roundtable on sustainable palm oil€¦ · agrotama nusantara palm oil plantation, east kutai –...

Roundtable on Sustainable Palm Oil Public Summary Report

Report no: 18502792

Certification assessment against the

RSPO Principles & Criteria Indonesia National Interpretation (INA-NI) year 2008 and

RSPO SCCS year 2011

PT Dharma Satya Nusantara Palm Oil Mill 2, and PT. Dharma Agrotama Nusantara

Head Office :

Jl. Rawa Gelam V Kav. OR/3B, Kawasan Industry Pulo Gadung Jakarta Site Office:

Benhes Village, Muara Wahau Sub District, Kutai Timur District east Kalimantan, Indonesia

Date of assessment: June 24 – 29, 2013

Report prepared by: Fadli

(RSPO Lead Auditor)

Certification decision by: Nelly Yong

(Managing Director, TUV Rheinland Malaysia)

Certification Body: TUV Rheinland Malaysia Sdn. Bhd.

No. 26 – 32, Jalan Perindustrian USJ 1/6, Taman Perindustrian USJ 1,

47600 Subang Jaya, Selangor Darul Ehsan, Malaysia.

Tel: +6 03 8024 2400 Fax: +6 03 8023 1505

www.tuv.com

TABLE OF CONTENTS

1.0 SCOPE OF CERTIFICATION ASSESSMENT ................................................................ 3

1.1 National Interpretation Used .................................................................................................................3 1.2 Type of Assessment .............................................................................................................................3 1.3 Location and Maps ...............................................................................................................................3 1.4 Description of Supply Base...................................................................................................................5 1.5 Dates of Plantings and Replanting Cycles ............................................................................................6 1.6 Other Achievements and Certifications Held ........................................................................................6 1.7 Area of Plantation (Total, Planted and Mature) ....................................................................................6 1.8 Organisational Information / Contact Person ........................................................................................7 1.9 Description of Company History, Socio-economy & Environment ........................................................7 1.10 Time Bound Plan for Other Management Units ..................................................................................8 1.11 Compliance to Rules for Partial Certification ......................................................................................8 1.12 Plan for certification of associated smallholders .................................................................................9 1.13 Approximate Tonnages Certified ......................................................................................................10 1.14 Recommendation for Certification ....................................................................................................10 1.15 Date of Certificate Issued and Scope of Certificate ..........................................................................10

2.0 ASSESSMENT PROCESS ............................................................................................... 11

2.1 Certification Body ...............................................................................................................................11 2.2 Qualifications of Lead Assessor and Assessment Team ....................................................................11 2.3 Assessment Methodology ..................................................................................................................12 2.4 Stakeholder Consultation and Stakeholders Contacted .....................................................................13 2.5 Date of Next Surveillance Visit ...........................................................................................................14

3.0 ASSESSMENT FINDINGS ............................................................................................... 15

3.1 Summary of Findings ..........................................................................................................................15 3.2 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions ..........................43 3.3 Noteworthy Positive Components .......................................................................................................47 3.4 Description of Supply Chain Management System ............................................................................47 3.5 Identified Non-conformances against RSPO SCCS Requirements, Corrective Actions Taken and

Auditors Conclusions .........................................................................................................................50 3.6 Conclusions and Recommendation for RSPO P & C and Supply Chain Certification .......................52 3.7 Issues Raised by Stakeholders and Findings Pertaining to Issues ...................................................52 3.8 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client ....................................55

APPENDICES ......................................................................................................................... 56

Appendix 1: Details of Certificate..............................................................................................................56 Appendix 2: Certification Audit Plan .........................................................................................................57 Appendix 3: List of Abbreviations .............................................................................................................61 Appendix 4: List of Stakeholders Interviewed and Contacted ..................................................................61 Appendix 5: Observations and Opportunities for Improvement ................................................................64

RSPO Certification Assessment Report

PT Dharma Satya Nusantara Palm Oil Mill (POM2) and PT Dharma Agrotama Nusantara Palm Oil Plantation, East Kutai – East

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QMF: RSPO-007a-13(Rev.0)

1.0 SCOPE OF CERTIFICATION ASSESSMENT

1.1 National Interpretation Used

The operations of the palm oil mill(s) and its supply base of FFB were assessed against Indonesia National Intepreta-tion (INA-NI) year 2008 of the RSPO Principles & Criteria and the RSPO Supply Chain Certification Systems (SCCS) document (November 2011).

1.2 Type of Assessment

The main certification assessment was carried out on one mill, PT Dharma Satya Nusantara Palm Oil Mill (POM) 2, and 3 (three) estates under PT Dharma Agrotama Nusantara (PT DAN), all of which are owned by PT Dharma Satya Nusantara (PT DSN) Group

1.3 Location and Maps

Table 1: GPS locations for all estates and mills included in certification assessment

Name of mill / estate Location GPS locations

Latitude Longtitude

Palm Oil Mill 2, PT Dharma Satya Nusantara

Benhes Village, Muara Wahau sub-district, Kutai Timur Regency, East Kalimantan Province, Indonesia

01 15’ 02.9” N 116 43’ 44.1” E

Puhus 1 Estate Benhes Village, Muara Wahau sub-district, Kutai Timur Regency, East Kalimantan Province, Indonesia

01 14’ 23.3” N 116 44’ 20.8” E


01 15’39.9” N 116 43’ 51.5” E


01 14’ 17.9” N 116 49’ 16.2” E



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Figure 1: PT Dharma Satya Nusantara (DSN) Palm Oil Mill and PT Dharma Agrotama Nusantara (DAN) Plantation in East Kalimantan, Indonesia

Figure 2: Map of Estate PT Dharma Satya Nusantara (DSN) Palm Oil Mill and PT Dharma Agrotama Nusantara (DAN) Plantation in East Kalimantan, Indonesia

DSN Palm Oil Mill



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1.4 Description of Supply Base

Table 2: FFB Supply Information for PT Dharma Satya Nusantara Palm Oil Mill year 2012 and year 2013

FFB Contributors FFB supplied (year 2012) FFB supplied (year 2013)*

Tonnes % Tonnes %

Company owned estates (certified):

Puhus 1 Estate 57,368.46 16.41 26,862.72 24.53

Puhus 2 Estate 76,569.87 21.90 32,728.30 29.89

Puhus 3 Estate 22,427.59 6.41 12,540.69 11.45

Sub Total 156,365.92 44.72 72,131.71 65.88

Smallholders / outgrowers:

Koperasi Karya Sejahtera dan Koperasi Kombeng Lestari

0.00 0.00 55.85 0.05

Sub Total

DSN Group companies:

PT Dharma Intisawit Nusantara (under RSPO review process)

7,067.37 2.02 93.89 0.09

PT Swakarsa Sinarsentosa (certified)

144,111.12 41.22 13,894.49 12.69

PT Dewata Sawit Nusantara (under RSPO review process)

42,079.43 12.04 23,314.76 21.29

Sub Total 193,257.92 55.28 37,303.14 34.07

TOTAL 349,623.84 100.00 109,490.70 100.00

Notes: * FFB received from January to May 2013.

Table 3: Certified tonnages claimed, certified tonnages purchased or sold, total and projected CPO and PK production from PT Dharma Satya Nusantara Mill

Refer to Section 1.13 for further explanation

Amount (MT)

CPO PK

Certified tonnages claimed* 71,211.81 9,076.02

Certified tonnages sold 0.00 0.00

Certified tonnages purchased 0.00 0.00

Extraction rate for year 2012 OER: 25.02 % KER : 3.31 %

Actual Production* (in 2012) 87,491.37 11,566.38

Projected output for next 12 months 79,336.00 10,111.00



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1.5 Dates of Plantings and Replanting Cycles

The company follows a replanting cycle of 25 years. Information on the dates of plantings are as per the table below. Table 4: Age and year of plantings of company estates supplying to PT Dharma Agrotama Nusantara

Age & Year of Plant-ings

Oil palm planted area at each estate(ha)

Puhus 1 Puhus 2 Puhus 3 Total

0 – 5 (2008 – 2013) 1,451 81 0 1,532

5 – 10 (2002 – 2007) 1,558 2,946 2,964 7,468

TOTAL 3,009 3,027 2,964 9,000

The company has not defined any replanting program for the next 5 years as the oil palm plantation is still rela-tively young. The oldest planted area was planted in year 2005.

1.6 Other Achievements and Certifications Held

Table 5: Details of other certifications or awards held by PT Dharma Satya Nusantara dan PT Dharma

Agrotama Nusantara

Name of mill / estate Certification Standard /

Award achievedCertification Body /

AwarderDate Achieved

PT Dharma Satya Nusantara Palm Oil Mill

QMS ISO 9001: 2008 SGS Year 1 PT Dharma Agrotama Nusan-tara Palm Oil Plantation

1.7 Area of Plantation (Total, Planted and Mature)

Table 6: Oil Palm Planted Area Summary, FFB Production and Average yield/ha for PT Dharma Agrotama Nusantara Plantation year 2012.

Estate Name Total area

(ha)

Oil Palm Planted area

(ha)

Mature (Production)

area (ha)

Immature (Non-production)

area (ha)

FFB Production*

(tonnes)

Average yield/ ha

Puhus 1 3,776 3,009 3,009 0 57,375 19.07

Puhus 2 3,128 3,027 2,946 81 76,570 25.99

Puhus 3 3,051 2,964 2,964 0 57,452 19.38

Total 9,955 9,000 8,919 81 191,397 21.46

Table 7: Land use data for PT Dharma Satya Nusantara and PT Dharma Agrotama Nusantara

Estate Name Total ar-ea (ha)

Oil Palm Planted

Area (ha)

HCV/

Potential HCV areas (ha)

Land used for other purposes* (ha)

Buildings, etc

Road Others*

Puhus 1 3,776 3,009 586 27 66 88

Puhus 2 3,128 3,027 0 34 67 0

Puhus 3 3,051 2,964 0 23 64 0

TOTAL 9,955 9,000 586 84 197 88

* Area used for other purposes inlude fruit gardens, office garden, and POME installations.



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1.8 Organisational Information / Contact Person

Contacts details of the company are as follows:

1.9 Description of Company History, Socio-economy & Environment

PT Dharma Satya Nusantara palm oil mill and PT Dharma Agrotama Nusantara is oil palm plantation and palm oil mill which has status as multinational investment company. The company has permit for their activity i.e.: (decree letter from Ministry of Agriculture No. 367/Kpts/HK.350/2002 article 4 jo Ministry of Agriculture No.26/Permentan/OT.140/2/2007 article 9) and the organization also has a Plantation Business Permit (Izin Usaha Perkebunan (IUP)). The initial Plantation Business Permit for Plantation (IUP-B) for PT Dharma Agrota-ma Nusantara (PT DAN) is as per Ministry Forestry and Plantation letter No. 1510/Menhutbun-II/99, dated on September 27, 1999 but this permit has expired so the organization has a new Plantation Business Permit for Plantation (IUP-B) as per decree of Kutai Timur Regent No. 432/02.188.45/HK/IX/2007, dated on August 24, 2007 with total area of 10,000 ha located at Benhes, Dabeq, Diak Lay and Muara Wahau Village, Muara Wahau Sub District, Kutai Timur District, East Kalimantan Province. In addition, PT Dharma Satya Nusantara (PT DSN) palm oil mill has a Plantation Business Permit for processing (IUP-P) as per decree of Kutai Timur Regent No. 500/171/Eko.2-V/2009, dated on May 01, 2009 with a capacity of 60 ton FFB/hours.

PT Dharma Agrotama Nusantara plantation has land use right (HGU (Hak Guna Usaha)) No. 85-HGU-BPN RI-2008 dated on December 31, 2008 from National Land Agency for total area of 9,955.255 ha (appropriate with map No. 056-16.09-2007) located at Benhes and Muara Wahau Village, Muara Wahau Sub District, Kutai Timur District, East Kalimantan Province valid for 30 years which consists of 2 (two) HGU certificates i.e 1). No. 42 dated on January 27, 2009 at Benhes and Muara Wahau Village, Muara Wahau Sub District, Kutai Timur District, East Kalimantan Province with total area of 413.69 ha (appropriate with measure letter No. 06/Kutai Timur/2009 and map No. 056-16.09-2007) valid for 30 years (until December 30, 2038); and 2). No. 43 dated on January 27, 2009 at Benhes and Muara Wahau Village, Muara Wahau Sub District, Kutai Timur District, East Kalimantan Province with total area of 9,541.565 ha (appropriate with measure letter No. 07/Kutai Timur/2009 and map No. 056-16.09-2007) valid for 30 years (until December 30, 2038) .

PT Dharma Satya Nusantara palm oil mill has building use right (Hak Guna Bangunan (HGB)) No. 167-550.2-44-2007 from National Land Agency with total area of 4.703 ha (47.030 m2) (appropriate with map No. 281/2007) at Dabeq Village, Muara Wahau Sub District, Kutai Timur District, East Kalimantan Province valid for 20 years and certificate HGB No. 02 dated on January 15, 2008 at at Dabeq Village, Muara Wahau Sub District, Kutai Timur District, East Kalimantan Province with total area of 4.703 ha (47.030 m2) (appropriate with measure letter No. 01/Benhes/2008) valid until January 13, 2028. PT Dharma Satya Nusantara (PKS 2 palm oil mill) and PT Dharma Agrotama Nusantara palm oil plantation is located in Muara Wahau District, Kutai Timur Regency, East Kalimantan Province, about 10 km from the South of capital city of Muara Wahau District. The company general information is stated on the table below.

Company Name: PT Dharma Satya Nusantara and PT Dharma Agrotama Nusantara

RSPO Membership no. 1-0135-12-000-00

Address: Jl. Rawa Gelam V Kav. OR/3B, Kawasan Industry Pulo Gadung Jakarta

Benhes Village, Muara Wahau Sub District, Kutai Timur District east Kali-mantan, Indonesia

Contact Person: Mr. Tjahjono Notosuroto

Telephone: +62 21 4618135

Fax: +62-21-4606942

Email: [email protected]



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Table 8: General Information on Estates under PT Dharma Agrotama Nusantara

No. Description PT Dharma Agrotama Nusantara plantation and

PT Dharma Satya Nusantara Palm Oil Mill 1. Location of administrative offices Government

Administration office Kutai Timur District

Plantation Administration office

Kutai Timur

2 Surrounding stakeholders (at estate boundaries) North PT Dewata Sawit Nusantara (PT DWT)

East Telen River, Ben Hes Village, Diak Lay Village, Dabeq Village South PT Swakarsa Sinar Sentosa (PT SWA)West PT Dharma Intisawit Nugraha (PT DIN)

3. Total Area (ha) 9,955.255 ha 4. Land Condition Flat with undulating area 5. Soil type Red and Yellow podsolic 6. Hydrology Telen River, Puhus River, Kenden Besar and Kenden Kecil River 7. Climate Tropical wet 8. Topography Flat with slope from 0% - 15%

1.10 Time Bound Plan for Other Management Units

Name of Holding Location Time bound plan for certification

Status

PT Swakarsa Sinar Sentosa Muara Wahau, East Kalimantan

PT Dharma Satya Nusantara Mill 2 ; Supply base: PT Dharma Agrotama Nusantara

Muara Wahau, east Kalimantan

July 2013 Certification Audit complete Report has been submitted to RSPO Secretariat for technical review

PT Dharma Satya Nusantara Mill 3 Supply base: - PT Dharma Intisawit Nugraha - PT Dewata Sawit Nusantara

Muara Wahau, East Kalimantan

August 2013 Certification Audit complete Report has been submitted to RSPO Secretariat for technical review

PT Dharma Satya Nusantara Mill 5 Supply base: - Pilar Wanapersada

Nangabulik, Central Kaliman-tan

June 2014 Preparing for certification

PT Dharma Intisawit Lestari Bulungan, East Kalimantan

2019 Preparing for certification

PT Karya Prima Agro Sejahtera Muara Wahau, East Kalimantan

2016 Preparing for certification

1.11 Compliance to Rules for Partial Certification

Compliance of the uncertified management units of DSN Group against the rules for partial certification accord-ing to RSPO Certification System clause 4.2.4 was assessed by reviewing document of self assessment report sent to TUV Rheinland Indonesia by the company. A summary of findings is as stated below.

Partial Certification Requirements Audit Findings

(a) The parent organization or one of its majori-ty owned and / or managed subsidiaries is a

Dharma Satya Nusantara group is an RSPO member since year 2012 with RSPO membership number 1-0135-12-000-00



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Partial Certification Requirements Audit Findings

member of RSPO.

(b-d) A challenging time-bound plan for certify-ing all its relevant entities is submitted to the Certification Body (CB) during the first certifica-tion audit. The time-bound plan should contain a list of subsidiaries, estates and mills.

Any revision to the time-bound plan or to the circumstances of the company shall cause the plan to be reviewed. for whether it is still ap-propriate, such that changes to the time-bound plan are permitted only where the organisation can demonstrate that they are justified

The company made a timebound plan and reported to RSPO as determined on the table

(e) No replacement of primary forest or any ar-ea identified as containing High Conservation Values (HCVs) or required to maintain or en-hance HCVs in accordance with RSPO criteri-on 7.3. Any new plantings since January 1st 2010 must comply with the RSPO New Plant-ings Procedure

There is no evidence that the company replaced primary forest within their plantation area. According to Indonesian Govern-ment regulation, plantation areas cannot be established in pri-mary forests but can be established in logged over area forest or non forest area as well as non-productive areas, land bansk and areas of other categories as decided by government.

All plantation area in PT Dharma Agrotama Nusantara were established in between year 2005 to 2007, according to the company’s High Conservation Value (HCV) assessment, 67 ha of HCV area were cleared i.e at Riparian river along to Telen in Puhus 1. The company has identified and will follow RSPO re-quirements regarding compensation rules once approved by the RSPO.

There is new development area in PT Dewata Sawit Indonesia, and New Planting Procedure (NPP) assessment was done in August 2012 and the report available and can be verified at the main audit time for PT DSN POM 3.

(f) Land conflicts, if any, are being resolved through a mutually agreed process, e.g. RSPO Grievance procedure or Dispute Settlement Facility, in accordance with RSPO criteria 6.4, 7.5 and 7.6.

There was an identified land dispute between PT Dharma Agrotama Nusantara with a villager from Puhus village, the dispute has been closed since management PT DSN group make agreement with villager in Puhus village as explained in this report.

(g) Labour disputes, if any, are being resolved through a mutually agreed process, in accord-ance with RSPO criterion 6.3.

There are no labour disputes identified ongoing in DSN group

(h) Legal non-compliance, if any, are being re-solved in accordance with the legal require-ments, with reference to RSPO criteria 2.1 and 2.2.

Some legal non compliance has been identified as stated on the NCR of this report.

1.12 Plan for certification of associated smallholders

As seen from data in Table 2, the mill receives around 0.05% (in year 2013) supply of FFB from smallholders, of which Karya Sejahtera Cooperative and Kombeng Lestari Cooperatve program of these are smallholders associated with the mill. The company manages comunity’s land for oil palm plantation, all FFB will send to the mill.

The mill has developed a plan for certification of associated smallholders as seen on document “RSPO Certification Pro-gram for Smallholder Supply Base POM 2”, the program will be starting on September 2013. As determined on the plan-



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ning document, the program towards to RSPO certification has been planned to begin 3 years after the issuance of RSPO RSPO certificate for the company, i.e. Understanding of RSPO requirements, preparation for RSPO requirement compli-ances will begin in year 2014 and target for certification is by the end of year 2016.

1.13 Approximate Tonnages Certified

The approximate tonnages certified is as below, based on projection in 2016 from company owned estates where projected amount of FFB processed is 279,262 tonnes, with OER of 25.5% and KER of 3.25%:

Crude Palm Oil (CPO) : 71,211.81 tonnes Palm Kernel (PK) : 9,076.02 tonnes

1.14 Recommendation for Certification

PT Dharma Satya Nusantara Palm Oil Mill (PKS2) and PT Dharma Agrotama Nusantara Palm Oil Plantation has established and maintains an effective system to ensure compliance with the RSPO principles and criteria. The audit team has confirmed through the audit process that the company’s practices complies with, adequate-ly maintains and implements the requirements of RSPO Principles and Criteria National Interpretation Indone-sia. TUV Rheinland Malaysia recommends that PT PT Dharma Satya Nusantara Palm Oil Mill (PKS2) and PT Dharma Agrotama Nusantara Palm Oil Plantation be approved as a producer of RSPO Certified Sustainable Palm Oil.

1.15 Date of Certificate Issued and Scope of Certificate

The scope of the certificate covers production of palm oil from PT Dharma Satya Nusantara (POM2) and its supply base PT Dharma Agro Nusantara , which includes Puhus 1, Puhus 2 dan Puhus 3 estate. The date of certificate issued is 25 Marh 2014. Further details of the certificate are as per Appendix 1.



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2.0 ASSESSMENT PROCESS

2.1 Certification Body TUV Rheinland Malaysia is member of Group TÜV Rheinland Group, a global leader in independent testing and assessment services. The TÜV Rheinland Group was established in 1872 with offices located in over 500 locations in 65 countries on all five continents. TUV Rheinland Malaysia offers certification for a wide range of management systems according to established international standards including ISO 9001, ISO 14001, OHSAS 18001, SA 8000, as well as CDM Validations and Verifications. TUV Rheinland Malaysia office is lo-cated in Subang Jaya, Selangor, Malaysia.

2.2 Qualifications of Lead Assessor and Assessment Team

Name Position Qualifications / Experience

Fadli Lead Au-

ditor

Education: Bachelor of Anthropology, Department of Anthropology - Univer-sity of Indonesia, Jakarta. Trainings attended: Sustainable Natural Production Forest Management (Pengelolaan Hutan Alam Produksi Lestari - PHAPL) assessor training (May 2003); Forest Plantation Management (August 2003) training - Indonesian Ecolabel Institute (LEI), Forest Management and Agriculture Auditor Train-ing; ISO 9001:2008, ISO 14000:2004, OHSAS 18001:2007 trainings - Smartwood/Rainforest Alliance; SA8000 training - SA International; RSPO Lead Auditor Training -Indonesian Palm Oil Commission. Working experience: Experienced as lecturer for D3 Tourism program, Uni-versity of Indonesia. Social aspect auditor of PT. TUV International Indonesia for Sustainable Forest Management and RSPO Principles & Criteria. Re-searcher of stakeholder mapping for CSR Indonesia.

Aswan Ha-sibuan

Auditor

Education: Bachelor of Agriculture, University of North Sumatera. Trainings attended: ISO 9000:2000 Series Auditor / Lead Auditor Training - PE International (Jakarta), IEMA Advanced EMS Auditor (IEMA / EARA ISO 14001) Auditor / Lead Auditor Training Course - PE International (Jakarta), OHSAS 18001 Lead Auditor Training Course - PE International (Jakarta). Working experience: Experienced in Quality Control from 1994-2004. Auditor for Quality Management System since 2004 – present. Auditor for Environ-mental Management System since 2005 – present. Auditor for OHSAS 18001 since 2007 - present. Conducted over 100 Quality Management System au-dits since 2004, over 50 Environmental Management System audits since 2006 , and over 25 OHSAS audits since 2007

Hendra Fachrurozy

Auditor

Education: Bachelors Degree in Forestry - Bogor Agriculture Institute. Indo-nesia, (1995 to 2000). Trainings attended: ISO 9001 : 2008 lead auditor course - Neville Clark (2011), ISO 14001 : 2004 lead auditor course - TUV Rheinland Indonesia (2011), SMK3 auditor course – Department of manpower and transmigration of the Republic of Indonesia (2009), Sustainable Forest Management (SFM) – Forestry Education and Training Centre (2010), Timber Legality of Verifica-tion - Forestry Education and Training Centre (2010), RSPO Lead Auditor Course – Pro Forest & Wild Asia (2011). Working experience: Experienced as Junior Consultant at PT Surveyor In-donesia (2002 s/d 2010), assesor for SFM –mandatory (PHPL & PHTL), as-sessor for industry performance assessment (IPHHK)-mandatory, auditor for Timber Legality of Verfication, auditor for SMK3, auditor for QMS and EMS at TUV Rheinland Indonesia and auditor for RSPO at TUV Rheinland Indone-sia.

M. Fundy Cholis

Expert

Education: Master Degree in Natural Resource and Environmental Manage-ment, Bogor Agriculture University Trainings attended: Environmental Impact Assessment (EIA), Ecological Risk Assessment (ERA), Internal Quality Audit Training for Quality Manage-



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Name Position Qualifications / Experience

ment System, IRQA-QMS ISO 9001:2000, High Conservation Value (HCV), Timber Legality Verification (SVLK), RSPO Lead Auditor Course, ISPO Auditor Course. Working experience: Experienced in Environmental Impact Assessment, En-vironmental Health Safety Senior Officer (EHS-Officer) in Wilmar International Plantation, Internal Auditor for Wilmar International Plantation, Auditor for Rountable on Sustainable Palm Oil (RSPO), Indonesian Sustainable Palm Oil (ISPO), Certification for Timber Legality Verification (SVLK) in PT TUV Rhein-land Indonesia since June 2012 – present.

Carol Ng Siew

Theng Auditor

Education: Bsc. Biotechnology & Bsc. Environmental Management - Monash University. Trainings attended: RSPO Malaysian National Interpretation Requirements and Certification – SIRIM; Implementation of RSPO Principles & Criteria - QA Plus; RSPO Stepwise Support Programme; 2nd Biodiversity Seminar – RSPO; Certification Body Biodiversity Forum & Workshop – RSPO; Envi-ronmental Quality Act 1974 (DOE) and ISO9001:2008 QMS Conversion Re-quirements (TUV Rheinland). Working experience: Experience in implementing sustainable practices in Sime Darby plantations to comply with RSPO requirements, performing RSPO internal audits and implementing sustainability projects. Prepared training ma-terials and conducted several RSPO requirements trainings and workshops to plantation management teams (2008).

2.3 Assessment Methodology The certification assessment was conducted between June 24 – 29, 2013 as per the assessment program be-low. The assessment was carried out in accordance with TUV Rheinland Malaysia’s RSPO audit procedure as well as the RSPO Certification Systems document. During assessment, the qualified TUV Rheinland assessors used the RSPO standard as endorsed for the country in which the assessment took place and recorded their findings. Due to the location and proximity of the estates, combined with common management systems, it was possible to carry out both field and document assessments of all estates and the mill within the time frame without com-promising the integrity of the assessment in anyway. All 3 estates and 1 mill were visited and the assessment team carried out field and document assessments of compliance to all the RSPO principles and criteria. Common systems were identified and specific evidence was recorded for individual estates. Interviews were conducted at all estates and the mill. The company proposed the correction and corrective action for all identified non conformities raised to the certi-fication body before 30 days after the closing meeting. Verification of implementation of corrective actions for minor non-conformities will be verified during the next suriveillance audit. The certification assessment agenda is as explained below.



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Main Assessment Agenda.

2.4 Stakeholder Consultation and Stakeholders Contacted

The stakeholder consultation involved both external and internal stakeholders. External stakeholders were noti-fied to make comments on the certification assessment by placing an invitation to comment on the RSPO web-

Date Location/ Main

sites Main activities

24 June 2013 - Travelling from Jakarta to Wahau 25 June 2013 Main Office

(KBB) District Office Muara Wahau

Opening Meeting Documentation and record verification of: Legal issues, law and regulation compliance, grievance mechanism, com-mitement for transparency, legal rights, commitment for economic longterm, HCV documentation, EIA documentation, Social issues, best practice for palm oil, integrated pest management, water management, manuring rec-ord, chemical record for spraying activites. Stakeholders consultation

26 June 2013 PT Dharma Satya Nugraha Palm Oil Mill

Documentation and record verification of:

SCCS, Legal issues, social issues, commitment for transparency, legal rights for palm oil mill, HCV documentations, EIA documentation, record of receipts FFB, record processing, waste weter (POME) management, safety and health (P2K3) record include committee for safety and health, P2K3 regulary meeting, hazardous record balance and hazardous handling man-agement, record of water usage. Receipt FFB report in mill, production re-port (include grading report, dispatch CPO and PK, processing), mass bal-ance report, training, SOPs related SCCS. Field observation in palm oil mill, grading activities in loading ramp, pro-cessing, safety and health in work location, POME management, chemical werehouse, enginee room, fuel warehouse, hazardous werehouse, water management plan, dispatch CPO and PK in mill, warehouse PK in SWA ar-ea, warehouse PK in Muara Wahau port, transfer tank 300, Bulking La-banan, storage tank 30.

27 June 2013 PT Dharma Agro-tama Nusantara Palm Oil Planta-tion

Field observation: Spraying activities in Puhus 3 Estate Block G69 to see the safety and health, best practice for chemical usage, riparian protection; fertilizer appli-cation in Puhus 3 Estate Block G49; riparian bufferzone in Puhus 2 Estate Block F66, Division 11, Puhus River in Block 60 Division 8, FFB mulching in Block F59 Division 8, natural spring in Block F51 Division 7 Puhus 2 Estate; housing in Block G50 Division 7, harvesting in Block F38/39 Division 6 Pu-hus 2 Estate, water dam in Block C20 Division 1 Puhus 1 Estate, Upstream of Telen River Block C19/20 Division 1 Puhus 1 Estate. HCV areas (riparian Telen River, block of conservation VIII, Puhus river (block F31-F33)), boundary stone in Puhus 1 estate (No. DAN-30, DAN-45 and No.DAN-61), Puhus 2 estate (No. BPN-045), Puhus 3 estate (No. GPS-002 and GPS-003), Puhus 1 estate office, emplasment/housing Division 1 in Puhus 1, enclave area, Land Application in block G30.

28 June 2013 Main Office (KBB)

Documentation and record verification of: Record of spraying activities in Block G69, fertilizer application record of Block G49, record road maintenance, record of IPM activities, record of beneficial plant, record of water management, record of harvesting, record of riparian bufferzone management, record of HCV management plan, rec-ord of wild animal monitoring, record of erosion management, record of hazardous handling management, record of water analysis for consumtion, socialization for first aid, safety and health, HCV, medical chekup for work-ers high risk contamination. Nursery, Puhus 2 estate office, Kenden Besar River (F48, F49, G49, G50), head of human resources in Puhus 2.

29 June 2013 Closing meeting



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site. Stakeholders included those immediately linked with the operation of the company such employees, out-growers, the local government, NGO’s, trade and labour unions and local communities. Stakeholder consultation took place in the form of meetings and interviews. Meetings with stakeholders were held to seek their views on the performance of the company with respect to the sustainability practices outlined in the RSPO Principles & Criteria, and to comment on aspects where improvements could be made. Meetings with local communities were held at their respective premises within and near the company’s area. A stake-holder consultation meeting was also held on Muara Wahau sub District head Office on June 25, 2013 at 20.00 until 23.00 PM. Letters inviting individual stakeholders to the stakeholder consultation meeting were prepared and sent to the individual stakeholders, while electronic mail and telephone calls were made to arrange the meetings. In all the interviews and meeting, the objectives of the RSPO and the purpose of the assessment was clarified at the outset followed by an evaluation of the relationship between the stakeholders and the company before discussion proceeded to obtain the stakeholders feedback on the company’s compliance to different aspects of the RSPO Principles & Criteria. Although several stakeholders were not familiar with RSPO but they agreed with its objective and expressed their willingness to collaborate in the promotion of sustainable palm oil in East Kalimantan province. In all interviews and meeting, the assessment team did not restrict discussion of both the positive and negative aspects of operations conducted by PT Dharma Satya Nusantara Palm Oil mill and PT Dharma Agrotama Nusantara Palm Oil Plantation. The stakeholder consultation meeting held with stakeholders during the audit was extensive and productive, with an attendance of 20 of attendees. This was followed by site inspections, including visits to the local com-munities, interviews with land claimants and contractors, and inspections of worker amenities and infrastructure. All stakeholder issues raised were recorded and forwarded to the management for their written reponse, and this is summarized in Section 3.4. The list of stakeholders that attended the stakeholder consultation meeting and stakeholders interviewed during the assessment is included as Appendix 4.

2.5 Date of Next Surveillance Visit The next surveillance visit is planned for January 2014.



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3.0 ASSESSMENT FINDINGS

3.1 Summary of Findings

Since the company became a member of RSPO in 2012, company’s management has committed to comply to all RSPO principles and criteria in all the company operations activities. As implementation of its commitment, the company applied to TUV Rheinland Indonesia to conduct the assessment of their compliance to all RSPO requirements for PT Dharma Satya Nusantara Palm Oil Mill and PT Dharma Agrotama Nusantara Palm Oil Plantation which supply to their palm oil mill. A pre - assessment was conducted in December 14 to 20, 2012 and the company has worked hard to address all identified non conformities raised during the pre-assessment. There is evidence of a considerable effort on behalf of all staff in the preparation of manuals, standard operat-ing procedures and other documents not only to conform to RSPO requirements, but for the company’s im-provement of process effectiveness and efficiency. The stakeholder consultation meeting held before main audit was an extensive and productive meeting attend-ed by 20 persons including local community representatives, suppliers, local government personnel, NGOs, and FFB transporters. The stakeholder consultation was follows by site inspections of infrastructure and social amenities. The management responded to all of the issues raised and this is summarized in section 3.4. In general, objective evidence was obtained from each of PT Dharma Satya Nusantara Palm Oil Mill and PT Dharma Agrotama Nusantara Palm Oil Plantation. The results from the assessment of each site within the certi-fication unit have been aggregated to provide an assessment of overall conformance of the company’s to each criterion. During the certification assessment there were found 6 non conformities againt RSPO requirement, one non conformity against major indicator and 5 nonconformities were assigned against Minor Compliance Indicators. 10 observations or opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in Section 3.2. The observations & opportuni-ties for improvement are listed in Appendix 5. The following is a summary of findings made for the criteria listed in the RSPO Principles & Criteria Indonesia National Interpretation (INA-NI) year 2008 and RSPO SCCS, November 2011.

Criterion 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.

Findings: The company has records of information requests and the responses within log book and keep properly based on retention period as specified in SOP regarding to record retention periode. During this certifica-tion audit there was only 3 information request letters found come from surround community such as fol-low: 1. Letter on May 16th, 2013 from Nehas Liah Bing Village Head request for information regarding to CSR donation that already done by the company to this village community during year 2012. As an evidence of response there is letter from the company to the sender on May 17th, 2013 consist of requested infor-mation. 2. Letter on January 3rd, 2013 from Kutai Madani Sejahtera business cooperative of Jak Luay village re-quest information about whether this organization could become partner of palm oil plantation develop-ment activity. There is record of responses as a letter on january 5th, 2013 to the Chief of the cooperative. 3. Letter on November 2012 from Hidayatul Mubtadin Vocational High School of Kong Beng requesting for information whether the company could accept the students as apprentice. There is record of response as per letter on December 4th, 2012 stating that the company could accept the student for the purpose. The record of information request and the responses is keep in compliance with document retention time specified within SOP no. FM-STD-18-R00 issued on 15 December 2012, which is 3 years. Compliance status: Full Compliance



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

Findings: Regarding to communication and consultation activity with stakeholder the company established proce-dure no. 0215B/SWA-CSR-WHU/VI/2012 which states which documents can be made publicly available, such as follows: 1. Vision and mision of the company 2. Company policy 3. EIA (AMDAL) Document 4. Location permit 5. land use right 6. Plantation Business permit (IUP) 7. Permit for building development 8. Permit for palm oil mill equipment such as boiler, power generator, sterilizer etc. 9. License of clinic and paramedics 10. license for temporary hazardous waste storage 11. Plantation map 12. Specific regulation at estate and mill 13. Estate and mill operational organizational structure. 14. Company regulation 15. Four monthly company report 16. CSR activity report 17. Social conflict resolution 18. ISO/RSPO, HCVA, SIA audit report and follow up. 19. Work health and safety program.The procedure was distribute to and agreed by the head of surround-ing villages community such as Benhes, Diaklay, Dabeq, Nehas Liah Bing, Muara Wahau dan Miau Baru villages. Compliance status: Full Compliance

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

Findings: The company provides a mechanism for evaluation of implementation and compliance to applicable legal requirements in a standard operation procedure i.e. SOP-AGR-LGL-02-R02 dated May 01, 2012. There is also a mechanism for evaluation of compliance to regulations related to the company's plantation, legis-lation related to the environment, legislation relating to labour, and regulations related to health and safe-ty. The SOP states that the identification and evaluation is to be carried out 2 (two) times a year and con-ducted by estate and mill staff, to be assisted by the Environmental, Health and Safety (EHS) department of the estate and mill and also legal officer from Head Office. The company maintains a list of all applicable legal requirements relating to environmental, occupational safety and health, the company plantations, and employment as well as records of internal compliance checks to legal requirements as seen on “Ringkasan Peraturan Perundangan” (Summary of Legal Regu-lation) document No. DK-MS-01A-R00 issued on January 2013. Some evidence of compliance with relevant legal requirements as seen on latest legal requirements regis-ter i.e. "Ringkasan Peraturan Perundangan” document No. DK-MS-01A-R00 issued on January 2013 was sighted - covering for both mill & estates under PT Dharma Satya Nusantara dan PT Dharma Agrotama Nusantara. For example: 1. The company has reported chemical use in the work place to the Head of Labour Department with let-

ter number 004/P2K3-DAN/I/2013 on January 10, 2013 and letter number 009/P2K3-DAN/IV/2013 on April 30, 2013.

2. The company has ensured their chemicals used are registered in Chemical Book, Issued by Chemical Pestiside Commision, Ministry of Agriculture 2012

3. In the estate and palm oil mill, other evidence that the company complies with relevant legal re-quirments (decree letter from Ministry of Agriculture No. 367/Kpts/HK.350/2002 article 4 jo Ministry of



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Agriculture No.26/Permentan/OT.140/2/2007 article 9) is that the organization has their Plantation Business Permit (Izin Usaha Perkebunan (IUP)).

4. Plantation Business Permit for Plantation (IUP-B) for PT Dharma Agrotama Nusantara (PT DAN) is available and valid as per Ministry Forestry and Plantation letter No. 1510/Menhutbun-II/99, dated September 27, 1999 but the permit has expired so the organization has a new Plantation Business Permit for Plantation (IUP-B), as per decree of Kutai Timur Regent No. 432/02.188.45/HK/IX/2007, dated on August 24, 2007 for total area of 10,000 ha located at Benhes, Dabeq, Diak Lay and Muara Wahau Village, Muara Wahau Sub District, Kutai Timur District, East Kalimantan Province. In addi-tion, PT Dharma Satya Nusantara (PT DSN) palm oil mill has a Plantation Business Permit for pro-cessing (IUP-P) as per their decree of Kutai Timur Regent No. 500/171/Eko.2-V/2009, dated on May 01, 2009 with capacity of 60 ton FFB/hour.

Others evidence of compliance to legal compliance, i.e. mill licenses were found to be valid, e.g.: 1. Plantation – Processing Operation License (‘Izin Usaha Perkebunan- Pengolahan’ (IUP-P)) dated 1

May 2009 for mill capacity of 60 tonnes/hour 2. Building Construction License ('Izin Mendirikan Bangunan' or IMB) dated 27 May 2009 3. Building Use Rights ('Hak Guna Bangunan' or HGB) for mill building previously owned by PT DAN as

per approval dated 27 December 2007 but sold to PT DSN on 13 March 2009. 4. License for Land Application of POME dated 30 December 2011 and valid for two years. The appen-

dix to the license was revised with approval from the head of East Kutai dated 1 April 2013 to include some additional blocks previously not included in the original license so currently land application ar-ea covered 19 blocks (E31-E32, F30-F38, and G30-37) in Puhus 2 and Puhus 1 estates for total area of 475 ha.

5. License for temporary storage of hazardous wastes dated 27 December 2011 and valid for 5 years, including permission to store used lubricants, used batteries, used oil filters, contaminated rags, print-er circuit boards, used chemical containers, chemical bags and clinical waste.

6. Licenses for the following equipment from the Manpower and Transmigration Department of East Ku-tai ('Akta Izin') dated 4 August 2010: 4 sterilizers, 1 Back Pressure Vessel, 2 Steam Separators, and 2 boilers as well as reports on Verification of Usage dated 9 August 2010 for 2 steam turbines, 3 gen-sets, electrical installations, and 2 air compressors. For all equipment above, there are records of an-nual checks last done on 21 September 2012 by the Manpower and Transmigration Department of East Kutai.

The mill also has an additional 3 new air compressors with verification of usage report dated September 2012. Checks for these equipment are not yet done as only due to be checked in September 2013. The company has SOP-AGR-LGL-02-R02 regarding Identification of Legal and Other Requirements dated 1 April 2013 which include the procedure to identify legal requirements and making updates to legal re-quirements. Identification and updating of legal requirements is conducted by the Legal department, HR department and ESH department. The company has listed all applicable legal requirements in a Legal Requirements Register dated January 2013, including checking of compliance. Checking of compliance is done through checklists of applicable legal requirements, e.g. for the mill, last check was conducted on 1 June 2013 with no legal non-compliances found. There is evidence of efforts made to comply with legal requirements, for example: 1. There is a letter no. 561/K.830/2012 from the governor of East Kalimantan stating that minimum wage

for worker is revised to Rp1,765,000 for year 2013. The company followed up with internal memo dated 15 February 2013 and prepared a report on manpower to the Manpower and Transmigration Department of East Kutai, dated 4 February 2013. It was confirmed from pay slips and interviews with workers that the minimum wage is paid accordingly.

2. There is a revised legal requirement, PP Year 2012 regarding Environmental Licenses, which is re-placing PP year 2009 regarding AMDAL. The requirement states that in addition to preparing the AMDAL or UPL/UKL, companies are also required to have an Environmental License, however this is only required to companies that do not already have an approved AMDAL or UPL/UKL. The company has issued an internal memo dated 20 June 2012 to inform regarding this update.

3. There is a revised legal requirement PP no. 60 year 2012 regarding Revision to PP no. 10 year 2010 on Procedure for Changes to Allocation and Function of Forests. The company issued an internal memo dated 7 January 2013 regarding this update

The legal requirements register is updated with all new legal requirements.



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Compliance status: Full Compliance

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

Findings: The organization has document showing ownership or lease of the land in accordance with relevant laws, that is land use right (Hak Guna Usaha (HGU) for PT Dharma Agrotama Nusantara (PT DAN) and build-ing use right (Hak Guna Bangunan (HGB)) for PT Dharma Satya Nusantara (PT DSN). PT Dharma Agro-tama Nusantara plantation has land use right (HGU (Hak Guna Usaha)) No. 85-HGU-BPN RI-2008 dated on December 31, 2008 from National Land Agency for total area of 9,955.255 ha (appropriate with map No. 056-16.09-2007) at Benhes and Muara Wahau Village, Muara Wahau Sub District, Kutai Timur Dis-trict, East Kalimantan Province valid for 30 years which consists of 2 (two) certificate HGU i.e 1). No. 42 dated on January 27, 2009 at Benhes and Muara Wahau Village, Muara Wahau Sub District, Kutai Timur District, East Kalimantan Province for total area of 413.69 ha (appropriate with measurement letter No. 06/Kutai Timur/2009 and map No. 056-16.09-2007) valid for 30 years (until December 30, 2038); and 2). No. 43 dated on January 27, 2009 at Benhes and Muara Wahau Village, Muara Wahau Sub District, Kutai Timur District, East Kalimantan Province with total area of 9,541.565 ha (appropriate with measure letter No. 07/Kutai Timur/2009 and map No. 056-16.09-2007) valid for 30 years (until December 30, 2038) . PT Dharma Satya Nusantara palm oil mill has building use right (Hak Guna Bangunan (HGB)) No. 167-550.2-44-2007 from National Land Agency for total area of 4.703 ha (47.030 m2) (appropriate with map No. 281/2007) at Dabeq Village, Muara Wahau Sub District, Kutai Timur District, East Kalimantan Prov-ince valid for 20 years and certificate HGB No. 02 dated on January 15, 2008 at at Dabeq Village, Muara Wahau Sub District, Kutai Timur District, East Kalimantan Province with total area of 4.703 ha (47.030 m2) (appropriate with measure letter No. 01/Benhes/2008) valid until January 13, 2028. Some legal boundaries are clearly demarcated and visibly maintained on the ground as seen on the field for boundary stones labelled with DAN-30, DAN-45, and DAN-61 at Puhus I estate (riparian Telen River (HCV area)) with coordinates 010 13’ 48.6” N ; 1160 42’ 53.1” E (DAN-30), 010 15’ 18.4” N ; 1160 41’ 42.8” E (DAN-45) and 010 15’ 57.0” N ; 1160 39’ 58.2” E (DAN-60), BPN-45 at Puhus II estate (boundary be-tween PT DAN areas with PT Swakarsa Sinarsentosa areas) with coordinate of 010 12’ 43.7” N ; 1160 46’ 10.2” E, and GPS-002 & GPS-003 at Puhus III estate (boundary between PT DAN areas with PT Dharma Inrisawit Nugraha areas) with coordinate of 010 14’ 18.4” N ; 1160 51’ 28.8” E (GPS-002) & 010 12’ 40.1” N ; 1160 51’ 26.0” E (GPS-003). The company has construction for all boundary stone appropriate with map No. 056-16.09-2007 (scale 1 : 35,000). To ensure that every boundary stones are clearly demarcat-ed and visibly maintained company has boundary stone maintenance program to be implemented every six months. The company has evidence that there are proof of resolution or progress towards resolution by conflict resolution processes which is accepted by all affected parties from 3 (three) villages (Dabeq, Diak Lay, and Ben Heas). There is statement from PT Swakarsa management on behalf of Dharma Satya Nusanta-ra Group including PT Dharma Agrotama Nusantara and PT Dharma Satya Nusantara (palm oil mill) which stated that conflict resolution with the three villages (Dabeq, Diak Lay, and Ben Heas) was resolved on February 8, 2011, with agreement by all parties. Evidence of land acquisition resolution with free prior and informed consent was sighted, through statement from the village dates on June 28, 1997 that the lo-cal community fully supports the presence all companies under the DSN Group for palm oil plantations in their region. Location area has been measured by the relevant authorities with community participation, and was no problem with the boundary of land community. The mechanism of conflict resolution procedures/complaints/claim as well as communication and consul-tation procedures 215B/SWA-CSR-WHU0VI02912 was agreed by community, and a copy has been given to them. Appendix 1 of the procedure contains the mechanism for conflict resolution procedures / com-plaints / demands concerning land claims, labour, job transactions and other interest issues. Stakehold-ers can submit it either by mail or walk in to the CSR office to explain about the problems complained, or claim made. Subject matter, complaints or claims that require material evidence can be included when it is delivered to the company.



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Criterion 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.

Records of all negotiated agreements between respective community as traditional owners of land and plantation companies is available supplemented with maps in appropriate scale, such as negotiation pro-cess with relevant community. The company has evidence that there are proof of resolution or progress towards resolution by conflict resolution processes which is accepted by all affected parties. There is statement from PT Swakarsa management on behalf of Dharma Satya Nusantara Group including PT Dharma Agrotama Nusantara and PT Dharma Satya Nusantara (palm oil mill) which stated that conflict resolution with the three villages (Dabeq, Diak Lay, and Ben Heas) was resolved on February 8, 2011, with agreement by all parties. There are 8 points of claim by three villages, such as: 1. Customary land compensation for three communities 2. Return of smallholders certificate 3. Material compensation for making employee housing 4. Material compensation for making assistant housing 5. CPO retribution of villagers 6. Letter of agreement “SPK” for company’s contribution to local communities regarding 2nd palm oil

mill construction 7. Palm oil mill 2 status was build in ancestral sites of Wehea people 8. Material compensation used for construction of mill 1 and mill 2 There area has a note for handover compensation namely “tali asih” (ex-gratia compensation) and two units of CPO truck for villages of Dabeq. In the note was stated that the handover has been done with amount is Rp666,667,000 and two units of CPO truck through credit mechanism (determined on agree-ment between the company and three villages on March 14, 2011). The process of handover was record-ed on letter number 01.Forum 64.08.02.2006./BHS/MW/KUTIM. It was signed by Chairman of villager or-ganization, community leaders, the company, Head of Wahau sub district, Police Head of Wahau, Dan-ramil (military commander) of Wahau. Similar agreement was found for Diak Lay Village and Ben Heas village with the same value and was conducted in the same date. There are has evidence of receipt of funds transfer “tali asih” for three village and handover two units CPO truck also for three village, such as:

1. Dabeq village; two units CPO truck number FG 235 JL, KT 8224 RD, KT 8243 RD 2. Diak Lay village; two units CPO truck number FG 235 JL, KT 8238 RD, KT 8246 RD 3. Ben Heas village; two units CPO truck number FG 235 JL, KT 8242 D, KT 8241 RD

There are has evidence of land acquisition through statement from the village dates on June 28, 1997 that the local community fully support the presence all companies under the DSN Group to build palm oil plan-tations in their region. Location area has been measured by the relevant authorities, and was no problem with the boundary of land community, because:

1. Land communities have been removed from the companies area 2. Companies location for plantations has no problem with boundary, customary rights, and etc

The statement of agreement was signed by Head of Wahau village, Ben Heas village, Diak Lay village, Dabeq village, Nehes Liah Bing village, and Head of Wahau Subdistrict. The Maps of an appropriate scale showing extent of recognised community rights are available at CSR office. Such as land conflict for from 3 (three) villages (Dabeq, Diak Lay, and Ben Heas as weel as all copy of negotiation process area available in each respective land claimer. The mechanism of conflict resolution procedures/complaints/claim as well as communication and consul-tation procedures was agree by community on June 7, 2012, and the copy has been given to them.

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



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Findings: The company (PT DAN) has a management plan for a 3 years period i.e. projection for 2013 to 2016 (in-cluding PT DSN POM 2) with information on this document consisting of company activities such as profit and loss information from Total Revenue and Total Operating Cost, including information about gross op-erating cost, profit/loss before tax and profit and loss after tax. The company has a financial schedule for yearly budget. Information in the document consist of general routine operational activities such as plan-tation maintenance, harvesting, fertilizer, investment plans such as enrichment planting (planting of vari-ous plant species to enhance biodiversity), mill activities such as FFB processed, projected oil extraction rate (OER) and kernel extraction rate (KER), projected crude palm oil (CPO) and palm kernel (PK) pro-duction, CSR programmes and environmental monitoring, HCV management plan and other activities to fulfil RSPO requirements. The company has also developed a yearly plan as seen for year 2013, contain-ing information on the budget for each activity (including activities for environmental management pro-grammes and all CSR related expenses, legal compliance and RSPO P & C compliance) and revenue from company's production including all company's liabilities. The amount of profit estimated to be achieved each year was clearly calculated, and all information is clearly explained in PT Dharma Agrota-ma Nusantara budget plan from 2013 to 2016. Monitoring between the realization versus the budget is done regularly, i.e three monthly. In a cash flow projection document, there is also a plan for 3-year cash inflow from sales of CPO and palm kernel sales. The main points of cash outflow is the overall production cost of the estate and the mill include the cost of estate maintenance (susnainability cost), as well as the combination of costs associat-ed with environmental and social monitoring activities. Since year 2013 was the first year in which the company earned profit because an increase in the volume of FFB and CPO. Documentation of cost pro-jection for estates and mill are integrated, and the projected financial feasibility of company for next 3 years based from the current FFB price can be seen from these documents. The company implements a replanting cycle every 25 years, and still not make planning for a replanting activities which will only begin after the oldest planted area (year 2005) is 25 years old. Compliance status: Full Compliance

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

Findings: The company has List of Work Instructions for estate and mill activities. The work instructions cover all es-tate activities such as pre-development and planning, nursery practices, land clearing and preparation, es-tablishment and maintenance of leguminous cover crops, oil palm planting density and pattern, and maintenance, harvesting, pest and disease management, replanting, and mulching. And work instructions for mill covers all mill activities in the mill such as reception of FFB, process, loading ramp, grading, steri-lizer, dispatch of CPO, etc. This are some example of work instructions for estate and mill: Work isntruction or procedures that are available include the following:

1. IK-AGR-OLP-01-R01 Land Clearing 2. IK-AGR-OLP-02-R01 Nursery 3. IK-AGR-OLP-03-R01 Establishment and maintanance of leguminous cover crops 4. IK-AGR-OLP-04-R00 Planting 5. IK-AGR-OLP-05-R00 Propagation of Mucuna bracteata 6. IK-AGR-OLP-06-R00 Palm oil insertion 7. IK-AGR-OLP-10-R00 Land Application 8. IK-AGR-OLP-11-R00 Mulching of EFB 9. IK-AGR-OLP-13-R00 Early detection of pests and desease (EWS) 10. IK-AGR-OLP-14-R00 Pest and desease control 11. IK-AGR-OLP-23-R02 Harvesting 12. IK-AGR-OLP-24-R00 Harvest and transportation, etc.

Work instruction or procedure that available for mill, such as: 1. SOP-AGR-028-R00 Dispatch CPO and Kernel 2. IK-AGR-PRO-01/R00 Receiping of FFB 3. IK-AGR-LAB-13/R00 Controling of Process



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4. SOP-AGR-POM-02-R00 Despatch CPO and Kernel 5. IK-AGR-DSP-01/R00 Filling CPO to Storage Tank 6. IK-AGR-LAB-12/R00 Kernel Despatch 7. FM-PRO-08-R00 Daily Production Report, etc

The company conducts monitoring for all applicable working instructions through periodic internal audits, management review for evaluaiton company activity. Management review will be conduct every once a year. The company has record of management review conducted on April 19, 2013, was attended by 76 persons. Management review discussed about: - The effectivity of procedure’s and work instructions to ensure that is applicable or need revision; - Internal audit to ensure the systems are well - Follow up for domestic waste management, hazardous handling management, clean water, erossion

in the riparian, greenhouse gas (GHG) mitigation, and availability of PPE for all warkers. The records of operational results are well maintained in each estate and mill on monthly report was in-clude all activity in the mill and estate, example is: 1. Records of receiving FFB with the form receipt dated on May 14, 2013 on 10:12 AM from Puhus 1 es-

tate Division 3, Block E39 and E40 with FFB total is 796 FFB, and nett weight is 10,170 kg. 2. Record of FFB grading, and sighted sample form record dated on May 14, 2013 from Division 3,

Block E38 and E39 for total FFB of 581, and examples taken is 100 FFB, when the grading was con-duct on 10:16 AM. The result of grading is 160 FFB was found not meeting the mill’s requirements.

3. Records of CPO dispatch with form number FM-PRO-01-R01 serial number 066040 on May 14, 2013 on 00:00 AM send to Mill 1 of PT DSN from Mill 2 as much 11,260 kg CPO.

Others evidence of implementation of work instructions was sighted, for example: 1. Work instruction for Management of Pests and Disease as per document no. IK-AGR-OLP-14-R00

dated 3 May 2010 which states that chemical treatment of bagworms is only required if 10 or more bagworms are found per frond on a tree, and for termites, chemical treatment is required an a block if 4 or more trees are found infected with termites. Sighted from pest census records that bagworms at-tacks have been less than 10 per frond, so no chemicals have been applied, whereas termite attacks have been high at Puhus 2 estate and part of Puhus 1 estate and termicides are only applied are are-as where it was found that 4 trees or more are infected

2. Work instruction for manuring of mature and immature plantings, IK-SOP-OLP-09-R01 dated 1 Feb-ruary 2012, states that empty fertilizer bags are to be returned to the estate workshop and recorded. Sample records of empty fertilizer bags returned to Puhus 1 estate were sighted for March, May and June 2013. There is a store for collection of used fertilizer bags at Puhus 2 estate.

3. The estates carry out EFB application in accordance with their work instruction IK-AGR-OLP-11-R00 which states that EFB shall be applied in one layer

However there was found evidence of work instructions not properly implemented, for example: 1. Evidence was found that harvesting and collection quality inspections are not performed appropriate-

ly, as it was found that harvesting quality checking records for harvesting area row 11 Puhus 2 Estate showed that loose fruits were sighted at only 1 tree, but during field observation it was found in actual there there 3 trees with loose fruits in row 3.

2. Work instruction IK-AGR-OLP-02-R01 regarding oil palm plantation nursery management includes several forms, e.g. for seed selection, monitoring of saplings, etc, but the estates were unable to show records of implementation of the forms listed in the work instruction.

This is raised as a non-conformity NCR 2013 – 01 of 06 There was found evidence of work instructions not properly implemented, for example: 1. Evidence was found that harvesting and collection quality inspections are not performed appropriate-





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Compliance status: Non-compliance

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

Findings: Leaf nutrient analysis is conducted annually and fertilizer recommendations report for each respective estate are prepared based on analysis results, while visual analysis results are documented for each estate. At PT Dharma Satya Nusantara dan PT Dharma Agrotama Nusantara, leaf analysis conducted by an external laboratory on yearly basis. The latest analysis was conducted on year 2012 by PT Nusa Pu-saka Kencana Analytical & QC laboratorium with the name of report is “Foliar Analysis Report” document number is FR/5.10/2.1. Analysis conducted is for all estate (Puhus 1, Puhus 2 and Puhus 3). And based on the leaf analysis, the company issued the fertilizer recommendation for application in 2013. The company has record to maintain and increase soil fertility, example is: 1. Fertilizer application, example in Block F22, Puhus 1 Estate with land area is 16 Ha, the company

was applied the CPD Hi-Kay fertilizer with the dosage is 2.25 kg/tree, and total was applied is 4,921 kg. And this application was confirm with the fertilizer recommendation with the document number RP 2013 DAN F4. And when treaced to the record of fertilizer release from warehouse number 0500739 on June 24, 2013, fertilizer issued from the warehouse is 4,921 kg for application in Block number F22 with land area is 16 Ha, with total tree for application is 2,187 tree.

2. EFB application in Block F23 Puhus 1 Estate with the application program is 35 Ha, was applied the EFB for 10 Ha from the program, with the dosage is 225 kg/tree.

Based on all record, the estates maintain soil fertility through fertilizer applications as well as land application of EFB, and the company has specific working instructions for EFB application, which is IK-AGR-OLP-11-R00 EFB application. The implementation of EFB application was sighted consistetnly at Block F23 above. The estate has a system to monitor whether actual fertilizer applications meet recommended fertilizer applications. The estates carry out EFB application in accordance with their work instruction IK-AGR-OLP-11-R00 which states that EFB shall be applied in one layer. Puhus 1 estate has records of EFB application train-ing for harvesters and field workers on16, 17, 18, 19, 22, 23, 24, and 26 April. Compliance status: Full Compliance

Criterion 4.3: Practices minimise and control erosion and degradation of soils.

Findings: The company has a detailed soil map showing gradients and all soil types within all estates conducted exetrnal consultant, last soil survey was conducted on 2011. According to the soil survey result there are 3 soil types in PT Dharma Agrotaman Nusantara i.e. Ultisol type, Entisol Type and Spodosol Type. Based on the soil type, the location of the company not a fragile soil type, and the topography condition of land is flat. Accordance to the soil map and topography map, PT Dharma Agrotama Nusantara has a program for erosion prevention, with a plan for protection of river riparian buffer zones along natural streams and natu-ral spring through felling of oil palm trees adjacent to these natural streams and replanting the buffer zone areas with hardwood tree and “vertiver grass” a long of the river. The company has no-chemical-application-as strategy for the protection the river and natural springs from the pollution. Based on field trip in Block G50, G49 and F51 Division 7 Puhus 2 estate, the company has made improvements in the ri-parian zone and natural spring with vertiver grass cultivation and no chemical application on the location. The company has a road maintenance program with evidence is map of road planned for road main-tainance in 2013. For example: 1. For Puhus 2 Estate, planned road maintainance program at Block E34 was 200 m which is complet-

ed; planned road maintainance program for Block F30 is 500 m, and actual maintenance done to date was 255 m; planned road maintainance program for Block F34 is 600 m, and actual work completed is 600 m. All of the record is from information on the map of implementation of road maintanance.



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2. For Puhus 1 Estate, Division I, total length of road planned for maintenance is 16,874 m of main roads, and 33,791 m of collection roads. Based on records of information of grading and compaction maps for year 2013, the company has split their road maintenance program into two rotation. In rota-tion 1 the company has carried out maintenance for 6,535 m of transportation road and 28,771 m for collection road, and in rotation 2, the company carried out maintenance for 3,282 m for transportation roads and 19,508m of collection roads.

Also according to the soil map, in the location of the company there is no peat soil or fragile soil, so the company focus on maintain in buffer zone in the river and natural spring. . Compliance status: Full compliance

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

Findings: The company has identified all streams that flow inside of estate area and created a riparian buffer zone and spring buffer zone management programme. There are 3 rivers in the area of PT Dharma Agrotama Nusantara plantation, i.e. Kenden Besar River, Kenden Kecil River and Telen River, width of rivers ranges from 4 to 10 meters. The company has a plan for protection of river riparian buffer zones along natural streams and protection for spring well through felling of oil palm trees adjacent to these natural streams and replanting the buffer zone areas with hardwood trees and vertiver grass such as at Kenden river and Puhus river riparian buffer zone, in order increase the retention time of canal water potentially contami-nated with chemicals or surface run-off into main streams. Other plans such as cleaning river of the fallen timber and other debris to make smooth waterflow. The company has implemented their plan, for cleaning river from timber, vertiver grass planting, wall erossion, fencing arround the springs and also build the signboard information for riparian and spring protection are available. The company also made an SOP for protection of riparian buffer zones of watercourses and wetlands, including maintaining and restoring appropriate riparian buffer zones, prohibition of agrochemical application activities nearby rivers or water-courses IK-AGR-STD-02-R01 and also internal memorandum number 005/MEMO/EH-PU2/2012 and 010/DAN-PU3/XIII/2012 about no chemical application in along of riparian zone, water streams, and spring well. An implemented water management plan can be seen. The company has developed and implemented a documented water management plan. For supplying water at the housing area, company already develop water treatment in all their estate from the natural springs water to produce clean water for daily consump-tion due to water quality for daily consumption. For this, the company has conduct the water analysis for water consumption based on regulation Ministry of Health Number 416/Menkes/IX/1990, with the certifi-cate result analysis number 60177/CCEKAF on December 31, 2012 the result showed that the water con-dition is good for consumption through cooked. Based on field observation female sprayers/manurers interviewed at Puhus 2 estate confirmed that they are not allowed to spray at the river and the trees at the river banks are marked with red paint to indicate trees which they are now allowed to spray. They carry out manuring by digging soil and burying the ferti-lizer instead of the normal practice of applying fertilizer in a circle around the tree. For maintain the water quality, the company also conduct the water quality analysis for river water based on evidence:

1. Water quality analysis certificate number 03833/BCEKAG on January 31, 2013 with sample is from Kenden Besar River Upstream and Kenden Kecil River Downstream, based on Government Regulaiton Number 82/2001. From all the paramater analyzed, there are several parameters that exceeded the quality standard i.e.: - TSS (total suspended solid) 116 mg/l for Kenden Besar River Upstream and 85 mg/l for

Kenden Kecil River Downstream, while the standard is 50 mg/l - pH for Kenden Besar River Upstream is 5.04 and for Kenden Kecil River Downstream 4.99,

while the standard is 6 – 9 - BOD (biological oxygent demand) 3.72 mg/l for Kenden Besar River Upstream and 4.34 mg/l

for Kenden Kecil River Downstream, while the standard 3 mg/l - COD (chemical oxygent demand) 27 mg/l for Kenden Besar River Upstream and 28 mg/l for

Kenden Kecil River Downstream, while the standard is 25 mg/l 2. Water quality analysis certificate number 03833/BCEKG on January 31, 2013 with the sample is



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from Puhus River from the upstream and downstream based on Government Regulation number 82/2001. Based on the analysis result, there are several parameters that exceeded the quality standard i.e.: - TSS (total suspended solid) 26 mg/l in upstream and 122 mg/l in downstream, while the

standard is 50 mg/l - BOD (biological oxygent demand) 4.35 mg/l in upstream and 5.32 in downstream, while the

standard is 3 mg/l - COD (chemical oxygent demand) 28 mg/l in upstream and 30 mg/l in downstream, while the

standard is 25 mg/l It is explained in the test certificate that this condition is still normal and the excess of paramaters is due to natural activities. The company followed up by monitoring the condition of water quality in the river through the survey activity in along of river, the result showed that the river has no significant pollution re-sulting from the company’s activities. During interview with the chemical sprayers in Block G69 Puhus 3 Estate, they have good knowledge about the company’s requirements to protect riparian buffer zones and natural water springs from chemical activity, and they used appropriate PPE's such as gloves, goggles, apron, and safety shoes. Monitoring of effluent BOD, Monthly waste water test reports are available & sighted during the on site vis-it. Results achieved are found to be within the limits specified. Tests are conducted by external Laboratory i.e. PT Sucofindo Samarinda east Kalimantan. Here is some the evidence the company has conduct the BOD analysis, i.e.: 1. Result of analysis certificate number 03550/BCEKAG on February 28, 2013 for sample from inlet and

oulet the POME installation mill of PT Dharma Satya Nusantara, and parameters analyzed were BOD, COD, pH, oil and grease, lead, copper, Cd, Zn, in accordance with the Regulation Minisitry of Environmental Number 28 and 29/2003 and the results were within the legal standard.

2. Result of analysis certificate number 03550/BCEKAG on February 28, 2013 for sample from monitor-ing wells and land control in Block E34 and F30, and the parameters analyzed were BOD, COD, pH, Nitrate, Amonia, Cd, Copper, Lead, Zn, Chloride, Sulfate, in accordance to the Regulation Minisitry of Environmental Number 28 and 29/2003 and the results were within the legal standard.

3. Result of analysis conducted on March 19, 2013 for sample from the inlet and oulet of the POME in-stallation mill of PT Dharma Satya Nusantara, and the parameters analyzed were BOD, COD, pH, oil and grease, lead, copper, Cd, Zn, in accordance to the Regulation Minisitry of Environmental Number 28 and 29/2003 and the results are within the standard.

4. Result of analysis conducted on April 27, 2013 for sample from the inlet and oulet of the POME instal-lation mill of PT Dharma Satya Nusantara, when the parameter analyzed is BOD, COD, pH, oil and grease, lead, copper, Cd, Zn, in accordance to the Regulation Minisitry of Environmental Number 28 and 29/2003 and the results were within the standard.

According to the mill’s Land Application permit, Decree of Kutai Timur Regent No. 658.31/K.797/, which is still valid at time of the audit, the supporting attachments to the approval in “Obligations and Prohibitions” for the company i.e.: Monitoring of soil water at control well at land application - land control block & public well, parameter & frequency as follows: Every one month - BOD / Dissolved oxygen/ pH / NO3 as N / NH3-N / Cd / Cu / Pb / Zn / Cl / SO4-2. Report to be submitted to ‘Bupati gubernur, Ministry of Environ-mental (Governor, Ministry of Environment) every 6 month. The company has monitoring the record of water usage in June – December 2012 and also 2013 up until May 2013, with records of water usage as follows: 1. June – December 2012

- On June, FFB processed is 26,372 tonnes, with water usage is 1.40 m3/tonne FFB - On July, FFB processed is 35,025 tonnes, with water usage is 1.23 m3/tonne FFB - On August, FFB processed is 29,134 tonnes, with water usage is 1.42 m3/tonne FFB - On September, FFB processed is 32,032 tonnes, with water usage is 1.46 m3/tonne FFB - On October, FFB processed is 35,792 tonnes, with water usage is 1.48 m3/tonne FFB - On November, FFB processed is 34,187 tonnes, with water usage is 1.21 m3/tonne FFB - On December, FFB processed is 30,208 tonnes, with water usage is 1.38 m3/tonne FFB

2. January – May 2013 - On January, FFB processed is 27,695 tonnes, with water usage is 1.51 m3/tonne FFB - On February, FFB processed is 18,895 tonnes, with water usage is 1.77 m3/tonne FFB - On March, FFB processed is 17,535 tonnes, with water usage is 1.92 m3/tonne FFB - On April, FFB processed is 20,675 tonnes, with water usage is 1.60 m3/tonne FFB - On May, FFB processed is 24,583 tonnes, with water usage is 1.44 m3/tonne FFB



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Criterion 4.5: Pests, diseases, weeds and invasive introduced species are effectively managed us-ing appropriate Integrated Pest Management (IPM) techniques.

Findings: PT DAN has a work instruction for Management of Pests and Disease as per document no. IK-AGR-OLP-14-R00 dated 3 May 2010 which includes detailed instructions for biological and chemical management of pests such as bagworms, nettle caterpillars, rats, rhinoceros beetles, wild boars, termites, and diseases such as Ganoderma, marasmius, spear rot, and charcoal base rot. The company also has Integrated Pest Management Program for year 2013 for all estates, with comparison of pest management status in year 2012 and 2013, which states that there was low to medium rates of bagworm attacks at all estates, some attacks of termites at Puhus 1 and Puhus 2 estates, and Ganoderma attack at one tree in Puhus 2 estate. There is evidence of implementation of IPM techniques in the field, e.g. at Puhus 1 estate there was sighted a planting of beneficial plants Antigonon leptopus and Turnera subulata all along the estate roads, planted to attract natural predators of leaf eating pests. At Puhus 1 estate there are 5 barn owl boxes in-stalled and 6 boxes installed at Puhus 2 as a trial, but none of the boxes are occupied with barn owls due to lack of rat pests. Since April 2013 the company is testing the use of termite traps made of recycled cardboard rolled into a tube to attract and trap termites, and if effective this method will help to reduce us-age of termicides. The company has a planting program for beneficial plant in 2013 until May, such as “Turnera ulmifolia, Antigonon leptopus and Casia tora. Beneficial plant i.e Turnera ulmifolia, Antigonon leptopus and Casia tora based on observation in field and documentation, planting is carried out daily at blocks/area that have not been planted, i.e.: 1. Puhus 1 Estate’s work program for beneficial plan planting is for 5.22 Ha, and area already planted is

4.022 Ha with the beneficial plant species, Turnera ulmifolia, Antigonon leptopus, example in: - Work program for Division 1, is 1.77 Ha, and 1.02 Ha of Turnera ulmifolia and Antigonon leptopus

has already been planted - Work program for Division 4, is 1.26 Ha, and was realized 1.23 Ha of Turnera ulmifolia has al-

ready been planted 2. Puhus 2 Estate’s work program for beneficial plan planting is for 4.65 Ha, and area already planted is

4.38 Ha with the beneficial plant species Turnera ulmifolia, Antigonon leptopus and Casia tora, exam-ple in: - Work program for Division 6, is 0.96 Ha, and 0.96 Ha of Turnera ulmifolia and Antigonon leptopus

has already been planted - Work program for Division 7, 1.2 Ha, and 1.2 Ha of Turnera ulmifolia, Antigonon leptopus and

Casia tora has already been planted 3. Puhus 3 Estate’s work program for beneficial plan planting is for 4.05 Ha, and area already planted is

4.38 Ha with the beneficial plant species is Turnera ulmifolia, Turnera subulata and Casia tora, exam-ple in: - Work program for Division 10, is 1.68 Ha, and 1.44 of Turnera subulata and Casia tora has al-

ready been planted - Work program for Division 11, is 0.96 Ha, and 0.81 Ha of Turnera subulata, and Turnera ulmifolia

has already been planted Based on the work instruction “Instruksi Kerja” IK-AGR-OLP-14-R00 to monitor levels of pest infestations, the company conducts census on a sampled area as an early warning system. The SOP includes instruc-tions for: 1. Hand picking larva and cocoon 2. Spraying leaves with pesticide 3. Stem injection with pesticide 4. Root infusion with pesticide 5. Conservation and exploitation of natural enemies as a source of biopesticide Pest monitoring/detection and IPM activities commenced in January for year 2012. Monitoring is planned to be conducted for all blocks in the estates. Based on the recapitulation of Early Warning System (EWS) there are low rates of pest attacks, example in Division 4 on February period 2012 average of the attack is



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1.60 caterpillars per frond , on March period 2012 average attack is 1.33 caterpillars per frond and for April period 2012 average attack is 1.22 caterpillars per frond . But on January based on recapitulation of EWS for bagworms in Block C30 Division 1, Puhus 1 Estate there was medium rates of attack when the result of EWS is 2.62% caterpillars per frond . Based the EWS result the company followed through with hand picking activity conducted on February 2013 in the same block, with the record is: - 96 caterpillars were picked on February 9, 2013 - 74 caterpillars were picked on February 14, 2013 - 86 caterpillars were picked on February 18, 2013 - 61 caterpillars were picked on February 19, 2013 - 76 caterpillars were picked on February 21, 2013 - 43 caterpillars were picked on February 28, 2013 Others records of pest detection are maintained in excel sheets. For bagworms, census is conducted once a month for all blocks and monthly records state no. of live and dead worms found, and size and amount of worms per frond. Sighted from records of Puhus 1 and 2 estates, attack rates for throughout year 2012 and until May 2013 were less than 10 worms per frond (highest being only 5 per frond) which is considered low and only requires management by hand picking. There have been no chemical treatment for bagworms. Records of census of rats are also maintained and show low rates of attacks. There are records of high termite attack rates in year 2012 & 2013 at some areas, e.g. in April and June 2012 for Puhus 1 estate and from February to November 2012 to January - April 2013 for Puhus 2 estate, there were blocks with between 4 to up to 137 trees per ha found with termites. According to the company's work instruction, areas with termites attack above 4 trees per ha are to be treated with termicides, and there are records that these areas were treated with Termiban during those months. IPM training was conducted for all estate supervisors and pest conductors in Puhus 1, Puhus 2 and Pu-hus 3 estate. Trained by “Sygenta” the supplier of chemical collaboration with the Commission of Pes-tiside on September 5, 2012 and was attended by 64 persons with evidence in the form of attendance lists, training materials, and photograph. Others example in Puhus 1 estate monitors pesticide toxicity units for all chemicals applied in year 2012 and 2013 in toxicity per ha and toxicity units per tonne of FFB. For example for the herbicide, Agristik with active ingredients 0.4g/L alkylaryl polyglycol ether, average toxicity units per ha and per tonne FFB ap-plied in year 2012 was 0.08 and 0.04 respectively, based on 602.6 litres applied over 3009 ha. Records shows only pesticides used in Puhus 1 estate was 5 kg of rat bait (Klerat) in February 2013, and Termiban used was 1 litre in April and 6 litres in June, due to high rates of termites attack during these months as sighted from census records. Compliance status: Full Compliance

Criterion 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.

Findings: The company have used the registered chemical based on Book of Pestiside of Agriculture issued by Min-istry of Agriculture 2011. The company also has recommendation chemical used from Head of Labour and Transmigration related to the chemical used in work place, based on reporting chemical letter number 004/P2K3-DAN/I/2013 on January 10, 2013 and number 009/P2K3-DAN/IV/2013 on April 30, 2013. The company monitors and records pesticide usage from 2010, 2011 and 2012 for the pesticides of Al-kylaryl polyglycol ether, methyl Metasulfuron, brodifacoum, Chlorpyrifos. In year 2010 chemical usege is 0.2076 gram/ton FFB, in year 2011 chemical usage is 0.1378 gram/ton FFB and in year 2012 chemical usage is 0.0658 gram/ton FFB. For Paraquat dicloride the company does not appliy this chemical any-more based on evidence of management commitment through internal correspondence from Region Head of East Kalimantan 1 and 2, addressed to all Head of Estate number 0091/OPS/XI/2012 on Novem-ber 30, 2012 the content is about:



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1. In the annual budget plan 2013 , paraquat usage in East Kalimantan Region 1 and 2 is not allowed 2. The paraquat usage in 2013 if any, is just remaining stock from previous stock purchased in 2012 3. The paraquat usage on point number 2 above, should be refer to Government regulation number

949/1998 4. To ensure this commitment in implemented, all of Estate Head shall reported all paraquat stock from

previous year at the latest on December 31, 2012. The company has conduct training for chemical workers on September 5, 2013 attended by 64 chemical workers, trained by “Sygenta” pesticide supplier collaboration with Pesticides and Fertilizer Commision, Ministry of Agriculture. Training evidence includes photographs, training material about chemical handling, first aid on chemical contamination and certificates. The estate maintain lists of chemicals applied each year, i.e. for Puhus 1, chemicals applied in year 2012 are as follows: Agristick 400L, Ally 40WG, Garlon 670EC, Gramoxone 276SL, Round up 486SL, Starane 290EC, Termiban 400EC, Klerate 0.005B. Records for year 2013 show that Gramoxone, containing para-quat was no longer used as the company has stopped use of this chemical. At chemical store of Puhus 2 estate, there was sighted only 5 containers of Gramoxone which is old stock from year 2012 and no long-er in use or used sparingly by the estate. For chemical waste, the company categorized that waste is hazardous waste, and the company has de-livered the chemical waste to the collector licensed, based on evidence of hazardous manifest number 0001215 on February 21, 2013 with transported unit number KT 8557 BS with type hazardous delivered is container contaminated chemical, chemical container, chemical expired. It was confirmed during interviews with female sprayers at Puhus 2 estates that the company conducts pregnancy tests for them once every 3 months, and if found to be pregnant, the female sprayer will be transferred to work not involving handling of chemicals. The company also conducts the medical checkup for spraying workers to check the cholinestrase level in workers blood regularly, and based on record medical checkup there is no test result is higher than standard. The company has commitment if any workers have test results which are higher than standard, the company will immediately move or replace the workers handling chemicals to manual work not involing chemicals. Compliance status: Full Compliance

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

Findings: The company has policy of Quality, Environmental, Occupation, Safety and Health dated December 01, 2010. The company has the Quality Guidelines PDM-AGR-R00 valid from January 2013, in page 10, point 3 state about the work environmental that is safe and healthy and the content informed about: 1. Make a list of hazard and risk identification 2. Control of chemical usage in work place 3. Planning, action and monitored and also evaluation periodically of management of environmental and

health safety include the medical checkup for worker in high risk condition, socialization of environ-mental and health, training for first aid, emergency responsed and PPE’s usage.

4. Responsibility for PPE’s for all workers 5. Social workers insurance The company has SOP-AGR-037-R00 valid from March 1st, 2013, the content was explained about the risk management with: 1. Elimination is the removal of hazards or environmental pollution 2. Substitution is replace or cause accident or environmental pollution 3. Engineering technique is action to protect the cause of accident or environmental pollution 4. Administration management is action to informed the cause of accident or environmental pollution 5. PPE’s is the latest alternative to handle the risk management for all workers The company also has created awareness for safety and health for all workers through the signboard in-formation in the Division Office, housing, evacuation route, emergency response and emergency call re-spon. And the company has the procedure SOP-AGR-SHE-03-R00 about Occupational Health and



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Safety. The policy and SOP was informed to all workers every morning through “morning talk” and was posted on bulletin board “papan informasi” and can be accessed by anyone. The responsible person for health and safety programmes has been identified. Monthly minutes of OSH Committee (‘Panitia Pembina Kesehatan dan Keselamatan Kerja’) meeting were sighted, e.g.: Monthly i.e : 27 Februari 2013 attended by Chairman OSH committee. All employee are covered by Accident insurance in Jamsostek Program work insurance accident (JKK), pension insurance (JHT), life insurance (JK), and health insurance (JPK), evidence of payment in Decem-ber 12, 2012 The occupational health and safety committee has meeting’s program accordance with the safety and health management program at 3-monthly intervals. The meeting was attended by member of committee representing every department, all person listed on OSH committee organization structure shall attend the meeting as scheduled. There are has evidence for meetings was implemented on March 01, 2012 with evidence is attendance list and the result of the meeting was send to Department of Labour Officer and Transmigration of Kutai Timur on (Laporan P2K3 No. 001/P2K3-DIN/I/2013 dated on January 25th, 2013, and cc to Head of Labor And Transmigration Kalimantan Timur Province, report covering activity as per Rapat OHS, OHS inspection report, Usage of Chemical ,Usage of Fire Extinguisher, Waste Balanced, Training and Emergency drill. Field workers are provided with appropriate PPE by the company. Sprayers PPE consist of full body plas-tic suits, boots, goggles, cloth masks and rubber gloves while harvesters are provided with safety helmets, boots, cloth gloves and goggles. Sprayers and harvesting mandors at Puhus 1 estate were sighted to have first aid kits with them on site. The kits are completed with cotton, gauze, iodine, scissors, and eye drops. A sprayer mandore (foreman) and harvesting mandore interviewed on-site at Puhus 1 estate has first aid kits available on site and records of first aid training for the mandores done on 21 October 2012 (for the sprayer mandore and 47 other staff) and 26 May 2012 (for both mandores and 12 other staff). There is al-so evidence of evaluation of training effectiveness for both mandores and other staff that underwent train-ing. First aid trainings are done at group level and include mandores and staff from Puhus 2 and 3 as well Maps of OHS and first Aid equipment available and check implementation Regular check for boiler operators is available covering Audiometric test, and Cholinesterase level test for Operator Boiler, operator Engine Room, Operator Steam Vessel periodically once a year. Risk assessment was conducted to identify any potential risk and documented Health Identification, Risk Assessment and Risk Control (HIRARC), FM-SHE-01-R00, updated in 01 February 2013, cover all job type in Plantation and POM. Example for regularly checkup i.e.: audiometric tests for workers working at noisy work areas and operators of heavy equipment, conducted on 25 April 2013 for 19 workers from Pu-hus 1 estate, 14 workers from Puhus 2 estate and 9 workers at Puhus 3 estate. All workers were found to be in normal health except for two workers, a grass cutter operator and genset operator from Puhus 3 es-tate found to have some hearing abnormalities. The estate manager has taken immediate action as sight-ed in letters dated 25 May 2013 requesting transfer of the workers to other work in quiet areas. Evidence sighted for the grass cutter operator is letter dated 22 June 2013, stating that he was transferred to oil trap management and cleaning, and it is documented in daily work reports that the genset operator was since transferred to carry out harvesting work. The mill also carried out audiometric tests for workers. Based on audiometric test done on 20 April 2012 found a wheel loader operator with significant hearing loss (condition since birth) and several workers with slight hearing loss. There is evidence that the mill management transferred the workers to an area of low noise, for example letter of transfer for two workers transferred to loading ramp, and one boiler operator transferred to kernel bagging from 1st April 2013 with evidence work done at their new positions sighted from pay-slips. First Aid basic training has been given to workers at the estates and mill, the training was provided by the company’s doctor and representative from Manpower officer on May 23th, 2013. Accidents records at estates are maintained and records show that most accidents that occur in the es-tates are of low impact. Only one case of medium impact occured on 21 May 2013 at Puhus 2 estate,



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when a harvester was resting and he placed his short length harvesting pole ('dodos') against tree next to him but it fell and injured his foot. The worker was given two days of medical leave. The estate has a doc-umented investigation report on the accident including analysis of the cause and suggestions for future prevention, i.e. training of workers on safe placement of equipment. There was no insurance claim by the worker for this incident, and regularly reviewed by committee of health and safety (P2K3) every 3 months. There is evidence of occupational accidents investigations FM-SHE-05-R00 Preliminary Report of Accident, as reported within OHS Committee three monthly report to the government. Compliance status: Non Compliance NCR 2013 – 02 of 06 The OSH report made out to the Head of Labour and Transmigration does not include “near miss for acci-dent” and there is no record of near miss accidents.

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

Findings: There is a standard operation procedure for training has been established by PT Dharma Satya Nusanta-ra as seen on SOP-AGR-HRD-05-RO2 issued on April 1, 2012. The organization has been annual training schedule e.g. for year 2013 as stated on form “FM-HRD-19-R01” where informed the title of training, type (in-house training or public training), quantity of participants and has been authorized by mill head and plantation head or head of HRD department (for level 4-up). The training schedule is based on the results of competency gaps in accordance with worker’s position and competence. The mill and estates also have additional SOP-AGR-016-R00 regarding training which states that workers are to be evaluated periodically by their superiors to identify gaps in training needs. All workers with identi-fied training needs are listed and approved by the mill or estate manager to be submitted to the head of-fice, and based on this a training programme for workers is developed. For example, completed gap com-petency form was sighted and training programme for year 2013 for 77 mill staff identified to require train-ing was sighted. For estates, sample completed gap competency form dated 15 September 2012 was sighted for Puhus 1 estate which listed 29 staff requiring training, while for Puhus 2 estate, 10 staff were identified requiring training in various aspects such as Environment and OSH, store administration, data filing and archiving and water management. Results of competency gap evaluations for each estates was used to develop the training program for year 2013 which is planned at group level for office and field staff. Puhus 1 estate also has an annual training program for field workers (harvesters, sprayers, etc). There is also evidence of evaluation of training effectiveness, e.g. for 4 staff at Puhus 1 estate which at-tended first aid training on 25 September 2012. The annual training schedule of year 2013 in PT DSN POM for level 3-down personnel (mandores) in-cludes warehouse administration training, human resources administration training, maintenance A2B & utility, OHS & environmental training, first aid basic training, electric basic training, Windows & MS office training, function of monitoring training, management project technique training, water treatment training, waste control process training, IT and preventive mantainance hardware training, welder training, mainte-nance AC training, operating sterilizer training, SIO certification, etc. Estimate of quantity of participant is 110 persons. The annual training schedule of year 2013 in PT DAN for level 4 down (staff) such as effective leadership training, human resources development training, Swakarsa basic training program, problem solving and decision making training, IT project management training, six sigma training and record keeping training. Estimate of quantity of participant is 16 person. The level 3-down personnel such as warehouse admin-istration training, human resource administration training, record keeping training, OHS & environmental training, electric basic training, maintenance A2B & utility training, maintenance AC training, supervisory course for field conductor I, Windows & MS Office, water management, and management of land applica-tion training. At time of audit, 9 planned training sessons had already been conducted for PT DSN POM for level 3-down personnel where records of attendance list and material training are available as evidence that train-ing has been carried out. Training already conducted in PT DSN POM and PT DAN for level 4-up per-sonnel (management level) is fire brigade certification, workshop of defined job profile and awareness CSR (ISO 26000) but these training outside of the planned. Records of attendance list and material train-



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ing has available. It has available an evaluation of the effectiveness each training have been implement-ed (FM-HRD-17-R01). The organization have been carrying out training of agronomy (maintenance and fertilization) to scheme smallholder (Long Pekau Wel Guag group in Nehas Liah Bing village) in Mr Dominitus Ding Jie estate (dated on October 24, 2012). Records of minute of meeting, attendance list and documentation/ photo are available. The organization has procedure of the procurement of product or service (SOP-AGR-025-R00) and eval-uation of performance contractor (SOP-AGR-043-R00). Evidence that company uses experienced or trained contractors can be seen from records of selection contractor process and records of the evaluation of performance contractor on behalf PT Vicker Hoskins and CV Sulatech The company maintains records of trainings for workers, e.g. at mill. 1. Certificates of 4 boiler operators which attended training on 29 April - 3 May and awaiting their Opera-

tor Licenses ('Surat Izin Operator' or SIO). 2. Certificate of heavy machinery operator for new staff who attended training on 18 June - 2- June 2013

and awaiting his Operator Licenses ('Surat Izin Operator' or SIO). 3. Simulations on fire-fighting done on 2 February 2013 and 28 May 2013 with photographic evidence For estates, the following training evidence was sighted: 1. Certificate of Occupational Safety and Health Engineering of Technical Training dated 18 July 2012

for farm tractor operator at Puhus 1 estate. A copy of the tractor operator license no. 12 4452-OPK3-PAA/VII/2012 was sighted but the operator interviewed on-site stated that he had yet to receive a copy of the license. This was raised as an observation

2. Records of first aid training done for workers at Puhus 1 division IIIA workers with 48 participants (mainly harvesters)

3. Puhus 1 estate has records of EFB application training for harvesters and field workers on 16, 17, 18, 19, 22, 23, 24, and 26 April.

The mill only uses contractors for CPO and EFB transport and evaluates contractors using a standard se-lection form where criteria for selection includes years of experience, work references, license for work conducted ('Surat Ijin Usaha' or SIU) and competent personnel. Contractors with evaluation score above 7 of 10 can be selected by the company. Sample completed selection forms for contractors at Puhus 1 es-tate were sighted, e.g.: 1) Contractor for FFB transport, selection form dated 2 January 2013 and evaluation score of 7.9 2) Contractor for dump truck rental and EFB transport, selection form dated 2 January 2013 and evalua-tion score of 7.7 Contractors engaged to carry out work for the company are also evaluated once every 6 months to de-termine effectiveness of work as sighted from evaluation forms from two contractors engaged for FFB transport. Compliance status: Full Compliance

Criterion 5.1: Aspects of plantation and mill management, including replanting, that have envi-ronmental impacts are identified, and plans to mitigate the negative impacts and promote the pos-itive ones are made, implemented and monitored, to demonstrate continuous improvement.

Findings: PT Dharma Agrotama Nusantara has a documented Social and Environmental Impacts Assessment pre-pared by consultant Agriculture Polytechnic of Samarinda State, by four qualified team members. The AMDAL was approved by the AMDAL Commission of Kutim Region on 23 October 2009, as per decision letter no. 188.4.45/674/HK/X/2009 regarding Approval of Environmental Activities related to Development of Plantation and Mill with processing capacity of 60 tonnes per hour and area of ±10000ha. The AMDAL includes the environmental management and monitoring plan (RPL/RKL) to be implemented by the com-pany. For PT DAN, the plan covers aspects ranging from regular testing of workers health, testing of river water quality, monitoring soil erosion and soil fertility, monitoring of planted area, management of disturb-ances to HCV and conservation areas, gauging of community's perception and health, enhancing facilities and work opportunities for communities, and testing of ambient air quality, noise and smell.



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PT Dharma Satya Nusantara mill has a separate document on management and monitoring efforts (UPL/UKL) document prepared and approved by the Environmental Department of East Kutai region for mill capacity of 60 tonnes/ hour based on approval letter no. 332/660.1/2.1.LH/III/2009. The management and monitoring efforts covers plans to manage and monitor pollutants and emissions, including solid wastes (e.g. scrap metal, used batteries, EFB, fibre, shell), liquid waste (condensate, oil), gas (smoke), noise, vibration and ash, and other aspects such monitoring accidents, work vacancies, social conflicts, OSH. The plantation and mill carries out report on implementation of their RPL/RKL and UPL/UKL respectively, i.e last implementation report were prepared for Semester II (July - December 2012) and Semester I (January - June 2012). In the estates implementation report, all aspects required to be reported were in-cluded in the report. It was stated in the last report for Semester II that it was found that river downstream BOD of 9.47mg/l was slightly higher than the upstream BOD of 8.91mg/l, which is higher than the legal requirement of 3 mg/l. However, since the results show the river BOD already exceeded the legal re-quirement, it can be said that the pollution was not significantly caused by the mill. The mill includes report of analysis of parameters required in their UPL/UKL, including wastewater quality, genset and boiler emissions, ambient air, water biota testing, noise, etc. However, some parameters are not tested in accordance with the required frequency as stated in the UPL/UKL, e.g. for noise, vibration, boiler emissions and genset emissions are required in the UPL/UKL to be tested once every 3 months, but testing is only done once every 6 months. And some aspects required to be included in the report have not been included, e.g. report on job opportunities, occurences of road accidents and monitoring of road conditions, usage of PPE, medical checks and frequency of occupational accidents. This was raised as a nonconformity. There has been no revision to the environmental management document due to no change in companies operating area or activities. NCR 2013 – 03 of 06 Some parameters are not tested in accordance with the required frequency as stated in the mill’s UPL/UKL, e.g. for noise, vibration, boiler emissions and genset emissions are required in the UPL/UKL to be tested once every 3 months, but testing is only done once every 6 months. And some aspects re-quired to be included in the report have not been included, e.g. report on job opportunities, occurences of road accidents and monitoring of road conditions, usage of PPE, medical checks and frequency of occupational accidents. Compliance status: Non-compliance

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

Findings: PT Dharma Agrotama Nusantara (Dharma Satya Group) has conducted an assessment and identification of protected, rare and endangered species and HCV habitats within their area. An identification of flora and fauna has been carried out by a consultant, Daemeter Consulting in year 2012. The results of these assessments are documented in PT DAN’s HCV assessment report. Based on the HCV assessment report it was stated that 3 types of HCVs were identified in PT DAN, i.e. HCV 1 (forest areas containing globally, regionally or nationally significant concentrations of biodiversity values), HCV 3 (forest areas that are in or contain rare, threatened or endangered ecosystems), and HCV 4 (forest areas that provide basic services of nature in critical situations). Identified HCV 1 areas include HCV 1.1, HCV 1.2 and 1.3 areas due there are areas which has supporting function of biodiversity to con-servation area and to identification of many wildlife species of protected and endangered status as ex-plained above spread throughout riparian Telen River area. Total HCV area in PT DAN is 496 Ha such as riparian Telen River (HCV 1.1, HCV 1.2, HCV 1.3 and HCV 3) is 368 ha, block of conservation VIII (HCV 1.1, HCV 1.2, HCV 1.3 and HCV 3) is 128 Ha and water flow atau river inside areas (HCV 4.1). PT DAN has HCV management plan (Monitoring and Action Plan) for period 2012 to 2015 which decribes the activities planned for each identified HCV in PT DAN’s estate such as training and communication to



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society in around estate and employee, inventory of regulations regarding the protection of flora and fauna are protected, installation of boundary stone and sign board for HCV areas, security patrol for HCV areas, inventory of fauna and flora in HCV 1.2 and HCV 1.3 areas, inventory and maintenance of seedling for Dipterocarp species, rehabilitation for HCV areas, preparation of guidelines for management of riparian, monitoring of the ecosystem of river, identification, monitoring of HCV areas regulary and evaluation of areas that have high erosion potential. It has been implemented for all plans. To prevent inappropriate hunting and collecting activities within their area (block of conservation VIII), the company established a mechanism for iIlegal fishing and hunting where company also made sign boards and has periodic patrolling programmes by security. The organization has carry out training to employees and society in around estate about protected spe-cies and HCV, signboard of fauna protected / ERTs (endangered, rare anda threatened), and signboard about HCV, Telen river, Kenden Besar river, Kenden Kecil river, prohibited of spraying in riparian or water source, and prohibited of hunting . PT DAN has appointed dedicated officers to monitor HCV management plans and activities. They are SHE-Conservation department’s officer. They will be assisted by several estate officers in carrying out their daily activities. All team members were trained on management and monitoring of all HCVs, and the training was conducted by Tropenbosch consultant in Yogyakarta year 2011. Compliance status: Full Compliance

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

Findings: The mill has identified all sources of pollution and wastes, including a map showing sources of emissions of methane and carbon dioxide. The mill also has done an Identification of Environmental and OSH as-pects and impacts, including sources of wastes and pollution such as the POME, genset, boiler, sludge pit, etc. The estates have documented identification of waste and pollution sources, for example, Puhus 1 estate has a list of waste and pollution sources identified including used chemical containers, used oil and petrol containers, and contaminated rags, filters and spare parts from the workshop. Domestic wastes at estate housing are separated into organic and inorganic waste. Organic wastes are disposed as mini compost heaps behind housing areas, as sighted at housing at Puhus 1 Division IIIA housing area. Inorganic wastes are collected once every two weeks from each division and sent to land-fills located away from housing within the estate, and landfills are covered immediately to prevent flooding and risk of falling in. Covered landfill at Puhus 1 estate Division IIIA was sighted. The mill has a license for temporary storage of hazardous wastes dated 27 December 2011 and valid for 5 years, including permission to store used lubricants, used batteries, used oil filters, contaminated rags, printer circuit boards, used chemical containers, chemical bags and clinical waste. Maximum storage time permitted before collection is 90 days. The mill contains detailed daily inventories of all hazardous wastes collected. Collection of hazardous waste is by contractor CV Sumber Agung with valid license for collec-tion from the Governor of East Kalmantan, dated 16 August 2011 and valid for 5 years. There are records of collection of hazardous wastes within 90 days, such as two manifests of collection by the contractor dated 28 March 2013 for collection of 1356 litres or 7 drums of oil, collection of oil filters and petrol con-tainers (27 pcs of 0.25 drums), paint cans (1.5 drums), oil containers (3 drums), agrochemical containers (14 drums), wastewater chemical containers (1 drum), contaminated rags (0.5 drums) and used battery (1 piece) dated. Previous manifests dated 10 May 2013 and 28 March 2013 were also sighted. All medical waste are collected at the mill and sent to the main plantation clinic for PT Swakarsa Sinar Sentosa, which will then be sent to the nearby hospital to be incinerated. Sample records of medical wastes sent by the mill were sighted, dated 27 May 2013 (83 kg of wastes sent), 6 May 2013 (41kg sent) and 4 April 2013 (42kg sent). The estates will send all their hazardous wastes to the mill once a week in accordance with the company's internal memorandum, and delivery notes of amounts sent are maintained. At temporary hazardous waste



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stores at Puhus 2 estate office, there are delivery notes of dates and amounts sent. A temporary hazard-ous waste store was also sighted at Divison 6 housing, which also sends their wastes to the estate store before being sent to the mill. However, the temporary stored at housing is not securely locked or en-closed, and located next to the children's creche with children sighted playing nearby. This is a potential health risk to the children and was raised as an observation. Compliance status: Compliance with observation

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

Findings: The company has record of energy usage from fossil fuel and renewable energy from shell and fiber, with evidence is: 1. Energy efficiency records in 2011: Based on energy recapitulation from last 3 months in 2011, rec-

orded that fossil energy usage is 23,794 litres with FFB processed is 89,116.149 tonnes, with fossil fuel usage average is 0.27 litres per tonnes FFB or 1.07 litres per tonnes CPO.

2. Energy efficiency records in 2012: Based on energy recapitulation from January – December, total fossil fuel energy usage is 554,791 litres with FFB processed is 319,319.085 tonnes, with fossil fuel usage average is 0.41 litres per tonnes FFB or 1.64 litres per tonnes CPO.

3. Energy efficiency records in 2013: Based on energy recapitulation from January – May, total fossil fuel energy usage is 264,964 litres with FFB processed is 109,377.458 tonnes, with total fossil fuel usage average is 1.25 litres per tonnes FFB or 5.12 litres per tonnes CPO.

The company has target to reduce of fossil fuel usage from their activities with substitution of shell and fi-ber as a fuel peridocally, evidence is: 1. Record of shell and fiber usage in 2013 from January – May, i.e.:

- Total shell produced is 6,336,357.515 kg - Total fiber produced is 14,219,069.540 kg - Total FFB processed is 109,377,458 kg - Total shell usage average is 47,560 kg/tonnes FFB or 194,905 kg/tonnes CPO - Total fiber usage avergae is 124,080 kg/tonnes FFB or 510,849 kg/tonnes CPO

2. Record of shell and fiber usage in 2012 from January – December, i.e.: - Total shell produced is 20,475,089.785 kg - Total fiber produced is 45,127,997.000 kg - Total FFB processed is 349,526,870 kg - Total shell usage average is 41,230 kg/tonnes FFB or 164,513 kg/tonnes CPO - Total fiber usage avergae is 121,417 kg/tonnes FFB or 484,031 kg/tonnes CPO


Criterion 5.5: Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice.

Findings: The company has no documented assessments where fire has been used for preparing land for replant-ing as the company has not done any replanting and also implements zero burning during land clearing as stated in their work instruction no. IK-AGR-OLP-01-R01 dated 1 February 2012. Evidence of implementa-tion of zero burning for land clearing for new plantings was sighted and explained under Criterion 7.7 be-low. PT DAN has a document SOP for emergency response to land burning as per SOP-AGR-037-R00 dated 1 March 2013 regarding Occupational Safety and Health including a flowchart describing actions to be taken person who sight land fires to actions to be taken by emergency response teams. Emergency re-sponse teams have been identified at each estate. To date, there are no incidences of land burning. The company has records of fire fighting simulations conducted at each estate. The last simulation was done on 2 April 2013 at Puhus 1 estate (46 participants) and Puhus 2 estate (38 participants) and on 3 April for Puhus 3 estate (122 participants). Evaluation of response time was also conducted.



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Each estate has a mobile fire fighting unit in case of fires, and fire extinguishers and sand located at divi-sion offices as well as worker's housing. Compliance status: Full Compliance

Criterion 5.6: Plans to reduce pollution and emissions, including greenhouse gases, are devel-oped, implemented and monitored.

Findings: The mill has identified all sources of pollution and emissions, including a map showing sources of emis-sions of methane and carbon dioxide. The mill also has a documented Identification of Environmental and OSH aspects and impacts, including sources of pollution such as the POME, genset, boiler, sludge pit, etc. The mill carries out monitoring of pollution and emission sources identified, including wastewater quality, ambient air quality, genset and boiler emissions quality, and noise and results are reported in their imple-mentation report for the UPL/UKL every 6 months as per legal requirements. Checks of last two reports prepared for year 2012 show no exceedance of the legal standards for all analyzed aspects. The mill also calculates the amount of greenhouse gas emissions produced from their operational activities The company has conducted GHG calculations using tools of GHG Calculation Beta Version RSPO. Based on GHG calculation, GHG valued released is -0.016 kgCO2eq/kg FFB and 0.711 kgCO2eq/kg CPO. Accordance to the calculation, sequestration from palm oil and HCV area are calculated, and has big val-ue, so this is very helpful to GHG emission balance, when the sequestration value are -86,097,885 kgCO2eq/year. Others information from GHG calculation is activity with big GHG emission value, with the activity is land clearing is 68,821,757 kgCO2eq/year and GHG emission from POME instalation is 59,068,489.65 kgCO2eq based on information from GHG calculation, the company has management pro-gram to reduce and GHG mitigation through the evaluation of GHG value every year and carry out the re-forestation, and also reduce the fossil fuel usage and minimize the chemical usage peridocally. The company has a program for monitoring and mitigation of greenhouse gas emissions, with records of implementation in year 2013. The plan includes conversion of fibre and shell to replace fossil fuel at the genset, mitigation of emissions from wheel loaders and CPO trucks through planting of various trees (Trembesi or rain trees, soursop and angsana trees which help to absorb GHG emissions), regular testing of vehicles, and periodic maintenance. Based on the progress report, the plan is being well implemented, as to date all trees have been planted (101 'trembesi' trees, 20 soursop trees and126 of 130 'angsana' trees planted) and the company has carried out vehicle emission opacity testing for the mill wheel loaders and one truck on 12 May 2013. The mill is currently applying effluent to 19 blocks (E31-E32, F30-F38, and G30-37) in Puhus 2 and Puhus 1 estates for total area of 475 ha. The mill has a work instruction for land application as per IK-AGR-OLP-10-R00 which states dosage of 750m3/ha/year to be applied, or 250m3/ha per rotation with 3 rotations ap-plied once every 4 months. The mill has a schedule for land application at each block once every 3 months and maintains daily records of amounts of POME applied to each block, ha applied, no. of units (flatbeds) applied and so on. However,it could not be confirmed if POME dosage was applied correctly to the field due to discrepancies in the POME application report for January 2013, for example: 1) Stated in report that total POME applied to block F30 was 14,215 m3 over 60ha in January 2013, but based on mill's license for land application, F30 only covers area of 39 ha, so maximum amount of POME to be applied to this area should be 39ha x 250 m3 or only 9750 m3. 2) Stated 446 m3 of POME was applied to 1.9 ha in block F33 in January 2013 but according to the schedule, application to this block is scheduled for March 2013, not January 2013 3) Stated that 13,057m3 was applied to blocks F33,F35, F36 and F37 covering 55ha. However, total hec-tarage of blocks F35-F37 is only 25 ha, and block F33 is not scheduled for land application in January Land application area at block F38 was visited and flatbeds are observed to be well maintained. Compliance status: Non-compliance NCR 2013 – 04 of 06



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It could not be confirmed if POME dosage was applied to the field in accordance with the company’s work instruction IK-AGR-OLP-10-R00 due to discrepancies in the POME application report for January 2013, for example: 1. Stated in report that total POME applied to block F30 was 14,215 m3 over 60ha in January 2013, but

based on mill's license for land application, F30 only covers area of 39 ha, so maximum amount of POME to be applied to this area should be 39ha x 250 m3 or only 9750 m3.

2. Stated 446 m3 of POME was applied to 1.9 ha in block F33 in January 2013 but according to the schedule, application to this block is scheduled for March 2013, not January 2013

3. Stated that 13,057m3 was applied to blocks F33,F35, F36 and F37 covering 55ha. However, total hectarage of blocks F35-F37 is only 25 ha, and block F33 is not scheduled for land application in January

Criterion 6.1: Aspects of plantation and mill management including replanting that have social im-pacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improve-ment. Findings: There is a report of social impact assessment (SIA) owned by PT Dharma Agrotama Nusantara(PT DAN) including PT Dharma Satya Nusantara (PT DSN) palm oil mill , Kutai Timur Regency, Province of East Kalimantan on December 2011, prepared by Daemeter Consulting, Bogor. The report contain impact of the company to community, employee, and local government, and covers positive and negative impacts with evidence of participation of local communities and all affected parties. The report describes impact of area clearence and acquisition process, work health and safety, community’s perception to the company, community helath, work opporunity for the people, potential social conclict, earning uprise advanteaes, empowering of community organization and smallholder development. In order to monitor and to manage the social impact the company already established a management plan through community participatory. Since there is no change on the company operational coverage there is no adjustment need for environment and social related document regarding to the assessment. There is a report of social impact management and monitoring of PT DAN including PT DSN palm oil mill for 2013 (up to May) which shows that the action plan was conducted in line with established time schedule which is for 6 month or 1 year period. The impacts being monitored and managed are as follow: 1. land clearing and acquisition process 2. worker health and accident risk 3. community perception 4. community health 5. work advantage 6. minority marginalisation and donation to increase community economic viability. 7. social conflict. The company pays special attention to the smallholders. There is minute of workshop meeting on October 24th, 2012. The material of the workshop is all about how to maintain palm oil, seeding and pest and dis-ease control, attended by 26 smallholder membesr. Also there is official report on June 7th, 2013 regard-ing to briefing on the full operations of schemes of smallholder, attended by 24 persons. Compliance status: Full Compliance

Criterion 6.2: There are open and transparent methods for communication and consultation be-tween growers and/or millers, local communities and other affected or interested parties.

Findings: For communication and consultation with stakeholders, the company established procedure for this matter i.e. SOP no. 0215B/SWA-CSR-WHU/VI/2012. This procedure describes and has explanation regarding company’s mechanism of communication and consultancy with local community, NGO and other local or-



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ganisation related to common interest in order to achieve positive dialogue and result accepted by stake-holder. Attachment 1 of the procedure consist of mechanism of conflict, complaint, grievance resolution for land claim, labor affair, work transaction and another related matter. The community is able to deliver their at-tention by letter of verbally by come to the related division office which is CSR division. The supporting ev-idence to the claim is able to be submitted to the officer. This procedure has already been informed to the local stakeholders on June 7th, 2013 and they agree with the procedure. As an evidence of implementation of the prcedure, there is record of community’s aspiration and the fol-low up as below:

1. Letter no 001/PN/DS-MM/X/2012 on October 15th, 2012 from Natal New Year celebration Com-mittee of Kemah Injil Church of Marga Mulia Village. Within the company’s response letter on No-vember 20th, 2012 no. 001/PN/DS-MM/X/2012 stated that this aspiration will be delivered to the top management. And there is official report on December 8th, 2012 stated that the company al-ready fulfill this aspiration by sending donation as Rp. 1,500,000 to the committee.

2. Letter on March 20th, 2013 from Ben Heas villagers regarding to donation request for village road service. There I soficial report on 31st May 2013 stated that this aspiration already met by the company by sending 1 unit back hoe loader and suficient diesel fuel.

3. Letter on February 11th, 2013 from Diak Lay villagers request for company’s donation for recently fire victim. There is official report on February 12th, 2013 stated that the company already gave a donation amount of Rp. 25,000,000.

4. Letter on April 5th, 2013 from committee of local traditional art festival of Nehas Liah Bing villagers regarding to request for company’s vehicle usage for a festival. There is official report that the company allowed them to use the vehicle for the purpose.

Within procedure no. 0215B/SWA-CSR-WHU/VI/2012 for communication and consultation with stake-holders, the company has named some responsible officers to deal with, including their personnel phone number. Compliance status: Full Compliance Criterion 6.3: There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties. Findings: The company has an open system dealing with communication and consultation with the communities for the conflict and dispute resolution was signed by all communities on June 7, 2012 which covers identification, calculation and compensation procedures to communities. There is evidence for responses made by the company to handling communities complaint from 3 villages, regarding complaints that the local businesses do not have adequate opportunity to be involved in the company’s activities. In the re-sponse to this: - The company permits one FFB transporter for each village to transport FFB from estate to PT DSN

mill, - The company allows local businessman to carry out some projects such as road maintenance ac-

tivities, housing construction and domestic waste collector. Compliance status: Full Compliance Criterion 6.4: Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. Findings: The company has an open system dealing with communication and consultation with the communities for the conflict and dispute resolution was signed by all communities on June 7, 2012 which covers



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identification, calculation and compensation procedures to communities. The company has agreement with local communities regarding payment of compensation. There are has evidences of receipt of compensation by affected parties, and the record of negotiation process has been given to compensation recipients. Example: Communities from villages, i.e: Villager from Diak Lay village received Rp 6,664,000 for compensation of 2.56 ha area.. During main audit found that signed agreement document available at CSR office and at the village since the company distributed the document to the related party. Compliance status: Full Compliance

Criterion 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.

Findings: There is an updated salary list of PT DAN and also for PT DSN for permanent and non permanent em-ployees for 2013 period shows the lowest salary received was as Rp. 1,765,000. This rank is in line with the minimum regional salary set by the government which is Rp. 1,765,000 per month. There is Decision Letter from the Director no. 004/DIR/I/2013 regarding to salary increase for permanent daily rate workers and non permanent daily rate workers to Rp. 58,835 per day, in order to comply to the minimum wage set by the government. It is also stated in this decree that the permanent daily workers are entitled to get 0.5 kg of rice per day, and the company doubles this amount so each worker received 15 kg of rice every 15 days per person. For the non permanent daily rate worker the salary is Rp. 70,600 per day. There is company regulation for PT DAN and for PT DSN for 2013-2015 period regarding daily opera-tions, worker responsibilities and rights. This regulation approved by Head of Manpower no: 318/PHIJSK-PKKAD/IV/2013 and no. 311/PHIJSK-PKKAD/IV/2013 on 26th of April 2013. The company has established infrastructure for workers, such different types of housing including perma-nent and wooden barracks, individual housing, mosque, church and elementary school, sport facilities such badminton and football ground. Clean water already available through water treatment unit, but not sufficient for bathing and washing. Water for bathing and washing was obtained from small river or trench lined directly to every house with-out any treatment for cleaning. This condition is not comply with memorandum of EHS no, 073/SHE/VIII/2012 on Agustus 7th, 2012 where stated that water prepared for the worker shall being treated by soda ash and alum before being supplied to the house. This condition was sighted at Puhus 1 and Puhus 2 estates where also found that the septic tank was leaking and organic waste pits was full of water. This was raised as a nonconformity. There is work agreement no. 008/DAN/PU2/2013 regarding to FFB transportation with CV Putra Be-layan and no. 009/DAN/PU2/2013 with CV Aneka Lima Jaya from Makmur Jaya Kombeng Village. Arti-cle no 4 of this agreement state that the contractor shall provide proper PPE and social worker insur-ance and the unit for transportation of FFB shall use nets for safety reason. However evidence was found that some contractors do not use safety nets properly as required in work agreement no. 009/DAN/PU2/2013 between the company and CV Aneka. This was raised as a nonconformity. Compliance status: Non Compliance NCR 2013 – 05 of 06 Infrastructure provide by the company at workers housing was not sufficient. For example, clean water was not sufficient at Puhus 1 and Puhus 2 estates and it was also found that the septic tank was leaking and organic waste pits was full of water. NCR 2013 – 06 of 06 Evidence was found that some contractors do not use safety nets properly as required in work agree-



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ment no. 009/DAN/PU2/2013 between the company and CV Aneka.

Criterion 6.6: The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collec-tive bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. Findings: The company allows the worker to perform worker union. In article 4 part (g) of company regulation stated that worker entitled to establish worker union, and to be a member and leader of the union, based on ap-plicable government regulaton. There is record of worker union meeting on December 29th, 2012 attended by 5 persons regarding to work program and member recruitment mechanism. And also there is record of meeting of worker union on February 23rd, 2013 attende by 5 person regarding to action plan for creating awareness and member an-nual fee mechanism. Compliance status: Full Compliance Criterion 6.7: Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education programmes. Children are not exposed to hazardous working conditions. Findings: The company policy regarding child labour was defined since year 2011 by Head of management System & Human Resources Department, and informed to employees through an internal memorandum no: 009/HRA/VII/2011 dated on July 12, 2011. Also there is stated in company regulation 2013-2015 period article 5 that age requirement for employee is 18-45 years, unless otherwise decided by Director. During onsite audit in PT DAN and PT DSN there was no evidence found of employment of worker less than 18 years. Compliance status: Full Compliance

Criterion 6.8: Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.

Findings: Policy about equal opportunities for PT DAN stated on company’s regulation period year 2013-2015 sec-tion II article 5.3 signed by the Director of PT DAN approved by Ministry of Manpower and Transmigration republic of Indonesia through letter no. KEP.318/PHIJSK-PKKAD/PP/IV/2013 dated April 26, 2013. And company regulation period year 2013-2015 for PT DSN was approved through letter no. 311/PHIJSK-PKKAD/PP/IV/2013 dated April 26, 2013. The policy was informed only to employees and communities surrounding company’s location. Based on information from the local communities, company has regularly provided information about job vacancies in DAN and all companies member of DSN Group. Notices on job vacancies were distributed to 15 villages surrounding company’s area e.g. Muara Wahau village, Dabeq village, Nehas Liah Bing village, Long Wehea village etc. As sighted on company’s list of workers and employee there are approximately 1376 workers locals from East Kalimantan Province from level permanent workers, 3 down level (Supervisor level) until 4 up level (estate assistant) including office or estate staff. There is no evidence of discrimination, and the following is evidence of equal opportunities provided to all workers: • Female workers comprise around 30% of all of company’s workers • Female workers also have opportunities to have positions as office assistants such in the HR depart-

ment for training assistance. Workers of all ethnicities and religions, including Muslims, Catholics and other Christian denominations



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are provided with their respective places of worship such as mosques and churches in each estate. No workers interviewed on-site complained about any form of discrimination from the management of the estates or mill. Compliance status: Full Compliance

Criterion 6.9: A policy to prevent sexual harassment and all other forms of violence against wom-en and to protect their reproductive rights is developed and applied.

Findings: The management of PT DAN estate and PT DSN has a written policy regarding prevention of sexual har-assment and all other forms of violence against women, as well protection of their reproductive rights. The company’s regulation for 2013-2015 and its extension clause 12 page 11 contain prevent sexual harass-ment. The company established an SOP too for handling sexual harassment incident as seen on SOP no: SOP_AGR-049-R00, issued on February 15th, 2013 consist of complaint mechanism related to the issue and handling by the gender committee. Meetings to create awareness on this policy were conducted in every estate housing area such as in Puhus 1 and Puhus 2 estates on April 20, 2013. The company regulation was sent to all employee and workers and displayed at each plantation division office as seen in Puhus 1 and Puhus 2 estates. There is an internal memorandum issued by the Chief of Executive Hu-man Resource i.e. letter No. 010/HRA/VII/2011 dated 12 July 2011 and additional permit letter from Head MS & HRA dept dated June 27, 2012 regarding prohibiting pregnant and breastfeeding woman to conduct chemical spraying. Protection of woman’s reproductive rights is defined clearly on company regulation 2011-2013 clause 32 page 26 regarding maternity leave and menstruation leave There is no record of handling of sexual harassment since there is no incident so far. The company established a Gender Committee, with representatives from each estate division. There is evidence of implementation of the reproductive rights policy, for example, the company has cop-ies and records of maternity leave forms applied by workers and these records are kept by the HRD de-partment, estate clinic and estate office. As recorded on FM-HRA-02-R00 dated March 13, 2013 to June 12, 2013. The company has a grievance mechanism defined in procedure SOP_AGR-049-R00 for grievances, vio-lence against women and protection of reproductive rights, all complaints should be recorded on a form, i.e. “Handling of Sexual Harassment Complaint Form” (FRM-STD-005) according to procedure “Handling of Complaints of Sexual harassment SOP_AGR-049-R00. The company has also established a gender committee as a more specific grievance mechanism for female workers. As determined on the procedure, the gender committee will approach the parties involved to attempt to resolve the issues. All relevant rec-ords of gender committee activities will be stored properly in the committee office. Female sprayers interviewed at Puhus 1 and Puhus 2 estate were aware of the sexual harassment policy and able to name their female gender committee representatives, which are elected at each division level. Compliance status: Full Compliance

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

Findings: PT DSN palm oil mill did not provide FFB price for public since the company did not use any FFB from outgrower. The FFB come only from company’s own estate which is PT DAN and another group member company. There is work agreement for FFB and CPO transportation, as seen from the following work example agreements: 1. no. 003/DSN/PKS2/2013 dated on January 2nd, 2013 with one community member of Muara Wahau vil-lage regarding to providing truck for CPO transportation within January 2nd-June 30th 2013. There is evi-dence of payment on June 2013 of Rp. 15,774,480 for this service. 2. no. 007/DSN/PKS2/2013 dated on 2nd January 2013 with Benua Etam Cooperative regarding to provid-ing truck for FFB transportation. There is evidence of payment on June 2013 of Rp. 4,072,200 for this ser-vice. 3. no. 002/DSN/JKT/2013 dated on 2nd January 2013 with one community member of Melayu village at



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Tenggarong sub district regarding to providing truck for CPO transportation. There is evidence of payment on June 2013 of Rp. 28,194,600 for this service. Compliance status: Full Compliance

Criterion 6.11: Growers and millers contribute to local sustainable development wherever appro-priate.

Findings: For local sustainable development the company has made some donations and arranged programs for the local community. For example as below: 1. Official report dated on October 24th, 2012 regarding to tilapia fish distribution as 1,600 pcs to fisher-men group at Mara Wahau village. 2. Official report on September 12th 2013 regarding to donation of 1,000 pcs catfish and fish meal to fish-ermen group of Nehas Liah Bing village. 3. Official report on November 1st, 2012 regarding to scholarship for some students from Ben Heas vil-lage. 4. Official report on July 11-16, 2013 regarding to comparative study of Credit Union Cooperative oficer of Deabeq village to herbal industry in Jawa Timur province. 5. Official report on May 9th, 2012 regarding to company donation of Rp. 10,000,000 for traditional art equipment at Nehas Liah Bing village. Compliance status: Full Compliance Criterion 7.1: A comprehensive and participatory independent social and environmental impact assessment is undertaken prior to establishing new plantings or operations, or expanding exist-ing ones, and the results incorporated into planning, management and operations. Findings: PT Dharma Agrotama Nusantara has a documented Social and Environmental Impacts Assessment which was prepared by consultant Agriculture Polytechnic of Samarinda State, by four qualified team members. The AMDAL was prepared with the participation of local communities through interviews of sampled community members and questionnaires which covered economic and social components, community perception, and housing and community health. The AMDAL was approved by the AMDAL Commission of Kutim Region on 23 October 2009, as per deci-sion letter no. 188.4.45/674/HK/X/2009 regarding Approval of Environmental Activities related to Devel-opment of Plantation and Mill with processing capacity of 60 tonnes per hour and area of ±10000ha. The document was prepared after the plantation began operations as although the company engaged a con-sultant recommended by the local authorities to prepare the AMDAL in year 2006, it was found that the consultant was not qualified to do the AMDAL. Due to this the AMDAL preparation was delayed until year 2009. The AMDAL includes the environmental management and monitoring plan (RPL/RKL) to be implemented by the company. For PT DAN, the plan covers aspects ranging from regular testing of workers health, testing of river water quality, monitoring soil erosion and soil fertility, monitoring of planted area, manage-ment of disturbances to HCV and conservation areas, gauging of community's perception and health, en-hancing facilities and work opportunities for communities, and testing of ambient air quality, noise and smell. In addition, PT DAN has established Social Impact Assessment report including PT DSN palm oil mill done by Daemeter Consulting, Bogor. There is evidence that this assessment process involved communi-ty of surrounding village such as Deabeg, Ben Heas, Diaklay, Nehas Liah Bing and soon on December 2011. Following government regulation, the company established smallholder schemes through a plantation partnership program in each village surrounding the company’s area as explained on the section no 1.12. The company made a plan for their smallhoders towards to RSPO certification within the next 3 years.



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Criterion 7.2: Soil surveys and topographic information are used for site planning in the estab-lishment of new plantings, and the results are incorporated into plans and operations.

Findings: It is stated in the company's ANDAL document that PT DAN's area is dominated by young secondary for-est, bushes and ferns. The company has a detailed soil map showing gradients and all soil types within all estates conducted exetrnal consultant, last soil survey was conducted on 2011. According to the soil survey result there are 3 soil types in PT Dharma Agrotaman Nusantara i.e. Ultisol type, Entisol Type and Spodosol Type. Based on the soil type, the location of the company not a fragile soil type, and the topography condition of land is flat, and this soil type is not soil fragile. Accordance to the soil map and topography map, PT Dharma Agrotama Nusantara has a program for erosion preventive action, with a plan for protection of river riparian buffer zones along natural streams and natural spring through felling of oil palm trees adjacent to these natural streams and replanting the buffer zone areas with hardwood tree and “vertiver grass” a long of the river. The company has no-chemical-application-as strategy for the protection the river and natural springs from the pollution Compliance status: Full Compliance

Criterion 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.

Findings: In the company there have been plantings done since 2008 for 1,451 Ha, up until year 2012 for 81 Ha. These plantings were all done within the company’s HGU (land use right) area and is not open new area-so there is no decrease in the HCV area. Based on HCV document and map of HCV, total HCV area in the company is 496 Ha with type of HCV is HCV 1.1, 1.2, 1.3, and 1.3. The HCV area located in along of the riparian Telen River with the position is 100 meters from the river. This HCV is a buffer maintained based on Decree of President of Indonesia Number 32/1990 and Regulation Government Number 38/2011 about Riparian Protection. All plantation area in PT Dharma Agrotama Nusantara were established in between year 2005 to 2007, accord-ing to the company’s High Conservation Value (HCV) assessment, 67 ha of HCV area were cleared i.e at Ripar-ian river along to Telen in Puhus 1. The company has identified and will follow RSPO requirements regarding compensation rules once approved by the RSPO. While waiting for compensation rule approved by the RSPO, the company has taken action i.e. to avoid agrochemical application in the area that was cleared. Based on information in HCV document in point 2.1.3, pages 11 state “prior to the development of palm oil in the area, land use classification was for production forestry for coservation (HPK). All of the land under the four companies has been excluded for the forest estate and received plantation exploitation rights (HGU)”. Compliance status: Full Compliance

Criterion 7.4: Extensive planting on steep terrain, and/or on marginal and fragile soils, is avoided.

Findings: This is criterion is not applicable because based on information from soil maps dan slope maps, soil type in company is flat and there is no fragile soil. Compliance status: Not Applicable



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Criterion 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, lo-cal communities and other stakeholders to express their views through their own representative institutions. Findings: The plantation has a social and environmental impact assessment document which include analysis of both positive and negative environmental and social impacts, and made with the participation of affected parties, as explained under CR 7.1. Based on interview with community of Benhes, Diaklay, Dabeq, they were well informed through a letter by the company arround 2004 regarding to program for development of new plantation area. A few days later the company officer come to the villagers and made some discuss regarding to the program. The community said that they agreed with the program and had intereset to become contractor of land clearing activity where the worker come from local community itself. This aspiration was agreed by the company. There is evidence proof of payment to land owners and proper handing-over of the land for new plantings as explained under CR7.6 below. Compliance status: Full Compliance

Criterion 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 agreement

Findings: Regarding to new development plantation area the company already identified related parties who are en-titled for compensation. There is only one person whose land has been acquired by the company which is a community member from Diak Lay village. There is official report meeting on March 14th, 2012 regarding the compensation payment of Rp. 6,664,000 for 2.56 Ha land within company use right area. This report also consists of the term and condition after the compensation was obtained by the last owner. Based on interview to the community the compensation agreement was made during friendly meeting in order to get win-win solution. This agreement was distributed to the community member. The copy of agreement is one of the documents made publicly available by the company. The mechanism of conflict resolution procedures/complaints/claim includes communication and consulta-tion procedures as per appendix 1, and procedure for identifying those entitled to compensation as per appendix 2. The mechanism was agreed by community, and the copy has been given to them. Appendix 1 of the procedure contains mechanism for conflict resolution procedures / complaints / demands con-cerning land claim, labor, job transactions and other interest issues The local community members have higher opportunities to become workers during plantation develop-ment process and to be contractor after the development was complete. Please refer to criteria 2.2. above. Compliance status: Full Compliance

Criterion 7.7: Use of fire in the preparation of new plantings is avoided other than in specific situa-tions, as identified in the ASEAN guidelines or other regional best practice.

Findings: There is no evidence that the company has used fire for planting. The company implements a zero burn-ing policy as stated in their work instruction for land clearing, IK-AGR-OLP-01-R01. In Puhus 1 estate, the youngest planting area was planted in year 2008, and during site visits, there was no evidence of land burning observed. Document evidence of land clearing without burning was sighted from documented work orders for contractors commissioned to carry out land clearing of 81 ha of land planted in 2012 at



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Puhus 2 estate, i.e: 1. Work order no. 023/DAN/PU2/2011 dated 22 November 2011, for contractor Kenlung to carry out tree

felling for 75ha at Puhus 2 estate, including technical specifications for how work shall be done. 2. Work order no. 020/DAN/PU2/2011 and no. 021/DAN/PU2/2011 regarding mechanical land prepara-

tion and arrangement of felled trees through zero burning. Technical specifications and instructions are also defined in attachments to the work orders.

PT DAN has a document SOP for emergency response to land burning in SOP-AGR-037-R00 dated 1 March 2013 regarding Occupational Safety and Health including a flowchart describing actions to be tak-en person who sight land fires to actions to be taken by emergency response teams. Emergency re-sponse teams have been identified at each estate. To date, there are no incidences of land burning. The company has records of fire fighting simulations conducted at each estate. The last simuations were done on 2 April 2013 at Puhus 1 estate (46 participants) and Puhus 2 (38 participants) and on 3 April for Puhus 3 estate (122 participants). Evaluation of response time was also conducted. Each estate has a mobile fighting fighting unit in case of fires, and fire extinguishers and sand located at division offices as well as worker's housing. Compliance status: Full Compliance

Criterion 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.

Findings: The company has good commitment to improvement, based on their activity and result of the audit, the company was ensure that their system was run very well, example for decrease of chemical usage (crite-rion 4.6) the company has commitment to decrease of paraquat usage and based on record of chemical usage from 2010, 2011 and 2012, the company does not use the paraquat anymore in their activity. For environmental protection (criterion 4.3), the company has conducted water quality testing periodically eve-ry 6 month and was maintained the riparian buffer zone through the planting of vertiver grass, erosion wall, and woody plants for reboisation. For IPM in the estate, the company has conduct the Early Warning Sytems to determine the level attack in the estate, and also the company has applied the beneficial plant (Turnera ulmifolia, Turnera subulata, Antigonon leptopus and Casia tora) in all location. The company also has a program for monitoring and mitigation of greenhouse gas emissions, with rec-ords of implementation in year 2013. The plan includes conversion of fibre and shell to replace fossil fuel at the genset, mitigation of emissions from wheel loaders and CPO trucks through planting of various trees ('trembesi', soursop and 'angsana'), regular testing of machines, and periodic maintenance. The mill is also implementing a composting program which is still in testing phase with trial application of POME to EFB done in February and March 2013. The composting plant is planned to be commissioned in year 2014. The estates have a plan for reducing usage of chemicals, i.e since April 2013 the company is testing the use of termite traps using PVC pipes and recycled cardboard, which is effective, will help to reduce usage of termicides. The estates also do not permit spraying activities at trees located near river or water sources for consumptions, as efforts to reduce pollution to the river and also reduce usage of chemicals. The management has issued instruction to the estate to stop usage of Gramoxone, which contains para-quat, and currently the estate is only using remaining stock of the chemicals. The company also has action plan regarding to social and environment impac being identified through partisipation of surrounding community. Compliance status: Full Compliance

3.2 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions A total of 6 nonconformances were identified during the main certification assessment where one non-conformities were categorized as major non-conformity and five non-conformities were categorized as minor



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non-conformities. The company has taken corrective action against these as well, and for those which could not be verified as closed through document checks, the closure of these minor non-conformities will be as-sessed during the next surveillance audit. A summary of all identified non-conformances, corrective actions taken and auditor conclusions is as below:

Criterion 4.1 (Minor indicator 1) Records of checking or monitoring of operations. Minimum re-quirement: once a year

Non-conformance 2013 – 01 of 06 (Minor non-conformity) However there was found evidence of work instructions not properly implemented, for example: 1. Evidence was found that harvesting and collection quality inspections are not performed appropriate-



Correction actions:

1) To correct the quality harvesting report which had the statement which was found to be not in ac-cordane with the actual condition.

2) To request the records for nursery management activities from PT DWT (another management unit under PT DSN), as PT DWT supplies their seeds to PT DAN

Corrective actions:

1) Harvesting mandore or Division assistants shall conduct the harvesting evaluations to ensure the harvesting is conducted in accordance with work instructions. When performing quality checks of harvesting activities, the division assistant shall examine the results of quality checks carried out by the harvesting mandore through sampling to ensure the quality checks are conducted accu-rately.

2) The company will carry out documentation of all nursery management activities Auditor Conclusions: Evidence of immediate action taken was accepted. Effectiveness of imple-mentation to verified at next audit.

Criterion 4.7 (Minor indicator 8) Records of the occurance of any work accidents are maintained and regularly reviewed

Non-conformance 2013 – 02 of 06 (Minor non-conformity) The OSH report made out to the Head of Labour and Transmigration does not include “near miss for acci-dent” and there is no record of near miss accidents. Correction: 1) To revise the SOP to include a grievance mechanism for employees that experience near miss acci-dents 2) Monitoring the implementation of recording of near miss accidents and conduct evaluation of the acci-dent prevention policy Corrective action: The company will be ensure all near miss accidents will be recorded and will be discussed annually in OSH meetings. Auditor Conclusions: Evidence of immediate action taken was accepted. Effectiveness of imple-mentation to verified at next audit.

Criterion 5.1 (Major indicator 2) Records of regular report on environmental management in ac-cordance with relevant regulations



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Non-Conformance 2013 – 03 of 06 (Major non-conformity) Some parameters are not tested in accordance with the required frequency as stated in the mill’s UPL/UKL, e.g. for noise, vibration, boiler emissions and genset emissions are required in the UPL/UKL to be tested once every 3 months, but testing is only done once every 6 months. And some aspects re-quired to be included in the report have not been included, e.g. report on job opportunities, occurences of road accidents and monitoring of road conditions, usage of PPE, medical checks and frequency of occupational accidents. Correction: 1) To carry out testing of all parameters required within the specified period of the UKL / UPL. 2) To prepare and submit all required test reports within the specified period of the UKL / UPL If there are differences in the reporting period as well as the requirements of 2 (or more) regulations, the most stringent regulations will be applied. Corrective action: For the next RKL RPL report will be conduct accordance to the correction actions. Auditor Conclusions: Closed The mill provide a copy of their UPL/UKL implementation report for period of January to June 2013 which lists all the test analysis results for noise, vibration, boiler emissions and genset emissions conducted at least once every 3 months, i.e. March and June 2013. The mill also provided a monitoring schedule for all parameters required to be tested and results included in the UPL/UKL monitoring report. The schedule in-dicates aspects required to be tested once every 3 months such as noise, vibration, boiler emissions and genset emissions, and aspects that are required to be tested only once every 6 months. The company also provided copies of analysis results for vibration, noise and emissions conducted by Sucofindo, in preparation for the next UPL/UKL implementation report, as seen from testing certificate number 08301/BCEKAG dated July 29, 2013 for the following: 1. Noise samples taken from Boiler area, Genset area, kernel station, clarification area, press area,

loading ramp, sterilizer and tippler area in the mill, in accordance with Decree of Ministry of Labour and Transmigration Number 13/MEN/X/2011 and the test results were all within the standard.

2. Vibration testing done at sterilizer area, and tippler area, in accordance with Decree of Ministry of En-vironmental Number Kep-49/MENLH/11/1996 and the test results were all within the standard.

3. Boiler emissions for Boiler 1 and 2, and gensets 1, 2 and 3, for parameters in accordance with Decree of Environmental Minister No. 07 Year 2007 on Air Emission Threshold of Unmoveable Sources, and the test results were all within the standard.

Criterion 5.6 (Minor indicator 2) Records of identification, monitoring, and treatment methodology for POME

Non-conformance 2013 – 04 of 06 (Minor non-conformity) It could not be confirmed if POME dosage was applied to the field in accordance with the company’s work instruction IK-AGR-OLP-10-R00 due to discrepancies in the POME application report for January 2013, for example: 1. Stated in report that total POME applied to block F30 was 14,215 m3 over 60ha in January 2013, but

based on mill's license for land application, F30 only covers area of 39 ha, so maximum amount of POME to be applied to this area should be 39ha x 250 m3 or only 9750 m3.

2. Stated 446 m3 of POME was applied to 1.9 ha in block F33 in January 2013 but according to the schedule, application to this block is scheduled for March 2013, not January 2013

3. Stated that 13,057m3 was applied to blocks F33,F35, F36 and F37 covering 55ha. However, total hectarage of blocks F35-F37 is only 25 ha, and block F33 is not scheduled for land application in January

Correction: The company shall conduct the analysis for monitoring well in Block F30 to know the impact of over flow POME in the location 1) To provide explanation in the land application monitoring report for any changes to the application

schedule



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Corrective actions: 1) The land application should be follow the work instructions IK-AGR-OLP-10-R00 about the land ap-

plication and schedule for land application. 2) If due to certain condition land application can not applied, the land application assistant shall make

notes to explain any changes to the application schedule Auditor Conclusions: Evidence of immediate action taken was accepted. Effectiveness of imple-mentation to verified at next audit. Criterion 6.5 (Minor indicator 1) Growers and millers provide adequate housing, water supplies, medical, educational, and other facilities for employees where such facilities are not available or accessible Non-conformance 2013 – 05 of 06 (Minor non-conformity) Infrastructure provide by the company at workers housing was not sufficient. For example, clean water was not sufficient at Puhus 1 and Puhus 2 estates and it was also found that the septic tank was leaking and organic waste pits was full of water. Correction: a. Developing water treatment plant in sufficient capacity as decided in line with existing pilot project. b. To conduct suctioning of full septic tanks and repair those that are no longer functioning. c. To close all existing organic waste pits behind the house and provide new garbage bins for organic waste next to garbage bins for inorganic wastes in front of worker’s housing.To also provide a landfill for organic / inorganic wastes in a separate location away from settlements, rivers, and other water sources Corrective Action: a. To conduct periodical maintenance of water treatment plan in order to have quality clean water. b. To perform septic tank cleaning appropriate for the condition of the septic tank conditions, which is: - For septic tanks which are not equipped with the infiltration wells, emptying of the tank will be done peri-odically before the tank is full. - For septic tanks which are equipped with the infiltration wells, emptying of the tank will be done when there is indication that the septic tank is full (e.g. reduction of water in the toilet slow). - Building a septic holding tank in a location away from the settlements, rivers, and other water sources. c. closing all waste pits behind the housing and conduct awareness talks on the new garbage disposal mechanism Auditor Conclusions: Evidence of immediate action taken was accepted. Effectiveness of imple-mentation to verified at next audit.

Criterion 6.5 (Minor indicator 2) Agreements entered into with contractors are to specify that con-tractors abide by labor laws

Non-conformance 2013 – 06 of 06 (Minor non-conformity) Evidence was found that some contractors do not use safety nets properly as required in work agree-ment no. 009/DAN/PU2/2013 between the company and CV Aneka. Correction: a) To give instruction to the contractors to use safety net for the FFB transportation truck in line with signed work agreement. b) To revise work instruction no. IK-AGR-OLP-24 regarding to FFB transportation by including additional requirement about proper manner for the net usage. Corrective Action: Apply sanctions such as payment deduction for those who not comply to the requirement after it has been informed to the driver and helper. Auditor Conclusions: Evidence of immediate action taken was accepted. Effectiveness of imple-



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mentation to verified at next audit.

3.3 Noteworthy Positive Components

Criterion 5.2.1 (Major indicator 1): Records of results of identification of any protected, rare, threatened or endangered species, and HCV habitat.

Findings: Good forest conservation area condition and protection of existing wildlife inside plantation area. A lot of endangered bird species such Bucheros rhinoceros and orangutan nest still exist and are well protected.

Criterion 5.3. (Major indicator 2): Estates and mills waste management and disposal are imple-mented to avoid or reduce pollution

Findings: Good handling of hazardous waste from collection, to storage and disposal.

Criterion 6.11 (Minor indicator 1): Records of company contributions to the local development.

Findings: The company has good CSR program and real contribution to local development, as confirmed by villag-ers surrounding the company’s area. Criterion 8.1. (Major indicator 1): A monitoring action plan based on the social environmental im-pact assessment, and regular evaluations of plantation and mill operations. As a minimum, these must include, but not necessarily be limited to: • Reduction in use of certain chemicals (criterion 4.6). • Environmental impacts (criterion 5.1). • Waste reduction (criterion 5.3). • Pollution and emissions (criterion 5.6). • Social impacts (6.1). Findings: There is significant improvement in due to implementation of corrections and corrective actions for pre-assessment findings especially in areas pertaining to agrochemical reduction program, review information of environmental impact, reduction of waste, monitoring of generated pollution and emission etc.

3.4 Description of Supply Chain Management System

PT Dharma Satya Nusantara Mill is located in East Kalimantan. The mill was established in 2010 with a production capacity of 60 tons FFB/hours. In year 2012, PT Dharma Satya Nusantara mill is receiving approximately 44.72% (156,365.92 ton) of its supplies of Fresh Fruit Bunches (FFB) from 3 company-owned estates (Puhus 1, Puhus 2 and Puhus 3 estate and the remaining 55.28% (193,257.92 ton) from other sister companys (PT Swakarsa Sinarsentosa, PT Dharma Intisawit Nugraha and PT Dewata Sawit Nusantara). There were no smallholders groups supplying FFB to the mill in year 2012 but in year 2013, there was a smallholder scheme supplying FFB to the mill with volume of 55.85 tonnes. From January to May 2013, total FFB received by PT Dharma Satya Nusantara mill is 109,490.70 tons FBB of which is came from company’s owned estate 72,131.71 ton (65.88 %), other sister company is 37,303.14 tons (34.07%) and smallholder scheme is 55.85 ton (0.05%). The mill produces Crude Palm Oil and Palm Kernel. PT Swakarsa Sinarsentosa has been RSPO certified (RSPO P&C certificate number 18501994 001 (valid from 2013-01-10 to 2018-01-09)) so PT Swakarsa Sinarsentosa’s FFB received by PT DSN mill is certified.

The company implements SCC-RSPO with “Mass Balance” model according to the nature of mill FBB supply condi-tion. The following is a description of the company’s supply chain management system according to the RSPO SCCS requirements, including status of compliance of the company and their outsourced third parties to RSPO



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SCCS requirements. At the audit time company has an SCC system but only some NCs were identified according RSPO SCC standard November 2011, this is raised as several non conformities as describe on the explaination be-low:

1. Documented procedures

Findings :

The company has a procedure for implementation of SCCS requirements. There are a set of existing working instructions consist of 82 working instruction covering mill activities from reception of incoming FFB until product dispatch as listed on “master list document” such as IK-AGR-STD-04-R01 “Tracebility instruction” issued on May,01 2013 for Muara Wahau site while incoming order procedure is handle by trading department in Jakarta Head Office, IK-AGR-PRO-01-R02 “Weighbridge” issued on February 20, 2013, IK-AGR-DIS-01-R00 “Receipt, Unloading and Loading in Transfer and Dispatch Tank” issued on June 03, 2013, IK-AGR-DIS-03-R00 “Transport of Kernel” issued on August 01, 2012, IK-AGR-LAB-01-R02 “Grading” issued on February 20, 2013. The company implements quality management system ISO 9001:2008 as a part of compliance to this standard company has to establish complete and up to date standard operation procedure.

The name of the person having overall responsibility for and authority over the implementation of these re-quirements and compliance with all applicable requirements has been assigned at the audit time for PT DSN POM. According to Internal Memorandum No. 006/DSN-PKS2/V/2013 issued on May 06 2013 that the compa-ny assigned some employee as Persons in Charge (PiC) for SCCS program implementation. However, no Per-son in Charge (PiC) for SCCS program implementation has been assigned at despatch (include transfer tank 150 and storage tank 30) and bulking stations located in Labanan and palmk kernel (PK) warehouse in Sa-marinda (include warehouse in SWA and Muara Wahau port) so this condition raised as non-compliance.

PT Dharma Satya Nusantara Palm Oil Mill has a mechanism to receive FFB both from certified sources and non certified sources i.e IK-AGR-STD-04-R01 (Tracebility instruction). Compliance status: Non Compliance

NCR No. 2013-SCCS-01 of 03

The organization has not assigned a Person in Charge (PiC) for SCCS program implementation in despatch and bulking stations in Labanan and a palm kernel warehouse located in Samarinda.

2. Purchasing and goods in

Findings:

PT Dharma Satya Nusantara Palm Oil Mill has mechanism to receive FFB both from certified sources and non certified sources. The document to be verified from certified sources are: FFB delivered slip (Nota Pengiriman Buah) (FM-OLP-33-R00) including wet stamp from the origin estate and certified code. Certification status will be stated on ‘Incoming FFB received’ documents in Weighbridge location as seen from sample documents e.g. Received Material notes (Nota Penerimaan Buah) FM-PRO-01-R00, and FFB Grading Report (‘Laporan seleksi buah’).

A person has been appointed to be responsible to check and ensure the FFB quality and quantity is as per pur-chase documents.

According to incoming FFB working instruction, when receiving RSPO certified palm, personnel in the material unloading ramp are to verify the claimed category of the material under mass balance system, supplier supply chain certification number, and quality and quantity of products

The company has a mechanism to inform the CB immediately if there is a projected overproduction. Compliance status: Full Compliance

3. Record Keeping

Findings:



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The company has established a mechanism for control and maintenance of the document and data control pro-cedure No. SOP-AGR-STD-01-R04 issued on January 2, 2012 following ISO 9011: 2008 requirement where the retention time for records and reports (recapitulation of daily receipt FFB, daily production report, recapitulation of daily dispatch CPO & PK) has defined for at least for five (5) years. The storage and maintainance of docu-ments is the responsibility of the respective departments.

The mill maintains records and balances all receipts of RSPO certified FFB and deliveries of RSPO certified CPO & PK on daily basis. The material balance includes information about incoming FFB from certified sources and non-certified sources of FFB processed, CPO and PK production result, OER and KER; delivered CPO and PK, balance stock and information about percentage of content of certified material in CPO or PK production on daily base but the organization has not shown mass balance on three-monthly basis and mass balance of ker-nel in warehouse Samarinda. This condition raised as Non Compliance.

All volumes of palm oil that are delivered are deducted from the material accounting system according to actual daily conversion ratios. The material balance can show deliver product sales from a positive stock except ker-nel because the mass balance record for the warehouse in Samarinda can not be shown.

There are no outsourced supply chain processes in PT Dharma Satya Nusantara Palm Oil Mill. Compliance status: Non Compliance

NCR No. 2013-SCCS-02 of 03 The organization cannot show mass balance on a three-monthly basis and mass balace of kernel for warehouse in Samarinda.

4. Sales and Good Out

Findings :

The sales and goods out mechanism of the company are described in their procedure of sales of palm oil. Rec-ords for next CSPO product sold are recorded in material balance sheet.

CPO products dispatched from PT Dharma Satya Nusantara Mill in Muara Wahau District transported to La-banan Bulking station (route : mill – transfer tank 150 – storage tank 30 – bulking Labanan) accompanied by documents such as : - Weighbridge ticket (WB ticket) includes data about: Reference Number, date issued, Delivery Order number,

Contract Number, buyer name including the address of buyer, product + supply chain model, the quantity of the products delivered and reference to related transport documentation.

- Delivery Order includes information about buyer address - ‘Surat Pernyataan Truck/ Tangki Bersih’ (statement of clean tank) - Form "Berita Acara Analisa Mutu" (Note of Quality Analysis) - Form of Vehicle Control - ‘Bukti Ekspedisi’ (Evidence of Expedition) FM-DIS-01-R00 - ‘Surat Jalan Kapal’ (Shipment letter), Bill of Landing (B/L) & minute of handover product (Berita Acara Penye-

rahan Produk) (especialy from bulking Labanan to end user) where include information about : reference number, date issued, name of buyer including the address of buyer, product + supply chain model, the quanti-ty of product delivered and reference to related transport documentation.

PK products dispatched from PT Dharma Satya Nusantara Mill in Muara Wahau District transported to Ware-house in Samarinda (route : mill – warehouse in SWA – Muara Wahau port – warehouse in Samarinda) or to PT DSN mill unit 4 (PKO) are accompanied by documents such as : - ‘Bukti Ekspedisi’ (Evidence of Expedition) FM-DIS-01-R00 - Delivery slip (Nota Pengiriman) (FM-PRO-16-R00) including data such as reference number, date issued,

product, destination, product + supply chain model, the quantity of the products delivered and reference to re-lated transport documentation. This slip is used for delivery kernel from Muara Wahau port to warehouse in Samarinda.

- Letter of handover product / transport (Surat Jalan Mobil). This slip is used for delivery kernel from Muara Wahau port to warehouse in Samarinda.

PK products dispatched from Warehouse in Samarinda transported to end user are accompanied by docu-ments such as : - Weighbridge ticket (WB ticket) - Letter of handover (Surat Jalan) (FM-COM-07-R00) includes data such as reference number, date issued, ex-



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isting location from product, delivery destination, product + supply chain model, contract number, the quantity of the products delivered and reference to related transport documentation. There is no information about name of buyer and address of buyer so this condition was raised as Non Compliance.

Compliance status: Non Compliance

NCR No. 2013-SCCS-03 of 03

There is no information about name of buyer and address of buyer on letter of handover (Surat Jalan).

5. Training

Findings:

PT Dharma Satya Nusantara mill has training procedure and annual training program for their employees, such as training program for year 2013. SCCS training was done on January 14, 2013 attended by 7 operators in Labanan bulking and refresher training on SCCS was done on January 14, 2013 attended by 7 operators in PT DSN mill (Unit II) as seen from training records such as attendance list, training evidence and photographs, . Last year, the organization had carry out awareness training on RSPO SCCS on March 22, 2012 which was at-tended by 21 participants (including personnel from bulking, commercial, head of mill in PT DSN group), and training on SCCS on January 16, 2012 which was attended by 21 participants (from bulking, commercial, head of mill in PT DSN group), as seen from training records such as attendance list, training evidence and photo-graphs. Compliance status: Full Compliance

6. Claims

Findings:

The company has not yet prepared a procedure for certified product communication and claim according to RSPO requirements as they have not made any claims yet. According to product traceability instruction, the mill will only make claims regarding the use of or support of RSPO certified palm oil that are in compliance with the RSPO Rules for Communication and Claims after SCCS certificate is issued. This will confirmed during the next audit. Compliance status : Compliance with observations

3.5 Identified Non-conformances against RSPO SCCS Requirements, Corrective Actions Taken and Auditors Conclusions SCCS Non-conformance 2013-SCCS-01 of 03 :

The organization has not assigned a Person in Charge (PiC) for SCCS program implementation in despatch and bulking stations in Labanan and a palm kernel warehouse located in Samarinda. Correction : Additional responsibility for implementation of SCCS was added in the job descriptions for each relevant position in Labanan (bulking head, bulking staff (assissten), weighbridge operator, unloading crew, administration & GA staff), in Samarinda (warehouse operator, administrator in Samarinda (Mandor), commercial staff) and at des-patch (despatch supervisor, CPO unloading supervisor, despatch head, distribution supervisor, despatch station assissten, and weightbridge operator).

Corrective Action : The organization will ensure that each flow of supply chain appointed a person in charge. That person has re-sponsibility for implementation of SCCS



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Date of closure : July 15, 2013 Verification result : There is an internal correspondence letter No. 0065/MS/VIII/2013 dated on July 01, 2013 from head of HCD Department about additional responsibility for implementation of SCCS requirements. The attachment to the letter informs regarding additional responsibilities for each relevant position for the implementation of SCCS by each position in despatch (despatch supervisor, CPO unloading supervisor, despatch head, distribution supervi-sor, despatch station assissten, and weightbridge operator), in Labanan bulking (bulking head, bulking staff (as-sissten), weighbridge operator, unloading crew, administration & GA staff) and in warehouse Samarinda (ware-house operator, administrator in Samarinda (Mandor), commercial staff). Auditor Conclusions : Closed SCCS Non-conformance 2013-SCCS-02 of 03 : The organization cannot show mass balance on a three-monthly basis and mass balace of kernel for warehouse in Samarinda. Correction : To create a mass balance report on three-monthly basis for all product (CPO and PK) To create a kernel mass balance report in warehouse Samarinda, include information of percentage mass

balance (MB) Corrective Action: The organization will ensure that mass balance reports on three-monthly basis are issued on time The organization will monitor the implementation of IK-AGR-SMD-01-R00 (receipt PK), IK-AGR-SMD-02-

R00 (unloading PK), and IK-AGR-SMD-03-R00 (delivery PK to buyer) Date of closure: July 15, 2013 Verification result :

The organization has submited the form for mass balance reporting on three-monthly basis which includes in-formation on recapitulation of daily mass balance report. The organization also has SCCS software where the user can choose the period of data to be generated including on a three-month basis.

The organization has submitted mass balance kernel reports from warehouse Samarinda for June-July 2013. The report includes information on total stock and dispatch PK (tonnes) from each destination (POM 4, ware-house SWA, Muara Wahau port and warehouse Samarinda) and includes percentage of MB. Auditor Conclusions: Closed SCCS Non-conformance 2013-SCCS-03 of 03 :

There is no information about name of buyer and address of buyer on letter of handover (Surat Jalan). Correction : To revise the Letter of handover (Surat Jalan) form no. FM-COM-07-R00 to include additional information i.e name of buyer and address of buyer , and revise the relevant working instruction as well.

Corrective Action: The organization will monitor usage of the new form which should be filled in completely

Date of closure : 15 July 2013 Verification result : The organization has submitted revision of Letter of handover (Surat Jalan) (FM-COM-07-R01) which nows in-cludes additional information such as name of buyer and address of buyer.



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Auditor Conclusions : Closed

3.6 Conclusions and Recommendation for RSPO P & C and Supply Chain Certification

The audit team has confirmed through the audit process that the company has established and maintains an ef-fective system to ensure compliance with the RSPO P & C and Supply Chain Certification System requirements. It is also confirmed that the company did not yet sell any CPO and PK as RSPO Certified before this certification audit. TUV Rheinland Malaysia recommends that PT Dharma Satya Nusantara Mill 2 be approved for certification of compliance to the RSPO P & C and Supply Chain Certification System requirements .

3.7 Issues Raised by Stakeholders and Findings Pertaining to Issues

A) Issues Raised during Stakeholder Consultation Meeting

No. Issues Raised Management Response Audit

Verification

1. CSR is the best from PT Swakarsa for Muara Wahau District, evidence is that the company responds quickly to community requests especially in terms of partnership with the commu-nity, procurement of infrastructure of agriculture, cooperative development. But there are still weaknesses i.e.: development for smallholder because the process from the government is too slow due to lack of land available for smallholders use. In addition, there have been also environmental impact such waste water from com-pany’s activities. The community had experienced floods previously when the land was owned by the logging company.

Related to estate and smallholder relationship, there are: a. There are several types of

smallholders with relationship with the company. One type of smallholders is fully managed by the company. For this type, all smallholder land activities from development, land clear-ing, planting until harvesting is conducted by the company, with profit sharing systems.

b. Another smallholder system is called “Saprodi”. For this type, the company just only pro-vides the seed, land, road and cultivation. For the main-tainance activities such as spraying, fertilizer application and others is under small-holder resposibility. And for this type the smallholder’s participation is needed.

c. For environmental impact from waste water, the compa-ny has waste water installation (IPAL) this system accord-ance to Indonesia regulation so environmental impact from waste water was minimal

Management re-sponse regarding smallholders pro-gram is accepted. The comment relat-ing to smallholders is not related to PT DSN Mill 2 as they have no smallhold-ers supply to the mill. In addition, during the audit time, the auditor did not find evidence to see that any flood or waste water prob-lem occure from company’s activi-ties.

2. The existence of the company helps the community a lot in delivering their FFB to the company

The company’s smallholder pro-gram has had s postive impact to local communities such as in-crease to the local community profit

No further verifica-tion needed

3. Previously, when the community members take a bath in the river, the water quality is not good, but now, the river condition is better than before. It is also requested that any new con-tractor be registered by the village administration. Road conditions in the village are

Related to the water river condi-tions, the company regularly con-ducts river water analysis periodi-cally every 6 month and results are reported to the Head of Envi-ronment. For procurement of clean water the company has contribut-ed several wastewater treatment

No further verifica-tion needed as this is a positive com-ment



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Verification

very good. plants to some villages surround-ing DSN Group. Regarding estate infrastructure development the company used local contractor in cooperative corporation and under village ad-ministration. DSN Group conducts road main-tainance within the village periodi-cally.

4. Please explain the negative impacts of palm oil mill waste, because I do not understand. The existence of company has brought benefits to the community, because the PT Swakarsa has good commitmen to develop the local community. Many the local children has been schooled by the company through the company foundation. With regards to economic develop-ment the company has commitment to develop local cooperative and the result is good because the local co-operative now has good progress.

The company has provided awareness talks about the waste management to some traditional leaders of Dusun Jabdan Village, Dusun Long Bau Village, and De-sa Muara Wahau Village and also the company has invited them to come to see the land application process and these talks will be continued at other villages. Regarding educational programs, DSN Group has contributed on education foundation from the el-ementary school until university, i.e.: Agriculture professional foun-dation in collaboration with Agricul-ture Institute. Regarding economic management of local communities, the company has good commitment to develop local community through the co-operative program and so far this progam has been successful. And also the company uses local con-tractors to provide the infrastruc-ture.

No further verifica-tion needed

5. Until know, from my village there is no child schooled by the company. How to develop smallholder? Based on Agriculture Regulation the compa-ny should be developing smallhold-ers? What the different between in-dependent smallholders with scheme smallholders? The land border is not clear until now.

The company has contributed for education programs to Desa Benhes Village. In foundation pro-grams in collaboration with univer-sities, all villages around the com-pany has same opportunities to get the foundation for education. The company also provides a li-brary in the Benhes Village for the education of the village children. The company also provides school buses for students in Benhes Vil-lage. Smallholders of the DSN group consist of: a. Smallholder which are fully

managed by the company, to-tal area is 600 based on MoU, but in actual is 1,436 Ha

b. Smallholder not fully managed based on MoU total area is

It was verified company provide school in Benhes village, library etc. Company has smallholder pro-gram such as Pat-nership program with local Coopera-tion such as pat-neship No.5, 9 etc as implementation of governement regulation regard-ing developing of smallholder.



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Verification

411 Ha, until May 2013 actual area is 390 Ha.



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3.8 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client It is acknowledged that the assessment visit was carried out as described in this report and we accept the as-sessment findings and report content. Signed on behalf of PT Dharma Satya Nusantara,Tbk ……………………………… T. Notosuroto Management Reperesentative Date: October 11, 2013

Signed on behalf of TUV Rheinland Malaysia ………………………… Fadli Lead Auditor Date: October 3, 2013



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APPENDICES

Appendix 1: Details of Certificate Standard: RSPO Principles & Criteria for Sustainable Palm Oil Production; Indo-

nesian National Interpretation: 2008

Certificate Registr. No.: 18502792 001

TUV Rheinland Malaysia Sdn. Bhd. certifies:

Certificate Holder: PT Dharma Satya Nusantara Mill 2, Benhes Village, Muara Wahau subdistrict, Berau district, East Kalimantan, Indonesia and its supply base according to the annex.

Scope: Palm Oil Production and Plantation Management System

An audit was performed, Report No. 18502792. Proof has been furnished that the requirements according to RSPO Principles & Criteria for Sustainable Palm Oil; Indonesian National Interpretation: 2008are fulfilled. The due date for all future audits is 25-01 (dd.mm).

Validity: The certificate is valid from 25-03-2014 to 24-03-2019.

The palm oil mill and supply base covered in the certification scope are:

Name of mill / es-tate

Location GPS locations

Latitude Longtitude

PT Dharma Satya Nusantara Mill 2

Benhes Village, Muara Wahau sub-district, Berau district, East Kaliman-tan, Indonesia

01 15’ 02.9” N 116 43’ 44.1” E

Puhus 1 Estate Benhes Village, Muara Wahau sub-district, Berau district, East Kaliman-tan, Indonesia

01 14’ 23.3” N 116 44’ 20.8” E


01 15’39.9” N 116 43’ 51.5” E


01 14’ 17.9” N 116 49’ 16.2” E

CPO Tonnage Total Productions*: PK Tonnage Total Productions*: Company Estates FFB Tonnages*: FFB Tonnages from other sources*: CPO Tonnage claimed for certification: PK Tonnage claimed for certification: * Based on year 2012 total production

87,491 tonnes 11,566 tonnes 156,366 tonnes 193,258 tonnes 71,212 tonnes 9,076 tonnes



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Appendix 2: Certification Audit Plan

Date / Time

(1)

Organizational Unit and

Processes Auditor / Abbrev.

Interviewee Procedure - RSPO Element -

Standard Chapter

Monday, June 24, 2013 Auditor

Team Traveling Jakarta to Balipapan then

Berau continue to Site Tuesday, June 25, 2013 08.00-10.00

Opening Meeting

Introduction by team leader.

Presentation of estates by re-spective managers.

Presentation of Oil Mill source of FFB by respective managers

Auditor Team

Top Management & Related Manager

10.00-12.00

Management Office,

HGU legal requirement ,

All related legal requirement & documentation checking,

All procedure or SOP related operation,

Maps in appropriate scale.

Auditor Team

Plantation and Palm Oil manager

Principle 1 Criteria 1.1; 1.2; Principle 2 Criteria 2.1;2.2;2.3; Principle 3, Criteria 3.1; Principle 4 Principle 5 Principle 6, Criteria 6.1- 6.11 Principle 7 Principle 8

12.00-13.00 Break All Audi-tors

13.00-17.00 Continuing document checking All Audi-tors

19.00 Public Consultation All Audi-tors

Stakeholder Sub District office Muara Wahau

Wednesday, June 26, 2013 08.00-12.00

Palm Oil Mill

Document checking and site visit:

- Compliance to regulation and ap-

plicable - Management plan - Best practice - HCV (if any) - Continuous improvement

SCCS

HF - Mill manager - Cooperative of-

ficer and mem-ber

Principle 2 Criteria : 2.1; 2.2 Principle 3 Criteria : 3.1 Principle 4 Criteria : 4.8 Principle 5 Criteria : 5.2 Principle 8 Criteria : 8.1

SCCS (E.1 to E.6)

08.00-12.00 Palm Oil

Mill

Document checking and site visit : - Compliance to regulation and ap-

plicable - Responsibility to community and

worker - Continuous improvement

FA Mill Manager

Principle 2 Criteria : 2.1 Principle 6 Criteria : 6.1.1; 6.5; 6.6; 6.9; 6.10; 6.11 Principle 8 Criteria : 8.1

08.00-12.00 Palm Oil

Mill

Document checking and site visit:

MK - Mill Manager Principle 1 Criteria : 1.1; 1.2 Principle 2



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Date / Time

(1)




Standard Chapter

- Compliance to regulation and ap-plicable

- Transparency - Continuous improvement -

Criteria : 2.1 Principle 8 Criteria : 8.1

10.00-12.00 Palm Oil

Mill


plicable - transparency - Responsibility to environment

and biodiversity - Continuous improvement

AH - Mill Manager

Principle 2 Criteria : 2.1 Principle 5 Criteria : 5.1 Principle 8 Criteria : 8.1

10.00-12.00 Palm Oil

Mill


plicable - transparency - Responsibility to environment


-

CN Mill Manager Principle 2 Criteria : 2,1.1 (Mj); 2.1.2 (Mj) Principle 4 Criteria : 4.5; 4.8 Principle 5 Criteria : 5.1; 5.3; 5.4; 5.5; 5.6 Principle 8 Criteria : 8.1


13.00-17.00 Continuing document checking All Audi-tors

17.00 End of 2nd day audit Kamis, 27 Juni 2013

08.00-12.00 PT DAN

(Puhus I es-tate)

Site visit - Compliance to regulation and

applicable law - Land Legality - Management Plan - Best practice - Responsibility to environment


HF

Estate manager Principle 2 Criteria : 2.1.1 (Mj); 2.1.2 (Mj); 2.2.1; 2.2.2; Principle 3 Criteria : 3.1 Principle 4 Criteria : 4.8 Principle 5 Criteria : 5.2 Principle 8 Criteria : 8.1

- transparency - compliance to regulation and

applicable law - land conflict - land use impact to the commu-

nity responsibility to worker and community

- continuous improvement

FA

Estate Manager Principle 2 criteria : 2,1.1 (Mj); 2.1.2 (Mj); 2.2.3 (Mj); 2.2.1 (Mn); 2.2.2 (Mn); 2.3; Principle 6 Criteria : 6,1; 6.2; 6.3; 6.4; 6.5; 6.6; 6.7; 6.8; 6.10, 6.11 Principle 8 Criteria : 8.1

08.00-12.00 PT DAN

(Puhus I es-tate )

- Transparency - Compliance to regulation and

applicable law - Best practice

MK Estate Manager Principle 1 Criteria : 1,1; 1.2; Principle 2 Criteria : 2,1.1 (Mj); 2.1.2 (Mj); 2.1.1 (Mn); 2.1.2 (Mn)



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Date / Time

(1)




Standard Chapter

- Responsibility to environment and biodiversity

- New plantation development - Continuous improvement

Principle 4 Criteria : 4.1; 4.2; 4,3; 4.4; 4.7; Principle 7 Criteria : 7.1 s/d 7.7 (kecuali 7.5.3 & 7.6) Principle 8 Criteria : 8.1

08.00-12.00 PT DAN

(Puhus I es-tate)

- Compliance to regulation and applicable law

- Best practice - Responsibility to environment


CN Estate Manager Principle 2 Criteria : 2,1.1 (Mj); 2.1.2 (Mj) Principle 4 Criteria : 4.5; 4.8 Principle 5 Criteria : 5.1; 5.3; 5.4; 5.5; 5.6 Principle 8 Criteria : 8.1

08.00-12.00 PT DAN

(Puhus I es-tate)




AH Estate Manager Principle 2 Criteria : 2,1.1 (Mj); 2.1.2 (Mj); 2.1.1 (Mn); 2.1.2 (Mn) Principle 4 Criteria : 4.1; 4.2; 4,3; 4.4; 4.6; 4.7; Principle 8 Criteria : 8.1


13.00-17.00 Continuing agenda All Audi-tors

17.00 End of 3rd day audit Friday, June 28th, 2013 08.00-12.00

PT DAN (Puhus II estate)

Site visit:


- Land legality - Best practice - Responsibility to environment


HF

Estate Manager Principle 2 Criteria : 2.1.1 (Mj); 2.1.2 (Mj); 2.2.1; 2.2.2; Principle 3 Criteria : 3.1 Principle 4 Criteria : 4.8 Principle 5 Criteria : 5.2 Principle 8 Criteria : 8.1

08.00-12.00 PT DAN (Puhus II estate)

Verifikasi lapangan untuk : - transparency - compliance to regulation and

applicable law - land conflict - land use impact to the commu-

nity responsibility to worker and community

- continuous improvement

FA

Estate Manager Principle 2 criteria : 2,1.1 (Mj); 2.1.2 (Mj); 2.2.3 (Mj); 2.2.1 (Mn); 2.2.2 (Mn); 2.3; Principle 6 Criteria : 6,1; 6.2; 6.3; 6.4; 6.5; 6.6; 6.7; 6.8; 6.10, 6.11 Principle 8 Criteria : 8.1

08.00-12.00 PT DAN (Puhus II estate )

- Transparency - Compliance to regulation and

applicable law - Best practice - Responsibility to environment

and biodiversity

MK Estate Manager Principle 1 Criteria : 1,1; 1.2; Principle 2 Criteria : 2,1.1 (Mj); 2.1.2 (Mj); 2.1.1 (Mn); 2.1.2 (Mn) Principle 4



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Date / Time

(1)




Standard Chapter

- New plantation development - Continuous improvement

Criteria : 4.1; 4.2; 4,3; 4.4; 4.7; Principle 7 Criteria : 7.1 s/d 7.7 (kecuali 7.5.3 & 7.6) Principle 8 Criteria : 8.1

08.00-12.00 PT DAN (Puhus II estate )




CN Estate Manager Principle 2 Criteria : 2,1.1 (Mj); 2.1.2 (Mj) Principle 4 Criteria : 4.5; 4.8 Principle 5 Criteria : 5.1; 5.3; 5.4; 5.5; 5.6 Principle 8 Criteria : 8.1

08.00-12.00 PT DAN (Puhus II estate)




AH Estate Manager Principle 2 Criteria : 2,1.1 (Mj); 2.1.2 (Mj); 2.1.1 (Mn); 2.1.2 (Mn) Principle 4 Criteria : 4.1; 4.2; 4,3; 4.4; 4.6; 4.7; Principle 8 Criteria : 8.1


14.00-17.00 Melanjutkan agenda pagi All Audi-tors

17.00 End of 4rd day audit Saturday, June 29th, 2013 08.00-09.00 Closing Meeting preparation All audi-

tors

09.00-12.00 Closing meeting All audi-tors

13.00-18.00 Travelling to Berau All audi-tors

18.00-……. Stay overnight in Berau All audi-tors

Sunday, June 30th, 2013 07.20-08.15 Travelling to Balikapan and Jakarta All audi-

tors SJ 233, GA 0515



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Appendix 3: List of Abbreviations

AMDAL Analisis Dampak Lingkungan & Sosial (Social & Environmental Impacts Assessment)

CPO Crude Palm Oil CSR Corporate Social Responsibility EIA Environmental Impact Assessment ERTs Endangered, Rare & Threatened species ESH Environmental Safety & Health FFB Fresh Fruit Bunches GHG Greenhouse gases EFB Empty Fruit Bunches EWS Early Warning System HCV High Conservation Value HCVA High Conservation Value Area HGU Hak Guna Usaha (Land Use Rights) HGB Hak Guna Bangunan (Building Use Rights) HIRARC Health Identification, Risk Assessment and Risk Control IUP-B Izin Usaha Perkebunan (Plantation Business Permit-Plantation) IUP-P Izin Usaha Perkebunan (Plantation Bussiness Permit-Processing) IPM Integrated Pest Management JKK Jaminan Kecelakaan Kerja (Work Insurance Accident) JHT Jaminan Hari Tua ( Pension Insurance) JK Jaminan Kematian (Life Insurance) JPK Jaminan Pemeliharaan Kesehatan (Health Insurance) KBB Kantor Besar Bersama (Head Office) KER Kernel Extraction Rate LTA Lost Time Accident MSDS Material Safety Data Sheets NGO Non-Government Organization OER Oil Extraction Rate OSH Occupational Safety & Health P2K3 Panitia Pembina Keselamatan Kesehatan Kerja (Safety and Health Committee) PK Palm Kernel PKO Palm Kernel Oil POME Palm Oil Mill Effluent PPE Personal Protective Equipment PT DAN PT Dharma Agrotama Nusantara PT DSN PT Dharma Satya Nusantara PT DWT PT Dewata Sawit Nusantara RKL Rencana Pengelolaan Lingkungan (Environmental Management Plan) RPL Rencana Pemantauan Lingkungan (Environmental Monitoring Plan) SCCS Supply Chain Certification Systems SIA Social Impact Assessment SIO Surat Izin Operator (Operator License) SOP Standard Operating Procedure UKL Upaya Pengelolaan Lingkungan (Environmental Management Efforts) UPL Upaya Pemantauan Lingkungan (Environmental Monitoring Efforts)

Appendix 4: List of Stakeholders Interviewed and Contacted

No. Name of Stakeholder Institution / Position Remarks

Stakeholders Interviewed during Public Consultation Meeting

1. Maxi TH Lombogia

SUTS Cooperative Long Bau supervisor

2. Hasan Long Bau K.D.S



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No. Name of Stakeholder Institution / Position Remarks 3.

Siang Geah Costumary Secretary of Wehea Nehas Liah Bing

4. Ledjie Taq

Traditional Leader of Nehas Liah Bing

5. Tleang Lung Traditional Leader of Dea Beq6. Eduardus Kelea Dea Youth of Dea Beq Village7. Sundariyanto PT Lautan Luas, Tbk8. Ahmad Andi Rifai PT Kimia Farma Apotek9. Setiya Haryanto Fire fighter10

Markus Musa BA Traditional institutions secretary of Diak Lay

11. Stepanus Gea Officer of Diak Lay Village12. Rupina Paramedic13. Muis Head of Cooperative14.

H. Rusli Head of Community Muara Wahau Village

15. Kamaruzaman Traditional Leader of Kutai16. Luky Chandra P Worker Union17. Rismawati Gender committee 18. Rani K SP DAN secretary19. Adhem M Contractor20. Sujarwo Khodik Contractor

Stakeholders Interviewed On-Site

1. Mr Nur Alamsyah Assistant Land Application Monitoring Land Application2.

Mr Nugroho Foreman Spraying Monitoring of Operating Spraying, ensure of all operator no spraying in near river

3. Mr Wisnu and Mr Jubaer HCV person in charge

Implementation of management plan, monitoring HCV areas

4. Mr Muchtar

Dispatch PK staff in Muara Wahau Port

Handling material PK, awareness RSPO SCCS

5. Mr Wilner Manik Plantation Head Best practice for palm oil 6.

Mr Eka Chandran Division Head Puhus 1 Estate

Best practice management, IPM, riparian bufferzone protected area, spraying activites, harvesting activities, housing, natural sping, hazardous warehouse

7.

Mr Ali Wafa Division Head Puhus 2 Estate


8.

Mr Sumitro Division Head Puhus 3 Estate


9. Mr Suwardi

Foreman of Spraying activites in Block G69, Puhus 3 Estate

Spraying activities, chemical dosage, safety and health, first aid box

10. Mrs Siti Marlinah Sprayer in G69 Puhus 3 Estate

Spraying activites, chemical handling, saftey and health

11. Mrs Manisah Sprayer in G69 Puhus 3 Estate

Spraying activites, chemical handling, saftey and health

13. Mr Aminuddin

Harvester in F39 Division 6 Puhus 2 Estate

Harvesting technique, safety and health

14. Vincentius FFB trasnportation Driver Work agreement implementation15. Kawaru FFB trasnportation Driver Work agreement implementation



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No. Name of Stakeholder Institution / Position Remarks 16.

Le Ji Taq Traditional Head of Nehas Liah Bing

Community’s aspiration

17. Maryanto Employee Employee’s aspiration 18. Mrs. Jumari Employee’s wife Employee’s aspiration 19. Mrs. Amirudin E,ployee’s wife Employee’s aspiration 20. Mrs. Usiana Employee’s wife Employee’s aspiration 21. Yudi Employee Employee’s aspiration 22.

Liah Delin Community Community’s aspiration, land

compensation 23. Tarsi Employee Employee’s aspiration 24. Turiyati Diaklay villager Community’s aspiration 25. Halimah Employee Employee’s aspiration 26. Miswanto Employee Employee’s aspiration 27. Mrs. Suswanti Employee Employee’s aspiration 28.

Wang Yan Diak Lay Comunity leader Environment impact, donation and

CSR program 29. Siang Giah Nehas Liah Bing community Community aspiration 30. Darmawan Employee Employee’s aspiration 31. Wagiyo Employee Employee’s aspiration 32.

Edi Santoso Sawitan Surya Cooperative oficer, Maju Jaya village

Smallholder’s aspiration and implementation

33. H. Rusli Muara Wahau Head community Community aspiration 34.

Burhan Traditional chief of Wehea community

Community’ aspiration

35. Yohanes Lien

Secretary of Diak Lay village Head

Community’s aspiration

36. Tleang Lung Dea beq Village traditional chief Community’s aspiration



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Appendix 5: Observations and Opportunities for Improvement

No. Observations / Opportunities for Improvement Criteria 1. A copy of the tractor operator license no. 12 4452-OPK3-PAA/VII/2012 was

sighted but the operator interviewed on-site at Puhus 1 estate stated that he had not yet to receive a copy of the license.

4.8.2

2. A temporary hazardous waste store located at Division 6 housing, Puhus 2 estate is not securely locked or enclosed, and located next to the children's creche with children sighted playing nearby

5.3.1

3. There are complaints from the local communities that plantation workers dispose fertilizer bags into the river. It was verified that the company has a work instruc-tion for manuring stating that all empty fertilizer bags are to be returned to store and recorded, and records were sighted. The estates should ensure workers are aware of this requirement and do not dispose any empty bags into the river

5.3.2

4. Puhus 1 estate has a documented identification of occupational safety and envi-ronmental aspects and impacts, however for some activities, only safety hazards were identified but not environmental aspects, e.g. for land clearing, manuring, housing, etc

5.5.1

5. A fire extinguisher at a mill wheel loader had no records of checking and was in poor condition.

5.5.1

6. The mill is carrying out sampling of vehicle opacity once every 6 months with sam-ple of only one of 12 trucks. The mill should consider increasing the sample size to ensure opacity of trucks are within the legal limit

5.6.2

7. The water pump operator does not have fixed schedule to distribute the water to each house at every division

6.5.1 minor

8. Work accident investigation should include information on any material dam-age/loss and cost saving opportunity.

4.7.8

Minor

9. The company should ensure electricity installations at Puhus 1 workshop comply with the state electricity regulation.

4.7.6

minor

10. Samarinda storage kernel stock report do not include information about in-out ma-terial in terms of certified or not certified status.

E.3.3 (SCCS)

roundtable on sustainable palm oil€¦ · agrotama nusantara palm oil plantation, east kutai –...

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