rspo assessment report

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

[ ]Stage 1 [√]Stage2 [ ]Surveillance

Plantation Management/Owner : PT ADEI PLANTATION - KUALA LUMPUR KEPONG Bhd.

Plantation Name : Mandau POM and Mandau Estate

Location : Sub District of PINGGIR, District of BENGKALIS, Province of RIAU, INDONESIA

Certificate Code : MUTU-RSPO/021

Date of certificate issue : -

Date of expiry of certificate : -

Assessment Assessment

Date

Report Finalization

Date

PT. Mutuagung Lestari Auditor

Checked by

Approved by

ST1 19 – 23 Maret

2012 2 April 2012

Nanang Mualib (Lead Auditor) Deni A. Novendi, Muardi Marwas, Marsudi Eko Santoso

Taufik Margani Tony

Arifiarachman

ST2 23 – 28 April

2012 31 Mei 2012

Nanang Mualib (Lead Auditor) Faruk A. Nasir, Marsudi Eko Santoso

Taufik Margani Tony

Arifiarachman

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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Submitted to RSPO on:

Approved by RSPO on:

Approved by Certification Body on:

11/07/2012

15/10/2012

18/10/2012


ASSESSMENT REPORT

SPO – 4006a.4 i Prepared by Mutuagung Lestari for Adei Plantation

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Adei Plantation Figure 2. Operational Map of Adei Plantation

1 2

1.0 SCOPE of the CERTIFICATION ASSESSMENT

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Plantations, Mill and Area Statement 3

1.5 Description of Supply Base 5

1.6 Dates of Plantings and Cycles 5

1.7 Approximate Tonnage Certified 6

1.8 Other Certifications 7

1.9 Time Bound Plan for Other Management Units 7

2.0 ASSESSMENT PROCESS

2.1 Certification Body 8

2.2 Lead Assessor and Assessment Team 8

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 9

2.4 Stakeholder Consultation and List of Stakeholder Contacted 13

2.5 Determine Next Visit 13

3.0 ASSESSMENT RESULT

3.1 3.2

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

14 45

3.3 Conformity Checklist of Certificate and Logo Use (Only apply for Surveillance Assessment Report) 48

3.4 Summary of Time Bound Plan Verification of the RSPO Certification 49

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

50

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 60

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings 65

APPENDICES

1. Peer Review Report 66

2. Result of RSPO Committee - RSPO Certification 67

3. List of Stakeholder Contacted in the RSPO Certification Process 68

4. Assessment Plan 70

5 Glossary 73


ASSESSMENT REPORT

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

Figure 1. Location Map of PT Adei Plantation The distance between Pekanbau- Mandau Complex is about 200 km along Pekanbaru-Duri Highway

Mandau Complex


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Figure 2. Operational Map of PT Adei Plantation

Mandau

POM


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1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

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

1.2 Organization Information

1.2.1 Company name Kuala Lumpur Kepong Sdn. Berhad

1.2.2 Contact person Tan Kei Yoong

1.2.3 Company address Kompleks Pertokoan Taman Anggrek Blok B2 – B5 Jl. Tuanku Tambusai,Pekanbaru, Riau

1.2.4 Telephone 0761 – 571885

1.2.5 Fax 0761 – 571862

1.2.6 E-mail [email protected]

1.2.7 Web page address www.klk.com.my

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

Tan Kei Yoong

1.2.10 Registered as RSPO member October 8, 2004 Registration No. 1-0014-04-000-00

1.2.11 Number of employee 1.529 peoples

1.2.12 Contractor 38

874 orang

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm Oil Mill and Estate

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT ADEI Plantation

1.3.4

Number of management unit

2 Mills (Mandau Palm Oil Mill and Mandau Kernel Crushing Plant) and 7 estates which are: KMS 1, KMS 2, KMS 3 and KMS 4 (Kebun Mandau Selatan); KMU 5, KMU 6 and KMU 7 (Kebun Mandau Utara).

1.4 Locations of Plantations, Mill and Area Statement

1.4.1 Location of estate

Name of Estate(s) Location

GPS

Latitude (N) Longitude (E)

Kebun Mandau Selatan (KMS)

KMS1 District of Bengkalis, Riau Province. 1º4’39” - 1º9’6” 101º16’55” -101º20’7”

KMS2 District of Bengkalis, Riau Province. 1º4’39” - 1º9’6” 101º16’55 - 101º20’7”

KMS3 District of Bengkalis, Riau Province. 1º3’12 - 1º6’41” 101º18’2” - 101º21’42”

KMS4 District of Bengkalis, Riau Province. 1º3’18” - 1º6’44” 101º22’8” -101º25’6”

http://www.klk.com.my/


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Kebun Mandau Utara (KMU)

KMU5 District of Bengkalis, Riau Province. 1º8’40” - 1º11’9” 101º17’10” - 101º19’25”

KMU6 District of Bengkalis, Riau Province. 1º11’9” - 1º12’47” 101º15’39” -101º19’2”

KMU7 District of Bengkalis, Riau Province. 1º11’57” - 1º13’38” 101º15’35” -101º19’0”

1.4.2 Location of Mill

Name of Mill Location

GPS

Latitude (N) Longitude (E)

Mandau POM District of Bengkalis, Riau Province.

1º4’56” 101º19’59”

Mandau KCP District of Bengkalis, Riau Province.

1º4’56” 101º19’59”

1.4.3 Maps ( Figure 1 & Figure 2 )

1.4.4 Country Indonesia

1.4.5 Region Asia Tenggara

1.4.6 Tenure

Private

State 14,900 Ha (HGU Numbers: 12/HGU/1990)

Community

1.4.7 Area Statement

Total area 14,900 Ha

Mature area 6,750 Ha

Immature area 813 Ha

Palm Oil Mill 38 Ha

Rubber Factory 20 Ha

Infrastructure 281 Ha

low land/swamp 404 Ha

Palm Oil Mill Water Pond 44 Ha

Nursery 16 Ha

River/riparian zone 78 Ha

Swakabudaya/Inclave (Desa jihad) 200 Ha

Occupation by PT Caltex 30 Ha

Land Dispute (unplantable area) 2,544 Ha

Rubber plantation 3,611 Ha

HCV Area* 112,41 Ha

*) Based on the document of HCV Identification


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1.5 Description of Supply Base

1.5.1 Estate(s)

Name of Estate(s) Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

KMS1 1,987 543 7,553.49 13.91 7,553.49 100

KMS2 3,334 664 8,723.43 13.13 8,723.43 100

KMS3 2,076 1,984 58,162.14 29.31 58,162.14 100

KMS4 2,395 2,183 60,773.83 27.83 60,773.83 100

KMU5 1,579 430 11,246.13 26.15 11,246.13 100

KMU6 1,478 668 10,610.85 15.88 10,610.85 100

KMU7 1,950 1,091 28,546.2 26.16 28,546.2 100

POM, KCP and Rubber Factory 102

Total 14,901 7,563 185,616.1 24.54 185,616.1 100

*Source: Data of Estate Production on 2011

1.5.2 Smallholder(s) and others

Smallholder(s)

Scheme Member(s) Location

Total Area (Ha)

FFB (tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

Independent Smallholder

- Village of Penaso, Sub District of Pinggir District of Bengkalis

800 12,602.03 12,602.03 100

*Source: Data of FFB Acceptance on 2011

1.5.3 Description of Mill

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Mandau Palm Oil Mill

60 198,218 46,457 23.44 10,038 4.73 - -

Mandau Kernel Crushing Plant

800 (tonnes/day)

- - - 218,222 - 95,690 43.85

*Source: Data of Mandau POM and Mandau KCP Production on 2011

1.5.4 Product categories FFB, CPO, PK and PKO

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year Hectarage (Ha)

Age (year)

1998 2,350 14

1999 886 13


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2000 387 12

2001 37 11

2002 57 10

2003 225 9

2004 1,260 8

2005 1,151 7

2006 367 6

2007 30 5

2010 315 2

2011 380 1

2012 118 0

Total 7,563

1.6.2 New Development area after November 2005 1,210 Ha

1.6.3 Planting Cycle (1st Cycle) 26 Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production - Tonnes/year

CPO Production - Tonnes/year

Palm Kernel (PK) Production - Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonage of FFB

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

KMS1 1,987 543 8,437 15.53

KMS2 3,334 848 9,296 10.96

KMS3 2,076 1,984 57,222 28.84

KMS4 2,395 2,183 58,653 26.86

KMU5 1,579 430 11,947 27.78

KMU6 1,478 668 11,199 16.76

KMU7 1,950 1,091 31,215 28.61

POM, KCP and Rubber Factory 102

Total 14,901 7,747 187,969 24.26

*Source: Budget Projections on 2012


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1.7.3 Claim Certified Tonage of Palm Product

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Mandau POM and KCP

60 187,969 44,172 23.5 9,399 5 4,459 47.44

*Source: Budget Projections on 2012

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others (Plantation Class Assessment) by Plantation Agency

Class II

1.9 Time Bound Plan for Other Management Units

Management Unit

Address Hectarage

(Ha) *) Time Bound

Plan Complete

Audit

Kebun Malindomas Perkebunan Berau, East Kalimantan 7,971 2014

Kebun Hutan Hijau Mas Berau, East Kalimantan 7,343 2014

Kebun Jabontara Eka Karsa Berau, East Kalimantan 14.086 2014

Kebun Karya Makmur Abadi Mentaya Hulu, Central Kalimantan 13.127 2014

Kebun Menteng Jaya Sawit Perdana

Mentaya Hilir Utara, Central Kalimantan

6.399 2014

Kebun Mulia Agro Permai Baamang, Central Kalimantan 9.056 2014

Kebun Mandau Bengkalis, Riau 14.799 2012 Audited 2012

Kebun Nilo Riau 12.197 2012

Kebun Mutiara Riau 1.800 2012

Kebun Sekarbumi Alam Lestari Riau 6.200 2012

Kebun Steelindo Wahana Perkasa

Belitung 14.065 2012

Kebun Parit Sembada Belitung 3.990 2013

Kebun Alam Karya Sejahtera Belitung 6.012 2014

Kebun Basilam Langkat, North Sumatera 2.337 2014

Kebun Gohor Lama Langkat, North Sumatera 7.464 2014

Kebun Padang Brahrang Langkat, North Sumatera 5.004 2014

Kebun Bukit Lawang Langkat, North Sumatera 4.299 2014

Kebun Tanjung Keliling Langkat, North Sumatera 2.369 2014


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2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Lead Assessor and Assessment Team

2.2.1 Assessment Team

ST1

The assessment team consist of: 1. Nanang Mualib (Lead Assessor). Bachelor of Forestry Science, Forest Technology Department in Bogor

Agriculture Institute. He worked in Forest Company in 2000 – 2004 as a technical assistant of Sustainable Forest Management Implementation, Joint program with Forest Faculty Bogor Agriculture Institute and WWF Indonesia in 2006 – 2010. As a professional, he was involved in HCV social study of Sustainable Forest Management, HCV Identification in 3 palm oil plantation in Indonesia. Currently, he works as professional HCV assessor. In Stage-1

activity he assessed legal, social, environment and HCV Identification. 2. Deni A. Novendi (Assessor). Bachelor of Forest. Natural Resources conservation department special in ecology and

social. He involved in study of social economy of Citanduy-Cisanggarung watershed, Ciamis district, and East java. And also have experience within 13 years in forest planning and conservation on forest concession at Indonesia. Since 2003, he worked for independent certification body as auditor for forest sustainable certification (FSC and LEI scheme); Chain of study, ISO 9001 and RSPO. He audited for several companies. In Stage-1 activity, he focused on environmental aspects, Commitments to transparency, legality and the social Aspect.

3. Muardi Marwas (Assessor). A Bachelor of Agriculture Majoring in Agronomy and Horticulture, Agriculture Faculty of IPB Bogor. Currently he has been working with an independent certification agency as auditor. Training he has

followed are: Lead Auditor RSPO, Auditor ISPO, Awareness HACCP, Awareness HACCP certification, Awareness SQMS Mc Donald, In House Training Green House Gas and Awareness ISO: 9001. He has followed several audit activities related to certification system of sustainable palm oil (RSPO certification) as observer and Auditor. He has

been working with an independent certification body as auditor. In Stage-1 activity he assessed legal, environment, and man power.

4. Marsudi Eko Santoso (Assessor). Bachelor of Science in Agriculture, majoring in Agro technology. Followed the Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor training, ISPO Lead auditor training and distribution quality management

process - APMEA. He had involved several time in RSPO certification assessment activities as an auditor. Currently he works for Independent Certification Body. In Stage-1 activity, he conducted assessment on Best Practices, Soil and water conservation, Integrated Pest Management, workers welfare, Occupational Safety and Health.

ST2 The assessment team consist of: 1. Nanang Mualib (Lead Assessor). Bachelor of Forestry Science, Forest Technology Department in Bogor

Agriculture Institute. He worked in Forest Company in 2000 – 2004 as a technical assistant of Sustainable Forest Management Implementation, Joint program with Forest Faculty Bogor Agriculture Institute and WWF Indonesia in 2006 – 2010. As a professional, he was involved in HCV social study of Sustainable Forest Management, HCV Identification in 3 palm oil plantation in Indonesia. Currently, he works as professional HCV assessor. In Stage-2

activity he assessed legal, social, environment and HCV Identification. 2. Muardi Marwas (Assessor). A Bachelor of Agriculture Majoring in Agronomy and Horticulture, Agriculture Faculty of

IPB Bogor. Currently he has been working with an independent certification agency as auditor. Training he has

followed are: Lead Auditor RSPO, Auditor ISPO, Awareness HACCP, Awareness HACCP certification, Awareness SQMS Mc Donald, In House Training Green House Gas and Awareness ISO: 9001. He has followed several audit activities related to certification system of sustainable palm oil (RSPO certification) as observer and Auditor. He has

http://www.mutucertification.com/


ASSESSMENT REPORT


been working with an independent certification body as auditor. In Stage-2 activity he assessed legal, environment, and man power.

3. Marsudi Eko Santoso (Assessor). Bachelor of Science in Agriculture, majoring in Agro technology. Followed the Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor training, ISPO Lead auditor training and distribution quality management

process - APMEA. He had involved several time in RSPO certification assessment activities as an auditor. Currently he works for Independent Certification Body. In Stage-2 activity, he conducted assessment on Best Practices, Soil and water conservation, Integrated Pest Management, workers welfare, Occupational Safety and Health.

4. Faruk Ahmad Nasir (Assessor). Bachelor's Degree in Agriculture, Soil Science Major. Specialist in Ecology and Soil Conservation. He has numerously involved in studies concerning ecology, land use suitability, and environmental impact due to oil palm plantations establishment. Aside from the agricultural prospective, he has also numerously involved in studies of performance assessment (LPI) in forestry, for both natural and industries forests plant. In this Stage-2 assessment, he assessed the soil and environmental aspect.

Curriculum Vitae (CV) of the members of the Assessment Team is available at PT Mutuagung Lestari Office.

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Assessment Dates

ST1 March 19–22, 2012

ST2 April 23–28, 2012

2.3.2 Estimate of person days to implement assessment

ST1 Number of involved assessors: 4 persons Number of days for on-site Stage1 assessment activities: 4 days Number of working days for on-site stage1 assessment activities: 16 person days

ST2 Number of involved assessors: 3 persons Number of days for on-site Stage2 assessment activities: 5 days Number of working days for on-site stage2 assessment activities: 15 person days

2.3.3 Detail process of assessment

ST1 The Stage-1 was conducted to measure the sufficiency of implementation with the consistency done by the company (PT Adei) to the requirements of National Interpretation of the Republic of Indonesia from RSPO Principles and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008) and Supply Chain Requirement for CPO Mill. The Stage-1 was conducted in three methods: First Method is review of documents, to assess the adequacy of the type and substance of the required documents; Second Method is interview management unit’s personnel, to obtain more detailed information and to cross check; Third Method is field visit, to assess the adequacy of the actual implementation in the field.

19 March 2012. From morning until early afternoon, the team traveled from Jakarta to the site, then continued holding an opening meeting in the afternoon. The opening meeting was held in the Training Center Room attended by the General Manager, Senior Estate Manager, Assistants, and other related personnel’s. Further, a study of the company documents was carried out relating to the legal aspects, social management, environmental management, and operational activities reports in Mandau Selatan Estate.

March 20, 2012. The team reviewed the company documents related to the information management, long-term

planning, working procedures, waste management, management of air emissions, energy utilization, and employment

in Mandau Utara Mill and Mandau Utara Estate.

March 21, 2012. The team visited the operational sites of the company (estates and mills) to assess the

implementation of the company policy and other documents related to P & C RSPO.


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March 22, 2012. From morning until early afternoon the team carried out a discussion to compile reports on the non-

conformance of the assessment results. A Closing Meeting was carried out in the afternoon. The Closing meeting

was held in the Training Center Room attended by the General Manager, Senior Estate Manager, Assistants, and

other related personnel’s.

March 23, 2012. The team traveled from the site to Jakarta.

ST2 The Stage-2 was conducted to assess the sufficiency of implementation with the consistency done by the company (PT Adei) to the requirements of National Interpretation of the Republic of Indonesia from RSPO Principles and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008) and Supply Chain Requirement for CPO Mill. The assessment was conducted in three methods: First Method is review of documents, to assess the adequacy of the type and substance of the required documents, Second Method is interview with stakeholders and management unit’s personel, to obtain more detailed information and to cross check; and Third Method is field visit, to assess the adequacy of the actual implementation in the field. A number of findings and opportunity for improvement resulted from the Stage-2 assessment activities were submitted by MAL auditors to unit management (PT Adei), and the improvement results would be taken as verification for the next assessment (Surveillance-1). All information obtained were recorded in the Checklist of PT Mutuagung Lestari and become the main attachment to the Assessment Report. In detail, the second stage assessment process is as follows:

April 23, 2012. From morning until early afternoon the team traveled from Jakarta to Pekanbaru. In the afternoon the

team visited NGOs in Pekanbaru namely Scale Up and Jikalahari in order to consult. Then, the team studied

documents in the head office of Pekanbaru regarding the contractors used, contractors payment, evidence of land

restitution process, and evidence of tax payment.

April 24, 2012. In the morning, a public consultation is carried out with the local and district stakeholders. Eko and

Faruk held a public consultation with the local stakeholders (in village and sub district level) while Nanang Mualib held

a public consultation with related agency.

In the afternoon, an Opening meeting was held in Training Center Room, attended by the Regional Director, Senior

General Manager, General Manager, Senior Estate Manager, Assistants, and other related personnel’s, then

continued reviewing the company documents related to the legal aspects, social management, environmental

management and operational activities reports in Mandau Selatan Estate.

April 25, 2012. The team reviewed company documents related to the information management, long-term planning,

working procedures, waste management, management of air emissions, energy utilization, and employment in

Mandau Utara Mill and Estate.

April 27, 2012. The team visited the company operational sites (estates and mills) to assess the implementation of

the corporate policy and other documents related to P & C RSPO.

April 28, 2012. From morning until the afternoon, the team carried out a discussion to compile reports on the non-

conformance of the assessment results. In the afternoon, a Closing Meeting was held. The Closing meeting was held

in Training Center Room attended by the Regional Director, General Manager, Senior Estate Manager, Assistants,

and other personnel’s concerned.

2.3.4 Locations of Assessment

ST1

1. Block 12 A Mandau Selatan Estate, the area of the ongoing conversion of rubber plantation to be oil palm main plants. Ensuring zero-burning land preparation; observation of conservation activities undertaken to reduce soil erosion by planting Mucuna bractiata, terracing, and tree trunks piling (perumpukan).

2. Block 10 Mandau Selatan Estate, the area where the leguminous cover crops are cultivated to prevent land erosions and to maintain soil fertility – Observation on the leguminous cover crop (mucuna bractiata) condition under 1-year-old oil palm main plants, and the cultivation techniques.


ASSESSMENT REPORT


3. Block 11C Mandau Selatan Estate, the preparation area (conversion of rubber main plants to be oil palm main plants) on the hilly slopes – Observation on the forms and eligibility of terracing which is intended to prevent erosions and water flow control at ground level as long as the land covering has not been effective yet.

4. Semunai Village – Interview with the Secretary of Semunai Village (Mr. Baharudin Yusuf) concerning the disclosure of information, management of conflict, contribution of the company, and local labour absorption.

5. Boundaries Pole Number BPN 53 (Block 231 – 98 A 03 A SE), is the demarcation boundary of PT. ADEI with oil palm lands belong to people of Sei Balai Hamlet, Muara Basung Village. Observation on the existence and the conditions of boundaries pole and ditch which separate the company area (ADEI) from public land.

6. Boundaries Pole Number BPN 44 (Block 116 – 98A 02 ER), is the demarcation boundary of PT. ADEI with oil palm lands belong to people of Air Hitam Hamlet of Semunai Village. Observation on the existence and conditions of Boundaries pole and ditch which separate the company area (ADEI) from public land.

7. Estate Employee Housing of Division 7 Mandau Utara Estates. Observation and interview with the employee (Syarif – harvester) concerning the eligibility of the infrastructure and facilities provided by the company such as clean water, housing, lights, and household facilities.

8. Hazardous Waste Warehouse of Mandau Selatan Estate 1. Hazardous material warehouse is located in a permitted location with limited access. The amount of hazardous waste is managed and monitored. Access for other workers to enter the warehouse is limited. The warehouse officers routinely inspect the inflow and outflow of the hazardous waste. A hazardous material symbol has been provided at the site according to the rule.

9. Hazardous Material Warehouse of KMS1. Material Safety Data Sheet (MSDS) is available for every chemical material used and is translated to the local language so it is easy to understand for the employees. MSDS material storm and pointer are not available yet. Regular checking of the fire extinguisher is conducted every month by checking the conditions and the expiration date.

10. Diesel Fuel Tank. The layout of the diesel fuel tank has been customized with the rules. The receptacle with a capacity of 110% of the tank capacity (50,000 liters). Direct contamination of diesel fuel to the soil is minimized by hardening the shelter floor.

11. Reservoir (HCV4). Rain tree (Samanea saman) planting was found around the buffer zone area of reservoir. ADEI delineated 10 meters on the edge of the reservoir as a buffer zone, where activities of spraying and manuring are not allowed.

12. Application Land of P04. Application land area of P04 has been appropriate based on the recommendation of permit issued by the Head of District.

13. Monitoring Well of P04. Observation on sampling site for water quality test. 14. Pesticides mixing warehouse. Hazardous Materials symbols have been set in this area. Waste water in the

water trap has been reused for pesticides dilution. 15. Pesticides mixing place in Mandau Utara Estate 6. Observation and interview about the techniques of

pesticide mixing, OHS implementation, efforts on managing the waste water from pesticide washing that is reused for spraying and efforts on preventing the pesticide waste contamination.

16. Workshop in Mandau Utara Estate 6. Observation and interview with the head of the workshop about safety work procedures, the use of Personal Protective Equipment (PPE), management of used lubricant oil waste, the risk and handling of occupational accident.

17. Hazardous Material Warehouse in Mandau Utara Estate 6. Observation and interview with the head of the warehouse concerning the Hazardous material management, OHS implementation, medical check-ups, the existence of paraquat, and the existence of pesticide containing active material Brodifacoum which was not found.

18. Clinic in Mandau Utara Estate 6. Observation and interview with the company doctor concerning the workers medical screening, the absence of poisoning indications, medical waste management.

19. Block 126 Mandau Utara Estate 6. Observation on the existence of the sign boards of prohibition in hunting protected animals.

20. Along the Main Road Block 80-111 Mandau Utara Estate 6. Observation on the existence of Tunera subulata plant.

21. Block 72 Mandau Utara Estate 7. Observation and interview with supervisors and fertilization workers


ASSESSMENT REPORT


concerning technical work of fertilizing, the types and dosages of fertilizers used, regular check-ups, environmental policy implementation related to the Agrochemical application and the use of PPE, facilities and infrastructures provided by the company.

22. Block 106 Mandau Utara Estate 7. Observation and interview with the supervisors and spray workers concerning technical works of spraying, types and dosages of the pesticide used, environmental policy implementation related to the Agrochemical application, the use of PPE, implementation on the recognition of reproductive rights, regular check-ups.

23. Block 79 Mandau Utara Estate 7. Observation and interview with the supervisors and harvesters concerning technical work of harvesting, the use of PPE, First Aid Emergency.

24. Pole of Land Use Title Block PE 06 (Mandau Selatan Estate 3), Pole of Land Use Title No. 100 (Mandau Selatan Estate 3 Block PE 05), Pole of Land Use Title No. 217 (Mandau Selatan Estate 3 Block PE 06), Pole of Land Use Title No. 218 (Mandau Selatan Estate 3 Block PE 06). Observation and interview concerning the existence of the boundaries poles and their maintenances.

25. Penaso River Block BN 21, Mandau Selatan Estate 4. Observation and interview about Water Pump, Water Level, and Water Gate.

26. Jihat Hamlet. Interview with the Custom Leader and the Caretaker of the Grave of Datuk Panglima Darah Putih concerning management of HCV 6 area, information request mechanism and social management.

27. Block BN 11, Mandau Selatan Estate 4. Observation and interview about management of peat area. 28. Mess of Mandau Selatan Estate 1. Interview with the Chairman of the Worker Union concerning the labour

welfare. 29. Office of Mandau Selatan Estate 1. Interview with the gender committee leader about recognition of

reproductive rights and gender committee work program.

ST2 1. Hazardous waste warehouse Mandau Selatan Estate 1. Hazardous waste warehouse is located in a permitted

location with limited access. The amount of hazardous waste is managed and monitored. Access for other

workers to enter the warehouse is limited. The warehouse officers routinely inspect the inflow and outflow of the

hazardous waste. A hazardous material symbol has been provided at the site according to the rule.

2. Clinic in Mandau Utara Estate 1. Observation and interview with the company doctor concerning the workers

medical screening, the absence of poisoning indications, medical waste management.

3. Block Q90 (Landfill) Mandau Selatan Estate 2. There are 2 holes of landfill according to the waste

characteristics (organic and inorganic waste); there are not any traces of waste-burning found.

4. Block 90 D Mandau Selatan Estate 1 (Simpang Jepang). Observation of the road condition which is the

responsibility of PT. Chevron because of its function as an access to the oil fields and there are pipelines

underground. The avalanche of road is in the process of improvement (road hoarding).

5. Boiler Station – Observation and interview with boiler operators about the PPE provided by the company

include air plug, masks, glasses, helmets and gloves (available in good condition and are always worn); workers

health (health condition of the workers is good); working procedures (the workers comply with the SOP); training

(company provides training for operators); complaints to the company (never); boiler safety equipments (boiler

panels are isolated and only official workers are allowed to approach the panels); Emergency Response

Procedures (workers understand the emergency response procedures); observation and interview about air

sampling site with examination every semester, safety fences are provided around the sampling holes.

6. Thresher Station – Observation and interview with the thresher operators about operational records compiled

by the supervisors, equipments maintenance conducted by the Maintenance Staff every week.

7. Mill Workshop - Observation and interview with the head of the mill about the PPE provided by the company

include masks, glasses, helmets and gloves (available in good condition and are always worn); workers health

(health condition of the workers is good); working procedures (the workers comply with the SOP); training

(company provides training for operators); Emergency Response Procedures (the workers understand the


ASSESSMENT REPORT


emergency response procedures); head of the workshop understands occupational risks and how to deal with

occupational accident in the Workshop.

8. Waste Water Ponds. Observation of the Mill liquid waste management. The liquid waste is managed through

several phases in 7 ponds. The liquid waste in the 7th pond is then channeled to the Application Land area.

9. Kernel Crushing Plant. Observation and interview about kernel production and processing.

10. Block PN 12 A. There are not any burning activities in land clearing. The target of rubber land conversion to be

oil palm until 2016 covers 300 Ha/year, there are terracing activities.

11. Mandau Selatan Estate 3. Observation and interview with the supervisors and spray workers concerning

technical works of spraying, types and dosages of the pesticide used, environmental policy implementation

related to the Agrochemical application, the use of PPE, implementation on the recognition of reproductive rights,

regular check-ups.

12. Block PE04 Mandau Selatan Estate 3. The application land area of PE04 has complied with the permit

recommendation from the head of district. Observation on the sampling site for water quality examination

(Monitoring Well) and further observation of the public consultation result which stated that Block PE04 is an

application land area with Flat Bath system.

13. Beringin Village. Interview with the community leader about information request mechanism, complaints,

management of conflicts and contribution of the company to the local community development (CD/CSR).

14. Office of Mandau Selatan Estate 1. Interview with the Chairman of Worker Union Riau Independent regarding

complaint solving, consultation and communication between the company and the Worker Union. Interview with

the representative of CV Sejahtera Jaya regarding the process of labour agreement, payment and mechanism of

assigning contractors.

15. POM Housing. Observation and interview with the workers concerning the Realization of the Expansion of

Kindergarten based on CSR program.

16. Mandau Utara Estate 7 Housing. Observation of the pump house, diesel spill management, available facility

program and transportation facility for the workers and students.

17. Mandau Selatan Estate 4. Borders community areas of Beringin Village include BPN Pole Number 83 (Block

BN 02), BPN 84 (Block BN 03), BPN Pole Number 86 and 87 (Block BN 07), all in good condition and the

Boundaries Pole codes are still clearly legible.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Public consultation process conducted through 2 (two) ways i.e.: 1) Public announcement in the RSPO website (www.rspo.org) minimum 30 days before the activity conducted. 2) Send the Comment and input letter and consultancy response form to related stakeholders through mail post and

email. Conducting a Public Consultation. 3) Public consultation with local stakeholders carried out on April 24, 2012 at KMS 1 meeting room and visiting the

NGOs and District government on April 23-24, 2012. A number of verbal recommendations from the stakeholders both positive and negative were received by the audit team to be taken into account in Stage-2 assessment process.

2.4.2 List of stakeholder contacted

Please find Appendix 3

2.5 Determining Next Visiting

The next visit (Surveillance 1) will be determined later, one year after certificate issued.

http://www.rspo.org/


ASSESSMENT REPORT


3.0. ASSESSMENT RESULT

3.1. Summary of Assessment Report of the RSPO Certification

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

Records of information request are documented in Socialization and Information Logbook and Responses Record is documented in

Socialization and Information Logbook which is then recapitulated in Expedition Logbook.

Socialization and Information Logbook contains Information Requests, responses from the company and realization evidence from

every information request, for example:

1. Information Request about the needs of mountain rocks for road maintenance in the area of Mandau Selatan Estate 2

dated 06 January 2012 which was verbally submitted by Mr. Suroto and was also verbally responded by the company (Mr.

Hermanto). Realization of the request was taken in February 2012 signed by related Stakeholder (Mr. Suroto). All

information about the request and company responses processes are documented in Socialization and Information

Logbook of Mandau Selatan Estate 2.

2. Information Request from community leader of Balai Pungut Village (Mr. Suirman) on 06 March 2012 regarding request for

the company’s cooperation to prevent intrusion elephants. This request was responded by the company on 07 March 2012

by cooperating with the community to banish elephants and to direct them to the west where there are still forests (Kojo

area). This information request was submitted verbally and has been already documented in Book of

Information/Socialization Request, consultation and Communication of Mandau Selatan Estate I.

The company has established the retention time of the information request and responses. The document has not been saved in

retention time based on the concernment. For example, the document of SOP is kept for a 5-year retention time.

Status: Full Compliance.

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

It is documented in Document Main List dated 1 November 2011, the classification of the documents based on RSPO Principle and

in the status is given a remark whether the document is Confidential (1) or available for Public (2). For example, Document of

Plantation Manager Memo is Confidential and External/Internal Letter is a Public Document. Legal Document such as:

1. Location Permit; NoKPTS.30/I.L-VIII/1989 dated 30 August 1989 issued by the Governor of Riau Province regarding

Location Permit and Right Acquisition/Land Purchasing covering more or less 15,800 hectares in Mandau Subdistrict of

Bengkalis District for rubber plantation on behalf of PT. Adei Crumb Rubber Factory.

2. Forest Area Acquisition; Decree of Forestry Minister No. 027/Kpts-II/90 dated 13 January 1990 regarding Forest Area

Acquisition in Riau Province include some of Forest Cluster of Samsam River – Penaso River in Bengkalis District covering

15,826.25 Ha and Forest Cluster of Air Hitam River and surrounding areas in Kampar District covering 12,734 Ha for

planting cultivation on behalf of PT. Adei Crumb Rubber Factory.

3. Plantation Business Permit; No. HK.350/E5.335/04.97 dated 22 April 1997 regarding Agreement of Cultivation for Plantation

Principle to customize cultivation coverage of PT. Adei Plantation dan Industry of Riau Province. Area of Oil Palm Estate:

19,440 hectares, Rubber: 6,000 hectares. Capacity of POM is 90 tons of FFB/hour for Kampar and Bengkalis.

4. Plantation Business Permit No. 744/UT.512/VI/2004 issued by Head of Plantation Agency of Bengkalis dated 18 June 2004


ASSESSMENT REPORT


regarding Plantation Business Permit on behalf of ADEI P & I Mandau Estate of Pinggir Subdistrict with Oil Palm Estate

covering 8,900 Ha and Rubber of 6,000 Ha so the total area is 14,900 Ha.

5. Land Use Title No 12/HGU/1990 dated 10 July 1990 covering 14,900 Ha, valid from 10 July 1990 until 31 December 2020.

6. Extension of Agreement of the Conversion from Rubber Plant to Oil Palm Plants on behalf of ADEI Plantation & In PT. ADEI

PLANTATION and INDUSTRY from Environment Bodies of Bengkalis District No. 503/BP2T-IR/360 dated 19 December

2011 valid until 19 December 2016 with the target of conversion area 4,427 Ha and 419 Ha of which have been manifested,

with a conversion activity report every semester.

Environmental Documents for example:

1. Documents of Environmental Impact Assessment (EIA and Environmental Management Plan/Environmental Monitoring

Plan) approved by Director General of Nature Protection and Conservation/Chairman of the Central Commission of EIA of

Forestry and Plantation Ministry No. 86/DJ.VI/AMDAL/1999 dated 6 July 1999 with an area of study 14,900 Ha area

consisting of 8,900 Ha of Oil Palm Estate and 6,000 Ha of Rubber Estate. Capacity of POM of 80 Tons of FFB/hour.

2. Report of Environmental Management and Monitoring every semester, for example period of January-June 2011 which is

submitted to the Environment Bodies (BLH) of Bengkalis District dated 24 August 2011 and period of July – December 2011

which is submitted to the Environment Bodies (BLH) of Bengkalis District in accordance with the Forwarding Letter No.

13/1/2012 dated 25 January 2012.

3. Document of HCV Identification in August 2011 compiled by the Aksenta with the Assessor Sudjanika (Approved RSPO),

Pupung F. Nurwantha (Approved RSPO), Robert H. Sinaga, Gena Lysistrata, and Yunus Bahar.

4. SOP of environment such as SOP of the Elephant Handling (SOP 15), HCV Identification and Management dated 1

October 2011.

5. HCV Management Plan; for example HCV Management Plan – Mandau Complex dated 13 March 2012.

Social Documents such as;

1. Document of direct assistant to every request from community approved by the management is documented in Assistant

Request Logbook (RSPO 11), for example assistant request of the Mosque landfilling sent by the Management of Nurul

Hikmah Mosque of Muara Basung Village to KMU dated 31 October 2011. The company responded through letter dated 12

November 2011 and the requested was realized in 20 November 2011 according to the receipt of Head of Muara Basung

Village.

2. Details of Management Expenses of Elementary School (SD) KLK on behalf of KLK Foundation paid by the Company.

3. Taxes and retribution payment to the government, for example Land and Building Tax (L&B Tax) year 2009 to 2011;

a. Land & Building Tax year 2009 according to Deposit Slip of Land & Building Tax dated 22 October 2009 in the amount

of IDR 1,623,715,160.

b. Land & Building Tax year 2010 according to Deposit Slip of Land & Building Tax dated 25 October 2010 in the amount

of IDR 2,271,686,633.

c. Land & Building Tax year 2011 according to Deposit Slip of Land & Building Tax, September 2011 in the amount of IDR

2,484,789,860.

d. Document of Payment Summary and Taxes Report year 2010 to 2011.

4. List of Company Stakeholders.

5. Company SOPs and policies in Social Field, for example SOP of the mechanism of complaint submission.

Company has established the retention time of each document in Document Main List in accordance with the importance, for

example RSPO Principle 2 document file has a 5-year retention time but specifically for letter of permission refers to the retention

time.

Status: Full Compliance


ASSESSMENT REPORT


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

PT. ADEI has provided evidences of legal fulfillment related to the plantation and Palm Oil Mill operations, include:

1. Document of land exploitation in the form of Land Use Title (HGU) No 12/HGU/1990 dated 10 July 1990 covering 14,900

hectares, valid from 10 July 1990 through 31 December 2020 in accordance with Statue No. 5 year 1960 regarding Agrarian

Principle Act; and Regulation of Agriculture Ministry No. 26/Permentan/OT.140/2007 regarding Guidelines of Plantation Business

Permit.

2. Plan on fulfilling workers minimum wage referring to the Regulation of Governor of Riau Province No: 11 year 2012 dated 6

February 2012 regarding Minimum Wage of Coconut and Oil Palm Plantation/Agriculture Sub Sector (USMP). The plan is

contained in the form of Board of Directors Memo dated 12 March 2012 regarding adjustment of the basic wage of permanent

employees to be in the amount of IDR 1,305,450.00 plus 15 kgs of rice equals IDR 84,000.00 = IDR 1,389,450.00 (USMP). Basic

wage for workers with 0-1 year working period is IDR 1,420,000.00 and for workers with 21-22 years working period is IDR

1,680,000.00. The policy is to be implemented in the payroll of April 2012, while wage of January-March is to be paid back.

3. Permit of Hazardous Waste Temporary Warehouse from the Environment Bodies of Bengkalis District No 28 dated 18 May 2011,

is valid for 5 (five) years in accordance with Government Regulation No. 18 year 1999.

4. Permit of Water Waste Utilization on land to Plantation of PT. ADEI PLANTATION is valid for 5 (five) years, in the form of Decree

of Bengkalis District Head No: 70/KPTS/I/2012 dated 17 January 2012 in accordance with Government Regulation No. 18 year

1999 Jo. PP No. 85 year 1999 regarding Hazardous Waste Management.

5. There is an Organization of Guiding Committee of Occupational Safety and Health (P2K3) which is validated by Labour and

Transmigration Agency of Bengkalis District, referring to the Regulation of Labour Ministry No. 5 year 1995 regarding

Occupational Health and Safety Management System (SMK3).

6. Evidence of document cover letter (No. AD-KMS/64/04/12) of Hazardous Material Balance is available per 3 (three) months on 9

April 2012 accepted by Environment Bodies of Bengkalis for period of November 2011 – February 2012 in accordance with

Attachment IIIa. Regulation of Bengkalis Head of District No. 27 year 2010.

7. Application Letter of Training on the Usage of Limited Pesticide and awarding of certificates dated 30 March 2012 (Letter No. AD-

KMS/Ext/17/III/2012. The company has shown a letter from the Department of Plantation and Forestry, No. 525/Disbunhut-

PP/IX/2012/0409 about Recommendations usage Herbicide (Gramoxone) and operator training plan on 15 October and 29

November 2012, referring to the Regulation of Agriculture Ministry No. 7 year 2007.

8. Application Letter for Publication of Occupational Health and Safety (OHS) License No. AD-KMS/Ext/16/III/2012 dated 30 March

2012 to the Head of Labour and Transmigration Agency of Bengkalis District referring to the Regulation of Agriculture Ministry No.

9 year 2010, is available. The company has shown a letter from the Department of Labor No. 560/DTKT/PK/IX/201/404 about

progress administration License of heavy machinery/Crane Operators (85 operators) are still in the process of issuing from the

Ministry of Labor.

9. Company appointed Mr. Adria (Expert of Occupational Health and Safety No. Reg. 7907/PK3/AJ/2011/PO) secretary of Guiding

Committee of Occupational Safety and Health for Notification Letter of Guiding Committee of Occupational Safety and Health

personnel replacement in accordance with notification letter on 12 April 2012, evidence from the Delivery Service referring to the

Regulation of Labour Ministry No. 4 year 1987.

10. Based on the visit in Hazardous Material Warehouse and Diesel Tank in Mandau Utara Estate 6, it is seen that the Hazardous

Material symbol has been changed and has been adjusted to the Regulation of Environmental Ministry No. 3 year 2008.

11. From the visit on water reservoir division 7 of Mandau Utara Estate 7 it is noted that company has repaired the water pump

house by closing the channel out and making a receptacle for diesel so that direct contamination to the surrounding environment

does not occur. It is an effort to fulfill the Government Regulation No. 18 year 1999 Jo. PP No. 85 year 1999.


ASSESSMENT REPORT


Company already has a list of regulations but it should be supplemented by local regulations, for example Local Regulation

(Province, District, or Village). One of the efforts proved to the regulation adjustment is the plan to fulfill employee minimum wage

referring to the Regulation of Riau Governor No. 11 year 2012 dated 6 February 2012 regarding Minimum Wage of Coconut and Oil

Palm Plantation/Agriculture Sub Sector (USMP). The program is contained in the Board of Directors Memo dated 12 March 2012

regarding adjustment of the basic wage of employees.

List of Rules and Regulation related to operations, detailed rules, related RSPO indicators, brief explanation of the rules, and validity

period is available. Listed regulations include Statue No. 18 year 2004 regarding Plantation; Statue No. 41 year 1999 regarding

Forestry; Statue No. 5 year 1960 regarding Agrarian Principle Act; Regulation of Agriculture Ministry No. 26 year 2007 regarding

Business Permit Guidelines.

Evaluation on the legal fulfillment is conducted through regulation monitoring by a person in charge, and the result is presented in

the Regulation Fulfillment Checklist that detail the types of regulation, fulfillment status, validity period, and person in charge.

Major.2.1.1 Status: Compliance with observation

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

Similar to the ST I implementation where the process of obtaining the land tenure right legally is as follow:

1. Location Permit; No. KPTS. 30/I.L-VIII/1989 dated 30 August 1989 issued by the Governor of Riau Province regarding

Location Permit and Right Acquisition/Land Purchasing covering more or less 15,800 Ha in Mandau Subdistrict, Bengkalis

District for Rubber plantation on behalf of PT. Adei Crumb Rubber Factory.

2. Forest Area Acquisition Permit; Decree of Forestry Minister No. 027/Kpts-II/90 dated 13 January 1990 regarding Forestry

Area Acquisition in Riau Province include some of Forest Cluster of Samsam River – Penaso River in Bengkalis District

covering 15,826.25 Ha and Forest Cluster of Air Hitam River and surrounding area in Kampar District covering 12,734 Ha

for planting cultivation on behalf of PT. Adei Crumb Rubber Factory.

3. Plantation Business Permit (IUP); No. HK.350/E5.335/04.97 dated 22 April 1997 regarding Agreement of Cultivation for

Plantation Principle to customize cultivation coverage of PT. Adei Plantation dan Industry of Riau Province. Area of Oil Palm

Estate: 19,440 Ha, Rubber 6,000 Ha. Capacity of POM is 90 tons of FFB/hour for Kampar and Bengkalis.

4. Plantation Business Permit No. 744/UT.512/VI/2004 issued by Head of Plantation Agency of Bengkalis dated 18 June 2004

regarding Plantation Business Permit on behalf of ADEI P & I Mandau Estate of Pinggir Subdistrict with Oil Palm Estate

covering 8,900 hectares and Rubber 6,000 hectares so the total coverage of the area is 14,900 Ha.

5. Land Tenure Status in the final after Land Use Title (HGU) License No 12/HGU/1990 dated 10 July 1990 was published,

covering 14,900 Ha, valid from 10 July 1990 until 31 December 2020.

Legal border areas are able to be found in forms of:

1. Boundary stone inscribed with National Land Agency (BPN) and pole number. The pole is set in each angle of polygon.

From the field visit to KMS 4 that borders the community areas of Beringin Village include Pole No BPN 83 (Block BN 02),

BPN 84 (Block BN 03), BPN Pole No. 86 and 87 (Block BN 07), all are in good condition and the HGU Pole codes are still

clearly legible.

2. Isolation ditch along the borderline which clearly separates management area of PT. ADEI Plantation from other parties.

The isolation ditch connects one boundary pole to another so they form closed polygon. For example, boundary poles BPN

83 – 87 are located in the isolation ditch that separates the management area of PT. ADEI from community land of Beringin

Village.

Based on the information from company management and the result of visiting Jihat hamlet; Semunai Village and Beringin Village, it

is stated that until the ST2 implementation there are not any claims upon the land planted either by the company in KMS or in KMU.


ASSESSMENT REPORT


In the field, there are indeed the Land Use Title areas which are still controlled by the community, even the hamlet (Jihat). However,

the company has a policy acknowledged by the community not to clear the land controlled by community until compensation process

is held.

Documents of compensation settlement available consist of document of statement letter, Minute of Settlement of Land

Compensation Payments, map of collective measurement result between Company and parties concerned, along with the payment

receipts from Company. For example:

1. KMS 3; Available documents of land compensation settlement consist of Document of Statement Letter, Minute of

Settlement of Land Compensation Payment, Map of collective measurement result between company and parties

concerned along with the payment receipt from the company. For example: land belonging to Mr. B. Nababan (citizen of

Tengganu Village) covering 3.85 hectares was paid on 27 April 2004.

2. KMS 4; Available documents of land compensation settlement consist of Document of Statement Letter, Minute of

Settlement of Land Compensation Payment, Map of collective measurement result between the company and parties

concerned along with the payment receipt from the company. For example: land belonging to Mr. B. Mukhtar (citizen of

Tengganu Village) covering 8.96 hectares was paid on 29 June 2004.

3. SOP 26 is available. Dispute Negotiation Procedure involving the third parties such as National Land Agency (BPN) and

revision Non-Governmental Organizations (12 April 2012) to the community around the company as an effort to involve

every party in the conflict settlement. For example: Socialization to Head of Semunai Village and Balai Raja Village (19 April

2012).

In Conflict Settlement Mechanism, company classifies Dispute into 3 (three) types as follow:

1. Land/border dispute

2. Squatter Dispute

3. Social Issues

Each dispute is handled by GM/Manager through the process according to the types of conflict occurred.


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

Available documents of agreement/negotiation of Land Compensation Settlement equipped with Map of collective measurement

result between the company and the land owners which are submitted to the company, for example:

1. Available documents of compensation year 1975 – 1989 at the head office consist of Documents of Statement Letter,

Minute of Land Compensation payment, Map of collective measurement result between company and parties concerned

along with the payment receipts from the company. For example, land compensation on 12 October 1989 for 79 citizens of

Muara Basung Village of Mandau Subdistrict.

2. Available documents of land settlement (compensation) of Beringin Village in June 2003 for T. Hasim’s group covering 237

Ha, Abu Bakar’s group covering 144 Ha, Suandi’s group covering 378 Ha (total coverage 759 Ha) consist of Documents of

Statement Letter, Minute of Land Compensation payment, Map of collective measurement result between company and

parties concerned along with the payment receipts from the company.

3. Available documents of land (compensation) settlement consist of Document of Statement Letter, Minute of Settlement of

Land Compensation Payment, Map of collective measurement result between company and parties concerned along with

the payment receipt from the company. For example: land belonging to Mr. B. Nababan (citizen of Tengganu Village)

covering 3.85 Ha was paid on 27 April 2004.


ASSESSMENT REPORT


4. Available documents of land compensation settlement consist of Document of Statement Letter, Minute of Settlement of

Land Compensation Payment, Map of collective measurement result between the company and parties concerned along

with the payment receipt from the company. For example: land belonging to Mr. B. Mukhtar (citizen of Tengganu Village)

covering 8.96 hectares was paid on 29 June 2004.

Available map that indicates areas that are still under public ownerships (In company’s map, it is called lands dispute).


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

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

Available Forecast for 5 (five) years (2011-2016) for mills that itemize the FFB, OER, oil produced, kernel, Palm Kernel produced,

and revenue forecast. For example:

1. 2011/2012 – own FFB (187,969 tons); outsider FFB (20,500 tons) – OER (23.5) – Oil produced (48,990.225 tons) – Kernel

5% - PK Produced (10,423.45 tons) – revenue forecast CPO: IDR 8,000,000/mt and palm kernel: 4,850,000/mt.

2. 2012/2013 – own FFB 190,017 mt – outsider FFB (20,500 mt) – OER (23.5) – Oil produced (49,471,495 mt) – revenue

forecast same as above.

3. 2013/2014 – own FFB (195,866 mt) – outsider FFB (20,500 mt) – OER (23.5) – Oil produced 50,846,010 mt) – kernel 5%.

Note: CPO cost forecast raises 5% per year.

Available Oil Palm Corp Forecast Division Summary 2011 – 2016 and plants projection for the next 5 (five) years, for example KMS

2 Mature Area year 2011/2012 (355 Ha), 2012/2013 (355 Ha), 2013/2014 (355 Ha), 2014/2015 (848 Ha), 2015/2016 (848 Ha).

Forecast for 10 years explains total cost of FFB, CPO, and PK production year 2010-2020.

There is no replanting program in addition to the conversion from rubber to oil palm. Letter of Extension of Agreement of the

Conversion from Rubber Plant to Oil Palm Plant issued by Integrated Licensing Service Agency No. 503/BP2T-IR/360 valid until

2016 for land covering 4,427 hectares is available. Data of Rubber to Oil Palm Program KMS 1 and 2 year 2011-2016 is also

available.

Oil Palm seeds used are obtained from certified seeds manufacturer (Applied Agricultural Resources Sdn. Bhd.). Certificate as Oil

Palm Seeds manufacturer for Applied Agricultural Resources Sdn. Bhd. issued on 25 November 2010 is available.


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

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

The SOP RSPO of PT. Adei Plantation & Industry is available, validated by General Manager on 1 October 2011 includes activities

according to the P&C RSPO and Technical Guidance of Oil Palm Plantation of PT. KLK Agriservindo (Polis No.: GP/AGRIC/OP) 25

November 2004. It includes guidance on Harvesting, Land Maintenance, Nutrient, Pest and Disease, conservation, replanting

covered zero-burning land preparation (also contained in SOP 4/Replanting), seeding, blocks identification, road and drainage

construction. SOP of LC is not available since the area is a conversion area from rubber plant and should there be a new land

clearing, the technical work is to be referred to SOP of replanting.

Standard Operational Procedures for Palm Oil Mill processing include the process of weighing bridge receipt, loading ramp,

sterilizer, thresher, digester, press and oil room. The standard has achieved validation from Mill Controller (Chong Kong Fat) on 1

December 2011. SOP of SCCS is available namely: SOP of RSPO Supply Chain Certification System Scheme for Palm Oil Mill in

October 2011 validated by Mill Advisor.


ASSESSMENT REPORT


Operational inspection and monitoring are contained in the document of PT. ADEI/SWP/Sekar Bumi Management Meeting and

performance Review. Updated in January 2012 and is held every 2 (two) months.

RSPO audit report by Stephen Tiong, Yah Kim Seng, and Florida Hutasoit dated 12 March 2012 – 15 March 2012 is available.

Record of operational result for Mandau Selatan/Mandau Utara Estate is available in monthly period of Progress Report for the

Month which accumulates data from every Estate (KMS 1, KMS 2, KMS 3, and KMS 4). It describes rubber total crop, cost of

production, FFB total crop, Quality and Dispatch Control, Upkeep Mature Area (weeding and P&D Spraying for nettle caterpillars),

Upkeep Mature Area cost, Key Performance Area (mature area), Possible harvesting working days for the month, Harvesting Round,

and hectare statement.


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

Leaf and soil sampling activity is conducted by PT. APPLIED AGRICULTURAL RESOURCES INDONESIA, while the laboratory

analysis is held in Kuala Lumpur Laboratory, Malaysia. Leaf and soil analysis is conducted every year.

Sample of leaf analysis result (30/7/2011) Sample origin PM1998 A: N (2.52% DM); P (0.157% DM); K (1.07% DM); Mg (0.21% DM);

Ca (0.59% DM); Sample of soil analysis result (Attachment 4.0: OIL PALM MANURING RECOMMENDATION 2011/2011)

Sample origin PM2005 C1, depth 0 – 15 cm. pH (4.40); Org-C (1.88%); N (0.14); C/N (13.8); P (34 ppm); K (0.1 miliequivalents per

100 g); Ca (0.22 mEq/100 g);Mg (0.08 mEq/100 g) C.E.C (15.9 mEq/100g).

Document of Oil Palm Manuring Recommendation 2011/2012 held by Agronomist dated 16 May 2011 is available, which clarifies

general description of oil palm plants in every estate and manuring recommendation. For example, manuring recommendation in

Mandau Utara Estate 6 (KMU 6) as follows:

1. Manuring block 1 PM 1998 A1 – covering 119 Ha – January 2012 (Urea 1.5 kg/stake); February 2012 (MOP 1.25 kg/ stake);

June 2012 (MOP 1.25 kg/ stake); July 2012 (1.25 kg/ stake).

2. Manuring block 1 PM2002A – covering 30 Ha – November 2011 (MOP 1.25 kg/stake); December 2011 (RP 2.50 kg/stake);

January 2012 (Urea 1.25 kg/stake); February 2012 (MOP 1.25 kg/stake).

Organization has Fertilizer Application Details to monitor manuring activity per block that itemizes: manuring block, block width, types

of fertilizer, and amount given to per stake of oil palm. Achievement level of manuring is monitored through Monthly Manuring Report

which itemizes types of fertilizer should be given; width of manuring area planned; realization of manuring area; and achievement

percentage.

Sample of manuring activity in KMU 6 February 2012:

1. MOP – 70,606 tons – realization 395 hectares – achievement 100% - completed

2. RP – 141,212 tons – realization 395 hectares – achievement 100% - completed

PT. ADEI has the license for water waste treatment to the soil in the form of Decree of Bengkalis District Head No. 72/KPTS/I2012

(expired) and has been extended with Letter of Decree of Bengkalis District Head No. 70/KPTS/I2012 (extension).

Site map of application land is available, sketch of application land networking layout, include: Application Land Pond (13.20 m x 13

m x 2.5 m) and over flow pond.

PT. ADEI has conducted liquid waste and soil chemistry analysis; the analysis is conducted every month, while soil chemistry

analysis is conducted annually in cooperation with Public Work Agency, Technical Executive Unit of Testing. The latest reports are in

February 2012 (KU.02/UPT.P/518/2012 and KU 02.02/UPT.P/290/2011

Report of the amount of water waste monitoring result is available: March 2012: FFB (11,581.960 MT), water waste volume (11.844

M3) with the ratio of 0.98. The water waste volume used is the whole water waste volume produced by the mill and has passed

through the process of Waste Water Treatment Plan (WWTP/IPAL). Total of coverage: Application Land realization 41.5 Ha and

Application Land year plan covering 12.6 Ha.


ASSESSMENT REPORT


Application of Empty Fruit Bunch (EFB) is only carried out in KMS 3, the amount of EFB returned to the estate is about 0.02 – 3.01

% out of production. From the record of March 2012, processed FFB (11,521.560 Mt); the amount of EFB returned to estate is

960.380 tons or about 0.73 %, Balance of EFB is for power generation in KCP.


4.3 Practices minimize and control erosion and degradation of soils.

Map of soil type spreading in scale of 1:120,000 is available. 6 (six) land units are identified as follow:

1. Pfq 3.2 (7,068 ha) – Kandiudults, Dystropepts, Hapludox, and tropaquepts – sand – slope 3-8% - good to bad drainage –

very deep – very low fertility.

2. Pfq 3.1 (3,841 ha) - Kandiudults, Dystropepts, Hapludox, and tropaquepts – clay, sand – slope 3-8% - good drainage –

deep to very deep – low fertility.

3. Pfq 1.1 (1,910 ha) - Kandiudults, Dystropepts, Hapludox, and tropaquepts – clay, sand - slope <3% - bad to moderate

drainage – deep to relatively deep – low to medium fertility.

4. Pfq 2.2 (1,072 ha) - Kandiudults, Dystropepts, Hapludox, and tropaquepts – clay, sand – slope 0-8% - good drainage –

deep to very deep – low fertility.

5. Au.1.3 (428 ha) - Dystropepts, Fluvaquents, and tropaquepts – clay, sand – slope < 3% - bad to moderate drainage – deep

to very deep – low to medium fertility.

6. Pq 4.3 - (42 ha) - Kandiudults, Dystropepts, and Hapludox – slope 3-16% - good drainage – deep to very deep – very low

fertility.

Land survey result (printed on 16 April 2011) conducted by PT. Applied Agricultural Resources Indonesia shows that slope condition

of PT. ADEI Plantation area is between 0 – 16 %. However, based on the field observation result, there are several highly slope sites

(in small scale), for example Block 11C KMS 2 Division 7, the area of the ongoing planting, there are also terracing construction and

legume crops planting of Mucuna bracteata in the terrace edge which is also equipped with setting pattern of surface flow through

the ditches flow into the terrace. However, land erosions level should be continuously monitored to ensure the strategies and

conservation action have been conducted effectively in controlling land erosion in the threshold allowed referring to Government

Regulation No. 150 year 2000.

Road-maintaining plan and realization available in the matrix form of Road Maintenance Program that details the maintaining sites

(blocks) and month of implementation. There is an evidence that road maintenance plan has been consistently implemented. For

example, for period of 2012 in KMU 05 there are 9 (nine) roads to be maintained, namely: January (98A 01, 98A 02); March (98A 03,

99A 04); May (00A 05, 02A 06); July (03A 07, 05A 08, 06A 09); September (98A 01, 98A 02); November (98A 03, 99A 04). Roads to

be maintained are prioritized on the condition and production activity (transporting). Realization of January (98A 01, 98A 02). Based

on the visit to KMS 4, there are still roads in bad condition and from the interview with company management, it is stated that the

delay of the road-maintaining is due to the lack of equipments. (The non-conformance, see CAR 2012.09).

Result of the field visit to block BN11 KMS 4; BN21 KMS 4 found that water level management system to peat land has been

conducted through constructing the ditch network where water level is maintained to the level of 50 cm from the ground level.

Based on information from Map of soil type spreading in scale of 1:120,000 existing in PT. ADEI estate and the result of soil

sampling analysis that is routinely conducted every year, there are not any marginal soil and critical soil found in the area of PT.

ADEI estate. However, in general the soil is clay and sandy in texture, so according to that condition PT. ADEI applies manuring

using MOP to support better growth of oil palm. Applied dosage is in accordance with leaf and soil analysis result. Sample of

application in PM 1998 A1, covering 95 Ha MOP applied 193 kg/Ha; PM 1998 A2, covering 99 Ha, MOP applied 178 kg/Ha.

Minor 4.3.3 Status: See Non-conformance CAR No. 2012. 09 in Minor category.


ASSESSMENT REPORT


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

Protection for water flow and wetland has been attempted by the company to maintain the quality and the availability of surface

water and ground water, such as:

a. Constructing buffer zone around the watershed area (POM water reservoir).

b. Delineating 10 meters around the water source for buffer zone to reduce water pollution.

c. Ensuring no spraying and manuring in surrounding area of buffer zone.

d. Ensuring proper disposal for hazardous waste, domestic waste, empty fruit bunches, and boiler dust.

e. Ensuring effluent is managed so it meets the requirement to be discarded.

f. PT. ADEI has allocated riparian area such as in Penaso River, treatment applied is planting/enriching riparian area with

wood plants to reinforce riverbanks.

Water management program has to meet the existing rules and regulations. Water quality is monitored and periodically measured

and is a part of environmental monitoring and management program report (RKL/RPL). ADEI has measured the quality of drinking

water, reservoir, water waste of mills and housing.

Water test on pH, BOD, and TSS parameters in the housing waste water has met the standard of Decree of Environmental

Ministry/112/2003. Water test on pH, BOD, COD, AN, TSS parameters in the mill waste water has met the Decree of

Environmental Ministry/112/2003.

Water test on BOD, COD, AN, TSS parameters in drinking water has met the standard of Government Regulation No. 82

Year 2001.

Water test on COD parameter in reservoir water exceeds the standard required by Government Regulation 82 Year 2001

but the company has improved the water treatment in the mill before being distributed for domestic needs of the workers.

Measurement for bacteria Eschericia coli is to be conducted in June 2012.

BOD of mill water waste has been measured and monitored. BOD of mill water waste is analyzed every month by MCL (Mandau

Central Laboratory) and Public Works Agency. The latest record is February 2012 with BOD water waste result is 1,267.2 mg/l. The

value is below the threshold (5,000 mg) in accordance with Governor Regulation No. 35 Year 2007 and Decree of Environmental

Ministry No. 28 Year 2003. Evidence of Application Letter for Water Waste Sampling Test/Inspection of PT. ADEI to Head of

Technical Executive Unit of Testing, Public Works Agency of Riau Province, for March 2012 (No.01/MPOM/III/2012 dated 08 March

2012) and for April (No. 02/MPOM/IV/2012 dated 12 April 2012) is available. Testing result for March and April 2012 has not been

accepted from Public Works Agency.

Water utilization for mill is managed and monitored. The following are the data:

Water utilization trend in 2011 for domestic and mill is 476,009.61 (2.43 m/ton FFB)

Water utilization trend in 2010 for domestic and mill is 512,193.56 (2.94 m/ton FFB)

The trend shows a decrease in water utilization for mill.


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

Company has SOP of Integrated Pest Management/IPM (RSPO SOP No. 7) yet the company should review the SOP concerning

pesticide use in pest and disease management without considering attacks level census and economic threshold of pest, for

example rat control.

IPM Programs are as follows:


ASSESSMENT REPORT


Pest and disease census is programmed every 6 (six) months.

Continuously planting beneficial plants (Tunera and Cassia).

Surveillance of Tyto alba every 3 (three) months with Manager and Assistant as persons in charge.

Monitoring pesticide toxicity every spraying.

Annual IPM Training, for example sprayer and IPM training.

Record of IPM program realization:

1. Areas of chemical management is contained in Upkeep of Mature and Immature Areas that inform about plan and

implementation of pesticide application include: targeted application area, total coverage of unimplemented area, total

coverage of application area, types of tasks, types of pesticide used. For example in KMS: Plant year 2004, Block 02, 95

Ha, implemented area 84.7 Ha, remaining area 10.3 Ha, nature of work done: Selective Spraying, Type of Chemical

Application used per cup: Supertox and Trendy.

2. Area of Biological Pest Management.

Site point map of Tunera planting is available.

Document of Tyto alba monitoring (inspection is performed every six months by the Staff. For example, Tyto Alba

monitoring in KMS1 on 12 February 2012 performed by Manseluddin).

Nettle caterpillar monitoring on 6 February 2012 based on the report of P&D (Nettle Caterpillar Census) in KMS 1, there is

not any attacks, Census Map by Census Team.

Basal Stem Rots/BSR Census (Ganoderma Census) in KMS 1 on 3 and 15 February 2012 stated no attacks.

3. IPM Training:

List of Participants and IPM Training Scoring and RSPO socialization on 18 April 2012 in KMS 4 available, attended by 8

participants.

List of training by Senior Manager on 13 April 2012 in NME available, attended by 13 participants (Supervisors and IPM

workers).

4. Chemical Pest Management, for example: record of rat bait provision in Block 98A 01 covering 47.5 Ha. Management is

performed by providing bait for all trees with pesticide active material of Brodifacoum with toxicity of 25 mg/ha = 0.0022

mg/kg FFB.

Costing Book available in every division which is compiled and analyzed every month by Assistant and informs about active

material/hectare for each active material, for example in Block PE02 the Spot Spraying: Supertox with active material Paraquat

Dichloride of 276 g/l (use 0.053 liter/Ha; active material per ha = 14.63 g/ha) and Dalopir with active material Trichlopir of 494.2 g/l

(use 0.014 liter/ha; active material per ha = 6.89 g/ha).


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

The company has obtained the document of Regulation of Agriculture Ministry No. 01/Permentan/OT.140/1/2007 regarding the list of

banned pesticide active materials and limited pesticides as a reference to know whether the agrochemicals used are permitted by

the relevant authorities or not.

These pesticides used have obtained their registration numbers, for example: Capture (Cypermethrin) Registration Number:

2927/11-207/T; Indostik (condensate nonil phenol ethylene oxide) Reg. No: RI 986/11-2007/T; Metsulindo (Methyl Metsufuron) Reg.

No. 1484/3-2006/T).


ASSESSMENT REPORT


Costing Book of each division which is compiled and analyzed by the Assistant every month providing the information of active

materials used, the applied areas and the amount of usage is available. For example: At KMU 6 in July 2011, types of circle and path

activities at Block 02 and 03 that were using the Glyphosate and Ally herbicides, total of applied area 75 ha, the materials used were

40 liters of Glyphosate and 75 grams of Ally.

The company has obtained the Work Plan and Realization for each type of activities; among other of Circle and Path spraying

control at KMS4 were planned to be performed every three months, for example at Block BN 01 which was planned to be performed

in October and January. Realized in October and February.

The MSDS (Material Safety Data Sheet) available for pesticides and fertilizers describes the trademark, active materials, hazards

identification, first aid emergency (P3K) actions, fire handling, actions against spills and leaks, storage and handling of materials,

prevention of exposure, precautions against fire and explosion, storages, special conditions of materials storage, exposure control

and personal protective equipments (goggles, respirators, aprons, gloves, boots, long sleeves and long pants), physical and

chemical properties, reactivity and stability, toxicology information (e.g. Capture (Cypermethrin) LD 50 (oral) 200-2000 mg/kg; LD 50

Dermal 400-4000 mg/kg, LC 50 respiratory 0.69 g/L), ecological information and disposal of waste.

Agrochemical waste including pesticide packaging waste is managed in accordance with the existing regulation which is stored in

the licensed Hazardous waste temporary warehouse (permit no. 67/KPTS/2011 on 17 January, 2012). The collected Hazardous

waste is submitted to PT. Horas Miduk in accordance with (Decree of Environmental Ministry No. 474 year 2007 and Minister Permit

No. 563 year 2009) who has obtained the permit of storing, as collector and transporter of Hazardous waste (used oil, dirty oil, used

solvent, used batteries, sludges and contaminated used packaging waste, and other hazardous waste). The licensed plate number

of PT. Horas Miduk’s vehicle used as the transportation of Hazardous waste is B9947Q. Recent submission to PT. Horas Miduk was

on 28 February 2012. Letter from Ministry of Environment No. B1769/Dep.IV/LH/03/2010 regarding the recommendations of

Hazardous waste transportation. The licensed plate number of vehicle used for the transportation of Hazardous waste has been in

accordance with what was stated in the that recommendation letter.

The company has made plans to reduce the paraquat usage which are listed on the Monitoring Document. The usage of dichloride

paraquat for 5 years has been legalized by the General Manager. It is described that in year 2011 the use of paraquat was as much

as 14,400 liters; the targeted paraquat usage in 2012 is 12,960 liters; the targeted paraquat usage in 2013 is 11,520 liters; the

targeted paraquat usage in 2014 is 10,080 litters; the targeted paraquat usage in 2015 is 8,640 liters; and the targeted paraquat

usage in year 2016 is 7,200 liters. The company has not performed the evaluation of paraquat usage since its data in year 2012 has

not been fulfilled (Stage 2 April 2012) so, the evaluation will be performed in January 2013. The use of Brodifacum has been disused

since 2012 and replaced with pesticides that contain active material of Flokumafen 0.005% (Stom).

The company has shown a letter from the Department of Plantation and Forestry, No. 525/Disbunhut-PP/IX/2012/0409 date on 15

September 2012 about Recommendations usage Paraquat Herbicide by the operators have not license valid until 31 December

2012 and operator training plan on 15 October and 29 November 2012.

Records of annual medical check-up available for workers who deal with chemicals include:

Checklist of Medical Check-up Report dated on 14/09/2011 on 63 workers of spray, fertilizer divisions and Hazardous

warehouse keeper. For example the medical check-up for warehouse keeper named Josmin S, which included the physical,

blood chemistry, ECG and Urine check-ups on 16 September 2011 by Medical Clinic Indah which was equipped by the

report of medical check-up resulted in normal health condition.)

Records of Medical Clinic Indah (Report of Medical Check-up Result) Reg. No. 14.959/DH/-XIII/05, for example on behalf of

Icha, spray worker of KMS 1, Medical Record no. 060, stated as fit to do the job. Check-ups which include the

measurement of Height, Weight, blood pressure, right-eye visual acuity, left-eye visual acuity, physical check-up, blood

check-up, blood chemistry check-up and ECG which resulted in normal health condition.


ASSESSMENT REPORT


The company has a policy in SOP 21 RSPO which states that:

Having a pregnancy test is an obligation for the chemical materials spray workers after informing their pregnancy to the

company. After the pregnancy test conducted by the company’s doctor resulted in positive pregnancy, then the company

will transfer those concerned workers into lighter works which are not in contact with chemicals.

Breastfeeding women are prohibited from doing work using chemicals.

Women workers should be given the opportunity to breastfeed their babies.

Based on the result of test held by the plantation midwives, the age of the workers’ pregnancy can be obtained, for example the test

on Mrs. Fifi Rahmayuna; the fertilizer worker on 18 October 2011 resulted in positive pregnancy. Based on her visits to KMS 4’s

office, it was acknowledged that on 18 October 2011, she was no longer working in fertilizer section but was transferred into Tunera

subulata handling.


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

The Occupational Health and Safety (OHS) policy has been established by the Group Plantation Director on 10 January 2005,

among others define:

- To comply with all laws and regulations that related to the workers’ occupational health and safety.

- To ensure that the stages of Occupational Health and Safety procedure are implemented and updated.

- To provide comprehensive trainings, information and guidance of Occupational Health and Safety (OHS) aspects.

- To ensure that all workers acknowledged their responsibilities to work safely in order to avoid accidents against themselves and

other workers.

The Health and Safety Procedure was approved by the Senior General Manager on 1 November 2011. Among others are the safety

SOP for Oil Palm Harvesters, The carriers of Oil Palm to the Palm Oil Mill, the controllers of chemicals, chemical storage, chemicals

transporters, toxins sprayers, paraquat toxins sprayers, Tamaron injectors, solar charging, fertilizer workers, warehouse workers, tire

filling workers, electricians, becho and grader operators, tractor operators, excavator operators, nursery workers, water tank

maintenance workers, and outside contractors.

The Occupational Health Committee is available, among others:

The Guiding Committee of Occupational health and safety of KMS has been in accordance with the decree of the Head of

Labour and Transmigration Agency of Bengkalis District No. Kep.77/DTKT/PK/P2K3/2011 with Hermando as the Chairman

and Adria as the Secretary.

The Guiding Committee of Occupational health and safety of KMU has ben in accordance with the decree of the Head of

Labour and Transmigration Agency of Bengkalis District No. Kep.075/DTKT/PK/P2K3/2011 with Ir. Sanusi as the Chairman

and Adria as the Secretary.

The company has owned the expert of general Occupational Health and Safety in the scope of the company which is Mr.

Adria; based on the Decree of the Minister of Labour and Transmigration No. KEP.1011/M/DJPPK/V/2011 who was

appointed as the Secretary of Guiding Committee of Occupational Health and Safety (GCOHS) in compliance with the

GCOHS personnel replacement notification letter on 12 April 2011.

Based on the letter of delivery No. AD-KMS/31/03/12, the GCOHS’s Minutes of meeting at KMS 1 and 2, KMS 3 and KMS 4.

Meeting is performed every 3 months. At KMS 1 and KMS 2 on 20 February 2011 which was attended by 21 participants, and the

GCOHC’s Minutes of KMS 1 and KMS 2 meetings on 17 November 2011. The minutes of KMS 3 meeting on 28 January 2012 which

was attended by 11 participants and on 29 October 2011.

Insurance of work accidents is covered by the Labour Social Assurance (JAMSOSTEK). Samples of Labour Social Assurance’s

claims for accident cases:


ASSESSMENT REPORT


1. Dedi Gunawan (February 2011) – Establishment of Accidents Assurance No. D051108TKK000017 – Total of Assurance

paid IDR. 18,817,250.00 (dated on 19/8/2011).

2. Isfan (July 2011) – Establishment of Occupational Accidents Assurance No. D051203TKK000001 – Total of Assurance paid

IDR. 9,859,813.31 (dated on 19/3/2012).

The evidence of Labour Social Assurance payment receipt on 13 February 2012 of PT. Adei Plantation KMS (Labour Social

Assurance reg. No DD050058 (PBT/KT/KHL) and DD050132 for 1,348 workers. 771 of KMU (DD0500059) workers, 109 of Palm Oil

Mill (DD050131) workers and 104 of KCP (DD050291) workers is available. There is an availability of Periodic Medical check-Up

Report for operators who work on high-risk activities:

1. Mandau Palm Oil Mill, Period of September 2011 which covered 8 personnel of Laboratory (Romadianto), Water Treatment

Operator (Irwanto, Suherman), Boiler Operators (Martua Sagala, Hendra Syaputra), Welder (Hartono, Ngasino), and Store

Attendant (Syaharuddin) divisions in accordance with Statue no 1 year 1970 – Occupational Safety.

2. Audiometric check-up for generator operators was performed on 29 March 2012 by Thamrin Klinik Laboratory, Pekanbaru

for 26 workers.

3. Records of annual medical check-up for workers who deal with chemicals is available, among others:

Checklist of Medical Check-up Report dated on 14/09/2011 on 63 workers of spray, fertilizer and Hazardous warehouse

keeper divisions. For example the medical check-up for warehouse keeper named Josmin S, which included the physical,

blood chemistry, ECG and Urine check-ups on 16 September 2011 by Medical Clinic Indah with report of medical check-up

resulted in normal health condition.

Records of Medical Clinic Indah (Report of Medical Check-up Result) Reg. No. 14.959/DH/-XIII/05, for example on behalf of

Icha, spray worker of KMS 1, Medical Records no. 060, stated as fit to do the job. Check-up which included Height, Weight,

blood pressure, right-eye visual acuity, left-eye visual acuity, physical check-up, blood check-up, blood chemistry check-up

and ECG check-up which resulted in normal health condition.

Document of OHS Hazard source identification and risk assessment associated with activities in fields is available among others:

Process/workplace, Nursery, replanting, mature/immature plants care, Harvest of Fresh Fruit Bunch, Fresh Fruit Bunch

transportation, workshop, chemicals mixing locations, generators warehouse, Staff and Worker housing which informs the activities,

sources of hazard, risks, level of risk, and actions to reduce risks. Identification of Hazardous waste sources and Assessment of

risks related to activities in the mill detailing the main activity stations, source of hazards, risks, level of risk, actions and the person

in charge. For example:

1. Loading Ramp – disassembling – dropped Fresh Fruit Bunch – injured people – low – use of Personal Protective

Equipment (PPE) (helmet, gloves, shoes) – Manager/Assistant.

2. Sterilizer (boiling) – open and close of sterilizer door – steam – blister – medium – Occupational Health and Safety

Technical Training – Manager/Assistant.

3. Pulverizing (digester) – loose palm fruit pulverizing – steam – blister – medium – check and repair the pipeline digester prior

to operation – Manager/assistant.

Records of Occupational Health and Safety program is available in PT. Adei Plantation & Industry training attendance list document,

for example:

Safety Spraying Training by Hemanto on 09 January 2012 at Division 6 KMS 2 field, which was attended by 9 workers and

1 Supervisor.

Fire handling training for firefighters by the Head of Fire and Disaster Management of Labour Agency on 22/09/2011 at

KMS which was attended by 16 participants (Firefighter teams)


ASSESSMENT REPORT


Records of Occupational Health and Safety program training detailing the name of workers, position, activities, date of

training, topic of training and assessment is available. For example:

1. Subroto – Permanent employee – FFB Process (Sterilizing) – 28/11/2011 – Occupational Health and Safety

technical training – good.

2. Walim Sufrandama –– Permanent employee- FFB process (sterilizing) – 07/11/2011 – Occupational Health and

Safety technical training – good.

3. Sutrisno – Permanent employee - FFB process (sterilizing) – 07/11/2011 – Occupational Health and Safety

technical training – good.

Emergency response procedures are available for cases of fire, wildlife attacks, chemicals/solar/waste spills and leaks, and water

pollution. Samples of implementation: There is a mapping of flammable area in the mill (MPOM) and it has been simulated on

22/09/2011 at Mandau Selatan Estate. This simulation was attended by 11 personnel of factory workers. The training regarding the

laboratory Safety on 21/10/2011 was attended by 26 of the related workers. The company should complete the evacuation routes at

estate’s office, housing and factories.

The company has provided the Personal Protective Equipment (PPE) for workers, such as for harvester: helmet, goggles, gloves,

shoes and sickle gloves.

Evidence of Personal Protective Equipments and First Aid Emergency Boxes submission:

The records of PPE violations document based on PPE inspection is available, for example the inspection on 03/03/2012 at

division 3 KMU 5, it was known that Manis Adi S did not wear sickle gloves.

Records of PPE expenditure to workers is available, for example records of PPE submission to Mrs. Marjinten in the form of

goggles, masks, gloves, aprons, shoes/boots.

List of First aid emergency boxes is available, for example at KMU 5 there are 18 First aid emergency boxes (14 are held by

the Supervisor, 1 in division 1’s office, 1 in division’s 2 office, 1 in division 3’s office and 1 at TPA).

Records of PPE expenditure detailing the name, position, activities, types of the PPE given and date of submission is

available. For example:

1. Sutrisman – Permanent employee – General worker – boots – 12/2/2012.

2. Budianto – permanent employee – general worker – mask – 18/10/2011; boots – 13/2/2012; helmet – 23/2/2012.

3. Erwadi – permanent employee – FFB selection – helmet (21/2/2012); boots (11/02/2012)

4. Dedi Sugianto – permanent employee –FFB process – helmet (21/2/2012); gloves (11/02/2012); ear plugs (09/01/2012)

The company has conducted First aid emergency trainings to workers, for example:

1. First aid emergency Training on 17 March 2012 by dr. Feby Fahmi AT KMS which was attended by 40 participants

(Production clerks, Maintenance Supervisor, Maintenance workers, early childhood teachers and baby sitter).

2. First aid emergency Training by dr. Budianto Tjandra on 25 June 2011 at KMU which was attended by 28 participants.

Equipped with training materials.

3. First aid emergency Training by dr. Febry Fahmi on 16 March 2012 at KMU which was attended by 20 participants.

Equipped with training materials.

4. First aid emergency Training by dr. Budianto Tjandra on 25 June 2011 at Palm Oil Mill (PKS) which was attended by 7

participants that consists of supervisors, foremans, office staffs, security guards, and laboratory personnel. Equipped with

training materials.

Records of workplace accidents is available and has been discussed at the Guiding Committee of Occupational Health and Safety

meeting, detailing the date of report, name of worker, type of accident and description. For example:


ASSESSMENT REPORT


- On February 2011, an accident was occurred to POM Workshop’s worker named Dedy Gunawan, the cause of the accident: the

cut-off of left index finger which was pinched by the lory’s wheel while repairing the lory, the action taken is sending him to

Budiono Chandra’s clinic, Pinggir Sub-district; given him a break of 18 days.

- On 30 March 2011, the worker named Mr. Billy Azhariat Division 3, the cause of the accident: exposed of oil palm midrib at his

waist, the actions taken: being sent to the estate’s clinic.

The company has conducted the evaluation of occupational accidents and recommendation of Occupational Health and Safety

improvement activities, for example in the period of October-January there was an evaluation of occupational accidents which

dominantly occurred in the harvest area, the Guiding Committee of Occupational Health and Safety has suggested the provision of

technical training for harvesting and other things that are related to harvesting but have not been recommended. The Harvesting ISO

training on 17 January 2012 was attended by 48 participants.


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

Training program for 2011/2012 is available in the form of a matrix which gives the details of the Month, topic of training, trained

personnel, trainers, target completion and status. Types of the planned training such as:

1. 28 June 2011 – Socialization of RSPO – Staff/Workers– Manager/Assistant.

2. 22 September 2011 – Fire Fighting, Emergency Procedures – Executive/Staff/Worker – Fire Fighting Department.

3. 31 January 2012 – Technical Training, Occupational Health and Safety and RSPO – WTP/ETP/Compound/office

/Scales.

4. March 2012 – Technical Training, Occupational Health and Safety and RSPO.

5. Records of Training Assessment for each employee is available, for example the records of training assessment on a

spray worker named Sarmi by the manager and assistant, has attended 6 types of training (RSPO socialization, 3-

times rinse way, safety spraying, water management, fire fighting technique) is recommended as passed.

Records of workers training in the form of attendance list of PT. Adei Plantation & Industry’s training, such as:

1. Safety spraying training by Hermanto on 09 January 2012 at Division 6 KMS 2 field, which was attended by 9 workers and

1 Supervisor.

2. RSPO socialization by Swandi Haloho (KMS2 Harvesting staff) on 28 October 2011 which was attended by 16 workers.

3. List of attendance and Assessment of PHT Assessment and RSPO socialization training on 18 April 2012 at KMS 4 which

was attended by 8 participants are available.

The attendance list of training at Palm Oil Mill is available, among others:

1. 25 June 2011 – First aid emergency – attended by 7 personnel consisting of supervisors, foremans, office staff, security

guards, and laboratory workers.

2. 28/6/2011 – RSPO socialization – attended by 1001 employees.

3. 22 September 2011 – Fire Fighting – attended by 11 personnel from KHT, PBT, and KT.

4. 21 October 2011 – Laboratory Safety – attended by 26 workers of laboratory, engine room, boiler, applications, grader, etc.

The selection of contractors is conducted through open tender by considering the company profile and work experience e.g. tender

files of CV Sejahtera Jaya: work experience 10 years and certificate of Construction Implementation Services Enterprises No.

00629/GAPEKNAS/1400/4/2010 is available.



ASSESSMENT REPORT


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

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

The company has compiled the Environmental Impact Assessment (EIA) document approved by the General Director of Nature

Protection and Conservation/The Head of EIA Central Commission of Forestry and Plantations Department No.

86/DJ.VI/AMDAL/1999 on 6 July 1999 with an area of study 14,900 Ha consisting 8,900 Ha of Oil Palm Estate and 6,000 Ha of

rubber estate. The Palm Oil Mill’s capacity was 80 Ton of FFB/Hour. The current state is at the average of mill’s production capacity

which is 50 Ton of FFB/Hour. The EIA document consists of:

1. Main Document

2. Environmental Management Plan (RKL)

3. Environmental Monitoring Plan (RPL)

4. Attachment

The company already has obtained the document of Environmental Management and Monitoring Efforts No. 660/Bapedalda –

AM/1246/2007 which was approved on 29 November 2007 that includes the study of KCP Mill’s development impacts.

The company has compiled the Environmental Management and Monitoring Report in each semester, for example in the period of

January – June 2011 which was reported to the Environment Bodies of Bengkalis District on 2/8/2011 and period of July – December

2011 which was reported to the Environment Bodies of Bengkalis District in accordance with the Letter of Delivery No. 13/1/2012 on

25 January 2011. There was no changes in the operational area or activities of the company therefore there is no revision of EIA

document since 1999.


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

The company has compiled the HCV Identification Document on August 2011 which is based on the Identification Toolkit of HCV

areas in Indonesia, June 2008 performed by Aksenta with Sujadnika (approved RSPO), Pupung F. Nurwantha (Approved RSPO),

Robert H. Sinaga, Gena Lysistrata and Yunus Bahar as assessors.

There are types of wild animals which are protected by statue, List of IUCN Redlist and CITES;

a. There are 15 types of mammal including the Sumatran Elephant (Elephas maximus spp. sumatranus) CR status Ver.

2011.2 on 12 March 2012, Pangolin (Manis javanica) status EN.

b. 11 types of Reptiles.

c. 12 types of Aves

The company has filled the request to perform a review of HCV Identification Document to Aksenta and has been addressed through

Letter No. 04020/CLI-Q/PR/ADEI/12/OS_maa on 12 April 2012 and during the implementation of ST 2, the review of the mentioned

HCV Identification is being conducted.

The company has made improvements to the grouping of species protected by Statue, IUCN and CITES which are identified

according to their rarity status.

The company has held the Mapping of HCV Identification Result in accordance to the sufficient scale (1: 55,000), A3 print format.

HCV Identified area 112.41 Ha.


ASSESSMENT REPORT


Steps to protect the rare/threatened species;

1. Compiling the Elephants Handling SOP (SOP 15) Revision 1 regarding the Identification and Management of HCV on 16

April 2012

2. Performing the HCV Identification which was performed by Aksenta in year 2011.

3. Marking the HCV area boundaries by painting the oil palm main stem or wooden boundary poles painted in red with height

of 1.5 m.

4. Prohibiting the application of chemical fertilizer, chemicals spraying, and fish poisoning/electro-shocking activities.

5. Compiling the HCV Management Plan – Mandau Complex on 13 March 2012 which inside includes the Coordination with

the relevant authorities such as Natural Resources and Conservation Body (BKSDA) however has not received approval

from the management.

6. The company has conducted the monitoring of protected/critical species performed by the appointed officer (Mr. Aprizal,

STP and Mr. Kristian Jose Tarigan, STP). For example the Report of Critical species checklist on April 2012 at KMS3 &

KMS 2.

7. Socialization in the form of posters which are located on the notification board as shown in KMS 3, KMS 2, and KMS 4

offices.

8. Based on the results of field visits, the company has installed the prohibition boards of burning activities, hunting, fish

poisoning and electro-shocking as shown in Block PE 05 (KMS 3), 90 R, (KMS 2), P 20 (KMS 4) and BN 21 (KMS 4).

9. Posters of protected species are available as in KMS 2, KMS 3 and KMS 4 offices and in areas that are accessible to the

public.

10. The company has conducted socialization to the village’s leaders which is done through meetings as conducted in Muara

Basung and Tengganau villages on 17 April 2012 and Beringin village on 21 April 2012.

The company has appointed some officials as the HCV Manager through the letter from the Sr. General Manager on 16 April 2012

which includes ;

1. Coordinator: Mr. Aprizal, STP

2. Deputy Coordinator: Mr. Kristian Jose Tarigan, ST.


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

Adei has identified the sources of waste at the site (Mandau mill and estate) and plans to reduce pollutions, for example: Some

sources of waste which are identified at Mandau Mill, among others:

1. Methane Gas – the source of waste: waste ponds – action: biogas catching/capturing – target: sustainable – person in

charge: Manager – status: air pollution.

2. Black smoke – the source of waste: boiler – Monitoring of black smoke emission and solid particles with the requirements

from the Ministry of Environment – every 6 months – Manager/Assistant – Report of static emission source monitoring,

ambient air and noise.

3. Dust – The source of waste: boiler chimney, kernel plant and fibre cyclone – chimney inspection – every 6 months –

Manager/Assistant/ Laboratory Staff – Report of static emission source monitoring, ambient air and noise.

4. Liquid waste – the source of waste is the process of production – Effluent which was generated from production process is

transformed into application land. Previously, this effluent waste will be managed through the waste pond system before it is

transformed into application land. The Company has obtained the permit of waste water utilization on land in accordance

with the regulations. The Regent of Bengkalis has given the 70/KPTS/I/2012 permit for land application at block PE 04 and

08 on area of 100 ha KMS 3.

5. Empty bunch - the source of waste is the process of production – implemented as organic fertilizer to improve soil fertility.


ASSESSMENT REPORT


6. Domestic waste – the source of waste: offices and housing – managed by performing separation according to their

characteristics and collected at the final disposal location.

Some of identified waste sources in the estate and plans to reduce pollutions, among others:

1. Used pesticide packaging – the source of waste: Hazardous materials warehouse and maintenance process –

Agrochemical waste including the used pesticide packaging is managed by performing 3-time-washing system based on

the instructions written on the label and managed in accordance with the existing regulations which is being stored in a

licensed Hazardous waste temporary warehouse (permit no. 67/KPTS/2011 on 17 January 2012). The collected Hazardous

waste is submitted to PT. Horas Miduk in accordance with (Decree of Environmental Ministry No. 474 year 2007 and

Minister Permit No. 563 of 2009) who has obtained the permit of storing, as collector and transporter of Hazardous waste

(used oil, dirty oil, solvent used, used batteries, sludge and contaminated used packaging waste, hazardous and other

hazardous materials). The licensed plate number of PT. Horas Miduk’s vehicle used for the Hazardous waste

Transportation is B9947Q. Recent submission to PT. Horas Miduk was on 28 February 2012. Letter from the Ministry of

Environment No. B1769/Dep.IV/LH/03/2010 regarding the recommendations of Hazardous waste transportation. The

vehicle’s licensed plate no. used for the transportation of Hazardous waste has been in accordance with what was stated at

that recommendation letter.

2. Domestic waste – the source of waste: offices and housing –managed by performing separation of waste according to their

characteristics and collected at the final disposal location.

3. Used Oil – the source of waste is workshop – the used oil waste is managed in accordance with the existing regulations

which is being stored in a licensed Hazardous waste temporary warehouse (permit no. 67/KPTS/2011 on 17 January 2012).

The collected Hazardous waste is submitted to PT. Horas Miduk in accordance with (Decree of Environmental Ministry No.

474 year 2007 and Minister Permit No. 563 year 2009) who has obtained the permit of storing, and as collector and

transporter of Hazardous waste (used oil, dirty oil, solvent used, used batteries, sludge and contaminated used packaging

waste, and other hazardous waste).

4. Medical waste – the souce of waste: clinic – is submitted to Laboratory of Health and Environment of Riau Province.

Sample of the clinical waste delivery letter on 24 February 2012 No. AD-KM/EXT/12/II/2012 for the delivery of clinical waste

at KMS 0.3 kg and KMU 3 kg is available. It is equipped with the payment receipt dated on 24 February 2012.

The SOP of Hazardous waste management has been revised and approved by Chong Kong Fat as Mill Controller and has inserted

the description of the reuse of used oil at Mills such as for conveyor chain lubricants. The excessive used oil from reuse will be

removed or sold in compliance with the regulation of the Environment Bodies.

Based on the results of field visits to Hazardous waste warehouse, the packaging of pesticides were found clean (3-time-rinsed) and

neatly arranged. Adei has performed the monitoring of the amount of used pesticide packaging. The letter of pesticide packaging’s

delivery to Hazardous storage location is available, including:

1. Letter of Delivery on 17 April 2012 to deliver 9 pieces of trendy packaging from KMU7.

2. Letter of Delivery on 12 April 2012 to deliver 12 pieces of trendy packaging from KMU 7.

The records of Hazardous waste monitoring/analysis (Hazardous waste Balance Sheet) is available, the format of the monitoring

sheet is in compliance with Environment Bodies’ format. Recording is performed on each type of incoming and outcoming waste.

Result of Monitoring in March 2012:

Used oil: incoming (343 liters), Outcoming (0).

Used filter: incoming 13.5 kg; Outcoming 0

Used Lamp: incoming 2.5 kg; Outcoming 0

Dust-cloth: incoming 1.5 kg; Outcoming 0

Used Batteries: incoming 0; Outcoming 0


ASSESSMENT REPORT


The company has made the policy of household waste separation based on its type (Organic, plastic and glass waste), location of

household waste separation based on its type at housing and final disposal location.

Based on the results of field visits at the final disposal location, even though the separated trash bins are provided, there are findings

of mixed household waste due to the residents’ lack of awareness in separating the household waste so the company should

provide socialization and understanding to workers through the Guiding Committe of Occupational Health and Safety. There is not

enough evidence that Company has performed domestic waste monitoring to determine the efforts of minimizing domestic waste.

(The Non-Conformance CAR No. 2012.11)

Result of noise monitoring shows a result above the required ambient air quality standard No. 41 year 1999.

The result of noise measurement on 18 November 2011 also remained above the required air quality standard. Efforts made by the

company to reduce noise are:

1. The provision of ear plugs to mill workers, for example based on the submission document dated on 09/01/2012 to Dedi

Sugianto (Worker of Process Division) and based on the results of field visits to boiler station, it was acknowledged that

operators have worn the ear plugs.

2. The installation of Blowdown Silentser to reduce the level of noise at mill.

3. The Book of mill’s inspection report is available at workshop informing the inspection at mill which includes the examination

of Blowdown silentser every week, for example the inspection on 22 April 2012.

4. Evidence of payment for noise level examination activities carried out by the Center of Industrial Research and

Standardization, Padang (No. 04/K/V/2012) on 08 May 2012 is available.

Result of water measurement on 19 January 2012 carried out by Technical Executive Unit of Testing, Public Work Agency of

Bengkalis is available, the result of measurement shows that the content of Lead (Pb) <0.015 Mg/L is below the required quality

standard (PB = 0.5 Mg/L), other parameters are still below the required quality standard in accordance with the Regulation of Health

Ministry No. 416/menkes/per/IX/1990.

Minor 5.3.2 Status: The Non-Conformance CAR No. 2012.11 with Minor category.

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

The monitoring of the use of renewable energy along with its efficiency analysis (energy/ton of CPO, or energy/ton of Oil Palm

product) is available and is implemented every month. The available latest data (Result of monitoring) is until March 2012.

January 2012 (TURBINE) KWH 291,240; 19.92 Kwh/mt of FFB and F + C/mt CPO 0.78

February 2012 (TURBINE KWH) 237,420; 19.99 Kwh/mt of FFB and F + C/mt CPO 0.78

March (TURBINE) KWH 234,600; 20.36 Kwh/mt of FFB and F + C/mt CPO 0.78

There was an improvement of generated energy per mt of FFB (January – March 2012).

The monitoring of the use of fossil fuels for the interest of operational efficiency and its analysis are implemented every month. The

available latest data (Result of monitoring) is until March 2012.

January 2012: Generator Kwh (37,212), Diesel fuel consumption (11,257.65 liters) and Kwh 3.30/liter

February 2012:Generator Kwh (39,768), Diesel fuel consumption (11,609.89 liter) and Kwh 3.42/liters.

March 2012: Generator Kwh (41,046), Diesel fuel consumption (10,217.66 liter) and Kwh 3.36/liters.

Based on the above data, there was an improvement of energy produced per liter of diesel fuel (January – March 2012). To maintain

the good performance of the generator, the company performs examinations and maintenance of generator every week performed

by the workshop workers.



ASSESSMENT REPORT


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.

PT. ADEI has obtained the SOP of land clearing implementation to convert rubber plantation into oil palm plantation (SOP No.29).

Land clearing is implemented through rubber tree stacking, uprooting rubber’s stake, tree trunks piling (perumpukan), the making of

boundaries pole, terracing, the making of individual terrace, ditches and roads. There is an availability of contract agreement letter

(SPB) No.: 56/ADEI-SPB II/2012 between PT. ADEI PLANTATION & INDUSTRY with CV. Sejahtera Jaya regarding the work

contract agreement of the land clearing implementation to convert of rubber into oil palm plantation. In process of land preparation at

Block PN 12 A on the area of 474 ha (the continuation of year 2011’s plan) showed no activity of burning in land clearing activities.

Land Fire handling procedure which includes preventive activities (prevention), curative (action) and administration is available. The

content of the procedure has described the adequate stages of preventive and sufficient fire handling activities. Sample of preventive

activities: the mapping of fire-prone areas, carry out patrols in accordance with the frequency level of vulnerability, installation of sign

boards on the fire-prone areas, etc.

The company has obtained the records of fire fighting training implementation, among others:

Fire handling training for firefighters by the Head of Fire and Disaster Management of Labour Agency on 22/09/2011 at

KMS attended by 16 participants (Firefighter teams)

Training of Firefighting techniques on 04/02/2012 performed by Mr. Kristian Jose Tarigan at the office of KMS 2 division 5

which was attended by 6 participants.

Fire fighting facilities and infrastructure, as in MPOM, such as:

1. 4 units of Hydrant – located in the kernel hopper area (1 unit), empty fruit bunch shreeding (2 units), and oil dispatch shed

(1 unit).

2. Hydrant hose 2.5” – 4 x 20 meter

3. Nozzle – 2 units

4. Fire Toxic (dry power) – 29 units.

5. Fire Toxic (CO2) – 3 units

During the visit at the field of KMS 1 workshop, there were findings of fire fighting equipments such as: water pumps, hoses,

buckets, helmets and firefighting uniforms. Evidence of firefighting equipments inventory result and the inspection result of fire

fighting equipments condition are available. The current data shows that the latest equipments examination was implemented on

April 2012, equipments were in good condition and could functioned well.

There were maps identifying the fire-prone areas, covering an area of 525 ha (total area is a peat) and a buffer zone between the

residents estate with PT. ADEI, but there was no sufficient evidence that the company has performed the evaluation of fire fighting

equipments adequacy either in type or amount in accordance with the level of vulnerability. (The Non-conformance CAR No.

2012.12)

Minor 5.5.1 The Non-Conformance CAR No. 2012.12 With Minor category.

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

The document of identification to sources of waste and pollutions results and plans to reduce the pollution which describes the types

of waste (including emission and pollution), sources of waste, action plan to reduce pollution, target of activity, person in charge and

status/reference of waste is available, For example:


ASSESSMENT REPORT


1. Methane Gas – the source of waste: waste ponds – action: biogas capturing – target: sustainable – person in charge:

Manager – status: air pollution.

2. Black smoke – boiler – Monitoring of black smoke emission and solid particles with requirements from the Ministry of

Environment – every 6 months – Manager/Assistant – Report of monitoring to static emission source, ambient air and

noise.

3. Dust – boiler chimney, kernel plant and fibre cyclone – chimney inspection – every 6 months –

Manager/Assistant/Laboratory Staff – Report of monitoring to static emission source, ambient air and noise. Some of waste

sources identified at Mandau Mill, such as: a) Vehicles and machines b) Generators, c) Laboratory, d) building lights, e)

waste pond, f) Mill production process (empty fruit bunch and effluent waste), g) Boiler, h) Boiler chimney, kernel plant and

fibre cyclone i) Pressing station and kernel plant, j) housing, and k) warehouse.

4. Effluent generated from production process is transformed into application land. Previously, this effluent will be managed

through the waste pond system before it is transformed into application land. The Company has obtained the permit of

waste water utilization on land in accordance with the regulations. Records of effluent disposal is available.

The Report Document of the monitoring to static emission sources, ambient air and Noise at Semester I and Semester II year 2011

which presents the periodic monitoring of emission and ambient air is available. Periodic monitoring is conducted by the Center of

Industrial Research and Standardization, Padang, Ministry of Industry, the Republic of Indonesia.

The results of measurement at semester I which was held on 9 February 2011 and on 3 November 2011 at semester II, are as

follow:

1. Boiler emission air – results of analysis to all test parameters (particles, SO2, NO2, HF, and Opacity were below the required

quality standard Regulation of the Environment Ministry No. 07 year 2007 Attachment I; except HCl, Cl2, and NH3 were

stated as undetected.

2. Generator 1 & 2 emission air – results of analysis to all test parameters (particles, SO2, NO2 and opacity) were below the

required quality standard PM LH No. 07 year 2007 Appendix V.

3. Ambient air - results of analysis to all test parameters (NO2, CH4, dust and Noise were stated below the required air

ambient quality standard (Government Regulation No. 41 year 1999), except for SO2 and CO which were stated as

undetected.

Adei operates 7 waste ponds for the management of POME (cooling pond, dumping pond, anaerobic, aerobic pond). Pond 1

(cooling pond), Pond 2, 3, 4,5, 6 (anaerobic pond) and pond 7 (aerobic pond). Monitoring is implemented every week to ensure the

amount of generated effluent. Routine BOD measurement is implemented every month at Pond 1 and 7. And also there are 3

monitoring wells around the application land to check the surface water quality. Every 6 months Adei sends sample of water to be

analyzed by the General Affair Agency. The documentation of water quality measurement results is complete.

Report of the monitoring results of amount of waste water generated from mill: March 2012: FFB (11,581960 MT), effluent waste

volume (11,844 M3) with ratio of 0.98, is available. Volume of effluent used in Land Application is the whole effluent generated from

mills and have been through the process of WWTP. Total area: Land Application realization of 41.5 ha.


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

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


ASSESSMENT REPORT


Inside of the document of Environmental Impact Assessment analysis which was approved by the General Director of Nature

Protection and Conservation/The Head of EIA Central Commission of Ministry of Forestry and Plantations No.

86/DJ.VI/AMDAL/1999 on 6 July 1999 with an area of study 14,900 ha consisting 8,900 ha of Oil Palm Estates and 6,000 ha of

rubber estates. The capacity of POM is 80 Ton of FFB/Hour. Social parameters that were monitored, namely:

1. Employment Opportunities

2. Public perception

3. Health.

The company has compiled the document of Social Impact Assessment performed by Aksenta in January 2011, which covers:

1. Susceptible local community groups.

2. Social interaction

3. Social problems

4. Environment

5. Labour

6. Social relations with employees

7. Work environment

8. Main facilities,

9. Supporting facilities

The Environmental Management Plan/Environmental Monitoring Plan report has been prepared on a periodic basis per semester

and reported to the Environment Bodies (BLH) of Bengkalis District and it has been adapted to the social parameters listed on

Environmental Management Plan/Environmental Monitoring plan document.

There was no sufficient evidence that the parameters of Social Impact Assessment result have been listed on this document since

the SIA document has been completed recently on January 2012. The company has compiled the Social management plan-

Complex Mandau on 15 February 2012 but has not yet adjusted the parameters of SIA study result. There was no revision to

management document due changes of operation scope or other applicable regulations.

The company has compiled the Report of Environmental Management and Monitoring in each semester, for example in the period of

January – June 2011 which was reported to the Environment Bodies of Bengkalis District on 24/8/2011 and period of July –

December 2011 which was reported to the Environment Bodies of Bengkalis District in accordance with the Letter of Delivery No.

13/1/2012 on 25 January 2011.


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.

SOP No. 19 (Communication, Socialization and Consultation with stakeholders) dated 1 October 2011 is available. Records of

communication and consultation with community is documented in the Book of information/socialization, consultation and

communication request, for example: records of community’s aspiration is documented in the document of information, socialization,

consultation and communication request logbook, as in KMU office ; the request of information from the Committee of Indonesian

Workers Union on 17 December 2011 to Management regarding:

1. Medical expenses due to occupational accidents in the work area and outside the work area;

2. The development process of Collective Labour Agreement (CLA).

This information request was conveyed orally and the company responded it with verbal explanations, but that meeting was

documented in the logbook and signed by both parties.


ASSESSMENT REPORT


The company has provided the list of stakeholders, which includes:

1. Statutory Body (6 pieces); Labour Social Assurance, Tax Office, National Land Agency (BPN), Center of Natural Resources

conservation, Labour Agency;

2. Workers Organizations (2 pieces); Indonesian Labour Union/SBSI and Indonesia Workers Union (SPSI);

3. Independent Suppliers of Services (29 pieces); Permata Hati hospital, Santa Maria hospital, CV Lumbung Mas Tehknik, etc.

4. Small holders/village/Local Community (8 pieces); Penaso Village, Jiat Hamlet, Pinggir Head of Sub-district, and Muara

Basung village;

5. Non-Governmental Organization (NGOs); Sawit Watch, WWF, Walhi, Jikalahari, Scale up, and Yayasan Elang.

6. Others; Police chief and Local Army Office of Pinggir Sub-district.

Records of the community’s aspirations is documented in the document of information/socialization, consultation and communication

request logbook (RSPO 11) for example: Request from Mr. Sudirman (Balai Pungut Village) regarding the elephant expulsion

coordination between the community and the company and request of vehicle’s provision for transporting their household stuffs from

Division 7 KMS 2 to Division 6. Inside of the person-in-charge list document on 1 November 2011, it was listed that the special

officers appointed to conduct consultation and communication with community were Manager and Public Relations.

Status Full Compliance

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

SOP (20) regarding the Handling of Complaints and Objections dated 1 October 2011 is available. The completion/settlement of

complaints/disputes is justly and wisely implemented through open negotiations with the involved parties. The socialization which is

planned to be conducted on April is listed on the Sustainable Improvement Plan document.

Based on the results of field visits at Semunai village, the company has not conducted a broader communication with the people

affected by estate management impacts (Custom leaders, Youth leaders, and community) to overcome illegal activities.

Interview with the Secretary of Semenai village (Baharudin Yusuf) has obtained information that, so far the relationship among PT.

Adei, the community and the government official can be maintained well. However, as local government officials, they are often

being disturbed by the information of illegal harvesting done by groups of community. This condition would be very detrimental to the

reputation of Semenai village since the perpetrators of this illegal harvesting were identified as non-Semenai villagers. Therefore, it

is expected that PT. Adei might conduct communications which involve wider components of Semenai community such as custom

leaders, youth leaders, and other community groups in Semenai village, to accommodate complaints as well as find a way out for

the settlement.

The document records are recorded in the complaints/disputes and assistant request logbook for example; On 7 December 2012,

Mr. Harpin Hair Lubis complaint verbally to Assistant Manager and this case was solved by giving explanation to the person

concerned. Evidence is in the form of Mr. Harpin Hair Lubis’ signature. The company has compiled the SOP 27 Revision 1 (Land

Acquisition and compensation) on 12 April 2012. The calculation of compensation is based on the prevailing market prices at that

time and based on the mutual agreement between the company and related parties by involving the representative of community,

bureaucrats, and community leaders.


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


ASSESSMENT REPORT


SOP 26. Procedure of Dispute Negotiation which involves the third parties such as National Land Agency and Non-Governmental

Organizations (NGOs) is available (See Indicator 2.2.5). Records of identification of parties who receive the compensations are

documented in Land Compensation Completion Document.

1. Document of Land compensation in 1975 – 1989 which consists of Statement Document, Minutes of Land Compensation

Payment, Map of collective measurement results between the company and the person concerned and Payment Receipt

from the company to the concerned person is available at the central office. For example land compensation on 12/10/1989

for 79 residents of Muara Basung village, Mandau Sub-district.

2. The Document of land completion (compensation) of Beringin village on June 2003 is available for T. Hasim’s group with an

area of 237 ha, Abu Bakar’s group with an area of 144 ha, Suandi’s group with an area 378 ha (Total 759 ha) which

consists of Statement documents, Minutes of Land Compensation Payment, Maps of Collective measurement results

between the company and the person concerned and payment receipt from the company to the person concerned.

3. Document of land completion (compensation) is available which consists of Statement documents, Minutes of Land

Compensation Payment, Maps of Collective measurement results between the company and the person concerned and

payment receipt from the company to person concerned. For example the land owned by Mr. B. Nababan (resident of

Tengganu village) with an area of 3.85 ha which was paid on 27 April 2004.

4. Document of land completion (compensation) is available which consists of Statement documents, Minutes of Land

Compensation Payment, Maps of Collective measurement results between the company and the person concerned and

payment receipt from the company to the person concerned. For example the land owned by Mr. B. Mukhtar (resident of

Tengganu village) with an area of 8.96 Ha which was paid on 29 June 2004.

5. The company has compiled the SOP 27 Revision 1 (Land Acquisition and compensation) on 1 October 2011. The

calculation of compensation is based on the prevailing market prices at that time and based on the mutual agreement

between the company and related parties by involving the representative of community, bureaucrats, and community

leaders.


6.5 Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.

The wage is available in a form of checkroll, such as checkroll wage for February 2011. The following list of wage includes: PBTs

Salary Revision, referring to the 2012 Sectoral Minimum Wages of The Province (UMSP – Upah Minimum Sektoral Provinsi)

(Governor’s Regulation No. 11 year 2012) in which it is indicated that the basic salary given to employees will need to put the period

of employment into consideration.

Based on the Decree of Senior General Manager of PT. Adei Plantation Mandau issued on 14 March 2012, the minimum basic wage

for the employees is IDR 1,305,450 with additional benefit of 15 Kg of rice x IDR 5,600 = IDR 84,000, which gives the total amount of

IDR 1,389,450. This amount is in compliance with the 2012 Sectoral Minimum Wages of The Province (Governor Regulation No. 11

year 2012 dated 6 March 2012) stating that the minimum wage is IDR 1,389,450.

The amount of wage for daily workers is IDR 55,578/day with the total amount of monthly salary of IDR 1,389,450. This number is in

compliance with the 2012 Sectoral Minimum Wages of The Province (Governor Regulation No. 11 year 2012 dated 6 March 2012)

stating that the amount of minimum wage is IDR 1,389,450.

Salary adjustment is done in March, resulting in a back payment (rapelan) of IDR 155,450 x 2 = IDR 310,900.

There is a salary payment receipt which corresponds to the one of employee’s payroll check goes by the name of Marjon

Situmorang (harvester), indicating a basic salary of IDR 1,305,450 with 15 Kg rice, back payment premium and other paid premiums

which goes down to a total received amount of IDR 1,016,760.


ASSESSMENT REPORT


There are a number of collective labour agreements reaching their expiry dates (for the period of 2007-2009). However, the CLA

article 38, paragraph 3, specifies that before a new CLA could be settled, at the time of any CLA having expired, it is advised that the

entire conditions included in the indicated document remain applicable until a new CLA is settled, unless the authorities specify

otherwise. The company has submitted the draft of CLA to The Labour Agency on 24 April 2012 along with the cover letter No. AD-

KMS/21/IV/2012.

The following facilities and infrastructure have been made available by the company; 2 church buildings, 8 units of mosques and

mushollas, 7 units of soccer fields, 3 units of badminton courts, 9 units of volleyball courts, 1 unit of elementary school, 2 units of

early childhood learning centers (PAUD), 1 unit of clinic, and also a number of employee housing complex. A decent transportation

facility, however, is not yet accessible, being several open pickup trucks as the only available means of transportation. There are

also a number of inadequate residential houses (for example those in PE 04) and there’s a lack in the number of fire extinguishers

for the housing complex. (Non-conformance CAR No. 2012.13)

Clean water supply is available from an artesian well furnished by the company, for example there are 6 units available in KMS 3.

The well quality inspection was conducted by Mandau Central Laboratory on February 2012, by comparing the findings with the

standard quality for clean water specified in Government Regulation No. 82 year 2001, showing the result as perfectly compliant.

There are also several improvement programs available during 2012 which include the renovation for roofs/ceilings, electrical and

water supply installations. These programs are authorized by the Senior Manager, for example the 2012 home improvement

program in Mandau Utara Estate (KMU) approved on 5 January 2012 consisting the renovation for roofs/ceilings (on March, April,

May, June), floors (July and August), public toilets (September – December), electrical installations (October – December) and water

supply installations (October – December). The cost estimation is included in the 2011/2012 Estimate report, specified in the

Workers Quarters Upkeep point.

The following points are the employment regulations (safety, health, environment and labours) as specified in The Mutual Working

Agreement (SPK) No. 48/ADEI-SPB/II/2012, with which the contractors are expected to comply:

1. All employees are obliged to comply with the rules and regulations of safety and health on the working premises and are

expected to put occupational safety on top priority.

2. All employees must be equipped with the right and proper Personal Protective Equipment (PPE).

3. The safety of all working premises and their surrounding areas must be ensured at all times.

4. All working premises must be in a clean and safe condition at all times.

5. Any hazardous waste must be collected and sent to PT. Adei Plantation.

6. All employees are entitled to the insurance, Sectoral Minimum Wages of The Province compliant minimum wage, and are

required to be experienced and skillful.

The Company has regulated contractor requirements to comply with all applicable regulations listed in the Safety, Health,

Environment and Labour Regulations, which shall be included as addendum in every Working Agreement with contractors. For

example a Service Agreement settled between PT. Adei Plantation & Industry and PT. Agrisarana Jaya Perkasa on 4 November

2011.

Minor 6.5.1 Status: Non-Conformance referred to CAR No. 2012.13 with Minor category.

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.


ASSESSMENT REPORT


The company guarantees the freedom of association as outlined in the Policy on Freedom of Association, authorized by Regional

Director on 1 October 2011.

There is an available record document on the gathering held between the Worker Union and the Company, for example; the

Gathering between the Board Commissioners (PK) of Indonesian Workers Union (SPSI)/Indonesian Labours Union (SBSI) and the

representatives of PT. ADEI Mandau Estate held on 15 – 16 March 2012. There were 9 attendees in the gathering, both from

representatives of Mandau Estate Management and the Board Members of Indonesian Workers Union (SPSI), discussing the draft

of Collective Labour Agreement (PKB).

There is also a record available on the gathering with the president of the union held on 23 April 2012 presenting the draft of

Collective Labour Agreement to the Labour Agency


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

It is indicated in the Standard Operating Procedures (SOP) 21 Roundtable on Sustainable Palm Oil (RSPO) that 18 years old is the

minimum age requirement in recruiting workers.

The Labour Registration Record has verified that there is no found evidence of any minors being recruited to work in PT. Adei

Plantation. Such evidence goes by the name of Yan Paul Sembiring, born 3 January 1989, who joined PT. Adei Plantation on 1 July

2008, when he was 19 years old.

The latest recruit is Refnawati, born 19 February 1986, who was assigned as office clerk on 19 January 2012, in the age of 26 years

old. A birth certificate included in her files is available for this reference.


6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.

The policy to prohibiting all forms of discrimination is stipulated in The Policy of Equal Opportunity and Treatment in Employment

which was authorized on 1 October 2011 by the Regional Director.

The List of Workers in Mandau Estate provides the information of Labour Social Assurance (Jamsostek) Numbers, date of

recruitment, religion, place and date of birth.

Such information serves as corroborating evidence to zero-discrimination against Ethnicity, Race and Religion, the policy of which

was applied to the recruitment of a worker goes by the name of Refnawati as office clerk on 19 January 2012.

The worker list included in the labour report document submitted to The Labour Agency of Bengkalis on July 2011 also confirmed the

implementation of zero-discrimination against Ethnicity, Race and Religion.

Moreover, to give priority to local residents in applying for a job, certain job vacancies (such as vacancy for office clerks) explicitly

specify the possession of local ID card of Semunai Village as one of administrative requirements.

This practice has resulted in the recruitment of Luncai, Maslawa and Tamjon; all three are Semunai Village residents, to be Security

personnel.

This practice is also performed to comply with Regional Regulation regarding Local Resident Employment (Regional Regulation of

Bengkalis District No. 4 year 2004 Chapter III Article 4) in which it is specified that; All employment seekers applying for any

positions must possess an ID card issued by the Head of Sub-district in Bengkalis District.

Letter of Appointment (SPK – Surat Pengangkatan Kerja) No. AD-KMU/SK/V/05/2012 promoting Saring to become a Permanent

Daily Worker (KHT) starting 23 April 2012, serves as a written document to demonstrate the achievable promotion to any Temporary

Daily Workers (KHL) willing to become a Permanent Daily Worker (KHT), provided that all administrative requirements have been

fulfilled and the 3-month probation period has been successfully completed.



ASSESSMENT REPORT


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

The policy to prohibiting all forms of sexual harassments is stipulated in The Policy on Sexual Harassment and Abuse, authorized on

1 October 2011 by the Regional Director, specifying the following;

1. The Company is applying a zero-tolerance policy to all forms of sexual harassment and abuse over women in all working

premises.

2. Sexual harassment and abuse are both regarded as serious violations, thus the company shall impose a prompt and firm

action on the offender.

3. The Management must set a good example and serve as a role model in reinforcing the prevention of sexual harassment

and abuse.

The policy on the protection of women’s reproductive rights is stipulated in The Policy of Protection of Women’s Reproductive Rights,

authorized on 1 October 2011 by The Regional Director, specifying the following;

1. The Company shall seek to comply with all law requirements and all regulations concerning women’s reproductive rights.

2. A Gender Committee is set to be established to carry out and monitor this policy.

The company has established a Gender Committee in each area (KMS and KMU), for example the Board Members of Gender

Committee serving Mandau Utara Estate who were inaugurated on 25 January 2012.

The dissemination of this particular subject has been made for the employees in the following manners;

1. Master Chips, which is conducted every day in Division offices

2. Dissemination conducted by the Gender Committee, such as the one took place in Mandau Utara Estate Office on 25

January 2012.

The work program of the Gender Committee for the period of 2012-2013 comprising the protection for female workers is available for

viewing.

Available are the Minutes from the meeting taking place on 25 January 2012 held by The Gender Committee of Mandau Utara

Estate. In addition to that, there will be a follow-up meeting in the next 6 months and the Minutes from the meeting held by The

Gender Committee of KMS on 20 April 2012 in which recorded that the meeting was attended by 5 board members of The Gender

Committee and was supplied with the list of attendees.

An SOP No. 21 on Management and Labour was available on 12 April 2012. The Guidance Points (point 3) authenticates the

existing protection of reproductives rights which covers; Maternity Leave, Pregnancy Test, Employment Prohibition for pregnant and

lactating women to be stationed in the work section requiring direct contact with chemical use, and Opportunity given to lactating

women to breastfeed their children during certain working hours.

Also available is an SOP No. 25 on The Procedures for Sexual Harassment Report dated 1 October 2011, explicating the handling

mechanism to be carried out in the event of sexual harassment being objected and reported. The improved version of this specific

SOP has been made available on 12 April 2012.


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

The Company has composed an SOP 28 on Pricing Mechanism of Fresh Fruit Bunch (FFB) on 12 April 2012, in which it is stated

that the price is to be published 2 times a week, i.e. Tuesday (for price calculation from Wednesday until Friday) and Friday (for price

calculation from Saturday until the following Tuesday). The payment for the FFB shall be made once a week every Thursday.

The agreement contract of FFB supply applies for a one-year period.


ASSESSMENT REPORT


There is a Sales and Purchase Agreement (SPA) MDU-043/TBS/XII/2011 signed by both representatives from PT. Adei and CV.

Karya Abadi appointing the latter party to be the FFB Supplier for PT. Adei with the following conditions: The price is determined by

PT. Adei on Tuesday and Friday, while the payment for FFB is agreed to be made on Thursday. A receipt for payment of 168.640 Kg

FFB to CV. Karya Abadi issued on Thursday, 19 April 2012 is available for reference.


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

A Social Corporate Responsibility (CSR) Program Matrix of Mandau Complex 2012, which was updated on 2/3/2012, is available

with detailed specifications on the type of aid, description, and completion target.

On this account, the company is capable of providing actual evidences of contributions to the local development, as listed below;

1. Frequent aid or those at the request of the community, such as; religious facilities, sports facilities, Monthly Honorarium for

the Heads, heavy machinery, et cetera. Those requests, as well as their process and the realizations are well documented

in the Aid Request Logbook.

2. The realizations of 2012 CSR Program; area expansion of Kindergarten in POM complex accessible for public, public

dissemination of the awareness on immunization and vaccination for toddlers, venture partners development to encourage

more local business players to step forward (CV. Ahmad and Hokim to name a few), and facility repairs for the roads used

by the community (Simpang Intan).

3. The following tax payment receipts are available for reference:

Payment receipt for CPO (Crude Palm Oil) matched the tax invoice No. 010.000-12.0000000, TIN (Taxpayer

Identification Numbers) 01.100.459.5-058.000 issued on 10 April 2012.

Payment for the 2011 Land and Building Tax matched the Evidence of PBB Tax Payment paid on September 2011

with a total amount of IDR 2,484,789,860.


PRINCIPLE #7 Responsible development of new plantings

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

No plantation expansion activities were identified. The current activities taking place are the conversion of rubber plantations into oil

palm plantations. The environmental planning and management are still referring to the Document of Environmental Impact

Assessment No. 86/DJ.VI/AMDAL/1999 which was approved on 6 July 1999 by The Director General of Forest Protection and

Nature Conservations / Chairman of Central Commission of EIA of Ministry of Forestry and Plantations.


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

The result of soil survey (printed on 16 April 2011) conducted by PT. AAR Indonesia showed that the areal owned by PT. ADEI Plantation has a range of 0 – 16 % slope condition. A 1:120,000-scaled map of soil type distribution is available to illustrate the soil condition based on soil classifications. The company does not classify any type or any unit of land into marginal soil, given the fact that there has been an existing Oil Palm cultivation on PT. ADEI’s land. The field research result has found several high sloping sites (in small scales), for example those found in Block 11C KMS 2 Division 7, where the cultivation is taking place. A terracing structure has been constructed on the premise and the planting of Mucuna bracteata legumes species has been done on the edge of the terraces, where a surface flow pattern has been set up allowing water to flow through the trenches up to the terraces.



ASSESSMENT REPORT


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

There is a Location Permit No. KPTS.30/I.L-VIII/1989 dated 30 August 1989 issued by the Governor of Riau Province, specifying the

possession of Location Permit and Rights Acquisition /Purchase of Land for an area of approximately 15,800 Ha in Mandau Sub-

district, Bengkalis District, to be converted into Rubber Plantations under the management of PT. Adei Crumb Rubber Factory. The

Letter of Forest Area Acquisitions; Decree of Minister of Forestry No. 027/Kpts-II/90 dated 13 January 1990 is stating the Acquisition

of Forest Area in Riau Province, i.e. an area of 15,826.25 Ha, which is half of the area of Forest Cluster Sungai Samsam – Sungai

Penaso, in Bengkalis District; and an area of 12,734 Ha of Forest Cluster Sungai Air Hitam and its adjacent area in Kampar District.

The aforementioned areas are intended for cultivating plantation under the management of PT. Ade Crumb Rubber Factory. The

Land Use Title (HGU) No12/HGU/1990 dated 10 July 1990, marking an area of 14,900 Ha, is valid from 10 July 1990 until 31

December 2020.

The environmental planning and management are still referring to the Document of Environmental Impact Assessment No.

86/DJ.VI/AMDAL/1999, authorized by The Director General of Forest Protection and Nature Conservations / Chairman of Central

Commission of EIA Ministry of Forestry and Plantations on 6 July 1999. A map on the conversion plan to substitute rubber plants

with oil palm plants is available and has been matched up with the result of HVC identification.


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

A map of soil type distribution in a 1:120,000-scale is available to illustrate soil condition based on soil classifications. The company

does not classify any type or any unit of land into marginal soil, given the fact that there has been an existing Oil Palm cultivation on

PT. ADEI’s land.

The result of soil survey (printed on 16 April 2011) conducted by PT. AAR Indonesia showed that the area owned by PT. ADEI

Plantation has a range of 0 – 16 % slope condition. The field research result, however, has found several high sloping sites (in small

scales), for example those found in Block 11C KMS 2 Division 7, where the cultivation is taking place. A terracing structure has been

constructed on the premise and the planting of Mucuna bracteata legumes species has been done on the edge of the terraces,

where a surface flow pattern has been set up allowing water to flow through the trenches up to the terraces.


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

The EIA Document has listed down the following social parameters for monitoring purpose;

1. Employment Opportunity

2. Community Perceptions

3. Health

The Environmental Impact Assessment Document has been composed based on the assessment conducted by Aksenta on January

2012.

The identification records of the parties receiving compensatory is documented in The Document of Land Compensatory

Settlements, for example; the settlement (compensatory) document that consists of a Document of Statement Letter, Minutes of

Settlement of Land Souvenirs Payment, Map of measuring process results conducted by the Company and the concerned parties,

and also the Payment Receipt from the company to the parties. One can refer to a sample case of an area of 3.85 Ha previously

belonged to Mr. B. Nababan (resident of Tengganu Village) for which a compensatory has been paid to on 27 April 2004.



ASSESSMENT REPORT


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

There is a Map showing there are areas still belonging to the community (referred to as “lands dispute” in Company Map). The

identification records of the parties receiving compensatory is documented in The Document of Land Compensatory Settlements, for

example; the settlement (compensatory) document that consists of a Document of Statement Letter, Minutes of Settlement of Land

Souvenirs Payment, Map of measuring process results conducted by the Company and the concerned parties, and also the

Payment Receipt from the company to the parties.

One can refer to a sample case of an area of 3.85 Ha previously belonged to Mr. B. Nababan (resident of Tengganu Village) for

which a compensatory has been paid to on 27 April 2004.


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

PT. ADEI keeps an SOP on the execution of land clearing converting rubber area into oil palm one (SOP No. 29).

The land clearing process is done in several ways, i.e. stacking the rubber trees, uprooting the rubber stakes, tree trunks piling,

putting up the boundary poles, terracing, creating individual terraces, creating trenches and roads.

There is a sample document of Contract Agreement Letter (SPB) No. 56/ADEI-SPB II/2012 between PT. ADEI PLANTATION &

INDUSTRY and CV. Sejahtera Jaya, on the working contract for the execution of land clearing converting rubber plants into oil palm.

During the process of land preparation in Block PN 12A for an area of 474 Ha (a follow-up plan from 2011), no burning activity was

done to clear the land.

There is a Land Fire Response Procedure which covers preventive action, curative action, and administrative action. The procedure

describes the proper steps to fire prevention and fire response activities. Samples of preventive actions; mapping the areas prone to

fires, reinforcing the patrolling activity over the areas based on different prone levels, displaying some fire warning caution boards in

fire-prone areas, etc.

The company keeps the records of the implementation of fire drill activity, such as:

Fire response training for firefighters, conducted by the Head of Fire Department and Disaster Mitigation, Labour Agency,

on 22/09/2011 in Mandau Selatan Estate (KMS) and was attended by 16 participants (fire fighting team).

Technical training on fire fighting, conducted on 04/02/2012 by Kristian Jose Tarigan at Division 5 Office of KMS2, and was

attended by six participants.

Fire response facilities and infrastructure, for example the ones in MPOM consist of the following:

1. 4 units of water hydrants – located in kernel hopper area (1 unit), empty fruit bunch shreeding area (2 units), and oil

dispatch shed area (1 unit).

2. 4 x 20 meters hydrant hose 2.5”

3. 2 units of nozzles

4. 29 units of dry powder (dry chemicals) fire extinguishers

5. 3 units of CO2 fire extinguishers.

During a field visit to KMS 1 workshop, several sets of fire fighting equipments were found available, such as: water pumps, hoses, buckets, helmets, and firefighting protective outfits. There is an evidence of an inventory checklist on the fire extinguisher equipments, as well as the inspection results of the condition of the equipments. The recent data of the equipments inspection conducted on April 2012 showed that all equipments are in good condition and are well functioning. There is a map of identification results of fire-prone areas, covering an area of 525 Ha (all of which are peat lands), and a buffer area

between resident estates and those of PT. ADEI’s.



ASSESSMENT REPORT


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

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

The company is currently working on an environmentally friendly management of liquid waste resulting from the mills by developing

POME biogas (capture anaerobic digester plant) in Mandau POM. Moreover, PT. ADEI has also signed a contract with Oiltek-nova

Bioenergy Sdn. Bhd. to work on this project.

The company has set up the plan in reducing the use of paraquat, which is composed in the Monitoring Document of The Use of

Paraquat Dichloride For 5 years, authorized by the General Manager. It is specifically indicated in the document that the use of

paraquat dichloride during 2011 was as much as 14,400 liters. For the year of 2012, on the other hand, the use of this chemical

substance is targeted to be as much as 12,960 liters, while for the year 2013, the volume is targeted even as lower as 11,520 liters.

The volume of paraquat dichloride used by the company continues to lessen as the target for the year 2014 is down to 10,080 liters;

it’s even lesser for the year 2015 (8,640 liters) and for the year 2016 (7,200 liters).

The use of Brodifacoum has been discontinued since the year 2012 and was replaced by the use of pesticides containing 0.005%

active Flocoumafen (Storm).

The company has followed up the Pre-Assessment results with such activity; the meeting held by the company’s management team

on 10 April 2012, which resulted in an agreement to proceed with the fulfillment of the non-conformances identified during Pre-

Assessment stage. All process and results of the agreement are documented under RSPO Meeting File.



ASSESSMENT REPORT


3.2. Summary of Assessment Report of Supply Chain

Clause CPO Mills Mass Balance Model Requirements

1 Documented Procedures

1.1

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

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

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

a) The Company keeps an SOP of RSPO Supply Chain Certification System Scheme for Palm Oil Mill, authorized by

Mill Adviser on October 2011.

b) The responsible personnel for the implementation of these requirements are:

- The manager of Mandau POM, who keeps and maintains all documents and records of the use of all raw

materials, supporting materials used in production process and end product quality, and CPO shipment.

- Assistant Manager, who compiled the recapitulation/daily report.

- Laboratory Assistant, who analyzes and assesses the quality of raw materials and products at all stages of the

production process.

- Assistant Supervisor, who oversees the mill’s working process.

- Mill Assistant, who is in charge of the inspection of the transportation of CPO and PKO products from POM to

bulking station.

- Bulking Manager, who is in charge of overseeing the bulking station in Dumai.


1.2

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

The company has a mechanism of fruit acceptance by requiring the drivers to present the Fruit Dispatching Order Notice

(SPB) issued by every Estate and fruit contractor. This order notice (SPB) indicates the origin and the quantity of fruits.

An SOP of Palm Oil Mill, authorized on December 2011 by the Mill Controller, covers the procedures in Weighbridge station,

Loading Ramp, Sterilizing station, Trippler and Thresher, Digester station, Press station, Oil Room station, Depericarper

station, Nut Cracker station, Kernel Silo, CPO Dispatch, Palm Kernel Dispatch, Boiler House, Power Plant. Also available are

the Working Instructions for Laboratory Test, authorized by the Mill, Senior Manager on 1 April 2011.


2 Purchasing and goods in

2.1

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

The company has a mechanism of fruit acceptance by requiring the drivers to present the Fruit Dispatching Order Notice

(SPB) issued by every Estate and fruit contractor. This order notice (SPB) indicates the origin and the quantity of fruits.



ASSESSMENT REPORT


2.2

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

Non-Applicable, the company has not been certified yet.

Status: Not Applicable

3 Record keeping

3.1

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

The company is capable of presenting the complete records and reports included in the following documents:

Daily Report on Laboratory Analysis describing CPO production quality, CPO Stock Quality, PK Production quality, Empty

Bunch, oil looses, press and Ripple Mill/Nut Cracker Efficiency.

The entire records and reports are composed and well compiled by the company, using two document storage systems, an

SAP System (computerized) and a set of hard copy (print out) kept inside the manager’s office and in the document storage

room


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

The entire records and reports are composed and well compiled by the company, using two document storage systems, an

SAP System (computerized) and a set of hard copy (print out) kept inside the manager’s office and in the document storage

room.


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

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

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

The company is still receiving the fruit from the outside at the moment; therefore a Mass Balance Supply system is still

employed. However, over time and over the changes of consumer’s demand, a CPO System Segregated is to be applied in

compliance with the Memo from The Regional Director No. TKY/2012/2011. Given the fact that to this date the company has

not been RSPO’s certified yet, the specific records on certified products are not yet available.

Nevertheless, the company keeps a Summary of Production and Dispatch Record for Month. This document covers the

following information: date of fruit received, processed, Rainfall, 0il (Produced oil, Extraction Rate, Technical Specification

(FFA), process hours, Through Put, Weight per cage), Kernel (Produced, Extraction Rate, Technical Specification (Moisture,

Dirt and shell)), Dispatched oil, stock oil, Dispatched kernel, Kernel Stock and Ready Stock.


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

Once the company has obtained the necessary certificate, there will be a statement declaring that the CPO products are

certified, indicated on the Delivery Order, ex-Mill Contract and Invoice.



ASSESSMENT REPORT


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

The company owns Mandau Kernel Crushing Plant which is still under the same management of PT. Adei Plantation.


4 Sales and goods out

4.1

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

(a) The name and address of the buyer

(b) The date on which the invoice was issued

(c) A description of the product

(d) The quantity of the product delivered

(e) Reference to related transport documentation

PT. Adei has ensured that the invoice issued for the shipment of RSPO certified Palm Oil will include the information of

Name and Address of the buyer, as stated on the Invoice No. 000032MDU issued on 14/04/2012. It will also include the

following product details: quality/specification, quantity, price, and transport document (weigh ticket number and vehicle

number). Given that the company has not yet obtained an RSPO certificate, the information on supply chain model is not yet

available. However, once the company has obtained the necessary certificate, there will be a statement declaring that the

CPO products are certified, indicated on the Delivery Order, ex-Mill Contract and Invoice.


5 Training

6.1

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

The records of the training for all staff working on technical sections (Process, Office, Laboratory including dispatch officers,

security, and wireman), the Supply Chain training will take place on September, in accordance with the Training Program of

Mandau POM (2011/2012).


6 Claims

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

The sale of CPO, PK, and PKO is still not using RSPO certified claims on the product sold by PT. Adei, due to the fact that

the company has not yet been certified.



ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use (Only apply for Surveillance Assessment Report)

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

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

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

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


ASSESSMENT REPORT


3.4. Summary of Time Bound Plan Verification of the RSPO Certification (Will be verified at the Surveillance)

Total companies visited (0.8 √Y) Where Y is the total of one holding company The company name :

1. 2. 3.

Visit date :

2.1

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

2.2

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

6.3

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

6.4

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

7.3

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

7.5

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

7.6

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


ASSESSMENT REPORT

SPO – 4006a.4 Page 50

Prepared by Mutuagung Lestari for Adei Plantation

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

During the ST1 assessment 4 (Four) nonconformities were assigned against Major Compliance indicators, 4(Four) nonconformities were assigned against Minor Compliance Indicators and 22 (Twenty Two) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to close all non-conformities shall be verified during next assessment.

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

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2012.

01

Major

1.1.2

Insufficient evidence is not available

to claim all records of the responses

to information request are well

documented

KMS 1

and

KMS 2

Major Before

ST2

The company must provide the

evidence to support the claim of

documenting all responses to

information request.

24 April 2012.

All records of the responses to

information request have been

documented in an information

logbook to be recapitulated into

expedition logbook afterwards.

Closed 24 /04/2012

2012.

02

Major

2.1.1

Unimplemented regulations are still

found:

1. Waste balance sheet report has

not been submitted on a 3-month

basis to respective institutions as

instructed in the permit notice of

hazardous waste warehouse No.

28 year 2011 from Environment

Bodies (BLH) of Bengkalis District

2. A number of heavy machinery

operators are identified without

Operator License (SIO), which

should be the standard

Estate

and Mill

Major Before

ST2

The company must supply the

document with the evidence of

compliance with the applicable

regulations and in relation with

company’s operational activities.

03 April 2012. The company

has presented the complete

document of material safety data

sheet for POINTER 276 SL and

STORM WAX BLOCK.

24 April 2012.

The company has supplied the

document with the evidence of

compliance with the applicable

regulations and in relation with

the company’s operational

activities, such as:

1. The company has submitted

Compli

ance

with

observ

ation.

01/10/2012


ASSESSMENT REPORT

SPO – 4006a.4 Page 51


CAR No



Closing Date

requirement according to the

Regulation of Labour Ministry No.

9 year 2010.

3. There is still no trained operator

available for limited pesticides

applications in compliance with

Regulation of Agriculture Ministry

No. 7 year 2007.

4. There is still a lack of OHS

specialist capable of being a

secretary to Guiding Committee of

OHS, as referred to in The

Regulation of Labour Ministry No.

4 year 1987.

5. No signage showing symbols of

Hazardous Materials and

Hazardous Waste has been

placed in the mill or around the

estate, which refers to Regulation

of Environmental Ministry No. 3

year 2008.

6. Diesel fuel drips causing direct

contamination to the environment

are still found around the area of

dam water pump machine in

Division 7 KMU 7, the fact of

which may be considered non-

conformance with Government

the Waste Balance Sheet for

Hazardous Waste Material

on 9/04/2012 for the period

of November 2011 –

February 2012 to the

Environment Bodies of

Bengkalis.

2. The company has filed a

request to the Head of

Labour and Transmigration

Agency of Bengkalis District,

with regards to the release

of Operator License under a

document No. AD-

KMS/Ext/16/III/2012 dated

30 March 2012.

07 September 2012. The

company has shown a letter

from the Department of

Labor No.

560/DTKT/PK/IX/201/404

date on 04 September 2012

regarding progress

administration License of

heavy machinery/Crane

Operators (85 operators) are

still in the process of issuing

from the Ministry of Labor.


ASSESSMENT REPORT

SPO – 4006a.4 Page 52


CAR No



Closing Date

Regulation No. 18 year 1999 Jo

Government Regulation No. 85

year 1999.

7. Material Safety Data Sheet

(MSDS) for Hazardous Materials

Storm and Pointer is already in

compliance with Government

Regulation No. 74 year 2001.

3. The company has filed a

request to the Plantation

Agency of Bengkalis to

conduct the training on

limited use of pesticides

under a document No. AD-

KMS/Ext/17/III/2012 dated

30 March 2012.

20 September 2012.

The company has shown a

letter from the Department of

Plantation and Forestry, No.

525/Disbunhut-

PP/IX/2012/0409 date on 15

September 2012 about

Recommendations usage

Paraquat Herbicide by the

operators have not license

valid until 31 December 2012

and operator training plan on

15 October and 29

November 2012.

4. The company has appointed

Mr. Adria (a registered OHS

specialist, Reg. No.

7907/PK3/AJ/91/2011/PO)

as the secretary of Guiding

Committee of OHS, and has


ASSESSMENT REPORT

SPO – 4006a.4 Page 53


CAR No



Closing Date

reported the appointment to

the Labour Agency of

Bengkalis in a letter of notice

dated 12 April 2012.

01 October 2012.

The company has shown

Legalization Letter P2K3

from the Department of

Labor for Mandau POM (No.

KEP.076/DTKT/PK/P2K3/20

11); KMS 1 & 2 (No.


11), KMS 3 (No.KEP.

079/DTKT/PK/P2K3/2011);

KMS 4 (No.


11) and KMU (No.


11)

5. Following a visit to

Hazardous Waste Material

Warehouse, Diesel Fuel

Tank in KMU6 and to

Hazardous Material Waste

Warehouse in KMS1, the

company has made an

adjustment of the symbols in

compliance with the


ASSESSMENT REPORT

SPO – 4006a.4 Page 54


CAR No



Closing Date

Regulation of Environmental

Ministry no. 3 year 2008.

6. The company has made

necessary repairs on water

pump house by closing

down the water outlet and

building a diesel fuel

reservoir tank to prevent any

direct contamination to the

environment.

2012.

03

Minor

4.7.2

Adequate information is not available

to prove that all employees working in

stations or those in high-risk sections

have been medically examined on a

regular basis. For example;

employees working in Hazardous

Waste warehouse and Diesel

Generator operators in KMU 6.

Estate

and

POM

Minor Before

ST2


evidence to show that all

employees working in stations or

in high-risk sections have been

medically examined on a regular

basis.

24 April 2012.

The company has presented the

evidence of the medical

examination for the employees

in Hazardous Waste Material

Warehouse conducted on 16

September 2011 and the same

procedure given to operator of

Diesel Generator on 29 March

2012. The regular medical

examination is set to be

conducted on a 3-monthly basis.

Closed 24 /04/2012

2012.

04

Major

5.2.1

No evidence available to declare that

the HCV identification document has

been composed using the June 2008

standardized HCV identification

Toolkits as the guidance, for example:

1. Peer review has not been

Estate Major Before

ST2


evidence of HCV identification

document which is composed

using the June 2008 standardized

HCV identification Toolkits as the

guidance.

31 February 2012.

1. No evidence is available to

show the execution of peer

review on HCV document.


the revised document of

Closed 24 /04/2012


ASSESSMENT REPORT

SPO – 4006a.4 Page 55


CAR No



Closing Date

performed for all HCV documents.

2. Not all identified species under

the protection of the Statute,

IUCN and CITIES have been

classified into their respective

status of extinction.

3. The maps illustrating the results of

HCV identification are not

available in proper scales.

protected species

classifications; however,

there are still a number of

species with unspecified

status.


the map of identification

results of HCV areas in

adequate scales.

24 April 2012.

1. The company has assigned

Aksenta to conduct the peer

review through an assignment

letter No. TKY/2012/009 dated

12 April 2012. The review is

currently still in progress.

2. The company completed the

classification of the species

that are protected,

endangered and extinct,

based on their extinction

status (CITIES, IUCN, and

Statutes).

3. The company has provided

the map oh HCV identification

result with the indicated

scales.

20 July, 2012. The company has shown Peer


ASSESSMENT REPORT

SPO – 4006a.4 Page 56


CAR No



Closing Date

Review report of documents HCV Identification Report. Review done by 3 person of competent experts, including Mr. Yoyo Hadiprakarsa MSc (Researcher: Biodiversity and Conservation), Dr. Nana M. Arifjaya (Expert Hydrology, soil and water conservation); Mr. Gelar S. Budhi, MSc (Social Expert).

2012.

05

Major

5.2.2

A step-by-step protection procedure

for extinct or endangered species is

already available, but does not

include the observation on the types

of species identified and their habitat.

Estate Major Before

ST2

The company must take protective

actions to preserve those extinct

and endangered species by also

covering the observation on the

types of species and their habitat.

The company, represented by

the personnel from HCV

management, has conducted an

observation on the species

regarded as protected,

extinct/endangered.

Closed 24 /04/2012

2012.

06

Minor

5.2.2

The specifically appointed personnel

are still not available to conduct the

activity of HCV management and

observations.

Estate Minor Before

ST2

The company must provide

special personnel to take care of

the HCV management and

observation activities.

The company has appointed Mr.

Aprizal as the coordinator and

Mr. Kristian Jose Tarigan as the

deputy, both to be responsible

for the management of HCV that

complies with the appointment

letter issued by Senior General

Manager on 16 April 2012.

Closed 24 /04/2012

2012.

07

Major

5.3.2

No sufficient evidence to show that

the SOP of hazardous waste

materials treatment has been

implemented, for example the finding

of monitoring data showing the use of

POM Major Before

ST2

The company must re-evaluate

the SOP and the implementation

of Hazardous Waste Treatment.

24 April 2012.

The company has revised the

SOP of Hazardous Waste

Treatment by including the

explanation on the possibility of

Closed 24 /04/2012


ASSESSMENT REPORT

SPO – 4006a.4 Page 57


CAR No



Closing Date

used oil as lubricant for loading ramp

and loading hopper which was

identified in POM on 17/01/2012.

reusing Hazardous Materials,

and that the remaining waste is

to be collected by certified

stocking agencies. For example,

reusing used oil as lubrication

for conveyor chains, loading

ramp and loading hopper where

possible.

2012.

08

Minor

5.3.1

No sufficient evidence to show that

the SOP of hazardous waste

materials treatment has been

implemented, for example, no data

was available in KMU to show the

monitoring of the following

packagings: Trendy, Meta prima,

Metsulindo, and Indostik.

Estate Minor Before

ST2

The company must re-evaluate

the SOP and the implementation

of hazardous waste material

treatment.

27 April 2012.

The company has presented the

data collection of used

pesticides containers, for

example; 41 pieces of used

Metsulindo containers were

collected during 11-17 April

2012.

Closed 27/04/2012


ASSESSMENT REPORT

SPO – 4006a.4 Page 58


During the ST1 assessment 0 (Zero) nonconformities were assigned against Major Compliance indicators, 6 (Six) nonconformities were assigned against Minor Compliance Indicators and 16 (Sixteen) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to close all non-conformities shall be verified during next assessment.

3.5.2 Identification of Findings, Corrective Actions and Observations at ST 2 Assessment

CAR No



Closing Date

2012.

09

Minor

4.3.3

Inadequate numbers of equipments

available for road maintenance

program, to be able to cover the

entire area.

The field visit to KMS 4 has resulted

in the finding of damaged roads, while

there are only 4 heavy machineries

available; Grader (1), Loader (2) and

Compactor (1).

Estate Minor S1 The company must re-evaluate

the supply of equipments for road

maintenance program.

2012.

10

Minor

5.1.1

Minor

6.1.1

The EIA document kept by the

company has not covered the impact

assessment on the constructions of

Kernel Crushing Plant (KCP) Mill.

Mill Minor S1 The company must supply the

document with the environmental

assessment which covers the

impact of the constructions of

KCP by working together with

Environment Bodies (BLH).

01 May 2012.

The company keeps a document

of Environmental Management

Efforts (UKL) and Environmental

Monitoring Efforts (UPL) No.

660/Bapedalda - AM/1246/2007

authorized on 29 November

2007.

Closed 01

/05/2012

2012.

11

Minor

5.3.2

No available data showing that the

company has performed domestic

waste monitoring.

Estate

and Mill

Minor S1 The company needs to monitor

the domestic waste to determine

the necessary policy as to

reducing the domestic waste.


ASSESSMENT REPORT

SPO – 4006a.4 Page 59


CAR No



Closing Date

2012.

12

Minor

5.5.1

There is not enough evidence, the

company has evaluated the adequacy

of infrastructure for firefighting lands

(for example: Identify fire-prone

areas, water resources, and the

adequacy of facilities and

infrastructure for firefighters).

Estate

and Mill

Minor S1 The company needs to evaluate

the adequacy of fire response

equipments, in terms of the types

and the numbers based on the

proneness level.

2012.

13

Minor

6.5.1

No sufficient data available to show

that the company has provided the

proper facilities and infrastructure,

such as employee’s transportation,

housing complex (as in PE 04) and

the availability of fire extinguisher

equipment in housing complex.

Estate Minor S1 The company needs to provide

the proper facilities and

infrastructure for the employees.

2012.

14

Minor

6.8.1

There is a requirement for KHL to be

appointed to KHT that specifically

requires that one must have local

residential document.

Estate Minor S1 The company must re-evaluate

the necessary requirements for

KHL to become KHT.

1 May 2012.

The company has presented

that the rationale behind the

appointment of KHL to be KHT

was to essentially support the

Regional Regulation on Local

Resident Employment (Regional

Regulation of Bengkalis District

No. 4 year 2004, Chapter III

Article 4), in which it is specified

that; All employment seekers

applying for any positions must

possess an ID card issued by

the Head of Sub-district.

Closed 01/05/201

2


ASSESSMENT REPORT

SPO – 4006a.4 Page 60


3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 The company is capable of improving every SOP revision by conducting dissemination to respective parties.

2 Major 1.1.1 The company is capable of improving the standardization of the codes used in the document of SOP for KMS or KMU.

3 Major 2.3.2 The company holds a potential to improve the gathering of information regarding the owners of the land located inside the company’s HGU area identified as

privately owned by the community.

4 Minor 4.3.2

Minor 7.4.2

The company has showed the improvement in monitoring the soil erosion occurred on high sloping land to ensure the effectiveness of the conservation

program (land cover crops planting and terracing), for example the one executed in Block 11C KMS 2 Division 7.

5 Major 4.5.1 The company holds a potential to evaluate the policy/SOP of Integrated Pest Management (SOP RSPO No. 7), by considering the census result (level of

attack) to determine the use of pesticides in Pest and Disease Control.

6 Minor 4.3.4 The company has showed the improvement in the drainage maintenance program on peat land done periodically.

7 Minor 4.7.5 The company has the potential to complete the evacuation routes in case of emergency for the office, estate, housing complex and mill.

8 Minor 4.7.6 The company had showed an improvement in providing Personal Protective Equipment (PPE) as a replacement for the ones no longer functional or missing.

9 Major 5.1.2 The company is capable of carrying out the evaluation of the results of environmental parameters assessment and compiling them in the environmental

management report (RKL/RPL), for example the fact that the heavy metal contents (Pb) and the noise level are still higher than the environmental quality

standard.

10 Minor 5.2.2 The company need improved the skills/expertise of the appointed HVC management staff.

11 Major 5.3.2 The company has been able to reinforce the awareness of the employees about the management of domestic household in accordance with the company

policy.

12 Minor 6.1.1 The company has integrated the parameters and the recommendations of the results from Social Impact Assessment into the report of RKL/RPL to be

submitted periodically to relevant institutions.

13 Major 6.3.1 The company has managed to follow up on community complaint to facilitate a more extensive communication with those affected by the management of the

estate (traditional leaders, youth leaders, and community).


ASSESSMENT REPORT

SPO – 4006a.4 Page 61



14 Major 6.5.2 The company has showed improvement in dissemination activity in relation with wage policy for the workers union.

15 Minor 6.6.2 The company has a potential to improve and to intensify the communication with related parties on the subject of the existence of SBRI (Riau Independent

Workers Union).

16 Minor 6.11.1 Preparing the CSR program has given the company an opportunity to make improvements by taking into account the community needs conveyed through

mutual consultations.

3.5.4 Noteworthy Positive Components


1 The company has been well prepared as to the compliance with the Principals and Criteria of RSPO, the result of which showed that there are only 8 out of

149 indicators declared as non-conformance.

2 2 The company has composed the step-by-step adjustments to comply with the applicable regulations.

3 3.1 The company keeps a well-composed long-term action plan.

4 Minor 4.7.6 The equipment supplies for occupational health and safety, and for first aid emergency (P3K) in working sites have been well-executed.

5 8 The company has put necessary efforts to improve the implementation of the Principals and Criteria of RSPO by continuously evaluating the fulfillment of the

indicators declared as non-conformance.


ASSESSMENT REPORT

SPO – 4006a.4 Page 62


3.6 Summary of Public Issue, The Responses from The Management and The Auditor.

Public Issue

(Institutions/ NGOs / Community) Management Responses Auditor Responses

The Board Members of Workers Unions (SPTI, SPRI, and

SBRI)

1. The company is not being satisfactorily transparent

regarding the termination of FFB purchase contract

with the farmers.

2. The existence of Riau Independent Workers Union

(SBRI) is not well acknowledged by the company.

3. The company is being less transparent when being

asked to present the salary and premium

transparency.

4. Eligibility assessment on salary standard for

employees.

1. The company does not purchase directly from

the farmers, given that the current policy

specifies the company to receive the fruits from

the fruit collectors who can comply with the pre-

established FFB Quality Requirements. FFB

collecting contractors have a one year valid

FFB supply contract with the price of which is

determined twice a week.

2. The company requires SBRI to supply with the

complete organizational structure.

3. The company has presented the salary and

premium transparency on payment slips as per

request.

4. The company has its own payroll system that is

based on the length of employment period with

the standardized pay in compliance with the

Sectoral Minimum Wage of Province (UMSP)

which was the result of study from the relevant

institutions.

1. The company has its own mechanism of determining the

quality and price agreed by both parties, as stated in

FFB Supply Contract. Refer to criteria 6.10

2. The company needs to intensify the communication

efforts on the subject of the existence of SBRI. Refer to

criteria 6.6

3. According to the information gathered from the

management and the clarification regarding payment

slips, there has been sufficient explanation regarding the

premiums received by the employees. However, it is

advised that the company conducts the dissemination on

the salary and premiums to the workers union.

4. The company has its own payroll system in a form of

PBTs Salary Revision which refers to 2012 UMSP

(Governor Regulation No. 11 year 2012) and by

considering the length of employment period.


ASSESSMENT REPORT

SPO – 4006a.4 Page 63


Public Issue


5. Lack of proper facilities in housing complex for

employees, such as lightings, toilets, and floor.

6. The company is advised to re-evaluate the policy of

providing the number of artesian wells that is currently

based on the number of employees.

7. There are a large number of complaints filed on

respiratory problems occurred in the areas around the

mill.

8. PPE for the workers are not suitable, such as the

aprons.

9. The company has not provided all workers with the

PPE, for example the Boiler workers.

10. Truck is the only means of transportation available for

employees and students.

5. The company has set up a plan to improve the

housing facilities.

6. The company has set up a plan to have more

water supply installation.

7. There are only insignificant numbers of

complaints for respiratory problems.

8. The company has provided the proper aprons

(water evidence). In case of any complaint

related to PPE, there will be immediate

response to it by replacing the PPE.

9. The company has provided and supplied all

workers with the appropriate PPE.

10. The company has provided school buses and

trucks for employees.

5. The document study showed that the improvement

program for roof/ceiling, floor, toilets, electrical and water

supply installation is authorized by the Senior Manager.

Budget estimation is included in Estimate Report

2011/2012 point Workers Quarters Upkeep. Refer to

criteria 6.5

6. The document study showed that the improvement

program water supply installation is authorized by the

Senior Manager. Budget estimation is included in

Estimates Report 2011/2012 point Workers Quarters

Upkeep. Refer to criteria 6.5.

7. The visit to KMS clinic and the interview with the

company doctor have identified a significant number of

TB cases. On that account, company doctor has

compiled the data and is to work together with Health

Agency to identify the exact source of this disease.

8. Based on a field visit to PE04, the interview with spray

team, and a direct examination on PPE, it is concluded

that the existing PPE is in good supply and well

functioning. Direct test of spraying water onto the apron

has showed that the aprons are waterevidence.

9. There is a Record of Goods Out to specify the release of

PPE with detailed information on Name, Position,

Activity, Type of PPE received, date of distribution and a

receipt. Based on field visit in the estate and mill is

known the workers has used PPE. Refer to criteria 4.7

10. The company does not provide the number of school

buses to meet the number of students. The trucks


ASSESSMENT REPORT

SPO – 4006a.4 Page 64


Public Issue


11. Rolling blackouts in housing complex.

12. A reasonable mechanism of health care Assurance,

for example the one applied for KHL.

13. Waste water pond of PE 04 is located in a working

area.

11. The company has prepared the electricity

supplies for every housing complex the

capacity of 450 KVA with two operational hours.

Morning 4 – 6 and evening 6 – 11.

12. The company has provided a clinic as the

facility for free medical service for all

employees and it has also partnered with the

Hospital.

13. Block PE 04 is a POME application land area.

provided as transportation facility for the employees do

not meet the safety standard.

11. The visit to housing complex in KMU 6 and KMU 7

revealed the data that the company has supplied the

electrical facility with a 450 KVA capacity for two

operational hours: morning 4-6 and evening 6-11.

12. The clinic visit has revealed that the company is having

an agreement with local Hospital, which is proven by the

records of references and payment claims for medical

expenses. For example, there is a reference to Permata

Hati Hospital in Duri dated 26 April 2012 (SP no. 02146)

and Payment Claim Records for Permata Hati Hospital

expenses for 9 types of day hospitalization and 17 times

of policlinic visits with the amount of IDR 98,606,666.

13. The visit to Block PE04 has revealed that the area is set

as Application Land.

Secretary of Beringin Village:

1. The community is questioning the prohibition of

accessing the road passing through the estate during

night time.

2. There has not been any Community Development

Program initiated by the company.

1. For security/safety purposes, the company has

set up the policy to give access to open pickup

vehicles from 07.00 to 18.00. However, this

hour restriction does not apply for private

vehicles and motorcycles.

2. To this date, the company does not have any

smallholder’s scheme. However, the

management has agreed to include the

Community Development in the next CSR

program.

1. The company has sent a notice to the Head of Pinggir

Sub-district on 29 November 2007; however, there is the

need to disseminate this policy to the community. Visit

result.

2. The preparation of CSR program shall also put the

community needs into considerations. Refer to 6.11


ASSESSMENT REPORT

SPO – 4006a.4 Page 65


Public Issue


3. The company has provided the community with

employment opportunity, but more of it is expected.

3. The company has provided the local community

with employment openings. All labour demand

is already fulfilled, but the priority will still be

given to local residents over outside manpower.

3. The company needs to intensify the policy dissemination

activity regarding labour demand to the community.

Community Leader of Muara Basung Village:

There is still a lack of communication between the

company and the community.

The company has so far initiated a number of

communication efforts with the village officials.

The company is advised to get more parties to be involved in

the dissemination of company policies.

Head of Tengganau Village:

1. The company has never shared any employment

information.

2. The contaminated water found in Sungai Penggiri and

Sungai Punggur has cost the fishermen their possible

revenue.

3. The graves area of Datuk Darah Putih is being well

maintained.

4. The company has never participated in the activity of

Planning and Developing Consultation

(MUSREMBANG) in preparing and determining the

CSR program.

5. There are several landslides found in Simpang

Jepang route as a result of company’s operational

activities.

1. The company has distributed the information on

labour request to the Labour Agency of

Bengkalis District and also to the community

informally by the managers.

2. No waste excess from the POM found to have

flowed into Sungai Penggiri and Sungai

Punggur.

3. The company has established the graves area

of Datuk Darah Putih as part of HCV 6; as a

result, it is necessary to work together with the

residents of Jihat Village to maintain the area.

4. The company has never received any invitation

to participate in any MUSREMBANG activities.

5. The company has stated that the specified

route is the responsibility of Chevron.

1. The company is advised to formally deliver the

information regarding the need of labours to the

community.

2. The company is advised to conduct the water quality

assessment in both rivers.

3. The company has established the grave area of Datuk

Darah Putih as HCV 6 area.

4. It is advised that the preparation of CSR program shall

also consider the need of community, which is delivered

through MUSREMBANG. Refer to 6.11

5. The route is considered as PT. Chevron’s responsibility

given that it functions an access to the oil field and there

is a gas pipeline installed underneath. The landslide-

damaged route is currently under restoration (land

filling).


ASSESSMENT REPORT

SPO – 4006a.4 Page 66


Public Issue


Community Leader of Sakai Village:

The community support the implementation of RSPO.

The Secretary of Semunai Village:

1. The company has not responded to the request for

an access road from Air Hitam to Semunai.

2. The residents made inquiries regarding the clearing

of endowment land (wakaf) in Division 11, a

graveyard area.

1. A communication effort has been initiated

between the company and the village and sub-

district officials, however, there has not been

any decision made from the sub-district office

2. The company has reached a settlement

regarding a 1 Ha area of endowment land in

Block 106,107 KMU 7.

1. The company has showed the evidence of negotiation

made with the community and other respective parties,

even though no settlement has been reached from.

Refer to Criteria 6.3

2. The company has presented the settlement reached on

the endowment land and its land measurement minutes.

Refer to criteria 6.3

Natural Resources Conservation Agency:

Natural Resources Conservation Agency has just received

the information regarding elephant crossing routes that

pass through PT. Adei’s property, the information of which

was not found in the existing data held by Natural

Resources and Conservation Body (BKSDA).

The elephant species has been established by the

company as HVC 1.2.

The company has demonstrated the handling management

of the elephants in the SOP of elephant handling. Refer to

5.2

LABOUR AND TRANSMIGRATION AGENCY:

1. The large number of Temporary Daily Workers (PHL)

not yet promoted to be Permanent Workers.

2. The Employment Report (workers data) not yet

submitted.

1. The large number of PHL not yet promoted to

be permanent is mostly caused by residential

administrative requirements.

2. The company has been submitted the

employment report on an annual basis.

1. The company must re-evaluate the requirement policy

applied for PHL to be promoted to be permanent

workers.

2. The company has presented the employment report on

19 January 2011.


ASSESSMENT REPORT


4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

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

Signed on behalf of:

Kuala Lumpur Kepong Bhd Mutuagung Lestari

Regional Director Lead Auditor

Tan Kei Yoong Nanang Mualib

Date : 27/04/2012 Date : 27/04/2012


ASSESSMENT REPORT


Appendix 1. Peer Review Report

Name of Reviewer:

I. General comments on the evaluation

No Issues and Comments Clarification/explanation

TO BE FILLED IN BY MUTU

II. General comments on the inspection report



III. Specific comments on the proposed certification decision, including any reconditions, conditions or recommendations




ASSESSMENT REPORT


Appendix 2. Result of RSPO Committee - RSPO Certification

No Input and Responses


ASSESSMENT REPORT


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

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

Date of Contact

1. BKSDA Riau (Agency of Natural Resources conservation)

Jl. H.R Soebrantas Km 8,5 PO BOX 1048 Pekanbaru 28294

Tlp. +62-761-63135 Fax : +62-761-63135 E-mail : [email protected]

Letter 4 April 2012

2. Rector of Riau University Binawidya KM 12,5 Simpang Baru Pekanbaru 28293 riau

Telp. (0761) 63266 Letter 4 April 2012

3. Yayasan Pengembangan Masyarakat Riau

Jl. Tanjung Datuk no. 42D Pakanbaru Riau

Telp. 0761-25623 E-mail: [email protected]

Letter 4 April 2012

4. LSM Jikalahari (Local NGo) Jl. Angsa 1 No 4B Kampung Melayu Sukajadi, Pekanbaru 28000, Pekanbaru – Indonesia

Telp/Fax: (0761) 33979 Email : [email protected]

Consultation Meeting

23 April 2012

5. LSM Scale Up (Local NGo) Jalan Ketitiran No. 26, Kelurahan Kampung Melayu, Sukajadi, Pekanbaru, Riau

Telp / Faks : 0761-4883131 Email: [email protected]

Letter 4 April 2012

6. LSM Perkumpulan Elang (Local NGo)

Jl. Melati Indah No. 2B (Simp. 4 Delima-Lobak) Panam, Pekanbaru - Riau, Indonesia

Telp. (0761) 586802 Email : [email protected]

Letter 4 April 2012

7. Labour Department of Bengkalis District

Jln. Jendral Sudirman, Bengkalis

Letter 4 April 2012

8. National Land Agency of Bengkalis District.

Jln. Kartini No. 14, Bengkalis

Telp 0766-21070 Letter 4 April 2012

9. Environment Agency of Bengkalis District

Jln. Antara No.437, Bengkalis

Telp 0766-21026,21582 Letter 4 April 2012

10. Secretary of Muara Basung Village

Jl .L intas Pekanbaru-Pinggir

Meeting Consultation

4 April 2012

11. Head of Tengganau Village SimpanJepang-Pungut 081378578999 Meeting Consultation

4 April 2012

12. Secretary of Beringin Village Beringin KMS 4 Meeting Consultation

4 April 2012

13. Head of Balai Pungut Village Balai Pungut Pinggir 085265281938 Letter 4 April 2012

14. Head of Pinggir Village Jl. Lintas Pekanbaru-Pingggir

0811750597 Letter 4 April 2012

15. Secretary of Beringin Village Jl. Lintas Pekanbaru-Pingggir


4 April 2012

16. Head of Penaso Village Kuala Penaso 08126811589 Letter 4 April 2012

17. Head of Balai Raja Village Kantor Lurah Balai Raja 082174107766 Letter 4 April 2012

18. Head of Titian Antui Village Kantor Lurah Titian Antui 081371909146 Letter 4 April 2012


ASSESSMENT REPORT


19. Community Head of Dusun Jihat (Bosniar)

Jl. Desa Penaso Arah Beringin

082172691811 Meeting Consultation

4 April 2012

20. Community Head of Balai Pungut (Khalifah Darwis)

Balai Pungut-Pinggir. 081371565266 Meeting Consultation

4 April 2012

21. Community Head of Muara Basung (Bapak Sutarmo)

Jl .L intas Pekanbaru-Pinggir


4 April 2012

22. Head of SBSI (Labor Union) Kebun Mandau Selatan 081365671980 Meeting Consultation

4 April 2012

23. Head of SPSI (Labor Union) Kebun Mandau Utara 081362441217 Meeting Consultation

4 April 2012

24. Head of SBRI (Labor Union) KMS 1 Div.2 081378552865 Meeting Consultation

4 April 2012

25. Head of IKBR (Local NGo) Simpang Intan 081365662091 Meeting Consultation

4 April 2012

26. Head of Pinggir Sub district Kecamatan Pinggir kabupaten Bengkalis.

Letter 4 April 2012


ASSESSMENT REPORT


Appendix 4. Assessment Plan

DATE 23-28 April 2012

PLANNED TIME

ACTUAL DURATION

PROCESSES / CLAUSES TO BE AUDITED AUDITOR

23.04.2012 08.00-10.00 10.00-12.00

12.00-14.00 14.00-17.00

18.00-20.00 20.00-23.00

23.04.2012 08.00-10.00 10.00-12.00

12.00-14.00 14.00-17.00

18.00-20.00 20.00-23.00

Travelling Travelling from Jakarta to Pekanbaru Public Consultation with the NGO at Pekanbaru Lunch/Pray Travelling to PT Adei Plantation Travelling from Jakarta to Pekanbaru Travelling to PT Adei Plantation

MES/FAN MES/FAN

MES/FAN

NM NM

24.04.2012 07.00-08.00 08.00-12.00

12.00-14.00

14.00-17.00

24.04.2012 07.00-08.00 08.00-12.00

12.00-14.00

14.00-17.00

Opening Meeting Public Consultation Lunch/Pray Documentation Review e.g. Compliance with applicable laws and regulations (2.1) Documentation review e.g. Commitment to transparency (1.1;1.2) Basic Information, Commitment to long-term economic and financial viability (3.1) Use of appropriate best practices by growers and millers (4.5; 4.6) Use of appropriate best practices by growers and millers (4.1; 4.2; 4.3; 4.4) Responsible development of new plantings (7.4; 7.2)

All Team

ALL TEAM

NM

MES

FAN


ASSESSMENT REPORT



PLANNED TIME

ACTUAL DURATION


25.04.2012 08.00-11.00

12.00-14.00

14.00-17.00

25.04.2012 08.00-11.00

12.00-14.00

14.00-17.00

Documentation Review e.g. Compliance with applicable laws and regulations ( 2.2; 2.3), Use of Responsible consideration of employees and of individuals and communities affected by growers and mills (6.1; 6.2;6.3; 6.4) Environmental responsibility and conservation of natural resources and biodiversity (5.1; 5.5), Responsible development of new plantings (7.1; 7.3) Use of appropriate best practices by growers and millers (4.7) Lunch/Pray Responsible consideration of employees and of individuals and communities affected by growers and mills (6.4; 6.9; 6.10; 6.11) Environmental responsibility and conservation of natural resources and biodiversity (5.4; 5.6), Commitment to continuous improvement in key areas of activity (8.1) and SCCS Use of appropriate best practices by growers and millers (6.5; 6.6; 6.7), Commitment to continuous improvement in key areas of activity (8.1) Environmental responsibility and conservation of natural resources and biodiversity (5.3; 5.4; 5.5) Responsible development of new plantings (7.7), Commitment to continuous improvement in key areas of activity (8.1)

NM

FAN

MES

NM

MES

FAN

MM

26.04.2012

08.00-17.00

26.04.2012

08.00-17.00

Site Tour Operational control of PT Adei Plantation (4.1; 4.2; 4.3; 4.4; 4.6; 4.7; 4.8; 5.2; 5.5; 6.1; 6.2; 6.3; 6.4; 6.5; 6.6; 6.7; 6.8; 6.9; 6.9; 6.10; 6.11): HCV area, Stakeholder meeting/interview at village A, B, C, etc. Estate workshop, warehouse, safety (EPR), manuring, spraying, harvesting. Nursery, Land Preparation, land application, Water and Land Conservation. Mill of PT Adei Plantation (4.1;4.4;4.7; 5.3; 5.4;5.6): weighting of fresh fruit bunch (FFB), grading areas, loading ramp, sterilizer, clarifier, pressing areas, boilers, CPO storage, drainages, safety (EPR), liquid waste pond, workshop, and warehouse, and Supply Chain implementation.

NM

MES

FAN

MES


ASSESSMENT REPORT



PLANNED TIME

ACTUAL DURATION


27.04.2012

08.00-12.00

12.00-14.00

14.00-17.00

27.04.2012

08.00-12.00

12.00-14.00

14.00-17.00

Preparing CAR Lunch/Pray Closing Meeting at Estate Office

ALL TEAM

28.04.2012

08.00-12.00

28.04.2012

08.00-12.00

Travelling to Jakarta ALL TEAM


ASSESSMENT REPORT


Annex 5. Glossary

EIA : Environmental Impact Analysis

PPE : Personal Protective Equipment

B3 : Hazardous Waste

BOD : Biological Oxygen Demand

BPN : National Land Agency

CITES : Convention On International Trade Endanger Species

COD : Chemical Oxygen Demand

CPO : Crude Palm Oil

CSR/CD : Corporate Social Responsibility/ Community Development

FFB : Fresh Fruit Bunches

FIRST AID : First Aid

HCV : High Conservation Value

HGU : Land Exploitation Rights

HIRAC : Hazard Identification Risk Assessment Control

IPM : Integrated Pest Management

JAMSOSTEK : Jaminan Sosial Tenaga Kerja (Social Security Plan for Workers)

OHS : Occupational Health & Safety

KMS : Kebun Mandau Selatan (Estate Name)

KMU : Kebun Mandau Mandau (Estate Name)

NGO : Non-Governmental Organization

P2K3 : Committee for Occupational Health and Safety Development

PK : Palm Kernel

POM : Palm Oil Mill

POME : Palm Oil Mill Effluent

RKL : Environmental Management Plan

RPL : Environmental Monitoring Plan

S1 : Surveillance 1

SOP : Standard Operating Procedures

ST1 : Stage 1

ST2 : Stage 2 (Main Assessment)

UMR : Regional Minimum Wage

UU : Laws