Sustainable Palm Oil Production

Date of assessment:

June 18-22, 2012

Report Number: P&C-1-126

Head Office System Certification Management Perkantoran Hijau Arkadia Tower F, 7th Fl Suite 706 Jl. Let. Jend. TB Simatupang Kav. 88 Jakarta 12520 – Indonesia Tel : +6221 7883 7338 Fax : +6221 7883 7336

Laboratory Division Jl. Jababeka XVII E Blok U No. 27B Kawasan Industri Jababeka I Cikarang Bekasi 17530 – Indonesia Tel: +6221 898 403 18 – 19 Fax : +6221 898 403 20

Branch Office Intiland Tower 11th Fl, Suite 1E Jl. Panglima Sudirman 101-103 Surabaya 60271 - Indonesia Tel : +6231 53 444 54 Fax : +6231 53 4 44 82

President Director: Mr. Robert Napitupulu

Email: [email protected]


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

List of Contents 1 Scope of The Certification Assessment ..............................................................Error! Bookmark not defined.

1.1 Type of Assessment (Mill, Estate and Mill, etc.).....................................Error! Bookmark not defined. 1.2 Location, mill, and or hectare statement ................................................Error! Bookmark not defined. 1.3 Description of Mills and Its Supply Bases (Fruit Sources)......................................................................6

1.3.1 Description of Mill(s)..................................................................................................................7 1.3.2 Description of Estate (Fruit Sources) ........................................................................................7

1.4 Date of Planting and Cycle.....................................................................Error! Bookmark not defined. 1.4.1 Replanting Program for Each Estate.........................................Error! Bookmark not defined. 1.4.2 Time-bound Plan (for other management units and justifications). ...........................................7

1.5 Other Certifications Held (ISO, etc.).......................................................Error! Bookmark not defined. 1.6 Organizational Information/Contact Person .........................................................................................11 1.7 Tonnages Certified ...............................................................................................................................11

2 Assessment Process.........................................................................................................................................11 2.1 Assessment Methodology (Program, Site Visits) .................................................................................11

2.1.1 General Overview....................................................................................................................11 2.2 Date of Next Surveillance Visit .............................................................................................................13 2.3 Lead Assessor/Assessment Team.......................................................................................................14

2.3.1 Lead Assessor: Anita Masduki ................................................................................................14 2.3.2 Assessment Team Members...................................................................................................16

2.4 Certification Body .................................................................................................................................18 2.5 Outline of How Stakeholder Consultation Was Managed ....................................................................19

2.5.1 Summary .................................................................................................................................19 2.5.2 List of Contacted Stakeholders ...............................................................................................19

3 Assessment Findings ........................................................................................................................................19 3.1 Summary of the Findings by Criteria ....................................................................................................21 3.2 Identified Non Conformances...............................................................................................................33

3.2.1 Detail of Non Conformity .........................................................................................................33 3.2.2 Resume of Audit Results.........................................................................................................36

3.3 Issues Raised by Stakeholders ............................................................................................................36 4 Certified Organization’s Acknowledgement of Internal Responsibility ..............................................................38


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4.1 Formal Sign-off of Assessment Findings..............................................................................................38


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1 Scope of the Certification Assessment

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

Thestandard requirementsoftheIndonesianNational InterpretationofRSPO Principles andCriteria (RSPOINA-NIWG)versionMay2008wereusedtoassesstheoperationsofthePalmOil Millandthe supply base of FFB for PT. AEK Tarum Sampoerna Agro (herein after as ATSA).

1.2 Location of Mill and Estates GPScoordinates

Code

Unit

Location

Longitude(E)

Latitude(S)

BLDM

BelidaMill Desa SumberBaru C1, Kecamatan Mesuji, Kabupaten Ogan Komering Ili,Province South Sumatera

104º 58'09,82"

03º 50'13,93"

BLDE

BelidaEstate

Desa SumberBaru C1, Kecamatan Mesuji, Kabupaten Ogan Komering Ilir, Province South Sumatera

105º 01'27,4" 03º 49'42,7"

MSJE

MesujiEstate

Desa Surya Adi, KecamatanMesuji, Kabupaten Ogan Komering Ilir, Province

South Sumatera

105º 01'36,5" 04º 02'59,7"


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Figure 1-1Map of Location of PT ATSA


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Figure 1-2MapofBelidaMillanditsSupplyBase

CITRASATELITLANDSATPANKROMATIK PT.AEKTARUM SAMPOERNA


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GPS Code Name of Mill and Estate Location

Longitude (E) Latitude (S)

BLDM

BelidaMill Desa SumberBaru C1, Kecamatan Mesuji, Kabupaten Ogan Komering Ili,Province South Sumatera

104º 58'09,82"

03º 50'13,93"

BLDE

BelidaEstate

Desa SumberBaru C1, Kecamatan Mesuji, Kabupaten Ogan Komering Ilir, Province South Sumatera

105º 01'27,4" 03º 49'42,7"

MSJE

MesujiEstate

Desa Surya Adi, KecamatanMesuji, Kabupaten Ogan Komering Ilir, Province South Sumatera

105º 01'36,5" 04º 02'59,7"

1.3 Description of Mill and Its Supply Bases (Fruit Sources)

1.3.1 Description of Mill

Mill Capacity (ton/hour)

Certification volume

2010(ton)

Actualproduction

In 2011(ton)

Actualproduction

in2012 (ton)

Projected

production

2013 (ton)

Name ofmill

CPO PK CPO PK CPO PK CPO PK

BelidaMill 60 20,937 5,457 24,807 6,228 22,559 6,022 21,333 5,334

1.3.2 Description of Supply Bases (Fruit Sources)

Table 0-1 Description of supply base (fruit sources) Estates

Certificationvolumein2010 (ton)

Actualproduction in2011 (ton)

Actualproduction in 2012 (ton)

Projectionin2013 (ton)

BelidaEstate 58,678 51,373 56,400 61.022 MesujiEstate 40,547 41,309 46,292 45.646

Smallholders 66,016 43,061 49,350 -


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1.3.3 Time-bound Plan

Company Mill/ Estate Unit Proposed Year for certification

Mesuji Smallholder 2013 PT. AekTarum

Belida Smallholder 2013

Permata Bunda POM 2013

Permata Bunda Satu Estate 2013

Permata Bunda Dua Estate 2013

Permata Bunda Smallholder 2013

PT. Mutiara Bunda Jaya

Harapan DuaSmallholder 2013

Sumber Sawit POM 2013

Sumber Sawit Estate 2013

PT. Gunung Tua Abadi

Balian Sawit Estate 2013

PT. Bina SawitMakmur Surya Adi Estate 2013

Selapan JayaPOM 2014

Gading Jaya Estate 2014

Limau Mungkur Smallholder 2014

Limau Manis Smallholder 2014

Limau SundaiSmallholder 2014

Sungai IndahSamllholder 2014

Sungai Pangeran Smallholder 2014

PT. Sampoerna Agro

Gading Jaya Smallholder 2014

Telaga HikmahPOM 2016

Hikmah1 Estate 2016

Hikmah2 Estate 2016

Hikmah3 Estate 2016

Hikmah4 Estate 2016

Hikmah5 Estate 2016

Hikmah6 Estate 2016

PT.Telaga Hikmah

KKPA Smallholder 2016

Sungai Rangit POM 2015

Baboti Estate 2015

Rauk Naga Estate 2015

PT. Sungai Rangit

Ranggam Estate 2015


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Sungai Sagu Estate 2015

Waringin Estate 2015

Sukamara Estate 2015

Telaga BintangEstate 2015

Prestasi Estate 2015

Sungai Rangit Smallholder 2015

1.4 Year of Planting and Replanting Program

1.4.1 Planting profile for each estate Planted Area (ha) Year of

Planting BelidaEstate Mesuji Estate

Total Planted Area (ha)

1989 1840.1 1840.1

1990 710.6 710.6

1991 1641.2 101.5 1742.7

1992 108.0 47.9 155.9

1993 139.6 139.6

1995 66.5 66.5

1996 51.0 51.0

2002 30.3 44.0 74.3

2005 44.6 44.6

2007 10.6 10.6

2009 57.4 57.4

2010 7.7 27.6 35.3

2011 89.2 89.2

2012 19.2 19.2

TOTAL 2,750 2,287 5,037


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1.4.2 Five year replanting program for Each Estate from 2013 to 2017

Planted Area (ha) Year of Replanting BelidaEstate Mesuji Estate

Total Area to be planted (ha)

2013 500.00 500.00

2014 500.00 500.00 1,000.00

2015 710.30 601.50 1,311.8

2016 608.00 431.90 1,039.90

2017 639.60 639.60

2018 141.20 141.20

TOTAL 2,599.10 2,033.40 4,632.50

1.5 Other Certifications Held (ISO, etc.)

Certification Name Certification Num.

Date of Certification

Valid until

ISO 9001:2008 (Re Certification) 16 100 0936 2009-05-10 2012-05-09

ISO 14001:2004 (Re Certification) 08 104 0105 2009-05-10 2012-05-09

1.6 Date of Planting and Cycle

1.6.1 Replanting Program for Each Estate Planted Area (ha) Year of

Planting BelidaEstate Mesuji Estate

Total Planted Area (ha)

1989 1840.1 1840.1

1990 710.6 710.6

1991 1641.2 101.5 1742.7

1992 108.0 47.9 155.9

1993 139.6 139.6

1995 66.5 66.5

1996 51.0 51.0

2002 30.3 44.0 74.3

2005 44.6 44.6


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2007 10.6 10.6

2009 57.4 57.4

2010 7.7 27.6 35.3

2011 89.2 89.2

2012 19.2 19.2

TOTAL 2,750 2,287 5,037

1.7 Organizational Information/Contact Person

Organizational Information

Principle Contact Person Mr.H.IndraPangasian

Position QESSeniorManager

Business Address PT.AekTarum–SampoernaAgro(PT.ATSA)

Jl.BasukiRahmatNo.788

Group Name (If applicable) SampoernaAgro

Office Telephone Number +62711-813388

Fax +62711-811585

E-mail address [email protected]

Web site www.sampoernaagro.co.id

1.8 Tonnages Certified

Tonnages Certified

Name of Mill BelidaMill

Location Desa SumberBaru C1, Kecamatan Mesuji, Kabupaten Ogan Komering Ili,Province South Sumatera

CPO Production (ton) 22,559

PK Production (ton) 6,022

2 Assessment Process 2.1 Assessment Methodology (Program, Site Visits) 2.1.1 General Overview

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

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

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

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


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such as RSPO manual, procedures, and working instructions. The surveillance audit was conducted on

June19-22, 2012.


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Table 2-1 Audit Schedule Date Location P&C Main Activities

Day. 1

19.06.2012

Belida Office: Stakeholder meeting

- 1.1, 1.2 - 2.2

- 6.1-6.11

- Request of info and respons - Land-use right, customary right, actual and budgeted

production - Wages,Trade Union, Anti Child Labour/ Discrimination/Sexual

Harrasment, Payment to Outgrower, CSR

Belida Mill

- 1.1, 1.2 - 2.1, 2.2, 2.3, 3

- 4.1 – 4.8 - 5.3, 5.4,5.6 - 6.1-6.11

- Request of info and respons - Regulation compliance, land-use right, customary right, actual

and budgeted production - SOP, Water Mgt - Waste Mgt, Agrochem. - Wages,Trade Union, Anti Child Labour/ Discrimination/Sexual


Day. 2

20.06.2012

Belida Estate - 1.1, 1.2 - 2.1, 2.2, 2.3, 3

- 4.1 – 4.8 - 5.1-5.6 - 6.1-6.11


and budgeted production - SOP, Soil Control, Errosion Control,Water Mgt, IPM,

Chemical Mgt - EIA, HCV, Burning Issues, Waste Mgt, Agrochem. - Wages,Trade Union, Anti Child Labour/ Discrimination/Sexual


Day. 3

21.06.2012

Mesuji Estate - 1.1, 1.2 - 2.1, 2.2, 2.3, 3

- 4.1 – 4.8 - 5.1-5.6 - 6.1-6.11





Day. 4

22.06.2012

Mesuji Estate - 1.1, 1.2 - 2.1, 2.2, 2.3, 3

- 4.1 – 4.8 - 5.1-5.6 - 6.1-6.11





Day 5

23.06.2012

Belida Office All Closing Meeting

Chaired by the assessment team leader.

Presentation of findings by the assessment team.

Questions and answers.

Final summary by team leader.

2.2 Date of Next Surveillance Visit

The next annual surveillance audit (ASA-2) will be scheduled on June 2013. Surveillance audit is

conducted once a year for a 5-year period of validity certificate..


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2.3 Lead Assessor/Assessment Team

2.3.1 Lead Assessor: Anita Masduki

Qualification Compliance

Educational Background

A minimum of post high school (post secondary school) training in, and either agriculture/forestry, environmental science or social science;

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

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

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

Magister of Social Education, Ibnu Khaldun University, Bogor-Indonesia, 2007-200

Candidate Doctoral Program of Education Management, Ibnu Khaldun University,Bogor-Indonesia, 2010-present

Yes (Y)

Working Experience • At least 5 years

experience in area of work relevant with the audit (e.g., oil palm management; agriculture, ecology; social science);

• Environmental/ ecological , safety and health assessment

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

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

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

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

Y

RSPO Training:

Trained in practical application of the RSPO criteria, and RSPO Certification System;

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

Workshop on Indonesia Sustainable Palm Oil, February 2012, Indonesia Palm Oil Community, Jakarta Y

Completed ISO 9001/14001/18001Lead Auditor course and audit experiences.

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

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

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

Y

Experience related to RSPO:

A supervised period of training in practical

Having more than 15 days of audit in more than palm oil companies (Feb 2011 – June2012) 1. RSPO PNC Auditor for Main Audit of Mill and Estates London Sumatera Musi

Banyuasin, Palembang-Indonesia, Feb. 21-25, 2011 (5 days) 2. RSPO PNC Auditor for Pre Audit-1 of Salim Ivomas Perkasa Mill and Estate, Riau-

Y


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assessment against the RSPO criteria or similar sustainability standards, with a minimum of 15 days assessment experienceat least 3 assessments at different organisations

Indonesia, April 25-28, 2011 (4 days) 3. RSPO Supply Chain Lead Auditor for Main Audit of Wilmar Group, 2 mills and 2

refineries, Sumatera and Kalimantan-Indonesia, May 23-25,June 13-17, 2011 (7 days) 4. RSPO PNC Auditor for Main Audit of Mill and Estates London Sumatera, Site North

Sumatera-Indonesia, June 20-28, 2011 (9 days) 5. RSPO PNC Auditor for Tapian Nadenggan-SMART Group, July 4-8, 2011 (5 days) 6. RSPO PNC Lead Auditor for Pre Audit of PT ANJA Agri Binanga Mill and Estates, Site

ANJA Binanga & Tungkal Ulu, North Sumatera -Indonesia, Juli 18-20, 2011 (3 days) 7. RSPO PNC Lead Audit for Main Audit of Inti Indosawit Plasma Estates, Site ANJA

Binanga and Tungkal Ulu-Indonesia, Sep 12-14, 2011 (3 days) 8. RSPO PNC Lead Auditor for Pre Audit -2 of Salim Ivomas Perkasa Mill and Estates,

Riau-Indonesia, September 26-30, 2011 (5 days) 9. RSPO PNC Lead Auditor for Main Audit of PT ANJA Binanga Mill and Estates, Site

ANJA Binanga & Tungkal Ulu, North Sumatera -Indonesia, October 11-14, 2011 (4 days)

10. RSPO Supply Chain Lead Auditor for Main Audit of Dr. Oetker Foods Industry, Oerlinghosen-Germany, November 7-11, 2011 (5 days)

11. RSPO PNC Lead Auditor for Pre Audit of Austindo Nusantara Jaya Agri Mill and Estates, Site Binanga, North Sumatera -Indonesia, November 28-December 2, 2011 (5 days)

12. RSPO PNC Lead Auditor for Main Audit of Salim Ivomas Perkasa Mill and Estates, Riau-Indonesia, December 19-23, 2011 (5 days)

13. RSPO PNC Lead Auditor for Pre Audit of ATSA Thailand, Feb 8-9, 2012 (2 days) and June 2012 (6 days)

14. RSPO PNC Lead Auditor for Pre Audit of Perkebunan Nusantara !V Mill and Estates, North Sumatera -Indonesia, Feb. 20- 24, and May 28-31, 2012 (10 days)

15. RSPO PNC Lead Auditor for Main Audit of Austindo Nusantara Jaya Agri Mill and Estates, Site Binanga, North Sumatera -Indonesia, March 5-9, 2012 (5 days)

16. RSPO Supply Chain Lead Auditor for pre audit of Lam Soon Thailand, March 13-15, 2012 (5 days)

17. RSPO Supply Chain Lead Auditor for Main Audit of Lam Soon Thailand, April 29-May 5, 2012 (6days)

18. RSPO PNC Lead Auditor for Surveillance Audit of PT Aek Tarum Mill and Estates, South Sumatera -Indonesia, May, 2012 (5 days)

19. Lead Auditor for RSPO New Planting Procedure of First Resources Group, PT BorneoPersada Energy Jaya and Citra Agro Kencana, Indonesia, May, 2012 (4 days)

20. RSPO PNC Lead Auditor for Main Audit of ATSA Thailand, May-June 2012 (6 days) 21. RSPO PNC Lead Auditor for Surveillance Audit of PT Sahabat Mewah Sejahtera Mill

and Estates, Belitung Island -Indonesia, July, 2012 (6 days) 22. Lead Auditor for RSPO New Planting Procedure of First Resources Group, PT Borneo

Surya Mining Jaya and Maha Katya Bersamaa, Indonesia, September, 2012 (4 days)


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2.3.2 Assessment Team Members

1. Yuda Budiutama Qualification


Bachelor degree of forestry (1998-2002) and Magister Science (2010-2012) from Bogor Agricultural University

Working Experience

August 2011-January 2012, PT. Mutu Certification International, Auditor ISO 9001:2008

July 2010-July 2011, PT. Ecosindo Laboranusa, consultant for environmental aspect

July 2005-July 2010, PT. Sucofindo (Persero), Surveyor, Verificator, Auditor, Quality & Environmental Officer

Dec 2002 – June 2005, PT. Putra Sumber Utama Timber-Hasko Group, Engineering Staff (R & D)

May 2002 – Dec 2002, PT. Musi Hutan Persada (Barito Pacific Timber Group), Engineering Staff (R & D)for Industrial plantation forest company

1999-2001, Bina Madani Education Centre, Education counsellor

RSPO Training - 05-10 Maret 2012: Indonesia Sustainable Palm Oil (ISPO) Lead Auditor Training

- January 2012: Indonesia Sustainable Palm Oil (ISPO) Inhouse Training

Other Training August 2009: Personnel competence certification for Environmental Impact Assessment (EIA) Compiler, Indonesian Consultant Expertise Assosciation (INTAKINDO), Jakarta Certificate No. 000037

- May 2009: Contract Management and Negotiation Training, Mandiri Consultant, Jakarta

May 2009: Lead Auditor ISO 9001 : 2008 Training, Sucofindo International Certification Services (SICS), Jakarta.Indonesia

2. Technical Expert : Supijatno (SY)

Qualification


- Doctoraldegreeinagricultureenvironmentfrom BogorAgricultureInstitute(IPB).

Working Experience

Verivication of burned PT. Nabatindo Windu Lestari estate Central Kalimantan. Cooperation between Departement of Agronomy and Hortikulture IPB with PT. Asuransi Takaful Umum, 2012

Development of Minapolitan Regency Tojo Una-una Central Sulawesi Province. Cooperation between P4W LPPM IPB withFishery and Sea Agency of Tojo Una-una Regency

Third Surveilence of PT. Pohon Emas Lestari Plasma, Nunukan Regency, East Kalimantan Province. PT. Primakelola, 2012

Due Deligent of palm oil estate PT Delima Makmur, Singkil

Regency Aceh Nangroe Darusalam province . PT. Sucofindo. 2012

Due Deligent of palm oil estate PT MutingHijau Permai Merauke. URS International, 2008

Preliminary study of palm oil estate establishment PT. Dendymarker Indah Lestari Musi Rawas Regency , South Sumatera Province. PT Primakelola. 2011

Establishment of estate development plan in Musi Rawas Regency. Cooperation P4W LPPM IPB with Musi Rawas Regency Government, 2010

Studi on land suitability for palm oil estate establishment PT. Daya Agro Lestari Musi Rawas Regency, South Sumatera Province. Cooperation between LPPM IPB with PT. Daya Agro Lestari. 2010

Pre Feasibility study on PT. Palmina palm oil estate in Banjar Regency, South Kalimantan. PT. Prima Kelola, 2009

Post Audit on palm oilestatesof PT. Asian Agri Cooperation between IPB with PT. Asian AgrI. 2008

Feasibility study on rubber HTI and palm oil estate establishment in East Kutai Regency, East Kalimantan Province. PT. Prima Kelola. 2008

Preliminary study on establishment palm oil PT. Grand Mitra Utama dan PT. Grand Mitra Bakti, Sintang


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3. T

echnical Expert : Ujang Sheha

4. Ujang Sehabuddin (US)

1 Qualification


Lecturer in Departement of Resources Economics and Environment, Faculty of Economics and Management, Bogor Agricultural University

Working Experience Evaluation of PNPM Green Program in South Sulawesi, North Sulawesi, North Sumatera and Bengkulu Province, World Bank – LPM Equator, 2012

Agricultural Economic and Social expert for RSPO Audit at PTPN IV North Sumatera,PT ANJ Belitung, PT Aek Tarum Sampoerna Agro South Sumatera, RSPO Audit at PT Inti Indosawit Subur, Jambi, 2011-2012

Agricultural Economic and Social expert for Monitoring and Evaluation of SRI Paddy Farm Models in Five Province with Ministry of Agriculture and Bogor Agricultural University, 2011

Agricultural Economic and Social expert for National Board of Climate Change Assessment with PT. Sucofindo, 2011

Agricultural Economic and Social expert for Mapping of Climate Change Vulnerability in North Sumatera Province with National Board of Climate Change and PT. Sucofindo, 2010

Agricultural Economic and Social expert for Problem Identification and Solution of Cocoa Estate Development in North Luwu District, South Sulawesi ProvinceMinistry of National Education- Bogor Agricultural University

Regency, West Kalimantan Province. Cooperation between PT. Prima Kelola and ZTE, 2008

Appraisal of palm oil estate PT. Tahtulindo Agroyaman, PT. Aditarwan, PT. Duta Inti Palma Perkasa Sarolangun regency Jambi and PT. Ekajaya Multi Perkasa, PT. Arta Prigel, Musi

Rawas regency South Sumatera Selatan. PT. Prima Kelola. 2008

Study of PT. Agroraya Gematrans Land potential for palm oil plantation establishment in Keritang, Indragiri Hilir regency Riau province PT. Prima Kelola, 2007

PT. Era Mitra Agro Lestari and PT. Jambi Agro Wijaya palm oil plantation appraisal , Sarolangun regency, Jambi province PT. Prima Kelola. 2007

Appraisal of PT. Solegna Group palm oil plantation, Lahat regency, South Sumatera province. PT. Prima Kelola. 2007

RSPO REQUIREMENT ASSESSOR QUALIFICATIONS COMPLIANCE

Fluent in local languages and English. Local language is Indonesia

All asessor Fluent in Indonesia language and English Y

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

AM, YB Having experience in RSPO P&C Certification audit as well as RSPO Supply chain audit as a trainee.

Y

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

SY Y

Health and Safety assessmenton the farm and inprocessingfacilities.(For

AM Having experience in audit OHSAS 18001 Y


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1.1 Certification Body

PT. TÜV NORD Indonesiais asubsidiary of the German TÜV NORD Group. Our company is a market

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

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

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

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

assessment, PT. TÜV NORD Indonesia was collaborated with TUV NORD Thailand.

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

(IAF) and accredited by DAR–Germany, and locally accredited by the Indonesian Accreditation Committee

example OHSAS18001 oroccupational.Healthand safetyassurancesystem).

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

US Having experience as agricultural social and economic expert in various assessment

Y

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

SY

AM

Having experience for auditing of technical and environmental aspect of palm oil plantation

More than 15 years for preparing the environmental impact assessment and ISO 14001. Preparing ISO 14001 for estates, contractors, power plant, etc. Having experience in lots of Environmental Impact Assessment Project while working in one of environmental consultancy company in 2008

Y

Economic issues AM Having experience in feasibility study of several projects with The World Bank, UNDP, UNIDO

Y


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(KAN). Services provided by the Strategic Business Unit Systems Certifications are: Food Safety

Management System ISO 22000, GMP, HACCP, Information Security Management System ISO 27001,

Social Accountability SA 8000, Medical Device Directive MDD ISO 13485, Occupational Health and Safety

OHSAS 18001, Product Certification: GS-Marking, CE-Marking, SNI Marking, Inspection for ISPS Code,

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

1.2 Outline of How Stakeholder Consultation Was Managed

1.2.1 Summary 2 As part of document review, auditor team has reviewed list of local stakeholders

provided by a. Based on list of stakeholder and the stakeholder’s minute of meeting, auditor team asked company to organize the stakeholder consultation meeting, which was scheduled on May 21, 2012 (see Assessment Process

2.1 Assessment Methodology (Program, Site Visits) 2.1.1 General Overview

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

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

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

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

such as RSPO manual, procedures, and working instructions. The surveillance audit was conducted on

June19-22, 2012.


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Table 2-1 Audit Schedule). All stakeholders were sent a letter which included the agenda of the meeting. They were invited to make any comments on several issues related to them, such as:

• Information about RSPO to the public and stakeholders • Company approach to community development. • Environmental protection. • Biodiversity conservation. • Opportunities for employment. • Provision of housing, sanitation, amenities and educational support. • Participation in decision making. • If there any complaints and grievance, land conflict • Any other issue, both positive and negative that relevance to the assessment.

2.1.2 List of Contacted Stakeholders a. Table 2-1 List of Stakeholder surrounding Belida mill and its supply bases

StatutoryBody Contact Person (if applicableandaddress)

Phone E-mail

Badan Lingkungan Hidup Sumsel

Bpk. Moch. Andi (Kepala Sub Bidang Penataan Lingkungan) Jl. Aerobik No. 4 Kampus POM IX Palembang

0711-355360 0818465152

Depnaker Sumsel

Ibu Intan (Bidang Hubungan Industrial dan Syarat Kerja) Jl. Ade Irma Suryani Nasution No. 1254 Palembang, 30129

0711-354013, 354657, 357293

Dinas Perkebunan Sumsel

Ibu Hj. Sri Murhartani (Kasubdin Industri PrimerPerkebunan) Jl. Jend. Sudirman Km 3,5 No. 563 Palembang

0711-351451

Indigenouspeople

Contact Name (if applicableandaddress)

Phone Email

N/A


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LocalCommunity Contact Name

(if applicableandaddress) Phone Email

Desa SumberBaru (C1) Suradi (KepalaDesa) 081373797696 Desa Mulya Jaya (C2) Dedi Kusnadi (Kepala Desa) 081379606185 Desa Mekar Wangi (C4) Poniman (Kepala Desa) 081632253991 Desa SumberSari (SKPD) Markaban (Kepala Desa) 081632350076 Desa MataramJaya (SP2) Purwadi (Kepala Desa) 081367444289

Workers’Organization Contact Name (if applicableandaddress)

Phone Email

Serikat PekerjaSampoerna Agro

Bpk. I WayanGede Siria (Karyawan di PKS Belida)

085273537326 pks_belida@sam poernaagro.com

LKS Bipartit (Lembaga Kerjasama Bipartit)

Bpk. Uli Yuliana (Karyawan diPKS Belida)

081368369632 pks_belida@sam poernaagro.com

SmallholderCooperative ContactName (if applicableandaddress)

Phone Email

KUD Bina Sejahtera Bpk. H.Marnu Spd. (Ketua KUD) Desa Kertamukti Kec. MesujiRaya, Kab. OKI, Prov. Sumatera Selatan

081367554841

KUD Bina Tania Mulia Bpk. Udin Budiharto (Ketua KUD) Desa Maribaya, Kec. Mesuji, Kab. OKI, Prov. Sumatera Selatan

081532681236 081367327531

Independent supplierof materials andservices

Contact Name (if applicableandaddress)

Phone Email

PTSerumpun Indah Lestari (Suplier Material PKS)

Ibu Noni Jl. Pulau SolarKawasan Industri Medan II, Medan 20252

061-6871221 Fax:061-6871429

PTPupuk Hi Kay(Suplier Pupuk)

Bpk. Lim Pei Yee Jl.Tanah Abang III No 14 Jkt, 10160

021-3502238

CV Musim Sawit (Supplier Material Bangunan)

Bpk. Yanto Jl. Raya Palembang Sekayu KM 18 Palembang

Telp : 0711- 430571

Bengkel Laksmi (Service Kendaraan)

Bpk. Artaman Jl. Mayor Yen, Depan PUSRI

Telp : 0711- 718413

Local NGO Contact Name (if applicableandaddress)

Phone Email


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LSM Peduli Lingkungan Nurdin (KetuaLSM) Alamat : Desa Surya Adi Kecamatan MesujiRaya,

Kabupaten Oki, Sumsel

081271262139

National NGO Contact Name (if applicableandaddress)

Phone Email

Lembaga Bantuan Hukum Palembang

Bpk. Yopie Bharata Jl. Bidar Blok Bno 6

Telp. 62-0711- 512262 Fax. 62- 0711-356153 Hp.08127813755

Email:[email protected]

Yayasan Lembaga Konsumen Palembang (YLKP)

Bpk. Husni Thamrin Jl. Ki. Gede Ingsuro No. 183,28 Ilir Palembang 30142 Indonesia

Telp/Fax. 62- 0711-356132

3 Assessment Findings

3.1 Summary of the Findings by Criteria

Objective evidences were obtained separately for each of the indicators for mills and estates in the certification assessment. The information was comprehensively asked from 1 mill and 2 estates. The results for each indicator from the different operational areas were aggregated to assess to assess the overall conformances of the company’s operations to each criterion. A statement is made for each indicator on the finding. A detailed description of the Non-Conformities is given in Section 3.2.

The following is a summary of the findings for compliance with the RSPO Principles & Criteria for Indonesia (INA)

Table 3-1 Summary of Findings by Criteria

FINDINGS/COMMENTS COMP- LIANCE

Criterion 1.1 (C.1.1) Provide adequate information to other stakeholders on environmental social and legal issues relevant with RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision-making

ATSAstill maintainaprocedureforcommunicatingwithstakeholders(ProsedurKomunikasi,Partisipasi danKonsultasi(P-SAG-RO-QES-07),orCommunication,ParticipationandConsultation)anda mechanism to resolve conflicts (Prosedur Mekanisme Penanganan Konflik (P-SAG-RO-CAS-03), orMechanism toResolve Conflict dated 1September2010). Alltheheadsinthemill/estatesare requiredtoprovideadequateinformationasrequiredbythe RSPOcriteria. Therequestsfor informationarerecordedintheStakeholdersAspiration,copiedtoCorporate AffairsServices (CAS)DepartmentinHeadOffice(1.1.1). During the surveillance audit it was observed 5 request of information from stakeholders asking proposal for social aids, most of them ask for scholl renovation and fertilizer assistant . Theresponse(s)was prepared by the General Affair Department and records shall be kept for 5 (five) years(1.1.3).

Yes

Criterion 1.2 (C.1.2) Management documents are publicly available, except where these are prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes

Allmanagementdocumentson legal, environmental,health safetyand socialissuesarethe responsibility ofCASDepartmentinHeadOffice.Thelegaldocuments,includeIzinLokasi(Site Permit), Izin Usaha Perkebunan(Plantation Operation Permit), HGU(Land Use Title) and the environmentaldocumentsforANDAL(EnvironmentalImpact Analysis)approvedby Badan LingkunganHidupDaerah(BAPEDALDA)TingkatII(RegionalEnvironmentalBodyKabupaten Ogan KomeringIlir(OKI)). Various environmental parametersaremeasured and reportedsix-

Yes


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monthlyinLaporanPelaksanaan RencanaPengelolaanLingkunganHidupdanRencana Pemantauan Lingkungan Hidup(RKL&RPL).SinceATSAisalabour-intensivecompany,itis requiredto comply with themandatorySMK3(Occupational Health and SafetyManagement System).Progress on the Healthand SafetyProgram(K3 program)isreportedregularly tothe Ministry of Labour of Republic of Indonesia(1.2.1).

Alltherecordsareproperlykeptin theCASDepartmentinHeadOffice orGeneralAffairs Departmentineachunitfortheproperperiods,e.g.,safety,healthand environmentreportsfor5 years, social records10years andlegal recordsindefinitely(1.2.2), andareavailableon request. Notwithstanding this,environmentalandsocialdataarepresentedduringtheyearlypublic consultation with stakeholders as part ofits CSRprogram,e.g., Posyandu (integrated healthcare servicepostandhealtheducationtopromotehumanhygiene),sanitationand nutritionintakefor infants,pregnantandbreast-feeding women,foggingtoeradicatemosquitos,agriculturalskills training forthelocals(estate workersand smallholders),skillstrainingforschool teachers, scholarshipsavailable,renovationaidforschools,roads,bridges,treeplanting,wastetreatment forland application such asEFB for plasmaestates.The HCVareasare alsoinformedto stakeholdersto ask their cooperation inprotecting them (HCV areas). Criterion 2.1 (C.2.1) There is compliance with all applicable local, national and ratified international laws and regulations

ATSA and estates have established work instruction used to review any updates related to laws and regulations listedinP-SAG-RO-QES-08:HukumdanPersyaratanLainnya/Rev.0dated1September2009andinP-SAG-RO-QES-12:PemantauandanPengukuranLingkungan&K3, EvaluasiKetaatanHukum/Rev/0dated1September2009 and updatedin every 6 months. Environmental officer in the mill is responsible for the update laws and regulations. If there is any update on law and regulation, its update of the change on laws and regulation will be done and send to the responsible person’s email automatically. List of relevant laws and regulations in Indonesia applicable for both mill and estate was available, included the land right, environment, agriculture on the use of chemical, waste disposal, boiler inspector license, health and safety, and other releted legal requirement. TheQESDepartmentinHeadOfficekeeps trackofits (ATSA’s)legal requirements, includingvalidating/ renewing licensesand permits, and makes sure that they are complied with. ATSA has ISO 14001 certification for its environmental managementandalsoSM-K3for HealthSafetyEnvironment.TheGeneralAffairsAssistant Manageris responsibleforkeepingthemill/estatesoperatingwithinthe nationallaws/ regulations,andis requiredto keepup todate with any changesin thelaws/regulations.

Yes

Criterion 2.2 (C.2.2) The right to use the land can be demonstrated and is not legitimately contested by local communities with demonstrable rights ATSA mill and estates have full the right to use the land for palm oil estate. SMM has license or land permit from the governmental concern such as Tanda Daftar Perusahaan, Daftar Ijin Lokasi, Sertifikat HGU, Ijin Usaha Perkebunan, (Company RegistrationLocation Permit, Certificate ofHGU, and Plantation Permit ). Auditor cheked the validity all of them, and found the compliance to the government regulation. TheboundariesofATSAland wereeasilyidentifiedbeingdemarcatedandtheir identification numbers corresponding withpointsin themapsin HGU(Land UseTitle)registered withBPNKabupatenOganKomeringIlir(NationalLandAgencyofOganKomeringIlir). Scattered boundary stones were encountered along the legal boundaries of all the estates. Most of them were observed to be properly maintained. List and photograph of boundary stones were available and they appeared properly maintained. The legal status of boundary stones was approved by Badan Pertanahan Nasional (National Land Body).GeneralAffairs Department andLegal DepartmentinHeadOfficeisresponsible forresolving any conflictover land. Currently,thereare no claims onATSAland byanyone.

Yes

Criterion 2.3 (C.2.3) Use of land for oil palm does not diminish the legal rights or customary rights of other users, without their free, prior and informed consent. As far as could be ascertained, there is no customary right of other users because all area of land has hold by the facility.

Yes

Criterion 3.1 (C.3.1)


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There is an implemented management plan that aims to achieve long term economic and financial viability The companyis committed toeconomic and financialsustainability ofthe palm oil business. An annualplanis outlined in thefive years financialprojections, the annualmanagementplan, andannualbudgetplan for 2010 -2014. Annualbudgetplan include production forecast, operating cost production cost. For mill budget includes FFB received and processed, CPO and PKO production details, crop yield projections and income. Replantingprogramwas availableand projected for 5 years, 2013-2017, and reviewed on yearly basis.

Yes

Criterion 4.1 (C.4.1) Operating Procedures are appropriately documented and consistently implemented and monitored

ATSA has standard operating procedures (SOP) with the best practices for all areas of the mills and plantations estates operations. The Belida mill, Belida Estate dan Mesuji Estate have been certified to QMS ISO 9001and EMS 14001 by TUV NORD and also HSE management system (SMK3) by Ministry of Labour of the Republic of Indonesia. SOP which is owned by the integration of all related procedures of quality management systems, environmental management systems and occupational health and safety, so given the title as the integrated management system (IMS) procedures The SOP the SOP for Agronomic aspect which is owned by PT. Aek Tarum is SOP applies to all estates units in Indonesia under the management of Sampoerna Agro, but SOP for mill which is owned by PT. Aek Tarum is SOP applies to all mills in Sumatera Region only under the management of Sampoerna Agro The following procedures applicable and implemented within sustainable palm oil,

SOP for Oil Palm Estate (containing aspects from nursery, land preparation, plant block measurement, land clearing, land and water conservation, nursery, planting, fertilizing, integrated pest management, harvesting, waste management, until transportation FFB to the mill). The procedures identified code P-SAG-KBN-PML-01 until P-SAG-KBN-PRD-03 (there was 28 procedures) SOP for Mill Operation (containing accepatence of FFB, weighing at loading ramp, sorting, machining process, boiler/power generation, water treatment, land application, electrical system, quality including monitoring of CPO parameters, CPO and PK storage , dispatch and laboratory). SOP for HCV identified and monitoring, emergency preparedness and response, and environmental monitoring SOP for Environment Management System, Occupational Health & Safety, and Sustainability of Palm Oil

Any changes or revisions to the SOP for the respective section in charge of mills and estate will receive the status as update. Update SOPs has sent to the mill or estate manager whenever there are changes made, and than submitted to the Quality Environmental System in Head Office and Regional Office for approval. The obsolete procedures are withdrawn. Monitoring records from inspection are kept with proper identification. All Records and documents in mills and estate usually well maintained and controlled. In morning call briefing event usually the checklist records should be kept more properly. The performance of estate and mill work station is monitored for each shift and recorded daily The SOP to monitor FFA parameters and moisture of CPO during in process before delivery to end user inspected by quality control inspector and laboratory analyst. Monitoring Records of inspection are available in a laboratory cabinet with appropriate identification and kept for 5 years according to control of record procedure There was also SOP for smallholders development (P-SAG-KBN-PLS-01), has continuous socialized and implemented to smallholders group, i.e KUD Bina Sawit Utama, KUD Citra Sawit Mandiri, KUD Jaya Bersama and KUD Mekar Sari.

Yes

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


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ATSA conduct annual fertilization schedule based on the recommendation from Research and Development Department based on the results of soil and leaf analysis from Asian Agri Laboratory (external independen laboratory). The leaf analysis testing in yearly basis performed. Leaf or frond sampling is done in each blocks yearly for N, P, K, Ca, Mg and Cu. the Soil testing analysis is carried out regularly performed on a 5 years basis for N, P, K, Ca, Mg, Na, Mn, Zn, Cu and Fe. Last soil analysis report was done on January 21st 2011. For year 2012, fertilizers used in Belida esatet are Borate (7,262 kgs), MOP/KCL (825,217 kgs), Urea (485,200 kgs), Rocks Phospate Egypt (585,974 kgs) and NPK 12 12 17 2-TE (1,575 kgs). Super dolomite no applicable. As part of the best agronomic practice to improve soil fertility, reduce waste, reduce application of in-organic fertilizer and reduce cost, then EFB (empty fruit bunch) is apllied as mulching for oil palms at Belida and Mesuji Estate. ATSA use new EFB press machine that produce EFB in fiber form approximately 9%-13% of total FFB processed. The POME (palm oil mill effluent) in ATSA not be applied by reason as geographically the mill location away from the nucleus estate and emplacement, but close to the river. The ATSA Sustainability Department has a method to monitor the best practice crops protection applies legume cover crops (LCC) to protect soil from erosion, add nutrients and prevent weeds. The remaining recommended species of LCC merely MB (Muccuna brachteata) for the reason that it can grow faster and live longer than other species such as Pueraria javanica and Calopogonium caeruleum

Yes

Criterion 4.3 (C.4.3) Practices to minimize and control erosion and degradation of soils Map of ATSA, generally the topography of the two estates are gently rolling with slopes of 0-8% to 8-15%. From the EIA report (in year 2005) the average of soil erosion loss is 10 t/ha/year, or equal with0,84 mm/year, given the soil bulk density of 1.19 gr/sm3. this is a low figure indicative of good erosion contro. The soil erosion level was calculated according to USLE (Universal Soil Loss Equation) method. Accordig to USDA Classification, the soil type is Ultisol, but according to FAO Classification, the soil ty is Acrisols as there no fragile soils as well peat soil according to HCV assessment report, ATSA doesn’t have any plan to manage them Regular road maintenance is carried out (grading, compating and paving), also bridge and ditch maintenance according to Program Perbaikan Jalan. Road to mill along 45 km was repaired at 2011 and during surveillance audit (2012), assessor saw that main road to Mesuji estate still maintained according to the Program. There was evidence that ATSA applies some techniques to reduce erosion, such as planting LCC (legume cover crops), terracing/platforms, frond stacking, and borrow pit and windrowing. Using of LCC applied another method or some of best practicing implemented following up keep terrace; up keep drain including main drain, collect drain, and sub drain; upkeep connecting pitch; up keep outlet drain. The monitoring proves that LCC application is effective to reduce erosion. The Sustainability Department has implemented the riparian buffer zones program and monitoring for the existing of erosion control at estate convinced. The factual planned action is sufficient documented. EHS Department has monitor the river water quality of Dabuk Hitam river, Ulak river and Deras river (compared to South Sumatera Governor no. 16/2005).EHS Department also manage the riparian strip in line with the coming RSPO HCV Management Monitoring Toolkit.

Criterion 4.4 (C.4.4) Practices to maintain the quality and availability of surface and ground water ATSA has established a standard for water requirement to process FFB. The daily water consumption (by the mill and employee housing complex) is recorded in Form Monitoring Penggunaan Air (mass balance of water). Checks on the records of water consumption in 2011 found that they complied with Izin Penggunaan Air Tanah (ground water usage permit by South Sumatera Governor) For the water used per tonne of FFB in the mill is monitored and measured against of the FFB inputs. The limitation of water consumption base on total of tonnage CPO per FFB is 1.25 tones/FFB. To avoid the contamination of river water, ATSA doesn’t aplly fertilizer and pesticides to its palm trees in the riparian zone - each 50 meter leftside and rightside belt along the river banks – and no replanting of oil palm will be done along all rivers banks in blocks estate. The riparian zones are clearly demarcated by sign boards, and there is a program to plant them with Bamboos, Jelutung trees, Jabon trees in 2011 for their

Yes


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rapid growth. Native species such as Bambu Balku (Bambusa balcooa), Bambu Ampel Kuning (Bambusa vulgaris var. Striata), Bambu Ampel Hijau (Bambusa vulgaris var. Vitata) and Bambu Duri Liar (Bambusa bambos (L) Voss) Monitoring of effluent BOD from waste water at mill is done monthly by UPTB Laboratorium Lingkungan – Badan Lingkungan Hidup Sumatera Selatan. Over the last year (2011), the BOD level and other environmental parameter showed that value is still below the quality standard (local requirement Governor decree No 18/2005). Recapitulation of BOD level are submitted six-monthly in RKL / RPL to Local Environmental Agency. The last report on January 2012 showed that the BOD level average as 68.43 mg/l, there is below of maximum standard is 100 mg/l.

Criterion 4.5 (C.4.5) Pests, diseases, weeds and invasively-introduced species are effectively managed using appropriate Integrated Pest Management (IPM) Techniques It was evidence that ATSA has formulated, documented and implemented an Integrated Pest Management (IPM) System continuously at Belida and Mesuji estate. The IPM system including field condition checks prior to spraying of herbicides and monitoring of pests and diseases. Monitoring of insect pests is carried out routinely and outbreaks are reported There are some procedures (SOPs) related with the IPM implementation, such as Pengendalian Gulma TBM (P-SAG-KBN-PML-12), Mengontrol Lalang (P-SAG-KBN-PML-13), Monitoring Hama (P-SAG-KBN-PML-15), Pengendalian Hama Daun (P-SAG-KBN-PML-16), Pengendalian Hama Tirathaba (P-SAG-KBN-PML-17), Pengendalian Hama Tikus TBM-TM (P-SAG-KBN-PML-18), Pengembangan dan Introduksi Tyto Alba (P-SAG-KBN-PML-19) and Pengendalian Gulma TM (P-SAG-KBN-PML-22) IPM is practiced incorporating cultural, biological, mechanical or physical methods to minimize use of chemical, e.g planting beneficial plants (cultural method), such as Bunga Pukul Delapan (Turnera subulata) and Bunga Air mata Pengantin (Antigonon leptopus) to harbour predators of the crop pests. Eradiction of outbreaks of of leaf-eating bagworm or Ulat Api (Setora nitens Wlk) is by biological control using a virus taken from the insects themselves. The barn owl or Burung Hantu (Tyto alba) is protected and encouraged as a natural predator of rats. Regular census is carried out on the pest situation by monitoring their occurrence on palm fronds, and the data recorded in Form Ringkasan Sensus Hama Daun (FM-SAG-KBN-PML-150201). Census of Tyto Alba is conducted monthly The use of pesticides (chemicals) is recorded and displayed in the estate managers’office. According to the budgeting year 2012 and their realization, ATSA has been applied chemical pesticides Ally 20 WDG (28 kg), Garlon 480 EC (0,08 ltr), Paraquat Gramoxone (104,67 ltr), Lindomin (83,26 ltr), Round Up or Glyphosate (1,000 ltr) and Agristik 400 L (32 ltr). Assessor saw that trend of the application of paraquat as use limited pesticides ( Ministry of Agriculture Regualtion No 01/2007) will be decreasing over the previous year

Yes

Criterion 4.6 (C.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.

ATSA has procedure (SOP) regarding application of agrochemical (see audit result 4.5), e.g glyphosate, paraquat, 2,4-D amine and methyl metsulfuron (accordance with the Ministry of Agriculture Regulation No 07/2007. All of agrochemical used are registered and approved by Pusat Perizinan dan Investasi, Secretariate General Kementerian Pertanian in 2008. Check on the records of agrochemical used found that they complied with the regulation and there was evidence of reduced usage e.g in Belida estate on June 2012, the targeted use of Roun Up Glyphospate was 300 cc/ha and actual use only 150 cc/ha. As ATSA had implemented IPM, only severe infestations / attacks were treated with agrochemical Assessor saw that chemical has applied by qualified persons who have received the necessary training and applied in accordance with the product label. All the safety equipment has provided and used. Regular training for persons chemical sprayers was conducted by Mandor (field foreman), supervised by the estate assistant managers. The foreman dan assistant managers had been trained by the agrochemical supplier. Belida Group office, last training was held on 03 November 2011 with 14 foreman and assistant managers.

NC 1 of 3


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ATSA has a procedure to store agrochemical wastes and empty containers in a secured area – a B3 (hazardous and toxic materials) waste warehouse – before collection by a contractor (prosedur pengendalian limbah di kebun P-SAG-KBN-LMB-01). Records of the hazardous wastes stored are kept in Laporan Berita Acara Pengembalian Karung (FM-SAG-KBN-PML-040001) in attached with MSDS accordance to the Government Regulation No 85/199 and No. 74/2001. in line with government regulation about hazardous waste management, the ministry of Environmental (MOE) was publish regulation No. 18/2009 regarding permit procedure for Hazardous waste management which including transporter requirement that must be licensed and registered in MOE. Auditor saw this matter has not been included in procedure P-SAG-KBN-LMB-01. ATSA has policy that pregnant and breast-feeding women are prohibited from working with pesticides. Auditor saw there is no women workers who are pregnant or breastfeeding when spraying pesticides at Belida Estate There was no evidence that annual medical chek up for operators/workers in 2012 has been done, whereas regular medical chek up usually conducted in April month. Auditor issued the non conformity for this. Correction has been made by conducting the training for all chemical sprayers by the chemical supplier, PT Syngenta Indonesia and PT SUryanusa Agromakmur on 04.10.2012. The auditor has verified the evidences of the training such as the training material and its photographs To avoid the occurance of non conformity, the company review the training record for all employees who their work and position deal with chemical, such as chemical sprayers and chemical store and ensure all the worker who deal with chemicals are well trained.

Criterion 4.7 (C.4.7) An occupational health and safety plan is documented, effectively communicated and implemented.

ATSA has established a Safety, Health and Environmental (HSE) policy dated October 1st 2010. the socialization has been done on December 23rd 2010 involving all workers from Belida Mill, Belida Estate, Mesuji Estate, contractor and supplier. Auditor saw that HSE policy is still implemented and monitored The team members of Panitia Pembina K3 (P2K3), or Steering Committee on Occupational Health and Safety or stey engineer, were approved by the Regional Head of Reosurces on 17 December 2010 in a memorandum, RH HRS No. 0522/HRS/XII/2010. Explanation and communication of the polic is the responsibility of the safety engineer (SM-P2K3), who daily monitors and inspects all facilities in the mill and estates for emergency. There are regular monthly meeting between the management and workers on helath and safety issues (4.7.2) All employees and contract workers are insured under JAMSOSTEK with ATSA having JAMSOSTEK membership No. 98BG0007. Records of JAMSOSTEK payment installment was available. A safety engineer on a daily basis does monitor and inspect all facilities of mill operation relating to emergency conditions. Records of mill facilities and its operation are kept properly and identified and retrievable in the safety engineer’s room. If there is an accident in the mills caused by the workers violating a working procedure or other instructions, investigation of the accident is to be conducted and distributed to mill manager as of the agenda in safety meeting. In one of the mills which should conducted safe practices in accordance with environment safety (SM-P2K3) some safety concern was found due to the non-compliance with and not following safety program, identification of hazard and risk assessment, and the monitoring achievement of safety program was not available. Assessor found that all Fire extinguisher in pump house was regularly checked. Auditor observed that the estates show their implementation on Safety and Health with the identification of risk source objectives, targets and programs . The estates report to Safety and Health Coordinator regarding the progress of programs on monthly basis. Training plan program 2012 for identification hazard and control of risk was documented and recorded to consider set of safety program for all workers. The emergency drills and evacuation practice are regularly performed in 2 or 3 months basis.

Yes

Criterion 4.8 (C.4.8)


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All staff, workers, smallholders and contractors are appropriately trained. Mill / Estate managers have identified the training needs in each section/department to organize an annual training program. The ATSA training program in 2012 also covers contractors and smallholders (plasma). Evaluation of training effectiveness is conducted regularly to ensure all staff and workers particularly are updated with sufficient training. Training for plasma smallholders is conducted every one or two month, and includes guidance on FFB quality standard, fertilizing, spraying, harvesting, and estate maintenance. The training records for plasma smallholders are kept in Notulen Pelatihan Dengan Plasma (F-SAG-KBN-PLS- 010005). The plasma smallholders of Mesuji Estate incorporated in the Plasma Wlayah 1 (8 KUD), wilayah II (8 KUD), wilayah III (7 KUD), wilayah IV (7 KUD), and wilayah V (4 KUD), and Belida estate suc as in KUD Sumber Makmur.

Yes

Criterion 5.1 (C.5.1) Environment aspects of estate and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement. ATSA conducted an environmental impact assessment (EIA) or AMDAL of its mill and estate operations in 2005 which has not been revised because there has been no change in its operations that could have differently affected of the environmental and social-economics issues. Identification and monitoring plan to mitigate environmental impacts were satisfactorily during 1st annual surveillance assessment to ensure ATSA is concerned to monitor these activities. The assessment is well performed in environmental management monitoring report (RKL / RPL) and be reported to BPLH Kabupaten Ogan Komering Ilir every 6 months. Last report has submitted on January 2012. Auditor saw that the environmental parameters which measured and analyzed have not exceeded effluent quality standard for BOD and COD.

Yes

Criterion 5.2 (C.5.2) The status of rare, threatened or endangered species and High Conservation Value habitats, if any, that exist in the estate or that could be affected by estate or mill management, shall be identified and their conservation taken into account in management plans and operations. ATSA has prepared and developed all information as well for flora and fauna due to the certification. The flora and fauna are comprehensively identified in “Identifikasi Nilai Konservasi Tinggi di PT. AEK Tarum “ Reported on June 2010 The HCV’s areas are recognized with HCV’s 4.1 riparian area, which most of HCV’s are available in the whole of the plantations. The HCV’s area at the field is well identified with signboards. River water that showed at surveillance are Dabuk Hitam river, Ulak river and Deras river This proves that the management concern to the protection of HCVs. ATSA also monitor the quality of the river water periodically based on PP 82 of 2001 and Per-Gub Sumatera Selatan No 16/205 to ensure that the operation doesn’t affect significantly to the reduce of water quality. Assessor has compared to the identification of HCV at the certification HCV assessment report 2010 with actual identification at annual surveillance audit, the identification of HCV there was no change or the emergence of new species-species of flora and fauna.

Yes

Criterion 5.3 (C.5.3) Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner Waste and pollution sources have been listed in MetodaIdentifikasidanEvaluasiAspekLingkungan(FM-SAG-HO-QES-090001)inaccordance withitsrelatedprocedure,ProsedurIdentifikasiAspek Lingkungan(P-SAG-RO-QES-09).ATSA has a licence to store the wastes in accordance withdecree KeputusanKepala Badan Dampak Lingkungan (KEPDALl) No. 255/BAPEDAL/08/1996 before collection by a licensed waste collector. However, t here was hazardous and toxic waste (medical waste, used lamps, used chemical container) found since July 2010, while according to government regulation No. PP. 19/1999, KepMenLH No.24/2007, SK.Bupati No. 660.I/43/KEP/BLH/2010, storage permit for hazardous and toxic waste not more than 90 days. For this reason auditor issued the non conformity, NC#2. The company has disposed hazardous and toxic waste (medical waste, used lamps, used chemical

NC # 2 of 3


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container) to waste transporter which has the permit for collecting the hazardous wastes, i.e PT Horas Miduk on September 5, 2012. The corrective action has been performed by monitorall hazardous waste regularly and to ensure it will be disposed to the transporter which has the permit from the government. Management has appointed the person in charge for monitoring the disposal of hazardous wastes.The evidences of waste disposal was available, such as waste manifest of PT Horas Miduk as transporter of hazardous waste. The MoU between Aek Tarum Sampoerna Agro and Horas Miduk was also available, PT Horas Miduk hold the license from Environmental Agency of South Sumatera Province, valid until June 9, 2016 Criterion 5.4 (C.5.4) Efficiency of energy use and use of renewable energy is maximized. ATSA estates have planned to use of renewable energy in which it continually strives to improve energy efficiency and use more renewable energy. The successful of wastewater treatment for energy generation is the good example to show the use of renewable energy. Pressed fiber of empty FFB and palm kernel shell will be used to fire in the boiler to generate steam for electricity generationThe company committed to reduce the use of fossil fuel by managing the operation and transportation in order to utilize the fossil fuel efficiency. From the record of energy used in 2011, its efficiency of electricity use was around 100,000 kWH. The use of oil or fossil fuel was about90 kilo liters for all purposes i.e. FFB transport vehicles and any transportation. Comparison the use of energy in 2012 (January-May), it revealed that the electricity was used at 92,856 kWH and oil or fossil fuel was used at 74,646 liters.

Yes

Criterion 5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice. ATSA has a zero burning policy, and has a procedure for palm felling and land clearing (Prosedur Penebangan dan Pembersihan P-SAG-KBN-PML-03). ATSA management has high commitment to do zero burning policy. This zero burning policy was supported by managing director of ATSA. There is a procedure established for emergency response to land burning (prosedur Kesiagaan dan Tanggap darurat di kebun P-SAG-KBN-DRR-01). Records of its implementation were sighted Assessor observed during surveillance assessment that mobile fire brigade for quick response to fire emergency has been established by memorandum on June 2012

Yes

Criterion 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored. The prevention of pollution is a part of the Management Policies on health & safety; and environment. Monitoring and measurement on emission parameters are implemented accordance emission regulation. On 6 (six) monthly basis, the emission of boiler and vehicle for transportation of FFB are tested by external independent laboratory. Results of emissions are reported to Head of HSE to ensure that necessary actions are taken. The result of emission monitoring and management, and monitoring effluent of wastewater (POME) are also reported to the Local Environment Agency (BPLH) as part of RKL-RPL (Environment Management and Monitoring) Semester Report.

Yes

Criterion 6.1 Aspects of estate and mill management including replanting that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement. ATSA mill and estates have established the social impact assessment report integrated in the Environmental Impact Assessment (AMDAL/RKL-RPL) issued by South Sumatera Province No.202.44/504/Bapedalda / 2002 on Environmental Feasibility Activities Oil Palm and Rubber and Palm Oil Factory, dated June 12, 2002. There was not many information about social impact assessment for estates and mill in this assessment. The social impact assessment noted the positive impacts on activities related to labour vacancy and increase in community wages. The data on social and economic analysis and impacts were collected through questionnaire surveys. There was regular monitoring and management of social impact recorded in Laporan Monitoring Aspek Social, Social Aspect Monitoring Report, December 2011. Social impact of

Yes


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company was discussed during stakeholder meeting on May 21, 2012. There were records of Corporate Social Responsibility (CSR) activities for year 2011. The program covered such as training on best practices for palm oil to farmer and smallholder, contribution given to community, such as road repair, school contribution Criterion 6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties ATSA have an effective communication and consultation procedure, P-SAG-RO-QES-07 (Communication,ParticipationandConsultation Procedure. The procedure covers the scope, purpose of the procedure, internal and external communication method, documentation and follow-up action. Based on the consultation procedure, the public consultation meeting is done yearly. Last meeting was on May 25, 2012 in Belida Estate. Based on the attendance list records for each estate, the invited stakeholders include the head of village surrounding the estate, whereas regent, sub-regency chief, local and antional NGOs (LSM Peduli Lingkungan, Lembaga Bantuan HukumPalembang, and Yayasan Lembaga KonsumenPalembang (YLKP)

Records of minute’s meetings were available. Indeed, the topic was only concerned to the local communities surround the estate, thus one session meeting with more general topic has to be conducted and all stakeholders within the list have to be involved. However, there was no record of minute of meeting of the stakeholders meeting and the follow up action taken for the meeting as well. For this reason the auditor issued the non conformity, NC# 3/3 The company has made correction for this NC by providing the minute of meeting of stakeholders meeting which has been conducted on May 25, 2012 To avoid the occurance of non conformity, the company has made the corrective action by revising procedure, P-SAG-RO-QES-07 (Communication,ParticipationandConsultation Procedure which mention the obligation to collect all records of communication and consultation with the communities or stakeholders in the relevant The auditor has verified the evidences of the revision of the procedure and the records of stakeholder/public consultation meeting and its photographs

NC # 3/3

Criterion 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties. ATSA still maintain and implement a procedure integrated in its communication procedure(IMSProsedur:MekanismePenangananKonflik(P-SAG-RO-CAS-03) dated1.9.2010) for handling complaints, grievance and dispute . Internal complaints and grievancesareresolved accordingtheMutual WorkingAgreement (PerjanjianKerjaBersama).Theseprocedureshavebeencommunicatedtoallstakeholdersat eachmillandestates.Itwas notedthattheresponses fromstakeholdershavebeenpositive.During public consultation, the audit team confirmedthat there were no serious complaints, grievances anddisputesatthemoment. Localcommunitiesandstakeholdersobeyand respectthecompany legalrights,reciprocatedby thecompany’srespectfortheirtraditionalrights

Yes

Criterion 6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stake-holders to express their views through their own representative institutions. During the surveillance audit,theauditteam studiedthewholecompensationmechanism,and founditsatisfactory withnolegalactionbeingtaken byanyparty againstanother. Themechanism has been communicatedtothestakeholders. Checks onthe recordsandinterviewswiththelocal communitiesconfirmedthatthereisnocurrent claim onanylandalthoughtherearesome dissatisfiedlocalswithquestionable cases,possiblytryingtodiggoldfromATSA. Acheck withthe ChiefofLocalCommunityconfirmedthattheyhavenocustomaryrights. Nevertheless,ATSAis ready to hear them out.

Yes

Criterion 6.5


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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. Wage payment is the common term that the company needs to follow as it is compulsory required by South Sumatera Governor’s Decree inSK Gubernur No. 825/KPTS/Disnakertrans/2011, tentang Upah Minimum Sektoral Provinsi Sumatera Selatan Tahun 2012, tanggal 2 Desember 2011.

There was also the There Labour Agreement between PT Sampoerna Agro Tbk Sampurna Agro Union, established by decree of Manpower and Transmigration No. province of South Sumatra. 146/Nakertrans/2010 (in accordance with Law 13 in 2003) which contains the rights and obligations of employees.

Auditor assessed the list of workers, complete with the wage amount, date of birth, date of joining SMM, basic salary, fringe benefit or premi, additional, overtime, allowance, gross, deduction, nett), dan signature, payment slip, detailed with all allowance and deduction is available. The receipt of payment was gave to all workers on the payment day. Each worker has their contract works, based on Decree of Working Agreement (so called Surat Keputusan Penetapan Perjanjian Kerja Bersama) oleh Kepala Dinas Sosial, Tenaga Kerja dan Transmigrasi about registration of Perjanjian Kerja Bersama PT Aek Tarum Sampoerna Agro (ATSA), dated November 17, 2011 which was signed by ATSA and Labour Union (PUK FSP Kep Migas dan Umum PT ATSA), and approved by The Officer of Worker Affair. A labor policy such as non discriminatory practices and forces labor either full time employee or contractors are socialized in agreement with those people. Worker and contractor are required by the terms of their contract/agreement to have their fair compensation. All employees even contractor have been provided with the suitable housing, water supplies, medical care and welfares by the company. Worker housing receive piped potable water which is tested regularly to ensure that it safe for human use. The facility provided the huge water jar to store the rainfall for being used as drinking water. It is also tested regularly to ensure it is always safe for human consumption. All workers housing are also provided with free electricity.

Yes

Criterion 6.6 The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. ATSAhasan agreement withtheworkersandmanagementstaffto allowthemtoestablishalabour unioninaccordance withnationallegislationUU No.132003. One hasalreadybeenestablished- SPSampoernaAgro. However,only non-staffemployeescanbeUnionofficerstoobviateany conflictofinterest. TheUnionandmanagementofATSAnegotiatethePerjanjianKerjaBersama, orMutualWorkingAgreement,every2years. Theminutesofsomemeetingswerecheckedand the meetings found to be properly conducted.

Yes

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

ATSA has a policy on child and female workers (Memorandum No. 0016/DMD/XII/2010” on9.12.2010)signedbyaDirectorandsocializedinagreementswithsuppliers/contractors(6.7.1). Nooneunder18yearsofageistobeemployed. Recordsofpersonaldataofemployees-age, maritalstatus,positionandrank,locationofwork, dateofcommencingemployment-arekept. Checkingtherecordsconfirmedthatno oneunder18yearsoldhasbeenemployed-incompliance withIndonesiannationallegislationUURINo.13Tahun2003,article68

Yes

Criterion 6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited. ATSAisanequalopportunityemployer,withpromotionmainly basedon merit.TheHuman ResourcesRegionalHeadidentifiesandrecommendscandidatesforpromotiontoaselection boardatATSAHeadOffice.ATSAisalso committed toproviding jobsforthelocals,even though theyarereluctanttoacceptduetotheirincreasedaffluencebroughtaboutbytheoperationof ATSA.Vacanciesarepostedonnotice boardsinthemill/estates,andalsoadvertisedinthelocal newspaper.

Yes


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Apolicyonequalrightsregardlessofrace,caste,nationalorigin,religionhasbeen established and also socialized in agreementswith suppliers/ contractors. estate manager, environmental officer and sprayer for example. However, all estate managers are male. Criterion 6.9 A policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied.

TheHumanResourcesRegionalHeadofATSAhasestablishedapolicyonpreventionof sexual harassmentandprotectionofreproductiverightsofitsfemale workers (KebijakanPencegahan PelecehanSeksual,PerlindunganHakReproduksidanMekanismePenangananKeluhandated13.7.2010). Thepolicyisdisplayedat variouslocationsinthe mill/estate officesand socialized to theworkersineachunit-inBelidaMillandMesujiEstateon4.11.2010,andBelidaEstateon6.11.2010.Theruleshavebeenexplainedtoallworkerstoensuretheirunderstanding.

The policy also contains rules for enforcements which are a part of CSR program. Rules for enforcement have been given though the training for workers according to Indonesia’s labor standard to ensure their understanding. Records of the training done during 10, 11 and 31 August 2011 are kept and maintained. A gender has been appointed using announcement letter number 031/2554 dated December 28, 2011, signed by the managing director. This committee consists of 11 members. The rule of this committee will responsible any concern to woman and report these concerns to the top management of company directly. Female employees are entitled to pregnant and childbirth leave of 3 months for each instance and also allowed to breastfeed for up to 6 months at least 30 minutes everyday. In case of any violation to women, the procedures to deal with the violation case have been trained to women employees in order to ensure that they understand the grievance mechanism. Based on the result of interview women employees, it confirmed that that they understood the policy and knew the grievance mechanism for complaints such as go to any members of gender committee.

Yes

Criterion 6.10 Growers and mills deal fairly and transparently with smallholders and other local businesses. ATSAkeep maintained an fair, legal and transparent agreements with its suppliers/subcontractors and independent farmers. Even though there are no purchase contracts to bind the smallholders they will be informed by the mill on the daily FFB price through phone and the daily price of FFB will be posted at the mill gate. A list of FFB smallholders is kept and updated for the purpose of informing the daily FFB price. The smallholders are free to decide where to sell their FFB. The price of FFB is determined by the purchasing department of SMM, based on to the procedure FFB price calculation ATSAhasfair,legalandtransparentagreementswithits suppliers/contractors and plasma smallholders. Therearetransactionsandpurchase contractswithcontractorsandlocalcompanies onsaleand purchaseofFFB,FFBtransportand service,maintenanceand repairofmillequipment. ThepriceforFFBisdeterminedbytheHead ofRegionalPlantationSection,Agriculture DepartmentofProvince SouthSumateraviaamechanismbasedontheCPOprice,kernelprice (indexK)fromall palm oil producers andpalmoil estatesinSouth Sumatra everytwo weeks.The FFBpriceissetatameetingattendedbytherepresentativesofKUDs, oroftheplasma smallholdersthemselves.TheminutesofthelastmeetingaregiveninSurat 005/185-VI.3/BUN dated17 December2010. CheckswithKUDBelidaandKUD Mesuji confirmedthatthey had copies. Documentsweresightedandinterviewswithsome contractorsconfirmedthattheyunderstoodthe termsoftheircontractswellandthoughtthemfair,legalandtransparent. Anygrievancecanbe broughtupthroughIMSProsedur:MekanismePenangananKonflik(P-SAG-RO-CAS-03)dated 01.9.2010. Interviewswiththecontractorsandsomeplasmasmallholdersfound nogrievanceabout the price

Yes

Criterion 6.11 Grower and mills contribute to local sustainable development wherever appropriate.

TheATSAmanagementhas strong commitment to contribute to community development and documented in Quality, Safety and Health Environmental, for Sustainable Policy (QSHES Policy), signed by the President Director. Working program for CSR Activity on 2012 was released on January 3, 2012. The activities planned were varied, such as socialization of shareholders program for the locals, aids for local teachers, free medical treatment for the locals, making a well for locals, etc. For the activities planned during January until June 2012 were mostly realized as per schedule with some ignorable delays, except for making a well program which was

Yes


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planned on May 2012, have not been realized yet, thus has to be rescheduled. Example of contribution of ATSA :

1. Tax of surface water usage 2. Land & Building tax 3. CSR program report such as roadworking, lending a heavy equipment, health aid, etc.)

ThisrecordiskeptinappropriateroomundercontrolledGeneralAffairsDepartment. Criterion7.0 No new planting planned on any estate included in the scope of this assessment. Principle 7 is not applicable to this assessment. Criterion 8.1 Growers and mills regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations. ATSA management has committed inorder tocontinuous improvement throughout RSPO principles and criteria.Concerningprevention ofemission(releaseofcarbonemissiontoenvironment generatedfrom palm estateandmethanecapture byCDMprogram),theenvironmentalimpactassessmentwasadoptedtoensure vehiclesand operating boiler emissionsfor uncontrolledparametersweredetected.Reducedconsumption of dangerousagrochemicals(paraquat)wasinspectedandconfirmedin accordancewithtopmanagement‘s of ATSA QSHES policy.Theusedagrochemicaljarsorcontainers have beenhandledandstoredinproperchemicals warehouse.Record of reducingconsumedparaquat(gramoxone)inspectedforyear2007(0.26litre/ha), 2008 (0.13litre/ha),and 2009 (0.01029liter/ha) and no longerusedin 2010,2011, and 2012.

Yes


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3.2Identified Non Conformances

This section gives an over view of new or revised non-conformities raised during this assessment and of action taken to close out non-conformities rose during the previous assessments.

3.1.1 Detail of Non Conformity

Non Conformity Report – NC 1/3

Date of issued 22.06.2012 NCR issued by : Anita Masduki

Location Mesuji Estae Discussed with : Estate Manager

RSPO – Criterion : RSPO Indonesia NI May 2008

Criterion 4.6Major #1

Documentary evidence that usage of agrochemicals is appropriate for the target species, given at correct dosage and applied by trained personnel in accordance with the product label and storage instructions.

Description of Finding/Objective Evident: There was no evidence that all chemical sprayer has been trained by appropriate or licensed trainer Auditor(s) sign

Classification Major Minor

Correction:

Conducting the training for all chemical sprayers by the chemical supplier, PT Syngenta Indonesia and PT Suryanusa Agromakmur on 04.10.2012

Corrective Action

Review the training record for all employees who their work and position deal with chemical, such as chemical sprayers and chemical store

Auditor Verification:

The auditor has verified the evidences of the training such as the training material and its photographs

Auditee(s) sign


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Auditor Comments and Conclusion

corrective action verified and accepted implementation verified by submitted documents

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

Date of verification: Auditor(s) sign:



Location Belida Mill Discussed with : Mill Manager


Criterion 5.3 Minor #1

Management plan of hazardous waste and instruction of disposal of agrochemicals and their containers waste in accordance with the product label and existing regulations.

Description of Finding/Objective Evident: There was hazardous and toxic waste (medical waste, used lamps, used chemical container) found since July 2010, while according to government regulation No. PP. 19/1999, KepMenLH No.24/2007, SK.Bupati No. 660.I/43/KEP/BLH/2010, storage permit for hazardous and toxic waste not more than 90 days. Auditor(s) sign


Correction:

The hazardous and toxic waste (medical waste, used lamps, used chemical container) has been disposed to waste transporter which has the permit for collecting the hazardous wastes, i.e PT Horas Miduk on September 5, 2012.

Corrective Action

To monitor all hazardous waste regularly and to ensure it will be disposed to the transporter which has the permit from the government properly. Management has appointed the person in charge for monitoring the disposal of hazardous wastes.


The evidences of waste disposal was available, such as waste manifest of PT Horas Miduk as transporter of hazardous waste. The MoU between Aek Tarum Sampoerna Agro and Horas Miduk was also available, PT Horas Miduk hold the license from Environmental Agency of South Sumatera Province, valid until June 9, 2016

Auditee(s) sign




Date of verification: 10.10.2012 Auditor(s) sign:


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Location Belida Estate Discussed with : Estate Manager


Criterion 6.2 Minor # 2

Records of local communities’aspiration and responses or followupactions by companies to theserequirements

Description of Finding/Objective Evident: There was no evidence that company has a documented records of communication and consultation with the communities or stakeholderson their aspiration and responce or followup it accordingly Auditor(s) sign


Correction:

To prepare the records of communication and consultation with the communities or stakeholders which has been conducted on May 2012

Corrective Action

To mention the obligation to collect all records of communication and consultation with the communities or stakeholders in the relevant procedure, P-SAG-RO-QES-07 (Communication,ParticipationandConsultation Procedure)

Auditee(s) sign


The auditor has verified the evidences of the revision of the procedure and the records of stakeholder/public consultation meeting and its photographs




Date of verification: Auditor(s) sign:


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3.1.2 Resume of Audit Results

See Error! Reference source not found.below.

Table 3-2Resume of Audit Results

Indonesian National Interpretation of RSPO Principles and Criteria

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

Status 1 1 1 1 1 1 1 1 1 1 1 3 1 1 1 1 2 1 1 1 1 2 1 1 1 1 1 1 1 1 NA 1

#NC 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 - 0NOTE: Audited:“1”Conforming; “2” Minor Non-Conformity; “3” Major Non-Conformity;“NA” not applicable,

“#NC” : Number of Non-Conformities found

AUDIT OUTCOME 1 Non-ConformitiesMAJOR

During this audit, 2 Non-ConformitiesMINOR

3.2 Issues Raised by Stakeholders

The audit team did not receive any major issues and comments for consideration from the public

consultation meeting on environmental impacts or social performance of the mill and estate operations.

Most of stakeholders agreed that ATSA and estates have had a positive influence in the area. Interviews

with the stakeholder were used to obtain feedback whether positive or negative by using thefollowing

question for example:

• Did ATSA and estates provide information on the RSPO certification exercise including plans for

safety and health to the public and stakeholders?

• Does ATSA and estateshold regular meetings on community development?

• Does ATSA and estates respond well to complaints in respect of RSPO P&C implementation?

• Is there a clear grievance and complaints procedure in the company?

• Are there still any complaints on land acquired by estates for planting oil palm?

• Is there any environment impact caused by the operations of either ATSA or 7 estates?

• Are there any conflicts not yet solved satisfactorily?

• Is there a procedure for settlement of conflicts communicated to the local community?


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• Does ATSA and estatesmeet with stakeholders regularly to discuss on issues on community

development?

• Are the workers paid in accordance with government regulations?

• Is there a system to disseminate information quickly in emergencies to the local communities

around the palm oil mills and supply bases?

• Are there any flora and fauna found in estates or even nearby estates?

• Have stakeholder ever asked for any information and data to ensure the transparency for the

estate and mill? If yes, what kind of document did you review?

Result of the public consultation with stakeholders are reported under the principle 6 above.


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4 Certified Organization’s Acknowledgement of Internal Responsibility

4.1 Formal Sign-off of Assessment Findings

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

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

Signed for and on behalf of

AEK TARUM SAMPOERNA AGRO

Jakarta - March 6, 2013

Head of Operations, Environment and Sustainability

(Mr. Indra Pangasian)

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

Jakarta - March 6, 2012

Lead Auditor


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APPENDIX A List of Abbreviations

BOD Biological Oxygen Demand NC Non Conformity

OER Oil Extraction Rate

CPO Crude Palm Oil

CSR Corporate Social Responsibility OSHAS Occupational Safety and Health Assessment Scheme

EFB Empty Fruit Bunch P&C Principle and Criteria

EMS Environmental Management System

FFB Fresh Fruit Bunch PK Palm Kernel

GPS Global Positioning System PKB Perjanjian Kerja Bersama (Collective Agreement)

HCV High Conservation Value POME Palm Oil Mill Effluent

HCVF High Conservation Value Forest PPE Personal Protective Equipment

R&D Research and Development

IPM Integrated Pest Management

RSPO Roundtable on Sustainable Palm Oil

RSPO NI Roundtable on Sustainable Palm Oil National Interpretation

SA8000 Social Accountability 8000

MOU Memorandum of Understanding SIA Social Impact Assessment

SOP Standard Operating Procedure

MSDS Material Safety Data Sheet


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