stage 1 [ ] stage2 - roundtable on sustainable palm oil · ibnu satria prabudi (auditor). 4. octo...

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

Rountable on Sustainable Palm Oil Certification

[ ] Stage 1 [ ] Stage2 [√] Surveillance

Plantation Manager/Owner : PT RAMAJAYA PRAMUKTI – IVOMAS TUNGGAL

Mill and Plantation Name : Ramarama POM dan Ramarama Estate (PT Ramajaya Pramukti)

Location : Viilage of Petapahan, Sub-district of Tapung, District of Kampar, Province of Riau, INDONESIA

Certificate Code : MUTU-RSPO/010

Date of certificate issue : January, 12nd 2012

Expiry date of certificate : January, 12nd 2017

Assessment Date

Report Finalization Date

PT Mutuagung Lestari Auditor

Checked By Approved By

ST-2 04-07, 12/July/2011 12/August/2011

Aryo Gustomo Nanang Mualib Ibnu Satria. P

Octo H.P.N Nainggolan

Taufik Margani

Tony Arifiarachman

ASA-01 31 Oct – 03 Nop’12 February, 16th 2012

Taufik Margani; Ibnu Satria Prabudi;

Naila karima; Bukti Bagja

Tony Arrifiachman

Mutuagung Lestari • Raya Bogor Km 33,5 Nomor 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 Secretariat Approved by RSPO Secretariat on Approved by CB on

20 February 2013

19 December 2012

mailto:[email protected]

http://www.mutucertification.com/


ASSESSMENT REPORT

SPO – 4006a.4 i Prepared by Mutuagung Lestari for PT. Ramajaya Pramukti – Rama Rama POM

TABLE OF CONTENT Page

Figure

Location Map of PT RAMAJAYA PRAMUKTI 1

Operation Map of PT RAMAJAYA PRAMUKTI (Rama Rama Estate) 2

1.0 SCOPE OF CERTIFICATION

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Locations of Plantations, Mill and Hectare Statements 3

1.5 Description of Supply Base 4

1.6 Cycles and Planting year 5

1.7 Tonnage Certified Product 5

1.8 Other Certifications 6

1.9 Time Bound Plans for Other Management Units 6

2.0 ASSESSMENT PROCESS

2.1 Certification Body 7

2.2 Lead Auditor and Auditor Team 7

2.3 Assessment Methodology, Progress, and Site Visit 8

2.4 Stakeholder Consultation and List of Stakeholder Contacted 9

2.5 Next visitation 9

3.0 ASSESSMENT RESULT

3.1 Summary of Assessment Report of the RSPO Certification 10

3.2 Summary of Assessment Report of Supply Chain 39

3.3 Checklist Conformity of Certificate and Logo Use 43

3.4 Summary of Time Bound Plan Verification of the RSPO Certification 44

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

45

3.6 Summary of Arising Issues from Public, Organization and Auditor Response 67

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings 71

ANNEXES

1 List of Stakeholder Contacted in the RSPO Certification Process 72

2 Audit Plan 73

3 Glossary 74


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SPO – 4006a.4 Page 1 Prepared by Mutuagung Lestari for PT. Ramajaya Pramukti – Rama Rama POM

Figure 1. Location Map of PT. RAMAJAYA PRAMUKTI


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Figure 2. Operation Map of PT RAMAJAYA PRAMUKTI (Rama Rama Estate)


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1.0

SCOPE OF CERTIFICATION

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

1.2 Organization Information

1.2.1 Company Name IVO MAS TUNGGAL

1.2.2 Contact person Ismu Zulfikar

1.2.3 Business address

Head Office: Plaza BII Tower 2, 30th Floor JL. MH Thamrin No 51 Kav 22 Jakarta 10350 Indonesia Site: Petapahan Village, Tapung Sub-district, Kampar District.

1.2.4 Telephone (+62-21) 318 1388

1.2.5 Fax (+62-21) 318 1389

1.2.6 E-mail [email protected]

1.2.7 Website www.smart-tbk.com

1.2.8 Type of enterprise Private

1.2.9 Application information completed by duly authorized representative

Ismu Zulfikar (Head of Environmental Departement)

1.2.10 RSPO member registration June, 17th 2008

1.3 Type of Assessment

1.3.1 Certification scope Palm Oil Mill and Estate

1.3.2 Type certificate Single

1.3.3 Names of company covered in this certificate PT. RAMAJAYA PRAMUKTI

1.3.4 Number of management unit 1 (one) unit POM (Ramarama Mill) which receives FFB Supply from Ramarama Estate

1.4 Location of Estate, Mill and Hectare Statements

1.4.1 Location of Estate

Name of Estate Location

GPS Reference

Latitude Longitude

Ramarama Estate Sub.district of Tapung, District of Kampar, Province of Riau

00 33' 06.12” N 1010 06' 49.57” E

1.4.2 Location of Mill

Name of Mill Location

GPS Reference

Latitude Longitude

Ramarama Mill Sub.district of Tapung, District of Kampar, Province of Riau

00 32' 00.58” N 1010 04' 34.97” E

http://www.smart-tbk.com/


ASSESSMENT REPORT


1.4.3 Maps Figure 1 & 2

1.4.4 Country Indonesia

1.4.5 Region Southeast Asia

1.4.6 Village/Sub-district/District/Province Village of Petapahan, Sub.district of Tapung, District of Kampar, Province of Riau

1.4.7.1 Private

1.4.7.2 State 4,087.16 Ha

- Ramarama Estate 2,191.49 Ha *)

- Ramarama Estate 1,844.07 Ha **)

- Ramarama Estate 51.60 Ha ***)

*)

**)

***)

Based on Land Title Certificate No. 03 year1994 Based on Land Title Certificate No. 149 tyear 1997 Based on Land Title Certificate No. 05 year 1998

1.4.7.3 Community

1.4.8 Description of Land Use

Total areal 4,082.11 Ha

Mature area 3,876.40 Ha

Immature area - Ha

Mill and housing 49.30 Ha

Infrastucture (nursery, roads, etc) 151.32 Ha

Replanting Program - Ha

Occupation - Ha

High Conservation Value 189.36 Ha

1.5 Description of Supply Base

1.5.1 Estate

Name of Estate

Total Area (Ha)

Planted Area (Ha)

FFB (tonnes/yeaer)

Yield (tonnes/ha/year)

Supplied to Mill

FFB (tonnes/yeaer)

%

Ramarama Estate 4,082.11 3,876.40 121,200.59 31.27 121,200.59 36.66

TOTAL 4,082.11 3,876.40 121,200.59 31.27 121,200.59 36.66

Source: Estate data production period on Oktober 2011 – September 2012

1.5.2 Smallholder Scheme and Another Source

Smallholder Scheme Member(s) Location

Total Area (Ha)

FFB Production

(tonnes/year)

Supplied to Mill

FFB (tonnes/yeaer)

%

Amarta Jaya Plasma (AJYP) *)

- Sub-district of Tapung

- 136,464.33 136,464.33 41.27


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Ramarama Plasma (RRMA)

- Sub-district of Tapung

- 22,199.73 22,199.73 6.71

Sungai Tapung Plasma (STPA) *) -

Sub-district of Tapung

- 26,055.93 26,055.93 7.88

Another source 6

Sub-district of Tapung

- 24,724.51 24,724.51 7.48

TOTAL - - - 209,444.5 209,444.5 63.34

*) Amarta Jaya Plasma and Sungai Tapung Plasma have had approved by RSPO and CB for Scheme Smallholder Certification on Dec, 12th 2012

Source: FFB Received Data Ramarama POM Period on Oktober 2011 – September 2012

1.5.3 Palm Oil Mill Description

Name of

Mill Capacity

(tonnes/hour)

FFB Processed

(tonnes/year)

CPO PK PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Ramarama Mill

60 330,645 65,164.98 19.7 17,486.59 5.3 36,962.88 42.93

Source: Rama Rama POM data Period on Oktober 2011 – September 2012

1.5.4 Type of Product FFB/CPO/PK /PKO

1.6 Planting Year and Cycles

1.6.1 Age profile of planted palms

Planting Year

Hectarage (Ha)

Ramarama Estate Total

1991 643.06 643.06

1992 1.551.81 1.551.81

1993 47.02 47.02

1996 1,206.31 1,206.31

1997 383.07 383.07

2002 45.13 45.13

TOTAL 3,876.40 3,876.40

1.6.2 Area restocked by replanting after 2005 - Ha

1.6.3 Cycles 25 Year (s)

1.7 Tonnage Certified Product

1.7.1 Annual Actual Claims of Certified Product

FFB Production 121,200.59 Tonnes/year

CPO Production 23,889.48 Tonnes/year

Palm Kernel (PK) Production 6,410.58 Tonnes/year

Palm Kernel Oil (PKO) Production 13,550.59 Tonnes/year


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1.7.2 FFB Certified Claim Production

Name of Estate (s) Total Area

(Ha) Planted Area

(Ha) FFB Production

(tonnes/year) Yield

(tonnes/year)

Ramarama Estate 4,082.11 3,876.40 121,854.00 31.43

Scheme Smallholder *) 10,011.00 10,011.00 170,646.27 16.23

TOTAL 14,093.11 13,887.40 292,500.27 31.43

*) Amarta Jaya Plasma and Sungai Tapung Plasma have had approved by RSPO and CB for Scheme Smallholder Certification on Dec, 12th 2012

Source : Processed Data Projection Prodution on November 2012 – October 2013

1.7.3 Certified Production of Palm Oil Product Claim

Name of

Mill Capacity

(tonnes/hour)

FFB Processed

(tonnes/year)

CPO Palm Kernel PKO

Out put (ton)

Extraction (%)

Out put (ton)

Extraction (%)

Out put (ton)

Extraction (%)

RRMM 60 292,500.27 58,500 20 14,625 5 122,850 42

Source : Processed Data Projection Prodution on November 2012 – October 2013

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 None

1.8.2 OHSAS 18001:2007 None

1.8.3 HACCP None

1.8.4 Other (s) - Rountable on Sustainable Palm Oil oleh Mutucertification International (MUTU-RSPO/010 expiry date until 12 Januari 2017).

- ISCC (International Sustainablity and Carbon Certification) since 3 Februari 2012 by GUTCert.

- Certificates Gold Flag of SMK3 from PT Sucofindo since May 4, 2010 (had 3rd periods)

1.9 Time Bound Plan for Other Management Units

IVO MAS TUNGGAL has committed to making the time bound plan for the overall of another unit that is under management in applying the standard of the P & C or obtain RSPO certification and audit team has been considering this plan in accordance with the RSPO Certification System for Partial Certification. The development and follow-up of this plan will be verified and reported on an annual routine visit.


ASSESSMENT REPORT


2.0

ASSESSMENT PROCESS

2.1

Certification Body

PT Mutuagung Lestari Jl. Raya Bogor Km 33,5 No. 19, Cimanggis – Depok 16953 Telp. +62-21-8740202, Fax +62-21-87740745/46 Website: www.mutucertification.com

Email : [email protected] Approved by RSPO Secretariat on June 2008

2.2 Lead Auditor and Auditor Team

2.2.1 Auditor Team

ST2

1. Aryo Gustomo (Lead Auditor). 2. Nanang Mualib (Auditor). 3. Ibnu Satria Prabudi (Auditor). 4. Octo Hombar P. N Nainggolan (Auditor).

ASA-01 1. Taufik Margani (Witness Lead Auditor). Bachelor of Science in Forestry, majoring in Forest Management. Specialist in Ecology and Environmental. He has led several audits for Sustainable Forest Management in Indonesia (under LEI- Indonesian Ecolabel Institute and FSC- Forest Stewardship Council) and he is a Lead Auditor for FSC chain of custody and Forest Management. Other experience: He is IRCA Lead auditor IRCA registered for Environment Management System and Quality Management System. Since 1999 he has been working for independent certification body and has conducted Environment Management System audits in Indonesia and Malaysia. Currently he is the General Manager of Management System Certification.

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

3. Ibnu Satria Prabudi (Auditor). Bachelor of Agriculture Majoring in Agro-technology, Agriculture Faculty of Instiper Yogyakarta. Currently he has been working with an independent certification agency as an auditor. Training he has followed are: Lead Auditor RSPO, Auditor ISPO, Lead Auditor ISO 9001;2008, Awarness HACCP certification, Awarness SQMS Mc Donald, In House Training Green House Gass, and he has engaged on the field test of ISPO standard and then has conducted several audit for sustainable palm oil certification as an Auditor. In this activity, he has assessed for best practices aspect and environment.

4. Naila Karima (Auditor). Bachelor of Public Health, Department of Occupational Safety and Health. Faculty of Public Health, University of Indonesia she attended training of understanding the RSPO certification system and Lead Auditor Training of ISPO. Besides certified Integrated Management System (Health and Safety Management System OHSAS 18001:2007 Occupational, Environmental ISO 14001:2004, ISO 9001:2008 Quality). She is currently working on an independent certification body. In this activity, she has assessed of OHS system aspect.

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT


5. Bukti Bagja (Auditor). Master of Science in the field of Environmental Sciences, University of Indonesia. Training he has followed are: awarness of RSPO certification system. He has followed several activities GAP Analysis of the RSPO Principles and Criteria implementation in several oil palm plantations in Indonesia as assessor. Besides that he is also involved in several assessments HCV / HCV as an assessor with the specifications in the field of GIS (mapping). He has expertise in mapping such as ArcGIS, MapInfo, Global Mapper, ER Mapper, Erdas Imagine. In this activity, he has assessed for environment aspect and management of waste.

Curriculum Vitae (CV) of the auditor team available at Mutuagung Lestari’s office

2.3

Assessment Methodology, Progress, and Site Visit

2.3.1 Assessment Methodology

ASA-01 The assessment was conducted in three methods: (1) Document Review, aiming to observe the sufficiency of types or substances from required documents; (2) Interview, aiming to obtain more detailed information and cross check the information; and (3) Field Visitation, aiming to observe directly the sufficiency of implementation on site. The scope of the certification activity is 1 (one) Mill (Ramarama Mill) with 1 Estate for supply base of FFB namely Ramarama Estate (RRME). In assessing the audit team using the formula 0.8 √y to determine the focus of the estate sampling assessment. Based on the formula auditing team determines RRME for the estate sampling.

2.3.2

Estimate of person days to implement assessment

ST2 Number of auditors : 4 persons Number of days for ST-2 at site : 4 days Number of working days for ST-2 at site : 16 Maiin days

ASA-01 Number of auditors : 4 persons Number of days for ASA-01 at site : 4 days Number of working days for ASA-01 at site : 16 Main days

2.3.3

Detail of Assessment Process

ASA-01 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the Ramajaya Pramukti (RJP) 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 Some directions for improvement of the results Annual Surveillance-1 delivered by the auditor MAL to the manager and the results are the subject of verification at the next assessment phase (Surveillance-2). The assessment processes please find Appendix 2. Improvement of findings from Main Assessment findings were observed by auditors at this first surveillance assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of Surveillance report.

2.3.4 Sampling Location of Assessment

ASA-01 The sampling locations which selected by Audit Team based on : 1. Number of sites visited, which is determined by the formula 0.8 √ y. 2. The sites selected represent each of operational working area. 3. The consideration of issues arising from the results of public consultations and document review activity that is fundamental

and crucial. The sites visited are completely presented as follows:


ASSESSMENT REPORT


Location 1 - Block D26 RRME. The audit team conducted observation related to the management of areas with a certain slope, installation of soil erosion rate poles and other conservation efforts.

Location 2 - Blok B34 RRME. The audit team conducted observation related to maintaining and improving soil fertility (empty bunch applications).

Location 3 – HGU Pole No. 16-19 RRME. The audit team conducted observation related to the maintenance company boundaries clearly demarcated and maintained.

Location 4 - Kayu Aro Village. The audit team conducted observation related the company’s relationship with community around the estate and Mill, chance of vacancy for villagers and the company’s relationship with the plasma farmers.

Location 5 – KUD Mekar Jaya Sei Lembu Village. The audit team conducted observation related to the company's relationship with KUD, FFB payments for each period etc.

Location 5 – Block D30 Div I RRME. The audit team conducted observation related to the harvest, K3 implementation in the workplace, wages, premiums (incentives), and facilities and infrastructure provided by the company.

Location 6 – Block C18 Div I RRME. The audit team conducted observation related to spraying activities, implementation of OHS at work area, remuneration, facilities and infrastructure provided by the company, the training has been given by the company and implementation of IPM.

Location 7 - Workshop RRME. The audit team conducted observation related to the implementation of OHS in the work area, and fire-fighting infrastructure.

Location 8 – RRME Hazardous Waste Storage. The audit team conducted observation related to the waste management, OHS implementation and hazardous waste balance.

Location 9 – Public Service (For example: housing, children care place and Clever Home). The audit team conducted observation related to public services for workers.

Location 10 – Riparian of Jernih and Petapahan River. The audit team conducted observation related to the HCV 4.1 management (riparian areas).

Location 11 - Blok C30 Div. IV RRME. The audit team conducted observation related to the HCV 1.2 management (installation of Sign Board etc).

Location 12 - Rama-Rama Mill. The audit team conducted observation related to the operational of Mill, OHS Implementation, and Fire facilities, First Aid, Storage of Hazardous Waste, Workshop and Hazardous Storage.

2.4

Stakeholder Consultation and List of Stakeholder Contacted

2.4.1 Summary of Public Consultation Process

Stakeholder public consultation was done in three 2 methods : (1) Public announcement in the RSPO website (www.rspo.org) minimum 30 days before ASA-01 conducted. (2) Conduct visits and interviews with stakeholders located in Kampar District and community. Public consultation

conducted on Novemberr, 05th 2012 (for stakeholders from relevant agencies) and November, 02nd 2012 (for the stakeholders of the community and workers). A number of verbal inputs from stakeholders both positively and negatively received by the audit team as a material consideration in the assessment of surveillance 1.

2.4.2 The contacted list of stakeholders

See annex 2

2.5

Next visitation

The next visit (Surveillance 2) will be determined one (1) year later after ASA-01 conducted.

http://www.rspo.org/


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3.0. ASSESSMENT RESULT 3.1. Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted The Annual Surveillance Assessment 1 (ASA-01) to PT. Ramajaya Pramukti (RJP)

with the scope consist one (1) POM and one (1) Estate. MUTUAGUNG LESTARI stated that PT. RJP has fulfillment of RSPO

Standard National Interpretation RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of

Indonesia - RSPO INA-NIWG, May 2008. MUTUAGUNG LESTARI recommended of PT. ITH for RSPO Certificate was

maintained.

Ref Std. VERIFICATION RESULT OF MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

1.1 Oil palm growers and millers provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages & forms to allow for effective participation in decision making.

The company keeps an SOP regarding information distribution, which is stated in the SOP of Communication and Consultation (SOP/SPO/SMART/LH-19), dated 1 July 2010. The company has consistently been keeping records on every inquiry and distribution of information by compiling them in two different logbooks; “Communication Book”, which keeps records on every inquiry received, and “Information Book” that keeps all outgoing information. For example:

- A record of information (letter) sent to the Labour Agency of Kampar District dated 13 October 2012, in which the Quarterly Report of P2K3 (Guiding Committee of Occupational Health & Safety) was enclosed.

- A record of the response to request for assistance filed by the community (Tae Kwon Do Club of Tapung Subdistrict), which was received on 1 June 2012, followed up by 5 July 2012, and put into action on 30 June 2012.

Regarding the document’s validity period (retention time), it is specified in the SOP of Document Control and Document Validity Period (SOP/RJP/Dok) dated 5 February 2010 as follows: a. Validity period of an SOP is 3 years. b. Retention time for a document is 5 years. c. According to information from the management, all documents related to licenses, regulations, and company’s legal

matters are to be kept for as long as such documents are valid.

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.

RJP has specified that there are 13 types of documents that have been made accessible for the public / stakeholders. They are as listed below:

- The number of employees and the list of employee’s basic wages.

- The list of employees and their Taxpayer Registration Numbers (NPWP), and the information related to Land and Building Tax (PBB).

- Payment of regional taxes/levies

- Documents of Environmental Impact Assessment (EIA), Environmental Management Plan/Environmental Monitoring Plan (RKL/RPL), and LA License.


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- Deed of establishment and changes of the company, data of area, production, and fertilizer application.

- Proof of land ownership (Land Use Title – HGU, Building Use Title – HGB, etc.).

- Reports on the identification of HCV (High Conservation Value).

- Reports on the SIA (Social Impact Assessment).

- Documentation of social activities (CSR – Corporate Social Responsibilities).

- Reports of occupational accidents.

- Reports of P2K3 (Guiding Committee of Occupational Health & Safety).

- Reports of the implementation of RKL/RPL (Environmental Management Plan/Environmental Monitoring Plan). - Reports of Log Book / Balance Sheet of Hazardous Waste.


PRINCIPLE #2 COMPLYING WITH APPLICABLE LAWS AND REGULATION.

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

The company has consistently been putting a number of efforts to comply with the applicable regulations in relation with the activities carried out in the plantations and the mills. For example:

− Obtaining the Land Use Title (HGU) certificate in compliance with the requirements specified in the Statute 18 Year 2004 regarding plantations.

− Setting up a 50-meter wide delineation of the conserved area on riparian, in accordance with Presidential Decree No 32/1990 regarding protected areas.

− Obtaining the license for hazardous waste temporary warehouse inside the mill area, in accordance with the Government Regulation No. 18/1999 regarding Hazardous Waste Management.

− Conducting the river water quality analysis, in compliance with the Government Regulation No. 82/2001 regarding Water Quality Management and Water Pollution Control.

− Compiling the reports of environment management activities, in compliance with the Government Regulation No. 27/2012 article 53 regarding Environmental License.

− Conducting the water analysis of palm oil mill effluent discharged to the land, an activity done in compliance with the Decree of Environmental Ministry no. 29/2003.

− Complying with the Regulation of Governor of Riau No. 48 year 2011 regarding Provincial Minimum Wage (UMP) for 12 Districts in Riau Province for year 2012.

− Not employing minors, to comply with the Statute No. 13/2003 regarding Manpower/Employment; Statute No 01/2000 regarding Authorization of IL Convention No. 182 regarding Violations and Immediate Action for the Elimination of the Worst Forms of Children Employment.

− Conducting a regular health check for the employees, in compliance with the Statute No. 01/1970 regarding Occupational Safety.

− Providing a training program for forklift and conveying operators, in compliance with the Regulation of Labor Ministry No. 09/2012 regarding Forklift and Conveying Operators and Officers. There are currently 16 operators holding the Operator License (SIO) issued by relevant institutions.

The company has already set up a mechanism for evaluating the compliance with the laws and regulations pertaining to oil palm plantation management specified under an SOP of Regulations and Other Requirements (SOP/SPO/SMART/LH-03), which were issued by ENVD (Environment Department) on 1 July 2010. It is clarified in the aforementioned SOP that the evaluation of the compliance with the regulation is to be conducted on a 6-month basis. In adhering to this, RJP has conducted the required evaluation and has already submitted the evaluation data of the following subject matters; HCV (High Conservation Value) (most recent evaluation was in July 2012), Labor/Manpower (most recent evaluation was in October 2012), Environment (most recent data was from January 2012 evaluation), Licensing (most recent data was from October


ASSESSMENT REPORT


2012 evaluation), and OHS (September 2012). However, there are still a number of other regulations that have not been updated due to several adjustments/changes made. For example: 1. Regulation of Agriculture Ministry No. 07 year 2007 which was replaced by the Regulation of Agriculture Ministry No. 24

year 2011 regarding Terms and Procedures of Pesticides Registration. 2. Government Regulation No. 18 year 1999 which was revised and issued under Government Regulation No. 85 year 1999

regarding Revision of Government Regulation No. 18 year 1999 on Hazardous Waste Management. 3. Regulation of Labor Ministry No. 15 year 2008 article 3 regarding First Aid Emergency. The company has specified the types of laws and regulations that must be met by plantation companies. The following types of regulations are those categorized by RJP:

- Regulations related to HCV (7 related regulations)

- Regulations related to Labor (18 related regulations)

- Regulations related to Environment (26 related regulations)

- Regulations related to Licensing (11 related regulations) - Regulations related to OHS (40 related regulations)

Minor 2.1.4 Status: See OFI-01.

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

There are no changes made to the legal documents related to the land acquisition and land exploitation of PT. RJP. RJP has also secured the documents of land acquisition and land exploitation from relevant agencies, such as:

Decree of Release of Forest Areas, issued by the Forestry Ministry, No. 248/Kpts-II/1991 6 May 1991.

Certificate of Land Use Title (HGU), which consists of: 1. Certificate of Land Use Title (HGU) No. 03 dated 28 September 1994, which is valid until 30 January 2089. 2. Certificate of Land Use Title (HGU) No. 149 dated January 30, 2001, which is valid until 30 January 2096. 3. Certificate of Land Use Title (HGU) No. 05 dated March 17, 1998, which is valid until 17 March 2083.

To ensure that the Land Use Title (HGU) granted by the state is being well managed, the company has set up the Boundaries Pole Maintenance Program, which contains the HGU (Land Use Title) poles maintenance program covering: (1) Checklist activity, performed on a monthly basis; (2) Poles Repair, performed incidentally, in the event when there is any damage to the block poles; (3) Painting, performed incidentally, when the HGU poles repair is completed and if there is any washed out paint; (4) Cleaning Poles Location, performed on a 4-month basis. Based on the document study, it can be determined that there are 108 pieces of boundaries poles planted on the working area of PT. RJP, which consist of 76 pieces of poles that belong to National Land Agency (BPN), 12 pieces of additional poles that belong to RJP, another 10 pieces that belong to National Land Agency (BPN) (no name) and there is 1 pole that belongs to National Coordinating Agency for Surveys and Mapping (Bakorsurtanal). Based on the field visit to 16-19 boundaries poles that belong to National Land Agency (BPN), it is confirmed that all the poles are in well-maintained condition. Consistent with the results of the audit of ST1 and S2, until the time of the surveillance 1 took place, there were no indications of disputes/conflicts between companies and communities around PT. RJP. To ensure this, the audit team has conducted some cross checking by visiting the Head of Kayu Aro Village, whose area is one of the youngest scheme smallholders villages around the plantation. Based on interviews with the Head of Kayu Aro Village, no significant cases of dispute were discovered, in fact, there was a tendency to a mutual relationship between the company and the community. There is a joint forum between the company, Village Cooperative Unit (KUD), and village authorities, which is conducted every month as a


ASSESSMENT REPORT


forum to resolve all issues that may arise. The fact that they have an assistant mentor and a supervisor stationed in each cooperative has become an indicator of good relations between the company and the community. The company is able to show a reasonably comprehensive document of Land Acquisition in the company's legal document, which contains the Waiver Statement Letter, the Minutes of Land Acquisition and the receipts of land compensation received by each compensation recipient.


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

There are no traditional rights in the area of operations of PT. RJP (Ramarama Estate). Area of PT. RJP is a land managed with the PIR-Trans scheme in 1993.


PRINCIPLE #3 COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL FEASIBILITY

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

The documents about the company's long-term plans have not changed since the Stage-2. As for the long-term plan document, it is a document of the company for the period of 2010 to 2017. The document has been approved by top management (CEO PSM V – Mr. Franciscus Costan). The document consists of the production forecasts, FFB cost, Mill cost, palm product cost/kg, recapitulation of production plant (OER and KER), and other financial parameters. Legalization of the document has been made by the CEO of PSM 5 (Franciscus Costan). This document covers among others: production forecasts, FFB cost, Mill cost, palm product cost/kg, recapitulation of production plant (OER and KER), and other financial parameters. The company has in fact prepared a replanting plan that was to be done in 2017. However since it was being reviewed, the initial 2017 replanting plan was then revised and decided to be carried out in 2016. This change of plan was a form of an annual study conducted by the Company in relation with their replanting activities. The study itself was done based on the criteria of age of the plants, production estimates, forecasts of prices, cost and plants’ height (in accordance with one of the criteria for replanting based on the available SOP).


PRINCIPLE #4 USE OF APPROPRIATE BEST PRACTICES BY GROWER AND MILLERS

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

There are no changes made to the operational SOP of the mill and the plantation. Ramarama Estate still refers to the procedure of Technical Guidelines for Oil Palm Cultivation, which was compiled by MCAR Team (Management Committee Agronomy and Research), authorized on 1 May 2007. As for the operational of the mill, Ramarama POM is still referring to the procedure of Palm Oil Mill Processing of PT. SMART Tbk. In addition to operational procedures, RRMM has compiled the procedures related to product traceability (Supply Chain), in the form of SOP Supply Chain (PT RJP-RRMM/SOP/01), ratified on 2 January 2012 (which was a revision of previously existing procedures). This procedure describes the system of production process of palm oil and kernel with Mass Balance Supply Chain system. The entire SOP is available in each


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management unit and based on field monitoring, the SOP has been well implemented. This is proven by the results of interviews with workers in the field. RJP is consistently monitoring the operations of the plantation and the mill at least once in every year. The activities carried out are as follow:

- Agronomy Audit & Advisory (AAA). The scope of AAA activities covers the following: Areal statement, Human Resources, Rainfall, Production, Production Quality, Harvesting Standard, Mature Plants Maintenance, Fertilization, Heavy Equipment, Trucks, Repair Stations, and Warehouse, Plantation Safety, and Production Costs. These activities are performed at least once every year by the Internal Audit Department. The last assessment was conducted on 17 to 20 February 2012.

- Operations Internal Audit (OIA). The scope of OIA assessment covers the following: administration of cash, bank notes and memorials, inventory, plants and plantation area maintenance, crops production, remuneration and personnel. This activity is performed at least once a year by Internal Audit Department. The last assessment was performed on 30 April – 7 May 2012.

- Mill Audit Advisory (MAA). The scope of the MAA activities covers the following: Production, Processing Plan, Power and Consumable Usage, Process Control, Quality Control, Maintenance, Safety Equipment, Grading, and Laboratory. This activity is performed at least once a year by Internal Audit Department. The last assessment was performed on 25 - 28 April 2012.

- Internal Audit related to the application of the principles and criteria of the RSPO (Roundtable of Sustainable Palm Oil). The last assessment was conducted on 6 to 10 August 2012. RJP also conducts management review on the implementation of the principles and criteria of the RSPO. Management Review was conducted on 10 October 2012. This review was conducted to see the progress status of the audit findings.

The operational activities of plantation and mill are always well recorded and well documented by the RJP. The followings are those of operational records of the plantation and the mill:

- Record results of operations in Ramarama Mill in the form of Monthly Processing Report that includes: FFB Intake Statement, Production Record, statistical summary of production and extraction, production stock, a summary of monthly reports, monthly laboratory reports, water treatment & Boiler chemical, efficiency of ripple mill, staff & SKU labor, etc.

- Record of plantation operations that include: record of empty bunch applications (an application map is also available), record of Effluent application (an application map is also available), record of monthly production of the plantation and plantation production charts per month.


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

The company keeps a record of soil analysis for each estate, which was conducted on a regular basis (based on a statement from one of the staff of SMARTRI - Smart Research Institute, soil analysis is performed once every 5 years. This soil analysis activity is conducted in order to get a more effective and better monitoring of soil fertility. The recording of soil analysis includes an analysis of the physical fertility (texture) and chemical properties such as pH, organic-C, total N, P and K reserve elements, available P elements, Cation Exchange Capacity (CEC), etc. Soil sampling was carried out by referring to the existing SOP of SSU (Soil Sampling Unit) Soil Sampling Work Instruction, which specifies that 1 soil sample (soil sampling units) is to represent 60 ha of land. From this initial soil sample unit, soil sampling is carried out in 3 sample points, at which every point consists of 15-point samples. In addition to that, the company also continues to conduct the leaf analysis once a year. This analysis is conducted to recommend the measured amount of the fertilization dosage. RJP has consistently been doing a number of activities to maintain and increase soil fertility, such as fertilization activities,


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empty fruit bunch applications, as well as land application in Ramarama Estate. The entire record of these activities is well documented. For example:

- Record of empty bunch application in 2012 at Block B34 Ramarama Estate, with a dose of 40 tons / ha / year (for bumpy areas) and 60 tons / ha / year (for flat areas). Based on the field visit results, these empty bunch application blocks have been applied.

- Record on activities of fertilization at Ramarama Estate. For example, the activity of UREA fertilizing at a dose of 1.5 kg / tree with an area of 46.97 Ha (131 Plant Main / ha). Actual fertilization is as much as 9.22 tons.


4.3 Practices minimise and control erosion and degradation of soils.

The company keeps a map of soil that as an integral part of the Land Suitability Classes documents. The documents contain information about land suitability classes, slopes, texture, limiting factors, size, and classification of soil. This map of the soil has also been equipped with a scale of 1: 50,000 and its legend. For example, in Ramarama Estate SPT 5: the soil type is Typic Dystrudepts; with 3-9% slopes; depths (solum) > 120 cm; drainage level is good; land suitability class is S3 (corresponds to its marginal); limiting factor is its fertility; size of land is 2,162.30 ha (53% of the total area). Based on the results of land suitability classes’ identification, there is no peat land area in Ramarama Estate. The strategy for managing the sloping area done by company has been adjusted to the existing SOP of Preparation Before Planting (SMA/MCAR/03/05-07), referring to Table 3.1.1 Classification of slope and terraces needs. Based on the SOP, land with a > 40% slope is not recommended for planting. The company has installed the poles for soil erosion rates. The installation of the poles has been done at 9 points in the block. The monitoring of the soil erosion rate poles is done every month. RJP has also made an evaluation of the monitoring results of the rate of soil erosion that occurred. For example: Monitoring of Soil Erosion measurements that have been made until the period of October 2012 showed that soil erosion events did not exceed the limits as required in Government Regulation (PP) No. 150 year 2000. In addition, RJP has also put up the Silt-Pit, Individual Terraces, and done the stacking of midribs on a side the terrace. The results of the field visits in Block D-26 have seen that the erosion rate poles have been installed in 9 points. Based on the observation conducted by the auditor team, RJP has also done the stacking of midribs on a side (edge) the terrace, put up the Silt-Pit, etc. The company has consistently put together a program of road maintenance in 2012. RJP planned to conduct 10-day road maintenance for one division for every 1 month. For example: The realization for the maintenance of 31,000 meters of roads in the Division II Ramarama Estate. Based on the classification of land suitability classes, it is discovered that the work areas in Ramarama Estate are mostly sandy loam-textured soil. Based on these results, the Company has been making efforts by making empty bunch applications on areas identified under category of sandy soil and low organic material content. For example: Empty bunch applications in blocks B29 - B34. The application was applied on these blocks because the area is categorized as having an undulating topography. The empty bunch application was done with a dose of 40 tons / ha / year (for undulating areas) and 60 tons / ha / year (for flat areas).


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

ST1 and ST2 have confirmed that the company has made a number of efforts to protect the streams, the wetlands and the riparians, through the management policy in the form of a Circular Letter issued by the Vice President of Agronomy PSM 5 (Letter No: 002/SE-VPA-5/RSPO / BWL/01/2010), dated 5 January 2010, regarding the Management of the Areas Around the Watershed. The Letter contains the technical arrangements for the cultivation of plants found in the watershed, which are 5 oil


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palm trees, on the left and right of the river. These technical arrangements cover the following:

(1) Treatment of plants is not using chemicals (chemist), but is done manually;

(2) Fertilization is not done mechanically (aircraft or emdeks), but is done manually;

(3) Plants with erosion deterrent ability are to be planted on landslide-prone cliffs.

Below is the list of proof of the policy implementation:

- Recapitulation of the number of plantings (clumps) in six riparians, until November 2012 is presented as follows:

No Types of Plants S. Tapung S. Jernih S. Petapahan S. Kuok S. Kenantan S. Lembu

1 Vertifier 107 240 273 40 60 90

2 Guatemala 90 347 660 80 100 145 3 Bamboo 0 0 95 0 0 0

- Field visits made to the riparian areas of Sungai Jernih and Sungai Petapahan have indicated that the company has done the planting of Guatemala trees and Vertifer Grass.

The company has also been consistently monitoring the water quality in a number of places in accordance with applicable regulations, i.e.:

- Monitoring of water quality in wells located around residential for plantation workers and mill workers, is conducted periodically on a 6-month basis. The most recent results of the water quality monitoring (June 2012) that are available and can be exposed are the results of measurement conducted by the City Health Office of Pekanbaru on 7 June 2012. Samples were taken at the wells around residential for mill employees and around residential for plantation employees, from which one sample was taken each. Parameters of the water measured include physics properties (odor, turbidity,

taste, temperature, color, and TDS - Total Dissolved Solids), organic Chemical properties (KMnO4), inorganic Chemical properties (iron, hardness, chloride, etc.), and biological properties (bacteriological). The measurement results showed that all parameters measured were in accordance with the provisions of the quality standard threshold based on the Regulation of Health Ministry No. 416 of 1990.

- Monitoring of water quality at the Water Treatment Facility located in Palm Oil Mill. Water management programs were conducted by the Mill, which include the construction of water treatment to get clean water for the processing of FFB. There is a document that shows the monitoring of the volume of water used and the results of quality measurement of the water used for the processing of FFB.

- Monitoring of quality of surface water in the watershed that flows within a plantation (inlet and outlet). The monitoring was conducted in five creeks that flow in the plantation of Sungai Jernih, Sungai Petapahan, Sungai Kuok, Sungai Lembu, and Sungai Kenantan. The most recent measurement results shown are from the month of May 2012, by SMART Laboratory Research Institute in Kandis, Riau (accredited). The parameters measured were the chemical properties of water, which include: pH, TSS, TDS, DO, BOD5, COD, NO3, NO2, NH3, phosphor, Cu, Zn, Mn, Fe, Pb, Cd, B, Cl, SO4, O & G. The measurement results showed that a number of important parameters of river water, i.e.: DO, BOD, COD, have exceeded the quality standards threshold, both in the inlet and the outlet positions, as seen in the table below. This shows that the water in the river has been contaminated right from the upstream, even before it flowed into the plantation.

An additional measurement was conducted specifically for Sungai Kuok, in June 2012, carried out by an external laboratory, Laboratory of Technical Unit of Public Infrastructure Agency.

- The monitoring of water quality at monitoring wells deals with the application of liquid waste in the plantation (LA). Regarding the use of Palm Oil Mill Effluent for oil palm, the company has been monitoring the water quality at monitoring wells, which have been previously determined. There are four selected monitoring wells to monitor ground water quality, in its relation to the application of Palm Oil Mill Effluent (POME) in the plantation.

- The measurements are conducted regularly every 6 months by the laboratory of Public Infrastructure Agency of Riau Province. The parameters measured were: pH, BOD5, NO3, Cu, Zn, Cl, Pb, Cd, DO, NH3, SO4, COD, and temperature. The results of recent measurements available are the data from the first half of 2012, which in general indicate that the water quality at monitoring wells still meets the quality standard threshold, which is based on the Regulation of Health


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Ministry (Permenkes) No. 416/1990.

Consistent with the results of stage 2 audit, the company has also been monitoring the quality of effluent discharged into the Land Application site regularly every month. The full report for the first half of 2012 is available in the RKL-RPL (Environmental Management Plan – Environmental Monitoring Plan), equipped with document of monitoring / testing for the month of July, August, September, and October (as the report materials for the second half of 2012). The measurement of the quality of wastewater to be discharged to land application was carried out by the Laboratory of SMART Research Institute in Riau (accredited laboratory), for the following parameters: pH, TS, O & G, BOD5 (Biological Oxygen Demand 5), COD (Chemical Oxygen Demand), VFA, N, N, P, K, Mg, Ca, Cu, Zn, Pb, Cd, NH32, TSS. The following are the results of BOD measurements, and comparison to the threshold of the applicable quality standard. The results of the BOD measurement of effluent for Land Application during the last three months in Ramarama mill are as follows:

No Month BOD(mg/l) Quality Standard

Threshold (Reg. of Env. Min. no. 29/2003)

1 August 2012 4,950 5,000

2 September 2012 3,988 5,000

3 October 2012 3,607 5,000

Corresponds to the results of the stage 2 audit, the first surveillance has also pointed out that the monitoring of water usage for processing activities at the mill was conducted every day. The daily data was then being recapped into a one-month recap for reporting and analysis materials. During the document examination, the company was able to present the monitoring records of their monthly water consumption at the palm oil mill in the form of the Recapitulation Document of Water Consumption and Distribution for the Year of 2012, for Ramarama Mill, PT. RJP, for the period of January-September 2012. Based on the monitoring data, the water consumption for the mills was still below the budget that has been previously set, i.e.: The table of water consumption ratio to FFB tonnage for each month during 2012 in Ramarama Mill:

Water Consumption (M3/Ton FFB)

Jan Feb Mar Apr May Jun Jul Aug Sept

Actual 1.02 1.040 0.770 0.780 0.990 0.890 0.880 1.030 0.867

Budget 1.263 1.434 1.327 1.309 1.237 1.161 1.137 1.1 1.083

In addition, a number of currently on-going initiatives in order to save water consumption, as seen in the stage 2 audit, are still running, including: the dissemination for the efficient consumption of water, the recycle of water for cooling the turbine into the reservoir to be reused in the manufacturing process; the monitoring of water consumption every day / week / month, and the separate recapitulation of water consumption data for processing and for domestic.


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

Similar to the conditions at the time of Stage-2 assessment, RJP still using beneficial plants and owls as biological control agents. Beneficial plants and Owls are the alternative option in controlling pests and diseases of oil palm, which support the Integrated Pest Management program. Integrated Pest Management is done by minimizing the use of chemicals (herbicides and pesticides), and by prioritizing the use of biological control agents. The company has consistently been monitoring the area of IPM, by monitoring the planting and the maintenance of Turnera


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subulata and Antigonon leptosus. The planting of these Biological Control Agencies (APH) has complied with estate’s SOP, where the planting of biological control agency was conducted at six (6) points in each block, and the entire blocks in Ramarama estate have been planted by these beneficial plants. For example: APH Planting in Division II RRME in October 2012 (Budget: 769.59 Ha and Actual: 769.59 Ha); Owl Monitoring Report in October 2012 (253 total number of Bird Cages). RJP has conducted the training of IPM and spraying techniques (refreshment) for the spray workers, in RRME on 12 September 2012, at the junior high school building in Nagasakti Estate. RJP has consistently been taking records for the monitoring of the toxicity of pesticides. There are records of monitoring of pesticides in 2012. For example: Erkafuron 20 WG = 0.000000159 mg / ton FFB.


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 categorised as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.

At the time of surveillance-1, agrochemical materials used by Ramarama Estate were as follows: 1. Erkafuron. Registration No.: RI 2405/5-2006/T with Metylmetsulfuron as active ingredients. Active until 27 June 2011. 2. Rolixone. Registration Number: R.I 2467/5-2006/T with paraquat dichloride as active ingredients. Active until 27 June 2011. 3. Roll up, Registration Number: R.I 2133/4-2009/T with glyphosate as active ingredients. Active until 30 April 2014. Based on the Pesticide Handbook for the Agriculture and Forestry, issued by the Directorate General of Fertilizers & Pesticides, Directorate General of Agricultural Infrastructure & Facilities of Ministry of Agriculture of the Republic of Indonesia in 2011, it was revealed that all the types of pesticides used by PT. RJP have been registered and licensed. RJP is consistently monitoring the use of pesticides, with the recommended dose and rotation. For example: - Roll up; dose of 0.2421 liters / ha; active ingredient glyphosate; rotation 2 times / year; applied to an area of 3,876.40 ha. - Rolioxone; dose of 0.193 liters / ha; active ingredient paraquat; rotation 1 time / year; applied to an area of 3,876.40 ha. - Erkafuron; dose of 0.022 liters / ha; active ingredient metyl metsulfuron; rotation 2 times / year; applied to an area of

3,876.40 ha. The company has kept the documentation on the use of agrochemicals, which provides information on targeted species and the dose used in Ramarama Estate. For example: - Roll up; dose: 0.2421 liters / ha; active ingredient glyphosate; rotation 2 times / year; applied to an area of 3,876.40 ha.

Targeted weeds: narrow-leaved weeds. - Rolioxone; dose of 0.193 liters / ha; active ingredient paraquat; rotation 1 time / year; applied to an area of 3,876.40 ha.

Targeted weeds: broadleaf weeds and ferns. - Erkafuron; Dose: 0.022 liters / ha; active ingredient metyl metsulfuron; rotation 2 times / year; applied to an area of

3,876.40 ha. Target weeds: broadleaf and woody weeds. The Company has conducted training for spray workers, which includes materials on the handling of pesticides, spray equipment washing procedures and stockpiling of packaging. The training was attended by 37 participants. RJP has a procedure on waste management (including used chemical packaging waste), document number SOP/SPO/SMART/LH-09, dated 1 July 2010. It is described in the SOP that the waste management for used packagings of pesticides are to be returned to the suppliers. The company has been properly managing all the hazardous waste (including all used pesticides packaging), by storing them at Hazardous Waste Temporary Warehouse (TPS LB3), with a license obtained through the Decree of the Head of Environment Bodies of Kampar District (No: 660/BLH-WAS/15), dated 5 July 2010, which is valid for 5 years. RJP was also able to demonstrate proof of minutes of handover of used pesticide packaging


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to suppliers; Rolimex Nusamas Chemistry, dated 29 September 2012. There are 18 types of used packaging waste delivered to the supplier, i.e.: Roll-up jerry cans; 24 jerry cans of Rolixone; 2 cans of Starane; 167 cans of Erkafuron. RJP has been consistently reducing the use of paraquat from year to year. It is proven by the chart data on the use of paraquat in RRME estate. It can be seen in the below chart that the use of paraquat in RRME estate has been decreasing from year to year. Please refer to the chart for the use of paraquat for 2009-2012: Based on Circular No. 001/SE-RC-KAMPAR/07/2010, a regular health check consists of two types of examinations, i.e. a physical examination, and a special examination. The physical examination is conducted once a year, to check the Height, Weight, Blood Pressure, and other health complaints. While the special examination is conducted 2 times a year, i.e. in June and December, with several specific aspects being examined, including audiometric checks for employees working in the locations with noise level exceeding the Threshold Limit Value (TLV), and for employees who come into contact with chemicals. These types of examination include: blood, urine, cholinesterase and Thorax. This special examination is carried out by a third party; the Thamrin Clinical Laboratory. Periodic health checks in Rama-Rama Estate include: - Physical examination, on 3 April 2012, to 46 spray and fertilizer workers. - Special examination, on 28 June 2012, to 67 workers. The result indicated that one worker was tested with above normal

level of cholinesterase. And upon the doctor’s recommendation, this worker, Elfitri Joni (Head of Warehouse), was then transferred to Division 02 for a position of Maintenance Supervisor, with the Decree of Transfer No. 029/RRME-MT/10/12 dated 10 October 2012.

The results of field visits and interviews with spray workers in RRME have confirmed that all female workers have understood and complied with the company's policy, regarding the prohibition for any pregnant or breastfeeding female workers to work in any chemicals-related type of tasks/works. The audit team also conducted interviews with the estate’s doctor (dr. Mahadi Damanik), who explained that the medical examinations for the spray workers have been conducted periodically on a 4-month basis. He also added that, during those regular health checks, particularly for the female spray workers, their pregnancy conditions and breastfeeding status were also being examined.


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

There is an Occupational Health and Safety Policy of Rama-Rama Mill which was authorized on 2 July 2012, and there is also an OHS Policy of Rama-Rama Estate, which was authorized on 12 January 2012. The results of the interviews with SPO PIC in Mill and Estate stated that the dissemination of OHS Policy in Rama-Rama Mill and Rama-Rama Estate was done by using the notice board and verbally, which was done on morning circle (briefing before the start of the work). The results of the field visit to Rama-Rama Mill revealed that the Boiler operators working in the areas with noise levels exceeding Threshold Limit Value (TLV) were wearing cotton to earplugs, not proper earplugs. This prompted PT. RJP to re-evaluate and to perform another monitoring activity on the use of PPE for employees, especially those bearing high-risk potential.

0

500

1000

1500

2000

2500

Year 2009 Year 2010 Year 2011 Year 2012

The Use of Paraquat in RRME during 2009-2012


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In 2012, the structure of Guiding Committee of Occupational Safety & Health (P2K3) of Rama-Rama Mill and Rama-Rama Estate was revised due to a change of personnel within the management of P2K3. In relation to that, the company has filed a new structure of Guiding Committee of Occupational Safety & Health (P2K3) to the Social and Labor Agency of Kampar District, and it has been approved through:

- Decree of Head of Social and Labor Agency of Kampar District, No. KPTS.700/DSTK-PHI/2012/25 on P2K3 of Rama-Rama Mill in PT. RJP, which was authorized on 12 October 2012, with Surya Darma as the chairman, and M. Muhariadi as secretary (OHS Expert Certificate No. 1025/PK3/AJ/2012, valid until 22 March 2015)

- Decree of Head of Social and Labor Agency of Kampar District, No. KPTS.700/DSTK-PHI/2012/24, on P2K3 of Rama-Rama Estate in PT. RJP, which was authorized on 10 September 2012, with Evian Indra as Chairman, and Wildam Mayoga as secretary (OHS Expert Certificate No. 10.6149/PK3/AJ/2010, valid until 10 December 2013).

Both P2K3 of Rama-Rama Mill and P2K3 of Rama-Rama Estate have consistently conducted their regular meetings once a month, such as: - A regular meeting conducted by P2K3 of Rama-Rama Mill on 8 October 2012, whose agenda included the discussion on

activity evaluation, preparations for RSPO Audit Team visits, cleaning of factory area, the condition of Hazardous Waste warehouse, medical examination reports, and control of manufacturing processes.

- A regular meeting conducted by P2K3 of Rama-Rama Estate on 3 October 2012, which among others discussed the issue on how the bags for First Aid Kit did not meet the standardized size, which resulted in their inability to contain all necessary medications.

P2K3 activity report is quarterly submitted to Social and Labor Agency of Kampar District, which shall include: - P2K3 Quarterly Reports (July-September 2012) from Rama-Rama Mill, based on Goods Dispatch Memo, No.

046/RRMM/10/2012, submitted on 6 October 2012. - P2K3 Quarterly Reports (July-September 2012) from Rama-Rama Estate, based on the Minutes of P2K3 Reports

Handover, submitted on 13 October 2012. There is a Receipt of contribution fee, No. D0012100944, bearing the name of PT. RJP (POM), for the payment of Labour Social Assurance (Jamsostek) of the employees for the month of September 2012, for a total of IDR 18,682,581 (with details: Labour Social Assurance payments for 156 SKU employees for a total of IDR 15,112,919; Labour Social Assurance payment for 30 BHL employees for a total of IDR 496,020, and payment of wage increase for January and February 2012, for 150 SKU employees for a total of IDR 3,073,642). Based on Circular Letter No. 001/SE-RC-KAMPAR/07/2010, a regular health check consists of two types of examinations, i.e. a physical examination, and a special examination. The physical examination is conducted once a year, to check the Height, Weight, Blood Pressure, and other health complaints. While the special examination is conducted 2 times a year, i.e. in June and December, with several specific aspects being examined, including audiometric checks for employees working in the locations with noise level exceeding the Threshold Limit Value (TLV), and for employees who come into contact with chemicals. These types of examination include: blood, urine, cholinesterase and Thorax. This special examination is carried out by a third party; the Thamrin Clinical Laboratory. Regular health checks in Rama-Rama Mill include: - Physical health examination for Mill workers was scheduled in January-December 2012, in order not to interfere with the

production. There were approximately 19 Mill workers being examined each month during that period. The results of the physical examination from January to October 2012 showed there were some health concerns coming from a number of employees, to which the doctor gave advices or treatments as needed.

- The results of audiometric examination in June 2012 to 24 workers (Boiler Station, Engine Room, Press, Nut & Kernel, and Clarification) suggested that in general, the health condition of both ears of each employee being examined were within the normal range.

Please refer to Criterion 4.6 for details on the health examination carried out for the employees at the Estate. There is a SOP for Hazard Source Identification, Assessment and Risk Control (HIRARC) (document no. PT. RJP-RRMM0K/SOP/03), which was authorized on 2 July 2012. There is also Hazard Identification and Risk Assessment (HIRA) of


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Rama-Rama Mill, for the period of January to December 2012, which includes: Security, Weightbridge, FFB Grading, Loading Ramp, Transfer Carriage, Sterilizer, Hoisting Crane, Tippler, Thresher, Press, clarification, Boiler, Kernel, Engine Room, Water Treatment, Effluent, Workshop, Warehouse, Archive / File Storage Room, Warehouse for Hazardous chemicals and hazardous waste, Diesel Fuel Tank, Laboratory, Office, CPO Despatch, machine units installation, fire fighting, and vehicle traffic. There is a Hazard Identification and Risk Assessment (HIRA) of Rama-Rama Estate for the period of January to December 2012, which includes: cleaning ditches, manual maintenance, chemical storage, maintenance of circle and harvesting path, fertilizing, weeds eradication, control of pests, weeds and diseases, road maintenance, land application, harvesting, storage (fertilizer, diesel fuel, chemical, spare parts, oil), emplacement maintenance, workshops, infrastructure, polyclinic, water pump engine room, housing, estate office, washrooms for caps and used sacks. There is hazard identification, risk assessment and risk control (HIRARC) for the water pump and water tank. The results of field observations indicated that the handrail, cover wrapper on the stairs, as well as warnings for routine maintenance of water tanks have been installed, to comply with risk control. However, the hazard identification and risk assessment (HIRA) of Rama-Rama Estate, such as that in Land Application and Diesel Fuel Tank, showed that the impact was seen more on the environment (spillage, soil contamination), rather than on people / workers. This allowed PT. RJP to revisit the hazard identification and risk assessment on all work activities, both in the Mill and in the Estate. There are records of trainings which were based on the work program of OHS Management System (SMK3) and Kernel Crushing Plants (KCP) of Rama-Rama Mill in 2012, among others: - Training for First Aid Emergency (P3K), held on 14-15 September 2012, - Training for Fire extinguishers, held on 22 September 2012, - Training for Material Safety Data Sheet (MSDS) and Hazardous Waste handling, held on 29 September 2012 and 2 October 2012, by PT. Inter Chemicals Perkasa, as chemical products vendor for PT. RJP. There are records of trainings which were based on the work program of OHS Management System (SMK3) of Rama-Rama Estate in 2012, among others: - Training for First Aid Emergency (P3K), given by the Company’s Doctors, conducted on 14-15 September 2012, and - Training for Integrated Pest Management (IPM), on 13 September 2012. Ansori (helper operator) has attended the training on OHS for Steam Turbine operators, proven by Operator License (SIO), by the name of Ansori, SIO No. 11.152/OPD/KK-M/XI/2011, valid until 26 October 2015. There is an Emergency Response Team, which was authorized by the Social and Labour Agency (Social Agency and Labor) Kampar regency; for Ramarama Mill, on October 12, 2012, and for Ramarama Estate, on 10 September 2012. The structure of this Emergency Response Team consists of: Chairman, Deputy Administrator, Secretary, Assistant General Fire Extinguisher Team, Health Team, Security Team, Removal Team, Liaison Team, and Evacuation Team. Simulation for residential fire, field fire, and earthquake, conducted on 22 September 2012, at Pondok 2 Division 4/5, Naga Sakti Estate, with the following participants:

- RC / PC of Kampar Region, - Mill and Estate unit leaders of Kampar Region, - PIC of SPO and OHS (AK3) unit of Kampar Region, - SPO5 Coordinator at PSM5, - Emergency Response Team unit of Kampar Region.

This fire drill activity is a joint simulation of Kampar Region, which comprises of PT. RJP (Rama-Rama Mill, and Rama-Rama Estate), and PT. BWL (Nagasakti Mill, Nagasakti Estate, Nagamas Estate, Rama Bakti Estate, Kijang Mill, and Kijang Estate). Ajusar (process supervisor), has been certified Fire Fighting Officer from Labour Agency, under certificate number: 1724/Peran/K3-KEB/VI/2011-P, which is valid until 16 June 2014. Fire fighting facilities and infrastructure in the Rama-Rama Mill include: - 35 tubes of Fire Extinguishers (APAR) (3 foam tubes, 31 dry powder tubes, one CO2 tube) - 1 unit of Pillar Hydrant, and 9 units of Hydrant Boxes


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- Layout of the distribution of hydrants and fire extinguishers Fire fighting facilities and infrastructure in the Rama-Rama Estate include: - 45 tubes of dry powder Fire Extinguishers - 1 unit of extinguisher tank - 1 unit of pump machine - 1 unit of Hose and Nozzle - 4 units of Bakortiba Drums (sand, shovel, rag) - 5 units of hooked poles - Layout of the distribution of facilities and infrastructure for fire-fighting There are 10 units of First Aid Emergency kit (P3K) at Rama-Rama Mill in all operating units, i.e.: KCP Office, processing Mill, Mill Workshop, waste water pond, Water Treatment Plant (WTP), Hazardous Waste Warehouse, Central Warehouse, Laboratory, main office, and a security post. A field observation made to the Workshop has confirmed that the following items were available at the premise: First Aid Emergency kit, a monthly checklist, and a list of usage. There are 17 units of First Aid Emergency kit (P3K) at Rama-Rama Estate, such as in division office, workshops, hazardous waste warehouse, warehouses, as well as in public facilities such as Daycare, schools, etc. A regular equipment check of the First Aid Emergency kit is done on a monthly basis. For field operations, each Supervisor is equipped with a 38-set First Aid Kit. The field observation has confirmed that both Harvesting Supervisor and Spray Supervisor have been equipped with such kit, which is to be carried during operational activities. Moreover, the field observation made to the Mill and Estate also indicated that fire fighting facilities and infrastructures, as well as the First Aid Emergency kits / boxes, are all in good condition, and that a regular check is conducted on a monthly basis. All First Aid Emergency (P3K) officers have been licensed under the Regulation Of Labour Ministry (Permenaker) no. 15 year 2008. Two P3K Certificates from the Ministry of Manpower and Transmigration, by the name of Juniati Sagala (nurse) No. 510/P3K/VII/11 and by the name of Junaidi (Assistant Workshop) No. 512/P3K/VII/11 dated 8 July 2011 can serve as the proof sample of such license. An internal P3K training for Kampar Region (Rama-Rama Mill and Rama-Rama Estate) was conducted by the Company’s Doctor on 14-15 September 2012. The field visit has verified that all trained supervisors were already equipped with the P3K kit bags and a usage list. As for the usage list, it recorded that there were 2 cases of occupational accidents in October, and 1 case of occupational accidents in November 2012. The occupational accident monitoring conducted in Rama-Rama Mill during the period of 2012 suggested that there were zero number of occupational accidents during January – October 2012. As for the one conducted in Rama-Rama Estate for the same period, it recorded zero number during January – March 2012, 3 cases during April 2012, 2 cases during May 2012, and zero number during June – September 2012.

Major 4.7.1 Minor 4.7.3

Status: See OFI-02. Status: See OFI-03.

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

Implementation and realization of training programs in Rama-Rama Mill-KCP and Rama-Rama Estate in 2012 included the following: - Training for Fire-Extinguisher, held on 22 September 2012. - Training for Material Safety Data Sheet (MSDS) and hazardous Waste handling, held on 29 September 2012 and 2

October 2012 by PT. Inter Chemicals Perkasa as the chemicals supplier. - Training for P3K by the Company’s Doctor, conducted on 14-15 September 2012. - Training for HPT, held on 13 September 2012


ASSESSMENT REPORT


In addition, training for plasma farmers (Amarta Jaya Plasma) was held simultaneously with the training for HPT and Spray for the employees of Naga Mas Estate, which took place in NSAE Junior High School building on 13 September 2012. As for the use of trained contractors, RJP was able to demonstrate a Mutual Working Agreement (SPK) No. 003/RRME/01/2012-BGN, by the name of William (PT. Wilmar Pentarindo) for house construction works, stating that the second party is a company engaged in construction services, whose one of the activities / expertise is in housing constructions. Article 9 point 10 states that the First Party has the full authority to determine or suspend or cancel the payment of the work that does not meet the expected requirements, until the work is improved by the Second Party, so that the results are in accordance with the expected requirements, without any obligation to pay any compensation to the second party. The company shall evaluate the contractor’s performance when the work is completed, the example of such evaluation can be demonstrated by the availability of the Minutes of Examination for the Septic Tank Work Project, a total of 11 units, of which the results stated that the contractor has completed the works as requested, hence, the payment for it could be processed.


PRINCIPLE #5 ENVIROMENTAL RESPONSIBILITY AND NATURAL RESOURCES AND BIODIVERSITY.

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

Similar to Stage 1 and 2, RJP keeps the document of Environmental Impact Assessment, in the following forms: 1. Document of the Environmental Impact Assessment (EIA), which was composed in 1993 based on co-operation

between the company and PT. Indica Dharma Consultant, titled “Environmental Impact Assessment (EIA) of Oil Palm (PIR TRANS) and palm oil processing mill in Siak Hulu Subdistrict, Kampar District of Riau Province. EIA document was approved by Agriculture Ministry through a letter No. RC.220/497/B/III/1994 dated 18 March 1994, regarding Approval of PT. Ramajaya’s EIA. The scope of the study covered mills with a capacity of 60 tons / hour, and a 15,760 ha of plantation area, with the details of plantation land use (according to the EIA) as follows: - Core: 2,000 hectares - Plasma: 8,000 hectares - Swamp / Wetlands: 2,320 hectares - Emplacement: 400 hectares

2. Social impact assessments document, titled: Survey of Social, Economic, and Cultural Conditions, And Public Perception in Villages Around Estate / Mill of PT. Ramajaya Pramukti. The document was prepared in 2010 by the following internal personnel: Tomi Hendrartomo, Yosaphat Ardhilla R. and Nazlya Syahputri.

The results of the documents examination on the first surveillance activity revealed that the company has prepared the regular reports on the results of the monitoring and management of the environment, referring to the applicable provisions of laws and regulations in Indonesia. Such reports are as follow: 1. Reports on RKL-RPL shall be submitted to relevant agencies (Regional Environmental Bodies-BLHD) on a 6-month

basis. Reports on RKL-RPL for the first semester of 2012 were delivered on 27 August 2012 to the BLH Office of Kampar district, as seen on a receipt document shown by the company.

2. Reports on, Monitoring of the Implementation of the Liquid Waste Application in POM Ramarama period 1 2012 3. Environmental quarterly report of PT. Ramajaya Pramukti, POM Ramarama unit, for period III of 2012 4. Reports on the results of Hazardous Waste management (Balance Sheet and Log Book of Hazardous Waste) of PT.

Ramajaya Pramukti, period III of 2012, dated 1 November 2012. As stated in ST1 and ST2 audits, there were no changes in the mill’s capacity, from originally planned in the EIA document in 1993, i.e. 60 tons FFB / hour, with the realization of the current installed capacity.


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5.2 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.

As stated in the audit results of stage 2, the company has provided documents on Reports of Identification, Management and Monitoring Plan for High Conservation Value (HCV), which had been adapted to the HCV identification toolkit from May 2008. These documents were internally prepared (Environmental Department of PT. Smart Tbk.) by the drafting team, i.e. Mr. Norman Faried Mustakim (RSPO approved HCV assessor), Kusuma Widya Rochmah, Bambang Setyaji, Tomi Hendartomo, Nazlya Syahputri, and Firmansyah, and were approved in February 2011. The HCV document named 2 animal species that are included into endangered category; leopard cat (Macan Akar – Felis bengalensis) and white throated kingfisher (Cekakak Belukar - Halcyon smyrnensis). This HCV document analysis has been reviewed by an officer from the independent consultant (Mr. Dwi Rahman Muhtaman) in October 2010. From the attendance list included in HCV document, it could be seen that the public consultations have been conducted two times, on 28 and 29 July 2012. The document was also supplied with a map illustrating the identification results of HCV location. The dissemination for the employees has also been conducted during morning briefing, as indicated by the attendance list of the dissemination event, which was included in the HCV document. Consistent with both ST1 and ST2 audits, there were two species of protected animals found in the estate area; leopard cat (Macan Akar – Felis bengalensis), protected under Government Regulation No. 7 year 1999, and is included in Appendix II of CITES, and white throated kingfisher (Cekakak Belukar - Halcyon smyrnensis), protected under Government Regulation No. 7 year 1999. Report on HCV Identification also outlined the management measures to protect such species, through; a. Revegetation planning in the buffer area around riparian, when replanting the oil palm trees. b. Installation of a number of warning boards containing information on the preservation of the area. c. Operational reduction of the estates that surround the area. d. No activities using chemicals in riparian areas. e. Dissemination for the employees and the surrounding community on conservation of riparian areas. f. Installation of a number of warning boards containing information on the preservation of the species identified as

protected. g. Dissemination for the employees and the surrounding community on conservation of protected species.

As a follow up on the findings during ST2, the company has also planted perennial crops, that have a strong rooting system, i.e. bamboo plants, although still in limited quantities, at Sungai Petapahan (95 plants), by considering the characteristics of the soil and the needs to protect its riparian. Reports on the activities of planting and monitoring of bamboo plants are available and can be demonstrated (see indicator 4.4.1). It is suggested that the company expand the planting of hard crop trees across the entire riparians located in the estate area. The company is also likely to improve the performance of the conservation area management by planning a more systematic and measurable strategy, containing timeline, action description, constraints and necessary resources. Consistent with the results of ST2 audit, during surveillance 1 the company showed the document containing a record of the steps taken to protect endangered species, i.e.: a. Planting vertiver grass, Guatemala grass and bamboo trees in each location of riparian. The planting progress was

monitored in the monitoring tables, equipped with the minutes of the planting of erosion deterrent plants, and the Supervisor Activities Book (BKM). The monitoring of erosion deterrent plants was also included in the document of division working program (PKD) in each division, which was part of the annual budgeting system. This document contains a monthly recapitulation of the quantity of the seedlings of erosion deterrent plants.

b. A progress report on HCV area maintenance, equipped with maps and photographs.


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c. Schedules and Reports on realization of the HCV area patrol. d. Maintenance Report of the warning boards in HCV area. e. Reports on boundaries poles maintenance.

Consistent with ST2, surveillance 1 revealed that the company has made and installed a number of signboards explaining the types of protected animals (Leopard Cats and White Throated Kingfishers) living inside the estate areas. These signboards installations were carried out as a part of the implementation of HCV management plan, as well as serving as dissemination tools for the employees and the surrounding community. The company also keeps a map specifying the locations of those signboards within the estate. There are a total of 8 signboards throughout the estate areas that were specifically installed to display the warning on High Conservation Value (HCV) areas and on hunting prohibition. There are also a number of additional warnings on the hunting prohibition and deforestation at a number of locations. On-site random checks, as conducted in division 4 blocks C30, indicated that the signboards were in good condition and easy to understand. However, the signboards have not included the legal basis for the protection of these animals, and the threat of penalties if violated. HCV report also revealed that the presence of HCV areas has been disseminated to relevant parties, both internally and externally. Consistent with the results of ST1 and ST2 audits, the company has a sufficient number of trained employees in charge of the HCV management. It was carried out by Biodiversity Officer who was assigned specifically to monitor the biodiversity, apart from the officer for the field of environmental, social, and OHS. At the Head Office (HO) level, the support for on-site HCV management is the responsibility of the Department of Sustainability (led by Mr. Haskarlianus Pasang). In this Department, there is a Division of Health And Safety Environment (HSE), led by Mr. Ismu Zulfikar, in which there is a section of Biodiversity and Conservation (led by Mr. Norman Faried M). There are 7 officers assigned by B&C division to support the operational of on-site HCV management. As for the estate operational, there is one person in charge for HCV (Kemal Maulana), and one Supervisor (Sri Widodo). All of the aforementioned officers hold official assignment letters from the Management. The PIC for HCV and the Supervisor were appointed through an Assignment Letter SEM RRME dated 1 June 2012. A number of trainings for these officers have been conducted by the company. In general, all officers at HO have received formal trainings on HCV. In November 2012, one of the officers, Dede M. Nasir, was trained in Yogyakarta (a partnership between Tropenbosh and Instiper Yogyakarta), while a number of internal trainings for PIC and supervisors were conducted on the following dates: 23 June 2012 (9 participants), 3 June 2012 (3 participants), 26 May 2011 (5 participants), 28 October 2010 (9 participants). Documentations on the training are available in the form of attendance list, training materials, and photo documentation.

Major 5.2.1 Status: See OFI-04.

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

Consistent with ST-1, the company keeps a record of waste sources identification in the estate areas and mill areas, in the following forms: - EIA document, compiled in 1993, which states a number of types of waste that could potentially occur from plantation and

mill activities, particularly liquid waste and gas. - Documents on the List of Estate and Mill Environmental Aspects, in the form of a matrix that contains the description of

activities in estate and mill, as well as the potential impact of the waste, and the impacts occurred. Document on the matrix of environmental aspects consists of: aspect codes, environmental aspects that arise, potential impacts, related fields, and related procedures. However, in the above two documents of identification of waste (EIA and aspect), there has been no separation of Hazardous Waste, besides being equipped with estimated volume of waste generated, this suggested that the company holds the potential to improve its performance by stating the estimated volume of waste generated.

- Document on Waste Management Activities in Palm Oil Mill, PT. Ramajaya Pramukti - Ramarama Mill, Semester 1/2010. This document includes: type of aspects, Regulations referred, management programs, policies applied, and all related documents. The types of waste identified in the mill area include: Domestic Solid and Liquid Waste, Mill Solid and Liquid Waste, Mill Gas Waste, Hazardous Waste, Noises from Vibration and from Lighting, and Waste from Used Materials. A


ASSESSMENT REPORT


management plan/program has been prepared for each of those identified wastes. Consistent with St1 and ST2, the following list comprises the available documents of waste management plan:

Waste management plan in the RKL-RPL, compiled at the beginning of plantation activities. This RKL-RPL document contains waste management plan focusing on the liquid waste from palm oil mill.

Document of the List of Estate Environmental Aspects, consists of: aspect codes, environmental aspects that arise, potential impacts, related fields, and related procedures. This document lists more types of identified wastes and their management action plans.

Document of the List of Mill Environmental Aspects of Ramarama Mills, consists of: aspect codes, environmental aspects that arise, potential impacts, related fields, and related procedures. This document lists more types of identified wastes and their management action plans. However, in the RKL-RPL documents and environmental aspect document, both from the mill and from the estate, there has been no estimated volume of waste generated; this suggested that the company holds the potential to improve its performance by stating the estimated volume of waste generated. Moreover, this environmental aspect document has not yet included the waste categorization based on its hazardous and toxic properties.

There are a number of Palm Oil Mill Waste Management Activities done in PT. Ramajaya Pramukti, as the implementation of the above mentioned plans, such as:

Management of solid waste from the mills, by utilizing the excess of fibers and shells for alternative fuel in operating the Boiler and Turbine, in order to efficiently use the fossil fuels. Solid waste in the form of empty bunch is applied to the estate as fertilizer.

Management of mill effluent, by utilizing it for land application system applied to the estate, and analyze the effluent samples on a regular basis.

Management of Hazardous Waste, by collecting and keeping them temporarily in a specific place, and by making Hazardous Waste Temporary Warehouse (TPS LB3), recording and delivering them to licensed Hazardous Waste collectors.

Consistent with ST1 and ST2, an additional note in surveillance 1 stated that the company keeps a document on Hazardous Waste management plan, in a form of the List of Estate Environmental Aspects, comprising: aspect codes, environmental aspects that arise, potential impacts, related fields, and related procedures. This document lists more types of identified wastes and their management action plans. However, in the above two documents of Hazardous Waste identification, there has been no estimated volume of Hazardous Waste generated; this suggested that the company holds the potential to improve its performance by stating the estimated volume of waste generated. Moreover, since the document has also put hazardous waste and non-hazardous waste in the same category, it is advisable to specify each into different category. Instructions for the disposal of Hazardous Waste, both hazardous waste and agrochemicals, are available in a more detailed SOP and has been approved as follows:

- SOP/SPO/SMART/LH-09,

- SOP/SPO/SMART/LH-11,

- SOP/SPO/SMART/LH-18 The company has also renewed its hazardous waste warehouse license, under the re-registration letter No. 660/BLH-WAS/ILB3.DU/19 dated 24 September 2012, and continued with the revision of license for longer retention period, which is 180 days; under the letter no. 660/BLH-WAS/ILB33.PWP/06 dated 24 September 2012. Consistent with ST 2 audit, the Company has conducted a waste monitoring, such as: - Monitoring of effluent application for Land Applications, done every day by recording it using the flow meter instrument

installed in the pump house at the IPAL pond (Wastewater Treatment Plant). Daily recording data was then recapitulated into monthly data. A 6-month basis report of this monitoring is periodically submitted to the relevant agencies.


ASSESSMENT REPORT


Data from last month showed the average daily effluent flow is 578 m3/day, while the volume of waste are as follow: Month Volume August 12,969 m3 September 13,869 m3 October 15,030 m3

- Monitoring of BOD (biological oxygen demand) of the effluent applied to the land, done every month by SMARTRI laboratory. The data from this BOD monitoring is reported to the relevant agencies every 3 months (see criteria 4 above, for the last three months of BOD data).

- Monitoring of Hazardous Waste, which is kept in a licensed Temporary Warehouse, is done every day. This daily report includes monthly logbook of Hazardous Waste and Hazardous Waste balance sheet. Furthermore, Hazardous Waste monitoring reports are submitted every 3 months to the relevant agencies. On every several periods (<6 months), this Hazardous Waste will be picked up by a licensed third party, i.e. PT. Binassamsurya Mandalaputra, as for the medical waste, it is distributed to the Regional General Hospital (RSUD) of Bangkinang. Based on the balance sheet Hazardous Waste for the period from July to September, the information is as follows: Types of waste volume Action

- Used Filters 22.8 kg distributed to third party for a quantity of 210 kg

- Used dustcloths 78 kg distributed to third party for a quantity of 72 kg

- Used lamps 4.5 kg distributed to third party for a quantity of 3 kg

- Used batteries 61 kg not yet distributed to third party

- Used oil 1,729 kg distributed to third party for a quantity of 968 kg

- Medical waste 36 kg distributed to third party for a quantity of 36 kg As for pesticides packaging, the company has made a special consultation with the Environmental Ministry on 13 April 2012, regarding the optimization process to eliminate the hazardous properties of the packaging waste, thus no need for the inclusion of pesticides packaging in the Hazardous Waste balance sheet. As a result, the company is authorized to perform the optimization (removal of hazardous and toxic contents through leaching) on the condition that the results are to be reported to the Ministry on a 6-month basis.

- Monitoring of solid waste (fibers and shells), which are collected to be used as boiler fuel (see criterion 5.4.1) - Monitoring of solid waste (empty bunch), to be applied in the estate.

Major 5.3.1 Major 5.3.2

Status: See OFI-05.

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

Consistent with the results of ST1 and ST2 audits, the company continues to use the shells and fibers as the renewable energy for boiler fuel. During surveillance 1, the company showed the monitoring document on the use of fibers and shells in FFB processing at the mill for the past four years (2009 – Sept 2012), as well as the analysis of diesel fuel saving generated from the use of this renewable energy. The following data is collected from the above monitoring document: Year Fibers Volume Shells Volume Diesel Fuel Savings (liter)

2009 36,266 tons 15,957 tons 1,651,638 2010 35,633 tons 15,678 tons 1,622,822 2011 36,657 tons 16,129 tons 1,669,475

2012 – sept 31,006 tons 13,642 tons 1,412,089


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Consistent with ST1 and ST2, the company has been monitoring the use of diesel fuel to ensure the efficiency in the company. For the estate, the average use of diesel fuel per month is 14 thousand liters. There is a graph chart included in the document to illustrate the declining trend in the use of diesel fuel in the estate. The following data is of the use of diesel fuel in the estate for the last three months:

Month Volume July 16,925 liters August 14,709 liters September 14,019 liters

Based on the data of diesel fuel monthly usage, the company has also analyzed the ratio of fuel per ton FFB per each year. The monitoring document has indicated a declining trend of diesel fuel consumption for the past three years. The ratio of monthly diesel fuel usage per ton FFB in the estate during 2012 was 1.6 liters/ton FFB. In addition to that of the estate, the company also keeps the document showing the diesel fuel usage in the mill. The monthly average use of diesel fuel in the mill is 29,245 thousand liters. Below is the data of diesel fuel consumption for the past three months:

Month Volume July 39,885 liters August 30,813 liters

September 22,265 liters


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.

RJP is still referring to the SOP on land clearing with no burning, which can be found in the "Management Committee Agronomy and Research" about land clearing and cultivation (SMA/MCAR/05/05-07), Chapter V, related to zero burning policy. The company is always committed to zero burning during land clearing, and based on the results of document study and field visit, there is no new land clearing area. Based on the existing SOP of land clearing and planting, the company conducted this activity through various stages, such as: preparation of spatial planning, path blocking, imas (cutting small logs diameter <15 cm), uprooting, mechanical stacking, stacking and chopping. Regarding emergency response procedures for field fires, RJP is still referring to SOP of Field Fires Handling In Estate Area (SOP / RJP / KBR), which was ratified on 5 February 2010. Emergency Response Team of the Rama-Rama Estate was authorized by the Social and Labour Agency of Kampar District on 10 September 2012, with the following structure: Chairman, Deputy Administrator, Secretary, Assistant General Fire Extinguisher Team, Health Team, Security Team, Removal Team, Liaison Team, and Evacuation Team. Simulation for Field Fire was conducted on 22 September 2012, at Pondok 2 Division 4/5, Naga Sakti Estate, with the following participants: RC / PC of Kampar Region, Mill and Estate unit leaders of Kampar Region, PIC of SPO and OHS (AK3) units of Kampar Region, SPO5 Coordinator at PSM5, and Emergency Response Team unit of Kampar Region. This fire drill activity is a joint simulation of Kampar Region, which comprises of PT. RJP (Rama-Rama Mill, and Rama-Rama Estate), and PT. BWL (Nagasakti Mill, Nagasakti Estate, Nagamas Estate, Rama Bakti Estate, Kijang Mill, and Kijang Estate). Fire fighting facilities and infrastructure in the Rama-Rama Estate include: - 45 tubes of dry powder Fire Extinguishers - 1 unit of extinguisher tank - 1 unit of pump machine - 1 unit of Hose and Nozzle - 4 units of Bakortiba Drums (sand, shovel, rag)


ASSESSMENT REPORT


- 5 units of hooked poles - Layout of the distribution of facilities and infrastructure for fire-fighting The result of field visit to Central Workshop of Rama-Rama Estate indicated that the fire fighting facilities are equipped with pumps, hoses and nozzles, and that they are all in good condition. A monthly equipment checklist is also conducted for that matter.


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

Consistent with Stage-1 and Stage-2 audits, the company is proven to have gathered the identification results showing the sources of pollution and emission at the mill, which are specified in the following documents:

- Environmental aspects of the activities taking place in Rama-Rama Mills POM, which is a matrix containing the detailed description of activities at the mills and any potential waste/emission generated from such activities.

- Waste Management Activities at the Palm Oil Mill, during semester II/2011, of Rama of Rama Mill. The types of sources of pollution and factory emissions, including: gas waste from the mills which comes from the boiler chimney and generator engine; noise, vibration, and lighting coming from workshops at the factory.

Consistent with the results of Stage-1 and Stage 2, the company has also made some innovations to reduce the boiler emissions, by using the Balancing Fuel Control method, which means, at the boiler station, the fuel feeds (fiber and shells) are done automatically by observing the composition of the fuel volume going into the boiler chamber; thus avoiding excessive pressure on the boiler. The field visit revealed that the boiler station has been equipped with a Dust Collector to trap and collect the dust before exiting the boiler chimney. Dust collector maintenance is done every month. The company also showed the documentation of fuel usage monitoring at the mill and at the estate, as an effort to reduce the emissions. For future plan, the company has started rolling out a suggestion to use the methane trapping technology to reduce emissions from Palm Oil Mill Effluent. Consistent with the result in ST1 and ST2, the company has a document that shows the monitoring and management of POME (Palm Oil Mill Effluent). There is a POME layout document (design), which explains that there are 8 wastewater ponds at Rama-Rama mills, each with a capacity of 15,000 m3, and equipped with controlling receptacle, and pumping house. Monitoring of the waste quality is done on a regular basis (monthly), to assess the quality of effluent to be applied to estate area (land application). In addition, the flow of waste is also measured using a flow meter every day. The data of effluent quality can be seen in indicator 4.4.3 above, while the daily flow data is available in indicator 5.3.4. As a guide to POME management, the company has an SOP for it, which is Final Effluent management description (Chapter IX), in the book of SOP for Palm Oil Processing Mill PT. Smart (4th revision). The SOP describes the definition, work plans, operating procedures, analysis of effluent, effluent testing methods, and effluent monitoring.


PRINSIP #6 RESPONSIBLE CONSIDERATIONS OF EMPLOYEES AND INDIVIDUALS AND COMMUNITIES AFFECTED BY GROWERS 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 impacts are made, implemented and monitored to demonstrate continuous improvement.


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Consistent with the results of stage 1 and stage 2 audits, the company keeps a Document of the Survey of Social, Economy and Cultural Conditions and Community Perception in the villages around the plantations / Mills of PT. Ramajaya Pramukti. This document was used as the Social Impact Assessment document, which was prepared internally by the company (Mr. Tomi Hendartomo, Yosaphat Ardhilla Renato and Nazlya Syahputri) in November 2010. SIA Analysis is also equipped with a document on social impact management plan, which outlines the types of Social Impact, Source of impact, Impact Management Measures, management parameters, management location, period / schedule of management, the details of the activities of management and the related parties. In addition to the SIA document, the EIA document also serves as guidelines for the identification of positive and negative impacts of plantation activity, which was compiled in 1993.

Following up the results of stage 2 audits, verification on the realization of social impact management in accordance with the plan (SIA), which was prepared beforehand, was done in surveillance 1. In the documents examination, the company presented both the SOP used to analyze the social impacts, and SOP used for the management of social impacts, as outlined in: SOP No. SOP/SPO/SMART/LH-13 the Social Impact Assessment (SIA), and SOP No. SOP/SPO/SMART/LH-12 on Management and Monitoring of the Social Impacts.

SIA analysis document displays three types of negative social impacts identified and will be managed, i.e.:

- Damaged road, which will be repaired using heavy equipment (evaluated every year). The exact locations of repaired roads were not specifically mentioned in the review, which made it become more of a response/reaction to a request.

- Waste and pollution of air, which will be monitored every 6 months by measuring the ambient air quality.

- The inequality in employee recruitment in certain villages, which was identified during SIA study, such as: Pantai Cermin Village, Sei Lembu Village, Makmur Village, Sibuak Village, dan Cinta Damai Village. This issue will be addressed with an improved distribution of job information, and the development of local businesses.

In accordance with SOP on the management and monitoring of the social impacts that have been established, the company has prepared a report on the monitoring and management of social impacts. The report for the period of November 2010 - November 2011 can be demonstrated in the form of a document titled: Report of the Implementation of Social Impact Management of PT. Ramajaya Pramukti, Kampar district, Riau Province. This report lists down the following social impact prevention activities:

- Repairing the damaged roads around the estate, which was conducted 3 times. The company contributed in this activity by sending heavy equipment (grader), and their operating costs, in April 2012 (Kenantan Village), September 2012 (Kayu Aro Village), and in November 2012 (Kayu Aro Village). However, this type of execution method for road repair is still regarded as solely reaction to a request for assistance, instead of as a well-planned activity. Therefore, it is recommended that the maintenance of the roads around the estate be done in a better-planned program.

- Monitoring of air and water quality around the estate (ambient), conducted by Laboratory of Ministry of Manpower, OHS Center in Medan. The results of monitoring during the first half of 2012 can be demonstrated, and all parameters of ambient air, was under threshold quality standard.

- Estate Manager was establishing the communication through a letter with the authorities of the villages around the estate, especially those identified to be affected, about the need for labor recruitment. Following are several files of such letters addressed to heads of the village, i.e.: Koto Aman Village Head (30 September 2010), Pante Cermin Village Head (22 July 2011), and Sibuak Village Head (22 July 2011), as well as to the other villages.

As the execution, 2011 has shown an increase in the number of labors from the surrounding villages, i.e.: 51 people working at RRME estate, 9 people in RBKE estate, and 13 people in Rama-Rama mills. However, there has been no labor recruited from affected villages, as the labors available in those villages still do not meet the company's requirements.

Consistent with the explanation previously found in indicator 5.3.1, that since 1993 there have been numerous changes made to the specifications of plantation activities in PT. RJP, i.e.:

- The core areas have from 2,000 to 6,978.02 hectares, which is divided into RRME (4,082 hectares) and RBKE (2,895.91 hectares). However, in contrast to RRME estate, RBKE estate does not supply fruits to Rama-rama mills.


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Moreover, RBKE Estate location is far separated, thus not included in the scope of EIA study in 1993. A separate environmental document for these areas was already prepared in 2011, titled "Environmental Evaluation Document (DELH)", and served as the environmental document for RBKE area.

- The scheme smallholders area has also expanded into 10,011 hectares, which is divided into “Amarta Jaya Plasma" (4,426 hectares), and "Sungai Tapung Plasma" (5,585 hectares). Amarta Jaya Plasma’s location was included in the EIA study in 1993, while Sungai Tapung plasma was not (included in the EIA study area), therefore a separate environmental document was then prepared specifically for this area in 2011, titled "Environmental Evaluation Document (DELH)", which served as the environmental document for the scheme smallholders area, along with DELH document for the core area.

Responding to these changes and to the release of Statute 32 of 2009 on the Protection and Management of the Environment, the step taken by the company was consulting local authorities and the Ministry of Environment about the changes in 2011. As a follow up, the company has compiled a separate environmental document in 2011, which included the addition of RBKE area and Sungai Tapung Plasma, titled "Environmental Evaluation Document of Oil Palm Plantation with smallholders and Scheme smallholders in Rama Bakti Estate covering an area of 8,488.79 hectares (HGU = 2,903.79, and scheme smallholders 5,585 hectares)”. This document includes the environmental and social analysis to respond to any changes in specifications of plantation activities. Studies on DELH were reinforced by the company’s initiatives to perform a Social Impact Assessment (SIA) in 2010.

The document examination done during surveillance-1 stage has revealed that the company has a regularly scheduled report on the monitoring and management of the environment, such as:

1. Reports on RKL-RPL, which are submitted to relevant agencies (Regional Environmental Bodies-BLHD) on a 6-month basis. Reports on RKL-RPL for the first semester of 2012 were delivered on 27 August 2012 to the BLH Office of Kampar district, as seen on a receipt shown by the company.

2. Monitoring Reports on the Implementation of the POM Effluent Application in Ramarama during period 1 of 2012.

3. Environmental quarterly report of PT. Ramajaya Pramukti, POM Rama-Rama unit, for period III of 2012.

4. Reports on the results of Hazardous Waste management (Balance Sheet and Log Book of Hazardous Waste) of PT. Ramajaya Pramukti, period III of 2012, dated 1 November 2012.

5. Realization Report of social impact management.

6. Reports on the management and monitoring of HCV.

Consistent with the results of ST1 and ST2 audits, the company has implemented a quite intensive program of scheme development. Structurally, the scheme management in the area of Amarta Jaya Estate was as described in ST1 and ST2. Amarta Jaya Plasma, which was converted in 1996, consists of 5 KUDs (Village Unit Cooperatives) from 5 villages, with a total number of 115 farmer groups (4,426 farmers). After being converted to become a community-owned estate in 1996, the cooperative scheme applied was an un-managed one, although in practice, it has always been the relatively intensive scheme development that was being applied to, which received highly positive responses from the community. The following details are such scheme development: 1. Implementation of good agronomic standards, through the assignment of Assistant Chief, Assistant, and Supervisor in

KUD (Village Unit Cooperatives), who each takes responsibility to ensure that the activities of maintenance and harvesting are complying with the standards of good agronomy. In the presence of the active staff, maintenance rotation and harvesting can be well controlled, and fruit quality can be maintained. Data of KUD in Kayu Aro revealed that the yield of Kijang scheme smallholders estate could reach 29-30 tons / ha /year in 2012.

2. Plantation facilities and infrastructure procurement program, which was collectively carried out by the company using an interest-free credit model. This collective procurement system is able to further ensure the quality of fertilizer applied, as well as easing the burdens of KUD members.


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3. Supports from the village authorities, by issuing the regulations to govern the harvest fruit quality regulation and the security of the scheme smallholders area.

4. Preparation for replanting program, by using the replanting savings fund.

5. Environmental coaching, through a repeated public dissemination on the HCV area protection.

6. Roads and bridges repair with company’s assistance.

7. Other forms of coaching.

The results of a public consultation in Kayu Aro village (PT. RJP) showed a high level of public satisfaction on the performance of scheme smallholders management done by the company (see the results of public consultation in the previous chapter).

Minor 6.1.1 Status: See OFI-06.

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.

Related to the mechanism of communication and consultation with stakeholders, RJP is still referring to the SOP of Communication and Consultation with Stakeholders (SOP/SPO/SMART/LH-19) dated 1 July 2010. The SOP describes the communication activities conducted, including External Consultation and Internal Communications. Internal forms of communication, to request internal information, may include: special and regular meetings, Training handbook, video, notice board, monthly reports, weekly reports including environmental performance reports, telephone / HP, HT, SSB, Lotus Notes, SAP and suggestion box, while the external forms of communication may include; complaints, demands, claims and disappointments towards plantation management and palm oil mills activities. The following is the data updating on the list of Stakeholders:

a. Statutory Bodies (15 agencies) b. Indigenous peoples (6 people) c. Local communities (3 institutions) at stage-2, there were 3 institutions of local communities. d. Workers Organizations (4 Companies) at stage-2, there were 4 companies of Workers Organizations. e. Small Holders (6 KUDs) f. Independent Suppliers of FFB and Services (3 Suppliers) g. National NGOs (2 NGOs)

The company keeps an SOP regarding information distribution, which is stated in the SOP of Communication and Consultation (SOP/SPO/SMART/LH-19), dated 01 July 2010. For example, a record of information (letter) sent to the Labour Agency of Kampar District dated 13 October 2012, in which the Quarterly Report of P2K3 (Guiding Committee of Occupational Health & Safety) was enclosed. Revisions have been made to the letter of appointment for the officer assigned for establishing the communication and consultation with the community, i.e. Mr. Evian Indra, as the person in charge of social deeds in Rama-Rama Estate, through Decree No. 004/RC-Kampar/RSPO/01/2011 dated 1 January 2011.


6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties.


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RJP is still referring to the SOP for Complaints and Discontent Handling (Document No. SOP/NP/SMART/XII/MCAR001, dated 1 July 2010), which consists of Handling for Internal Complaints, External Complaints and complaints against female workers. A flow chart for handling each complaint respectively can be found in the appendix. In the document on the result of field visit in Kayu Aro Village, both Village Heads stated that whenever there are problems associated with the company, they will convey it either verbally or in writing, based on the context of the problem. The company has always been fairly quick in responding to any issue conveyed by the community, in accordance with the type of complaints. Settlement of complaints always gives priority to the consultation with stakeholders, and will be adjusted to the company‘s capability and conducted openly. Consistent with Stage-2 activity, in which all Records of inquiries or complaints are documented in the Communication Book that includes the Number, Date and Letter Number, Sender's name, Origin of institution, requests, the purposes, approval marks from the decision makers, disposition, reff No / receipt and its final status. The results of a visit to Kayu Aro Village stated that there has never been any conflict occurs between the company and the community. Any minor complaints occur in the community will be delivered to the company, either directly or in writing, by community leaders / village officials, and will be discussed with the company during the regular meeting of farmer groups / KUD. Most of the community around Rama Rama Estate and Rama Rama Mill are not indigenous people; they are transmigration program participants, coming from other regions. The owners of legal/traditional rights, on the other hand, are mostly from the local village (Patepahan Village). The land acquisition process has been completed by the company to all occupied HGU areas. The company has also provided an SOP for land conflicts (SOP/BWL /PKL), dated 5 February 2010, which includes the participation from both the communities and the institutions involved in the settlement of land conflicts.


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.

The company has a land conflict management procedures (SOP/CPR/PKL), dated 5 February 2010 in which there is a mechanism to identify and calculate land compensation. At the time of ST2, the compensation process has been completed by the company for the occupied HGU areas. There is also the result of interviews with community leaders from Petapahan Village, which is the native village, in which they stated that the land acquisition process was previously carried out by involving traditional leaders, Village authorities, Land Acquisition Committee (Consisted of village authorities, BPN (National Land Agency) Officer, and the District Officials), as well as other stakeholders, in accordance with the applicable regulations at the time. Regarding the land acquisition, the information received is still the same with that of stage-2, which stated that there are land acquisition documents of PT. RJP, which contains documents on the Inventory of soil, plants and other efforts in the context of land acquisition in Petapahan Village, with the following approving parties;

- The owner / cultivators, - Kampar District Land Agency Office, - Officials from the Office of Head of Kampar District, - Officials from Plantation Agency, - Subdistrict officials, and, - Village officials.

This is reinforced by the Decree of Head of Kampar District, No. 525/238/Pem-Um/1991 dated 14 May 1991 on the Recommendation for PT. Ramajaya Pramukti Lestari and PT. Wira Buana to obtain the Land Use Title (the HGU), which


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stated the following: - PT. Ramajaya Pramukti, located in the village of Petapahan, has settled up the payment of IDR 58,267,775 for the first

phase of consolation gifts, along with 209 pieces of parcels. - PT. Buana Wirabuana Lestari, located in Sekijang Village, has settled up the payment of IDR 38,422,677.50 for the first

phase of consolation gifts, along with 140 pieces of parcels. The negotiation process or the agreement on compensation were reached through the following stages; There are 2 types of compensations offered by the company, i.e.: a. Replace the Cultivated Plants, conducted on prospective scheme smallholders areas. Landowners were enrolled in the

Trans-Smallholders Plantation (PIR-Trans) program and received a 2-hectare estate land. There was also a Statement of Waiver on Land/Cultivated Plants and the receipt of consolation gift payment (saguhati), such as of Mr. Abdul Majid, of Petapahan Village, who received IDR 183,000.00 consolation payment for his Jengkol plants (20 plants) and Gajus plants (10 plants), on a 2-hectare land. The document was equipped with the Statement of Waiver of Land/ Cultivated Plants and the Receipt of Compensation/Consolation Payment. The plants area check was done on 12 March 1991

b. The compensation for land cultivated for smallholders plantations. There is a Statement of Waiver on Land/Cultivated Plants, and the receipt of compensation payment. For example, IDR 3,000,000.00 compensation payment given to Mr. Fauzi for a 30,000 m2 land located in Petapahan Village, Siak Hulu Subdistrict. The event was witnessed by the Head of Kampar District Land Agency, 1st Assistant of the Office of the Head of Kampar District, Head of Siak Hulu Subdictrict, and Head of Petapahan Village. The document was equipped with the Statement of Waiver on Land dated 2 September 1996, and an Inventory List of Land, Plants, and Other Efforts in the purpose of Area Clearing.


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 Regulation of Riau Governor No. 48 year 2011 regarding Provincial Minimum Wages (UMP) for the year of 2012 and The Regulation of Riau Governor No. 54 year 2011 regarding Provincial Minimum Wages (UMP) for 12 Districts in Riau Province for the year of 2012 stipulated an amount of IDR 1,238,000 per month.

- Wages Provision for PT. RJP is referring to the Circular Letter issued by Sumatra Plantation Companies Cooperation Board (BKS-PPS), No. 15/BKS-PPS/2012 dated 09 February 2012, which specified on the agreed minimum wage for daily workers to be IDR 1,282,200 per month (higher than UMP).

Based on the abovementioned provision, PT. RJP has issued a Decree on the following wages provision: b. Decree No. 005/CEO 5/HR PSM 5/02/12 regarding Wages for Permanent Daily Workers (SKU-H), stipulated on 1

January 2012; IDR 1,282,200 per month for workers with less than a year working period, and IDR 1,284,700 per month for those with one year or more of working period.

c. Decree No. 006/CEO 5/HR PSM 5/02/12 regarding Wages for Monthly SKU Employees, stipulated on 1 January 2012; based on each of employee’s category; from IDR 1,339,500 per month for the lowest G1 category, to IDR 2,264,350 per month for the highest A8 category.

d. Decree No. 004/CEO 5/HR PSM 5/02/12 regarding Wages for Daily Contracted Labours BHL), stipulated on 1 January 2012; to be IDR 55,578 per day. On an interview conducted earlier, a HRD staff stated that there is no specified provision made by the company in the case of when a Daily Contracted Worker spends 20 days/month working for 3 months in a row, that the said worker will be promoted to be SKU-H employee, but solely based on the decision in each respective operational unit, and also based on the said worker’s decision on whether the said worker is willing to be promoted to be SKU-H employee.

There is a List of Detailed SKU Basic Salary of the employees in Rama-Rama Mill and Rama-Rama Estate for September 2012, as well as the allowances, overtime payment, and premium received by employees.


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There is also the Company Regulation of PT. SMART Tbk year 2011-2012, which was ratified by the Directorate General for the Development of Industrial Relations and Labour Social Assurance No. 808/PHIJSK-PKKAD/PP /XII/2010. There is no change made to the content on the Company Regulation, as it remains the same with the one for the period of 2010-2011. Based on the field observations in Rama-Rama Estate, there are housing/lodging G2, houses of worship, schools, daycare, polyclinic, sports facilities, clean water tank, and the most recent facility i.e. Smart Home (Rumah Pintar). Smart Home (Rumah Pintar) is a program initiated by the members of Solidarity of United Indonesia Cabinet Wives (SIKIB) Volume II, which is chaired by First Lady Ani Yudhoyono, and in cooperation with PT. SMART, Tbk. Smart House is a non-formal educational facility intended for children and mothers in the plantation neighborhood and the community around the Estate. The facilities provided at Smart House are, among others: Library, Computer Room, Craft Room, and educational games. In this place, children are supervised by one tutor and one assistant, with various activities such as: learning to write, read, sing, and dance for children, as well as craft activities such as cooking, sewing, and baking for mothers. So the children or mothers could use those facilities aimed at gaining maximum benefits from such positive activities and knowledge sharing. Employment contracts requiring the contractors to comply with labour regulations are stipulated in Mutual Working Agreement (SPK). One available example is: SPK No. 003/RRME/01/2012-BGN, for the name of William (PT. Wilmar Pentarindo), for the construction of housing and/or other public facilities in the Unit. In Article 4 on Taxes and Jamsostek (Labour Social Assurance), point 8 states that Labour Social Assurance and Labour Social Assurance premiums upon the labors of the second party who carry out such works. Furthermore, in Article 5, point 6 states; the second party declared the ability to comply with the laws and regulations on employment, particularly with the remuneration, and the working age. While Article 5 point 7 states that in carrying out its works, the second party shall guarantee the safety and occupational health of all labors, and is obliged to equip the labors with the personal protective equipment, in accordance with the applicable regulations.


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.

As for the company's policy on the guarantee of freedom of association for the workers, it is set out in the following documents: - Collective Labour Agreement (PKB), between Sumatra Plantation Companies Cooperation Board (BKS-PPS), and the

Central Board of the Federation of Agriculture and Plantation Workers Union of Indonesia (PP.FSP.PPP.SP.SI) Year 2011-2012 Article II which states that the employer (PT. RJP) and its workers union shall guarantee the freedom of association for all employees.

- The circular No.045/CEO5-SE/11/2010 on 16 November 2010, concerning the freedom of association within the Company, issued by CEO5, Franciscus Costan.

At the time of surveillance -1 activity, there were changes found in the organizational structure of Workers Unions of Rama Rama Estate. There was proof of ratification of the organizational structure of Workers Union of Rama Rama Estate through a Decree of Branch Council (DPC) of Kampar District of Federation of Agriculture and Plantation Workers Union of Indonesia (No. Kep-/30/DPC-FSPPP-SPSI/VII/2012) dated 16 July 2012. There is also a record of a meeting held between the company management and the workers union of Rama Rama Estate, such as: Minutes of Meeting of PUK SPSI PT. Ramajaya Pramukti dated 20 July 2012, which discussed the Supply for Personal Protective Equipment (PPE) for employees and facilities. The meeting was attended by the representatives from the company (Estate Manager and Supervisor I of Division IV) and representatives from the workers union of PT. RJP (the Chairman and its 13 members).



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

With regards to the policy of not employing minors, RJP still refers to the policy on the worker's age requirements set forth through the circular issued by HR Director, No. 002/SE-HRDV / / 03/09 dated 31 March 2009, specifying that the minimum age limit for an employee is 18 years old. There are warnings / announcements concerning minimum working age restriction of 18 years, at the Estate / Division Offices, housing / lodging, and Mill. In addition, based on the data of employees of Rama-Rama Estate and Rama-Rama Mill in 2012, the information found in the "age of admission" column confirms that there were no workers under the age of 18.


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.

There is a Circular No. 003/CE05-SE/06/2009 on 24 June 2009, which regulates the implementation of industrial relations in the unit, one of which is by ensuring an equal opportunity practice in giving freedom to employees to work in all fields of jobs, regardless of the ethnic, religious view, races, and gender. There is also an employee data from the year of 2012 stating that the employees in Rama-Rama Mill and Rama-Rama Estate comprise of various ethnicities (Batak, Bugis, Javanese, Malayan, Minang, Ochu, Sundanese, Acehnese, and Nias), different religious views (Islam and Christian), acceptable ratio of woman to men. This brings the idea indicating that the company has been offering a bias-free environment and practicing an equal employment opportunity, regardless of the ethnics, religions, and genders.


6.9 A policy to prevent sexual harassment and other forms of violence against women and to protect their reproductive rights are developed and applied.

There is a Circular issued by the Agronomy Unit Head No.001/CEO5-SE/02/2009 on 20 February 2009 and approved by Franciscus Costan, which regulates the dissemination efforts for all employees, to the prevention and handling of sexual abuse. There is a Circular, No. 001/SE-VPA5/SPO/07/2011, authorized by B. Vijayakumaran on 8 July 2011, explaining that pregnant and breastfeeding female workers are prohibited from working in spraying job and other jobs directly related to hazardous chemicals management, in accordance with applicable regulations. There is also a Circular No. 002/CEO5-SE/03/2009 dated 2 March 2009 authorized by Franciscus Costan (CEO 5), regarding H1 menstrual leave, which states that female employees are not obliged to work on the first and second day during menstrual period, based on examination of company doctor. Updating of The structure, of the Women's Commission in Rama-Rama Estate, with Ms. Layla Elya as Chairman, authorized on 5 February 2012 by Evian Indra (Estate Manager Rama-Rama), with the program of work of handling the problem of sexual harassment, public facilities such as the monthly checks Daycare (child Care), and the Integrated Health Center-IHC (Posyandu). Below is the flow of sexual harassment handling:

1. In case of sexual harassment takes place, file a report to IKISTRA (Association of Women Staff in Riau Province), or to the Women Commission officials (SPSI), either verbally or in writing. IKISTRA and SPSI shall then analyze/process the complaint using information from the victim as the investigating ground.


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2. IKISTRA and SPSI shall assist the victim in filing a report to the Head of Unit. 3. Using the information and the gathered data, the Head of Unit shall conduct necessary investigation to gather more

solid evidence. 4. When convicted guilty, the offender will face serious threats as the Head of Unit is fully authorized to apply sanctions

according to applicable Laws and Regulations of the company, or to further bring the case to a higher law. The dissemination on sexual harassment prevention and handling was given to the employees’ family on 9-10 April 2012, held in Employee Hall RRMM/K, and was attended by 95 participants (employees’ wives) and Dissemination on Sexual Harassment held on 16 February 2012 in the same place was attended by 20 participants. Based on the field observation and interview with harvesting worker (Warsino) and spray worker (Nur), it was revealed that the dissemination regarding such issue has been given to the employee. In addition, interview with a staff/PIC has also stated that there has been no complaint being filed concerning this sexual harassment issue. There is a reference letter from the company’s doctor on 7 April 2012, suggesting that a worker named Jumiati Sagala was on a full paid maternal leave as of 21 April 2012 until 21 July 2012, which means that the respective employee shall still received a full amount of wages, as listed in the document of List if Basic Wages from June-July 2012 in Rama-Rama Estate. As for the implementation of H1, Rama-Rama Estate keeps a January to October 2012 recap in each Division (1 – 5), in the office and in technical department. The SOP for the Handling of Complaint and Disappointment (SOP/RJP/PKK) was approved on 5 February 2012 by VPA and VPM. For internal complaints, settlement for such cases arising among employee must be addressed through workers union, which will be represented by PUK SPSI in each unit by submitting a letter to the Head of Unit. As for external complaints, receiving and recording of them shall refer to the SOP for Communication and Consultation. Other than an SOP, the mechanism for communicating the complaints is also included in the company regulation of 2011-2012. The book of incoming letters of complaints and discontentment in Rama-Rama Estate for the period January – October 2012 recorded zero number of cases, both internally and externally.


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

FFB pricing is based on the Minutes of Meeting held by The Oil Palm FFB Purchase Price Determination Team of Riau Province, on smallholders’ production yields in Riau province, with the mechanism of negotiations between Company representatives, Oil Palm farmers, and Local Government. The meeting is held weekly every Tuesday and the fixed pricing is applied on Wednesday. FFB price list is always updated by KUD officials on a regular basis and is accessible for public (displayed on whiteboard). However, KUD officials also keep the copy of each Decree issued on the FFB price list. From interviews with the officials of KUD Mekar Jaya, Sei Lembu Makmur Village, they claimed to have understood the agreement contract that they have done with the company and that they are getting fair treatment in the joint, e.g. FFB purchase contract, supply of fertilizers, transportation for FFB, etc. From interviews with the officials of KUD Mekar Jaya, Sei Lembu Makmur Village, it was revealed that the payment is in accordance with the agreement, which is done every period of 2 weeks via direct deposit to KUD‘s bank account.


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

Consistent with the results of the ST1 and ST2, there are a number of documents indicating the company's contribution to regional development, such as:


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a. Documents on the CSR realization in 2012 with the total amount of IDR 258,971,150, which comprised the provision of aid to the community, such as; heavy equipment (grader) assistance, road repairs, building materials, orphans support, glasses relief, teachers honorarium, religious activities, youth activities, etc.

b. Tax payment documents of Rama Rama Estate; Income Tax Article 21 (PPh 21), Income Tax Article 23 (PPh 23), and the Land and Building Tax (PBB)

c. Documents on the realization data of the local purchase.


PRINSIP #7 RESPONSIBLE DEVELOPMENTS OF NEW PLANTINGS.

Not Applicable; company did not open / develop new oil palm plantations after November 2005.

Status: Not Applicable

PRINSIP #8 COMMITMENTS 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 has provided a proof of evaluation results from the analysis of environmental and social parameters, such as:

- Plan of action and evaluation of BOD test results of the effluent.

- Evaluation of the results of air quality testing (emissions and ambient)

- Evaluation of the results of water quality testing, at monitoring wells and on the river

- The monitoring of the social impact activities.

The company has also prepared a report on the implementation of the management plan and environmental monitoring plan, which is periodically reported to the relevant agencies. Internal Audit related to the application of the principles and criteria of RSPO. The most recent assessment was held on 6 to 10 August 2012. RJP also conducted a management review on the application of the principles and criteria of RSPO. Management Review was conducted on 10 October 2012. Management review is done to see the progress status of audit findings.



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3.2. Summary of Assessment Report of Supply Chain

Clause Requirements of Mass Balance Supply Chain Models

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 has established the procedure for Identification and Traceability Capability (PT RJP-RRMM/SOP/01),

authorized on 2 January 2012. This procedure describes the following mechanisms; 1) fruits reception (whether from

the smallholders estate, scheme smallholders estate, or from the supplier / independent smallholders); 2) processing;

3) storage of palm oil and palm kernel in the storage tank; and 4) delivery of products (CPO and palm kernel) to Dumai

Bulking Station.

This procedure also specifies the supply chain system applied based on the principles of Mass Balance where FFB

derived from different sources are processed together.

This procedure also stipulates that FFB reception, whether from smallholders estate or from non-smallholders, is

distinguished from the recording of weightbridge acceptance code. One of such records provided is in a form of

weightbridge tickets.

Afterwards, all FFB is processed simultaneously, as for the shipment of claimed to be certified CPO or palm kernel, it

shall use a Product Delivery Memo.

b) The personnel responsible for the implementation of this system are as follow:

Assistant, responsible for supervising whether the FFB received is in conformity with the standards and criteria specified, FFB processing supervising, monitoring the process of analyzing the quality of processed products.

Head of Administration, responsible for conducting the recording and reporting of the quantity and quality of processed products on a regular basis, monitoring the administration process for FFB reception, and delivery of processed products, regularly checking the essential tools used in the supply chain to keep them in a good condition, accurate, licensed, and well maintained.

Mill Unit Head (Management Representative), responsible for ensuring all process of the supply chain to be well implemented, ensuring that Mass Balance calculation has been done correctly to be able to determine the number of certified products, providing information to those who need, related to the certified product.

Production Controller (Top Management), responsible for ensuring and offering guarantees that the resulting product can be traced back to their sources and delivery of the product is acceptable according to the quantity and quality.

Status : Full Compliance

1.2

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

See explanation of 1.1 RJP has established the mass balance model to separate the certified products from those non-certified. The implementation of this model is by putting the "Mass Balance Stamp” on the Fruit Dispatch Memo (SPB).



ASSESSMENT REPORT


2 Purchasing and goods in

2.1

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

The FFB received by Ramarama POM came from the RSPO certified Core Estate (Ramarama Estate), from AJYP (Amartajaya Plasma), and from the Independent Smallholder. RJP has a mechanism to separate the certified FFB from those non-certified. This selection is done by applying "a Mass Balance Stamp" to FFB originating from RSPO certified estates. For example: - Fruit Dispatch Memo (SPB) (No. 2120/TBS/02/10/12/2213) FFB Origin Division II RRME; Date 29 October 2012;

Quantity 8,500 Kg; Bunch Quantity 440 bunches; Vehicle’s License Plate Number BM 9181 FC; Fruit Dispatch memo (SPB) is “Mass Balance” stamped.

- Weightbridge Card (No. A077003 037317) FFB Origin Ramra Estate; Quantity 8,500 Kg; Delivery Note 2120/TBS/02/12/10/2213; Transporter 300040 RAMRA RAMRA ESTATE; Driver Nambela; Weightbridge Card is “Mass Balance” stamped.


2.2

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

RJP has projected that the CPO production in 2012 would reach 22,408 tons, and the actual production until September 2012 was 18,943 tons. Based on SOP for the Identification and Traceability Capability (PT RJP-RRMM/SOP/01), it is stated that RJP is committed to reporting to the Certification Body, should the production of CPO exceeds the projected claim.


3 Record keeping

3.1

The facility shall maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these requirements.

The entire records and reports have been fully made and kept by the company. The soft copy form of the document storage system is kept using System Application Program (SAP), while the hard copy (print out) version is stored in the cabinet in the administration room of Rama Rama POM.


3.2

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

In the procedure for the Identification and Traceability Capability (PT RJP-RRMM/SOP/01), the company has established a 10 (ten)-year retention time for all records or reports of FFB reception at POM, palm oil processing, storing of CPO products, Palm Kernel, and CPO product shipments.


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.


ASSESSMENT REPORT


a. Ramarama POM has recorded all RSPO certified FFB, by giving a special marking on those originating from the certified estates. However, based on information from one of the staff, it was revealed that Ramarama POM has not made any sale of the certified CPO.

b. Ramarama POM is able to show the records of CPO and PKO shipment volumes, which were being sent to Bulking Station. For example: Delivery Record of a 39,500 kg of CPO to Bulking Station dated 29 October 2012.

c. Although RRMM has established the "Mass Balance supply chain model", the company admitted that they did not sell any RSPO certified CPO.

Status : Observation

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.

RRMM has specified that the model of supply chain used is Mass Balance. RRMM implements this Mass Balance model only on FFB admissions process, to CPO dispatch, up to the Bulking Station. However, RRMM does not sell the RSPO certified palm oil.

Status : Observation

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.

RRMM is performing the Palm Kernel processing at Ramarama KCP (RRMK) station whose capacity reaches 150 tons / day. Palm kernel is supplied from RRMM (Ramarama Mill), NSAM (Nagasakti Mill), and KJGM (Kijang Mill). NSAM and KJGM are both under the same POM management.


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

CPO is removed from POM Rama rama to be sent to Bulking Station, owned by IVOMAS Tunggal, located in Dumai District, Riau Province. Meanwhile, the Kernel is sent to Kernel Crushing Plant in Rama Rama KCP, Tapung Subdistrict, Kampar District, Riau, to be processed into palm kernel oil.

There is the recorded evidence of the oil delivery invoices, in a form of Delivery Order (DO) documents, issued for each delivery of oil. For example:

- DO No. 2150/CPO/2150/11/T014, dated 6 July 2011, where 2,000 tons of CPO were delivered to bulking Ivo Mas Tunggal Dumai, by CV Karya Bersama as the transporter.

Status : Observation No. 7

5 Training


ASSESSMENT REPORT


5.1

The facility shell specifies and provides the training for all staff as required to implement the requirements of the Supply Chain Certification Systems. RRMM has provided training for the all staff, associated with the procedure Supply Chain Certification System, which has been done 2 times. The initial training was conducted on 11 August 2011. At the time of surveillance activity was conducted, RRMM was able to present the proof of the most recent training which held on 12 March 2012 in the Meeting Room of PC / RC Office, and was attended by all RRMM staff.


6 Claims

6.1

The facility shall only make claims regarding the use of or support of RSPO certified oil palm products that are in compliance with the RSPO Rules for Communications and Claims (refer to Annex 10).

RRMM has not been able to show the use of claims to support RSPO certified palm oil in accordance with the RSPO Guidelines for Communication and Claims indicated in the Sales Contract, Delivery Order and Invoice.

Status : Observation No. 7


ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use

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

Status

The Company has received evidence of approval / clearance for using the RSPO certificate and logo from Certification Body Mutuagung Lestari (Letter No. 099.19/MUTU/I/2012)

√

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

Not Applicable; RJP does not use the logo both in the on-product and off-product. In the scope of PT. RAMAJAYA PRAMUKTI

×

3. Implementation of Certificate and Logo is not used on product


×

4. Controlling of Certificate and Logo, including withdrawing inappropriate logo


×


ASSESSMENT REPORT


1.4. Summary of Time Bound Plan Verification of the RSPO Certification Total companies visited (0.8 √Y) Where Y is the total of one holding company. The company name : Indrasakti Mill (PT. Buana Wiralestari Mas) with 4 (one) Estate such as Indrasakti Estate, Indrasakti Plasma, Indragiri Plasma, Indralestari Plasma (PT. Meganusa Inti Sawit)

2.1

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

Indrasakti POM (PT. Buana Wiralestari Mas) is compliance with applicable 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.

Indrasakti POM (PT. Buana Wiralestari Mas) has demonstrated land use and not legitimately contested by local communities.

√

6.3

There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties.

Indrasakti POM (PT. Buana Wiralestari Mas) has 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.

Indrasakti POM (PT. Buana Wiralestari Mas) has SOP of Land Compensation Standard and Identification No. SOP/NP/SMART/VII/D&L002, describe Land identification, settlement patterns, Consultative Process Claims, Payment and Reporting Procedures.

√

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.

Indrasakti POM (PT. Buana Wiralestari Mas) and its supply base 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.

Indrasakti POM (PT. Buana Wiralestari Mas) and its supply base no plantings established on local peoples’ land without their free, prior and informed consent

√

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.

Indrasakti POM (PT. Buana Wiralestari Mas) and its supply base no plantings established on local peoples’ land without their free, prior and informed consent

√


ASSESSMENT REPORT

SPO – 4006a.4 Page 45

Prepared by Mutuagung Lestari for PT. Ramajaya Pramukti – Rama Rama POM

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

During the second surveillance assessment all the first surveillance findings were closed and 7 (seven) opportunities for improvement/observations were identified. Further explanation of the non-conformities raised and corrective actions taken by RJP are provided in this section. RJP 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 Action, Observations at Stage-1 Assessment

No. CAR

Ref Std Findings Grade Location Corrective Action Time Limits Observations and Date Status Closing

date

2010.01 2.1.1 The evidence of compliance with regulation – It was found that the company has not met some of the relevant regulations. Example: Regulation of No. 7 of 2007 Article 7 of the training of spraying workers in the use of restricted pesticides (Paraquat); OHS License for the tractor operators in the estate (eg in Ramabakti Estate) in accordance with the Permenaker No.9 of 2010 Article 3, 4, 5, 11, and 13 on Operators and Lifting and Transport Tools Officers.

NC Mill & Estate

Documented evidence of compliance with all relevant regulations, including, but not limited to: Permentan No.7 of 2007 Section 7; and Permenaker No.9 of 2010 Article 3, 4, 5, 11, and 13 should be provided.

Before Stage-2

In the ST2 audit process, the company has provided its spraying workers with the limited pesticide (Paraquat) spraying carried out by Pesticide Commission of Riau Plantation Office (Mr. Suratmo, SP.) on February 8, 2011 attended by pest control officers of Kijang Estate, Nagamas Estate, Ramabakti Estate, Rama Rama Estate and Nagasakti Estate. In the ST-2 audit process, the company has presented the Operator License, such as operator license No. SIO 10.6722/OPF/PNOHS/XI/10, type: heavy equipment tractor in the name of Jainal Silalahi, an

Closed 16-July-2011


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date

operator in Rama Rama Estate.

2010.02 2.1.2 The evidence of adjustment to regulation change – It was found that the company has not made adjustment to changes in the regulations, for example: Giving hazardous waste symbols in accordance with PermenLH No. 3 of 2008.

CFA Mill & Estate

The company is suggested to make adjustment to the relevant regulations in respect to its mill and estate operations.

Before Stage-2

There is Another Regulation and Requirement Mechanism (SOP / CPR / PPL) issued on February 5, 2010 prepared by the Regional Controller / Production Controller and approved by the Vice President Agronomy / Vice President Mill providing the company evaluation mechanism of regulatory compliance.

Closed 16-July-2011

2010.03 2.1.3 List of regulations - The Company already has a list of regulations associated with plantation and mill activities, but has yet to include all local regulations (Regional Regulations) are associated, for example: Riau Governor Regulation No.95 Year 2009 on the minimum wage applicable in districts or municipalities of Riau province; Governor Regulation No. 35 of 2007 on wastewater quality standards.

CFA Mill & Estate

The company should complete the list of regulations relevant to its mill and estate operations with all prevailing regulations, including regional regulations.

Before Stage-2

In the ST2 audit process, the company has provided documents related to regulatory and legal requirements of the operational activities of palm oil plantation management including regional regulations.

Closed 16-July-2011

2010.04 2.1.4 Evaluation of regulatory compliance - The company already has a

CFA Mill & Estate

The company should evaluate the article-by-

Before Stage-2

There is documented Evaluation of Company’s

Closed 16-July-2011


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No. CAR


date

documented List of Regulations and Compliance, but have yet to include the evaluation of the entire articles of the regulations for which the company has to fulfill in respect of its plantation and mill activities.

article of regulations it has to comply with.

Compliance with the Regulations, Laws and Other Requirements that explains types of regulations evaluated a description of articles of the regulations evaluated and implementation / documentation of the company’s compliance with such regulations, such as articles 22, 31. 34, 36, 59 of Law no. 32 of 2009 on Environmental Protection associated with the Estate Operations.

2010.05 2.2.2 Boundaries Poles - Company has a documented boundary pole maintenance plan, but based on field verification, BSN 15 boundary poles (in Rama Rama Estate) are not maintained well.

CFA Estate All boundary poles of the company’s working area should be maintained well.

Before Stage-2

Based on the field visit to the HGU Boundary Poles No. 10 - 15 (HGU No. 149 of 2001) which is the boundary area between the company estate and people land, the audit team found that such HGU boundary poles have been well maintained and clearly visible.

Closed 16-July-2011

2010.06 3.1.1 Long-term plan - Company has a long-term work plan in the form of Company Work Plan of PT Ramajaya

CFA Mill & Estate

It is suggested the long-term work plan should be approved.

Before Stage-2

The company has been able to show evidence of long-term work plan 2010-

Closed 16-July-2011


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No. CAR


date

Pramukti Period 2010 - 2017. But there is no evidence of management approval.

2017 which was approved by the company’s top management (CEO PSM 5).

2010.07 3.1.2 Replanting plan - There is a replanting plan to be implemented in 2017. But documented evidence of the annual review of the replanting program is unavailable.

CFA Estate The company should present the documented evidence of annual review of its replanting plan.

Before Stage-2

While the stage-1 activity was being done, the company already had replanting plan which will be done in 2017. This replanting program plan is still a plan submission from estate management unit and has not been validated by the top management. While the stage-2 activity was being done, replanting plan was reviewed with the result of the change of the year of program 2017 revised 2016. This change of plan was the result of annual study which has been done by the company related to replanting activity. The study itself was done based on criteria of plants age, plants length and production estimation (in accordance with one of

Closed 16-July-2011


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date

the replanting criteria in existing SOP).

2010.08 4.1.2 SOP of Mill- The company already has SOP Mill in the form of SOP Palm Oil Processing Mill of PT SMART Tbk, but it does not explains product supply chain system in the mechanism of reception of FFB until CPO delivery; it is because there are factories that receive FFB from smallholders beyond the scope of certification. Example: FFB acceptance procedure in Rama Rama Mill which receives FFB supply from the smallholders plant.

CFA Mill The company is recommended to review the SOP Mill and explain the product/CPO supply chain procedure ranging from FFB reception until CPO delivery, for mills receiving CPO supply beyond the certification scope.

Before Stage-2

The company has established procedures in the form of SOP Supply Chain, PT Ramajaya Pramukti (SOP / CPR / SC), ratified on July 12, 2011. This SOP details the recording mechanism of FFB receipt (either from the nucleus or Scheme smallholder), processing, storage of CPO and palm kernel in the storage tank, and the shipping of the products (CPO and palm kernel) to Dumai Bulking station. This procedure also establishes the supply chain system that is applied based on the principle of Mass Balance.

Closed 16-July-2011

2010.09 4.4.2 Evaluation of water quality test - The Company has provided records of the results of water quality test conducted by SMARTRI laboratory, but has not provided evidence of evaluation of the parameters tested in accordance with established quality standards.

CFA Mill & Estate

The company is recommended to evaluate the data of water quality test in term of parameters tested in accordance with the established quality standards

Before Stage-2

The company has conducted water quality test from employee housing drilled well located around the housing settlement. This water quality test was conducted on semester

Closed 16-July-2011


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date

basis in accordance with the Permenkes No. 416 of 1990 concerning the clean water standards. Parameters tested include: odor, turbidity, temperature, color, Total Dissolved Solids (TDS), chemical content, and total coliform. There is the documented result of the ground water quality test conducted on May 24, 2011 by UPTD Water Quality Test Laboratory of the Health Agency of Pekanbaru City; test result shows that all parameters are in accordance with quality standards.

2010.10 4.4.3 Evaluation of BOD effluent test - The Company has provided a documented monitoring of BOD effluent, but has not provided evidence of evaluation of the parameters tested in accordance with established quality standards.

CFA Mill It is suggested to conduct evaluation of BOD monitoring data and the tested parameters in accordance with existing quality standard.

Before Stage-2

The Company has conducted liquid waste BOD test results evaluation toward parameters set in applicable regulation.

Closed 16-July-2011

2010.11 4.4.4 Evaluation of monitoring of water usage per tonne of FFB - The Company has provided a record of monitoring of water usage per tonne of

CFA Mill The company is recommended to evaluate the data of monitoring of water

Before Stage-2

The company has conducted the monitoring of water usage per tonne of FFB. Based on

Closed 16-July-2011


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date

FFB for the estate, but has not provided evidence of evaluation of the use of water monitoring data against a predetermined budget.

usage per tonne of FFB for the mill against a predetermined budget

monitoring data, the average use of water for the plant exceeds a predetermined budget. The company has evaluated the data, namely: the excessive use of water against the predetermined budget was caused by the volume of FFB processed is lower than the budget, domestic water use for employee housing tends to increase as the increased number of employees, while the boiler continues to run beyond the operational hours of processing activity in order to support the KCP (Kernel Crushing Plant) station. The company has developed a water use efficiency plan in accordance with a predetermined budget in the form of the documented Water Use Action Plan of PT Ramajaya Pramukti -


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date

Rama Rama Mill & KCP. The measures already taken are inter alia: socializing water use efficiency, recycling turbine cooling water into reservoir for reuse in the processing unit, daily/weekly/monthly monitoring water usage, and summarizing data of use of water processing and domestic water separately. This Action Plan was planned to be completed in August 2011.

2010.12 4.6.1 Evidence of a licensed pesticide - The company has been able to demonstrate the documented evidence of the use of licensed and registered pesticides, but the audit team found some pesticides whose validity period of license registration has expired. For example: Ally 20 WP pesticide whose registration has expired on June 14, 2009.

CFA Estate The company is recommended to provide evidences indicating that all pesticides it uses have valid registration.

Before Stage-2

Based on the Pesticide Book published by the Ministry of Agriculture of Republic Indonesia, the company has renewed the permit of Ally 20 WP pesticide until 30 April 2014 and, based on the chemicals use record, Ally 20 WP pesticide has not been applied anymore since February 2010.

Closed 16-July-2011

2010.13 4.6.4 Pesticide packaging waste – Based on SOP (SOP / RJP / LBH) for waste

NC Estate The company should make available the

Before Stage-2

The company has not applied the pesticide

Closed 16-July-2011


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treatment, the audit team got information that the pesticide packaging waste are buried, and there is no enough evidence that the company has communicated the relevant agencies regarding the approval for unused pesticide containers burial in accordance with the prevailing regulations.

documented evidence of communication with relevant agencies regarding approval for burial of pesticides container waste in accordance with prevailing regulations.

container waste burial system anymore since November 2010. The company also has revised the SOP (SOP/ RJP/LBH revision 01) concerning the pesticide container waste treatment. In the SOP, the company has not applied the pesticide container waste burial system anymore, instead of delivering them to the licensed vendor. This SOP was revised and ratified on 1 November 2010 by the VPA, VPM, RC and PC.

2010.14 4.7.5 Risk assessment documents - Based on field visit, it was found that the company’s harvesting workers are not equipped with appropriate PPE, such as helmet; although the company has explained that the recommended PPE for harvesting workers is based on the risk analysis result.

CFA Estate The company should review its risk analysis data so that the recommended use of PPE for harvesting workers is appropriate.

Before Stage-2

The company has reviewed its risk analysis document, especially in respect of the use of helmet for harvesting workers when working.

Closed 16-July-2011

2010.15 4.7.8 Portable fire fighting tools - the company has adequate fire fighting equipment and checked them routinely. However, based on field visit the audit team found that the portable

CFA Mill & Estate

The company is recommended to furnish the information on validity period of its own portable fire fighting

Before Stage-2

Based on the field visit, the audit team found that the company’s fire extinguisher, Hydrant and First Aid kits are in well-

Closed 16-July-2011


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date

fire fighting tools are not equipped with validity period information.

tools. maintained and inspected routinely. Each portable fire fighting tool contains the validity date, for example: fire extinguisher number 34 located at engine room, the last filling date: 21 October 2010, recharging date: October 21, 2011.

2010.16 4.8.1 Scheme Smallholders training program - the company has provided training to smallholders in the form of regular education, but has not provided sufficient documented evidence of the smallholders training program.

CFA Estate The company is recommended to provide documented training programs for smallholders

Before Stage-2

The company has also established the training program for smallholders and has realized it in the form of Integrated Pest Management training in KUD Makmur Lestari on 30 November 2010.

Closed 16-July-2011

2010.17 5.1.2 RKL / RPL Report- The company has documented RKL / RPL Report of PT Ramajaya Pramukti period 6 months, but the report does not explain all the parameters of the management of environmental impacts based on the RKL / RPL document 1996, for example: Monitoring and Management of Elephant Disturbances:

CFA Mill & Estate

The company is recommended to review the RKL / RPL Report and adjust all contents of the report with all parameters of environmental impact management based on the RKL / RPL document 1996.

Before Stage-2

The company has revised the content of RKL/RPL Report by adding all parameters of the environmental impact management based on RKL/RPL document year 1996 including management and monitoring of disruption by elephant. In RKL/RPL Report on April, 19, 2011 for second semester

Closed 16-July-2011


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date

period (July to December) year 2010 reported. It is stated that management and monitoring of disruption to and by elephant has not been done anymore because it has been a long time (10 years) since the last disruption by elephant.

2010.18 5.2.1 HCV Identification Document - HCV Identification document of PT Ramajaya Pramukti is available, but the drafting process and content of the document have not fully been in accordance with the HCV Identification Toolkit published by the Consortium of HCV Toolkit Indonesia in May 2008. For example: in respect of report preparation framework, supporting data used, management’s approval, public consultation implementation data, inconsistency of map scale to the print out, report peer review has not been conducted, and competence of drafting team.

NC Estate The company should review the HCV identification document by adjusting all process of the preparation and content of the document in accordance with HCV Identification Toolkits published by the Consortium of HCV Toolkit Indonesia May 2008.

Before Stage-2

HCV identification documents are available for PT.RJP, compiled by HCV Identification Internal Compiling Team consists of 5 persons Norman Faried Mustakim; (approved RSPO HCV Assessor), Kusuma Widya Rochmah, Tomi Herdartomo, Nazlya Syahputri, Firmasnsyah and Bambang Setyaji) validated in February 2011. Peer review was conducted by external party (Dwi Rahman Muhtaman) in October 2010.

Closed 16-July-2011

2010.19 5.2.2 5.2.3

HCV area management program – Documented HCV management and

NC Estate The company must provide the documented

Before Stage-2

The HCV Identification Report contains measures

Closed 16-July-2011


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monitoring plan is unavailable. HCV management and monitoring plan

already taken as follows; a. Planning of

revegetation of buffer zone around the river borders at the time of replanting palm oil crop.

b. Posting of warning board on conservation of the HCV area.

c. Reduction of estate operation intensity around the area.

d. Free-chemical application in the border zones.

e. Socialization towards the employees and surrounding community about the preservation of the buffer zones.

f. Posting of warning boards on preservation protected species.

g. Socialization towards the employees and surrounding


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community about the conservation of protected species.

2010.20 5.2.5 Trained personnel - the company has appointed dedicated officer to manage the HCV area, but has not provided sufficient evidence that such officers have been trained in accordance with their duties.

NC Estate The company should present a documented data indicating that its dedicated officers of HCV management have been trained in accordance with their duties.

Before Stage-2

The Company has assigned special officers to manage and monitor HCV for example ; Mr.Ajie Prasetiyo in accordance with SEM RRME appointment letter dated January 24, 2011 where the person concerned is appointed as HCV and Environmental Officer of Rama Rama Estate (PT Ramajaya Pramukti). Internal training has been given to the officer delivered by Section Head of HCV officer ENVD Smart Tbk on October 28, 2010, May 26, 2011 and July 1, 2011.

Closed 16-July-2011

2010.21 5.3.3 Hazardous waste treatment - Based on field visit, it was found that the company’s hazardous waste treatment has not been in accordance with the Government Regulation No. 18 of 1999 (Hazardous Waste Treatment). For example: used oil and fuell filter waste in Rama Rama Estate are

NC Mill & Estate

Hazardous waste treatment should be conducted in compliance with the Government Regulation No. 18 of 1999. For example: storage of all hazardous waste in a licensed

Before Stage-2

Hazardous waste (used oil and diesel fuel filter waste) has been collected in licensed storage. Hazardous waste monitoring has also been done and reported to the related institution.

Closed 16-July-2011


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stored in a non-licensed temporary storage facility and hazardous waste monitoring reporting to the relevant agencies has not been conducted.

temporary storage facility and reporting of hazardous waste to the relevant agency.

2010.22 5.3.3 Hazardous waste management – It was found that the company sold its hazardous waste in October 2010 to a hazardous waste collector whose transportation permit has expired in accordance with the Government Regulation No. 18 of 1999.

NC Estate The company should provide evidence that the hazardous waste collector it hires has a valid license and is equipped with transport permit in accordance with the prevailing regulations (Government Regulation No. 18 of 1999)

Before Stage-2

The company has presented the full data of delivery of hazardous waste to a licensed vendor/collector. For example: the operation and transportation permits of the collector, etc..

Closed 16-July-2011

2010.23 5.4.1 Monitoring of renewable energy – there is no sufficient documented evidence of use of renewable energy (energy per tonne of FFB or energy per ton of palm products) including its efficiency analysis.

NC Mill The company should present the documented data of renewable energy use recording (energy per tonne of FFB or energy per ton of palm oil products) as well as the efficiency analysis.

Before Stage-2

The company has provided data of the results of the monthly monitoring of renewable energy usage (fiber and shell). The company has also provided evidence of the analysis of the use of fiber and shell fuel-efficiency for boiler station to generate electricity (Kwh).

Closed 16-July-2011

2010.24 5.4.2 Fossil fuel use monitoring – the company has no sufficient data of

NC Mill The company should present the documented

Before Stage-2

The company has monitored the diesel fuel

Closed 16-July-2011


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evidence of fossil fuel use and its efficiency analysis

data of fossil fuel use and efficiency analysis

use for generator each month; there is monitoring data of Diesel Fuel Consumption Rate 2011 (January-June). The diesel fuel consumption rate could be minimized by optimizing the use of fiber and shell as fuel for boilers.

2010.25 6.1.1 Social impact analysis document - social impact analysis document is available in addition to the EIA document in the form of SIA Document of PT Ramajaya Pramukti that includes positive and negative impacts. But the document still has some shortcomings, in terms of its legalization, supporting data, involvement of affected stakeholders, and drafting team competency.

NC Mill & Estate

The company should review the document of social impact analysis by completing its content with the following information: legalization, supporting data, documented involvement of affected stakeholders and competency of drafting team.

Before Stage-2

There is data of Social, Economic, and Cultural conditions as well as perception of people around the plantation / mill of PT Ramajaya Pramukti, which is taken into account in the Social Impact Assessment document prepared internally by the company (Tomi Hendartomo, Yosaphat Ardhilla Renato and Nazlya Syahputri) in November 2010 in which the parties affected either positively or negatively by the company’s palm oil mill and estate operations are identified. This document details the type,

Closed 16-July-2011


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SPO – 4006a.4 Page 60


No. CAR


date

source, management action, management parameters, management location, period / schedule of management, detailed management, and parties affected by the impacts.

2010.26 6.1.2 Records of social impact management and monitoring - the company has not been able to provide a documented data of social impact management and monitoring efforts involving the community based on the SIA document of PT Ramajaya Pramukti

NC Mill & Estate

The company should prepare the social impact management and monitoring document which involves the community on a regular basis.

Before Stage-2

The company has presented the documented social impact management and monitoring plan covering; a. Social Impact

Management Plan prepared by SEM RRME detailing type, source, management action, management parameters, management location, period / schedule of management, management measures, and parties affected by the impacts.

b. Social Impact Monitoring Plan prepared by SEM RRME detailing type, source, monitoring action, monitoring

Closed 16-July-2011


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SPO – 4006a.4 Page 61


No. CAR


date

parameters, monitoring location, period / schedule of monitoring, detailed monitoring, and parties affected by the impacts.

Based on information from the management unit, the monitoring report will be prepared on annual basis.


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SPO – 4006a.4 Page 62


3.5.2 Identification of Findings, Corrective Action, Observations at Stage-2 Assessment

No. CAR

Ref Std Findings Grade Location Corrective Action Time

Limits Observations and Date Status

Closing date

2011.27

4.7.5 Risk Analysis - Based on field visit to Pondok I Rama Rama Estate (water pump and water tank stations), the audit team found that such areas are potential of an accident and the risk analysis has not been done in the areas.

CFA Estate The company should prepare risk analysis document to be implemented in water pump and water tank stations in employees’ Pondok I Rama Rama housing complex.

S1 02-November-2012 Available hazard identification, risk assessment and risk control for the water pump and water tank. Based on the results of the field are mounted handrails, cover wrapper on the stairs as well as routine maintenance warnings tank.

Closed 02-Nop-12

2011.28

4.7.6 OHS training for machine station operators - Based on the field visit and document review for the machine room operator (steam turbine) in the name of Ansori, OHS training has not been carried out in accordance with applicable legislation (Law no. 1 of 1970 Jo. Permenaker N0. 04/MEN / 1985).

CFA Mill The company is recommended to realize the OHS training program for the machine room operators (steam turbines) who still have not received training.

S1 02-November-2012 There is an Anshori SIO (Generator Operator) with No. SIO 11.152/OPD/KK-M/XI/2011 validity period October 26, 2015.

Closed 02-Nop-12

2011.29

5.2.2 Buffer zone management - the Company has conducted buffer zone management by planting vertiver grass Guatemala. But on buffer zones with high erosion rate, the audit team did not find perennials/trees. For example: in the buffer zone of Air Jernih River.

CFA Estate Buffer zones with high erosion rate should be planted with perennials. For example: in buffer zone in Air Jernih River

S1 02-November-2012 Based on the document review and field visits have known that RJP has planting perennials that have strong root systems such as: bamboo.

Closed 02-Nop-12


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SPO – 4006a.4 Page 63


No. CAR

Ref Std Findings Grade Location Corrective Action Time


Closing date

2011.30

5.5.4 Forest fire infrastructure and facility - Based on the field visit to the central workshop Rama Rama Estate, the audit team found forest fire facilities and infrastructure that are not equipped with fire hose nozzle. The company has issued an interim purchase order for fire hose nozzle. However, the company is encouraged to follow up such purchase order to be realized soon.

CFA Estate The company is encouraged to follow up its purchase order for the goods to be realized soon.

S1 02-November-2012 Based on the results of the field at the Central Workshop Ramarama Estate, facilities are equipped with fire hose and nozzle.

Closed 02-Nop-12


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SPO – 4006a.4 Page 64


3.5.3 Identification of Findings, Corrective Action, Observations at Annual Surveillance 1 Assessment

No. CAR

Ref Std

Findings Grade Location Corrective Action Time


Closing date

- - During the second surveillance RJP has provide good implementation of RSPO standard and there was no non-conformance raised.

- - - - - - -


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3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 Minor 2.1.4

Companies preferably review the mechanisms evaluate compliance regulations related to the management of oil palm perkebnunan (update relevant regulations).

2 Major 4.7.1

RJP preferably re-evaluating and monitoring workers' use of PPE especially high risk. For example: the workers at the station boiler (using cotton as ear protectors).

3 Minor 4.7.3

RJP preferably able to review the hazard identification and risk assessment of all work at the Mill and in the Estate. For example: on Land Application and Solar tank of the results in the form of environmental hazard identification and not the impact on workers.

4 Major 5.2.1

- The Company an opportunity to increase the performance of the management of conservation areas to create a more systematic and measurable, such as one timeline, activity description, constraints, and resource requirements etc..

- The company should be able to expand planting perennials for the entire river border that are at work in the plantation area.

5 Major 5.3.1

Major 5.3.2

Companies an opportunity to increase waste management performance by including the estimated total volume of waste generated and categories of waste (or non-hazardous and hardous materials).

6 Minor 6.1.1

RJP an opportunity to increase performance management and monitoring of the social impact of the plan and more systematic monitoring. For example: create a timeline, targets, constraints and resource requirements.

7 SC 4.1 6.1

RRMM preferably able to inform the buyer in the sale document CPO / PKO / PK that the resulting product is RSPO certified products since January 20, 2012.


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3.5.4

Noteworthy Positive Components

No Ref Std Descriptions

1 Criterion 4.7

RRMM have been certified Gold Flag of OHS third period May 4, 2010.

2 Minor 6.5.1

The company has been providing public facility such as a Smart House is a program of the United Indonesia Cabinet Wives Solidarity Volume II, chaired by First Lady Ani Yudhoyono (First Lady) and in cooperation with PT. SMART, Tbk. Smart House is a non-formal educational facility devoted to children and mothers in the plantation and the surrounding the estates.

3 Minor 6.1.4

Relationships and special attention given to the farmers by the change very well. This is evidenced by placing an assistant and foreman for each KUD, fertilizer loans without interest, savings replanting, competency enhancement training farmers etc.

4 Criterion 8.1

Have been certified ISCC (International Sustainability and Carbon Certification) since February 3, 2012 by GUTCert.


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3.6 Summary of Arising Issues from Public, Organization and Auditor Response

Public Issues Organization Response Auditor Response

Kampar Environmental Agency (Mr. H.M Itarius, Head of Controller)

In general, We considered that RJP and BWL have complied with the provisions of the protection of environmental management in terms of the completeness of the documents such as EIA, wastewater discharge permits, waste discharge permit B3.

In relation to reporting, the company also considered quite docile in terms of sending regular reports monitoring and environmental management in the form of RKL / RPL, wastewater management reports, reports of B3 waste management, etc.

In addition to the report, we routinely monitoring. Based on the monitoring results, there is no conflict or disagreement among community with the company.

Other positive aspects of the company is a cooperative attitude to implementing of our direction. The company always to actively communicate the problems faced.

With these positive notes, the company is still considered worthy of RSPO certified environmental aspects.

RJP and BWL always strive to comply the environmental regulations that apply in the local area. Commitments that have been demonstrated is expected to be maintained in the future.

Based on the observation of the documents and field visits, the audit team assessed the company has consistently implemented environmental management quite well.

Kampar Labor Agency (Mr. Irwan S.M.H.K, Head of Industrial Relations) In general, we assess the performance of the company quite well in terms of employment. Referring to the provisions of Act 13 of 2003, the company has complied with the applicable regulations, such as in the form of: - The minimum wage is in conformity with the provisions

of the UMP. UMP in 2012 was IDR. 1,345,000,- and for 2013 is IDR 1,490,000,-

Companies view employee is an asset to be one of the motor company's success. Therefore, BWL and RJP apply the standard of work and remuneration as well as the Occupational Health and Safety (OHS) according regulations. Achievement is currently a whip to do better in the future so that the relationship with the worker still running mutual and harmonious.

Based on observations document and interviews with the worker known company has been giving facilities to its workers decent enough. For example: Wages are adjusted by setting the Governor of Riau, housing, clean water, lighting and other premiums.


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- Reporting regularly P2K3 implementation in the company. Reports for the period July to September are generally acceptable and in accordance with the contents of the systematics and content is governed by labor laws.

- Accident Reports has submitted periodically - Do not employ child labor - Daily employees who work for 3 (three) months have

been appointed as permanent employees. - Operators of production equipment has a certificate,

there are even plans to train helpers to have a certificate.

- The company has been quite obedient in the provision of personal protective equipment although sometimes ignore labor for a reason. Department of Labor advised even if the necessary disciplinary sanctions can be imposed for employees who do not comply with PPE.

Supervision of the Department of Labor, to date there are no reports or findings regarding the dispute between the company and its workforce. With these positive notes, the company is still considered worthy of RSPO certified aspect of employment.

Kampar Plantation Agency (Mr. Nusyirwan; Head of Plantation Unit) In general, from the point of view of the Plantation Office no significant negative note from RJP and BWL, on the contrary, many of the positive aspects of the implementation of the plantation by RJP and BWL from side to improve the welfare of the people. When compared with some other neighboring companies, Sinar Mas Group's performance is

The existence of the company is also expected to raises benefits for the surrounding community. RJP and BWL regularly sends reports to the Plantation Office. The achievement now will be a benchmark in order to do a better job in the future.

Based on the observation document is known that the company has consistently tried to comply with all applicable regulations in the management of oil palm plantations. Such as: do reporting Developing plantation (LPUP), FFB pricing etc.


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much better. Not a few farmers from around the company that wants to plasma Sinar Mas. Supervision plantation carried out by the Provincial Government with the support of the Plantation Office District. This includes setting FFB is facilitated by the Provincial Government every week. In a meeting FFB pricing were representatives of the District Department of Plantations, companies, and communities. Reports plantation business (LPUP) routinely submitted to the Department of Plantations. From the Plantation Office records note that the report for the first half has been submitted. Systematics and the contents of the report are in accordance with applicable regulations.

Kayu Aro Village (Mr. Gunawan; Head of Village) For the communities, the existence of the RJP is helpful to improve the welfare significantly. Some progress is evident with the pattern of the company's work is transparent. When compared to other companies operating in Kampar, including Sinar Mas best. Some of the benefits of society: - FFB price is guaranteed - Provision of fertilizer more secure from fraud and error

selection - The Convenient supplying fertilizers and medicines with

no-interest loans - Program funds replanting preparation - Corporate social responsibility for the village in various

aspects such as: educational, religious, youth, street repairs, etc.

- Technical guidance in the form of provision of Assistant

Partnership through the core-plasma provides valuable lessons in engaging the community in the core business that is being run by the company. Programs that apply to farmers plasma is an indirect education on how to run this business. Expected relationships with smallholders to remain harmonious and mutually support each other.

Based on the observation of documents and visits to the field, it is known that the company has made the management of oil palm smallholder’s pattern very well. The relationship between the company and farmers established harmony. .


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Foreman with skill and good enough to ensure the plantation by KUD going well according agronomic principles, as in the case of: fertilizer, crop rotation, fertilizers rotation, treatments, etc.

- The development of cooperation also on employment opportunities for the surrounding community.

Until now, We noted there are not complaints from the public, both in terms of environmental damage due to the relatively remote location of the MCC Ramarama atauapun other losses. The problems that happened can usually be resolved quickly because of Communications intense every day, either directly or through officers to the leadership of the company in the KUD. So far there are no barriers in terms of communication. In itself there is a mechanism in KUD monthly meetings between farmer groups with KUD officials to discuss various issues. At the meeting the ever-present corporate officer stationed at KUD. Society did not mind if the companies get RSPO certificate because of the aspect of community development has proven successful.


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:

PT. RAMAJAYA PRAMUKTI

MUTUAGUNG LESTARI

Head of Environmental Departement

Lead Auditor

Ismu Zulfikar

Octo HPN Nainggolan

Thursday, November, 08th, 2012

Thursday, November, 08th, 2012


ASSESSMENT REPORT


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

No Institution/Department Address Phone/Email Form of Contact

Date of Contact

1 Environmental Agency, District of Kampar

Bangkinang - Interview

05-Nop-2012

2 Manpower Agency, District of Kampar


05-Nop-2012

3 Plantation Agency, District of Kampar


05-Nop-2012

4 Kayu Aro Village Desa Kayu Aro - Interview 02-Nop-2012


ASSESSMENT REPORT


Annex 2. Audit Plan

DATE Oktober, 31 – November, 03, 2012

PLANNED TIME

ACTUAL DURATION

PROCESSES / CLAUSES TO BE AUDITED AUDITOR

31.10.2012 06.00-08.30 09.00-12.00

14.00-15.00 15.00-17.00

06.00-08.30 09.00-12.00

14.00-15.00 15.00-17.00

Travelling Jakarta to Pekan Baru Pekan Baru to Site Opening Meeting Document Review / Observation :

All Team

01.11.2012 08.00-12.00

14.00-17.00

08.00-12.00

14.00-17.00

Document Review / Observation : Verification of Main Assessment / Observation :

All Team

02.11.2012 08.00-12.00

14.00-17.00

08.00-12.00

14.00-17.00

Field Observations to the PT Ramajaya Pramukti POM 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; Supply Chain Implementation. Continued for field observations (Interview with local villagers)

All Team

03.11.2012 08.00-12.00

14.00-17.00

08.00-12.00

14.00-17.00

Field Observations (Estate) Nursery, Land Preparation, manuring, spraying, harvesting, FFB Transportation, land application. Clarification of findings

All Team

04.11.2012

08.00-17.00

08.00-17.00

Preparing Reprot

All Team

Noted: - Consultation public with the relevant agency in the Kampar District conducted together with PT. BWL at November, 05 th 2012.

- Closing Meeting conducted together with PT. Buana Wiralestari Mas on November, 09th 2012.


ASSESSMENT REPORT


Annex 3. Glossary

AAA : Agronomy Audit and Advisory

AMDAL : Analisis Mengenai Dampak Lingkungan (Social and Environmental Impact Assessment)

APD / PPE : Alat Pelindungan Diri (Personal Protection Equipment)

ASEAN : Association of South East Asian Nations

AVP : Assisstant Vice President

B3 : Bahan Beracun dan Berbahaya (Hazardous Material Waste)

BOD : Biological Oxygen Demand

CEO : Chief Executive Officer

CFA : Comment For Action

CPO : Crude Palm Oil

CBD : Convention on Biodiversity

ENDV : Environment Division

HCV : High Conservation Value

HGU : Hak Guna Usaha. (Land Use Permit)

ISBPR / HIRARC :

Identifikasi Sumber Bahaya, Penilaian, dan Pengendalian Resiko / Hazard Identification Risk Assessment and Risk Control

IUP : Izin Usaha Perkebunan. (Plantation Operation Licence)

IP : Identity Preserved

IPAL / WWTP : Instalasi Penyaluran Air Limbah / Waste Water Treatment Plant

JAMSOSTEK : Jaminan Sosial Tenaga Kerja (Social Assurance of Labor)

Jankos / EFB : Janjangan Kosong / Empty Fruit Bunch

K3 / OHS : Keselamatan dan Kesehatan Kerja / Occupational Health and safety

KER : Kernel Extarction Rate

LC : Land Clearing

MAA : Mill Audit Advisory

MB : Mass Balance

NC : Non Comformance

OIA : Operations Internal Audit

OER : Oil Extarction Rate

P2K3 :

Panitia Pembina Keselamatan dan Kesehatan Kerja (Occupational Safety and Health Committee)

PC : Production Controller

PHT / IPM : Pengendalian Hama Terpadu / Integrated Pest Management

PK : Palm Kernel

PKS / POM : Pabrik Kelapa Sawit / Palm Oil Mill

PSM : Perkebunan Sinarmas

RBKE : Ramabakti Estate

RJP : Ramajaya Pramukti

RRME : Ramarama Estate

RRMM : Ramarama Mill

RC : Region Controller

RKL/RPL : Rencana Kelola Lingkungan/ Rencana Pemantauan Lingkungan. (Environmental Management Plan/ Environment Monitoring Plan)

ASA-01 : Surveillance 1

SMARTRI : Smart Reseach Institute


ASSESSMENT REPORT


SOP : Standart Operational and Procedure

ST 2 : Stage 2

TBS / FFB : Tandan Buah Segar / Fresh Fruit Bunches

UKL/UPL : Upaya Kelola Lingkungan/ Upaya Pemantauan Lingkungan. (Environmental Management Efforts/ Environmental Monitoring Efforts)

VPA : Vice President Agronomy

VPM : Vice President Manufacture