stage-1 [ ] stage-2 [ ] - rspo · stage-1 [ ] stage-2 √] ... spo – 4006a.5 ... 3.3 conformity...

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

[ ]Stage-1 [ ] Stage-2 [√] Surveillance [ ] Re-Assessment

Plantation Management/Owner : PT Ladangrumpun Suburabadi –

Sime Darby Plantation Sdn. Bhd

Plantation Name : Angsana Mill, Angsana Estate, Gunung Sari Estate,

Pantai Bonati Estate and KKPA-4 Estate

Location :

Sub District of Angsana, District of Tanah Bumbu,

Province of South Kalimantan, Indonesia

Certificate Code : MUTU-RSPO/006a

Date of certificate issue : 06 July 2011

Date of expiry of certificate : 05 July 2016

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Review

by Approve

by

ST-2 4-9 October 2010 Deni A. Novendi, Heri Satono, Muardi Marwas, Ibnu Satria

Taufik Margani

Tony Arifiarachman

S-1

24 – 26 April 2012 Octo H.P.N Nainggolan,

Oktovianus Rusmin, Rudi Ramdani.

Taufik Margani

Tony Arifiarachman

S-2 29 April -1 May 2013 Octo H.P.N Nainggolan,

Marsudi Eko Santoso, Moh Arif Yusni, Syarip Lambaga, Sandra Purba

Taufik Margani

Tony Arifiarachman

S-3 21 – 23, 25 April 2014 M. Syarif Lambaga, Ibnu Satria

Prabudi, Isyana Dewi, Sofyan Hadi Lubis, Andi Pratama Pasaribu

Taufik Margani

Tony Arifiarachman

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

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

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

MUTU Certification • Accredited by Accreditation Services International on March 12th, 2014

Assessment Approved by MUTUAGUNG LESTARI on:

S-3 18 June 2014

http://www.mutucertification.com/


ASSESSMENT REPORT

SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Angsana POM - PT Ladangrumpun Suburabadi (Sime Darby Plantation Sdn. Bhd)

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Ladangrumpun Suburabadi Figure 2. Operational Map of PT Ladangrumpun Suburabadi

01 02

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 03

1.2 Organization Information 03

1.3 Type of Assessment 03

1.4 Location of Plantations, Mill and Area Statement 03

1.5 Description of Supply Base 04

1.6 Dates of Plantings and Cycles 05

1.7 Tonnage Certified 05

1.8 Other Certifications 06

1.9 Time-Bound Plan for Other Management Units 06

2.0 ASSESSMENT PROCESS

2.1 Certification Body 09

2.2 Assessment Team 09

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 09

2.4 Stakeholder Consultation and List of Stakeholders Contacted 11

2.5 Date of Next Surveillance Visit 12

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

12 41

3.3 Conformity Checklist of Certificate and Logo Use 47

3.4 Summary of RSPO Partial Certification 48

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

51

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 69

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 76

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 77

2. Assessment Program 78

3. Glossary 80

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 1 Prepared by Mutuagung Lestari for Angsana POM - PT Ladangrumpun Suburabadi (Sime Darby Plantation Sdn. Bhd)

Figure 1. Location Map of PT Ladangrumpun Suburabadi

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 2 Prepared by Mutuagung Lestari for Angsana POM - PT Ladangrumpun Suburabadi (Sime Darby Plantation Sdn. Bhd)

Figure 2. Operational Map of PT Ladangrumpun Suburabadi


ASSESSMENT REPORT

SPO – 4006a.5 Page 3 Prepared by Mutuagung Lestari for Angsana POM - PT Ladangrumpun Suburabadi (Sime Darby Plantation Sdn. Bhd)

1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

1.1 National Interpretation Used National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia -

RSPO INA-NIWG, May 2008 and RSPO Supply Chain Certification Standard November 2011 for CPO Mill.

1.2 Organization Information

1.2.1 Company name PT Ladangrumpun Suburabadi – Sime Darby Sdn. Bhd

1.2.2 Contact person -

1.2.3 Company address and site address Office: The Plaza Lt. 36 Jl MH Thamrin Kav. 28-30 Jakarta 10350 Site: Sub District of Angsana, District of Tanah Bumbu, Province of South Kalimantan, Indonesia

1.2.4 Telephone +62-21-2992650

1.2.5 Fax +62-21-5711652

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Swasta

1.2.9 Management Representative who completed the application for certification

Mohamad Pirabaharan (Head of TQEM Plantation)

1.2.10 Registered as RSPO member 08th September 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm Oil Mill and supply base

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT Ladangrumpun Suburabadi – Sime Darby Sdn. Bhd

1.3.4 Number of management unit 1 (one) palm oil mill unit (Angsana POM) with FFB from 4 (four) estate unit, i.e: Angsana Estate (ASE), Gunung Sari Estate (GSE), Pantai Bonati Estate (PBE), dan KKPA4

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Angsana POM Sub District of Angsana, District of Tanah Bumbu, Province of South Kalimantan, Indonesia

030 36’ 43” S 1150 26’ 35” E

1.4.2 Location of Supply Base

Name of Supply Base

Location GPS

Latitude Longitude

Angsana Estate Sub District of Angsana, District of Tanah Bumbu, Province of South Kalimantan, Indonesia

30 38’ 45” – 30 35’ 39” S

1150 34’ 04”-1150 38’ 11” E

Gunung Sari Estate

Sub District of Angsana, District of Tanah Bumbu, Province of South Kalimantan,

30 41’ 27” – 30 37’ 40” S

1150 33’ 34” -1150 39’ 46” E

mailto:[email protected]

http://www.simedarby.com/


ASSESSMENT REPORT


Indonesia

Pantai Bonati

Estate

Sub District of Angsana, District of Tanah Bumbu, Province of South Kalimantan, Indonesia

30 41’ 35” – 30 46’ 05” S

1150 32’ 23” – 1150 41’ 56” E

KKPA-4


30 41’ 65” – 30 46’ 75” S

1150 06’ 25” – 1150 07’ 25” E

1.4.3 Tenure

State 11,571.93 Ha

Community

1.4.4 Area Statement

Total area 11,571.93 Ha

Mature area 9,123.88 Ha

Immature area - Ha

Mill 41.08 Ha

Emplashment 92.58 Ha

Infrastructure 442.44 Ha

Occupation 42.56 Ha

Enclave 117.24 Ha

LC 1,663.07 Ha

HCV 46.33 Ha

Others area 2.75 Ha

1.5 Description of Supply Base

1.5.1 Description of Mill

Name of Mill Capacity (tonnes/

hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Angsana POM 60 197,233.75 43,647.82 22.13 9,485.10 4,82 - -

* Source: Production Data period April 2013 – March 2014

1.5.2 Description of Certified Estates

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

Angsana Estate 3.249.99 2,926.56 54,729.22 19 54,729.22 100.00

Gunung Sari Estate 2,388.49 2,558.65 50,646.06 20 49,386.42 97.51

Pantai Bonati 2,717.58 962.67 18,848.70 20 5,161.77 2.74

KKPA4 3,215.87 2,676.00 50,132.47 19 39,354.44 78.00

TOTAL 11,571.93 9,123.88 174,356.45 19 148,631.85 85.24



ASSESSMENT REPORT


1.5.3 Smallholder(s) and other source

Name of source(s)

Member(s) Location FFB

(tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

KKPA1 Full Manage Scheme smallholder of PT Sajang Heulang (Sime Darby Plantation Sdn Bhd)


29,028.75 29,028.75 100

KKPA 5 19,573.15 19,573.15 100

TOTAL 48,601.90 48,601.90 100


1.5.4 Product categories FFB & CPO

1.6 Year of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year

Hectarage (Ha)

Angsana Estate

Gunung Sari Estate

Pantai Bonati Estate

KKPA 4 Total (Ha)

1995 - 593.97 - 741 1,334.97

1996 629.55 835.09 - 92 1,556.65

1997 - - - 347 347

1998 1,546.00 1,129.56 962.67 1,431 5,069.23

1999 122.91 - - 65 187.91

2000 84.04 - - - 84.04

2001 - - - - -

2002 - - - - -

2003 - - - - -

2006 325.54 - - - 390.54

2007 181.90 - - - 181.90

2008 36.62 - - - 36.62

TOTAL 2,926.56 2,558.64 962.67 2,676 9,123.88

1.6.2 New Planting area after January 2010

Ha

1.6.3 Planting Cycle 1st Cycle 25 Year

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product Certificate Claim (tonnes/year)

Actual certified product (tonnes/year)

FFB Production 263,513

CPO Production 59,817 35,725

Palm Kernel (PK) Production 13,176 7,622.73

* Certificate Claim periode 06 July 2013 s/d 05 July 2014 ** Actual Claim periode 06 July 2013 s/d 23 April 2014


ASSESSMENT REPORT


1.7.2 Claim Certified Tonnage of FFB

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Angsana Estate 3.249.99 2,926.56 58,013 19.82

Gunung Sari Estate 2,388.49 2,558.65 53,685 20.98

Pantai Bonati 2,717.58 962.67 19,980 20.75

KKPA4 3,215.87 2,676.00 53,140 19.86

TOTAL 11,571.93 9,123.88 184,818 20.25

1.7.3 Claim Certified Tonnage of Palm Product

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Angsana POM 60 184,818 43,432.23 23.5 8,316.81 4.5 - -

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP HACCP certification Certified No. 026/MC HACCP/2009 valid untill 21 January 2016.

1.8.4 Others -

1.9 Time Bound Plan

1.9.1 Time Bound Plan for Other Management Units

MANAGEMENT UNIT Estate (Supply

Base) Time Bound LOCATION

MILL Time Bound

Plan

Sekunyir.

PT. Indotruba Tengah

Certified 2010 Sekunyir Certified 2010 Seruyan and West

Kotawaringin District –

Central Kalimantan

Seruyan Certified 2010

Manggala.

PT. Tunggal Mitra

Plantations

Certified 2010 Manggala 1 Certified 2010 Rokan Hilir District – Riau

Manggala 2 Certified 2010

Manggala 3 Certified 2010

PT. Sime Indo Agro Certified 2010 PT. Sime Indo Agro Certified 2010 Sanggau District –West

Kalimantan

Teluk Siak.

PT Aneka Inti Persada

Certified 2011 Teluk Siak Certified 2011 Pekanbaru, Siak District –

Riau

Pinang Sebatang Certified 2011

Aneka Persada Certified 2011

Sungai Pinang.

PT. Bina Sains Cemerlang

Certified 2012 Sungai Pinang Certified 2012 Musi Rawas District – South

Sumatera

Bukit Pinang Certified 2012


ASSESSMENT REPORT


Sukamandang.

PT. Kridatama Lancar

Certified 2011 Sukamandang Certified 2011 Seruyan and East


Central Kalimantan

Sapiri Certified 2011

Baras Danum Certified 2011

Kuala Kuayan Certified 2011

Pemantang.

PT. Teguh Sempurna

Certified 2011 Pemantang Certified 2011 Seruyan and East


Central Kalimantan

Kawan Batu Certified 2011

Hatan Tiring Certified 2011

Batang Garing Certified 2011

Alur Dumai.

PT Lahan Tani Sakti

Certified 2011 Alur Dumai Certified 2011 Rokan Hilir District – Riau

Teluk Bakau.

PT. Bhumireksa Nusa Sejati

Certified 2011 Teluk Bakau Certified 2011 Indra Giri Hilir District – Riau Nusa Perkasa Certified 2011

Nusa Lestari Certified 2011

Mandah.

PT. Bhumireksa Nusa Sejati

Certified 2014 Mandah Certified 2011 Indra Giri Hilir District – Riau Rotan Semelur Certified 2011

Angsana Mini.

PT Sajang Heulang

Certified 2011 KKPA-1 PT.SHE Certified 2013 Tanah Bumbu District –

South Kalimantan Pantai Bonati Certified 2011

Angsana.

PT Ladangrumpun

Suburabadi

Certified 2011 Angsana Certified 2011 Tanah Bumbu District –

South Kalimantan Gunung Sari Certified 2011

KKPA-4 PT.SHE Certified 2013

Mustika.

PT Sajang Heulang

Certified 2013 KKPA-2 PT.SHE Certified 2013 Tanah Bumbu District –

South Kalimantan KKPA-3 PT.SHE Certified 2013

KKPA-5 PT.SHE Certified 2013

Gunung Aru.

PT Bersama Sejahtea Sakti

Certified 2011 Gunung Aru Certified 2011 Kotabaru District – South Kalimantan

Gunung Kemasan Certified 2011

Laut Timur Certified 2011

Pantai Timur Certified 2011

Bebunga. PT. Langgeng Muaramakmur

Certified 2011 Sungai Cengal Certified 2011 Kotabaru District – South Kalimantan

Bebunga Certified 2011

KKPA Sungai Cengal 2014

Pondok Labu.

PT Paripurna Swakarsa

Certified 2012 Binturung Certified 2012 Kotabaru District – South Kalimantan

Pondok Labu Certified 2012

Rampa Certified 2012

Sesulung Certified 2012

Selabak.

PT Swadaya Andhika

Certified 2012 Selabak Certified 2012 Kotabaru District – South Kalimantan

Randi Certified 2012

Sangkoh Certified 2012

Lanting Certified 2012

Rantau.

PT Laguna Mandiri

Certified 2012 Rantau Certified 2012 Kotabaru District – South Kalimantan Matalok Certified 2012

Betung.

PT Laguna Mandiri

Certified 2014 Betung Certified 2012 Kotabaru District – South Kalimantan Sekayu Certified 2012

Ungkaya.

PT Tamaco Graha Krida

Certified 2012 Ungkaya Certified 2012 Morowali District – Sulawesi Tengah Plasma TGK 2015


ASSESSMENT REPORT


Ladang Panjang.

PT Bahari Gembira Ria

Certified 2012 Ladang Panjang Certified 2012 Muaro Jambi District – Jambi Plasma BGR 2015

Rantau Panjang.

PT Guthrie Pecconina

Indonesia

Certified 2012 Rantau Panjang Certified 2012 Musi Banyuasin District – South Sumatera

Bumi Ayu Certified 2012

Karang Ringin Certified 2012

Napal Certified 2012

Mangun Jaya Certified 2012

KKPA Sungai Pinang 2015

Blang Simpo.

PT Perkasa Subur Sakti

Certified 2013 Tamiang (PT PPP) Certified 2013 Aceh Tamiang and East Aceh District – Nanggroe Aceh Darussalam

Batang Ara ((PT

PSK))

Certified 2013

Blang Simpo-01 (PT

PPP)

Certified 2013

Blang Simpo-02 (PT

PPP)

Certified 2013

MAS.

PT Mitra Austral Sejahtera

2020 MAS 1 2020 Sanggau District – West Kalimantan

MAS 2 2020

MAS 3 2020

Lembiru.

PT Sandika Nata Palma

Certified 2014 Lembiru Certified 2014 Ketapang District – West Kalimantan

Awatan Certified 2014

Pelanjau (PT BAL) 2014

Sungai Putih (PT

BAL)

2014

Baturus (PT BAL) 2014

Sime Darby has achieved 39 Managament units in Malaysia and 21 Management Units in Indonesia RSPO certified.

There was change of the Time Bound Plan under Sime Darby cause the Sime Darby postpone the others certification

process. Change of the Time Bound Plan explaination:

PT Mitra Austral Sejahtera. There are social issue still unresolved from the Serikat Petani Kelapa Sawit (SPKS) Sanggau,

however the improvement are in progress.

Sime Darby has informed the Time Bound Plan progress, MUTUAGUNG has consider that Sime Darby still comply with the

RSPO requirement for partial certification.


ASSESSMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

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

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

S-3 1. M. Syarif Lambaga (Lead Auditor). Bachelor of Agriculture from UNHAS, Master of Science Program Post Harvest Technology of IPB, trainings have been followed among others, Lead auditor training RSPO, In House Training for ISO 9000 and 14001 Lead Auditor Training SFM as Social Expert, ISO 22000 Lead Auditor Training, ISPO Lead Auditor Training, and MalcolmBaldrige Training. Having experience in the plantation of more than 5 years, and experience as a food safety auditor for more than 5 years, team members evaluator SNI BSN Awards, and as a team member for socialization RSPO smallholder and large estate sconducted by DMSI 2006-2009. In Surveillance 3, he focused on Legality, Conservation and Supply Chain Aspects

2. Ibnu Satria Prabudi (Auditor). A Bachelor of Agriculture Majoring in Agro-technology, Agriculture Faculty of Instiper Yogyakarta. Currently he has been working with an independent certification agency as auditor. Training he has followed are: Lead Auditor RSPO, Auditor ISPO, Awareness HACCP certification, Awareness SQMS Mc Donald, In House Training Green House Gas and Lead auditor ISO 9001;2008. He has been working with an independent certification body as an auditor. He has followed several audit activities related to certification system of sustainable palm oil (RSPO and ISPO certification). In Surveillance 3, he focused on Best Management Practices and Social aspects.

3. Isyana Dewi (Auditor). Bachelor of Public Health, Department of Occupational Safety and Health. Faculty of Public Health, University of Indonesia. She has experience working in oil palm plantation companies in Indonesia. Attended some training included awareness for RSPO certification system, and Integrated Management System certification (and OHSAS 18001:2007, ISO 14001:2004, ISO 9001:2008). In Surveillance 3, she focused on Safety, Health and Lobor aspect.

4. Sofyan Hadi Lubis (Auditor). Master’s Program in Environmental and Natural Resource Management, Institutut Pertanian Bogor (IPB) and Bachelor of Social Economic Agriculture, Gadjah Mada University (UGM). Participated in several environmental management workshops, climate change mitigation training and adaptation for agricultural productivity in Southeast Asia, Carbon Forum Asia Update and EIA lecture. He has also been involved as a research team at the Centre for Research, Development and Climate Change Policy (Puspijak) Ministry of Forestry of Indonesia – Bogor and Research Team in cooperation program IPB – ETH Zurich Switzerland – NUS Singapore. He has followed Auditor training ISPO, ISO 9001-2008 and Awareness RSPO. Furthermore, he also worked as a staff environmental/agricultural in consulting firm and done the preparation of EIA. In Surveillance 3, he focused on the environment aspects

5. Andi Pratama Pasaribu (Trainee Auditor). Bachelor of Agriculturefromthe Department ofAgribusiness,Faculty of Agriculture,Jember University. Has attended several training such as: Auditor forIndonesianSustainable PalmOil(ISPO) training, Awareness RSPO, Awareness ISO 22000, Lead Auditor ISO 9001:2008 and High Conservation Value. Previously workedas an operational staff inprivateoil palm plantations. Currently worked as an auditor at Certification Body. In Surveillance 3, he focused on Best Management Practices aspects

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

S-3 Number of auditors : 5 persons Number of days for assesment at site : 3 days Number of working days for at site : 15 Working days

2.3.2 Detail process of assessment

http://www.mutucertification.com/



ASSESSMENT REPORT


S-3 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PT Ladangrumpun Suburabadi the requirements of National Interpretation of the Republic of Indonesia from RSPO Principles and Criteria for Sustainable Palm Oil (RSPO INA-NIWG, May 2008) and Supply Chain Requirement for CPO Mill. The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site. Some opportunities for improvement of the results S-3 delivered by the MUTU auditor to the management unit and the results are the subject will be verified at the next assessment phase S-4 Improvement of findings from S-3 were observed by auditors at this S-4 assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of S-3 The assessment program please find Appendix 2

2.3.3 Locations of Assessment

S-3 Auditors choose Angsana Mill, Angsana Estate and KKPA-4 Estate as sample locations for certification assessment. Angsana POM: 1. Processing (from loading ramp to dispatch). Observation over processing, from FFB to crude palm

oil (CPO) and emergency response equipment for fire in mill. Interview with mill’s officers (boiler’s operator and engine room’s operator) related to medical examination, operator’s license, salary; complain mechanism, implementation of occupational health and safety, training, safety work procedure, provision of personal protective equipment and mechanism for mass-balance supply chain model. Another observation was related to environment monitoring (location for air quality examination, noise examination as well as vibration examination)

2. Chemical Material Warehouse. Observation over chemical material management and interview with warehouse officer related to management procedure for chemical material, emergency response procedure and implementation of occupational health and safety.

3. Water Treatment Process (WTP). Observation on water utilization for Angsana POM & Angsana POM housing.

4. Workshop. Observation over provision of emergency response equipment and occupational health and safety (first aid kit) and interview with welder related to training, medical examination, implementation of occupational health and safety, safety work procedure, complain mechanism, freedom to establish and join worker union and salary.

5. Diesel Fuel Reservoir. Observation on fire emergency response facility. 6. Temporary Hazardous Waste Warehouse in Mill. Observation over hazardous waste management

based on the applicable regulation and interview with hazardous waste warehouse officer related to medical examination, management procedure to control hazardous waste and provision of facility to maintain pollution and exposure.

7. Waste Water Treatment Plan (WWTP). Observation over effluent management and pollution-reduction management.

Angsana Estate: 1. Block E10. Observation over riparian management and vegetation cultivation in order to enrich

biodiversity. 2. Block E16 and E17. Observation and interview with harvesting personnel and harvesting supervisor

related to their understanding on harvesting SOP, harvesting operation, utilization of PPE, personnel welfare and housing facility as well as their (harvesting personnel) understanding over natural


ASSESSMENT REPORT


conservation and protected wildlife within estate area. 3. Block K12. Observation and interview with spraying supervisor and spraying team related to

company’s policy on spraying activity implementation, application of chemical material along riparian area, periodic medical examination, PPE utilization and provision, spraying technic training, occupational health and safety training, first aid training, complain mechanism especially for gender issue, personnel welfare and salary.

4. Block B21. Observation and interview with management related to land application management and monitoring well.

5. Block B22. Observation over measurement location for erosion pole. 6. Block C15. Interview with loosen fruit picker related to public facility, occupational health and safety,

RSPO, salary, worker union and gender committee. 7. Block C015. Interview with harvesting personnel related to public facility, occupational health and

safety, RSPO, salary, worker union and gender committee, as well as monitoring over first aid box. 8. Angsana Estate Central Clinic. Interview with company’s physician, dr. Nur Hasanah related to

occupational health program, periodic medical examination and medical waste.

KKPA-4 Estate: 1. Block I53 Harvesting Activity. Observation and interview with harvesting personnel related to their

understanding on SOP, PPE utilization, personnel welfare as well as housing facility. 2. Block H55 KKPA-4. Evaluation over boundary pole for Pantai Bonati Estate and KKPA-4 Estate 3. Block J12 and KL3. Observation over boundary pole 4. Block F58 KKPA-4. Observation and interview with harvesting personnel and harvesting supervisor

related to their understanding on harvesting SOP, harvesting operation, utilization of PPE, personnel welfare and housing facility as well as their (harvesting personnel) understanding over natural conservation and protected wildlife within estate area.

5. Block J61 KKPA-4. Observation on HCV management activity, buffer zone and riparian area 6. Block E10 Angsana Estate. Observation on riparian area’s management and vegetation cultivation in

order to enrich biodiversity 7. Fertilizer Warehouse, Chemical Material, Workshop & Diesel Fuelling Station. Observation related

to hazardous waste, source of waste, pollution & waste management as well as occupational health and safety implementation

8. Temporary Warehouse for Hazardous Waste. Observation related to hazardous waste management. Village and Agencies: 1. Forestry and Plantation Agency of Tanah Bumbu District. Interview related to warning to stop LSI

Estate’s business activity. 2. Environment Agency of Tanah Bumbu District. Interview related to withdrawal over LSI’s

environment document (AMDAL). 3. Manpower and Transmigration Agency of Tanah Bumbu District. Interview related to LSI

implementation over manpower’s regulation.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Summary of stakeholder consultation process Consultation of stakeholders for PT Sajang Heulang was done by:

1. Public Notification on RSPO website: (www.rspo.org). 30 days before audit surveillance -3 2. Public consultation meeting with internal stakeholders by interviews and local stakeholders conducted by

visits to villages and interviews with local peoples. Numbers of input from stakeholders were clarified by PT Sajang Heulang

http://www.rspo.org/


ASSESSMENT REPORT


2.4.2 List of stakeholder contacted

Please find appendix 1

2.5 Determining Next Visiting

The next visit (S-4) will be determined one year after this (S-3)


ASSESSMENT REPORT


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

MUTUAGUNG LESTARI has conducted an assessment of Angsana POM – PT Ladangrumpun Suburabadi, Sime Darby Plantation Sdn Bhd operation consisting of 1 (one) mill and 4 (four) oil palm estates.

During the assessment, there were nine (9) non-conformities were assigned against major compliance indicators; seven

(7) non-conformities were assigned against minor compliance indicators; and one (1) non-conformances against supply

chain requirement for CPO mill and one (4) opportunity for improvement were identified.

Further explanation of the non-conformities raised and corrective actions taken by the company are provided in section

3.5. The company has already prepared and implemented the corrective action(s) that had been reviewed and accepted

by Auditors in form of documentation evidences e.g. document record/photographic. Those corrective action(s) taken

that consist of nine (9) major non-conformities had been closed out and seven (7) minor non-conformites had been

closed out and shall be verified during next assessment.

MUTUAGUNG LESTARI found that Angsana POM – PT Ladangrumpun Suburabadi , Sime Darby Plantation Sdn Bhd

complied with the requirements of RSPO Principles & Criteria and National Interpretation, RSPO Principles and Criteria

(P&C) for Sustainable Palm Oil Production, Republic of Indonesia – RSPO INA-NIWG, May 2008.

Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is Continued.

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

Since company implements RSPO requirements and certification agency conducts audit, company has consistently recording the incoming information requests. This can be proved with the available recapitulation documents and information request letters. These evidences are well recorded from 2011 to 2014 (updated in March 2014). Sample of information requests such as:

Angsana Estate: Incoming information in 2014 grant request/ transportation vehicle for elementary school graduation ceremony in Tanah Bumbu District on 23rd January 2014.

KKPA-4 Estate: Sebamban Lama Village sent letter about heavy equipment loan request to repair road on 20th December 2013. Company has responded this request on 25th December 2013. Company mentioned that they would lend heavy equipment by considering weather condition.

Angsana Mill: Incoming information in 2014 Internship request from University of Lambung Mangkurat on 12th April 2014.

Registration book for incoming and out-going letter recorded the entire incoming and out-going letters. Company has recapitulated the entire incoming letters, which being explained in external communication logbook for period 2012 (4 incoming information), 2013 (7 incoming information) and 2014 (5 updated incoming information until February 2014). This condition has been in line with company’s procedure. Meanwhile, sample for incoming information that have been responded, such as: Angsana Estate: Incoming information in 2014 grant request/ transportation vehicle for elementary school graduation ceremony in Tanah Bumbu District on 23rd January 2014. Company has responded this request on 23rd January 2014. Company approved this request. KKPA-4 Estate: Sebamban Lama Village sent heavy equipment loan request to repair road on 20th December 2013.


ASSESSMENT REPORT


Company hds responded this letter on 25th December 2013. Company mentioned that they would lend heavy equipment by considering weather condition. Angsana Mill: Incoming information in 2014 Internship request from University of Lambung Mangkurat on 12th April 2014 has been responded on the same day. Company would approve this request. Based on SOP for documents management, No.704/TQEM-ESH/10 point 6.5, on 4th April 2010, documents will be stored based on company’s need, such as:

Required for auditing assessment for 3 years

Required for reference for 10 years

Related to law and regulation will be kept until there is a revision

Information request and response for 2 years

Company’s policy will be kept until there is a revision

Land leasing record will be stored as long as company still runs/ active (unlimited) Based on public consultation with related agency like Industrial, Trade, Cooperative and Small Medium Enterprise Agency, in general company has submitted its production report to Head of Indonesia Investment Coordinating Board (BKPM) and Plantation Agency of Tanah Bumbu District as regulated in Head of Capital Coordination Bureau policy and Ministry of Agriculture Decree No. 26 in 2007 and Ministry of Agriculture Decree No. 98 in 2013. Auditor will verify this finding in next surveillance Related to company’s effort to submit its report to Industrial, Trade, Cooperative and Small Medium Enterprise Agency of Tanah Bumbu District. However, PT LSI has not consistently reported its six-month plantation business growth report to Plantation Agency. Moreover, company will point head of division as person in charge to monitor required-document’s management.

OFI: Company is suggested to provide information about date of response over incoming information requests and to ensure document’s validation by head of unit.

Status: Complied

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

Company has a procedure, which regulates type of information that can be assessed by public. This procedure is stated in SOP for information answer/ response. However based on document’s review, this SOP has not regulated list of legal document and environment as part of accessible information for stakeholders. Non-compliance CAR No. 2014.01. This finding may occur because there is no update over SOP for information answer/ response related to legal document and environment document. Based on SOP for documents management, No.704/TQEM-ESH/10 point 6.5, on 4th April 2010, documents will be stored based on company’s need, such as:

Required for audit assessment for 3 years

Required for reference for 10 years

Related to law and regulation will be kept until there is a revision

Information request and response for 2 years

Company’s policy until there is a revision

Land leasing record will be stored as long as company still runs/ active (unlimited) Company will point head of division as person in charge to monitor required-document’s management. Observation on 18th May 2014: Company has pointed out improvement evidence by setting type of document that can be assessed by stakeholders (company has issued SOP for information grant). In order to avoid same mistake in the future, the implementation could be done during internal audit. Furthermore, non-compliance NCR No. 2014.01 is closed.

Status: Complied

PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS


ASSESSMENT REPORT


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

Angsana Mill and Angsana Estate vendor (KKPA 1 Estate) have presented their compliance over the applicable regulation and policy, such as:

1. Completed permit to use hazardous waste warehouse that in line with Government Decree No. 18 in 1999; 2. Delivered training, provided work opportunity, has a good relationship with personnel, provided salary based on

regulation, provided freedom for personnel to establish and to join worker union. These treatments are in line with Law No. B13 in 2003 regarding to manpower.

3. Application permit for mill’s effluent has been in line with Ministry of Environment Decree No. 29 in 2003 regarding the permit to utilize mill’s effluent.

4. Company has plantation business permit (IUP) based on Ministry of Agriculture Decree No. 26 in 2007. 5. Company made revision on provincial minimum wage for plantation sector based on Kalimantan Selatan Governor

Decree No. 188.44/0533/KUM/2013 on 30th October 2013. This revision is legally stated in HRM General Manager Memorandum No: 037/HRM-I3/II/2014 on 3rd February 2014 related to salary/ payment revision for daily SKU and salary structure for monthly SKU in 2014 for Kalimantan Selatan region.

6. Ministry of Manpower, Transmigration and Cooperative Decree No. 01 in 1976 regarding the mandatory Hyperkes training for company’s physician.

7. Ministry of Manpower and Transmigration Decree No. 01 in 1979 regarding the mandatory Hyperkes training for company’s physician.

8. Ministry of Manpower Decree No. 01 in 1988 regarding the qualification and requirements for steam device’s operator 9. Ministry of Manpower and Transmigration Decree No. 09 in 2010 regarding the operator and staff for lift and transport

device. 10. Ministry of Manpower and Transmigration Decree No. 04 in 1985 regarding the power and production device. 11. Ministry of Manpower and Transmigration Decree No. 02 in 1982 regarding the qualification for welder in work place.

Based on document’s review and field visit, auditor found that some revisions over company’s policy have not been implemented, for instance:

1. Parameter for drinking water quality is still using Ministry of Health Decree No. 416 in 1990. 2. Utilization of hazardous waste symbol and label still refers to Environmental Impact Management Agency Decree No.

5 in 1995. 3. Ministry of Manpower and Transmigration Decree No. 01 in 1979 regarding the mandatory of Hyperkes training for

company’s physician: the entire paramedics have not got the Hyperkes training as requested by the above Decree, there was a request letter that addressed to GM HRM about Training Hyperkes for 12 Paramedics from PT. LSI and SHE, on 08th October 2013, but until now, this training has not been being implemented yet. Non-compliance CAR No. 2014.02. Proposal for Hyperkes training has been submitted by company’s physician on 18 th October 2013, with a letter No. 006/PS-GAE/X/2013 and is still under process in HRM unit.

4. Ministry of Manpower and Transmigration Decree No. 02 in 1982 regarding the qualification for welder in work place: Welders in LSI not entirely have welder license because company has not identified welders who need to be trained.

5. Ministry of Manpower and Transmigration Decree No. 04 in 1985 regarding the power and production device: Generator’s operators in ASF did not entirely have operator license.

6. Ministry of Manpower and Transmigration Decree No. 15 in 2008 related to first aid kit in work place: content of first aid box in PT. LSI is not in line with the above Decree because lack of understanding over first aid box content based on Ministry of Manpower and Transmigration Decree No. 15 in 2008.

7. President Decree No. 4 in 2001 regarding the environment pollution and damage control, which related with forest fire and field fire: company has not submitted its report on forest and field fire prevention every 6 months to Governor/ Head of Reagent/Municipal and carbon copy this report to related technical agencies and responsible agencies. This finding may rise from lack of understanding over President Decree No. 4 in 2001.

8. Company has conducted drinking water examination in two locations, such as WTP & community’s well in Division 3, which being recorded in Examination Result Report on 10th March 2014. The examined parameters such as BOD5, DO, pH, NO3-N, Cl, SO4, & Zn that refers to standard quality in Ministry of Health Decree No. 416 in 1990. However, standard quality for drinking water is not in line with Ministry of Health Decree No. 492 in 2010 regarding the requirement for drinking water quality. Non-compliance CAR No. 2014.03. This finding may rise because management has not received revision and update on standard quality for drinking water based on Ministry of Health


ASSESSMENT REPORT


Decree No. 492 in 2010 9. Company has had licensed for temporary hazardous waste storage. However, company does not have shower eye

wash and alarm in temporary hazardous waste storage based on Local Environment Agency/ BLHD of Tanah Bumbu District Decree No. 660/15/BLHD/2012 on 27th February 2012. This finding may rise because there is a delay on shower eye’s procurement.

Evaluation mechanism for company’s compliance implementation toward applicable and related regulation is stated in SOP for legal requirement PT. LSI Minamas Plantation No.701/TQEM-ESH/10. Evaluation mechanism by conducting:

1. Identification and inventory over legal requirement 2. Regularly contacting government institution and NGO in order to get update on local, national and international

regulation 3. Actively surfing related web 4. Being annually up-dated 5. Obedience/ compliance 6. Summarizing identification result in K3LL (occupational health and safety, protection and environment) regulation-

summary’s document 7. Providing information or related division (stakeholders) related to applicable regulation. 8. Company should up-date regulation-summary’s document, which related to K3LL (occupational health and safety,

protection, environment) every 6 months. 9. Conducting inspection and analysis over operation’s data through internal and external audit

Based on document’s review, company has had list of regulation that need to be complied by company. However, lack of evidence to proof that this document has been updated based on its change. Non-compliance CAR. 2014.04. This may rise because company has not updating its regulation list as well as the evaluation over its compliance in 2014 Observation on 15th May 2014 Company presented evidences for regulation compliance, such as: 1. There is evidence in a form of Hyperkes training plan for the entire paramedics in PT. LSI and SHE that has been

conducted from 9th to 11th June 2014. Non-compliance NCR No. 2014.02 is closed. 2. Recommendation letter for welder class III No. 566/01/Disnakertrans/2013 on behalf of Hairudin. Non-compliance NCR

No. 2014.02 is closed. In order to avoid this from happening in the future, company will monitor the completeness of SIP in entire units.

3. Improvement evidence on delivery order over field fire report to Head of Plantation Agency. Non-compliance NCR No. 2014.02 is closed. In order to avoid this case from happening in the future, company will monitor field fire report every 6 months.

4. Clean water re-examination request by conducting socialization for boiling water No.126/ASF/Int/V/2014, which refers to Ministry of Health Decree No. 416 in 1990. Company is still waiting the examination result from Research and Standardization Agency (Baristan) Laboratory for ±1.5 months and presents the socialization evidence through Memorandum No. 39/LSI-ASF/V/12 on 1st May 2012 regarding the following action: boiling water before consumed. Non-compliance CAR No. 2014.03 is closed. In the future, examination over drinking water quality should be based on Ministry of Health Decree No. 492 in 2010.

5. Documentation over shower eye washes installation and alarm in temporary hazardous waste storage that based on Ministry of Environment Decree No. 14 in 2013. Non-compliance NCR No. 2014.02 is closed. Preventive action is by conducting field observation.

6. Company has presented improvement actions by updating list of regulation in compliance-evaluation document; therefore non-compliance NCR. No. 2014.04 is closed. In order to avoid this case from happening in the future, company will periodically update its compliance-evaluation document.

Observation on 15th June 2014 Company has presented improvement evidence over first aid box content in work place that based on Ministry of Manpower and Transmigration Decree No 15 in 2008; therefore, non-compliance NCR. No. 2014.02 is closed. Preventive action is by conducting periodic monitoring over first aid box content.

Status: Complied


ASSESSMENT REPORT


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

PT LSI has presented land ownership documents (land, which currently become the palm oil plantation). These land ownership documents can be proved by 4 HGU (Land Use Title), such as:

1. HGU certificate No. 19, on 8th July 1999, which was issued by Land Agency of Kotabaru with an area of 5,909 Ha. 2. HGU certificate No. 43, on 25th June 2004, which was issued by Land Agency of Tanah Bumbu with an area of 45.50

Ha 3. HGU certificate No. 44, on 25th June 2004, which was issued by Land Agency of Tanah Bumbu with an area of 112 Ha 4. HGU certificate No. 45, on 25th June 2004, which was issued by Land Agency of Tanah Bumbu with an area of 10.50

Ha. 5. For Pantai Bonati estate area (PT SHE) there is an overlapping with mining company and until now, this mining

company (PT Anzawara Satria) occupied this area and the execution has been done. PT. LSI’s area that has had HGU is 6,077 Ha KKPA: there is a name list for smallholder who owned KKPA project land KUD Tuwuh Sari in collaboration with PT. Sajang Heulang. This document states KUD/ cooperative membership number, smallholder’s name, place and date of birth, heir, plantation number, block and broad of plantation. In addition to pole’s installation, company has built road (size of road is 3 meters) as area’s boundary, which was well maintained. Nucleus estate management is maintaining boundary poles between KKPA estate and nucleus estate PT. Ladangrumpun Suburabadi and PT. Sajang Heulang together with maintaining outer boundary (disc). Meanwhile, KKPA management is maintaining KKPA’s boundary areas that side by side with village area based on block location in each estate. There is a document for HGU’s pole program and monitoring for period 2013-2014. Company is conducting maintenance program for boundary poles every 3 months. Based on latest monitoring result, main pole comes from National Land Agency. Conflict resolution in PT. LSI is based on land leasing procedure No. 343/PSD-OKUP/11 on 23rd February 2012 that issued by Minamas Plantation, which explains detail of compensation procedure.

Status: Complied

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

There is no traditional ownership within company’s operation area. Politto conducted HCV identification for PT. Ladangrumpun Suburabadi in 2010, based on this identification, there is no HCV 6 (indication for traditional and legal right). Company has socialized the HCV identification document to stakeholders. National Land Agency of Tanah Bumbu issued letter No. 000/175/KP.12, on 15th July 2010, which explains that there is no indigenous land surrounding PT. Ladangrumpun Suburabadi HGU area. KKPA-4 area – PT Sajang Heulang as FFB’s vendor in Angsana Mill – PT Ladangrumpun Suburabadi is plantation area that belongs to community and PT. Sajang Heulang fully manages this plantation area. KKPA-4 area is plantation that provided by government for transmigrate community.

Status: Complied

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

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


ASSESSMENT REPORT


Company has had annual work plan and long-term projection (5 years). Each estate and mill unit such as Angsana Mill, Angsana Estate, Gunung Sari Estate and Pantai Bonati Estate drafts annual work plan and 5 year-projection. For instance: 1. Angsana Estate’s work plan in 2013/2014 and projection in 2014/15 – 2017/18, which consist of:

a. Areal Statement (TM 3,044.86 Ha, other areas amount 205.13 Ha and total area is 3,249.99 Ha). b. Personnel position and personnel ratio per hectare (5.8 ha/1 personal) c. Projection over FFB’s production (Ton) and Yield (Ton/Ha) d. Direct Cost, which consist of OP harvesting and Collection, OP Transport, OP Upkeep and OP manuring. e. Fixed Cost, which consist of General Admin, Labour, Road and Bridge. f. Production cost IDR. 595.92/Kg FFB

2. Angsana Mill’s work plan in 2013/2014 and projection in 2014/15-2017/18, which consist of:

a. Projection over FFB’s acceptance (ton). b. Total extraction trend (OER-% and KER-%). c. Processing cost trend (IDR). d. Fixed Cost, which consist of administrative cost, personnel overhead and depreciation (IDR). e. Production cost IDR. 46.05/Kg FFB or IDR. 255.4/Kg CPO

3. KKPA-4’s work plan in 2013/2014 and projection in 2014/14 – 2017/18, which consist of:

a. Areal statement (TM 2,676 Ha) b. Personnel position and personnel ratio per hectare (4.9 Ha/1 personal) c. Projection over FFB’s production (Ton) and Yield (Ton/Ha) d. Direct Cost, which consist of OP harvesting and Collection, OP Transport, OP Upkeep and OP manuring. e. Fixed Cost, which consist of General Admin, Labour, Road and Bridge. f. Production cost IDR. 580/Kg FFB

Company conducting annual evaluation over annual work plan implementation together with drafting work plan and budget for next year as well as comparing to 5 year-work plan. Things that are being evaluated such as areal statement change, production and production cost, personnel, housing and building, average wage analysis and interest rate. Based on this evaluation, company will customize projection for annual work plan and 5-year work plan ahead. In addition, company will also set strategy to reach annual work plan target, for instance annual work plan target in 2013/2014 is:

Maximizing production Maximizing operation efficiency Improving personnel quality and quantity Increasing human resources Commitment toward work plan (budget)

Company made a revision on work plan in Pantai Bonati Estate in 2013/201. Previously, total area of PBE is 2,505 Ha while work plan in 2013/14 is 963 Ha including area statement, which related to conflict between SHE (Pantai Bonati Estate) and mining company that has been being winning based on State Court of Tanah Bumbu District and has been executed. Company does not have annual replanting program for 5 years ahead because replanting will start in 2020.

Status: Complied

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

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

Company has an SOP for Agronomic Manual Reference for palm oil cultivation, Policy No. 110/EST-ARM/13, which consists of 18 chapters/ parts about palm oil cultivation technic based on memorandum from Head of Plantation Upstream Indonesia on 16th September 2013. These chapters such as:

1. Cultivation material 2. Nursery technic


ASSESSMENT REPORT


3. Replanting 4. Land preparation 5. Plant density 6. Harvesting age 7. Field maintenance 8. Fertilization 9. Canopy management 10. Water management in beach area and cultivation in peat area 11. Ablation 12. Ripe standard 13. Harvesting spin 14. Fruit collection 15. Plantation protection 16. Weed control 17. Cover crop like nut and 18. Rain fall documentation

Company also has an SOP for palm oil management system. Policy No. 110/POD-FAC/07, which was approved by Factory Manager and GM of Mill’s area. This SOP consists of 2 documents. First document about palm oil management, such as: 1. Introduction to palm oil management:

a. Fruit acceptance (including grading and weighing) b. Sterilizer c. Thressing d. Digesting e. Pressing f. Clarification g. Separation between shell and fibre h. Kernel Station

2. Palm oil and palm kernel collection 3. Mill’s effluent management 4. Water management 5. Laboratory analysis

a. Digesting and Thressing Station b. Pressing Station and fibre cyclone c. Kernel Station d. Clarification Station e. Waste pond analysis f. Water analysis g. etc. h. preparation from control process report i. management from laboratory

Company has implementing the internal audit procedure in estate and mill. For instance: Estate 1. Internal audit result, Angsana Estate

Agronomic internal audit result, document no PL-1314-1091-ASE.B-RTN1-MA semester I 2013/2014 on 9-12th October 2013. Audit result presented agronomic finding like low hectare coverage on harvesting in Division III in January 2013. Management response (follow up finding) document no. ASE-gmpol/105/I/2014/s ASE estate on 15th January 2013 was by adding the number of harvesting personnel. Moreover, internal audit also recorded administration delay (settlement over advance). Management action plan was making monitoring over advance settlement.

2. Internal audit result, KKPA-4 Estate Internal audit document for semester II 2013/2014 on 21st – 24th March 2014. One of audit result is about the system/ procedure for personnel payment that is still using manual procedure through supervisor. Improvement effort by revising payment mechanism from supervisor to division assistant and sending balance of payment to capital office. Agronomic


ASSESSMENT REPORT


finding such as low productivity on spraying team because of high absence within spraying team. Company will deliver socialization for spraying personnel to reduce the number of absence and personnel will be promoted to be an SKU staff.

Mill Audit result on 27th – 29th May 2013 shows some findings, such as: a. Boiler/power house: there is damage in steam pressure and flow meter. It is recommended to be fixed and re-calibrating

digital control panel in order to smooth control over operation activity. Duration for fixing: immediately. Manager/ HOM have fixed this finding.

b. OER only reached 22.56% (lower than 1.19% from budget of 23.75%). It is recommended to make a coordination I order to increase FFB’s quality to optimize the finest OER: in process. Action: coordination has been run between estate manager and factory manager.

There is operation activity record for mill and estate, such as: 1. Estate

Management Meeting Report in March 2014 for Angsana Estate and KKPA-4 Estate. Both report stated about planted report, areal statement map, production (crop production, yield, monthly production graphic, harvesting interval, harvesting round), fertilization (realization, stock and cost), roads maintenance, replanting program, circle and path, selective weeding, pruning, EFB application program, box owl barn, cost, monitoring for personnel training, monitoring over internship as well as regular and non-regular CSR program.

2. Mill Monthly report from Factory Manager (Angsana Factory) in March 2014 states (1) General Data; covers (brief explanation over manager report and general summary over manager report), (2) Production and Dispatch; covers (end-month production report, production stock, FFB’s acceptance data, production and extraction statistic, daily production data and production dispatch, (3) Quality Analysis, Losses and Application; covers (production quality, production loss, quality analysis over accepted FFB, empty fruit bunches recapitulation, solid application recapitulation, effluent application recapitulation and chemical material utilization (4) Monthly Report; covers (total mill cost, mill processing cost, mill fixed cost, selling expense, running account-evit, (5) Data Staff, Personnel and Housing; covers (personnel position report, housing data and personnel, personnel attendance sheet recapitulation, guest visit and agency/institution visit report as well as the annexes.

Status: Complied

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

Company has conducted periodic soil analysis, leaf analysis and visual analysis. The available soil analysis such as: Soil Analysis Environment Research Centre of University of Lambung Mangkurat conducted soil analysis, such as:

a. Soil analysis result, Angsana Estate No: 219/UN8.2.1/PL/2013 file’s code: SQ-057/2013 on 18th May 2013. Analysis result on sample code MM/EF/13/ASE/PK-1 shows that soil texture is 84.86% sandy, 7.11% dust, 8.03% clay (texture class: sandy clay).

b. Soil analysis result, Gunung Sari Estate No: 220/UN8.2.1/PL/2013 file’s code: SQ-058/2013 on 18th May 2013. Analysis result on sample code MM/EF/13/GSE/PK-1 shows that soil texture is 64.41% sandy, 31.87% dust, 3.72% clay (texture class: typic hapludults).

c. There is a record for semi-detail soil analysis; Minamas Research Centre conducted this analysis in 2012 by. Laboratory analysis result presented soil condition and organic material in each soil sample and recommended fertilization by sustaining organic material balance in soil. The measured parameters were: texture, acidity (pH), contain of C, N, P, K, Mg, Ca, Na, BS, CEC, Al, H and capacity of cation exchange.

Leaf Analysis record for leaf analysis, such as:

a. Leaf Analysis Report Angsana Estate, document number LS-FS-Fol-5.10-01/Rev.0/5.0.09 on 17th May 2013. Analysis result in field A010 amount 66.24 Ha, sample tree: 763 its known that percentage on dry matter (ash: 8.14%, N: 2.79%, P: 0.136%, K: 1.046%, Mg: 0.299%, Ca: 0.517% and B: 19.5%).

b. Leaf analysis result in block J61 KKPA-4, it is known that percentage on dry matter (ash: 8.75%, N: 2.72%, P: 0.151%,


ASSESSMENT REPORT


K: 0.822%, Mg: 0.252%, Ca: 0.580% and B: 18.1%).

Company has conducted periodic soil and leaf analysis. Minamas Research Centre conducted soil analysis every 5 years meanwhile leaf analysis annually. Soil, leaf ad visual analysis results will become a basis for company to enrich soil fertility. For instance: 1. Empty fruit bunches fertilization record in Angsana Estate. Document number PF3002. This document recommends the

application doze. For instance in Block C 010 Division III Angsana Estate, the recommended doze is 550 kg/tree for block with broad of 40.21 Ha. Total required tonnage is 2.812,61 ton. Until April 2014, empty fruit bunches have been applied for amount 3,873.90 ton or 137.7% from recommendation.

2. Nephrolepsis bisserata cultivation in 2013-2014. For instance, cultivation in Block D008 Division III Angsana Estate. Cultivation plan is 64.80 Ha until March 2014 has been implemented amount 58.75 Ha (91%).

3. Treated POME application monitoring document, No. PF3003. POME application in Block E010, D008, C008, C009 and D009. Based on document’s verification, total debit of applied POME for semester I 2013 such as: a. July, amount 486.93 M3/Ha. b. August, amount 504.51 M3/Ha. c. September, amount 441.56 M3/Ha. d. October, amount 127.44 M3/Ha. e. December, amount 478.46 M3/Ha. f. January, amount 307.94 M3/Ha. g. February, amount 474.87 M3/Ha. h. March, amount 467.49 M3/Ha.

4. KKPA-4: fertilization implementation record in Block J61 type of fertilizer: Rock Phosphate. Based on supervisor daily report, total applied fertilizer is 6.45 ton.

Status: Complied

4.3 Practices minimize and control erosion and degradation of soils.

Semi-detail soil survey, Angsana Estate Semi-detail soil survey activity in Angsana Estate is part of follow up actions from monitoring soil survey, which has an objective to provide detailed information on boundary and type of soil as well as plantation topography, in order to gain an informative plantation land unit (SPL). Based on semi-detail soil survey, type of soil in Angsana Estate is classified in Oxisol Order with 2 soil series, such as soil series MM-18 Petroferric Hapludox and MM-19 Plinthic Hapludox. The spread of soil series in Angsana Estate can be stated in soil suitability unit (SPT), where 1 (one) SPT consists of one soil series and each SPT has a same soil type. Furthermore, overlay between soil series and plantation topography will generate plantation land unit (SPL). Angsana Estate consists of 3 (three) SPLs where each same SPL has the same soil series and topography. Evaluation result over land suitability class in Angsana Estate at each SPL presents that land class at SPL 1 and SPL 2 is classified in class S3 (less suitable/ moderately suitable). Meanwhile SPL 3 is categorized in class S2 (suitable). Main barrier of land class in Angsana Estate at SPL 1 and 2 is the existence of petro ferric layer (accumulation of Fe-oxide that shape a rock) in the depth of < 50 cm from soil surface. In addition, the average of dry season is from 2 to 4 months every 12 years, as well as the texture of sandy soil and huge potency of soil erosion also become a main barrier for land class in entire SPL in Angsana Estate. The entire SPL in Angsana Estate have a potency to become class S2 (suitable) with an effort to repair barrier factors. Company can take some efforts, such as: a. Reducing erosion rate and surface run-off, as well as leaching. b. Soil fertility management) c. Fertilizer management

Based on report document of soil fertility survey ASE number 1482/MRC/EST/XII/2013 on 31st December 2013, explains that sloping level is 0-4% (0-20) for amount 28.7% (874.7 Ha). Meanwhile sloping level is 4-12% (2-60) amount 71.3% (2172.9 Ha). Company has had a guideline for measuring soil erosion (No. Policy II-04/MRC-SOP/10) regarding the erosion control that in line with the applicable regulation (Government Decree No.150 in 2000). Monitoring activity is conducted by measuring soil erosion (using erosion poles method) that being installed in some sample spots. Company has monitored this activity and measurement in 2014 has been done in block B22. Angsana Estate has an erosion rate amount 202 mm (measured in April


ASSESSMENT REPORT


2013). Erosion pole has been observed during field visit. There is road maintenance program in 2013-1014. Company has heavy equipment to repair road, such as road grader 1 unit, Vibro compactor 1 unit and TLB 1 unit. Road maintenance schedule is based on: KKPA-4 Semi Detail Soil Survey Based on monitoring soil analysis result in KKPA-4 PT Sajang Heulang in each SPT, it shows the actual suitability level (marginal Suitable), however still has a potency to increase to become S1 (Highly Suitable) and S2 (Suitable). Main barrier in KKPA-4 is the status and the low availability of organic material. This condition comes from low rainfall rate, which stimulating basa cations wash, in addition, growth barrier factor and palm oil growth. Based on semi detail land topography map, KKPA-4 is flat area (sloping level is 0%-2%) so there is no need for special strategy in management for cultivating in sloping area by considering type of soil and local climate. There is road maintenance program map in 2013-2014, which states road repair program for access road, main road, collection road and disc road. Maintenance program is using 1 (one) unit road grader. Based on semi-detail soil survey, it has no peat area within PT. LSI operation area (Angsana Estate) and KKPA-4 (PT. SHE). Other strategy in maintaining marginal and critical soil are stated in final report document for semi detail soil survey, such as:

Soil fertility improvement by cultivating cover crop like Nephrolephis sp, empty fruit bunches application. Selective weeding, MOP fertilization with a dose of 2.5-3 kg/tree/year.

Fertilization management, such as: the effort to maintain nutrient balance especially unsure N, P and K as well as other fertilizers with a balance doze between plantation need and out-going nutrient through harvesting activity, sprout, leaching prevention, run-off and volatilities.

Maximizing fertilizer use efficiency, such as fertilization technic with a correct type, correct doze, correct time and place, selection of fertilizer type for instance slow release fertilizer.

Minimizing leaching and increasing water provision, especially for plintudults type (surface run off is easy to happen and potency of flooding), typic hapludults (so easy to be washed/leaching). Company takes some efforts such as location along water flow is closed to maintain water stock, each block location is designed with field drain with a ratio of 1:8 for water reservoir and preventing flooding; application for special organic material for soil with clay and sandy structure, mulching with empty fruit bunches.

Status: Complied

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

Company has a policy to maintain water quality and availability, such as: (1) avoiding chemical material utilization in the entire river buffer zone location and water sources, (2) restoring protection function from the entire riparian area that has been set as HCV area – 1 by rehabilitating riparian area with a broad of 50 meter from right and left of river (has been recorded in Memorandum Head Plantation Office – HPO No. POD-UM-061/IV/2010 on 8th March 2010). Based on document’s review, company has conducted management and maintenance over riparian area, such as:

- Vegetation cultivation like Mahoni tree, Meranti tree, Garu tree, Vertiver and Meranti tree - Delivering socialization on monitoring and management for conservation area like maintaining water sustainability,

vegetation, floral and wildlife, prohibition to damage forest, prohibition to burn trees, prohibition to electrocute fish and prohibition to haunt for its personnel & local community

- Marking buffer zone line with circle red/ yellow paint in palm oil tree for about 50 meters from left and right of river’s body.

However, based on field observation in Block J61 Division I KKPA-4, riparian area’s management is not in line with protection policy for sloping and river support area, which was issued by HPUI in December 2011, such as 50 meters from left and right side of river. Non-compliance No. 2014.05. This non-compliance may rise from lack of understanding on specific policy over riparian management. Observation on 03rd June 2014 Company has presented its curative actions in a form of minute of painting (50 meters from left and right of the river) in buffer zone area that in line with company’s policy No. 2 (minutes of painting activity on 08th May 2014). Then, non-compliance


ASSESSMENT REPORT


NCR No. 2014.05 is closed. In order to avoid same mistake in the future, company will monitor riparian management. Agar Company has some management forms in order to sustain water quality. One form of this management is by conducting examination for river’s water quality, such as for Sebamban River that located before mill and Sebamban River that located after mill. Laboratory of Commodity Examination & Environment – Research Centre and Industrial Standardization Banjarbaru – South Kalimantan, (LP-543-IDN) conducted the examination by refers to standard quality in Government Regulation No. 82 in 2001 (Class I). There were still parameters that exceeding NAB on river’s water that located before mill, like BOD5, COD, DO, Iron, Chloride, Phenol, and on river’s water that located after mill like BOD, COD, DO, Cd, Fe, Chloride, Nitrite as N, Total Coliform. Related to this finding, company has not been able to present evaluation evidence over these exceeding parameters. (Non-compliance No. 2014.06). This non-compliance may occur because company has not conducted evaluation over examination result that was exceeding the standard quality. Observation on 15th May 2014 Company has presented evaluation evidence over parameters that were exceeding the standard quality, which is recorded in LCPKS and PPA evaluation report. Parameters were above NAB due to mining activity in headwater and downstream of river that located ± 4 km from location of sample pick-up. Company has taken follow-up actions by monitoring quality of river’s water regularly, reporting and greening, installing prohibition board to throw garbage and waste to river’s body and building sedimentation pond/ absorption pond for managing mill’s sanitation waste water before flowing to river’s body. Then, non-compliance NCR No. 2014.06 is closed. Company can make preventive action by conducting monitoring over riparian management. Company also conducted drinking water’s quality examination in 2 locations, such as WTP & community’s well in Division 3, which stated in LH on 10th March 2014. The examined parameters were BOD5, DO, pH, NO3-N, Cl, SO4, & Zn based on standard quality from Ministry of Health Decree No. 416 in 1990. However, standard quality for these parameters was not in line with Ministry of Health Decree No. 492 in 2010 regarding the requirement for drinking water quality (non-compliance No. 2014.03). This non-compliance may rise because management has not received revision and latest standard quality for drinking water based on Ministry of Health Decree No. 492 in 2010. Observation on 15th May 2014 Company has presented the evidence for re-examination request for clean water quality No. 126/ASF/Int/V/2014 that refers to Ministry of Health Decree No. 416 in 1990 and delivered socialization to boil water. Company is still waiting the examination result from Baristan Laboratory ±1.5 months. Furthermore, non-compliance NCR No. 2014.03 is closed. Company can make preventive action by conducting examination over standard quality for drinking water that based on Ministry of Health Decree No. 492 in 2010. Company has conducted the examination over BOD effluent IPAL (outlet pond) which recorded in RKL/RPL implementation report for semester II period June – December 2013. Research Centre and Industrial Standardization Banjarbaru conducted the examination and the result shows that there is no parameters that exceeding the standard quality (< NAB). Based on interview with Environment Agency of Tanah Bumbu District, auditor found information that company has periodically submitting its IPAL effluent quality report and the examination result shows that it still tolerated. Furthermore, based on consultation with community’s leader in village, he mentioned that there were no complains related to environment pollution. Company has conducted monitoring over water utilization for Angsana POM as well as the analysed the efficiency of water utilization that recorded in water utilization monitoring report from January to June 2014. Total water utilization for period from January to June 2014 was amount 1.41 m3/ton FFB with budget of 1.66 m3/ton FFB.

Status: Complied

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

There is a record for latest integrated pest management program. For instance, pest and disease management document in March 2014. This program presents that each pest attack will be monitored based on its level and company has prepared controlling steps to manage each level of attack. Early warning system that has been implemented in pest management especially UPDKS is by cultivating beneficial plant. Number of Cassia obanensis cultivation in Block C11 is 78 spots in main


ASSESSMENT REPORT


road and 30 spots in collection road. However, based on document’s review, there is no sufficient evidence that company especially KKPA-4 has documented its integrated pest management.

Integrated pest management is stated in integrated pest management monitoring record and document of census recapitulation for fire caterpillar, pocket caterpillar, Oryctes rhinoceros, rat attack and boar attack in Angsana Estate and KKPA-4 Estate.

There are records for cultivation plan and cultivation realization that completed with cultivation map for beneficial plant like Turnera subulata, Casia cobanensis and Antogonon leptosus.

Barn Owl Box (BOB) map is available, for instance in Angsana Estate, there are 1 unit BOB in Block C25 and 2 units BOB in Block C24.

The company has documented the toxicity record in herbicide application: 1. Angsana Estate (chemist application path) in Block C009. There is herbicide usage (glyphosate) for amount 5 litre and

(methyl metsulfuron) for amount 300 gram for an area of 4 Ha. 2. KKPA-4 (chemis application patht) in Block L43. There is herbicide usage (glyphosate) for amount 0.96 litre and (methyl

ethyl metsulfuron) for amount 56 gram for an area of 4 Ha. Doze/ hectare are 470 cc/Ha glyphosate and 28 gram/Ha. Based on document’s review, company especially KKPA-4 has a limited evidence to proof its documentation over integrated pest management (PHT) program. Non-compliance NCR. No. 2014.07. This non-compliance may rise because during field visit, the integrated pest management (PHT) program has not been being documented. Based on curative evidence that was sent on 18th May 2014, KKPA-4 has presented the improvement evidence in a form of integrated pest census and program in 2014. Furthermore, non-compliance CAR No. 2014.07 is closed. Preventive action that can be taken is to monitor the documentation over integrated pest management (PHT) program.

Status: Complied

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

Based on document’s verification, company has using registered and licensed chemical material by pesticide committee from Ministry of Agriculture. For instance, Round up with an active Isopropyl amino glyphosate, which registered in pesticide committee with a registration number RI. 01030120001560. Utilization record for instance there is a work sheet for herbicide usage in Angsana Estate for spraying work by using Isopropyl amino glyphosate material in Block C015, planting year was in 2006. Been applied with 3 rotations/ year with a doze 0.12 litre/ha/application. Mr. Puji Sasmito (EM Angsana Estate) mentioned that PT. Ladangrumpun Suburabadi and PT. Sajang Heulang no longer using herbicide with an active paraquat material and this has been become a policy in Minamas Plantation Indonesia. Company has a commitment not to use paraquat, which based on memorandum from research department No: MRC/Controller/HPO/698/X/2008, on 4th November 2008 regarding the recommendation to replace an active paraquat material – Gramoxone within Minamas Plantation environment. Based on SAP data, physical mutation for central warehouse in Angsana Estate and KKPA-4 code 02.MB5B, audit didn’t find chemical material that being classified as type 1A or 1B WHO and paraquat. In document card for central warehouse stock in Angsana Estate since 26 th March 2014 and KKPA-4 since 1st April 2014, there is no chemical material that being classified as type 1A or 1B WHO and paraquat. Based on Manager Report /unit report from KKPA-4 estate in March 2014, there was no chemical material that being classified as type 1A or 1B WHO and paraquat. Company has applied chemical material based on target species. Form document’s verification, it can be seen that herbicide utilization has been in line with the target species. For instance, herbicide utilization with an active Isopropyl amino glyphosate, methyl metsulfuron and triklopir with a target broad-leaf weed or wooden are used to control weed in field. For instance in work item of chemist application path, chemist circle, harvesting path and grassland chemical spraying with an examined affectivity and efficiency doze by management unit in order not to exceed the standard doze for herbicide utilization (refers to indicator 4.5.2 and 4.6.2). There is a record for periodic medical examination for spraying personnel, fertilization personnel, mechanic, and warehouse


ASSESSMENT REPORT


personnel every 6 months. Company’s physician conducted the examination: Angsana Estate conducted medical examination on 12-14th February 2014 with a total 41 examined personnel. Gunung Sari Estate conducted medical examination on 17-18th March 2014 with a total 51 examined personnel. KKPA-4 conducted medical examination on 29th Marech 2014 with a total 25 examined personnel.

From field interview, audit concluded that spraying personnel have received an adequate training in herbicide application technic. Personnel able to explain and to demonstrate utilization technic for praying tools, mixing the doze, separate herbicide based on its target species as well as the utilization of PPE. Spraying personnel also well understand the side effect/ hazard of herbicide usage so they able to explain first aid in case of poisoning from herbicide. Field observation result over spraying personnel in Division 3 Block C 015, shows that medical examination has been periodically implemented (every 6 months), type of medical examination is general medical examination. Company has an SOP for storing pesticide package, revision 01 on 2nd January 2014. This procedure consist of: 1) incoming package is recorded in bin card, which points out amount and date of procurement, 2) pesticide should be stored in a safe place, separate from fertilizer, food material and water source, 3) each type of pesticide should be separately placed based on their group, 4) pesticide should be stored in sealed container and no leakage with a complete and clear information label, 5) during the storage, pesticide contained should be sealed, 6) the stored pesticide should be periodically monitored, and 7) pesticide package should be handed over to estate warehouse to be secured. Moreover, company also has an SOP for hazardous waste management and non-hazardous waste management on 04th March 2012, this procedure regulates the management for agrochemical waste and pesticide package by implement reuse and reduce sale it to licensed third party or re-utilized in an efficient way. Meanwhile for reuse is by re using it (for instance rinse water from knapsack wash can be reuse as water to liquid chemical material). Agrochemical material is categorized as hazardous waste based on SOP for PLB3 & BB3 on 04th March 2012. Based on document’s review & interview with personnel, hazardous waste was being managed with below methods:

- Store it in licensed temporary landfill - Hand over the hazardous waste to licensed collector, such as PT Harapan Sembilan - Hazardous waste is transported by using licensed transportation vehicle - Reporting hazardous waste balance and manifest every three-month to Environment Agency of Tanah Bumbu.

Based on field visit to agrochemical warehouse in estate and office in Division I KKPA-4, there are material safety data sheet (MSDS) and symbol/logo of hazardous material and poisonous, even though the storage is not properly done. However, based on field observation on Division I KKPA-4 office, audit found used pesticide packages that were stored in non-licensed warehouse. This finding is not in line with Government Decree No. 18 in 1999 regarding the hazardous waste management. Non-compliance CAR No. 2014. 08. This non-compliance may rise because during the visit, temporary hazardous waste storage in KKPA-4 is still under planning stage. Observation on 03rd June 2014 Company has pointed out its curative actions over hazardous waste management (pesticide packages) such as:

- Memorandum No. KKPA-4/Int/093/2/14/2 regarding the prohibition to store pesticide package in division warehouse. This memorandum also states that after spraying activity is done, then used pesticide package should be directly sent to licensed hazardous waste warehouse

- Socialization over prohibition to store pesticide package in Division I & III on 28th April 2014 (attendance sheet of 30 participants from Division I and 17 participants from Division III is available)

- Hazardous waste hand over (pesticide package) on 20th May 2014 from Division I to licensed temporary hazardous waste storage.

Furthermore, non-compliance CAR No. 2014. 08 is closed. Preventive efforts by conducting monitoring over hazardous waste balance (in and out) in licensed hazardous waste storage.

Status: Complied

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


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Head of Plantation Upstream Indonesia endorsed the latest policy for occupational health and safety in December 2011, which states: Plantation Upstream Indonesia commits to provide and maintain safe work environment by implementing an effective management in order to avoid work accident and un-healthy environment for its personnel, contractors/ vendors and visitors. In line with this policy, we will:

Obey Law and Government Regulation, which related with the applicable standard and guideline. Create occupational health and safety management system in each business unit/ department Formulate, establish, inform, implement and maintain safe work system in work place Deliver education, training and sufficient experience for the entire personnel to provide opportunity for them to work

in an effective and efficiency way Ensure occupational health and safety management is improved and continuously updated

Plantation Upstream Indonesia commits to perform its responsibility to avoid/ prevent work accident and to create harmonious work place, safe work place and healthy work place for the entire personnel. Contract personnel and visitors are responsible for occupational health and safety during their stay in company’s environment and continuously prevent work accident on their colleagues as well as protecting company’s assets. Record for occupational health and safety implementation in LSI, such as:

PT. LSI – ASE has submitted guiding committee for occupational health and safety (P2K3) report to Social, Manpower and Transmigration Agency on 18th March 2014 for period October-December 2013.

PT. LSI-GSE has submitted P2K3 three-month report IV (period October-December 2013) to Social, Manpower and Transmigration Agency with a detail of: P2K3 report, P2K3 organogram, occupational health and safety policy, recapitulation report for work accident, evaluation report over environment cleanness.

Record on fire extinguisher training, how to use fire extinguisher & leakage identification in LPG tank as well as the prevention on 24th January 2014. 79 housewives in ASF, ASE and GSE as well as 10 emergency response teams attended this training.

Monitoring record over ASE harvesting personnel’s discipline to use PPE in March 2014 Monitoring record for light fire extinguisher tools (APAR) in ASE for period March 2014 Monitoring record for work accident in ASE from July 2013 to March 2014. Monitoring record for work accident in KKPA-4 for period from January to March 2014, there was no accident Activity report/ company’s physician visit, which related to personnel hut hygiene evaluation in ASE environment on

30th March 2014 Safety briefing record in Angsana POM on 20th January 2014, this training was attended by 54 participants from

Angsana POM with subject like work procedure, driving safety and commemoration of national occupational health and safety month, HIRAC

Monthly monitoring record for light fire extinguisher tools (APAR) and first aid box in POM Angsana in March 2014 Angsana POM has submitted P2K3 report to Social, Manpower and Transmigration Agency on 09th January 2014 for

period October-December 2013 P2K3 organogram points out person in charge on occupational health and safety activity, for instance:

- ASF Manpower and Transmigration Agency of Tanah Bumbu District Decree No. 565/28/BNWS-WAS/2013 on 01st November 2013 regarding the endorsement of guiding committee for occupational health and safety (P2K3)

Periodic P2K3 meeting record, for instance P2K3 meeting on 11th December 2013 in Angsana POM was attended by 8 participants from P2K3 board with discussion topic: establishing committee for occupational health and safety 2014 commemoration activity, conducting examination over ambient air quality, noise and vibration, developing signs for occupational health and safety in personnel housing area, building special place or emergency response facility. Risk analysis record for occupational health and safety program us available, for instance:

1. Angsana POM. Risk analysis was created by identifying LK3 aspect and impact. There is a record for identification of source of hazard/ risk, impact/ risk analysis and impact/ risk control. For instance worm screw replacement activity hazard/ risk: being hit by spinning tools, identification over risk potency: injury, risk grading: low, existing control: give a tag out, put a mark of “being repaired”, installing warning sign

2. Angsana Estate: there is a record for hazard identification form and risk grading in ASE unit. For instance fertilizing


ASSESSMENT REPORT


activity with hazards such as fertilizer contamination, lung irritation, and risk: low, hazard/risk control: using mask.

There are records over first aid box hand over, such as: 1. KKPA-4:

First aid box hand over to supervisor’s team in each division on 17th April 2014 for amount 15 first aid boxes.

Checklist for fire extinguisher tools (APAR) examination on 19th April 2014, there were 16 units of APAR and entirely in a good condition.

2. Angsana POM:

Checklist for fire extinguisher tools (APAR) examination in April 2014, there were 39 APAR units of APAR and entirely in a good condition.

Checklist for first aid box examination in April 2014, there were 7 (seven) first aid boxes and entirely in a good condition.

3. Angsana Estate: Checklist for first aid box examination in April 2014, there were 47 first aid boxes and entirely in a good condition.

Non-compliance CAR No. 2014.09 Based on field observation, audit found several non-compliances such as APAR with red mark (pressure manometer is in low-pressure position) in KKPA-4 Division I workshop.

APAR was located in un-appropriate place (too high, about 2 (two) meters, which make it hard to reach) in Division I office, KKPA-4 housing and clinic. This is not in line with Manpower and Transmigration Ministry Decree No. 4 in 1980.

Based on field visit in ASE central workshop, auditor found first aid box contents are not in line with Manpower and Transmigration Ministry No. 15 in 2008 regarding first aid box in work place.

These findings might be happen because: During the visit, the empty APAR probably was not refilled. There was no socialization on first aid contain in KKPA-4 that in line with the applicable regulation

Observation on 30th April 2014 Company has presented its improvement evidence by refilling the empty APAR and change APAR location in a standard place (easy to reach). Observation on 15th June 2014 Company has presented improvement evidence for list of content and first aid box content in work place based on Ministry of Manpower and Transmigration Decree No 15 in 2008. Then, non-compliance CAR No. 2014.09 is closed. Preventive actions that can be taken:

Effective monitoring over periodic APAR examination and empty APAR refill. Monitoring over first aid box content that based on regulation (evidence attachment 4.7.6)

Status: Complied

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

There are training records. For instance:

KKPA 4: 1. Socialization training for harvesting personnel on 6th April 2014. Senior Assistant delivered this training with a subject

like PPE and appropriate and correct harvesting technic. 14 (Fourteen) participants attended this socialization. 2. Socialization training for manual team on 11th April 2014 by Assistant Division II. Subject of this socialization were

PPE utilization, Social Insurance (Jamsostek), leave right for pregnant and lactating female worker. 11 (eleven) participants attended this training.

Angsana Estate: 1. Safety Briefing on 7th February 2014 with harvesting personnel (24 personnel). Subject in this briefing was about

occupational health and safety within harvesting team and PPE (photos and attendance sheet are available) 2. Mutual work agreement (SPK) No. ASE/SPK-LKL/IV/2013/052 109/KKPA-4/SPK– LKL/IV/13 regarding the agreement

on FFB’s transportation from Angsana Estate to Angsana Factory with Mr. Adi Darmanto as contractor, contractor


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address in Dua River, Gunung Besar Village, Tanah Bumbu District. Article 14 regarding work safety point 2, each contractor unit is mandatory to have and to install safety net, and point 1, contractors area mandatory to comply the applicable occupational health and safety regulation in company, such as: a. The entire operators are mandatory to turn on vehicle lamp during the day in plantation area, b. The entire operators are mandatory to wear PPE (Helmet and safety boots). Article 1 explains unit’s responsibility to have driving licence (SIM).

Status: Complied

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

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

Based on document’s review and interview with Environment Agency of Tanah Bumbu District, PT. LSI has some documents, such as:

1. UKL/UPL that has been approved by Head of Standardization & Environment Centre for Environmental Impact Analysis Committee No.191/II/DAR-3/1999 on 22nd September 1999 with broad of area 6,095 Ha & capacity of 30 ton FFB/Hour in 1999 PT Ladangrumpun Suburabadi.

2. UKL/UPL that has been approved by Head of Environment Agency of Tanah Bambu District No. 660/89/IL/PDL-BLHD/2013 on 21st June 2013 by adding capacity from 30 Ton FFB/Hour to 60 Ton FFB/Hour PT Ladangrumpun Suburabadi in 2013. Company has improved document and complied environment permit, such as; 1) has had permit to store hazardous waste, permit to use plantation effluent, conducting impact management and has a responsibility to report environment monitoring to Environment Agency of Tanah Bambu District every 6 months.

Type of impacts that being managed & monitored: Social economic Air quality & noise Attitude and perception Community’s health Surface water quality Water and soil conservation Quality of effluent Problem over natural vegetation and wildlife

Company has periodically submitted environment management report to Environment Agency of Tanah Bumbu District on 24th April 2014. Important impacts from the implementation of RKL/RPL and the one that being reported to Local Environment Agency, such as:

1. Examination over boiler air emission 2. Examination over generator air emission 3. Noise examination 4. Vibration examination 5. Potency of fire 6. Problem over natural vegetation and wildlife 7. Community’s restlessness 8. Water and soil conservation 9. Quality of liquid & solid waste

Status: Complied

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

Politto conducted HCVA identification for PT LSI in January 2010. Record over this identification result is available. Identification result, which stated in final report mentioned that there was no protected species, rare species, endangered species been identified. Meanwhile the identified HCV within PT. LSI area was HCV 1.1. area that have and gives supporting


ASSESSMENT REPORT


function for biodiversity in protected or conservation area (riparian area) and HCV 4.1 area or important ecosystem as water source and flood control for community in downstream area (riparian area), one of them is located in Angsana Estate. There is a document of final report on high conservation values area’s identification in Cooperative Credit Primer for member (KKPA) PT. Sajang Heulang in 2012 as cooperation between PT. Sajang Heulang and Forestry Faculty of Bogor Agriculture Institute. Meanwhile the identified HCVs in KKPA-4 PT Sajang Heulang are HCV 3 = land that categorized in endangered, like mangrove ecosystem in riparian area in Block E60/61, HCV 4.1 = riparian area in Block H37/38, J37/38 and H39/40 and E60/61 and HCV 6 = cemetery in Block H41 and Block J60. Company through each estate has drafted appropriate methods to protect identified HCV area, such as HCV 1.1 and 4.1 in Ladangrumpun Suburabadi with below activities: 1. Drafting protection procedure for River’s Flow Area (DAS) number PM 0300 on 1st April 2010, management procedure

for conservation forest number PM 0500 on 1st April 2010, wild life management procedure number AI 0900 on 1st April 2010 and work instruction for flora and fauna inventorying No, 700/IK-PSQM-HCV/12 on 10th February 2012. There is no revision for drafted-procedures.

2. Head of Plantation Operations Memorandum No. POD-UM-061/IV/2010 on 8th March 2010, with instructions like below: marking trees along HCV 1.1. and HCV 4.1 area with yellow paint, not applied inorganic fertilization and spraying in marked palm oil trees, not cutting-off palm oil trees 50 meters from left and right of HCV 1.1 and HCV 4.1 area and gradually cultivating wooden vegetation and not open HCV area for new plantation area

3. Drafting annual program for HCV maintenance. HCV maintenance program in 2014, covers: marking palm oil trees, monitoring vegetation, monitoring wildlife, manual maintenance over disc, measurement over river’s water debit and monitoring over water quality

Based on document’s review over HCV management in Angsana Estate, it is known that company has marked 3 trees from right to left side of riparian area, photos for manual disc maintenance activity, cultivation monitoring and vegetation growth like bamboo, Meranti tree, Gaharu tree, Mahoni tree, jackfruit tree and Vetifier. There is also monitoring for buffer zone, which stated vegetation identification result, wildlife and fish (resurgences) in managed HCV area. Minute of water debit measurement and re-socialization for HCV area for surrounding villages are available. Based on field visit on 23rd April 2014 in Block E10 Angsana Estate, its known that company has managed HCV area by marking yellow paint in pam oil tree (5 trees from left to right side of riparian area), installing signboard and cultivating hard-wood vegetation. Based on document’s review, KKPA-4 PT Sajang Heulang not entirely drafts HCV management program as recommended in management report and HCV existence monitoring. However, KKPA-4 has had the management procedure for conservation forest (No. PP 0500) on 1st April 2012 and SOP for River’s Flow Area protection (No. PM 0300) on 1st April 2012 and monitoring over HCV 4.1. KKPA-4 does not have management program and monitoring program for areas that have been being identified as HCV 3 and HCV 6. This findings become non-compliance CAR No. 2014.10. This non-compliance may rise because company did not record the management program for HCV 3 and HCV 6 in KKPA-4. Observation on 11th May 2014 Company has presented the evidence of management plan and realization of HCV 3 and 6 through buffer zone maintenance, vegetation monitoring, signboard installation and measurement over water’s debit. Then, non-compliance NCR No. 2014.10 is closed. Preventive action that can be done is monitoring program and realization of HCV 3 and HCV 6 management in KKPA-4 Based on interview with Mr Moch Tri Yuwana (PSQM) and Mr Puji (EM Angsana), they told auditors that 5 trees from the left and right side of riparian area should not be applied with chemical fertilizer and pesticide. However, based on field visit to Block J61 Division I KKPA-4, the marked trees are 1- 2 trees from the side of river’s body. This finding is not in line with the river’s flow area procedure as well as interview with PSQM personnel. Angsana Estate – PT. LSI has installed information board and prohibition board related to illegal haunting and electrocute fish. This effort is part of company’s socialization as well as part of HCV management activity. There is a map for signboard installation in buffer zone area for amount 3 units of signboard in Block A010 and Block B011 Division I and Block E010 Division III. Monitoring checklist for signboard existence and condition is available. In 2013, this monitoring checklist was done every month and was continued until March in 2014. Prohibition board also installed in division offices and estate as well as the accessible place like personnel hut.


ASSESSMENT REPORT


In addition, Angsana Estate – PT. LSI also delivered re-socialization on HCV and company’s policy for wildlife, which followed by 40 harvesting and spraying personnel. This socialization was conducted on 6th July 2013 in division Gunung Sari Estate. Senior Assistant GSE as resource person. Attendance sheet, policy and photos are available. KKPA-4 PT Sajang Heulang has delivered socialization for HCV. Material of this socialization was introduction to wildlife, signboard installation, introduction to buffer zone, occupational health and safety socialization and PPE. 20 personnel from harvesting and spraying unit attended this socialization. This socialization was conducted on 3rd April 2013 in Division I KKPA-4 with Senior Assistant KKPA-4 as a resource person. KKPA-4 also had signboard installation map. Currently company has 9 units signboard installed in plantation area, in HCV location and in office. Based on interview with Senior Assistant KKPA-4 (Mr Supriyanto), it is know that company has installed signboard based on signboard installation map. However, based on field visit in Block J61 Division I KKPA-4, auditor did not find HCV signboard HCV as stated in signboard installation map. This finding becomes non-compliance CAR No. 2014.11. This non-compliance may rise because company does not have monitoring system for HCV staff as well as monitoring system for HCV signboard condition. Observation on 11th May 2014 Company has presented the evidence of missing signboard replacement (minutes of signboard, installation is available). Developed signboard map and sign board photo that have been installed for about 15 units of signboard in KKPA-4. Signboard installation result will be verified on next surveillance. Then, non-compliance NCR No. 2014.11 is closed. Preventive action: pointed HCV officer monitors HCV signboard regularly. Each estate has had special officer who responsible to monitor the above’s plan, based on: 1. Decree KKPA4-Int/04/II/2013 on 4th February 2013 for Mr Tri Agus Prasetyo 2. Decree ASA/Int/13/XI/018/s on 25th November 2013 for Mr Budi Setiawan OFI: Company has an opportunity to draft periodic training program for the entire HCV personnel.

Status: Complied

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

Company has conducted waste identification and management in order to reduce pollution, such as:

Source of Waste Name of Waste Type of Waste Management

Mill

Effluent Liquid Land application after BOD is in line with BM’s standard

Emitted gas Gas Periodic monitoring

Shell Solid Utilized as boiler fuel

Fibre Solid

Empty fruit bunches Solid applied to land as organic fertilizer

Used diesel fuel Liquid Stored in licensed temporary hazardous waste

storage & sent to licensed collector

Workshop

Used diesel fuel Liquid

Stored in licensed temporary hazardous waste storage & sent to licensed collector

Used accu Solid

Used filter Solid

Used majun fibre Solid

Oil can Solid

Warehouse

Herbicide package Solid Stored in licensed temporary hazardous waste storage & sent to licensed collector Used majun fiber Solid

Paper Solid Landfill

Sack Solid stored in temporary storage

Office Paper & leaf Solid Landfill

Based on field observation in KKPA-4 material warehouse, auditors found oil leakage and diesel fuel leakage in KKPA-4


ASSESSMENT REPORT


fuelling station. Non-compliance CAR No. 2014.12. This non-compliance may rise from the absence of reservoir to collect diesel fuel drop. Observation on 11th June 2014 Company presented improvement evidence for waste management (oil leakage) in diesel fuelling station, such as:

Documentation for oil trap establishment in diesel fuelling station and repair in diesel fuelling station area. Minutes of oil trap establishment and repair in diesel fuelling station area on 02nd May 2014 in KKPA-4.

Then, non-compliance CAR No. 2014.12 is closed. Preventive action can be done by establishing oil trap in diesel fuelling station. Unit POM & Estate have SOP for hazardous waste management, such as SOP for hazardous and non-hazardous waste management, 01 on 2nd January 2014. This procedure explains about the storage of hazardous waste (requirement to pack hazardous waste, procedure t store hazardous waste, requirement for hazardous waste warehouse, hazardous waste hand over to third party, and tips to reduce hazardous waste and non-hazardous waste). There are 4 steps to manage hazardous waste, such as (!) store hazardous waste in a licensed warehouse (Head of Environment Agency of Tanah Datar District Decree No. 660.4/112/BLHD/2013 with coordinate spot S 030 36’ 43,7” – Angsana POM, Head of Environment Agency of Tanah Bumbu District Decree No. 660/14/BLHD/2012 with coordinate spot S O30 37’ 10,4” – E 1150 36’ 13,2” – Angsana Estate and Head of Environment Agency of Tanah Bumbu District Decree No. 660/15/BLHD/2012 with coordinate spot S 030 38’ 51,3” – E 1150 36’ 45,1”- Gunungsari Estate; (2) Hand over hazardous waste to licensed collector, CV Sumber Alam Borneo and Larashatiku Environmental (Ministry of Environment Decree No. 180 in 2013, on 03rd June 2013 regarding the license to collect hazardous waste, PT Harapan Sembilan, valid for 5 years), (3) Transporting hazardous waste by using licensed vehicle (Directorate General of Land Transportation Decree No Aj. 309/29/007/DJPD/2013/35034021), and (4) reporting hazardous waste balance and manifest to Environment Agency of Tanah Bumbu Disrict. Based on document’s review over hazardous balance and field observation in temporary hazardous waste storage at Angsana and Gunung Sari Estate, auditors found used pesticide package like Sterin can 2,395 pcs, Ally/metafuron 596 pcs, Kenlon 245 pcs, ex Prima Up bottle111 pcs, Garlon 65 pcs, ex Metafuron can 8 pcs, ex Starane can 76 pcs, ex Kenlon can 125 pcs been stored > 90 days. Based on field observation, infectious waste from clinic has not been managed based on the applicable regulation. Non-compliance CAR No. 2014.13. These non-compliance may come from: 1. Producer of hazardous waste find it difficult to manage hazardous waste like chemical package, because hazardous

waste collector will reject the handover of waste if the quantity of waste is small. 2. The delay of transporting infectious waste from KKPA-4 clinic to central ASE was because the quantity of waste was

small. Observation on 03rd June 2014 Company has presented evidence of its improvement action on managing infectious waste in clinic, such as:

Requisition evidence to purchase waste bin (colour: red, yellow, and green) on 2nd April 2014 Documentation for waste bin red, yellow and green in KKPA-4 clinic (waste bin for infectious waste is completed with

plastic bag) Furthermore, non-compliance CAR No. 2014.13 is closed. Preventive actions such as: 1. Negotiation to make cooperation with third party (PT.Maju Asri Jaya) 2. Periodic monitoring over infectious waste delivery to central clinic in ASE every month at date 25 th Company has waste monitoring record, for instance:

Annual hazardous waste balance and hazardous waste manifest for Angsana Mill is available Report for fibre and shell usage for boiler fuel is available Land application report is available Empty fruit bunches application report is available

Status: Complied

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


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Mill unit has conducted monitoring for renewable energy like fibre and shell as fuel for boiler. For instance for period January – March 2014:

January 2014: fibre and shell usage amount 1,868,895 kg. Efficiency energy generating from the utilization of fibre and shell is 0.62 kWh/CPO

February 2014: fibre and shell usage amount 1,927,852 kg. Efficiency energy generating from the utilization of fibre and shell is 0.59 kWh/CPO

March 2014: fibre and shell usage amount 2,519,394 kg. Efficiency energy generating from the utilization of fibre and shell is 0.64 kWh/CPO

Mill unit has monitoring report for diesel fuel usage, which being recorded in diesel fuel usage data per ton processed FFB in mill for 2014, for instance:

January 2014: diesel fuel usage was 21,166 litre with budget 15,886 litre February 2014: diesel fuel usage was 17,564 litre with budget 15,886 litre March 2014: diesel fuel usage was 18,590 litre with budget 15,886 litre

Diesel fuel usage in mill’s unit for period January – March 2014 was above the budget, because processed FFB was above the budget and diesel fuel also used to lighting personnel house & in mill. However, in order to make efficiency for diesel fuel usage, Mill’s unit will maximize turbine usage before and after processing.

Status: Complied

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.

Company has a zero-burning policy (land preparation with no burning) that stated in land preparation procedure, part 3. SOP No. Policy 110/EST-ARM/08. SOP for sustainable palm oil plantation management with policy no: 724/TQEM-SPMS/09, point 5.7.2 regarding the zero burning technic, page 24-31 also strengthen SOP No. Policy 110/EST-ARM/08. Company has fire-monitoring report for ASE, GSE and KKPA-4 in March 2014 (fire inside and outside plantation area). In March 2014, there was no fire case. SOP fire prevention and SOP for fire extinguisher in 2010. SOP for field fire extinguisher, document No: 727/TQEM-ESH/10 on 1st April 2010, consist of: reference, definition, general information, person in charge, procedure, special condition, facility and administration, annexes.

Status: Complied

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

Company has a record for pollution & emission source in mill. For instance: land preparation generates CO2, fertilization produces CO2 and NO2, diesel fuel usage generates CO2, transportation generates CO2, processing FFB generates CO2 and POME generates CO2. Company has conducted monitoring over 6-months emission quality, which recorded in RKL/RPL implementation document in semester II for period July – December 2013 and has been being reported to Environment Agency of Tanah Bumbu District on 24th April 2014, for instance: - Examination over air emission (Boiler & Generator). Examination result highlights that parameters are still below

standard threshold (<NAB). - Examination over ambient air quality. Examination result points out that that parameters are still within standard

threshold (<NAB), with an exception for noise in the back yard of mill. Company has instructed its personnel to wear earplug when they work in the back yard of mill.

Company has conducted some efforts to reduce pollution and emission, such as:

- Implementing zero burning policy during land preparation - Using fertilized based on recommendation - Utilizing solid waste (shell & fibre as well as empty fruit bunches) - Reducing diesel fuel usage - Implementing land application


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- Conducting periodic examination over environment parameters However, based on field observation in division office and KKPA-4 housing as well as housing in Division III ASE, auditors found ashes from waste been burned in the backyard of Division I KKPA-4 office, in the side of warehouse and I front of housing in Division III ASE. Non-compliance No. 2014.14. This non-compliance may occur because personnel KKPA-4 does not care about waste burning prohibition. Observation on 03rd June 2014 Company has presented evidence of its effort to reduce pollution and emission, for instance: Purchase order for 16 pcs waste bin on 30th April 2014. Memorandum No. KKPA-4/Int/097/4/14/s on 28th April 2014 regarding the prohibition to burn waste in surrounding housing

and office area. Socialization on prohibition to burn waste in surrounding house and office area on 28 th April 2014 (attendance sheet for 1

participants is available) Then, non-compliance No. 2014.14 is closed. Preventive actions for the future are delivering further socialization and installing prohibition signboard for burning waste. Company has a procedure for effluent management; the generated effluent will be processed through aerobe – anaerobe before reutilized in land application. Angsana POM uses 8 (eight) processing ponds. To ensure the installation of effluent processing runs effectively, company examines effluent every month.

Status: Complied

PRINCIPLE #6 Responsible consideration of employees and of individuals and communities affected by growers and mills

6.1 Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate the continuous improvement.

Based on document’s review and interview with Environment Agency of Tanah Bumbu District, PT. LSI has environment & social impact document, which stated the positive and negative impact as well. For instance:

1. UKL/UPL that has been approved by Head of Standardization & Environment Centre for Environmental Impact Analysis Committee No.191/II/DAR-3/1999 on 22nd September 1999 with broad of area 6,095 Ha & capacity of 30 ton FFB/Hour in 1999 PT Ladangrumpun Suburabadi. Covers 1) social unrest because compensation is not in line with the implementation of land leasing, 2) vacant position is available as well as opportunity for business, and 3) change in community’s attitude and perception.

2. UKL/UPL that has been approved by Head of Environment Agency of Tanah Bambu District No. 660/89/IL/PDL-BLHD/2013 on 21st June 2013 by adding capacity from 30 Ton FFB/Hour to 60 Ton FFB/Hour PT Ladangrumpun Suburabadi in 2013. Covers 1) social economic, 2) attitude and perception, and 3) community’s health.

3. POLLITO conducted the social impact analysis document (SIA), in 2010. This document informs risk factor from social and economic in community. Company has conducted consultation with stakeholders including local community. For instance head of Sebamban Baru Village, Head of Banjar Sari Village, Head of Purwodadi Village, Head of Bayansari Village, and so forth that been recorded in public consultation book.

There is 16,000 ha plasma plantation with KKPA scheme (managed by Cooperative Tuwuh Sari), which involves 10,892 local community from 26 local villages, that consist of KKPA 1 (3,864 ha), KKPA 2 (3,792 ha), KKPA 3 (3,012 ha), KKPA 4 (2,676 ha), and KKPA 5 (2,656 ha). POLLITO conducted social study in 2010 and recorded company’s influence on community’s economic activity (such as plasma smallholders) from local money’s circulation from IDR 1,056,720,000 to IDR. 1,773,200,000/ month. The calculation based on 821 local personnel’s spending. KKPA members like those that Angsana Village, Karang Indah Village, Bakarangan Village, and Karangmulya Village got benefit from this KKPA scheme especially after KKPA enters harvesting age. Based on interview with Environment Agency of Tanah Bumbu District, company has submitted its RKL/RPL implementation


ASSESSMENT REPORT


document to Environment Agency of Tanah Bumbu District on 12th March 2014.

Status: Complied

6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties.

Angsana Esate – PT LSI has had a procedure for communication and consultation with local community No. KKM on 2nd April 2009. Logbook communication stated communication and consultation with local community. Mostly these records contain grant request, internship request, and infrastructure improvement request. KKPA-4 PT Sajang Heulang has communication procedure No. 704/TQEM-ESH/10, April 2012. However, KKPA-4 not able to present the evidence that this communication procedure has been well implemented. Nevertheless, KKPA-4 PT SHE not able to present record of this communication and consultation with local community. This finding becomes non-compliance NCR No. 2014.15. This may occur because company has not well documented the communication and consultation with local community. Observation on 11th June 2014 Company has presented improvement evidence in a form of aspiration and response recapitulation in 2014. Then, non-compliance NCR No. 2014.15 is closed. Every consultation between company and community should be documented in information request logbook as a preventive action. List of Angsana Estate Stakeholders has been update in March 2014, which consist of:

List of name and address for stakeholders from national government : 8 institutions

List of name and address for stakeholders from provincial government: 10 institutions

List of name and address for stakeholders from District government: 12 institutions

NGO, cooperatives, university and other companies : 9 institutions

Head of Sub-district & high school : 13 villages and schools

Community’s leader : 6 people

Contractor : 3 people List of KKPA-4’s stakeholders consist of:

List of name and address for stakeholders from national government : 8 institutions

List of name and address for stakeholders from provincial government: 10 institutions

List of name and address for stakeholders from District government: -

NGO, cooperatives, university and other companies: 6 institutions

Head of Sub-district & high school : 22 villages and schools

Community’s leader : 12 persons Angsana Estate – PT LSI has a record for community’s aspiration, which stated in communication logbook. However, this logbook mostly consists of grant request, infrastructure improvement request and internship request, like internship request from High School Kusan on 1st January 2014. Company has accepted 4 internships. Company also had responded community request to build worship venue in High School Angsana on 17/6/13. KKPA-4 PT SHE does not able to show record over community’s aspiration. Logbook consist of complain and work-related proposal like transport cost request, safety shoes request and so forth. This is not in line with indicator request and communication procedure No. 704/TQEM-ESH/10. This is become a non-compliance CAR No. 2014.16. This can be happen because company has not documented the consultation process. Observation on 11th June 2014 Company has presented improvement evidence in a form of aspiration and response recapitulation in 2014. Then, non-compliance NCR No. 2014.15 is closed. Every consultation between company and community should be documented in information request logbook as a preventive action. Angsana Estate – PT. LSI and KKPA-4 PT. SHE have had person in charge to conduct communication as stated in


ASSESSMENT REPORT


communication procedure. This person is Estate Manager.

Status: Complied

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

Angsana Estate – PT. LSI and KKPA-4 PT. SHE have transparent procedure to accept complain as stated in:

SOP No 005/LSI-PKM/14 on 1st January 2014 related to community’s complain management (RSPO/6.3/PKM)

SOP No. 006/LSI-PKK/14 on 1 January 2014 related to personnel’s complain management (RSPO/IN 6.5/PKK) Angsana Estate – PT. LSI and KKPA-4 PT. SHE have recorded the entire complains in complains in logbook. Mostly, these complain come from personnel and the issues were related to improvement for housing facility. OFI: there is an opportunity for company to evaluate personnel complain logbook, which has not put the date and mechanism to handle complain. Angsana Estate – PT. LSI and KKPA-4 PT. SHE have an identification procedure and land leasing procedure that stated in:

SOP identification and land leasing standard No. 001/PSD-L&AS on 3rd June 2011. Land leasing document is available for land: 250 m2, community from Sumber Sari Village that in line with the applicable procedure.

SOP for land leasing No. 343/PSD-OKU/10 on 23rd February 2012. For period 2013-2014, there was no claim over land within KKPA-4’s area.

Status: Complied

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.

Land leasing procedure number 343/PSD-OKUP/11 on 23rd February 2012. This procedure explains some stages, such as: 1). Before release payment, company need to make minutes of negotiation process, 2). Payment for land leasing should be known by stakeholders (for instance: Head of Sub-district and Head of Village, and so forth, 3). Payment should be released after supporting documents (agreement, land leasing letter, invoice, recapitulation of leasing and leasing map) have been signed by owner (land leasing receiver), representative from company, Head of Sub-district/PPAT, Head of Village, and Head of Neighbourhood/ RT. During the surveillance, there was no claim over land within Angsana Estate or KKPA-4 area for the last 2 years or within the claim process.

Status: Complied

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.

Related to salary, company makes a revision over salary in 2014 to make it in line with Kalimantan Selatan Governor Decree No: 188.44/0595/KUM/2013 regarding the sectorial minimum wage for Kalimantan Selatan Province on 24 th December 2013 that set the sectorial minimum wage is IDR. 1,675,000,- (One Million Six Hundred Seventy Five Thousand Rupiah). In addition, to ensure the salary has been paid in line with government regulation, company also made an internal memo from General Manager HRM on 3rd February 2014. Based on document’s review over personnel salary list, salary payment has been in line with the applicable regulation. Personnel salary amount IDR. 1,675,000,- excluded the payment for overtime, premium and allowances. There is a mutual work agreement for period 2012-2014. However, this document has been expired on 23rd February 2014. Negotiation over mutual work agreement for next period has been conducted on 13th March 2014. Minutes of consolidation/ pre-agreement mentions that stakeholders (company and personnel) agreed to extend mutual work agreement in 2012-2014. This work agreement has been expired on 23rd February 2014. Furthermore, stakeholders also agreed that the entire regulations on this mutual work agreement are still valid. After consolidation, company and personnel agreed to review the


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mutual work agreement. Stakeholders make an agreement on 15-17th April 2014 in Hotel Savoy Hofmann Bidakara, Bandung. Both parties agreed upon some regulations, however remaining some regulations are still not agreed ye. Further agreement meeting will be conducted 1 month after previous meeting. Company provides public facility that can be accessed by personnel. This can be found in public facility layout. For instance: Angsana Estate

Housing Type G-1 6 units


Cooperative 2 units

Education Facility Kindergarten (1 unit), Elementary School (1 unit)

Worship Facility 2 units

Sport Facility : 3 units (soccer field, volley field etc)

Warehouse, Workshop and Fuel Station

Childcare Service 2 units

Central Polyclinic 1 unit KKPA-4 Estate


Housing type G-5 4 units


Sport Facility 2 units of volley ball field

Worship Facility 1 unit mosque

Personnel Hall 1 unit

Warehouse, Workshop and Fuel Station In addition, company also provides facility like clean water and transportation to pick and drove student. Based on document’s review, work agreement between company and contractor has been complied manpower regulation. For instance: regulation about payment and occupational health and safety, such as:

Work agreement letter for transporting Angsana Estate’s FFB No: ASE/SPK-LKL/III/2014/022 on 25th February 2014 at article 7, which explains the obedience toward manpower regulation

Work agreement letter for transporting KKPA-4 Estate’s FFB No: KKPA-4/SPK-LKL/I/14/031 on 26th January 2014 at article 7, which explains manpower insurance; article 8 explains regulation for occupational health and safety as well as regulation for manpower insurance.

Status: Complied

6.6 The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel.

Similar to surveillance 2, KKPA PT. SHE management has had the guidelines for sustainable palm oil plantation (No. Policy 724/TQEM-SPMS/09) at point 5, social policy related to freedom to establish worker union. There is also mutual work agreement for period 2012-2014, in article 8 point 1 states that company acknowledges worker union as a legal organization that represents and act on behalf of the entire personnel/ its member. Organogram for worker union, such as:

1. Angsana Estate: Organogram for worker union has been recorded in Manpower Agency of Tanah Bumbu District with No. 565/05/OPP/Naker on 18th March 2014, with structure: Chairman = Mr Maliki, Secretary = Mr Eko Kirstina with 4 members

2. Organogram for worker union has been registered in Manpower Agency of Tanah Bumbu District with No. 565/06/OPP/Naker on 21st March 2014, with structure: Chairman = Mr Sukram, Secretary = Mr Eko Purwitanto with 10 members.

3. Angsana POM: Organogram for worker union, Chairman = Mr Asmail, Vice-chairman = Mr Mawardi Ismail, Secretary


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= Mr Ridwan Hanif, Treasury = Ms Nuriyanti.

Status: Complied

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

Personnel age requirement is stated in mutual work agreement for period 2012-2014 Chapter IV regarding work relationship at article 16 regarding the recruitment, point 1.2.2 that states: personnel should comply age requirement, which is at least 18 years old during recruitment or have been married. There is a record for recruitment request in April 2014, this record states personnel’s date of birth and date of hire, for instance:

Zaenal Abidin: date of birth 10th December 1972 (age 42 years old) as Cutter.

Rondiyati: date of birth 15th January 1991 (age 23 years old) as Fertilization Clerk.

Status: Complied

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

There is a guideline for sustainable palm oil plantation management, Policy No. 724/TQEM-SPMS/09, on 27th August 2010 page 13 from 31, point 1 states that “the entire personnel should be fairly treated related to recruitment, promotion, work condition and description with no discrimination against race, social status, ethnicity, gender, skin colour, disability, sexual orientation, organizational membership, political view, religion and age. There is a memorandum for personnel’s promotion on 10th June 2011, from Head of Plantation Upstream Indonesia, number: 333k-HRM-VI-11, promotion for staff and non-staff: consist of 1. Reason for promotion, 2. Requirements for promotion, 3. Process, 4. There are annexes: promotion form for staff and non-staff, as well as recapitulation for trainee. Based on document’s review: “list of personnel in KKPA-4 2014” recruitment has been done with no discrimination, as personnel are come from different ethnicity and background.

Status: Complied

6.9 Policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied.

Head of Plantation Upstream Indonesia signed gender policy in April 201, which states: “Plantation Upstream Indonesia will try to prevent sexual harassment and other type of crimes toward female, worker and community”. Mutual work agreement/ company’s policy 2012 – 2014 stated regulations such as: maternity leave in article 33 point 1 maternity/ miscarriage leave, point 2 personnel are entitle of their full payment during taking the leave, article 34 point 1 part 1.6 for menstruation leave: 2 days. There is an evidence for implementation of protection over female reproductive right, for instance Ms Nipen and Ms Nasriati (spraying personnel) took 2 days leave in March 2014 and she received full payment that based on her salary, IDR. 1,675,000.

Status: Complied

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

FFB’s price document for February 2014 (525/803/ PUPPH-2), which has been set by Plantation Agency of Kalimantan Selatan Province in February 2014. Plantation Agency of Kalimantan Selatan Province set the price of FFB based on stakeholders meeting. Plantation Agency of Kalimantan Selatan Province, Economic Bureau of Kalimantan Selatan Province, Industrial and Trade Agency, Cooperative and Small Medium Enterprise Agency, Chairman of GAPKI/GPPI Kalimantan Selatan Province, company’s representative and member/ representatives from smallholder cooperatives attended the meeting. The highest piece was IDR 1,856.26.- and the lowest price was IDR 1,359.37.-


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FFB pricing meeting was conducted by involving stakeholders like smallholders’ representative, representative form nucleus-plantation/ estate and representative from related institution. FFB price will be announced transparently through cooperative, nucleus company as well as village office. There is a list for FFB’s price in March 2012 in a form of matrix, which consists of information about CPO price based on plantation age (cultivation year) and so forth. Company and contractor have presented the evidence that all party understood the agreement and this contract is considered fair, legal and transparent. For instance: a. Agreement between company and contractor (Ramli Ali), like in KKPA-4 Estate that stated in work agreement letter

No.BGE/SPK-LKL/II/2014/018-TBS and empty fruit bunches on 1st February 2014 that has been agreed by both parties b. KKPA-4: work agreement letter to transport palm oil fruit on behalf of Mr H. Usman with work agreement letter No. KKPA-

4/SPK-LKL/II/14/098 Gunung Sari Estate:

- There is work agreement letter with GSE (EM Manager) for transporting palm oil fruit/ FFB, No SPK GSE/SPK-LKL/XII/2014/026, issued in February 2014.

- There is a payment receipt for “recapitulation report for plasma plantation management in Angsana Village” for period 2012/2013 with payment mechanism: plasma plantation management report is signed by head of cooperative/KUD, Treasury KUD, SM KKPA, GM KKPA, SGM KKPA and Head of Plantation and being sent from management unit to head of office. Furthermore, based on this report, GM KKPA will instruct head of treasury to release the payment for KKPA through cooperative/ KUD bank account.

Status: Complied

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

Company’s contributions toward local development, such as:

Empowering local contractor for plantation operation activity

Providing work opportunity for local community surround plantation area

Developing palm oil plantation for local community surround plantation area

Tax payment for vehicle (cars and bikes, which support plantation activity)

Status: Complied

PRINCIPLE #7 Responsible development of new plantings

7.1 A comprehensive and participatory independent social and environmental assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations.

Not Applicable During surveillance-3, there was no replanting activity within Gunung Sari Estate, Angsana Estate, Pantai Bonati Estate and KKPA-4 Estate operation area. Latest cultivation was for adding new scope within KKPA-4 area in 2006. Latest cultivation within Angsana Estate operation area was in 2007 – 2008, which was conducted in HGU area and not in HCV-identified area as well as not in forest-identified area.

Status: Complied

7.2 Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations.

Not Applicable During surveillance-3, there was no replanting activity within Gunung Sari Estate, Angsana Estate, Pantai Bonati Estate and KKPA-4 Estate operation area. Latest cultivation was for adding new scope within KKPA-4 area in 2006. Latest cultivation within Angsana Estate operation area was in 2007 – 2008, which was conducted in HGU area and not in HCV-identified area


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as well as not in forest-identified area.

Status: Complied

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.

Based on potential map HCV 1 & 4 palm oil plantation area PT. LSI and areal statement map PT. LSI in 2011/2012 there is no new cultivation in HCV locations. Latest cultivation in 2008 for 36.62 Ha area was in Division I Angsana Estate Block A015, not in HCV-identified area. Based on field visit over HCV area, its known that areas been identified as HCV 1 & 4, were located in Sebamban 1 River (cultivation year 1998) and Sebamban 2 River (cultivation year 1996). Broad of each HCV area are 31.51 Ha in Sebamban 1 River and 64.29 Ha in Sebamban 2 River. Based on field visit, these HCV area have been completed with signboard, yellow paint on palm oil tree as buffer zone (50 meters), campaign for not to apply chemical material and hard-wood vegetation and bamboo cultivation.

Status: Complied

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

Not Applicable During surveillance-3, there was no replanting activity within Gunung Sari Estate, Angsana Estate, Pantai Bonati Estate and KKPA-4 Estate operation area. Latest cultivation was for adding new scope within KKPA-4 area in 2006. Latest cultivation within Angsana Estate operation area was in 2007 – 2008, which was conducted in HGU area and not in HCV-identified area as well as not in forest-identified area.

Status: Complied

7.5 No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

Not Applicable During surveillance-3, there was no replanting activity within Gunung Sari Estate, Angsana Estate, Pantai Bonati Estate and KKPA-4 Estate operation area. Latest cultivation was for adding new scope within KKPA-4 area in 2006. Latest cultivation within Angsana Estate operation area was in 2007 – 2008, which was conducted in HGU area and not in HCV-identified area as well as forest-identified area.

Status: Complied

7.6 Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements.

Not Applicable During surveillance-3, there was no replanting activity within Gunung Sari Estate, Angsana Estate, Pantai Bonati Estate and KKPA-4 Estate operation area. Latest cultivation was for adding new scope within KKPA-4 area in 2006. Latest cultivation within Angsana Estate operation area was in 2007 – 2008, which was conducted in HGU area and not in HCV-identified area as well as forest-identified area.

Status: Complied

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

Not Applicable During surveillance-3, there was no replanting activity within Gunung Sari Estate, Angsana Estate, Pantai Bonati Estate and


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KKPA-4 Estate operation area. Latest cultivation was for adding new scope within KKPA-4 area in 2006. Latest cultivation within Angsana Estate operation area was in 2007 – 2008, which was conducted in HGU area and not in HCV-identified area as well as forest-identified area. .

Status: Complied

PRINCIPLE #8 Commitment to continuous improvement in key areas of activity

8.1 Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.

Company conducts environment and pollution management, such as: Examination over boiler air emission and generator (refers to indicator 5.1.2) Examination over noise in mill (refers to indicator 5.1.2) Examination over vibration (refers to indicator 5.1.2) Fire potency (refers to indicator 5.1.2)

Mr Moch. Tri Yuwana conducted internal audit on 27-28th January 2014. There were 8 non-compliances been identified, which consists of 7 non-compliances related to document’s review and 1 non-compliance related to field visit. 7 non-compliances have been revised meanwhile non-compliance related to safety guard for compressor machine in Traksi Angsana Estate is under repair.

Status: Complied


ASSESSMENT REPORT


3.2 Summary of Assessment Report of Supply Chain

Clause (Module D) CPO Mills – Segregation Requirements

1 Documented Procedures

1.1

The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following:

a) Complete and up to date procedures covering the implementation of all the elements in these requirements.

b) The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the facilities procedures for the implementation of this standard.

Angsana Mill – PT LSI had a procedure and technical guideline to ensure the entire elements related to supply chain implementation. For instance:

1. SOP for product and product traceability identification in PT. Ladangrumpun Suburabadi Minamas Plantation Number RSPO/502/SPC-LSI/03/13 Revision 1 on 01st March 2013.

2. Palm oil mill’s technical guideline-I, II and palm oil administrative procedure, which consist of: Fruit acceptance No. 110/POD-FAC/07, sterilization No. 110/POD-FAC/07, striping No. 110/POD-FAC/07, digesting No. 110/POD-FAC/07, pressing No. 110/POD-FAC/07, clarification No. 110/POD-FAC/07, separation between shell and fibre No. 110/POD-FAC/07, kernel station No. 110/POD-FAC/07, oil palm storage No. 110/POD-FAC/07.

3. Person in charge to implement these requirement, such as:

Angsana Mill Manager stores and maintains the entire raw material documents and records, supporting materials on production process and end-product quality, conducts verification over product status to buyer based on invoice, DO, sales contract and sign delivery order together with buyer and provides sufficient training for entire personnel regarding supply chain and its stages: raw material acceptance, production process, product storage and delivery from mill to buyer.

Plantation Sustainable Quality Management (PSQM) Assistant examines FFB’s quality in mill, prepares daily recapitulation, supervises palm product loading process and its transport and witnesses the process of developing minute of CPO and palm kernel order.

Laboratory Assistant analyses and examines raw material and product quality in the entire stages of production in mill. Sores, maintains and distributes analysis result and examination result to related stakeholders

Assistant/ Senior Assistant/ Bulking Manager is in charge on transportation of CPO and PKO product from mill to bulking station.

Status: Complied

1.2

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

Angsana Mill – LSI had a written system for accepting and processing certified FFB such as: a. Delivery order (stamp with RSPO certificate) b. Weighing ticket (stamp with RSPO certificate) c. FFB quality examination report (stamp with RSPO certificate) d. SIME Weight program application, which explain the origin of FFB (Division, harvesting block, cultivating year, number

of bunches) e. Monthly product recapitulation document for RSPO certified and non-certified (June 2012-June 2013) and since July

2013 Angsana Mill only produced CPO with RSPO-certified. The entire processed FFB in Angsana mill comes from RSPO-certified estate, which is PT. LSI (Gunung Sari Estate, Angsana Estate and Pantai Bonati Estate) and PT. Sajang Heulang (KKPA-4 and KKPA-5).


ASSESSMENT REPORT


Status: Complied

2 Purchasing and goods in

2.1

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

From June 2012 to June 2013, Angsana Mill has presented document for verifying volume of certified and non-certified FFB in separation document for certified and non-certified RSPO product. From 6th July 2013 to 23rd April 2014, Angsana Mill has presented document for FFB’s volume (RSPO-certified) Angsana Mill PT.LSI has implemented segregation model on its supply chain model. The entire incoming FFB to Angsana POM has been certified with RSPO standard, so Angsana Mill does not have to put RSPO-certified stamp.

Status: Complied

2.2

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

From 6th July 2013 to surveillance 3 (23rd April 2014), Angsana Mill claimed 35,725.54 ton (59.7% from claim) CPO product and 7,622.73 ton (57.8% from claim) kernel product. The generating production is still under projected CPO and PK product.

Status: Complied

3 Record keeping

3.1

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

Company has developed and stored the entire documents and reports in soft copy form, using System Application Program (SAP), SIME Weight program and hard copy (FFB delivery order, weight ticket, delivery order) is stored in administration room in Angsana Mill.

Status: Complied

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

Angsana Mill-LSI has set storage duration and presented records for FFB’s acceptance up to oil storage in storage tank. For instance: daily report, incoming and processed FFB’s data, mill’s utilization, product quality and CPO and Kernel capacity, o il quality in storage tank, CPO and Kernel’s delivery order and process control report document for 5 years. The entire records and reports have been well stored in Angsana Mill Office.

Status: Complied

3.3 The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and palm kernel meal on a three-monthly basis.

Angsana Mill has recorded the entire FFB’s acceptance (RSPO certified) as well as CPO and Kernel sale with 3-month basis. Recapitulation record for certified-FFB acceptance and CPO and Kernel sale is available, for instance for period October-December 2013 and January-March 2014. Angsana Mill accepts entire certified-FFB from 6th Juliy 2013 to 23rd April 2014 (during surveillance 3)

Status: Complied


ASSESSMENT REPORT


3.4 The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts, e.g. *product name*/MB or Mass Balance. The supply chain model used should be clearly indicated.

Available documents, such as: 1. Sales Contract for CPO sale No. 00273/LSI/KTR-MKS/LOK/III/2014 on 19th March 2014, which consist of:

a. Buyer’s name and address b. Name of commodity c. Quality d. Quantity e. Price f. Delivery date g. Payment h. Price before tax i. Price after tax

2. Sales Contract for PK sale No. 00137/LSI/KTR-IKS/LOK/IV/2014 on 4th April 201, which consist of: a. Buyer’s name and address b. Name of commodity c. Quality d. Quantity e. Price f. Delivery date g. Payment h. Price before tax i. Price after tax j. Delivery order number (DO)

The entire sales contract documents are marked with RSPO-segregation certified label.

Status: Complied

4 Sales and goods out

4.1

The facility shall ensure that all sales invoices issued for RSPO palm oil delivered include the following information:

(a) The name and address of the buyer

(b) The date on which the invoice was issued

(c) A description of the product, including the applicable supply chain model (Segregated)

(d) The quantity of the product delivered

(e) Reference to related transport documentation

Company has issued invoice, which consist of: 1. invoice No. 00510/LSI/III/2014 on 25th March 201, which consist of:

(a) Buyer’s name and address (b) Invoice date (c) Sales contract number (d) Delivery order number (DO) (e) Product description, product volume, unit price and total price Related transportation reference is stated in Delivery Order.

2. Invoice No. 00512/LSI/IV/2014 on 31st March 2014, which consist of: (a) Buyers’ name and address (b) Invoice date (c) Sales contract number (d) Delivery order number (e) Product description, product volume, unit price and total price


ASSESSMENT REPORT


Related transportation reference is stated in Delivery Order.

However, Angsana mill has limited evidence that it has put the applicable code of supply chain model stamp for the entire related document as required by product identification and product traceability procedure in PT. Ladangrumpun Suburabadi Minamas Plantation (No. RSPO/502/SPC-LSI/03/13 Revision 1 on 01st March 2013 Declaration 2 and supply chain certification requirement, like delivery order document (DO). Delivery Order (DO) document that has been sent to Jakarta office did not have an explanation whether the product was certified and or used segregation supply chain model. DO only consists of: product name, quantity, FFA, M & I, trader name, buyer’s name, basis, loading harbour, un-load harbour, ship name and loading plan. For instance, DO No. 00351/00275/04/14/L-LSI-MKS (non-compliance CAR No 2014.17). This non-compliance may occur because DO document has not regularly stated/ marked the supply chain model. Observation on 18th May 2014 Company has presented the evidence that the entire DO document was marked with segregation supply chain model as well as monitoring evidence for issuing DO document. So, non-compliance NCR CAR. No 2014.17 is closed. Preventive action: regularly put RSPO-segregation supply chain stamp on the entire DO’s document. OFI: Angsana Mill has an opportunity to verify supply chain training to its replacement personnel (mutation) like Mr Ngadimin (Processing Assistant).

Status: Complied

5 Processing

5.1

The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oil is kept segregated from non certified material including during transport and storage and be able to demonstrate that is has taken all reasonable measures to ensure that contamination is avoided. The objective is for 100 % segregated material to be reached. The systems should guarantee the minimum standard of 95 % segregated physical material9; up to 5 % contamination is allowed.

Angsana Mill had a procedure for product identification and product traceability in PT. Ladangrumpun Suburabadi Minamas Plantation (No. RSPO/502/SPC-LSI/03/13 Angsana Mill has produced RSPO-certified FFB. In case there is a non-certified FFB, PT. Sajang Heulang claimed had physically separated RSPO-certified and non-certified RSPO. Separation was conducted from fruit acceptance process to oil storage and not mixed certified and non-certified product more than 5 %, so buyers know that their product is 95% RSPO-certified.

Status: Complied

5.2

The facility shall provide documented proof that the RSPO certified palm oil can be traced back to only certified segregated material.

Angsana Mill has presented its documented-evidence for treatable CPO and Kernel RSPO-certified product. Some supporting documents, such as: a. Angsana Mill’s daily production report, which explains:

Processed FFB

Utility

CPO production and quality

Kernel production and quality

CPO dispatch

Kernel dispatch

Empty fruit bunches production

Shell production

Generated waste

number and origin of accepted-FFB


ASSESSMENT REPORT


FFB’s quality

water usage

Losses oil, unstrapped bunches, nuts

Stock and quality of CPO in bulking station

Stock and quality of CPO in Mill’s storage

CPO stock

Kernel stock

Kernel stock and quality in mill

Fibre and shell production

CPO and kernel shipping data b. CPO and kernel shipping document c. Working Sheet for Oil Extraction (Ritchie and Beseet) d. Working Sheet for Kernel Extraction (Ullage) e. FFB Receive Detail Report By Supplier f. Weight Ticket g. FFB Delivery Ticket Based on document’s review over production report/ daily processing, CPO and kernel production are traceable up to supplier’s estate. The entire documents have been well recorded and stored by Angsana Mill.

Status: Complied

5.3

In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that:

The crush operator conforms to these requirements for segregation

The crush is covered through a signed and enforceable agreement

Not Applicable; Angsana Mill, LSI only sale palm kernel and make does not have cooperation with kernel crushing plant.

Status: Complied

6 Training

6.1

The facility shall provide the training for all staff as required to implement the requirements of the Supply Chain Certification Systems

LSI has conducted training on supply chain from FFB’s acceptance to oil palm dispatch in a form of Supply Chain Mill raining Program. Training for PT Ladangrumpun Suburabadi Angsana Mill on 23rd April 2013 was conducted at Angsana Mill meeting room with 9 participants from Angsana Mill PT.LSI personnel. Training documents are well stored in Angsana Mill Office. SCCS training is planned to be conducted every year and for 2014 will be conducted in July 2014. Mr Muhamad Tri Yuwana (PSQM/ESH) and Mr Achmad Efendi (for marketing session) are person in charge to deliver SCCS training. OFI: Angsana Mill has an opportunity to verify supply chain training with replacement personal like Mr Ngadimin (As processing Assistant).

Status: Complied

7 Claims

7.1 The facility shall only make claims regarding the use of or support of RSPO certified oil palm products that are in compliance


ASSESSMENT REPORT


with the RSPO Rules for Communications and Claims.

LSI claim RSPO-certified product based on RSPO Communication and Claim Standard RSPO Supply Chain 2011. Process to claim certified product LSI is using E-trace by UTZ.

Status: Complied


ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use

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

X or√

S-3 Angsana POM – PT Ladangrumpun Suburabadi have a permit to use the certificate no. MUTU-

RSPO/006a LSI √

Status: Complied

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

X or√

S-3 Angsana POM – PT Ladangrumpun Suburabadi does not use logo neither on the product nor off-product

√

Status: Complied

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

X or√


√

Status: Complied

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

X or√


√

Status: Complied


ASSESSMENT REPORT


3.4 Summary of RSPO Partial Certification.

Name of organization: PT Guthrie Pecconina Indonesia (KKPA Sungai Jernih).

2.1

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

X or√

Some evidences for regulation compliance such as: 1. Legal ownership over land based on Law No. 5 in 1960 regarding the agrarian principle,

such as HGU certificate No. 664/2003, 552/2003 for 10,139.91 ha area. 2. Providing social insurance for personnel, like Jamsostek (social insurance) that based

on Law No. 3 in 1992. 3. Providing occupational health and safety equipment is for personnel based on Law No. 1

in 1970. 4. Has a progress record for developing environment management document (RKL/RPL)

based on Law No. 23 in 1997. 5. Land preparation with zero burning approach based on Law No. 18 in 2004. 6. No discrimination over personnel based on Law No. 21 in 1999 – ILO ratification against

discrimination that stated in mutual work agreement. 7. Allocating some part of protected area as a conservation area based on President

Decree No. 32 in 1990 and Law No. 41 in 1999 regarding forestry. (Aksenta conducted HCV identification in July 2012).

8. The amount of salary is above regional minimum wage. Related to company’s compliance toward land ownership regulation, implementation of environment management, environment and social management, protection for personnel, report submission to some institutions/ agencies (for instance: Environment Agency of Musi Banyuasin District, Local Government in Musi Banyuasin District, and Plantation and Forestry Agency in Musi Banyuasin District), auditor can conclude that GPI has presented its obedience and consistency to comply the applicable regulation.

Status: Complied

2.2

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

X or√

Location permit based on Reagent Musi Banyuasin Decree No. 262 in 2011 for 4,000 ha area. Location permit based on Reagent Musi Banyuasin Decree No 0217 in 2011 for 2,000 ha area. Deciding 262 plasma smallholder candidates based on Reagent Musi Banyuasin Decree No. 0258 in 2010. Work agreement with cooperative/ KUD Sinar Delima No. 001/Plasma/GPI-KUD/I/2012 related to palm oil plantation development with KKPA scheme (Cooperative Credit Scheme/KKPA). Plasma Plantation Business Permit (IUP) based on Reagent Musi Banyuasin Decree No. 0265 in 2010 (Nucleus Estate 800 ha and Plasma 1,200 ha in Gajah Mati Village, Sungai Keruh Sub-district) and Plantation Business License based on Reagent Musi Banyuasin Decree No. 282/KPTS/IUP/DISBUN/2011 (nucleus estate 1,600 ha and Plasma 2,400 ha). Plantation area’s distribution plan has been set and waiting for cooperative approval to distribute the plasma holder. Minutes of land hand over from landowner and ownership acknowledgement letter are available. For instance minutes of land handover on behalf of Aziz Ali and ownership acknowledgement letter on 9th July 2007 for 2.8 ha land that is known by head of Gajah Mati Village and ownership acknowledgement letter No. 593/126/2009/XII/2008 on behalf of Aziz Ali for 2.8 Ha land in Gajah Mati Village on 24th February 2008 that has been submitted to Sub-district office on 3rd December 2008.


ASSESSMENT REPORT


Status: Complied

6.3

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

X or√

There is a procedure for consultation and communication with community (RSPO/6.3/PKM), personnel complain management (RSPO/6.5/PKK) and conflict resolution (RSPO/2.2/PK) with participation from local community surround estate are, such as: (1) Talang Piase Village (14 th May 2011); (2) Sub-village III Talang Ilo (27th May 2011); (3) Napal Village (29th May 20110); (4) Karang Ringin II Village (26th May 2011); (5) Rantau Kasih Village (13th May 2011). Socialization activity record consists of date, venue, material, photos and attendance sheet. Effective method for conflict resolution, in time and correct method are regulated in flow chart of complain management mechanism, with below flow: complain from internal and external will be accepted by head of division for recording, furthermore this record will be submitted to manager for issuing final decision or need to be consulted with head of department before making final decision. Complain from personnel can be processed less than 2 days (from complain being submitted to final decision/ resolution), meanwhile duration to process complain from community will be based on type of complain. If the complaint is categorized as brief complain and facility to solve the issue is available, then the duration only takes 3 working days, but if the issue is moderate up to heavy and need to be consulted to capital management, then the duration can take less than 1 week. Complaints from community are recorded in community complain logbook Procedure to identified and calculated compensation over legal right lose or traditional right lose is stated in SOP for conflict resolution (RSPO/2.2/PK). There is no revision over mechanism to calculate compensation – similar to previous surveillance result.

Status: Complied

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.

X or√

Procedure to identified and calculated compensation over legal right lose or traditional right lose is stated in SOP for conflict resolution (RSPO/2.2/PK), which has been socialized. The entire conflict resolution evidences are available in location, such as minutes of land handover from landowner and ownership acknowledgement letter. Minutes of land hand over from landowner and ownership acknowledgement letter. For instance minutes of land handover on behalf of Aziz Ali and ownership acknowledgement letter on 9th July 2007 for 2.8 ha land that is known by head of Gajah Mati Village and ownership acknowledgement letter No. 593/126/2009/XII/2008 on behalf of Aziz Ali for 2.8 Ha land in Gajah Mati Village on 24th February 2008 and has been submitted to Sub-district office on 3rd December 2008

Status: Complied

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.

X or√

AKSENTA conducted HCV identification in July 2011. This document ensures that there is no HCV area being used for developing new KKPA’s plantation.

Status: Complied

7.5

No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

X or√

Procedure to identified and calculated compensation over legal right lose or traditional right lose is stated in SOP for conflict resolution (RSPO/2.2/PK). There is no revision over mechanism to


ASSESSMENT REPORT


calculate compensation – similar to previous surveillance result. Minutes of land hand over from landowner and ownership acknowledgement letter are available. For instance minutes of land handover on behalf of Aziz Ali and ownership acknowledgement letter on 9th July 2007 for 2.8 ha land that is known by head of Gajah Mati Village and ownership acknowledgement letter No. 593/126/2009/XII/2008 on behalf of Aziz Ali for 2.8 Ha land in Gajah Mati Village on 24th February 2008 that has been submitted to Sub-district office on 3rd December 2008. Plasma plantation scheme was developed under the agreement between Sinar Delima Cooperative (smallholders’ group) and PT GPI based on mutual work agreement No. 001/Plasma/GPI-KUD/I/2012 related to palm oil plantation development with KKPA scheme (Cooperative Credit Scheme). Deciding 262 plasma smallholder candidates based on Reagent Musi Banyuasin Decree No. 0258 in 2010.

Status: Complied

7.6

Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements.

X or√

Minutes of land hand over from landowner and ownership acknowledgement letter are available. For instance minutes of land handover on behalf of Aziz Ali and ownership acknowledgement letter on 9th July 2007 for 2.8 ha land that is known by Head of Gajah Mati Village and ownership acknowledgement letter No. 593/126/2009/XII/2008 on behalf of Aziz Ali for 2.8 Ha land in Gajah Mati Village on 24th February 2008 that has been submitted to Sub-district office on 3rd December 2008.

Status: Complied


ASSESSMENT REPORT


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

3.5.1 Identification of Findings, Corrective Actions and Observations at Surveillance-02 Assessment

No. Ref Std Potency of Non-compliance Area Deadline Request for Corrective

Actions Observation and Date Status

Closing Date

2013.

01

Major

4.8.1

Load Lift Operator Training Program. Based on interviews with operators becho loader division 2 GSE (on behalf of Asmari), He is not have SIO as evidence of competency and SIO training program are not available

Gunung Sari Estate

July, 3rd 2013

Company must comply training programs and the realization for employees in accordance with their competence in each position

May 3rd, 2013

LSI, GSE have made training program for heavy equipment operator (lifting and transport) in September 2013, It will be observed by team auditor against fulfillment of the training plan (indicator 4.8.2)

Close with

observation

May 3rd, 2013

2013. 02

Major 5.1.1

Analysis Impact Documents Environmental document (EIA) PT LSI

has been revoked and deemed invalid

based on Decree of Regional

Environmental Agency Tanah Bumbu

district Number 660/44/BLHD/2012 dated

May 2nd, 2012 about revocation based on

Decree of Tanah Bumbu Regency No. 380

year 2010 about eligibility Plantation and

mill activities and of PT Ladangrumpun

Suburabadi, Angsana subdistrict, Tanah

bumbu district, South Kalimantan Province

POM July, 3rd 2013

Company must have valid document of environmental impact and approved according to regulation

PT LSI has been shown valid documents from state minister for the environment No.B-5459/Dep.I/LH/PDAL/05/2013 dated May 10th, 2013 about Clarification Environmental Document PT Ladangrumpun Suburabadi that explained environment document to PT LSI (UKL-UPL) No.191/II/DAR-3/1999 remain valid, but improvements to the fulfilment of environmental documents in accordance with the regulations (DELH) because LSI POM capacity has been upgrade to 60 tons / hour.

Process improvement and compliance with new environmental document will be observed by team auditor on the next visit.

Closed June 2nd, 2013

2013. 03

Minor 5.2.1

Effectiveness HCV socialization There is not sufficient evidence that socialization was effective, based on interviews results with workers (harvesters,

Gunung Sari Estate

S-3 Company must ensure and re-evaluate of HCV Socialization for

June 2nd, 2013

LSI has shown evidence of re-socialization of HCV understanding and animal species are protected to



ASSESSMENT REPORT




Closing Date

fertilizers, sprayers). They do not understand what kind of animals are protected as in the sign board that installed by company.

effectiveness 17 spraying workers in Division III Gunung Sari Estate on May 16th, 2013 in the form of documents and photos. The understanding of HCV and animal species are protected will be observed in next surveillance visit

2013.

04

Minor

5.3.1

Implementation of Hazardous Waste Management Plan

Based on review documents of hazardous

waste monitoring and balance, also field

observations was known that the company

did not manage hazardous waste in

accordance with applicable SOP (SOP No

RA 012) about hazardous waste

management, that are not appropriate

include:

Fabric rags in GSE did not store in the

hazardous waste temporary warehouse

Hazardous waste except batteries stored in the hazardous waste temporary warehouse more than 90 days

POM S-3 Companies must conduct hazardous waste management in accordance with SOP and regulations

May 3rd, 2013

LSI (Gunung Sari Estate) has evaluated identification sources of waste and its management by setting the fabric rags as hazardous waste so it managed in accordance with the rules and not dumped into landfills. It supported by an Gunung Sari Estate management statement letter Management dated May 2nd, 2013 about hazardous waste management (fabric rags) according to the rules June 2nd, 2013 LSI has shown evidence of socialization fabric rags collection as hazardous waste to employees on May 29th, 2013 at Gunung Sari Estate. The Evidence presented in form of documents of socialization list and photos. It will be observed by team auditor during the next surveillance visit.



ASSESSMENT REPORT


3.5.2 Identification of Findings, Corrective Actions and Observations at Surveillance-03 Assessment



Closing Date

2014.01 Major 1.2.1

Type of information/ document that can be accessed by stakeholders Based on document’s review (SOP for information provision and memo on SOP for company’s information response – Angsana Estate), it is known that there are no legal documents and environment documents that can be accessed by stakeholders.

Mill and Estate

23 June 2014

Company have to ensure the handed-document to stakeholder is based on RSPO requirement.

Root Cause: No revision/ update over SOP for information provision related to legal and environment document. Problem Solving: Observation on 18th May 2014 Company has presented its improvement by setting type of document that can be accessed by stakeholders and issuing SOP for information provision. Preventive Actions: Internal Audit

Closed 18th May 2014

2014.02 Major 2.1.1

Compliance over applicable and related legal requirement Based on document’s review, company did not able to present its compliance over applicable and related legal requirement: a. Paramedics not entirely have follower hyperkes

training based on Ministry of Manpower Decree No. 1 in 1979 regarding the mandatory company hygiene and occupational health and safety training for paramedics

b. Driving license for operator (SIO) like:

Welder based on Ministry of Manpower Decree No. 2 in 1980 regarding the qualification for welders.

Mill and Estate

23 June 2014

Company must present its compliance evidence toward the applicable regulation and law

Root Cause: 1. Proposal for hyperkes training

has been submitted by company’s physician on 18th October 2013 Letter No. 006/PS-GAE/X/2013, currently under process in HRM.

2. There is no welder being identified to follow training

3. Lack of understanding on first aid content based on Manpower and Transmigration Ministry Decree No. 15 in 2008

4. Lack of understanding on

Closed 15th May 2014 and 15th June

2014


ASSESSMENT REPORT




Closing Date

Operator for power and production vehicle based on Ministry of Manpower Decree No. 4 in 1985.

c. Content of first aid box not inline and similar to requirement as stated in Manpower and Transmigration Ministry Decree No. 15 in 2008 regarding the first aid in workplace.

d. Activity report for managing fire in field based on President Decree No. 4 in 2001.

e. Standard quality for drinking water is not in line with Ministry of Health Decree No. 492 in 2010 regarding the requirement for drinking water quality.

f. Does not have shower eye wash and alarm in temporary hazardous waste storage based on Environment Agency of Tanah Bumbu District Decree No. 660/15/BLHD/2012 on 27th Feb 2012.

Government Decree No. 4 in 2001

5. Management has not received an update and latest regulation for drinking water quality based on Ministry of Health Decree No. 492 in 2010, LHU does not in line with ASF request.

6. Delay on shower eye installation. Problem Solving: Observation on 15th May 2014 company has presented its compliance evidence toward the applicable regulation, for instance: 1. Evidence in a form of hyperkes

training plan for the entire paramedic in PT. LSI and SHE that was conducted on 9-11th June 2014.

2. Recommendation letter for welder class III No. 566/01/Disnakertrans/2013 on behalf of Mr Hairudin.

3. There is an improvement evidence over field fire delivery order for Plantation Agency

4. Request for drinking water re-examination no. 126/ASF/Int/V/2014, which based on Ministry of Health Decree No. 416 in 1990. Company is waiting


ASSESSMENT REPORT




Closing Date

for the examination result from Baristan Laboratory (±1.5 months) and conducting socialization to boil water

5. Documentation on shower eye washes and alarm installation in temporary hazardous waste storage that based on Environment Ministry Decree no. 14 in 2013.

Observation on 15th June 2014 Company has presented the improvement evidence over first aid box content and list of first aid box content in work place based on Manpower and Transmigration Ministry Decree No 15 in 2008. Preventive Actions:

a. Conducted hyperkes training for paramedics PT.LSI-PT.SHE on 4th June – 9th June 2014 based on memorandum from GM HRM No.165-HRM-i1-V-14

b. Monitoring over driving license completeness on entire working units.

c. Monitoring on periodic examination over first aid box content

d. Monitoring on field fire


ASSESSMENT REPORT




Closing Date

prevention activity (every 6 months)

e. Revision over regulation change

f. Field observation

2014.03 Major 2.1.2

Evidence over company’s effort to comply regulation’s change Based on document’s review and field observation, some changed-regulations have not been implemented in company’s operation. For instance:

Examination parameter for drinking water quality is still using Ministry of Health Decree No. 416 in 1990.

The utilization of hazardous waste symbols and label are still using Bapedal Decree No. 5 in 1995.

Mill and Estate

23 June 2014

Company have to ensure that operation regulation has been in line with every changed-regulation.

Root Cause: a. Management has not received

update or revision over drinking water quality regulation based on Ministry of Health Decree No. 492 in 2010

b. Not updating latest regulation Problem Solving: Observation on 15th May 2014 Company has presented its compliance evidence over changed-regulation. For instance:

a. Request for re-examination over drinking water quality No. 126/ASF/Int/V/2014 based on Ministry of Health Decree No. 492 in 2010. Company is waiting for the examination result from Baristan Laboratory (±1.5 months) and presented the evidence of socialization to boil water through memorandum No. 39/LSI-ASF/V/12 on 1st May 2012.

b. Documentation over hazardous



ASSESSMENT REPORT




Closing Date

symbols and labels is based on Environment Agency Decree No 14 in 2013 as well as evaluation checklist for PT LSI-SHE estate and mill regulation.

Preventive Actions: a. Examination over drinking water

quality that based on Ministry of Health Decree No.492 in 2010

b. Updating symbols and labels in temporary hazardous waste storage.

2014.04 Minor 2.1.1

Evidence over written system, which consists of information about legal and regulation requirement that have to be complied by plantation company Based on document’s review, company has had regulation list that have to be complied by company, however company has lack of evidence that this regulation list has been updated in accordance to its change.

Mill and Estate

ASA-04 Company have to ensure that list of regulation has been updated.

Root Cause: company did not updating its regulation list as well as the evaluation over company’s compliance in 2014 Problem Solving: Observation on 18th May 2014 Company has presented evidence of its improvement efforts by updating company’s regulation list on regulation compliance evaluation-document. Preventive Actions: Periodically updating the regulation-compliance evaluation



ASSESSMENT REPORT




Closing Date

2014.05 Major 4.4.1

Protection over water flow and wet lands, including to protect and to maintain riparian area before and after replanting. Based on field observation in block J61 Division I KKPA-4, auditors found that the management for riparian area was not in line with HPUI protection policy for sloping area and river’s support area, in December 2011, which is 50 meters from left and right side of river.

Estate 23 June 2014

Company should ensure protection over riparian area to be in line with HPUI protection policy for sloping area and river’s support area.

Root Cause: Lack of understanding on riparian area’s management policy Preventive Actions: Observation on 03rd June 2014 Company has presented its revision over minutes of painting activity (50 meters from right and left side of river’s body as buffer zone) that in line with company’s policy No. 2 (minutes of painting activity is available, 08th May 2014 Preventive Actions: Monitoring over riparian’s management.

Closed 03rd June 2014

2014.06 Minor 4.4.2

Record over the implementation of water management program Based on document’s review, company doesn’t able to present evaluation evidence over Sembaban River water examination parameters that were exceeding the standard threshold like suspension residue, BOD5 and Chloride.

Estate ASA-04 company have to present the evaluation evidence over exceeding parameters for Sembaban River’s water like suspension residue, BOD5 and Chloride based on Government Decree No. 82 in 2001

Root Cause: No evaluation being conducted over river’s water exceeding examination parameters. Problem Solving: Observation on 15th May 2014 Company has presented the evaluation evidence over river’s water exceeding examination parameters that was recorded in LCPKS and PPA evaluation report. Exceeding parameters were generated in riverhead water and downstream (± 4 km from sample



ASSESSMENT REPORT




Closing Date

pick-up location). Company’s follow up actions are conducting periodic monitoring for river’s water quality, submitting report, greening, installing prohibition board to throw rubbish in to river’s body and build sedimentation pond for treated effluent management before throw into river’s body. Preventive Actions: Monitoring over riparian management.

2014.07 Major 4.5.1

Documented and latest integrated pest management program Based on document’s review, company has limited evidence that company has documented integrated pest management program (especially KKPA-4)

Estate 23 June 2014

Company must present the evidence that it has documented the integrated pest management program.

Root Cause: During field visit, integrated pest management program has not documented yet. Problem Solving: Observation on 18th May 2014 Based on improvement evidence that has been sent on 18th May 2014, KKPA-4 has presented the improvement evidence in a form of integrated pest census and pest management program in 2014. Preventive Actions: Company is suggested to make regular monitoring and to record integrated pest management

Closing 18th May 2014


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Closing Date

program.

2014.08 Major 4.6.4

Agrochemical waste Based on field observation in Division I KKPA-4 office, auditors found used pesticide packages were kept in non-licensed warehouse.

Estate 23 June 2014

Company must present the evidence that hazardous waste management has been in line with Government Decree no. 18 in 1990 regarding the hazardous waste management.

Root Cause: During the visit, temporary hazardous waste in KKPA-4 was under planning stage. Problem Solving: Observation on 03rd June 2014 Company has presented its improvement actions over hazardous waste management (used pesticide package), such as:

- Memorandum No. KKPA-4/Int/093/2/14/2 regarding the prohibition to store used pesticide package in division warehouse. This memo also instructs personnel to store used pesticide package in licensed hazardous warehouse.

- Socialization on prohibition to store used pesticide package in Division I & III on 28th April 2014 (attendance sheet for 30 participants orang from Division I and 17 participants from Division III is available )

- hazardous waste hand over (used pesticide package) on 20th May 2014 from Division I to licensed temporary hazardous



ASSESSMENT REPORT




Closing Date

waste storage Preventive Actions: Monitoring over out-going hazardous waste balance and in-coming hazardous waste balance in licensed temporary hazardous waste storage.

2014.09 Minor 4.7.6

Company’s compliance evidence over occupational health and safety equipment and first aid kits in work place. Based on visit to housing in KKPA-4 and workshop, auditors found fire extinguisher tool with below condition:

Pressure manometer was in a low pressure.

Fire extinguisher was located in a too high (hardly reachable) that not in line with Manpower and Transmigration Ministry Decree No. 4 in 1980.

Based on field visit in ASE central workshop. Auditors found the content of fist aid box was not in line with Manpower and Transmigration Ministry Decree No. 15 in 2008 regarding first aid box in work place.

Estate and Mill

ASA-04 Company have to ensure that first aid kits have been in line with the applicable regulation.

Root Cause:

During the visit, fire extinguisher was empty and not refilled yet

no socialization over first aid box content in KKPA-4 (based on this regulation)

Problem Solving: Observation on 30th April 2014 Company has presented its improvement actions, such as:

- Refilled the empty fire extinguisher and put fire extinguisher in a reachable place based on Manpower and Transmigration Ministry Decree No. 4 in 1980.

Observation on 15th June 2014 Company has presented the improvement evidence over list of first aid box content in work place, which based on Manpower and Transmigration Ministry Decree No.

Closed 30th April 2014 and 15th June

2014


ASSESSMENT REPORT




Closing Date

15 in 2008. Preventive Actions:

Periodic monitoring over fire extinguisher check and fire extinguisher refill.

monitoring over first aid box content, based on regulation (annex 4.7.6)

2014.10 Major 5.2.2

Protection for ecosystem with high conservation value Based on document’s review, KKPA-4 does not have HCV 3 and HCV 6 management program based on identification result over HCV within KKPA PT. Sajang Heulang area (in cooperation with Bogor Agriculture Institution).

Estate 23 June 2014

Company should have HCV 3 and HCV 6 management program based on management and monitoring plan.

Root Cause: HCV 3 and HCV 6 management program within KKPA-4 were not well documented. Problem Solving: Observation on 11th May 2014 Company has presented evidence for HCV 3 and HCV 6 management program and implementation through buffer zone maintenance, vegetation monitoring, signboard installation and measurement over water debit. Preventive Actions: Monitoring program and realization for HCV 3 and HCV 6 management program in KKPA-4.


2014.11 Minor 5.2.1

Monitoring over sign board HCV Based on document’s review and field observation in Block J61 Division I, KKPA-4 neither performed

Estate ASA-04 Company should able to present its monitoring and evaluation over signboard

Root Cause: The absence of monitoring over HCV officer (who is in charge to monitor



ASSESSMENT REPORT




Closing Date

monitoring nor evaluation over signboard existence. existence. signboard existence). Problem Solving: Observation on 11th May 2014 Company has presented replacement evidence for missing signboard (minutes of signboard, installation is available). Develop signboard map and photos for 15 units of installed-signboard in KKPA-4. Preventive Actions: HCV officer should periodically monitors HCV signboards.

2014.12 Major 5.3.2

Waste management in order to avoid pollution Based on field observation in KKPA-4 warehouse, auditors found oil and diesel fuel leakage in diesel fuelling station.

Estate 23 June 2014

Company should present evidence that waste has been managed based on Government Decree. No. 74 in 2011 regarding the hazardous waste management.

Root Cause: The absence of reservoir to collect diesel fuel leakage. Problem Solving: Observation on 11th June 2014 Company has presented the improvement evidence over waste management (oil leakage) in diesel fuelling station, for instance: Documentation over oil traps

installation in diesel-fuel station area.

Minutes of oil trap installation and repair in diesel-fuel station area on 2 May 2014 in KKPA-4.

Closed 11th June 2014


ASSESSMENT REPORT




Closing Date

Preventive Actions: Oil trap has been available in diesel fuelling station.

2014.13 Minor 5.3.1

Hazardous Waste Management 1. Based on document’s review and field

observation in temporary hazardous waste storage in Angsana Mill, auditors found hazardous waste packages that have been stored for more than 90 days.

2. Based on field observation in KKPA-4 clinic, auditors found that infectious waste management from clinic activity has not been in line with the applicable regulation.

Estate ASA-04 Company should present the evidence of hazardous waste management has been in line with Government Decree No. 18 in 1999.

Root Cause: 1. Hazardous waste producer

has an obstacle to send hazardous waste package to third party because the volume (quantity) of hazardous waste is too small.

2. Delay on delivery of infectious waste from KKPA-4 clinic to ASE central warehouse due to small quantity.

Problem Solving: Observation on 03rd June 2014 Company should present improvement evidence over infectious waste management, such as: Purchase order for waste bin red,

yellow and green on 02nd April 2014.

Documentation for red, yellow and green waste bin in KKPA-4 clinic (infectious waste bin was completed with plastic bag)



ASSESSMENT REPORT




Closing Date

Preventive Actions: 1. Conducting negotiation to

make cooperation with third party (PT.Maju Asri Jaya)

2. Periodically monitor the delivery of infectious waste to ASE central clinic every date 25 (consecutive month)

2014.14 Minor 5.6.1

Documentation over company’s effort to reduce pollution and emission Based on field observation in division office and housing in KKPA-4 as well as housing in Division III ASE, auditors found the trace of waste been burned in the back yard of Division I KKPA-4 office, on the side of warehouse and in front of housing in Division III ASE.

Estate ASA-04 Company should present the evidence of its efforts to reduce pollution and emission.

Root Cause: Lack of awareness over prohibition to burn waste among KKPA-4’s personnel Problem Solving: Observation on 03rd June 2014 Company has presented its efforts evidence to reduce pollution and emission, for instance: Purchase order for waste bin

(16 units) on 30th April 2014. Memorandum No. KKPA-

4/Int/097/4/14/s on 28th April 2014 regarding the prohibition to bun waste in surrounding office and housing area.

Socialization on prohibition to burn waste in surrounding office and housing area on 28th April 2014 (attendance sheet of 17 participants is available).



ASSESSMENT REPORT




Closing Date

Preventive Actions: Further socialization and installation of prohibition to burn waste signboard.

2014.15 Major 6.2.1

Procedure and documentation for communication and consultation with community. Lack of evidence that KKPA-4 has recorded the entire consultation with community based on communication procedure No. 704/TQEM-ESH/10.

Estate 23 June 2014

Company should record the entire consultation and communication with community.

Root Cause: Consultation and communication with community did not well documented. Problem Solving: Observation on 11th June 2014 Company has presented the improvement evidence in a form of aspiration and comment’s recapitulation in 2014. Preventive Actions: Every consultation with community has been documented in information request logbook.


2014.16 Minor 6.2.2

Follow up over community’s aspirations Limited evidence that KKPA-4 has recorded community’s aspiration and followed it up as regulated in communication procedure No. 704/TQEM-ESH/10.

Estate ASA-04 Company should record every aspiration from community as well as their follow-up actions.

Root Cause: Consultations with community have not been well documented. Problem Solving: Observation on 11th June 2014 Company has presented the improvement evidence in a form of aspiration and comment’s



ASSESSMENT REPORT




Closing Date

recapitulation in 2014. Preventive Actions: Every consultation with community has been documented in information request logbook.

2014.17 SCCS 4.1 of

Module D

Codification for supply chain model Lack of evidence that Angsana Mill has put codification or the applicable supply chain model on the entire related-document in identification procedure and product traceability No. RSPO/502/SPC-LSI/03/13 on 1st March 2013 annex, declaration 2 and certification requirement for RSPO supply chain like delivery order document.

Mill 23 May 2014

Company should ensure the entire related-document has codification or stamp based on product identification procedure and product traceability No. RSPO/502/SPC-LSI/03/13 on 1st March 2013.

Root Cause: DO document has not regularly stamp with supply chain model Problem Solving: Observation on 18th May 2014 Company has presented the evidence of supply chain codification in every DO document and company has periodically monitored DO document issuance. Preventive Actions: Put RSPO-segregation supply chain model in every DO’s document regularly.



ASSESSMENT REPORT


3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 Major 1.1.2

Company is suggested to provide information like date of response for the incoming information request and to ensure validity of document by unit manager.

2 Minor 5.2.2 Company has an opportunity to draft periodic training program for the entire HCV officer.

3 Minor 6.3.1 Company has an opportunity to evaluate personnel complain logbook, which has not put submission date and procedure to manage complaint.

4 SCCS 6.1 Angsana Mill has a chance to verify supply chain training for its replacement personal like Mr Ngadimin (Processing Assistant).

3.5.4 Noteworthy Positive Components

No Ref Std Descriptions

1 Company earned Hazard Analysis and Critical Control Point (HACCP) certificate.

2 Company has been being collaborating with local community to manage palm oil plantation through KKPA scheme.


ASSESSMENT REPORT


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

Issue from Public (Institution / NGO / Community)

Management Responses Auditor Response

Industrial, Trade, Cooperative and Small Medium Enterprise Agency of Tanah Bumbu District. Positive and negative comment: 1. Company has not reported production regarding the related-

industrial permit. 2. There are aspirations from plasma plantation smallholder related to

company’s lack of transparency over production of plasma plantation, like production cost and so forth.

3. Company has no problem over manpower. Company applies and obeys the entire manpower regulation.

1. PT. LSI Angsana Mill never

submitting its production report to Industrial, Trade, Cooperative and Small Medium Enterprise Agency of Tanah Bumbu District, however Jakarta Capital Office has sent 6-month capital infestation activity report to Capital Infestation Coordination Bureau (annexes area attached). In the future, we will coordinate with Minamas Jakarta Office regarding to form of production report, which need to be sent to Industrial, Trade, Cooperative and Small Medium Enterprise Agency

2. Actually, company’s transparency is clear enough, because company makes plasma plantation report) every month and send it to Cooperative Tuwuh Sari and

In general, production report has been submitted to Indonesian Investment Coordinative Board of Tanah Bumbu as regulated in Head of Indonesian Investment Coordinative Board and Ministry of Agriculture Decree No. 26 in 2007 and Ministry of Agriculture Decree No. 98 in 2013. Auditor will verify company’s efforts to submit report to Industrial, Trade, Cooperative and Small Medium Enterprise Agency of Tanah Bumbu District. Based on consultation with Cooperatives which has a cooperation with PT LSI, there was no production cost transparency issue been arisen. Based on document’s review, there was no information request related to production cost information. However, this finding will be followed-up in the next surveillance, especially in consultation with cooperative. Company is expected to increase and maintain its good relationship with stakeholders.


ASSESSMENT REPORT




PI (Independent supervisor) in each village.

Social, Manpower and Transmigration Agency of Tanah Bumbu District Positive and negative comment: 1. Company has submitted its manpower report every year 2. Communication between company and Social, Manpower and

Transmigration Agency of Tanah Bumbu District runs well, especially on work accident report, worker union meeting and so forth

3. Company has conducted certification toward load and transport operator, first aid officer, general occupational health and safety expert, and so forth

4. Company has periodically submitted its three-month guiding committee on occupational health and safety report

Company will always obey regulation from Social, Manpower and Transmigration Agency of Tanah Bumbu District, in term of report as well as other coordination and will improve the relationship.

Company is expected to maintain and improve its good relationship with stakeholder. Keep its consistency on complying regulation and sending report based on the applicable regulation. Based on document’s review, company has submitted its obligation to submit report related to manpower, guiding committee on occupational health and safety etc. the cooperation runs well, for instance training for licensed-first aid officer.

Environment Agency of Tanah Bambu District (Environment Impact Analysis and Laboratory Sub-division) Positive and negative comment: 1. Company has UKL/UPL document that has been approved by Head

of Standardization and Environment Centre for Environment Impact Analysis Commission No.191/II/DAR-3/1999 on 22nd September 1999 with an area of 6,095 ha & capacity of 30 ton FFB/Hour in 1999 PT Ladangrumpun Suburabadi

2. Company has UKL/UPL UKL/UPL document that has been approved by Head of Environment Agency of Tanah Bambu District No. 660/89/IL/PDL-BLHD/2013 on 21st June 2013 with additional capacity of 30 Ton FFB/Hours into 60 Ton FFB/Hour PT

Coordination and cooperation will always be improved

Company has set regulation related to environment. Based on document’s review, company has complied related-environment regulation, for instance company has reported the measurement result over treated effluent that was recorded in RKL/RPL implementation report semester II in 2013 period July – Dec 2013 to Environment Agency of Tanah Bumbu District on 24th April 2014. Company also submitted report, like 1) Waste


ASSESSMENT REPORT




Ladangrumpun Suburabadi in 2013. 3. Company has Environment Impact Analysis document (AMDAL).

Based on Secretary General/ Commission of Forestry and Plantation Department Decree No. 154/menhut-II/2000 on 26th December 2000 regarding the Environment Impact Analysis document for KKPA palm oil estate and mill in Sutai, Sungai Loban and Kusan Hulu Sub-district, Kotabaru District, Kalsel Province. For an area of 40,000 ha and 26,000 ha with mill’s capacity of 2 x 60 Ton FFB/Hour. The broad of nucleus plantation is ±12,000 ha, which covers nucleus estate I (Mustika Estate) with a broad of ±6,200 ha in North and nucleus estate 2 (Pantai Bunati Estate) with a broad of 5,800 ha in the South. 10,000 ha area has been planned to be an effective estate area with 5,000 ha area for nucleus estate I and 5,000 for nucleus estate II. In order to process FFB, company will establish two unit mills with each capacity 60 ton FFB/Hour that will be located in nucleus estate I and II.

4. Has had land application permit 5. Has had permit for temporary hazardous waste storage 6. Has periodically reported the RKL/RPL implementation report 7. There was no complain from community related to environment

pollution 8. Company is proactively response information request from

Environment Agency of Tanah Bumbu District.

three-month III report for period July – September 2013 to Environment Agency of Tanah Bambu District on 03rd November 2013 and three-month 4 periods October – December 2013 on 23 December 2013 etc.

Company is expected to maintain and improve its consistency to protect environment surrounding plantation area.

Forestry and Plantation Agency of Tanah Bumbu District (Plantation Business Bureau Sub-division) Positive and negative comment: 1. Has Plantation Business Permit/ IUP 2013, which has been

Coordination and cooperation will

Company is expected to increase its consistency to


ASSESSMENT REPORT




endorsed by Reagent of Tanah Bumbu District No. 188.45/396/DISBUTBUN/2013 on 15th July 2013 regarding PT LSI Plantation Business Permit over 6,077 ha area and palm oil mill with a capacity of 60 ton FFB/Hour in Angsana Sub-district, Sungai Loban Sub-district, Satui Sub-district, Tanah Bumbu District

2. Has not periodically submitted plantation business report 3. No complain from community related to environment issue.

always be improved.

submit report to related agency, like to Forestry and Plantation Agency.

Sebamban Lama Village (Head of Village) Positive comment: 1. According to Head of Sembamban Lama Village, there is no land

tenure between community and company 2. Company is proactive responding to grant request 3. Company has conducted communication related to grants request

mechanism. Type of grants for community, such as meat grant, heavy equipment to repair road access.

4. So far, relationship between company and community runs well. This condition is expected to sustain and improve in the future.

Negative comment: 1. Company never shares information about vacant position (work

opportunity) with local community in Sebamban Lama Village through Village Administrator.

2. There was an environment issue because effluent from mill was flooding during rainy season, even though the fact of this issue still being questioned.

1. 2. Coordination and cooperation will

always be improved 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

1. Related to vacant position especially for Sebamban Lama Village is based on priority scale, because mostly

Company is expected to maintain its relationship with local community and to enhance local community empowerment. Company is expected to provide complete information related to its environment management effort like has earned permit as well as other efforts. Company is expected to maintain its good relationship with local community and responding issue in order to avoid and prevent miss information. Company is expected to maintain its good relationship with village and local community as well as properly responding issue in order to avoid and prevent miss information.


ASSESSMENT REPORT




personnel in ASF and in KKPA-4 are comes from Sebamban Lama and Sebamban Baru Village.

2. Parliament member has responded this issue from (commission III). However, this issue never been proved, and waste management is considered very well.

Angsana Village (Head of Village) Positive comment: 1. Based on Head of Angsana Village, there were no community

involving on land tenure with company. 2. Company is proactive responding to grant requests and mostly grant

requests have been granted. 3. Company has conducted communication related to mechanism for

grant request submission. Types of grant for Sebamban Lama Villages were meat grant, heavy equipment for road repair, etc.


5. Company has delivered socialization and provided work opportunity for local community surround estate area

6. No complain from community related to environment problem.

Negative comment:

Coordination and cooperation will always be improved in order to increase benefit for local community upon company’s existence.

Related to environment pollution issue, based on document’s review, company has water’s quality examination result, which has been periodically reported by LSI to related agencies to obey the entire applicable regulation, and company has conducted program in order to maintain generated waste quality from mill within the applicable standard threshold.


ASSESSMENT REPORT




There was no negative issue been mentioned. Village Administrators hope that communication and relationship with company will run more smoothly in the future.

1. Coordination and cooperation with village and community will always be improved

Purwodadi Village (Head of Village) Positive comment: 1. Based on Head of Purwodadi Village, there were no community

involving on land tenure with company. 2. Company is proactive responding to grant request and mostly grant

requests have been granted. 3. Company has conducted communication related to mechanism for

grant request submission. Types of grant for Sebamban Lama Villages were meat grant, heavy equipment for road repair, etc.


5. Company has delivered socialization and provided work opportunity for local community surround estate area

6. No complain from community related to environment problem. Negative comment: There was no negative issue been mentioned. Village Administrators hope that communication and relationship with company will run more smoothly in the future.

Coordination and cooperation as well as communication will always be improved in order to build stronger and healthy relationship.

Company is expected to maintain its good relationship with village and local community as well as properly responding issue in order to avoid and prevent miss information.


ASSESSMENT REPORT


4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

Hereunder sign by management representative from inspected company to acknowledge a field assessment and agree for all content explained in this assessment report, included of non-compliance findings.

Signed on behalf of:

PT Ladangrumpun Suburabadi

Mutuagung Lestari

Head of PSQM Minamas Plantation Sime Darby

Lead Auditor

Mohamad Pirabaharan

M. Syarif Lambaga

18 June 2014

18 June 2014


ASSESSMENT REPORT

SPO – 4006a.5 Page 76 Prepared by Mutuagung Lestari for Angsana POM - PT Ladangrumpun Suburabadi (Sime Darby Sdn. Bhd)

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

No Institution/NGO/Community Addrees Phone/email Type of

consultation Date

1. Industrial, Trade, Cooperative and Small

Medium Enterprise Agency of Tanah Bumbu District.

(H. Nooryakin SE. – Kadisperindag Kab. Tanah

Bumbu)

Tanah Bumbu -

Direct

Consultation at

22 April 2014

-

2. Social, Manpower and Transmigration Agency of

Tanah Bumbu District (Achmad Ruhani – Kabid Binwas Ketenagakerjaan)

Tanah Bumbu -

Direct

Consultation at

22 April 2014

-

3. Environment Agency of Tanah Bambu District

(Samsudin Riadi – Sub Bidang Evaluasi Amdal dan

Laboratorium)

Tanah Bumbu -

Direct

Consultation at

22 April 2014

-

4. Forestry and Plantation Agency of Tanah Bumbu

District (Ir. Sunuhaji – Seksi Bidang

Biro Usaha Perkebunan)

Kuranji Village -

Direct

Consultation at

22 April 2014

-

5. Sebamban Lama Village (Adiansyah – Sekretaris Desa)

Sebamban Lama Villlage

-

Direct

Consultation at

22 April 2014

-

6. Angsana Village (Sayid Sutan H. – Kepala

Desa)

Angsana Kecamatan Angsana, Kabupaten Tanah Bumbu Village

-

Direct

Consultation at

22 April 2014

-

7. Purwodadi Village (Heriyanto – Kepala Desa)

Purwodadi Village

-

Direct

Consultation at

22 April 2014

-

8. WALHI

Jl. Tegalparang Utara No 14, Mampang, South

of Jakarta

[email protected] Via email 4 April 2014

9. Sawit Watch - [email protected] Via email 4 April 2014




ASSESSMENT REPORT


Appendix 2. Assessment Program

DATE 21 – 23 April Year 2014

PROGRAM PROCESSES / CLAUSES TO BE AUDITED

AUDITOR

SL ISP ISD AND SHL

Monday, April, 21, 2014

06.00 – 08.00

08.30 – 14.00

14.30 – 15.00

15.00 – 17.30

Jakarta – Banjarmasin Banjarmasin – PT Ladangrumpun Suburabadi Opening Meeting Document review + Verification of Previous Nonconformances Consistency:

Basic Information

Principal 1 (Information request & Response)

Principal 2 (Fulfilment of Regulation, Land Tenure, Community Agreement)

Principal 3 (Company Working Plan and Replanting program)

Principal 4 (Operational records of Harvesting, Spraying, Upkeep, Fertilizer Application, IPM, Buffer Zones, Terracing, Stores, Workshop, etc)

Principal 5 (Environment report, HCV area)

Principal 6 (Worker Contracts, Pay & Conditions, External Stakeholders Communications, Labor welfare and facilities, local contributions)

Principal 7 (new planting or replanting implementation)

Principal 8 (Continuous Improvement)

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Tuesday, April, 22 , 2014


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08.00 – 12.00

08.00 – 12.00

12.00 – 14.00

14.00 – 17.00

Public Consultation:

Government Agency and NGO (BLH, BPN, Disbun, Disnaker, NGO)

Local Community, Worker, Gender Committee Field Observation to KKPA 4 Estate:

Harvesting, Maintanance (Spraying, IPM and Fertilization),

Housing, Public Facilities, Hazardous waste management, Health Facility

BREAK Continue Field Observation to KKPA 4 Estate:

Boundary Management and Conservation Area

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√

√

Wednesday, April, 23, 2014

08.00 – 12.00

08.00 – 12.00

12.00 – 14.00

14.00 – 17.00

Field Observation to Angsana POM:

POM activities, IPAL, OHS Implementation, Land Application

Supply Chain Requirement

Field Observation to ANGSANA Estate:

Harvesting, Maintanance (Spraying, IPM and Fertilization),

Housing, Public Facilities, Hazardous waste management, Health Facility

Boundary Management and Conservation Area BREAK Continue of Document Review and Verification of Field Observation

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Friday, April 25, 2014

08.00 – 09.00

09.30 – 11.00

12.00 – 17.00

Penyusunan hasil kesimpulan Audit Closing Meeting PT LSI Banjarmasin

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Appendix 3. Glossary

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

ASE : Angsana Estate

APD (PPE) : Alat Pelindungan Diri (Personal Protective Equipment)

ASF : Angsana Factory

B3 : Bahan Beracun dan Berbahaya (Hazardous Material Waste)

BOD : Biological Oxygen Demand

BLH : Badan Lingkungan Hidup

CPO : Crude Palm Oil

CSR : Corporate Social Responsibility

FFB : Fresh Fruit Bunch

GHE : Gunung Sari Estate

HACCP : Hazard Analysis and Crritical Control Points

HCV : High Conservation Value

HGU : Hak Guna Usaha (Land Use Permit)

HIRAC : Hazard Identification Risk Assessment and Risk Control

HRM : Head Region Manager

IUP : Izin Usaha Perkebunan (Plantation Operation Licence)

IPAL (WWTP) : Instalasi Pengelolaan Air Limbah (Wastewater Treatment Plant)

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

Jankos / EFB : Janjangan Kosong / Empty Fruit Bunch

K3 (OHS) : Keselamatan dan Kesehatan Kerja (Occupational Health and safety)

KER : Kernel Extarction Rate

KKPA-4 : Full Managed Plasma–4 Estate

KUD : Koperasi Unit Desa

LC : Land Clearing

LSI : Ladangrumpun Suburabadi

MRC : Minamas Research Center

OER : Oil Extarction Rate

P2K3 :

Panitia Pembinaan Keselamatan dan Kesehatan Kerja (Guiding Committee of Occupational Safety & Health)

PBE : Pantai Bontai Estate

Permen LH : Peraturan Mentri Lingkungan Hidup

Permenkes : Peraturan Mentri Kesehatan

PHT (IPM) : Pengendalian Hama Terpadu (Integrated Pest Management)

PK : Palm Kernel

PKS (POM) : Pabrik Kelapa Sawit (Palm Oil Mill)

POME : Palm Oil Mill Effluent

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

RSPO : Roundtable on Sustainable Palm Oil

SEL : Studi Evaluasi Lingkungan (Environment Evaluation Study document)

SHE : Sajang Heulang

SIA : Social Impact Assessment

SOP : Standard Operating Procedure

ST-1 : Stage 1


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ST-2 : Stage 2

S-1 : Surveillance 1




TBS (FFB) : Tandan Buah Segar (Fresh Fruit Bunch)

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