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TABLE OF CONTENTS 1 INTRODUCTION ........................................................................................................................ 3

1.1 Background .............................................................................................................................. 3 1.2 Dispute resolution ..................................................................................................................... 3

2 VERIFICATION CONCLUSIONS ............................................................................................... 4 2.1 Auditor Recommendation ......................................................................................................... 4 2.2 New Non-conformity Report (NCRs) as a Result of This Audit ................................................ 4 2.3 Observations .......................................................................................................................... 18 2.4 Actions Taken by Organization Prior to Report Finalization ................................................... 20 2.5 Notes for Next Audit ............................................................................................................... 20

3 AUDIT PROCESS .................................................................................................................... 20 3.1 Description of AuditProcess ................................................................................................... 20 3.2 Audit Team ............................................................................................................................. 20 3.3 Audit Schedule ....................................................................................................................... 21 3.4 Persons Interviewed ............................................................................................................... 21

4 ORGANIZATION INFORMATION ............................................................................................ 22 4.1 Primary Contact for Organization Seeking Verification .......................................................... 22 4.2 Billing Contact ........................................................................................................................ 22 4.3 Location Where Relevant Records will be kept ...................................................................... 22 4.4 On-Line Public Information ..................................................................................................... 22

5 VERIFICATION SCOPE ........................................................................................................... 23 5.1 Scope Description .................................................................................................................. 23 5.2 Site Details: Processing, Trade and Wholesalers .................................................................. 23 5.3 Site Details: Forest Management Enterprises (FMEs) ........................................................... 23 5.4 Product Group Details ............................................................................................................ 24 5.5 Information onSuppliers NOT Included in the Scope of Verification ...................................... 25


1 INTRODUCTION The purpose of this report is to document conformance with the requirements of the VER-04 SmartWood Verification of Legal Compliance (VLC) Generic Standard, Version dated 18 January 2010, of PT Wijaya Sentosa, hereafter referred to as “Organization”. The report presents the findings of SmartWood auditors who have evaluated Organization systems and performance against the applicable standard(s). Section 2 below provides the audit conclusions and any necessary follow-up actions by the Organization through Corrective Action Requests (CARs). Section 3 describes the audit process and Section V defines the scope of the assessment (including organization and non-organization suppliers of raw or processed material). Additional comments about the audit: This is a VLC Assessment for the organization. The scope of verification is an FMU owned by the Organization called PT Wiajaya Sentosa, which formally took over the FMU from PT Wapoga Mutiara Timber Unit I in January 2013. The FMU harvest several species as listed in Section 5.4. The Organization holds legal permit for logs collecting point (TPn) in each felling compartment and forest logyard (TPK) as well as the loading point which is located at sea (log pond). The logyards and forest gate cannot be considered as multi-site since there is no processing take place and the ownership of the logs does not change during transportation of logs from harvesting blocks to the forest gate. The supervision of logs have also been handled by both the Organization and government official responsible ensuring that no illegally harvested wood is mixed with the legal wood from the Organization.

1.1 Background

The Rainforest Alliance’s SmartWood program was founded in 1989 to verify responsible forestry practices and now focuses on providing a variety of certification and verification auditing services. The SmartWood legality verification services are applicable to single Forest Management Enterprises (FMEs), wood processing and trading companies as well as complete or parts of supply chains involving both FMEs and processing industry. Verification of Legal Originaudits evaluate that the forest source of the wood has obtained the license to harvest, acquired planning approvals and permits, paid the required taxes, royalties and/or harvesting fees, complies with transport and trade regulations and maintained a chain of custody system. Verified Legal Compliance audits evaluates that the forest source is in conformance with the VLC standard and in compliance with applicable laws relating to environmental protection, wildlife, water and soil conservation, harvesting rules and practices, worker health and safety, and fairness to communities. VLC thus review compliance to a broad range of legal requirements pertaining to forestry in the region in question. For wood processing industry and trade organizations the verification include verification that applicable trade, transport and registration requirements are met, including taxation and royalty payments as well as verifying that a chain of custody system is maintained from a verified supply of wood (either VLO or VLC as defined above). For multi-site verification of whole or parts of supply chains all sites will be required to maintain a CoC system to track and document supply of wood from the forest source through all downstream entities in a defined supply chain.

1.2 Dispute resolution

If SmartWood clients encounter organizations or individuals having concerns or comments about Rainforest Alliance/SmartWood and our services, these parties are strongly encouraged to contact SmartWood Headquarters directly. Formal complaints or concerns should be sent in writing.


2 VERIFICATION CONCLUSIONS The following section contains the conclusions of the audit as well as a list of applicable Corrective Action Requests issued during the audit. The CARs are issued to each individual site included in the scope of the verification. In the below the relevant CARs are listed for each site included in the scope.

2.1 Auditor Recommendation

Based on Organization’s conformance with the Rainforest Alliance/SmartWood legality verification requirements, the auditor makes the following recommendation:

Verification approved: Upon acceptance of CAR(s) issued below

Verification not approved: Conformance with Major CAR(s) required

Additional comments:

Note: CARs describerequired actions or improvements that address ORGANIZATION non-conformances identified during audits. CARs include defined timelines for completion. Major CARs issued during assessments/ reassessments shall be closed prior to issuance of verification statement. Major CARs issued during audits shall be closed within timeline or result in suspension.

2.2 New Non-conformity Report (NCRs) as a Result of This Audit

NCR#: 01/13 NC Classification: Major Minor X Issued for: PT Wijaya Sentosa Standard & Requirement: VER-04 SmartWood Generic Standard for verification of Legal

Compliance Version: 18January 20102.4.2 Report Section: Appendix B Description of Non-conformance and Related Evidence: If legally required, tree species found within the FMU for which felling is prohibited shall be listed in operational plans, identified on maps, and marked on the ground. The Organization has had a list of production species and protected species found within the FMU. The audit team has reviewed the LHC, tree map, BKT, as well as conduct field observation and found that in general, trees prohibited from felling have been identified on map (tree map 1:2,000) and they have already marked on the ground (yellow tag). However, in one block, auditor found that protected trees and core trees have been excluded from harvesting operation by only marking the harvestable trees. These trees should be specifically marked as protected trees and core trees on maps and on the ground to avoid mistake.

Corrective Action Request: Organization shall implement corrective actions to demonstrate


conformance with the requirement(s) referenced above. Note: Effective corrective actions focus on addressing the specific occurrence described in evidence above, as well as the root cause to eliminate and prevent recurrence of the non-conformance.

Timeline for Conformance:

Prior to the next surveillance audit

Evidence Provided by Organization:

Pending

Findings for Evaluation of Evidence:

Pending

NCR Status: OPEN Comments (optional):


Compliance Version: 18January 2010Indicator 2.4.3 Report Section: Appendix B Description of Non-conformance and Related Evidence: Harvesting shall only be conducted within the authorized boundaries of FMU and shall not take place in areas where harvesting is prohibited or subject to restrictions.

The audit team visited the buffer zone boundary of the protected areas and found the FME had developeda skidding trail and logging road inside the buffer zone. The boundary with buffer zone is located at S 02° 40’ 39,0” and E 134° 20’ 04,4”. The FME explained to the auditor that the skidding trail and logging road was opened by the previous company and they only used the facility.

Corrective Action Request: Organization shall implement corrective actions to demonstrate conformance with the requirement(s) referenced above. Note: Effective corrective actions focus on addressing the specific occurrence described in evidence above, as well as the root cause to eliminate and prevent recurrence of the non-conformance.


Prior to the next surveillance audit.


Activity Report of Recovery Planting in Bufferzone Area.


During report writing, the organization has provided document Activity Report of Planting Recovery of Bufferzone Area that stated that the organization has conducted recovery planting 0.25 ha of former skidding road in bufferzone area adjacent with compartment AV33. Auditor has reviewed the evidence, however this standard required consistent implementation in the field and field audit is required to ensure the organization has fully met with the standard. Thus, NCR 02/13 is still OPEN.




Compliance Version: 18January 2010Indicator 2.4.4 Report Section: Appendix B Description of Non-conformance and Related Evidence: If legally required, the management plans and maps shall include identification of areas within the FMU where harvesting is not permitted or subject to legal restrictions (e.g. riparian buffers, slopes exceeding a set gradient, etc.).

The audit teamfound that the water reservoir/swamp area/embung air location (compartment AR 32 SE 02° 41’ 41,0’ and E 134° 19’ 53.9’) are not depicted on the working plan map and its buffer zone boundaries had not been marked in the field. Thus an NCR is issued.





Activity Report of Bordering Activity at water reservoir/swamp area/embung air in compartment of AQ 32.


During report writing, the organization has provided document Activity Report of Bordering Activity at water reservoir that stated that the organization has conducted bordering activity at water reservoir in compartment AQ 32 BKT 2013 (7.5 ha). This report is dated 01 Apr 2013 and created by Asrul Rasid and the team (delineation activity to secure embung air area is reflected on the map). Auditor has reviewed the evidence, however the result is not yet included in the management plan and maps, thus, NCR 02/2013 is still OPEN


NCR#: 04/13 NC Classification: Major X Minor Issued for: PT Wijaya Sentosa Standard & Requirement: VER-04 SmartWood Generic Standard for verification of Legal

Compliance Version: 18January 2010Criterion 4.1 Report Section: Appendix B Description of Non-conformance and Related Evidence: Organization shall be legally registered and licensed as a business and approved for conducting the defined business activities with the relevant authorities as required by law.

Registered Inter Island Timber Trader (PKAPT) has not been obtained.The FME has submitted a letter to Bupati Teluk Wondama to request recommendation as a Registered Inter Island Timber Trader (PKAPT), letter No. 003/WS/PH/I/2013 dated on 28 January 2013. As PKAPT document has not beenobtained by the Organization, an NCR is issued.

Corrective Action Request: Organization shall implement corrective actions to demonstrate


conformance with the requirement(s) referenced above. Note: Effective corrective actions focus on addressing the specific occurrence described in evidence above, as well as the root cause to eliminate and prevent recurrence of the non-conformance.


Prior to issuance of verification statement


1. Application for issuing recognition letter as PKAPT from Head of Trade Agency Kota Sorong to Head of Industry and Trade West Papua Province (No.: 514/79/VI/2013, dated on 12 June 2013)

2. Recommendation from Head of Industry and Trade West Papua Province for getting PKAPT from Directorate General of Domestic Trade, Ministery of Trade (No.: 510/275/2013, dated on 14 June 2013)


During report writing, the organization has provided documents above and auditor has reviewed the evidence, however since the PKAPT still has not been issued, NCR 03/2013 is still OPEN



Compliance Version: 18January 2010Criterion 4.6 Report Section: Appendix B Description of Non-conformance and Related Evidence: The terms of wood and wood products sales agreements or contracts shall be adhered to.

At the time of assessment,sales agreements or contracts were not available for review.





1. Cooperation Agreement between PT. Sinar Wijaya Plywood Industries and PT. Wijaya Sentosa

2. Trade of Logs Agreement, invoice, tax invoice, SKSKB & DKB recapitulation (from February – May 2013)


By the time of report writing, the FME provided to the auditor sales agreements between PT. Sinar Wiaya Plywood Industries and PT. Wijaya Sentosa No. 004/SWPI/SPKKB/I/2013 dated 28 January 2013. The agreement stipulate the volume of sales, reference to sales regulation, requirement to follow VLC standard, and grading agreement.

NCR Status: CLOSED Comments (optional):



Compliance Version: 18January 20107.1.1 Report Section: Appendix B Description of Non-conformance and Related Evidence: Occupational Health and Safety requirements shall be met. Based on field observation, most of employees were not using high-visibility vests, hard hats and rubber boot during the assessment. The FME has policlinic with nurse at Simei Basecamp. And the auditor team reviewed documents of:

• Work Safety and Health Procedure (SOP K3)

• Emergency Handling Procedures (Prosedur Penanganan Darurat)

• Procedure of Recovery from Emergency Situation and Emergency Situation Evaluation (Prosedur Rencana Pemulihan Keadaan Darurat dan Evaluasi Keadaan Darurat)

• Waste /Dump Management Procedure (Prosedur Penanganan Limbah) However, the document is very normative and not specifically provides technical guidance that could provide effective implementation in the field.





1. SOP Work Health and Safety (K3) 2. List of Providing PPE, Quarterly Report of K3 (No: 13/K3/WS-

SIM/V/2013, dated on 1 May 2013) Findings for Evaluation of Evidence:

By the time of report writing, the FME provided the auditor with Procedure of Work Health and Safety (K3), list of providing PPE and Quarterly Report of K3. Based on review of the new evidences, auditor found that the SOP has provided technical guidance for effective implementation and the FME has provided their employee with safety equipment. Based on these findings, NCR 06/13 could be CLOSED.



Compliance Version: 18January 2010Indicator COC 1 Report Section: Appendix B Description of Non-conformance and Related Evidence:

Organization shall define CoC system responsibilities and appoint staff positions, including the following:


a. One overall responsible person shall be designated for the CoC control system; and, b. Individual responsible persons shall be designated for each part of the CoC control system..

The FME has not appointed formally one staff who will be responsible for the overall CoC control system. Individual responsible persons have not been designated clearly for each part of the CoC control system as stated on each part of harvesting activity procedure. So, it is concluded that the Organization does not conform to this criterion.





1. Director Decree No. 006/SK-JKT/WS/III/2013 and No. 007/SK-JKT/WS/III/2013 on appointment of Mr. Sugijanto (MR-1) and Mr. Maman (MR-2) as management representative for CoC..

2. Description of task and responsible for MR-1 and MR-2. Findings for Evaluation of Evidence:

During report writing, the FME has appointed Mr. Sugijanto and Mr. Maman as responsible person for overall CoC control system. However, the FME has not define responsible person for each part of CoC system this NCR is still OPEN.



Compliance Version: 18January 2010Indicator COC 2 Report Section: Appendix B Description of Non-conformance and Related Evidence: Organization shall develop and maintain an up-to-date documented control system, procedures and/or work instructions to ensure implementation of all applicable CoC standard requirements.

Based on interview and documents review, the FME has developed Procedure for VLC and SOP related with harvesting (that include timber administration) and auditor found that this document has included procedure for implementation of CoC standard, however the document has not included procedure that ensure maintain and up to date document control system. Thus, an NCR is issued.



Prior to the issuance of the verification statement

Evidence Provided by 1. Procedures of Management Review (WS/Tinjau/01, issued in


Organization: January 2013) 2. Procedures of Regulations identification and control (WS/PRC/05)


By the time of report writing, the FME provided to the auditor procedures of management review and regulations identification and control system. The procedures stipulate that the FME conduct periodic compliance review to the requirements standard of certification body, and to close NCR and to ensure that revailing regulations could be conducted effectively. Thus NCR 08/13 is CLOSED.



Compliance Version: 18January 2010Indicator COC 3 Report Section: Appendix B Description of Non-conformance and Related Evidence: Organization shall develop and implement procedures for addressing non-conformances (corrective action requests, observations) identified by auditors.

The FME has not developed and implemented procedures for addressing non-conformances (corrective action requests, observations) identified by auditors. Therefore an NCR is issued.





Procedures of Non Compliance and Corrective Action Request (WS/LATIH/01, Revision 01, issued in May 2013).


During report writing, the organization has provided Procedures of Non Compliance and Corrective Action Request. The procedures states that based on the corrective action request, Camp Manager and Management Representative would conduct the follow up with the Head of Department, including the top management in Jakarta. The follow up with the Management in Jakarta is described in SOP of Management Review where the management review is conducted at least once a year or two month after internal audit. Auditor has reviewed the evidence and since this is assessment hence auditor conclude that the organization has met with the standard. Thus, NCR 09/13 is CLOSED.




Compliance Version: 18January 2010Indicator COC 4 Report Section: Appendix B Description of Non-conformance and Related Evidence: Organization shall develop and implement procedures for internal auditing of its systems as related to the requirements in this standard.

The FME has not developed and implemented procedures for internal auditing of its systems as related to the requirements in this standard.





Procedures Internal Audit (WS/INTERN/01, revision 0, issued January 2013).


By the time of report writing, the organization has provided Procedures of Internal Audit. The procedure states that the FME has to ensure that certification system have been implemented consistently through the internal audit mechanism as an effort to improve its performances continuously, and to ensure the corrective recommendation can be followed up by top management. Thus NCR 10/13 can be CLOSED.



Compliance Version: 18January 2010Indicator COC 5 Report Section: Appendix B Description of Non-conformance and Related Evidence: Organization shall develop training requirements and implement training as follows: a. All applicable staff and workers shall be trained according to the CoC procedures; and, b. Records shall be kept to demonstrate training has taken place.

The audit team found that the FME has not developed training program related with it’s forest management activities based on their training needs analysis system. There are not any implementation of trainings.






1. Procedures of Training for Employees (WS/LATIH/01, revision 01, issued in May 2013)

2. Socialization Report of Implementation VLC, VLK, and FSC Certification (attached by anttendance list).


During report writing, the organization has provided Procedures of Training for Employees. The procedure‘s objective is to ensure the training activities could be implemented correctly based on training need assessment for employees, and to give guidance for training implementation through both inhouse or outhouse training. It’s found that the FME has conducted socialization of Implementation VLC, VLK, and FSC Certification. Thus, NCR 11/13 is CLOSED.


NCR#: 12/13 NC Classification: Major X Minor Issued for: PT Wijaya Sentosa Standard & Requirement: VER-04 SmartWood Generic Standard for verification of Legal

Compliance Version: 18January 2010Indicator COC 9 Report Section: Appendix B Description of Non-conformance and Related Evidence: FME procedures and practices shall provide effective control of forest products from standing timber until ownership is transferred at the forest gate.

The Organization has developed several procedures related with a tracking system or administration of forest products referring to the enacted regulations from standing timber until ownership is transferred at the forest gate as described in the SOP Inventarisasi Tegakan Sebelum Penebangan (ITSP/Cruising) and SOP Harvesting. The audit team has checked the traceability of the system starting from 20 logs in logyard (TPK) – Bon Trip – LHP – Buku Ukur – LHC – compartment’s tree map (scale 1:2000) and found that 18 logs of them have not been included in LHP (they were still recorded in Buku Ukur). All logs were successfully traced back on tree map but 6 logs of them have symbol as prohibited cutting trees on the map. The audit team also checked some stumps in compartment AT 32 which have tree number of 3789, 3800, 3802 (red label attached on stumps). Based on tree map, these 3 trees actually should not be cut because they have symbol as prohibited cut trees. They also can’t be traced into Buku Ukur and LHP. The audit team also saw that some of stumps in compartment AT 32 were found with no red label attached and tree map of each compartment was not completed by geographical coordinates. This provides evidence that activities of timber cruising (including preparation of tree map) and harvesting were not implemented appropriately and the Organization has not provided effective control of forest products from standing timber until ownership is transferred at the forest gate..


Timeline for Prior to the issuance of verification statement


Conformance: Evidence Provided by Organization:

1. General Guidance of VLC and FSC Implementation, issued on 16 January 2013.

2. Procedure of Harvesting (WS/PROD/01, revision 1, issued in May 2013).

3. Records of COC monitoring conducted by FME at compartment AX 32 and AV 36 BKT 2013.


By the time of report writing, the organization has provided General Guidance of VLC and FSC Implementation, Procedures of Harvesting, and Records of COC monitoring conducted by FME. It’s stated in General Guidance and Procedure Harvesting the FME’s vision, mission, and commitments to conduct transformation from logging company to become a Forest Management Enterprises, and hence will use VLC standard of FSC as one of reference. As an effort to comply with this indicator, the FME has conducted COC monitoring at compartment AX 32 and AV 36. From the COC monitoring records, 3 trees harvested at AX 32 and 4 trees harvested at AV 36 could be traced from documents LHC, Buku Ukur, LHP to the stumps and tree maps. Auditor has reviewed the evidence, however this standard required consistent implementation in the field and field audit is required to confirm the implementation. Thus, NCR 11/2013 is still OPEN.



Compliance Version: 18January 2010Indicator COC 12 Report Section: Appendix B Description of Non-conformance and Related Evidence: A system shall exist to identify FME products as verified (e.g. through documentation or marking system) at the forest gate.

The FME does not have a system to identify FME products as verified (e.g. through documentation or marking system) at the forest gate.





1. Work Instruction of Identification for Wood production (IK-PROD-01-08-00, issued in May 2013).

2. Work Instruction of Deveoping Tree Map (IK-PRC-02-03-00, issued in Jan 2013)

3. Work Instruction of Felling (IK-PROD-01-01-00, issued in


Jan2013). 4. Work Instruction of Skidding (IK-PROD-01-02-00, issued in Jan

2013) 5. Procedure of Wood Scaling and Grading (WS/PROD/03, Revision

0, issued in January 2013). 6. Work Instruction of Wood Collecting at TPn (IK-PROD-01-06-00,

issued in May 2013) 7. Work Instruction of Wood Collecting in Logyard/TPK (IK-PROD-

01-13-00, issued in May 2013). 8. Work Instruction of Calculation and Payment of PSDH and DR

(IK-PROD-01-11-00, issued in May 2013) Findings for Evaluation of Evidence:

By the time of report writing, the organization has provided procedures and work instruction above. Those procedures and work instructions describe a system to identify FME products as verified through documentation and marking. Verified products at forest gates will be marked by using red label put on the logs.While the implementation of the procedures needs to be confirmed in the field, and the assessment team considers that the system is sufficient. thus NCR 13/13is CLOSED



Compliance Version: 18January 2010Indicator COC 15 Report Section: Appendix B Description of Non-conformance and Related Evidence:

Organization shall use a distinguishing mark (e.g. the verification code) to identify products as verified during processing and transport.

The FME does not have procedure to use a distinguishing mark to identify products as verified during processing and transport.






2. Procedure of Wood Scaling and Grading (WS/PROD/03, Revision 0, issued in January 2013).

3. Work Instruction of Wood Collecting in Logyard/TPK (IK-PROD-


01-13-00, issued in May 2013). Findings for Evaluation of Evidence:

During report writing, the organization provided procedures and work instruction above. Those procedures and work instruction stipulates that verified logs will be identified with red label. Thus NCR 14/13 is CLOSED



Compliance Version: 18January 2010Indicator COC 23 Report Section: Appendix B Description of Non-conformance and Related Evidence: Organization shall include claim information on sales invoices and shipping documents, including the following: a. A description of the product as verified by SmartWood (“SW VLO” or “SW VLC”); b. The quantity/volume for each product; and, c. The SmartWood verification code (SW-VLO-00XXXX or SW-VLC-00XXXX).

The Organization does not have procedure to include the required information on their invoice and shipping documents.







3. Work Instruction of Wood Collecting in Logyard/TPK (IK-PROD-01-13-00, issued in May 2013).


During report writing, the organization has provided procedures and work instruction above. Auditor has reviewed the evidence, however it’s found that claim information on sales and shipping documents have not stated in those procedures and work instruction. Thus NCR 15/13 is still OPEN



Compliance Version: 18January 2010Indicator COC 24


Report Section: Appendix B Description of Non-conformance and Related Evidence: Organization shall have in place procedures to ensure that all VLO or VLC verification claims and mark use follow the applicable SmartWood policies: a. On-product labeling shall not be permitted; b. Organization shall be permitted to use the Rainforest Alliance verification mark off-product only in

combination with a qualifying and approved Verification Statement; c. Organization shall be permitted to use the verification code (SW-VLO-XXXXXX or SW-VLC-XXXXXX)

on products only to permit traceability in production; and, d. Use of the Rainforest Alliance verification mark in promotion of the Organization’s verification shall not

imply that any aspects are included which are outside the scope of the verification.

At the time of the assessment, the Organization didnot have procedure to ensure that all VLC verification claims and mark use follow the applicable SmartWood policies as required by this criterion.



Prior to the next next surveillance audit






By the time of report writing, the organization has provided procedures and work instruction above. Auditor has reviewed the evidence, however it’s found that those procedures and work instruction have not stipulated yet that all VLO or VLC verification claims and mark use follow the applicable SmartWood policies. Thus NCR 16/13 is still OPEN.



Compliance Version: 18January 2010Indicator COC 25 Report Section: Appendix B Description of Non-conformance and Related Evidence: Organization shall have procedures in place to ensure and demonstrate submission of all Rainforest Alliance/SmartWood claims to SmartWood for review and approval prior to use.

At the time of the assessment, the Organization did not havea procedure to ensure and demonstrate submission of all Rainforest Alliance/SmartWood claims to SmartWood for review and approval prior to useas required by this criterion.










During report writing, the organization has provided procedures and work instruction above. Auditor has reviewed the evidence, however it’s found that those procedures and work instruction have not stipulated yet the provision to ensure and demonstrate submission of all Rainforest Alliance/SmartWood claims to SmartWood for review and approval prior to use. Thus NCR 17/13 is still OPEN



Compliance Version: 18January 2010Indicator COC 26 Report Section: Appendix B Description of Non-conformance and Related Evidence: Organization shall have procedures in place and demonstrate that all review and approval correspondence with SmartWood for verification claims is kept on file for a minimum of five (5) years.

At the time of the assessment, the Organization did not have procedurein place and demonstrate that all review and approval correspondence with SmartWood for verification claims is kept on file for a minimum of five (5) yearsas required by this criterion.





General Guidance of VLC and FSC Implementation, issued on 16 January 2013.


By the time of report writing, the organization has provided General Guidance of VLC and FSC Implementation. The chapter of Implementation Scope and Documentation System states that all documents related with VLC will be kept on file for a minimum of five (5) years. Thus, NCR 18/13can be CLOSED.



2.3 Observations

Note: Observations are issued for the early stages of a problem which does not of itself constitute a non-conformance, but which the auditor considers may lead to a future non-conformance if not addressed by the organization; observations may lead to direct non-conformances if not addressed.

OBS issued for: PT Wijaya Sentosa OBS 01/13 Reference Standard & Requirement: Criterion 2.3 Legally prescribed dimension restrictions and annual allowable cut or production quotas shall clearly be included in applicable planning and operational documents and adhered to in practice.

Description of findings leading to observation:

Based on field observation and review of cruising report, measurement book and production report, auditor found that the FME has conformedwith dimension restriction and annual allowable cut. However, auditor found that the inventory record was not consistent. Auditor found tree No. 3069 of AV 33 has diameter of 42 cm written in the red label attached at tree stump, while it clearly has physical of more than 50 cm. Review with LHC, Buku Ukur and LHP shows that the tree has diameter of > 50 meter. The tree name in the red label was also difficult to read. Thus Observation 01/13 is issued. Observation: The FME shouldmake accurate inventory recording, including the information on red label.

OBS issued for: PT Wijaya Sentosa OBS 02/13 Reference Standard & Requirement: Indicator 2.5.1 Description of findings leading to observation:

The Organization has legally approved Social and Environmental Impact Assessment (AMDAL) as follows:

1. Studi ANDALhak Pengusahaan Hutan PT Wapoga Mutiara Timber Unit I Kabupaten Manokwari Irian Jaya Province SK HPH No. 744/Kpts-II/1990 on area of 178.800 hectares, Jakarta January 1992. It’s approved by Komisi Pusat AMDAL Departemen Kehutanan on 28 April 1992.

2. Plan of Environmental Monitoring of PT Wapoga Mutiara Timber Unit I Concession Irian Jaya Province, Manokwari District, SK Menhut No. 744/KPTS-II/1990 on area of 178.800 hectares. Jakarta. May 1995. It’s approved by Komisi Pusat AMDAL Departemen Kehutanan on 12 June 1995.

Because the FMU area has been reduced into 130,755 ha and the ownership has beenhanded over to PT Wijaya Sentosa, it is not clear whether the AMDAL prepared by PT Wapoga Mutiara Timber is valid to be used by Wijaya Sentosa. Observation: The FME should consult Badan Lingkungan Hidup Daerah (BLHD) whether the FME need to revise the


AMDAL or not, and should follow the BLHD’s advice as soon as possible.

OBS issued for: PT Wijaya Sentosa OBS 03/13 Reference Standard & Requirement: Criterion6.2 Description of findings leading to observation:

The FME has developed SOP related with protected areas and protected species, namely: 1) SOP Protected Area Monitoring, 2) SOP Management of River Buffer zone, 3) SOP Identification of Endangered, Rare, and Threatened Flora and Fauna Species. The FME has implemented boundary delineation of some protected areas (riparian buffer zone of river and spring, buffer zone of protected forest, protected slope ≥ 40° area). The audit team has verified the report of river buffer zone delineation and protected area of slope ≥ 40° delineation, and confirmed these protected areas in the field. The border of these protected area have been marked with red paint on tree stems along the border. Furthermore, the FME has conducted identification of tree species within the FMU in cooperation with Forestry Research and Development Agency. The species have been classified into production species and protected species based on SK Menteri pertanian No. 54/Kpts/Um/2/1972 dated on 5 February 1972 and local regulation. However, identification of non-tree protected flora and fauna species has not been conducted, so an OBS is issued.

Observation: The FME should identify also others protected flora and fauna species.


There was no finding of hunting by employees during the assessment period, but the audit team found a local community who hunt wild dove/ kum kum for daily needs.Some of FME’s employees come from local communities, and they may be engaged in hunting activities, too. Auditor also found that the FME has not developed a policy or company regulation which prohibit employees from hunting and trading wildlife without permits from the FME. Therefore an OBS is issued.

Observation: The FME should develop a policy or company regulation which prohibit employees from hunting and trading wildlife without permits from the FME, as well as conduct socialization to employees and local communities about hunting, including prohibitation of protected species hunting.


The FME has not identified yet illegal or unauthorized activities. In field observation, the audit team found a potential illegal activity of hunting of wildlife which is protected by regulation. Therefore an OBS is issued.

Observation: The FME should identifyillegal or unauthorized activities and make socializationto communities and relevan parties.


2.4 Actions Taken by Organization Prior to Report Finalization

During the report writing period the FME provided additional evidence to close some of the findings. The evidence has been evaluated and incorporated in this report. Some NCRs have been closed.

2.5 Notes for Next Audit

Before the company gets verification statement, CAR verification audit (CVA) needs to be conducted to evaluate additional evidence of conformance to close the Major NCRs issued in this Assessment and to reduce the number of minor NCRs to less than six.

3 AUDIT PROCESS

3.1 Description of AuditProcess

On 4 April 2013, the audit team left for Manokwari and stayed overnight there. The audit team arrived at the Organization’s camp at log yard (TPK) and log pond (KM 0) on 5 April 2013 at 3.00 pm. On 5April 2013, the audit team started the opening meeting at 4.00 pm. The opening meeting was attended by the Organization’s staff and Camp Manager and was followed by document review and interview with staffs. On 6 April 2013, the audit team conducted field visit to the Organization’s harvesting block for BKT 2013, protected areas (riparian buffer zone of river and source of water at compartment), log yard (TPK), and conducted interview with staffs and workers responsible for forest management activities, and also with local communities. The audit team held the closing meeting and discussion of the temporary findings with the main staff of the Organization at 12.00 pm until 2.00 am on 7 April 2013. On 7 April 2013, the audit team left back to Wassior and Manokwari. On 8 April 2013 in the morning, the audit team went back to Jakarta.

3.2 Audit Team

Auditor(s) Qualifications, Affiliations Bambang Mardi Priyono Bambang Mardi Priyono has a Bachelor degree in Forest Product

Technology from Bogor Agriculture University (IPB). He also has Master degree in Natural Resources and Environmental Management (2004). His expertise is in forestry aspects and timber legality verification, as well as Natural Resources and Environmental Management aspects. He has experience with numerous projects related to sustainable forest management (PHPL) and timber legality certification (VLK), joined with some Certification Body (SGS, Sucofindo ICS, PT Sarbi Moerhani Lestari).From the end of 2011 until now, he has worked for PT Hatfield Indonesia as Senior Forestry Sepecialist.

Happy Tarumadevyanto Happy graduated from Bogor Agricultural University and


continued his experience with UNDP Program on Asia Young Leaders and Governance (AYLG) in 2006 to support his expertise in developing environmental governance issue. Another knowledge management in Environmental Leadership Program (BEAHRS ELP – with School of Natural Resources of Berkeley University) has made his experience strengthened in environmental-related and governance activities. Recent experience with Forest governance Learning Group (FGLG) and ASEAN Social Forestry Network Secretariat has strengthened Happy’s expertise on climate change, social forestry and ground activities that is in association with implementation of mitigation and adaptation in ASEAN.

3.3 Audit Schedule

Date(s) Site(s) Main Activities 4 April 2013 Manokwari – Wassior –

Camp KM 0 Travel to the Organization

5 April 2013 Camp KM 0 (TPK/Log pond)

Opening Meeting, Document and records review, and interview with staff., workers and local communities.

6 April 2013 Harvesting Block 2013 (AV32, AV33, AS32, AT32), bufferzone area of river, spring, and protected forest, and log yard (TPK).

Field observation, Interview with workers and local communities, document review, closing meeting.

7 April 2013 Camp KM 0 – Wasior – Manokwari

Travel back to Wasior.

8 April 2013 Manokwari – Jakarta – Bogor

Travel back to home

3.4 Persons Interviewed

Name Position and Site Andi Taufik Husein D Manager of Forest Management (Camp Manager) Agus Murtiyoso Head of Certification Division, Jakarta Diah Ratna Purbowati Legal Staff, Jakarta Maman Head of Planning Division Philipus Andri Pujiantoro Head of Administration & Human Resources Asrul Rasid Hasibuan Head of Forest Restoration Division Ismail Eko Y Head of Research, Environmental and Social

Management Division Sugiono Section Head of Working Area Block and Survey of

Opening Forest Area (PAK dan Survey PWH) Supeno Section Head of Wood Administration (PUHH),

Felling and Extraction. Triono Cruising Head Nanda Sausan Head Section of Mapping Helpris Sitompul Scaling and Grading Head Fernando Nainggolan Log yard Head Hamka Shipping


Eko Setianto Social Management Section Marto Social Management Section Daniel Sawas Sumariae Excavator operator Moh. Sidik Nursery worker Nurdin Hunter, local people

4 ORGANIZATION INFORMATION

4.1 Primary Contact for Organization Seeking Verification

Primary Contact, Position: Sugijanto Soewadi Address: Menara BTN Lantai 19, Jl Gajah Mada No. 1 Jakarta 10130 Tel/Fax/Email: Telp.: 021 6308555

Fax: 021 63850679

Email:[email protected]

4.2 Billing Contact

Same as shown for primary contact

4.3 Location Where Relevant Records will be kept

Same as shown for primary contact

4.4 On-Line Public Information

Note: upon Verification, the SmartWood website posts and maintains details for organizations with the information in the table below at http://www.rainforest-alliance.org

Field Text Has this Information

Changed? Contact, Title: (Sales & Marketing)

Sugijanto Soewadi Yes No

Address: Menara BTN Lantai 19, Jl Gajah Mada No. 1 Jakarta 10130 Yes No

Tel/Fax/Email/Website: Telp.: 021 6308555 Fax: 021 63850679 Email: [email protected]

Yes No


5 VERIFICATION SCOPE

5.1 Scope Description

Scope Item Check all that apply to the Verification Scope Change in Scope (N/A for

Assessments)

Verification Type: Single Multi-site Primary Activity: Logging/FME Organization Legal Unit: Limited Liability Company (Perseroan Terbatas) Jurisdiction: Teluk Wondama Regency, West Papua, Indonesia Number of Sites Included in Scope:

1 (one)

Number of FMEs Included in Scope:

1 (one)

Comments:

5.2 Site Details: Processing, Trade and Wholesalers

N/A: No processing sites are included in the scope

5.3 Site Details: Forest Management Enterprises (FMEs)

N/A: No FMEs are included in the scope Name

Total Area

(Ha) Species included in scope

PT Wijaya Sentosa 130.755 Kelompok Meranti: Agathis (Agathis sp), Celthis (in identification process), Hopea (Euphoria malaccensis), Kenari/Sei (Astromia sp), Matoa daun kecil (Pometia pinnata Forst.f), Matoa daun lebar (Pometia pinnata Forst.f), Matoa tagoapajari (Pometia pinnata Forst.f), Merbau daun bening (Instia bijuga O.K), Merbau daun sirsak (Instia bijuga O.K), Mersawa (Cyathocalyx bancana), Nyato daun kecil (Artocarpus integer), Nyato mora (Calophyllum persimele), Pulai (Alstonia scholaris (L)R.Br), Pulai goniani (Alstonia scholaris (L)R.Br), Resak (Saccopetalum horsfieldii).

Kelompok Rimba Campuran: Bintangur daun besar (Calophyllum persimele), Bintangur daun kecil (Garcinia sp), Binuang daun besar (Octomeles sumatrana), Binuang daun kecil (Octomeles sumatrana), Bipa (Pterygota forbesii), Duabanga (Canarium villosum, Benn.), Jabon (Anthocephalus chinensis), Jambu daun kecil/Andori (Syzigium sp), Kayu Bugis/Mansarai (Koordersiodendron pinnatum (Merr) Blanco), Kayu Malas (Glochidion rubrum), Kayu susu (Ficus polyantha),


Kedondong (Spondias pinnata Kurz), Kelat/Poi (Orophea sp), Ketapang (Terminalia catappa), Lansat (Lansium domesticum), Medang/Awau (Litsea sp), Melur (Goioa sp), Pala Hutan/Kapis (Knema cinerea), Sengon (Paraserianthes falcataria), Sesendik (Haplolobus hussonii), Sukun daun kecil/Andai (Artocarpus comunis), Sukun daun lebar (Artocarpus comunis), Terentang kulit putih (Camnosperma brevipetialatum).

Kayu Indah: Dahu (Aglaia argentea), Cempaka (Michelia champaca L.).

Total Area 130.755

5.4 Product Group Details

Site (name and location) Inputs to Product Groups (species) Product

Groups Product Type

(FSC-STD-40-004a) PT Wijaya Sentosa Agathis (Agathis sp),

Celthis (in identification process), Hopea (Euphoria malaccensis), Kenari/Sei (Astromia sp), Matoa daun kecil (Pometia pinnata Forst.f), Matoa daun lebar (Pometia pinnata Forst.f), Matoa tagoapajari (Pometia pinnata Forst.f), Merbau daun bening (Instia bijuga O.K), Merbau daun sirsak (Instia bijuga O.K), Mersawa (Cyathocalyx bancana), Nyato daun kecil (Artocarpus integer), Nyato mora (Calophyllum persimele), Pulai (Alstonia scholaris (L)R.Br), Pulai goniani (Alstonia scholaris (L)R.Br), Resak (Saccopetalum horsfieldii).

Round Logs W1.1

Kelompok Rimba Campuran: Bintangur daun besar (Calophyllum persimele), Bintangur daun kecil (Garcinia sp), Binuang daun besar (Octomeles sumatrana), Binuang daun kecil (Octomeles sumatrana), Bipa (Pterygota forbesii), Duabanga (Canarium villosum, Benn.),

Round Logs W1.1


Jabon (Anthocephalus chinensis), Jambu daun kecil/Andori (Syzigium sp), Kayu Bugis/Mansarai (Koordersiodendron pinnatum (Merr) Blanco), Kayu Malas (Glochidion rubrum), Kayu susu (Ficus polyantha), Kedondong (Spondias pinnata Kurz), Kelat/Poi (Orophea sp), Ketapang (Terminalia catappa), Lansat (Lansium domesticum), Medang/Awau (Litsea sp), Melur (Goioa sp), Pala Hutan/Kapis (Knema cinerea), Sengon (Paraserianthes falcataria), Sesendik (Haplolobus hussonii), Sukun daun kecil/Andai (Artocarpus comunis), Sukun daun lebar (Artocarpus comunis), Terentang kulit putih (Camnosperma brevipetialatum).

Kayu Indah: Dahu (Aglaia argentea), Cempaka (Michelia champaca L.).

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5.5 Information onSuppliers NOT Included in the Scope of Verification

N/A: there are no verified suppliers.

verification of l egal compliance - rainforest alliance · pdf filethe audit teamfound that...

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