stage-2 [√ [ ] re-assessment sime darby plantation sdn ......henry marpaung; ibnu satria prabudi...

PT. MUTUAGUNG

LESTARI

SURVEILLANCE REPORT

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management/Owner : SIME DARBY Plantation Sdn Bhd

Plantation Name : Alur Dumai POM – PT Lahan Tani Sakti

Location :

Pujud Subdistrict, Rokan Hilir District, Riau

Province, Indonesia

Certificate Code : MUTU-RSPO/011

Date of certificate issue : 16 January 2012

Date of expiry of certificate : 15 January 2017

Assessment Assessment Date

PT. Mutuagung Lestari Auditor

Checked by

Approved by

ST-2 18-23/10/2010 Aryo Gustomo; Hera Hendrasana;

Henry Marpaung; Ibnu Satria Prabudi

Taufik Margani Tony Arifiarachman

S1 22-25/10/2012 Octo HPN Nainggolan, Oktovianus

Rusmin, Marsudi Eko Santoso,

Ardiansyah, Moh Arif Yusni


S2 6-8/11/2013 Octo HPN Nainggolan, Oktovianus

Rusmin, Marsudi Eko Santoso, Bukti

Bagja


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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Submitted to RSPO on:

Approved by RSPO on:

Approved by Certification Body on:

11 January 2014

http://www.mutucertification.com/

PT. MUTUAGUNG

LESTARI

SURVEILLANCE REPORT

SPO – 4006a.5 i Prepared by Mutuagung Lestari for PT. Lahan Tani Sakti – Alur Dumai POM

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT. Lahan Tani Sakti Figure 2. Operational Map of PT. Lahan Tani Sakti

1 2

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Plantations, Mill and Area Statement 3

1.5 Description of Supply Base 4

1.6 Dates of Plantings and Cycles 4

1.7 Tonnage Certified 5

1.8 Other Certifications 5

1.9 Time-Bound Plan for Other Management Units 6

2.0 ASSESSMENT PROCESS

2.1 Certification Body 8

2.2 Assessment Team 8

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 9

2.4 Stakeholder Consultation and List of Stakeholders Contacted 10

2.5 Date of Next Surveillance Visit 10

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

11 33

3.3 Conformity Checklist of Certificate and Logo Use 38

3.4 Summary of Time Bound Plan Verification of the RSPO Certification 39

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

40

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 46

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 53

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 54

2. Assessment Plan 55

3. Glossary 56

PT. MUTUAGUNG

LESTARI

SURVEILLANCE REPORT

SPO – 4006a.5 1 Prepared by Mutuagung Lestari for PT. Lahan Tani Sakti – Alur Dumai POM

Figure 1. Location Map of PT. Lahan Tani Sakti

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 2 Prepared by Mutuagung Lestari for PT. Lahan Tani Sakti – Alur Dumai POM

Figure 2. Operational Map of PT. Lahan Tani Sakti

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 3 Prepared by Mutuagung Lestari for Sime Darby Plantation, PT. Lahan Tani Sakt i – Alur Dumai POM

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.

1.2 Organization Information

1.2.1 Company name MINAMAS Plantation – SIME DARBY Group

1.2.2 Contact person Mohamad Pirabaharan

1.2.3 Company address The Plaza Lt. 36 JL. MH Thamrin Kav. 28-30 Jakarta 10350

1.2.4 Telephone +62-21-29926000

1.2.5 Fax +62-21-29922686

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

Mohamad Pirabaharan (Head of PSQM Minamas Plantations-Sime Darby)

1.2.10 Registered as RSPO member 8 September 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm oil Mill and Estate

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT. Lahan Tani Sakti

1.3.4 Number of management unit 1 (one) palm Oil Mill (Alur Dumai POM) which receives FFB supply from 1 (one) unit estates Alur Dumai Estates (ADE)

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Alur Dumai Estate Sub District of Pujud,District of Rokan Hilir, Province of Riau

1° 28' 38" - 1° 36' 31" N

100° 28' 29" - 100° 34' 39 E

1.4.2 Location of Estate(s)

Name of Estate(s) Location

GPS

Latitude Longitude

Alur Dumai Factory Sub District of Pujud,District of Rokan Hilir, Province of Riau

1° 33' 40 01" N

100° 32' 30 08" E

1.4.3 Country/Region Indonesia / South East Asia

1.4.4 Tenure

Private

State 3,759.14 Ha*

mailto:[email protected]

http://www.simedarby.com/


ASSESSMENT REPORT


Community

1.4.7 Area Statement

Total area 3,759.14 Ha

Mature area 2,416.3 Ha

Immature area 983.65 Ha

Mill 12.33 Ha

Emplashment 39.8 Ha

Infrastructure 84.2 Ha

Nursery 6.4 Ha

Occupation 193.09 Ha

HCV (Watershed, eroion control) 23.1 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 (%)

Alur Dumai 15 53,495 12,481 23.33 2,705 5.06 - -

*Source Production Data on November 2012 - October 2013

1.5.2 Description of Estate(s)

Name of Estate(s) Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

Alur Dumai Estate 3,759.14 3,400 53,495 15.73 53,495 100

*Source Production Data on November 2012 - October 2013

1.5.3 Smallholder(s) and others

Smallholder(s)

Scheme Member(s) Location

Total Area (Ha)

FFB (tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

- - - - - - -

PT. Lahan Tani Sakti – Alur Dumai POM does not reveived smallholders FFB

1.5.4 Product categories FFB/CPO/PK/PKO

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year

Hectarage (Ha)

Alur Dumai Estate Total

1991 113.8 113.8

1992 561.9 561.9

1993 50.3 50.3

1994 82.2 82.2


ASSESSMENT REPORT


1995 95.9 95.9

1997 147.2 147.2

1999 40.5 40.5

2000 124.4 124.4

2003 215.2 215.2

2004 152 152

2005 99.5 99.5

2006 189.7 189.7

2007 335.7 335.7

2009 509.11 509.11

2010 224.61 224.61

2012 249.93 249.93

2013 208.06 208.06

Total 3,400

1.6.2 New Planting area after November 2005 1509.5 Ha

1.6.3 Planting Cycle 1(One) Cycle 25 Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production 60,225 Tonnes/year

CPO Production 13,496 Tonnes/year

Palm Kernel (PK) Production 3,053 Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonage of FFB

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Alur Dumai Estate 3,759.14 3,400 54,400 16.00

Productuin Estimation of Alur Dumai Estate 1.7% yield increase from the past 12 month

1.7.3 Claim Certified Tonage of Palm Product

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Alur Dumai 15 54,400 12,512 23,00 2,720 5,00 - -

Productuin Estimation of ALur DUmai Estate 1.7% yield increase from the past 12 month

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others -


ASSESSMENT REPORT


1.9 Time Bound Plan for Other Management Units

Management Unit Location

Hectarage (Ha)

Time Bound Plan

Status Mills Estates

Sekunyir PT. Indotruba Tengah District of Seruyan and Kotawaringin Barat – Province of Central Kalimantan

7,734.60 2009 Certified

2010 Manggala PT. Tunggal Mitra

Plantations District of Rokan Hilir – Province of Riau

13,836.00 2009 Certified

2010

Bukit Ajong PT. Sime Indo Agro District of Sanggau – Province of West Kalimantan

11,652.00 2009 Certified

2010

Teluk Siak PT. Aneka Inti Persada City of Pekanbaru and District of Siak – Province of Riau

11,134.00 2010 Certified

2011

Sungai Pinang PT. Bina Sains Cemerlang

District of Musi Rawas – Province of South Sumatera

6,513.00 2010 Certified

2012

Sukamandang PT. Kridatama Lancar District of Seruyan and Kotawaringin Timur – Province of Central Kalimantan

14,779.92 2010 Certified

2011

Pemantang PT. Teguh Sempurna District of Seruyan and Kotawaringin Timur – Province of Central Kalimantan

16,601.66 2010 Certified

2011

Alur Dumai PT. Lahan Tani Sakti District of Rokan Hilir – Province of Riau 3,759.02 2010

Certified 2012

Teluk Bakau PT. Bhumireksa Nusasejati

District of Indra Giri Hilir – Province of Riau 25,662.00 2010

Certifed 2011

Mandah 2013

Audited 2013

Mustika PT. Sajang Heulang District of Tanah Bumbu – Province of South Kalimantan

7,794 2012

Certified 2011

Angsana Mini 2010

Certified 2011

Angsana Full Manage Plasma (KKPA)

16,000 2013

Certified 2013

PT. Ladangrumpun Suburabadi

6,077.00 2010 Certified

2011

Gunung Aru PT. Bersama Sejahtera Sakti

District of Kotabaru – Province of South Kalimantan

12,704.54 2010 Certified

2011

Ladang Panjang

PT. Bahari Gembira Ria District of Muaro Jambi – Province of Jambi 1,202.04 2010

Certified 2012

Bebunga PT. Langgeng Muaramakmur


16,361.77 2011 Certified

2012

Pondok Labu PT. Paripurna Swakarsa District of Kotabaru – Province of South Kalimantan

14,892.00 2011 Certified

2012 Selabak PT. Swadaya Andika District of Kotabaru – Province of South

Kalimantan 10,361.18 2011

Certified 2012

Rantau

PT. Laguna Mandiri


15,299.80 2011

Certified 2011

Betung 2013

Audited 2013

Ungkaya PT. Tamaco Graha Krida District of Morowali – Province of Central Sulawesi

4,145.00 2011 Certified

2012

Rantau Panjang

PT. Guthrie Pecconina Indonesia

District of Musi Banyuasin – Province of South Sumatera

10,139.91 2011 Certified

2012

Lembiru PT. Sandika Natapalma District of Ketapang – Province of West Kalimantan

8,406.21 2020

Audited 2011

PT. Budidaya Agrolestari District of Ketapang – Province of West Kalimantan

2020 Audited

2011 MAS PT. Mitra Austral

Sejahtera District of Sanggau – Province of West Kalimantan

8,741.29 2020 Audited

2011


ASSESSMENT REPORT


Blang SImpo PT. Perkasa Subur Sakti PT. Padang Palma Permai PT. Perusahaan Sri Kuala

District of Aceh Tamiang and District of Aceh Timur- Province of Nanggroe Aceh Darussalam

6,451.99 1,128.90

2011 Certified

2013

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 Lead Assessor and Assessment Team

2.2.1 Assessment Team

S2 The assessment team was consisted of: 1. Octo Nainggolan (Lead Auditor witnessed by ASI Auditor). A bachelor of Agriculture, majoring of Social

Economics of Agriculture (Agribusiness). He has a working experience since 2004 oil palm Plantation Company in Indonesia. Trainings attended namely: Training of Conservation of Natural and Biological Resources in supporting HCV, Basic Plantation Management Program, Plantation Integrated Pest Management training, Followed the Management System Certification (ISO 9001-2008/SNI 19011-9001:2008), Environment Management System (ISO 14001:2004) , RSPO Lead Auditors Training Course, Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course and supply chain certification system training by BM Trada. Currently, he worked at Professional Certification Body. In the assessment activity, he assessed on legal aspect, best practices, environment aspect, social aspect, workers welfare, FFB Processing and supply chain requirement.

2. Oktovianus Rusmin (Auditor). Bachelor’s Degree in Social & Political Sciences Department of Anthropology. Specialists in the field of Social and Cultural (Social Impact & Conflict Resolution) and HCVF. Followed the Forest Management Auditor Training (FSC Standard), ISO 14001 Environmental Management System Training & SVLK (wood legality) auditors, Indonesian Sustainable Palm Oil (ISPO) Auditor and Management System Certification (ISO 9001-2008/SNI 19-9001:2008) Lead Assessor. He was several times involved in the assessment of Sustainable Forest Management Certification (Standard LEI). Had worked at the Center for the study of Anthropology, University of Indonesia; and experts to the field of Social Tropical Forest Trust (TFT) Indonesia. He was numerously involved the Social Impact Study and Identification HCV in Oil Palm Plantations and natural forest concessions. In this assessment activity, he conducted assessment of social and workers welfare.

3. Marsudi Eko Santoso (Auditor). Bachelor of Agriculture, majoring in Agro technology. Followed the Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor training, ISPO Lead auditor training and distribution quality management process - APMEA. He had involved several time in RSPO certification assessment activities as an auditor. Currently he works for Independent Certification Body. In this surveillance activity, he assessed on Best Practices, Integrated Pest Management and safety and health.

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

Accreditation Services International Auditor: 1. James Sandom as ASI Lead Auditor Witnessed. During the assessment he witneesing the MUTUAGUNG

auditor team as part of Accreditation Assessment for RSPO Certification Body. 2. Aisyah Sileuw as ASI Technical Expert. During the assessment she help the ASI lead auditor as technical

expert. 3. Garry MacInnes (Lead Auditor Witness). He is witnessing the ASI Lead Auditor performance.

http://www.mutucertification.com/



ASSESSMENT REPORT


2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Estimate of person days to implement assessment

S2 Number of auditors : 4 persons Number of days for S-1 at site : 2 days Number of working days for S-1 at site : 8 Man days

2.3.2 Detail process of assessment

S2 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PT. Lahan tani Sakti (PT. LTS) to the requirements of National Interpretation of the Republic of Indonesia from RSPO Principles and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008) and Supply Chain Requirement for CPO Mill The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field visitation, aiming to observe directly the sufficiency of implementation on site. Some opportunities for improvement of the results Surveillance-1 delivered by the auditor MAL to the management unit and the results are the subject will be verified at the next assessment phase (Surveillance-3). Improvement of findings from main assesment findings were observed by auditors at this first surveillance assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of Surveillance report. Please find Appendix 2 for the assessment program

2.3.3 Locations of Assessment

S2 Location has visited by team auditors, as follow : Alur Dumai POM:

Processing station (loading ramp to dispatch). Observation on crude palm oil production from fresh fruit bunch and fire emergency response on mill. Interview with mill’s officers (boiler operator, engine room operator) regarding the medical examination, operator license, payment, complaint mechanism, first aid implementation, capacity building/training, safety, the availability of personal protective equipment and mass balance model supply chain mechanism.

Chemical storage. Observation on handling chemical material and interview with storage officer regarding the chemical material handling process, emergency response and implementation of Occupational Health & Safety

Water Treatment Plant. Observation on clean water provision.

Workshop. Observation on emergency response feasibility and availability of Occupational Health & Safety (first aid kits) and interview with welders on training, medical examination, Occupational Health & Safety implementation, safe way of working, complaint mechanism, freedom to establish association and payment

Engine Tank. Observation on availability of fire emergency response.

Temporary storage for hazardous material waste in mill. Observation on handling hazardous material waste whether it complied regulation and interview with hazardous material storage officers regarding medical examination, handling on hazardous material waste and availability of means to handle pollution and exposure.

Waste Water Treatment Plant (WWTP). Observation on industrial liquid waste management and pollution reduction handling process.

Alur Dumai Estate:

1. Workshop. Interviews with certified welders, the handling of hazardous waste in the form of used oil in traction, emergency response equipment.

2. Blok N001 - Division 3 (HCV area of Wellhead). Observations on HCV area and the availability of HCV area notice boards.

3. Blok F10 – Division 1 (HCV area). Observations on HCV area (Secondary Forest) and the availability of HCV area notice boards and protected animals posters

4. Peat area in Division 1. Observation of peat Management. 5. Boundary Poles No. 046, 047, 048, 049 (Division 3) and Pole No.156 (Divisi 1). Observations on the proof of

poles maintenance activities implementation. The poles were found in good condition and well maintained.


ASSESSMENT REPORT


6. Land Application. 7. BSS House Division II. Observations on the location of PPE washing and work equipment and the

management of washing waste water. 8. Blok G0013. Observations and interviews with estate assistant regarding the existence and the condition of

barn owl nests (rats’ bone and barn owls’ dung were found) and Observation the existence of beneficial plant of Integrated Pest Management program.

9. Blok C003. Observation of zeroburning for replanting land preparation and signs of burn prohibition and . Observations regarding the existence of legume crops.

10. Warehouse Alur Dumai Estate: Observation availability of fire fighting facilities and canopy diesel tank; OSH Implementation; Material Safety Data Sheet; first aid box; PPE stock and management of Hazardous Material.

11. Block G.004 Division 2, spraying activities. Observation and interview with spraying officer and chief regarding the standard operational procedure, personal protective equipment application, first aid, occupational risks, periodical examination, maternity, periodic and special treatment leave for women, information board of ongoing spraying area, prohibition for pregnant and lactating women to spray, payment, prohibition to spray along riverside, housing facility, complaint mechanism especially on gender issue.

12. Block F-005 Division 2 Harvesting. Observation on harvesting activity and employee understanding on harvesting standard operational procedure and ripe fruit criteria. Interview with employee on first aid, personal protective equipment application (helmet and boots), tools and it safety, first aid kits box completeness, jamsostek, payment, facility, freedom to establish employee union and complaint mechanism.

13. Block G-011, G-012 Division 1 Manuring. Observation on manuring activity accordance to procedure and interview with workers regarding first aid, personal protective equipment application (helmet and boots), tools and it safety, first aid kits box completeness, jamsostek, payment, facility, freedom to establish employee union and complaint mechanism..

14. Tangga Batu Village, Pujud. Harvesting transport contractor (CV Arimbi). Interview with contractor regarding transparent agreement and agreed payment, also implementation of worker regulation by the contractor.

15. Occupation area Division 1. Obervation of occupation area claimed by (Suparno Cs). The land tenure still in progress.

16. Nursery. Observation the nursery activity for preparing the replanting program.

Government Institution and Villages:

17. Interview with Rokan Hilir Government Institution related to PT Lahan Tani Sakti performances. The interviews were held on several agencies such as National Land Agency, Labour Agency, Plantation Agency, and Environmental Impact Control Agency.

18. Sri Kayangan Village. Interviews with village officials regarding the impact of oil palm plantation existence, CD/CSR implementation of PT. LTS, and clarification with a villager signing the resolution agreement of land dispute in the village.

19. Pondok Kresek Village. Interviews with village officials regarding the impact of oil palm plantation existence, CD/CSR implementation of PT. LTS, company's relationship with the communities around the village, mechanisms of communication and public complaints to the company, community employment opportunities around the estate.

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 LTS was held by public consultation with government Institutions was held on 7 November 2013 by interviews and local stakeholders conducted by visits to villages and interviews with local peoples. Numbers of input from stakeholders were clarified by LTS.

2.4.2 List of stakeholder contacted

Please find appendix 3

2.5 Determining Next Visiting

The next visit (Surveillance 3) will be determined one year after this surveillance-2 (October 2014)


ASSESSMENT REPORT


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

MUTUAGUNG LESTARI has conducted a Surveillance-2 assessment of PT Lahan Tani Sakti – Alur Dumai POM, Sime

Darby Operation consisting of 1 (one) mill and 1 (one) oil palm estates.

During the assessment, there were two (2) Nonconformities were assigned against Major Compliance Indicators; two (2) Nonconformity was assigned against Minor Compliance Indicators and nine (9) opportunities 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 Auditor(s) in form of documentation evidence(s) e.g. (document record/photographic) Those corrective actions taken that consist of one (2) major nonconformities had been closed out and one (2) Minor non-conformities still open and shall be verified during next assessment.

Based on the findings during the assessment at PT Lahan Tani Sakti – Alur Dumai POM and regarding the compliances to 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 and the RSPO Supply Chain Certification Standard November 2011, MUTU Lead auditor continued recommended subject to closure of Minor NCR(s)

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.

The management unit of PT. LTS has had the SOP for information request (001/LTS-PI/09) which applicable since March 04th, 2009 that described the guidelines in drafting responses for the information request from stakeholders and addressed to operational unit as well as the timeline for the request and responses which is 1 to 2 weeks. Based on monitoring book of information from community, there were 23 incoming letters since January 2013 until October 2013, but there were no information request letters, only aid request letter. Those aid request letters have been followed up. Some records to proved this such as:

Letter Number 03/YAP AL MIA – SKY/09/2013, dated February 07th, 2013 from Yayasan Pendidikan Al Mia, Pujud sub district regarding heavy equipment request for flatting road in kindergarten location and has been implemented at February 12nd, 2013

Letter Number 140/PEM-PK/2013/185, dated Octover 04th, 2013 from Kepenghuluan Pondok Kresek, Pujud sub district regarding clean water request and has been implemented at October 20th, 2013.

All information request letters and responses are available and well documented by certified holder party.

Status: Full Compliance

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

Based on SOP of information request (001/LTS-PI/09), the accessible document for other parties such as: a. RKL/RPL document for PT. LTS plantation activity b. CSR recapitulation that contains company’s contribution record for local development c. Policy record and implementation of occupational health and safety for plantation and mill d. HCV mapping and management plan


ASSESSMENT REPORT


There was also a letter from Chief Executive Officer, Number M-024/CEO/V/2008, dated May 7th, 2008 regarding the information delivery procedure and documentation from company to media or third party. PT. LTS has had a procedure for notes control (003/LTS-PC/09). This procedure aims to ensure the identification, collection, storage, maintenance and destruction of notes or records well implemented for easiness of retrieval. This procedure stated the shelf life and destruction of record, such as: audit/ assessment need is for 3 years, reference need is for 10 years, law/legislation until there is a revision, costumers request is for 3 years, company’s policy is for 3 years and notes for land compensation is timeless.


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

Certificate owner proved the compliance toward all applicable regulation and legislation such as: 1. Has land used title in accordance with government regulation No.40 of 1996 regarding the Land used title, Building

used title and land used title No. 3 (3187, 579 ha) dated January 19th, 2001 and No. 4 dated December 19th, 2000 (covering an area of 571,435 Ha) total area of 3.759,014 ha based on decision letter from head of national land agency No. 45/HGU/BPN/2000 dated October 3rd, 2000.

2. Has business permit based on SPUP from directorate general of plantation production development No. HK.350/193/Bun.5/III/2001 dated March 16th, 2001 for PT Lahan Tani Sakti, investment facility (PMDN) covering an area of 3.759,014 ha; type of plantation is palm oil.

3. Has a temporary storage permit for hazardous waste landfill (TPS LB3) in accordance with government regulation No.74 of 2001.

4. Has conducted the air emission and ambient testing regularly in accordance with government regulation No. 41/1999.

5. Has a license on waste water utilization (Land Application) based on decision letter from head of environment impact agency of Rokan Hilir district No. 09/BPDL/2010 dated Augustus 18th, 2010 in accordance with decision from ministry of environment No. 29 of 2003.

6. Legislation No. 13 of 2003 – Paid personnel salary in accordance with the applicable regional minimum wage based on BKS-PPS.

7. Legislation No. 3 of 1992 –Provided social security, Jamsostek. 8. Legislation No. 1 of 1970 –Provided the equipment for occupational health and safety program (first aid) for all

personnel. 9. Legislation No. 23 of 1997 –Drafting the environment impact document (AMDAL, RKL/RPL) and endorsed by

ministry of plantation of Republic of Indonesia. 10. Legislation No. 18 of 2004 –Land clearing with zero burning approach 11. Legislation No. 21 of 1999 –Ratified the ILO convention on anti-discrimination that stated in collective labor

agreement. 12. President’sDecree No. 32 of 1990 – Allocated some area as protected areas 13. Report on the realization of hazardous waste storage activity has been submitted every 3 months to related

institution. This is in accordance with decision letter from ministry of environment No. 260 of 2009 regarding the license of hazardous waste storage the forth dictum, which stated that the report must be reported at least every 3 months to related institution.

14. Monitoring report on waste water utilization every 3 months is in accordance with government regulation No 82 of 2001 article 34 paragraph (3).

15. Welders in Teluk Siak mill already have the qualification as a welder in accordance with regulation ofministy of labor/ Permenaker No. 2 of 1982 regarding the qualification for welder in workplace.

16. Heavy equipment’s operator (Loader) in Teluk Siak mill has had the operator license (SIO) in accordance withPermenaker No. 9 of 2010, article 11 regarding the Transport aircraft operators over and above Runway Surface.


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There are regulation list and legislation requirements that related to palm oil plantation and mill’s activity (65 regulations). Company tried to comply the applicable regulation, for instance the wages is based on:

Regulation of Riau Governor No. 16 of 2013, dated April 1st, 2013 on minimum wages for sub sector of agriculture/coconut and palm oil and rubber plantation of Riau Province for 2013 isIdr. 1.509.000/month

Memorandum from General Manager of HRM, No 11/HRM-13/III/2013, dated April 16th, 2013regarding the plantation SKU daily& SKU monthly salary structure for PT AIP, PT TMP, PT LTS and PT BNS areIdr. 1.509.000/month.

There are list of regulations and renewable legislations (updateduntilOctober 2013) by PT. LTS management in accordance with the aspect of regulation. LTS has a documented system that provide information and legislation requirement that must be fulfilled by the company and stated in the SOP of sustainable plantation management guidelines No.724/TQEM-SPMS/09 in chapter 1.2 that explain the compliance on legislation and government regulation. Mechanism to identify the compliance on applicable and related regulation explains:

1. Identification and inventory on legislation requirement a. Regularly contacting government and non-government institution to figure out the latest international, national

and local regulation b. Actively visiting the related web site c. Updated every year 2. Obedience a. Resume the identification result on related regulation and summarize into K3LL regulation summary document

(Health and occupational safety, environment) b. Provide information or related unit (stake holders) regarding the applicable regulation c. Up dated the summary of regulation regarding the K3LL related regulation every 6 months by the company

Conducting inspection and analysis on the operational data through internal and external audit.


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

PT Lahan Tani Sakti has land ownership document such as land used title No. 3 (3187, 579 ha) datedJanuary 19th, 2001 andland used title No. 4 dated December 19th, 2000 (covering an area of 571,435 Ha) total area is3.759,014 haand in accordance with decision letter from head of national land agency No. 45/HGU/BPN/2000 dated October 3rd, 2000. The entire area has been measured and mapped by national land agency, related documents are available. Based on field observation on land used title boundary stakes number 046, 047, 048, 049 (Division 3) and No.156 (Division 1), the boundary stakes have been clearly demarcated Based on information from public consultation, there is a land conflict for an area of 6 Ha between communities (named Suparno) with certified owner (PT. LTS). The conflict resolution can be seen as below: 1. Letter from leader of Srikayangan village datedJuly 15th, 2013 with number.132/PEM/SKY/7/2013 regarding

information on land overlapping in Srikayangan area that located in Division 1. 2. Company’s response on land overlapping with communities by conducted field visit at September 10th, 2013 (the

representative of PSD Minamas/ Mr. SOBRI) to monitor and visiting village party. 3. Letter of compensation request on behalf of Mr. SUPARNO that has been addressed to PT LTS management on

September 16th, 2013 that describe the 6 Ha land which used and cultivated by PT LTS and compensation request for amount Idr.40.000.000/ha (Forty million rupiah per hectare).

4. Delivery letter from head of Srikayanganvillage dated September 16th, 2013, No. /SP/SKY/2013 that addressed to PT LTS management and explains village support for Mr. SUPARNO and friends. The letter also completed with supporting document such as photocopy of land certificate and compensation request letter.

5. Response from PT. LTS management was launched at October 28th, 2013 in a form of letter


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No.0191/LTS/PSD/UM/X/2013 regarding land overlapping resolution for land belong to Mr. SUPARNO and friends within the operational area of PT LTS which explains that the resolution is in a process: September 20th, 2013, field visit was conducted and followed up with a discussion in PT. LTS management

level. September 20th, 2013 there was a meeting between PT. LTS and leader of Srikayangan village It was estimated that in first of November 2013, there will be a measurement on overlapping land by company’s

measure team. Based on document’s review and interview with village party and company’s representatives (PSD/SOBRI), that a resolution toward land overlapping case is in a good process which based on freedom of agreement principle, prior and Informed Consent (FPIC) Land compensation on behalf of Mr. Suparno and friends for an area of 6 Ha (Division 1Block D-013) has been approved and cultivated by the company and will become a main observation for the next visit. Observation.

Major 2.2.3 Status: Compliance with observation

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.

Based on public consultation with government institution and surrounding villagers since the initial assessment until today, there is no indigenous land (traditional land) within the operational area of the company

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.

Company has set up the long term plan document, called document of total cost analysis-final in a form of Budget 2013/14 and projection for 2014-2017. This document has become a guideline in plantation operation, such as inform: 1. Production (in tones). 2013/2014 (59,351.572 Tones), 2014/2015 (58,091.421 Tones), 2015/2016 (56,098.726

Tones), 2016/2017 (55,963.382 Tones, 2017/2018 (59,111.353 Tones). 2. Fixed Cost (consist ofplantation administration, road &bridges, labor (including ESH plantation), administration of

HO and depreciation). 3. Direct Cost (consist of mature upkeep (spraying, manuring, harvesting & collection, transport). 4. Cost for Replanting (Land preparation, roads and bridge, water management, soil conservation, planting, cover,

weeding, census, boundaries etc). 5. Cost for New Planting (Land preparation, roads and bridge, water management, soil conservation, planting, cover,

weeding, census, boundaries etc).

Company also set a Budget document of 2013/2014 and projection of 2016-2017 for PKS Alur Dumai which contains an information on processed FFB (kg), CPO (kg), PK (kg) OER (%) and KER (%) as well as direct cost and fixed Cost (for instance: Training, ESH, LO social, etc) LTS has drafting the long term replanting plan in a form of Long Range Replanting Program (LRRP) plan and map on replanting plan of 2011-2027. The objective of this plan is to redesign previous block, especially for plantation with a planting year of 1991, 1992, 1993, 1994, 1995, 1996 and 1999. The policy set up by LTS such as plant for age up to 25 years old with a yield lower that 18 tones/Ha, the height of plant more than 15 meters and systematically (centralized) was done by following the operational pattern such as BHS (Block Harvesting System), BMS (Block Management System), BSS (Block Spraying System), for the execution has been started in 2011 at Alur Dumai Plantation. Replanting plan in LTS will be wrapping until 2027 and will need seed up to 695.776 Pcs. Field observation shows that LTS has a well managed nursery.


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Status: Full Compliance.

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

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

There is Minamas Agricultural Reference Manual No. Policy 110/EST-ARM/13 that signature by Indonesia Head Plantation Upstream based on policy No. M-0101/HPUI/IX/2013 obtain on 1 October 2013. The company has the procedures starting from FFB receipt, processing until CPO and PKO dispatch for operational activities of Alur Dumai Palm Oil Mill authorized on July 26, 2010 by the Head Plantation Operations (HPO) which contains among others: 1. SOP No.110/POD-FAC/07,

CHAPTER I. Basics of Oil Palm Processing activities: Fruit receipt (1.1), Sterilization (1.2), Striping (1.3), Digesting (1.4), Pressing (1.5), Purification (clarification) (1.6), Separation of palm kernel and pulp (1.7), Kernel Station (1.8), CHAPTER II. Stockpiling Oil and Palm Kernel, including Palm Oil Stockpiling (2.1), Laboratory Management (5.9), etc.

2. SOP No.110/POD-FAC/07 Boiler (6.1), Power Plant Engine (6.2), Types of Power Plant (6.3), Occupational Security and Safety (6.10), etc.

3. SOP No.130/POD-FAC/07 Fundamentals of Oil Palm Processing, including General Description (I), the Organization of POM (II), the Administration Procedures of POM Operations (III), the Administration Procedures of CPO or PKO delivery (3.3)

The company has mechanism for monitoring operational activities at the mill and the estates. Inspection activities in the estate include:

Plantation advisory was last conducted every 6 months. Points examined include: Harvesting costs, nursing costs of

mature and immature plants. For example plantation advisor period of Mei - Oktober 2013 at 10 - 12 Mei

2013 (report No: MINAMAS/SOU16/ADE/01/13-14).

ESH Audit which is conducted once a year.

Mill Advisory was last conducted every 6 months, the assessment was regarding the performance of the mill, for example of Mill Visit Report No: MINAMAS/ADF/02/12-13 tanggal 11-13 April 2013.

The company also periodically reports operational activities in estates and mills. The results of operational activities are set forth in the Monthly Report of Estate Unit made by the Estate Manager. The document stated information on all operational activities in estates and mills.

Status: Full Compliance.

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

Leaf Analysis Report dated 10 April 2013 based on sampling data on 06 May 2013 is available. For example, sample from Block D013 Division I LSU No. ADE-0101-A,the analysis results: ASH 7,46%, N 2,81%, P 0,159%, K 1,011%, Mg 0,272%, Ca 0,569%, FE 124,8 PPM, Cu 6,8 PPM, Zn 16,6 PPM dan B 18,2 PPM on Dry Matter. The records of the results of the soil analysis are available in the form of Soil Analysis Result by Minamas Research Center on 21 - 27 October 2010 for Alur Dumai Estate. Soil analysis will be conducted every 5 years. The analysis of the increase in fertility in terms of Yield Trend is available, which is contained in the Technical Field Report conducted in 10 April 2013 in the Table of Ton / Hectare ADE. The records of activities to improve soil fertility are available, among others: 1. The report documents of the empty bunch and Effluent Applications 2013/2014 ADE explaining about: EFB

Application Data of 2013/2014 informing about the Block, and the volume of EFB applications realization with


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research Recommendation of 200 - 300 Kg /palm/year. 2. Manuring realization and recommendations in July 2013 - June 2014. For example, Block D013 the Kieserite

application in September 2013 was realized in accordance with the recommendations (1.5 Kg/palm/year). 3. Documents of Legume Crops Planting Activities realization for period of July – June 2013 are available. Legume

Crops Planting accordance with SOP of Estates (Agronomic Manual No. 5xx/PTK-KCG/2004). For example Legume Crops planting in block C002 at August 2013 for 69.795 Ha.

Status; Full Compliance

4.3 Practices minimize and control erosion and degradation of soils.

Company has had land map, such as: (1) Map for type of land that comes from land exploration with a scale of 1:250.000. that shows 3 combinations: (a) fluvaquents, tropaquents, and tropohemist combination (b) paleudults, haplortox, and dystropepts combination (c) and tropudults, dystropepts, and haplortox combination (2) Map of Semi Detail land which prepared by Param Agriculture Soil Surveys on October 2008 that identified 12 type of soils such as: Batang Merbau, Bungor, Serdang, Kemahang, Harimau, Kawang, Tebok, Gong Chenak, Rasau, Bukit Tuku, Lunas, and Kampong Pusu. These two soil maps show that in general there is no marginal soil. For a certain slope area, there is an SOP of Manual Agronomy Number Policy 3xx/PTK-KSV/2004that explain the management strategy for cultivation in a certain slope area, such as through constructed conservation ditch, continued terracing, and individual terracing (hooves). Moreover, in the sustainable plantation management guidelines No. 724/TQEM-SPMS/09 on protection policy over the slope and stream buffer zones that shows a commitment to protect a certain slope and streams areas. . HCV identification report indicate the existence of peat land in division I, but the semi detail soil assessment by Param Agriculture Soil Surveys (M) SDN BHD in October 2008 shows that there is no peat land within the division I area, only mineral soil with a shallow peat layer. Even though there is no marginal soil, the company has had a standard strategy for marginal soil and other critical soil management (sandy soils, soils contain sulfuric acid, low organic matter content) that based on recommendation from Minamas Research centre such as: (i) Improvement of Mg nutrient status in the soil, (ii) Provision of curing materials, such as empty bunches should be applied to improve the physical, chemical, and biological properties of soil, especially to increase the cation exchange capacity, (iii) Increasing the amount of cover crop, to assist the fixation of N and protect the soil from direct rainfall and maintain soil moisture,(iv) Establishment of silt pit for un-flat up to waving topography to collect the erosion material as well as to collect water during dry season. PT. Lahan Tani Sakti also conducted the erosion reduction activity to reduce soil erosion by monitor the erosion and conserve the soil in accordance with EIA document by establish rorak-rorakbetween palm oil tree, empty fruit bunch application, cultivating the nephrolepsis biserata, and selective spray within the plantation area. There is a record on PT road maintenance for 2012-2013 (until June 2013), for instance inDivision IV the road maintenance program along 5.462,784 M and up to 688,6 M.


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

In general, the available water source within the PT. LTS area is a hot spring in Block N001. In spite of this hot spring, there is no river with water in it for the whole year. The water resource management done by determined the border for riparian area of 200 m radius or area of 12, 57 acres. In riparian area, the enrichment action has been undertaken and installation of warning signs. Groundwater is also used by personnel for domestic purpose through well’s construction. Company has conducted regular monitoring on the groundwater quality.

Records on water resource management are available in the form of: (1) Records on hot springs management by set up the riparian area for an area of 12.57 Ha as HCV areas and managed by: signboard installation, chemical-free treatment, and cultivation of enrichment plant. (2) Records of regularly monitoring on the quality of groundwater (wells)


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at three points, namely: application monitoring wells, non-application monitoring wells, and employees wells. Recent data show the entire parameter measurements in accordance with the quality standards unless the pH value in the highly acidic in employee well because of being in low-lying areas. Therefore, no employee wells used for drinking water, only for bathing and washing BOD of waste water has been regularly monitored every month. Data evaluation on waste water quality in final spot of effluent conducted by Laboratory of Public work agency of Riau Province (accredited). The data evaluation for the last three months shows that the entire parameters are in accordance with quality standard of KepMenLH No. 28 of 2003 and Governor Regulation No.35 of 2007. Water utilization for processing FFB also regularly monitored. The daily utilization of water will be recorded in monthly recapitulation. Data for last year shows that water utilization was under the budget (with a ratio of 1,5)


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

The company has a mechanism of Early Warning System to ascertain the level of pests and diseases in the estate area are below the economic threshold, which is done every day in the field activities. IPM programs are available including: 1. Work Sheet Document of Nettle Caterpillars Control (Budget of 2013/2014), which consists of: planting beneficial

plant from Turnera subulata type, Casia cobanensis and Antigonon leptosus around the work area of PT. LTS; 2. Work Sheet Document of Rats Control (Budget of 2013/2014), which consists of: monitoring of nest boxes for

maintaining owls as rats control and predator every month; Rats sensus, population and control strategies. 3. Work Sheet Document of Oryctes Control consisting of census, population and control strategies.

As the implementation of those procedures, the company already has the following records: 1. Planting realization of beneficial plant until September 2013, for example in Divition 1:

• Cassia cobanensis as long as 6,535 M • Antigonon leptopus as long as 288 M • Turnera subulataas long as 18,946 M.

2. Monitoring of owl nests position and occupation For example of monitoring in September 2012 of owl developments as in the division I Block G0013 Nest Box No. 20: 2 adults and based on field observation find the feces and fur of Tyto alba.

3. The company has conducted of IPM training on 15 June 2013 regarding the census, caterpillars controlling and integrated management of caterpillars.

The company has monitored the toxicity of pesticides in IPM, and also has lists of active substances per Ha of the chemicals used such as Audit 486 AS with active isopropyl amina gliphosate 486g/l; pesticides used is 3440 liters, active substance used is 1672 g; the area of application is 3,409 Hectares; the use of active ingredient per hectare is 0.49 g.


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.

There is Recapitulation documents of pesticides used in the period of 2012-2014 informing about Registration number of all agrochemicals used, such as: Kenlon 486 EC; BA: Triklopir Butoksi Etil Ester 480 gr/l; No.Register RI.01030120062433. The Company has provided records of pesticide use in the form of documents of program and work realization of Chemical (Spraying the space between path (gawangan )is done 3 times a year, Circle of Chemise is every 3 months


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and the control of Imperata cylindrica is every 4 months);the information of area applied such as block names and dosages used is available. For example Circle Spraying activites in Blok F009 is 19 ha with use pesticide of Audit 19.19 liter (doses of 1.01 l / ha below the recommended dosage 2-3 l / hal). The pesticides brochures which inform direction of use are available. For example, the brochure of Audit 486 AS, direction of use for oil palms plants: Target Weeds (broadleaf weeds), Application technique (spraying with a dose of 2-3 liter / hectare). There is also MSDS (Material Safety Data Sheet) for each pesticide and fertilizer explaining about product identification, physical and chemical properties, toxicology, first aid emergency in poisoning, self-protection, maintenance and storage. The company has conducted training to the spraying team regarding spraying procedures; the document evidence is in the form of photographs of the training activities. It was conducted on 5 April 2010, attended by 11 persons consisting of spraying foreman of each division. Training Facilitators were the Estate Manager and Senior Assistant. Pesticides Packaging Waste Management is conducted in accordance with the management of Hazardous Waste. See Criterion 5.3. Based on the data of pesticides use, it is identified that the company was no longer using pesticides type of 1 A and 1 B WHO, for example (active substance Brodifacum based on Warehouse Card of Klerat Item,Item Code No. 160003383,the last Stock on 26 July 2007 was as much as 325 kg and the last outgoing item was on 26 February 2011). The company has also not used Paraquat pesticide since January 2009. Medical screening for spraying operators is performed every 6 months by a company physician who has a Company Hygiene and Occupational Health (hyperkes) certificate (No. 23.138/DH-1/10) obtained from Company Hygiene and Occupational Health training for Company physician (dr. Rudi Bastian) on 7 November 2010 in collaboration with the Thamrin Clinical Laboratory. There are documents of Medical Screening Results of spraying, manuring and Warehouse guard workers including examinations ofroutine blood, liver physiology (SGOT and SGPT), Thorax examination, Inspection Results Follow Up. There is a policy on prohibition of hiring Pregnant and Breastfeeding women to work in divisions related to chemicals, according to Manager memos dated 8 April 2011. There are job transfer letters, for example job transfer notification letter No. 02-SKAK/KLNK PT.LTS/LTS/OKT/2012 to Lastun (spraying team), based on the results of the Gravida IV (pregnant), she was transferred from the spraying division to the Nursing baby 7 July 2012.


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

Companies shows occupational Health and Safety policies are approved by the Head Plantation Upstream Indonesia, in December 2011, states that Plantation Indonesia (Minamas Plantation) committed to providing and maintaining safe work environment and healthy by applying effective management to prevent accidents and unhealthy environment in the staff / employees, contractors and guests / visitors. Based on field observation known that all the workers (spraying activities block G.004 Division 2, Harvesting block F-005 Division 2, Manuring block G-011, G-012 Division 1,Mill workshop, Loading Ramp, Chemical Storage) have equipped with adequate personal protective equipement (PPE). In the implementation, LTS has sought to implement OHS policies have been made including: The company has established persons in charge of OHS in the form of Guiding Committee of OHS (P2K3) for the

Estate endorsed by the Labor Agency of Rokan Hilir No: 07/DTKT-PK/SK-P2K3/2013 dated 31 Agustus 2013 with the Secretary of Guiding Committee of OHS (Mr. Darul Walidi). OHS Expert, certificate registration No. 9921/PK3/AJ/31/2011/PO. Committee of OHS has held meetings on a quarterly basis to discuss OHS issues in the company, for example, on 10 October 2013. The Report of Committee of OHS periode of Juli – September 2013 is available, which was reported on 30 September 2013 and 16 October 2013. Occupational Accident Insurance is available for all employees in Labor Social Assurance (JAMSOSTEK) program. Evidences showed by the company include: The payment details of Labor Social Assurance period of August 2012 in accordance with the employees check roll data in August 2012. Payment Evidence of Bilyet Giro No. JI858745 and Bilyet Giro Sheet No. II901584 on 30 September 2013 and 4 October 2013.


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Medical screening for employees who work at the high risk station is performed every 6 months by a company physician who has been Company Hygiene and Occupational Health (Hyperkes)certified (No. 23.138/DH-1/10) as the result of Company Hygiene and Occupational Health training for company physician (dr. Rudi Bastian) on 7 November 2010, a collaboration with Thamrin Clinical Laboratory. There are report documents of Health Examination results for Employees working in stations with high noise levels (Generator Operator, Mill Employee) including examination of audiometric, liver physiology (SGOT and SGPT), Thorax examination, and Examination Results Follow Up. During the surveillance-2 interview with workers known that they have conducted the health examination regularly every 6 six month. The Company has established risk analysis for OHS program in estates in the form of Hazard Identification Risk Assessment Control (HIRAC) Document. POM HIRAC is available for each station, such as in risk control activities in limited / closed space (activities in threser and steam), it is mentioned that there are work permits and gas testing. It has been applied to the implementation of activities by the operators that have licenses, such as boiler operators on behalf of Mr. Suaji (No. reg. 159 OPK3-PUBT-B.1/III/2011). The Company already conducted OHS trainings, for example: 1. Safety Briefing done every morning. 2. Training of the safe harvesting techniques on 2 July 2012 the Division IV, attended by 15 participants (Harvesting

Foreman harvesting workers, list of participants is available). 3. Emergency response training, such as Emergency Response Simulation and Training, includes training of the use

of Fire extinguishers and Emergency Condition on 25 June 2013 attended by 16 participants in Blok F006 (attendance list, photos of activities, training materials and Minutes are available).

Emergency Response Procedures are available including: • SOP of Fire Fighting (011/LTS-PPK/10 document) describing the Fire Fighting Team, Fire Control Management, Reporting and administration of incidents. • SOP of Emergency Preparedness and Recovery Response (RSPO / IN 4.7/PKD) Reg. No: 015/LTS-KKS/09. • SOP of Explosion Prevention and Handling (Document No. 012/LTS-PPL/10 including procedures for explosion

handling, identification of explosion sources, prevention efforts of explosion widespread, • SOP of Handling of Occupational Accident Causing Employees die on the spot (RSPO / IN. 4.7/KKS) Reg. No.:

020/LTS-KKM/09. • SOP of Handling of Occupational Accident with survived Employees (No.: 016/LTS-KKS/09.) describing the

procedures for the handling and investigation (evaluation of occupational accidents, Head of section reports to Labour Social Assurance (JAMSOSTEK), Assistant disseminates the results of the evaluation).

• SOP of Flood Handling (Reg. No.: 027/LTS-PB/11) including procedures for preparation, flood handling team, flood control management, administration and reporting.

• SOP of Flood Handling (Reg. No.: 026/LTS-PB/11) including procedures for preparation, flood handling team, flood control management, administration and reporting.

The Company has an organizational structure of Emergency Response (Fire, Flood, Landslide and Earthquake) dated 1 July 2012 with Estate Manager and Mill Manager as the chairman; Mr. Dedi Suheri as the Head of Emergency Control Team, with 6 members from the estates and 6 members of the POM; the evacuation and first aid emergency team chaired by Saiful Abidin with two members from the estates and one member from POM; the Supporting team chaired by Jamal Sinaga with 4 members from the estates and 2 from POM. The layout of evacuation routes during an emergency is available, such as in the Head Office of Alur Dumai Estate. There are evidences of OHS program equipment fulfillment, among others: Firefighting Equipment at Alur Dumai Mill: 1 unit of Hydrant Pump, 4 units of Fire Hose Reel, 21 units of fire extinguishers. The records of fire extinguishers monthly inspection results are available. Firefighting Equipment at Alur Dumai Estate: 4 unit of Hydrant Pump, 12 unit of helmet, 13 rolls of Hose. The records of fire extinguishers monthly inspection results are available. Based on field observation, the equipment in good condition. The number of First Aid Emergency boxes distributed in estate locations is 26 boxes in ADE and 4 at POM (there are records of fire extinguishers monthly inspection results, with the results: all of the boxes are complete). Based on field observation, the auditor have finding of First aid Box in the BSS house, warehouse, workshop and office in good


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condition. The number of fire extinguishers available in the estate locations is 54 units in ADE and 21 units in the POM (the records of fire extinguishers inspection results updated in October 2013 are available). The Company has conducted First Aid Emergency training for personnel in operational activities such as: First Aid Emergency training dated 31 October 2013 which was attended by assistant, security, foremen each division (Estate and Mill). The records of monthly occupational accident monitoring and report of occupational accidents analysis results every 3 months by Guiding Committee of OHS contained in the report of Guiding Committee of OHS are available.


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

Company has a training calendar of Minamas Plantation for period 2013-2014 (July 2013 – June 2014), training component consist of: a). Leadership competencies, b). Regulatory compliance training, c). Assistance conference, d).Exchange program, e).Induction training and f). Non schedule in-house training There are also documents of Employ Training History – General which consists of:

- Business Planning & Administration - Group Corporate Assurance - Information on Technology Service - Logistics and Distribution - Plantation Operation – Estate Operation - Plantation Operation – Mills Operations - Upstream Productivity Department

Those documents above also describe the information on personnel names that have followed the training in accordance with their competency and type of work. There are also evaluation documents for pre&post training for period 2012/2013 of Alur Dumai Plantation. These documents contain information such as: name of personnel, training status, training plan, date of training and evaluation after the training. Document observation result and interview with workers and contractors workers known that certificate holder has conducted training programs, such as: - Work Safety and Health Officer training on behalf Budi Setiawan on 27 May 2013 - First Aid Emergency training on behalf Junaidi on August 2013 - Chemical Spraying training on Division II 2 September 2013 (attendance list and fotographic evidence were

available)


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.

There are environment document like EIM (part of EIA which drafted on the initial of plantation development) and revision on RKL/RPL that drafted to accommodate the changes. Revision of RKL/RPL has been approved by the decision letter from BAPPEDALDA of Rokan Hilir district with a decree No. 666.1/AMDAL-BAPEDALDA/2008/63 dated April 16th, 2008. The information stated on this document such as description on plantation and mill activities, color of environment, environment management plan, environment monitoring plan and report.

As a proved of implementation, there is a report on the implementation of RKL-RPL that regularly submitted to responsible institution. The latest report is available for first half period of 2013 and has been submitted at August 31st, 2013, this document covers the entire mandatory management and monitoring. Even though if we compare this


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document with the EIA document, there is an environment monitoring part that has not yet included especially for social aspect such as the monitoring on number of personnel hired by the plantation and monitoring on health of surrounding community. Non conformance raised CAR.2013.01 with Major category. Observation 16 December 2013: Root Cause:

- Personnel health data was sufficient to represent the health data of surrounding community according to the EIA

(without entering data of surrounding community).

- The absorption of local personnel described only in general and considered already sufficient without entering

the number quantitatively

Coreective action: - The secondary data on surrounding community’s health taken from Puskesmas and Polindes

- Insert figure % or the number of local personnel in RKL / RPL report.

- Revise the RKL / RPL report by including the above items and report back to the relevant agencies

Preventive action: PSQM team ensures that the above issues will consistently stated in RKL/RPL report for the next period and delivered to related agencies. Based on sbervation CAR.2013.01 is closed.

To accommodate developments and changes, company has drafted the revision on RKL/RPL in accordance with the decision from BAPEDALDA of Rokan Hilir District with a decree No. 666.1/AMDAL-BAPEDALDA/2008/63 dated April 16th, 2008. The information stated in this document such as plantation and mill activities, color of environment, environment management plan, environment monitoring plan and report. After the revision of 2008 until the second surveillance, there is no change on business specification.

Major 5.1.2 Status: Full Compliance

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.

There is a document for HCVA identification that conducted at November 16th, 2009 until November 21st, 2009. Based on this identification, there are list of protected wildlife in the area of plantation with a high conservation value, covering an area of 89,68 Ha and consist of HCV 1.1 , HCV 1.2, HCV 1.3, HCV 1.4, andHCV 2.3. This determination of HCV has through the public hearing process that conducted at January 8th, 2010 and was attended by 28 participants that represent local community and government. There are records on protection process of protected wildlife and HCV area in a form of: (1) Manage the boundary of HCV area with trench and boundary stakes, (2) Socialize the HCV identification result to community and employee, (3) Cultivate the enrichment plantation surrounding the HCV area, (4) and install the information board and warning board to protect the HCV as mentioned in the information boards installed surrounding plantation area, (5) Conducting the monitoring on wild life as shows in regular monitoring result of wildlife. In general those process were in accordance with applicable regulation especially legislation No. 5 of 1990 regarding the conservation of natural resources and ecosystem, President decree No. 32 of 1990 regarding the protected area and other related regulations. For the socialization, there are 16 information boards installed surrounding the plantation area which consist of: information board on protected wildlife (4 units), information board on HCV area (6 units), information on prohibition for hunting and poisoning (3 units), information on sloping area of 40% (1 unit) and information board on air quality (1 unit). There are also records on socialization material for surrounding community such as: (1) record on socialization material delivery at September 10th, 2013 to head of Sri Kahyangan village as shown by receipt letter from head of Sri


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Kahyangan village and (2) record on socialization material delivery at September 10 th, 2013 to head of Pondok Kresek village as shown by receipt letter from head of Pondok Kresek village To manage the HCV area, there are special officer to monitor and manage the HCV named M. Duwin whom pointed by the decision letter from ADE manager No. LTS/RSPO/016/09/2013 dated September 1st, 2013. Moreover, there is also a record on HCV training on behalf of Rinno Ferryno produced by Aksenta. There is also an attendance sheet for internal training of HCV from Mr. Rinno Ferryno which followed by 14 participants including M. Duwin (EHS, QA ADE, Ka. mechanic, HCV officer, ADE assistant, OJT assistant) on September 9th, 2013 in ADE plantation.


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

There is identification on waste source that stated in document of “Hazardous and non-hazardous waste identification” as well as the management. Source of waste have been categorized based on location in office and housing, workshop and mill activity. This document contains of recommendation on waste management such as (1) hazardous waste will delivered to licensed third party, as stated in SOP No. 017/LTS-PB3/09 regarding the SOP of hazardous waste management. (2) Effluent waste will be pumped to cooling pond and applied in soil (land application) as clearly stated in SOP on effluent treatment plan. (3) Fiber and shell waste will utilize as boiler fuel. (4) Domestic/ house hold waste will regularly throw in special landfill. As a prove of implementation, the hazardous waste has been thrown in accordance with applicable regulation which is delivered to licensed third party (CV. Amindi Barokah) as explained in indicator 5.3.1. The solid waste such as fiber and shell has been re-utilized as boiler fuel, meanwhile liquid waste from palm oil processing will be utilized for land application.Eventhough, the field visit to mill location shows that there is a significant leakage at waste pond from pond 3A which cause the waste water flow to trench into mill’s area (sample of field visit in block G9 and Block F10). The leakage from this waste water pond has a potential pollution toward environment and against that land application permit as well as company’s policy on waste water management. Non conformance raised CAR.2013.02 with Major category. Observation 16 December 2013: Root Cause: The high of rainfall caused the volume of wastewater in application ponds to increase and overflow. Corrective action:

Have done the pumping for land applications

Dike in the application pond 3A have been elevated to prevent overflow of waste water in application pond

Installation of indicator level

Ensure the waste pond level is >50 cm, measure from the surface of the dike.

Conducting water quality testing in three location (effluent treatment, trench upstream and trench after Land

Application in block F-10)

Preventive action:

Checklist on the waste ponds to be remain monitored by ADF mill’s staff to ensure the actual conditions of entire

waste and send the updates to the management.

Ensuring the high-level of waste ponds are in accordance with the safe level.

Ensure the land application pump well functioning.

The entire documentary evidences in the form of photos and improvement records have been shown by the certificate holder and were available. Based on observation CAR.2013.02 is closed


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Especially for hazardous waste, there is an SOP No. 017/LTS-PB3/09. The stated management in this SPO was based on applicable regulation. As a prove of implementation, there is a licensed landfill that in accordance with decision letter from BAPEDALDA of Rokan Hilir No. 25/BPDL/2011 dated July 5th, 2011. For monitoring, company has a log book record for hazardous waste in land fill as well as hazardous waste balance including used pesticide packages for every month that reported regularly every 6 month to responsible institution. Liquid waste and solid waste that produce has been regularly monitored every month and regularly reported every 6 months. Daily volume of liquid waste, meanwhile the quality of liquid waste been monthly monitored. Quality of monitoring well and quality of surface water been regularly monitored to ensure there is no pollution from liquid waste application. Solid waste has been daily recorded and recapitulated every month.

Major 5.3.2 Status: Full Compliance

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

There is a monitoring record on the utilization of renewable energy, such as fiber and shell for boiler. The utilization data of renewable energy has been counting the energy usage/ton FFB or energy/ ton CPO. The average efficiency per month for period 2013 is around 0,034 kWh/tones of FFB. Company also has a record on diesel fuel utilization for mill and plantation operation.The data shows that average ofmonthly utilization for diesel fuel for 2013 was + 20.000 liters. By utilize the renewable energy (fiber and shell), the efficiency of diesel fuel utilization for operational was 3-4 liters in average per tones FFB.


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.

The company already has a policy on Zero Burning in plantation activities in the PT. LTS which is in Policy No. 724/TQEM-SPMS/09 point 5.7.2 regarding zero burning techniques. The company has also had an agronomy reference manual No. 110/EST-ARM/08 Section 4 Land preparation Clause 3.1 point (b) stating that the land clearing should refer to the Decree of Directorate General of Plantation No. KB.110/SK/DJ BUN/05.95 dated 30 May 1995. During surveillance-02 field observation of land preparation in Block C003 Division IV which was done through with felling, pole installation (pancang), and stacking. The activity was carried out using heavy equipment with zero burning technique. Reports on the work results of land preparation for replanting, such as in Block C001 on 8 May 2012: felling, stacking and chopping trees covering an area of 3 hectares (390 palm). Based on field observation in Block C003 (replanting area), the auditor did not find rest of land fire. The company showed SOP of Fire Fighting No. 028/LTS-PK/09 dated 12 March 2009 explaining about: Establishment of firefighting organizations in every estate, identification of water sources, an inventory of areas prone to fires, fire patrol, making the Sign of Fire. Must-have equipment is (transportation vehicles, robin machine with a hose of 150 M, Masks , Tractor and TLB if needed, boots, water tanks, Communication Devices, protective helmets and fire fighter vests), administration and fire incidents reporting. The fulfillment of fire equipment is in accordance with the directions in the SOP of fire fighting. Records of the examination results of fire extinguishers conducted monthly are available. The company has had fire-prone areas document in 2012 with the scale of 1:60,000. Fire-prone areas were identified in the replanted areas and areas adjacent to the community. The company has installed signs of fire in those fire-prone areas. Based on the results of field visits, it is known that fire-fighting equipments are in good condition.


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


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Documents review show that company has had the identification result on pollution and emission source in mill which stated in EIA document and document of pollution and emission source identification. In Alur Dumai mill, the identified pollution and emission source in mill were boiler emission, generator and mill’s machine, waste water from palm oil processing. Report on implementation of RKL-RPL shows that company has conducted regular monitoring on emission and pollution source in Alur Dumai mill such as boiler and generator. The measure was regularly conducted by the third party, Laboratory Binalab in Bandung (accreditation). The latest measurement was conducted at April 9 th, 2013 and the entire parameters were in accordance with the quality standard set by government as stated in KepMenLH No. KEP-48/MENLH/VI/1996andKepMenLH No. KEP-13/MENLH/3/1995. Efforts to reduce pollution and emission was taken by company, such as (1) Regular maintenance on fire tube, dust collector, and main hole chimney as well as body boiler. (2)Regular maintenance on generator machine every 250 hours, (3) Install the steam machine chimney pointing up in order to reduce the noise and smoke from steam machine. (4) Utilization of renewable energy to reduce the utilization of diesel fuel and (5) Determine the HCV area and plantation enrichment to absorb the GHG from environment surrounding plantation and mill. POME processing has a license too utilized waste water for land application that is in accordance with decision letter from BAPEDALDA of Rokan Hilir district No. 09/BPDL/2010 dated August 18th, 2010 regarding the utilization of waste water for land application for PT. Lahan Tani Sakti plantation Pujud Sub District and Bagan Sinembang Sub District, Rokan Hilir District. The permitted total area for waste water application is 22,5 Ha. This permit is valid until 5 years since the issuance. SOP for POME management is available in document No. 023/LTS-AE/12 that contains application method, application dose, organization of work and implementation of application. The RKL-RPL document shows that company hashad IPAL which contains of: Cooling pond: 600 M3, Aerobic pond (1A): 2.000 M3, Aerobic pond (1B): 2.000 M3, Anaerobic pond (II A): 7.200 M3, Anaerobic pond (II A): 7.200 M3, Application pond (III A): 5.000 M3, pond application (III A): 5.000 M3. The monitoring result on waste water utilization is also available and being documented every day, for instance the utilization at June 30th, 2012 amount 30 tones which been applied for an area of 4 Ha.


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

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

There is a social impact analysis document by POLITO, covering analysis on social aspect: the positive impact analysis (part 6..3.1) and negative impact (6.3.2) this social impact analysis contains the risk status (2.4 page 9) that covers the indicator from each risk factors, among other is risk factor for surrounding plantation area: the economic condition, road infrastructure, environment means and social means, risk factor on community’s welfare surrounding plantation area: education, health, unemployment and poverty rate. This social impact analysis was using the data collection method like structured interview and in-depth interview with local government and community, observation and collaboration between company and community. This can be proved by the vise book on implementation of the analysis. There is also a record like village development program plan for 2012 that executed by PT. LTS and community in several villages surrounding plantation area, such as:

September 19th, 2012 in Sri Kayangan and Pondok Kresek village.

September 29th, 2012 inTanjung Medan Utara village The short analysis also available for replanting impact that carried out by Aksenta consultant – Jakarta, 2012. This analysis describe the replanting stages and impact indicator from each replanting stages that can be affected the environment and social condition in surrounding plantation and the replanting area, also completed with the attachment


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of impact projection and recommendation on replanting management in ALur Dumai Plantation - PT Lahan Tani Sakti. Through this analysis, it is expected that the sustainable palm oil management can always be improved. The proved of socialization on village development program for 2013 in Srikayangan village is available. But based on interview during the second surveillance visit, community surrounding plantation area were not involved in the process of management plan and social impact plan (regular participation). Based on above description, there is a non conformance raised CAR.2013.03 with Minor category Since the first surveillance until now, there is no change on the scope of company’s operation since the revision on RKL-/RPL in 2008. There is a report on RKL/RPL implementation for period January – June 2013 (first semester) and has been reported to BAPPEDALDA of Rokan Hilir District. The receipt is available from PT. Lahan Sakti to BAPPEDALDA of Rokan Hilir District at August 31st, 2013. Until now, PT LTS has no plasma smallholder scheme.

Minor 6.1.1 Status: Non conformance CAR.2013.03 with Minor category

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.

Company has had the procedure for communication and consultation with community, No. RSPO/6.2/KKM at April 2nd, 2009. The communication and consultation process can be direct or indirect (through letters) addressed to manager or head of section in plantation. For consultation through letters, company has provided the suggestion box which placed in personnel housing and office in each division and mill. In a case where company need to consult some issues with local community, it can be done in written through head of village or through official meeting with community leaders and community. There are records on communication and consultation with community, such as: Meeting with leader of surrounding village and three are record such as: - Notification letter from the management of PT. LTS to each villages - Attendance Sheet of participants - Response from each village leaders - Photos

LTS has show list of related stakeholders with company’s operational, such as: I. Local government (Rokan Hilir), 17 Stakeholders II. Government (Province), 1 Stakeholder III. Plantation Agency (Province&District), 2 Stakeholders IV. National Land Agency (Jakarta & Riau Province), 2 Stakeholders V. Labor agency (Riau Province& Rokan Hilir District), 2 Stakeholders VI. Department of transportation of Rokan Hilir District VII. Bappedal and environment agency VIII. Coordination and infestations agency (Jakarta & Riau Province), 2 Stakeholders IX. Local Revenue agency X. Suppliers and contractors (39 stakeholders) XI. Community Leaders (15 Stakeholders) XII. NGO (4 Stakeholders) XIII. Banking (4 Stakeholders ) XIV. Education/Schools (9 Stakeholders) XV. Other companies (2 Stakeholders) XVI. Etc (4 Stakeholders)


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Records on stakeholder’s aspiration toward PT. LTS until the second surveillance were limited on aid request and have been responded and implemented (in accordance with indicator 1.2.2). Based on interview with surrounding community, the community have been understood how to address their aspiration to company, but community did not knew who is in charge/ special officer for the communication and consultation. Based on interview, the pointed officer has not performed his duty to communicate and consultate with community. Non conformance raised CAR.2013.04 with Minor category. Company also had 2 officers for communication and consultation with surrounding community. The officer incharge has been appointed based on letter from Manger of Alur Dumai Plantation No. LTS/RSPO/022/IX/13/S dated September 19th, 2013.

Minor 6.2.3 Status: Non conformance CAR.2013.04 with Minor category

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

There is a procedure to managecomplains from community (005/LTS-PKM/09) that applied since April 02nd, 2009. This procedure is a guideline to manage complains from community that addressed to each operation unit. There is a flow chart in the procedure which explain the response time for those complaint is 1-2 weeks if the response come from unit manager and 1-2 weeks if the response come from head of department. The suggestion box is available in plantation office and mechanism for handling complains has been stated in the SOP of community complain management (005/LTS-PKM/09) that applied since April 02nd, 2009. This community complaints management has been socialized to surrounding community. Records for these socializations are available, such as

September 19th, 2012 in Sri Kayangan village (attached the attendance sheet of participants and photos).

September 19th, 2012 in Pondok Kresek village (attached the attendance sheet of participants and photos).

September 29th, 2012 in Tanjung Medan Utara village (attached the attendance sheet of participants and photos).

Based on information from management and monitoring book of information from community, from January to October 2013 there was no complaint from surrounding community. The SOP for land compensation mechanism (024LTS-PGR/10) is also available and applied since October 20th, 2010. This procedure describe for instance sub point (5.6) regarding the identification process and how to fairly calculating the compensation by involving community and related institution on the measurement activities. This procedure has been socialized to villages surrounding the plantation area of PT. LTS. Records on these socializations such as:

September 19th, 2012 in Sri Kayangan village (attached the attendance sheet of participants and photos).

September 19th, 2012 in Pondok Kresek village (attached the attendance sheet of participants and photos).

September 29th, 2012 in Tanjung Medan Utara village (attached the attendance sheet of participants and photos).


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.

Based on information from public consultation, there is a land conflict on area of 6 Ha that is under resolution process between community (SUPARNO and friends) with company. Resolution efforts have been taken by the community by pointing their representative to assist the compensation process: 1. Letter from Srikayangan village leader at July 15th, 2013 with number.132/PEM/SKY/7/2013 regarding the

information on land overlapping within the area of Kepenghuluan Srikayangan which located in division 1 of the


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plantation. 2. Company’s response regarding the overlapping land with the community by conducting field visit at September

10th, 2013 (The representative of PSD Minamas/ Mr. Sobri) to monitor and met village party. 3. Compensation request letter on behalf of SUPARNO which addressed to management of PT LTS at September

16th, 2013 that explain the overlapping land (covering an area of 6 Ha) has been cultivated by PT. LTS and company offer the compensation over the land for amount IDR.40.000.000/ha.

4. Letter from head of Srikayangan village at September 16th, 2013 No. /SP/SKY/2013 which addressed to PT. LTS management. The letter explains village support for Mr. SUPARNO and friends and that company should provide compensation over the land and also attached the supporting documents such as copy of land certificate and compensation request letter.

5. Response from management of PT LTS at October 28th, 2013 in a form of letter No.0191/LTS/PSD/UM/X/2013 regarding the overlapping land resolution on behalf of Mr. SUPARNO and friends within the operational area of PT. LTS that explain the resolution is under process: September 20th, 2013, there is a field visit and followed up with a discussion in PT. LTS management.

September 20th, 2013, meeting between PT. LTS and Leader of Srikayangan village has been conducted. It is estimated that in first of November 2013, there will be a measurement on overlapping land by company’s

measurement team. Until the second surveillance, the compensation for overlapping land that belongs to Mr. SUPARNO has not been paid because the measurement and discussion is under process. This will become the main observation material for the next surveillance to see the resolution. Observation

Status: Observation

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.

Salary list for personnel is available and explain about the salary received by personnel and based on observation result, the salary given by company is in accordance with standard regulation especially Riau Governor Decree No. 16 of 2013 regarding the minimum wage for sub sector agriculture/ coconut and palm oil as well as rubber plantation is IDR. 1.509.000, - in Indragiti Hilir District and endorsed at April 1st, 2013. Based on interview wth harvesting personnel and mill’s operator, the received salary is in accordance with regional minimum wage. Until the second surveillance, there is no mistake on salary payment has been done by the company. There is a collaboration agreement which used by personnel in Latan Tani Sakti company which is in accordance with the registration on collective labor agreement between sumatra plantation company (BKS-PPS) with committee of Indonesian worker union (PP.FSP.PP-SPSI) based on decision from director general of industrial relation and social insurance No.KEP.191/PHIJSK-PKKAD/PKB/XII/2012 dated November 14th, 2012 that applicable for 2 years (until November 13rd, 2014) and will be valid until the new applicable collective labor agreement. During the second surveillance, PT LTS is constructing permanent housing facility for employee. This is a program to fulfill the facility for employee. Based on documents review regarding the collaboration contract agreement that based on working contract No.ADE/LKL/2012/XII/009 – EXC dated December 20th, 2013 on article 8 has been explained that the contractor must obey the labor requirement such as responsibility to provide social insurance (jamsostek) and PPE. Based on interview with personnel of transporting contractor, the personnelhave received the PPE and salary that above the regional minimum wage.



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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.

Company has set the social policy, No. 724/TQEM-SPM/09 dated April 1st, 20120 that signed by Franki Anthony (Point 5), company is expected to appreciate employees right on establish and join worker union based on their freewill and participated on negotiation. The organ gram of Indonesia worker union (SPSI) for period of 2009-2014 (plantation) and period of 2013-2017 (mill) is available in PT. Lahan Tani Sakti, such as: - Schedule for coordination meeting PD FSPP-SPSI Riau Province PC FSPPP-SPSI Rokan Hilir District and Indragiri

Hilir PUK SPPP-SPSI Salim Group and Minamas Plantation for entire Riau Province, dated November 05th, 2009. - Schedule for discussion for the third working unit, Indonesia federation of agriculture and plantation worker PT Lahan

Tani Sakti Alur Dumai Plantation, dated March 13rd, 2009.


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.

There is a guideline for sustainable plantation management (No. Policy 724/TQEM-SPMS/09) that endorsed by chief executive officer regarding social policy point .6 stated that Plantation Upstream Indonesia did not hired employee under age (children) and based on collective labor agreement (2010-2012) article 16 paragraph 1 point 1.2.2 stated that minimum age for employee is 18 years old during the recruitment or already married. Based on documents review on employee data of PT. LTS per October 31st, 2013, there is no employee under 18 years old. This has been verified during the field visit and interview with employee and there is no indication on the presence of employee under 18 years old.


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.

Company has set the social policy No. 724/TQEM-SPM/09 dated April 1st, 2010, signed by Franki Anthony (Chief Executive Officer). at Point 1, stated that all personnel is fairly treated in term of recruitment, promotion, working condition and description with no discrimination based on race, social level, ethnicity, gender, skin color, disability, sexual orientation, organization membership, political choices, religion and age. Based on data of PT. LTS list of personnel until October 2013, company’s personnel composition was consist of multi ethnic and religion.


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.

Until the second surveillance, there is no change on policy for prevent the sexual harassment and violence as well as the protection on reproductive rights. Based on interview with female personnel on spraying work, the personnel has been understand this policy and there is a gender committee been established by company to accommodate complaint in case there is a harassment and violence against female personnel. Interview result also informs that until the second surveillance if female personnel give a birth and lactating, they will receive their right to take a leave.


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


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Until now, PT. LTS not purchase and process the FFB from independent smallholders or other source. The entire processed FFB in Alur Dumai Mill comes from nucleus plantation of Alur Dumai plantation. LTS can prove that the collective labor agreement with other party has been fairly, legally and transparently implemented. This can be seen from one of agreement sample based on labor agreement No.ADE/LKL/2012/XII/009 – EXC dated December 20th, 2013 for heavy equipment rent (Compact Hydraulic Excavator) with a contractor (PT Mitra Karya Jaya Perdana). This agreement signed by both parties, been stamp and the payment has been done in time in accordance with working agreement.


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

There is document of Corporate Social ResponsibilityBudget for period of 2013/2014, PT Lahan Tani Sakti. The program consists of:

a. Education b. Health c. Economic and community empowerment d. Social, culture & Sports e. Assistance on commemoration of Republic of Indonesia Independence day

Total budget is IDR. 338.691.667 There is document of CSR realization of PT Lahan Tani Sakti for period of 2012/2013. The program consists of:

a. Education b. Health c. Economic and community empowerment d. Social, culture & Sports e. Assistance HUT RI

Total Allocated budget is IDR 356.633.080 Footages are available, such as: - Minutes of delivery of Road Grader to Pondok Kresek village, at April 25th – 26th 2013 (attachment: photos). - Documentation of internship of SMK Muhajirin manggala student at September 21st, 2013 (attachment: attendance

sheet and photos) - Meat distribution for Idul Adha fiesta 2013 for Pondok Kresek & Srikayangan village office (attachment: photos)

PT LTS contribution toward local development can be seen from its responsibility to pay tax, PPH 21 and other taxes.


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.

Consistent with the first surveillance audit, there is a document of environment management for initial plantation development and replanting (after 2005) covering an area of 1716.83 ha of which has beenlisted in the document revision of RKL/RPLand has been approved by BAPEDALDA Rokan Hilir district No.666.1/AMDAL-BAPEDALDA/2008/63 dated April 16th, 2008.In the document there are eight types of major and important impacts on the environment and social. Implementation of the RKL / RPL document is presented in the form of RKL / RPL report that conducted every 6 months. For environmental management, there is a document that record the design and implementation of environmental management in the form of: 1. SOP of environmental management including waste management, un-moving disturbance, social problem solving,


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and so forth 2. Periodic reports of RKL / RPL to the responsible institution 3. Environmental Monitoring Report every 3 months related with effluent quality; 4. Periodic reports every 3 months on the balance of hazardous waste


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.

There is semi-detailed soil study at PT. LTS done by PARAM AGRICULTURAL SOIL SURVEY (M) SDN. BHD in November 2008. The available information includes slope classes, types, soil structure, soil texture, soil type and drainage conditions. There is a study of HCV containing information about the distribution of topography, climate and soil type. There are records of terracing construction and planting legume crops for replanting area in 2012. There are records of bunch empty bunches utilization, such as the utilization of empty bunches in September 2012 as many as 353.53 tons applied on an area of 9.4 hectares in Division I block F008.


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.

Consistent with the first surveillance audit, there is a document on environment management for new plantation development (after 2005) covering an area of 1095.39 ha of which has been listed in the document revision of RKL/RPLand has been approved by BAPEDALDA Rokan Hilir district No.666.1/AMDAL-BAPEDALDA/2008/63 dated April 16th, 2008.In the document there are eight types of major and important impacts on the environment and social. Implementation of the RKL / RPL document is presented in the form of RKL / RPL report that conducted every 6 months. Please refer to major indicator 5.1.1. Analysis on HCV has been carried out in 2009-2010, right after the planting clearing. In order to comply the HCV analysis result, company has set a number of areas to be used for HCV / HCV potential. In the planted area been treated with a chemical-free treatment and habitat restoration through reforestation


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

Two soil maps show that in general in the area of PT. LTS there was no marginal soil and landslides categorized, and land with a high slope. Although there was no marginal land, the company has a strategy standard for marginal soil management and other critical soil (sandy soil, soil containing sulfuric acid, low organic matter content) based on the recommendation from Minamas Research center, such as: (i) Improvement of Mg nutrient status in the soil, (ii) Provision of curing materials, such as empty bunches should be applied to improve the physical, chemical, and biological properties of soil, especially to increase the cation exchange capacity, (iii) Increasing the amount of cover crop, to assist the fixation of N and protect the soil from direct rainfall and maintain soil moisture,(iv) Establishment of silt pit for un-flat up to waving topography to collect the erosion material as well as to collect water during dry season. PT. Lahan Tani Sakti also conducted the erosion reduction activity to reduce soil erosion by monitor the erosion and conserve the soil in accordance with EIA document by establish rorak-rorakbetween palm oil tree, empty fruit bunch application, cultivating the nephrolepsis biserata, and selective spray within the plantation area.


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


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stakeholders to express their views through their own representative institutions.

There is no new replanting or expansion of plantation area carried out by PT LTS outside the concession area which has been acquired since the beginning. There was only replanting activity that began in 2012. There is a social impact analysis document by POLITO, covering analysis on social aspect: the positive impact analysis (part 6.3.1) and negative impact (6.3.2) this social impact analysis contains the risk status (2.4 page 9) that covers the indicator from each risk factors, among other is risk factor for surrounding plantation area: the economic condition, road infrastructure, environment means and social means, risk factor on community’s welfare surrounding plantation area: education, health, unemployment and poverty rate. This social impact analysis was using the data collection method like structured interview and in-depth interview with local government and community, observation and collaboration between company and community. This can be proved by the vise book on the implementation of the analysis. There is also a record like village development program plan for 2012 that executed by PT. LTS and community in several villages surrounding plantation area, such as:

September 19th, 2012 in Sri Kayangan and Pondok Kresek village.

September 29th, 2012 inTanjung Medan Utara village. The short analysis also available for replanting impact that carried out by Aksenta consultant – Jakarta, 2012. This analysis describe the replanting stages and impact indicator from each replanting stages that can be affected environment and social condition in surrounding plantation and the replanting area, also completed with the attachment of impact projection and recommendation on replanting management in ALur Dumai Plantation - PT Lahan Tani Sakti. Through this analysis, it is expected that the sustainable palm oil management can always be improved


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

There is no new development or expansion of plantation within the area of PT LTS, only replanting activities.


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.

The company already has a policy on Zero Burning in plantation activities in the PT. LTS which is in Policy No. 724/TQEM-SPMS/09 point 5.7.2 regarding zero burning techniques. The company has also had an agronomy reference manual No. 110/EST-ARM/08 Section 4 Land preparation Clause 3.1 point (b) stating that the land clearing should refer to the Decree of Directorate General of Plantation No. KB.110/SK/DJ BUN/05.95 dated 30 May 1995. There are photographs of land preparation in Block C003 Division IV which was done through with felling, pole installation (pancang), and stacking. The activity was carried out using heavy equipment with zero burning technique. Reports on the work results of land preparation for replanting, such as in Block C001 on 8 May 2012: felling, stacking and chopping trees covering an area of 3 hectares (390 palm). Based on field observation in Block C003 (replanting area), the auditor did not find rest of land fire.


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.


ASSESSMENT REPORT


PT LTS has made continuous improvements such as through Mill Advisory and Plantation Advisory activities that conducted every 6 months by the internal team. The objective of this activity is to monitor and provide the improvement suggestions that should be done by the management unit for improvement. Things that have been done by PT LTS such as: 1. Sales of scrap metal from mill to a third party because the scrap metal has been accumulated quite a lot from mill

operations activity that would threat the health (mosquito breeding) and the hygiene of sanitation. 2. The company no longer used Paraquat material and prohibits its use since 2009.



ASSESSMENT REPORT


3.2. Summary of Assessment Report of Supply Chain

Klausul (Module D) Pabrik CPO – Persyaratan Segregasi

1 Prosedur terdokumentasi

1.1

Fasilitas harus memiliki prosedur dan/atau petunjuk kerja tertulis untuk memastikan penerapan semua elemen yang disebutkan dalam persyaratan ini Ini minimum termasuk hal-hal berikut a. Prosedur lengkap dan mutakhir yang mencakup penerapan semua elemen dalam persyaratan ini b. Nama orang yang memiliki tanggung jawab dan otoritas keseluruhan atas penerapan persyaratan tersebut dan

kepatuhan terhadap semua persyaratan yang berlaku. Orang ini harus menunjukkan kesadaran prosedur fasilitas untuk penerapan standar ini.

S-2 a. There is an SOP for Supply Chain (Supply Chain), No.025/LTS-SC/12) which was approved by Manager of Alur Dumai Plantation and mill on September 22nd, 2012 that aims to identify the raw materials and final products in order to figure out its relationship and the easiness to trace the product. The procedure is starting from the acceptance of raw materials (FFB), the process of production and product delivery to the buyers in PT. LTS. The form of supply chain applied on this procedure is the mass balance.

b. Officer in charge to ensure the implementation of this requirements, such as:

- Mill’s Manager

Store and maintain the entire documents and records on used raw materials, supporting materials during the production process and quality of final product.

Conduct the verification of product that sent by buyers by ensure that the product is in accordance with invoice, delivery order, sales contract and sign the minutes of product delivery note.

Provide an adequate training regarding the supply chain requirement for personnel that involved in supply chain from acceptance of raw material, production process, and storage and product delivery to buyers.

- Assistant of Plantation Sustainable Quality Management (PSQM)

Evaluate the quality of FFB in mill and drafting the daily recapitulation. Monitor the delivery and loading of palm oil. Analyze the test result of raw material and product quality on every stages of production. Store, maintain and distribute the analysis and test result on the raw material and product quality to

related party. - Assistant/Senior Assistant/Manager of Bulking is responsible on the CPO and PKO product transportation from mill

to bulking station.


1.2

Fasilitas harus memiliki prosedur terdokumentasi penerimaan dan pemrosesan TBS bersertifikasi dan non-sertifikasi.

S-2 Company has a mechanism for receiving fruit by require the driver to show fruit delivery note from each plantation and

contractor. The fruit delivery note explains the origin of fruit and its quantity.

SOP of palm oil mill endorse by Mill Controller on December 2011, including SOP for weight bridge station, loading ramp, boiler station, Tripler and Thresher, digester station, press station, oil room station, Depericarper station, Nut Cracker station, Kernel Silo, Dispatch of CPO, Dispatch of Palm Kernel, Boiler House, Power Plant. The work instruction for laboratory testing is also available and endorsed by mill’s manager at April 1st, 2011. Alur Dumai mill, LTS has a documented procedure from receiving to processing of the FFB to separate the certified and un-certified product by identified mill product through number and label identification on each stage.


ASSESSMENT REPORT



2 Pembelian dan penerimaan material

2.1

Fasilitas harus memverifikasi dan medokumentasikan volume TBS bersertifikasi dan non-sertifikasi yang diterima.

S-2 The processed FFB in Alur Dumai mill until now comes from nucleus plantation that has an RSPO certificate, so the entire product can be claimed as a RSPO certified palm oil. Alur Dumai Mill, LTS has a computerized document and program for accept the FFB, such as:

SPB of fruit delivery note and weight ticket that explain the number of weight ticket, number of SPB series, the origin of FFB, transport, date of harvest, spinning cut of fruit, year of planting, block, number of bunches, tones, number of vehicle, date of delivery.

SIME-weight program to figure out the information on FFB receipt, CPO, Kernel and other product.

Report of mill’s receipt that explains the accepted product, date of acceptance, the origin of plantation, vehicle number, driver, SPB number, number of weight ticket, date of delivery, in and out of weight hour, gross, out weight, netto. Plantation code (as Alur Dumai plantation / M459)

FFBGS program (Fresh Fruit Bunch Grading System) that explains the quality of incoming FFB based on FFB grading system result and able to inform the quality of FFB, set the CPO and Kernel production of each supplier.


2.2

Fasilitas harus menginformasikan CB langsung apabila ada produksi berlebihan yang diproyeksikan.

S-2 Alur Dumai mill, LTS can claim the certified product for a year time for CPO product amount 13,496 tones and Palm Kernel amount 3,053 tones for period of January 16th, 2013 until January 15th, 2014. During the second audit surveillance, the total CPO and Kernel generated by Alur Dumai mill since January 16th, 2013 until November 6th, 2013 for CPO amount 9,371.26 tones and Palm Kernel amount 1,984.61 tones. Until the audit surveillance, CPO and Kernel production that can be claimed as a certified product by Alur Dumai-LTS mill was not exceeding the projected amount, but the management of Alur Dumai-LTS mill is committed to provide information to Mutuagung Lestari if the CPO and Palm Kernel production is exceeded the projected amount. Alur Dumai POM-LTS, Minamas Plantation has conducting product registration for RSCPO certificate such as CSPO and CSPK through e-trace- UTZ.


3 Penyimpanan rekaman

3.1

Fasilitas harus menyimpan catatan akurat, lengkap, mutakhir, dan mudah diakses serta laporan yang mencakup semua aspek persyaratan tersebut.

S-2 Records and full report can be given by the company, contained in document:

The entire records and reports have been made and completely kept by the company. Document storage system in soft

copy is in a System Application Program (SAP), Sime-Weight Programme for weighing the FFB, CPO and Palm Kernel,

FFBGS (Fresh Fruit Bunch Grading System) to determine the quality of FFB to be processed, whereas in the hard copy

documents (print out) stored in the administration room of Alur Dumai.

Alur Dumai mill has a document of Daily Production reports that describes the entire aspects such as recording the accepted and processed FFB, the Quality and Capacity of CPO, the Quality and Capacity of Kernel, Delivery of CPO and Kernel, Production Stock of CPO and Kernel.


ASSESSMENT REPORT


For CPO and Kernel sale in Alur Dumai mill, document storage is done at the central office in Jakarta (Minamas Plantation) such as Contract document, Delivery and Invoice.


3.2

Waktu retensi semua catatan dan laporan harus paling tidak lima (5) tahun.

S-2 Has set a minimum shelf life of 5 years and shows records related to the recording of FFB acceptance until the oil storage in storage tanks like daily reports, the accepted and processed FFB, mill’s utilization, quality and capacity of CPO and Kernel, Quality of oil in storage tanks, Delivery data on CPO and Kernel (delivery Order) and document of Process Control Report set for 5 years. There is evidence document stored from 5 years ago, for instance: Fruit delivery note number T12592RC dated October 31st, 2008 that explains the harvest date, FFB was come from Alur Dumai plantation, block B-8 (260 bunches), FFB weight of 7,410 kg, vehicle number and endorse by weight bridge officer.


3.3 Fasilitas harus mencatat dan menyeimbangkan semua penerimaan TBS bersertifikasi RSPO dan kiriman CPO, KPO, dan inti sawit bersertifikasi RSPO dengan basis tiga bulanan

S-2 a) Alur Dumai mill-LTS has a mechanism for recording and balancing The accepted FFB (certified and un-certified) based on monthly and quarterly SPO Segregation document and supported by a computerized Weight bride System Program.

b) Total volume of certified and un- certified product has been prepared by the computerized Weight bride System Program for the calculation.

c) Segregation sale from the stock


3.4 Nama perdagangan berikut harus digunakan dan dijelaskan dalam dokumen terkait, misal: kontrak pembelian dan penjualan, misal: *nama produk*/SG atau Segregated. Model rantai suplai harus ditunjukkan dengan jelas.

S-2 Alur Dumai Mill, LTS shows Sales Contract document as below: a) CPO Product with Sales Contract Number 00093/LTS/KTR-MKS/LOK/IV/2013 dated April 18th, 2013 that explain

about the trade name of CPO (Crude Palm Oil) with a maximum Free Fatty Acid quality (As Palmitic) is 5%, maximum Moisture and Impurities is 0,5%, Quantity 145.000 kg

b) Palm Kernel Sales Contract Number 00114/LTS/KTR-IKS/LOK/XI/2013 on October 9th, 2013 that explains the trade name such as Palm Kernel, quantity of product amount 100,000 kg, with a Moisture quality, Impurities, Sales dirt maximum of 16%.

Based on document’s review, the document in the Sales Contract describes the Segregation of supply chain model and describe the product being sold is RSPO certified products, it has been in accordance with SOP of Alur DUmaimill.


4 Penjualan dan pengeluaran material

4.1

Fasilitas harus memastikan semua faktur yang diterbitkan untuk produk bersertifikasi RSPO mencakup informasi berikut:

(a) Nama dan alamat pembeli

(b) Tanggal faktur diterbitkan;

(c) Uraian tentang produk; termasuk model rantai pasok yang berlaku (Segregasi)

(d) Jumlah produk yang dikirimkan

(e) Referensi terhadap dokumentasi transportasi terkait


ASSESSMENT REPORT


S-2 PKS Alur Dumai, LTS has ensured that the entire invoice issued for oil palm delivery is containing the required information such as invoice Number 00205/LTS/IV/2013 for CPO product that describes:

a) Buyer name; PT. Intibenua Perkasatama that located in Spring Tower 02-21 JL.KL Yos Sudarso, Tanjung Mulia, Medan, Sumatera Utara - 20241.

b) Invoice issued at April 22nd, 2013 c) Description of product such as Crude Palm Oil, explain that the type of product is certified with RSPO Mass

Balance. d) Total product that delivered is amount 145,000 Kg e) Delivery and transportation agreed is CPO in bulk, that buyer will taking the material in sale location.


5 Pemrosesan

5.1

Fasilitas harus memastikan dan memverifikasi prosedur dan penyimpanan catatan jelas minyak sawit bersertifikasi RSPO disimpan terpisah dari bahan non-sertifikasi pada saat transportasi dan penyimpanan dan dapat menunjukkan bahwa fasilitas telah melakukan semua langkah bertanggung jawab untuk memastikan kontaminasi dihindari. Targetnya adalah 100% bahan terpisah tercapai. Sistem harus menjamin standar minimal 95% bahan fisik terpisah9; hingga 5 % kontaminasi diperbolehkan.

S-2 Transportation usage and storage for certified product by LTS-Alur Dumai has used a system that ensures the delivered and storaged product (CPO and Kernel) has no contamination. More over the LTS Alur Dumai POM only process the FFB from certified nucleus plantation and not received FFB from other sources


5.2

Fasilitas harus menyediakan bukti terdokumentasi bahwa minyak sawit bersertifikasi RSPO dapat dilacak kembali ke bahan segregated bersertifikasi saja.

S-2 Alur dumai mill able to present a systematic document that made the production is traceable up to the source of raw material through Weight Bridge System Teluk Siak only process material from nucleus plantation (certified plantation) and not received FFB from other sources.


5.3

Dalam kasus di mana pabrik meng-outsource aktivitas ke penghancur inti sawit independen, penghancur masih tanggung jawab pabrik dan tidak harus disertifikasi secara terpisah. Pabrik harus memastikan bahwa:

Operator penghancur mematuhi persyaratan pemisahan

Operator penghancur tercakup melalui perjanjian yang ditandatangani dan dapat dilaksanakan

S-2 Alur Dumai Mill, LTS only sales palm kernel to third party and did not have partnership with Kernel Crushing Plant management.


6 Training / Pelatihan

6.1

Fasilitas harus menyediakan pelatihan untuk semua staf sesuai yang diharuskan untuk menerapkan persyaratan Sistem Sertifikasi Rantai Suplai.

S-2 Alur Dumai mill, LTS has conducted training on certification of RSPO supply chain system at September 9th, 2013 that presented by the Department on Sustainability Quality Management Plantation (ESH Manager) which attended by 16


ASSESSMENT REPORT


personnel from plantation and mil.


7 Claims

7.1

Fasilitas hanya harus melakukan klaim mengenai penggunaan atau bantuan minyak sawit bersertifikasi RSPO yang patuh terhadap Peraturan RSPO tentang Komunikasi dan Klaim.

S-2 Alur Dumai mill, LTS able to show the claim to support the certified RSPO palm oil in accordance with RSPO Guidelines for Communication and Claims which stated in the Sales Contract, Delivery Order and Invoice.



ASSESSMENT REPORT


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

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

S-2

LTS has had approval / permit to use the certificate with the number MUTU-RSPO/011 and

Confirmation Letter “Sertifikat RSPO dan Aturan Penggunaan Logo” No.172.19/MUTU/I/2012. √

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

S-2

The Company does not use the logo on-product and off-product in the scope of PT Lahan Tani

Sakti. √

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

S-2


Sakti. √

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

S-2


Sakti. √


ASSESSMENT REPORT


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

The Management Unit name, under subsidiaries:

2.1

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

X or√

The entire units operating under the SIME DARBY organization (subsidiary) carry out the certification process according to TIME BOUND PLAN.

√

2.2

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

X or√


√

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√


√

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√


√

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√


√

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√


√

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√


√


ASSESSMENT REPORT


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

During the surveillance -2 assessment, there were 2 (two) nonconformities were assigned against Major Compliance Indicator; 2 (two) nonconformity was assigned against Minor Compliance Indicator, 9 (nine) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to close all non-conformities shall be verified during next assessment.

3.5.1. Identification of Findings, Corrective Actions and Observations at Surveillance-01 Assessment

CAR No

Ref Std

Finding Location Grade Time Limit

Corrective Action Observation Status Closing

Date

During the Surveillance-01 assessment there is no nonconformance identified

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

CAR No

Ref Std



Date

2013.01

Major 5.1.2

Social component in RKL – RPL report There is a component for environment monitoring that required by the EIA document which not included on the regular report of RKL-RPL such as: monitoring on number of local personnel that recruited by plantation and monitoring on health of surrounding community. .

PT LTS Major 07 January

2014

Company must be able to present the regular report on environment impact which covering the entire aspect that required by the environment impact analysis (EIA) document including the social aspect such as recruitment for local personnel and monitoring on health of surrounding community.

Root Cause: - Personnel health data was sufficient

to represent the health data of surrounding community according to the EIA (without entering data of surrounding community).

- The absorption of local personnel described only in general and considered already sufficient without entering the number quantitatively

Coreective action: - The secondary data on surrounding

community’s health taken from Puskesmas and Polindes

Closed 16 December

2013


ASSESSMENT REPORT


CAR No

Ref Std



Date

- Insert figure % or the number of local personnel in RKL / RPL report.

- Revise the RKL / RPL report by including the above items and report back to the relevant agencies

Preventive action: PSQM team ensures that the above issues will consistently stated in RKL/RPL report for the next period and delivered to related agencies.

2013.02

Major 5.3.2.

Waste leakage from mill’s waste water pond Field visit shows that there is a waste water leakage from waste water pond (pond 3A/ application pond) from mill to surrounding environment. This is not in accordance with regulation that stated in land application permit and company waste management plan

IPAL PKS

Major 07 Januari

2014

Company should be able to present that there is no waste water leakage from mill to surrounding environment.

Root Cause: The high of rainfall caused the volume of wastewater in application ponds to increase and overflow. Corrective action:

Have done the pumping for land applications

Dike in the application pond 3A have been elevated to prevent overflow of waste water in application pond

Installation of indicator level

Ensure the waste pond level is >50 cm, measure from the surface of the dike.

Conducting water quality testing in three location (effluent treatment, trench upstream and trench after Land Application in block F-10)

Closed 16 December

2013


ASSESSMENT REPORT


CAR No

Ref Std



Date

Preventive action:

Checklist on the waste ponds to be remain monitored by ADF mill’s staff to ensure the actual conditions of entire waste and send the updates to the management.

Ensuring the high-level of waste ponds are in accordance with the safe level.

Ensure the land application pump well functioning.

The entire documentary evidences in the form of photos and improvement records have been shown by the certificate holder and were available.

2013.03

Minor 6.1.1

Record on management plan and monitoring on social impact by involving regular participation from the community There is a document of management plan on social impact toward community, Alur Dumai plantation SoU 16 year 2012/2013 but the provide evidence on whether it was drafted by involving community was not sufficient

PT LTS Minor S-3 Company should be able to present the management plan and monitoring on social impact has been implemented by involving regular participation from the community.

Root cause: Corrective action: Prventive action:

Open

2013.04

Minor 6.2.3

Performance of consultation and communication officer Based on interview and consultation

PT LTS Minor S-3 Company should be able to present the effective implementation of consultation

Root cause: Corrective action:

Open


ASSESSMENT REPORT


CAR No

Ref Std



Date

between stakeholders and community (Pondok Kresek and Sri kayangan village) that community did not known that company has a communication and consultation officer. Community explain that they only knew that complains and consultation should be addressed to the plantation manager.

and communication toward community by pointing special officer.

Prventive action:


ASSESSMENT REPORT


3.5.3 Opportunity for Improvement

No Ref Std Deskripsi

1 Major 2.2.2.

Numbering for Land used title poles. Company has to increase its performance by ensuring the accuracy of stakes numbering in accordance with the applicable land used title map.

2 Major 2.2.3

The progress of conflict resolution. Resolution for land compensation on behalf of Suparno and friend for an area of 6 ha (Division 1, block D-013) has been claimed and cultivated by company will become the observation material for the next surveillance.

3 Major 4.4.1

Inventory of peat land. Company is encouraged to conducting the inventory of existence peat land within the plantation area in order to be able to formulate the appropriate land management actions.

4 Minor 4.4.3

Monitoring on Water use Monitoring on water use can be supported with the proper functioning of the water discharge recording device (flow meter).

5 Minor 4.7.7

First aid training evaluation. Evaluation on the effectiveness of first aid training has delivered to representatives of all divisions in the mill and plantation, for instance for first-aid officer in Workshop

6 Minor 5.2.2

Delineation of HCV areas. Realization on the entire delineation of HCV areas including hot springs source in block N001

7 Major 5.5.2

Socialization on Zero Burning. Policy on Zero Burning can be strengthening through an active socialization to related party that related with company’s operation area.

8 Major 6.5.2

Socialization of collective labor agreement Socialization of collective labor agreement can be done in a more intensive way by collaborating with workers union board, so personnel know their rights.

9 Minor 6.11.

Community Development/ Corporate social responsibility program Company may increase the CD/CSR program by create a program that in accordance with community’s basic need.


ASSESSMENT REPORT


3.5.4 Noteworthy Positive Components

No Ref Std

Deskripsi

1 Company’s commitment to implement the management principle for sustainable palm oil

2 Have a Zero Accident certificate for 2012 from ministry of labor and transmigration of Republic of Indonesia.


ASSESSMENT REPORT


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

Isu dari Publik Tanggapan Manajemen Tanggapan Auditor

1. National land agency of Rokan Hilir District

1. Company has a responsibility to maintain land used title stakes in accordance with stakes book.

2. Until now, there is no land conflict within the PT. LTS

being reported. 3. Land conflict resolution should be done through

negotiation (prioritize) and national land agency has a role as a mediator if needed.

4. Until now, there is no indigineous land in Rokan Hulu area.

Total area of land used title of PT LTS is 3.759,014 Ha

1. Until the second surveillance, company has maintained the boundary stake as well as replaces the missing stakes.

2. A Land conflict in PT LTS has settled by negotiation process and the resolution are available.

3. Land conflict in PT LTS has settled by negotiation process and not requires mediation from national land agency.

4. In Pujud area including the PT LTS, there is no indigenous/ traditional land.

Total area for land used title of PT LTS is 3.759,014 Ha, contains of land used title No. 3 (3187, 579 ha) dated January 19th, 2001 and No. 4 dated December 19th, 2000 (covering an area of 571,435 Ha)

Response from certificate holder has beenin accordance with the evidence presented

2. Labor agency of Rokan Hilir DIstrict

1. There is a Notification of examination results for Boiler PJK3 that informs the need to shut down the boiler operation and labor agency has agreed.

Repair history of boiler combi, Edvan Brand:

Report on examination result of steam Katel from labor agency at March 16th, 2012, recommends boiler to be repair.

Plumbing repair has been done twice during period of March to April 2012.

Head of Plantation Upstream Indonesia has been agreed to change water plumbing and tube plate in the budget for period of 2013/2014 and can be implemented starting in July 2013. Capital Expenditure Budget No. M2014/9459/000000767; Capex X2014/9459/MADF9BR8UL; status Approved.

Minutes of meeting with EMS PKU to discuss the alleged damage because the average working pressure is 14 bars

Response from certificate holder has been in accordance with the evidence presented


ASSESSMENT REPORT


while the normal working pressure is 21 bars and a Safety Issue (tube has had a plate cracking and plumbing leakage).

The company makes replacement pipe schedule advance for combi boiler in August 2013 and has approved by the Mill Manager and is known by GM of North Riau and Aceh Mills. Improvement process was planned from November to January 2014.

Company has submitted minutes of boiler examination (inspection certificate No. 0035 on steam katel No. 03/A.0001/560/DTK-PK/III/2007) at September 30th, 2013 by PT Putra Teknindo Inspection (examiner, Mr. H. Aziar who had certificate on occupational health and safety for steam and pressure machine No. KEP. 222/M/DJPPK/XII/2012) with results such as: There are leakages on fire tube with diameter 76,2 x 3,6

mm and 76,2x6,3 mm amount ±8 bars. Tube Plate has crack. There is also a pipe that had been welded due to

previous leaks. Its advised that boiler should not be operated prior to

the replacement of the tube plate

Examination on the contractor (PT Technindo Contromatra) as a candidate for the boiler work executor on October 8th, 2013 to determine the details of the type of repair work to be done

Company is still in the process of selecting the contractor.

1. Personnel in the mill are given wages and do other

work outside the process.

2. Highlights from District and Provincial Labor agency related to the use of child labor on plantations during holidays.

3. Company has regularly reported the entire

1. Mill’s personnel has been employed for other activities outside the process and still get an adequate wages.

2. Company did not hired children under 18 years old. 3. Company has regularly reported the first aid activity report

that stated on guiding committee of occupational health and safety report that submitted every 3 months.

4. Company has regularly conducted periodic medical examination for personnel every 6 months.

1. Based on work realization book for period October 2013, there were work diversions, for instance operator for loading ramp, operator boiler and Clarification operator on October 1-31will also in charge to do the floor hygiene work, cleaning the machines, washing the door of ramp loading, washing storage, assisting security for watchmen work, assisting the


ASSESSMENT REPORT


occupational health and safety activities on guiding committee of occupational health and safety report that submitted every 3 months.

4. Company has conducted periodic medical examination for personnel

5. All correspondences from Labor agency has been responded.

6. Company has had a physician who hold a hyperkes certificate.

7. Hazardous material in company has completed with

LDKB. Secretary of guiding committee of occupational health and safety (first aid expert) regularly conducted consultation with supervisor every time submitting the guiding committee of occupational health and safety report.

5. Company always response the entire letters from stakeholders and coordinate with related agency.

6. Company has physician that follow the hyperkes training (dr Rudi Sebastian).

7. Company’s hazardous material has completed with LDKB and stored in hazardous material warehouse.

8. Secretary of guiding committee of occupational health and safety (Mr. Darul Walidi) has regularly conducting consultation every time submitting the guiding committee of occupational health and safety report.

maintenance and mill’s sanitation hygiene. Wages paid to related personnel, for instance Mr. Suaji (SKU monthly Boiler Operators group F) is above the regional minimum wages.

2. Based on personnel data of PT. LTS for period of October 2013 and field observation, there is no personnel under 18 years old. The youngest personnel born at August 4th, 1994 named Heri susanto (loading officer, Staff No. 0000086144).

3. There is an evidence on the submission of guiding committee of occupational health and safety report that delivered every 3 months by the secretary of guiding committee of occupational health and safety to labor agency.

4. Company is expected to keep its consistency on medical examination for personnel every 6 months.

5. Company should response the entire letter from stakeholders and coordinated with related agencies.

6. Company has a physician (dr Rudi Sebastian) who had a hyperkes certificate.

7. Based on observation in hazardous waste warehouse, there is a LDKB for each material.

8. The guiding committee of occupational health and safety report has been submitted every 3 months by the secretary of guiding committee of occupational health and safety and conducted consultation with labor agency.

Plantation Agency of Rokan Hilir District


ASSESSMENT REPORT


Head of agriculture sector stated that during the plantation evaluation, company did not has the permit to convert the rubber plantation into palm oil plantation yet.

Company has proposed a request to convert the plantation type to the director general of plantation and there is a response letter from director general of plantation, through letter No. 2385/PD.320/E1/7/2010 and copied to head of plantation agency which stated that the company has no obligation to submit an approval request for the conversion of plantation type because the company is still in accordance with the applicable regulations stated in the SPUP, company still operate in plantation business, regardless what type of plant.


Environmental Impact Control Agency (BAPEDAL) of Rokan Hilir District

1. Company has submitted the regular report to Bapedal (RKL/RPL report, waste water report and hazardous waste report).

2. Company has no obligation to conduct the monitoring/ management on the replanting impact if there is no recommendation stated in the EIA document.

3. Permit related to Bapedal are complete. 4. There is no report on environment pollution as

an impact from PT. LTS operation.

1. Company has submitted regular report to Bapedal (RKL/RPL report, waste water report and hazardous waste report

2. Company has had the Social Environment Impact Assessment.

3. Company has completing the environment permits and in accordance with the applicable regulation.

4. Company always keep and monitor the operational impact in order to prevent the environmental pollution.


Sri Kayangan Village:

Head of Village (Edi Suprapto)

Vilage Sevretary (Sumardi)

Leader of Vilage Representative (L. Manalu)

Head of Dusun Ampat (Suheri)

Informal Leader (Tarsan) The management of PT LTS has been implemantation of program to communties, for instance:

- Road maintenance in village area - Contribution to religion ceremony (Ied Mubaroq)

PT LTAS will improve the community development program. Based on interview there is a lack of communication and information receive y the company, these issues were raised as non conformance. See criterion 5.3


ASSESSMENT REPORT


Positive issue:

- The land claim by a few the community member in Sri Kayarangan Village it has been follow up to overcome by the management of PT LTS.

- There is no claim from communities hitherto in relation of land compensation.

Negative issue :

- The village government is not yet knowing the personal has pointed by the management unit of PT LTS as human relation. These condition is cause of limited information among communities to acces the informatin about plantation & mill operation (particularly related of cooperation program between company and the communites).

- The government of village had propose of aid for teacher salaries to PT LTS but there is not yet response by the company.

Aspiration:

- The expectation of communities adjacent the plantation area is easy to access information about working opportunities from the company.

Head of neighborhood 4 (enclave) Mr. Udin

- There are 20 independent smallholders that have plantation surrounding the plantation area of PT. LTS

- Smallholders knew the boundaries between their plantations with PT LTS because there is a trench establish by the company to separate their plantation with PT LTS plantation. These smallholders received this condition.

The company policy right now is not receive the FFB from other source (smallholders) due to the low mill capacity is enough for own estate FFB to processed.

Alur Dumai POM, LTS is only process capacity 15 Tonnes FFB/hours only able to processed their own estate FFB.


ASSESSMENT REPORT


- Independent smallholders can utilize the road inside the plantation for to access surrounding village.

Committee of workers union – Alur Dumai Palm oil mill Chairman (Findo) Secretary (Junaidi Purba) Treasure (Dudi)

- There are 39 members of mill’s workers union and 5 committees.

- Regular meeting usually conducted during holiday - Periodic meeting between member and committee

conducted every semester and on the annual meeting.

Positive issues:

- The recent wages received by personnel already in accordance with the applicable regulation (based on the applicable provincial minimum wage)

- Facilities for personnel are considered adequate.

Negative issues: - There are some working devices/ tools that usually

been late acquired by personnel (for instance safety boot).

- Referral from management sometimes hard to understand by personnel, especially personnel on the lower level.

Aspiration: Communication technic is required in order to make personnel especially on a lower level able to understand the referral from management.

Company always tries to improve the PPE fulfillment to the workers. Company will improve the communication officer skill.

Based on observation company provide the workers with adequate PPE.


ASSESSMENT REPORT


Committee of workers union – Alur Dumai Plantation Chairman (Mahdani) Secretary (Herdianto)

- There are amount 600 members of workers union in Alur Dumai plantation.

- Regular meeting conducted every 3 months to discuss some obstacles faced by the personnel

- On the recent organ gram, there is 1 person as a representative from each division (4 divisions)

Aspiration:

- emplacement repair on housing area in division 3 - Medical service with an accessible and faster

administrative system.

LTS will improve the administarion system regarding the medical service and will repair the worker house at division 3.

The worker union was actively performing their role. Company provide adequate housing and medical service to the workers

Head of gender committee of PT Lahan Tani Sakti - There is a representative from each division in

gender commission committee of PT LTS. - Responsibility of this committee is to resolves

issues related to female personnel’s right for instance: in case of domestic conflict.

- Work plan of this committee such as mother and child health care through collaboration with plantation clinic, prevent sexual harassment toward female personnel as well as to prevent the drugs abuse.

Aspiration: Committee expects that there will be assistance from company for operation cost.

Company will provide assistance for company Gender Commettee to perform their role.

Company Gender Commettee actively perform their program to the female workers and wife workers.


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:

Head of PSQM

Mutuagung Lestari

Minamas Plantation

Lead Auditor Witnessed

Mohamad Pirabaharan

Octo HPN Nainggolan

16 November 2013

16 November 2013


ASSESSMENT REPORT


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

No Institution/NGO/Community Address Phone/Email Form of Contact

Date of Contact

1 Lands Agency of Rokan Hilir

Bagan siapai-api -

Direct Consultation

6 November

2013

2 Labour Agency of Rokan Hilir

Bagan siapai-api -

Direct Consultation

6 November

2013

3 Plantation Agency Of Rokan Hilir

Bagan siapai-api -

Direct Consultation

6 November

2013

4 Environment Agency of Rokan Hilir

Bagan siapai-api -

Direct Consultation

6 November

2013

5 Harvesting Transport

Contractor (CV Arimbi)

Tangga Batu village, Pujud

- Direct

Consultation

6 November

2013

6 Village Head of Pondok

Kresek

Pondok Kresek Village -

Direct

Consultation

6 November

2013

7 Village Head of Sri Kayangan

Sri Kayangan Village -

Direct

Consultation

6 November

2013

8

NGO WALHI

Jl. Katio No. 03 Kel. Tangkerang Tengah Kec. Marpoyan Damai, Pekanbaru - Riau.

Telp : 0761-25646, HP:

081276699967, Email:

[email protected]

Email 9 October

2013

9

NGO Scale Up

Jalan Angsa II No. 17a, Kelurahan Kampung Melayu, Kecamatan Sukajadi, Kode Pos 28124, Pekanbaru-Riau-Indonesia

Tel : 0761-4883131. Tel/Fax : 0761-39954. E-Mail : [email protected]

Email 9 October

2013

10

NGO Yayasan Hakiki

Jl. Beringin 53 C Gobah Pekanbaru 28000, Riau,

Telp. (0761) 26514, Fax. 32005, email : [email protected], Ibu Devi HP 08121102500.

Email

Email 9 October

2013



ASSESSMENT REPORT


DATE / TANGGAL 5 – 9 November 2013

PLANNED TIME RENCANA WAKTU

ACTUAL DURATION DURASI AKTUAL

PROCESSES / CLAUSES TO BE AUDITED PROSES / HAL YANG DIAUDIT

AUDITOR

Tuesday/Selasa, 5 November 2013

08.30 - 10.30

11.00 – 18.00

08.30 - 10.30

11.00 – 18.00

Jakarta - Pekanbaru Pekanbaru – Rokan Hilir (PT LTS)

ON & ASI / OR / MES / BB


Wednesday/Rabu, 6 November 2013

06.30 – 15.30

08.00 - 08.30

08.30 – 12.00

14.00 – 17.00

06.30 – 15.30

08.00 - 08.30

08.30 – 12.00

14.00 – 17.00

Stakeholders consultation to Related Government Institution (Rokan Hilir District Government and local NGO)

Opening Meeting

Stakeholders consultation to Nearest village andd community leader (Pondok Kresek and Sri Kayangan Villages)

Document Review and Review of Previous Visit Non-conformance (surveillance-1 and Stage-2)

MES / BB

ON & ASI / OR / BB

ON & ASI / OR / BB


Thursday/Kamis, 7 November 2013

08.00 – 12.00

08.00 – 12.00

Field Observation:

a. Alur Dumai Legal operational and Conservation Area

b. Alur Dumai Estate Manuring, Spraying, Harvesting, best agricultural practices

OR / BB

ON & ASI / MES

12.00 – 14.00 12.00 – 14.00 BREAK

14.00– 17.00 14.00 – 17.00 Alur Dumai POM : WWTP (IPAL), Operational, K3 (OHS),

Supply Chain

Alur Dumai Estate

Worker facilities (housing, health clinic, clean water, etc)

Land Fire facilities, Storage, ect..

ON & ASI / BB

OR / MES

17.00 – 19.00 19.00 – 21..00

Continue checklist and audit finding preparation

Closing Meeting



Friday/Jumat, 8 November 2013

08.00 – 17.00 08.00 – 17.00 PT LTS (Alur Dumai) - Pekanbaru ON & ASI / OR / MES / BB

Saturday/Sabtu, 9 November 2013

11.00 – 13.00 11.00 – 13.00 Pekanbaru - Jakarta ON & ASI / OR / MES / BB

Appendix 2. Assessment Plan


ASSESSMENT REPORT


Appendix 3. Glossary

ADE : Alur Dumai Estate

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

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

ASEAN : Association of South East Asian Nations

B3 : Bahan Beracun dan Berbahaya (Hazardous Material Waste)

BOD : Biological Oxygen Demand

CPO : Crude Palm Oil

CBD : Convention on Biodiversity

HCV : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Hak Guna Usaha. (Land Use Permit)

IUP : Izin Usaha Perkebunan. (Plantation Operation Licence)

IPAL : Instalasi Penyaluran Air Limbah (Installation of Waste Distribution)

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

Jankos / EFB : Janjangan Kosong / Empty Fruit Bunch

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

KER : Kernel Extarction Rate

LC : Land Clearing

OER : Oil Extarction Rate

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

PK : Palm Kernel

PKS / POM : Pabrik Kelapa Sawit / Palm Oil Mill

POME : Palm Oil Mill Effluent

PSD : Plantation Services Departement

PSQM : Plantation Sustainability and Quality Management

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

SOP : Standart Operating System

S-01 : Surveillance 1

TBS / FFB : Tandan Buah Segar (Fresh Fruit Bunches)

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