surveillance [ ] - rspo · surveillance [ ] re-assessment plantation management/owner : golden agri...

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management/Owner : GOLDEN AGRI RESOURCES Ltd.

Plantation Name : PT SUMBER INDAH PERKASA (SUNGAI RUNGAU POM), PT BINASAWIT ABADIPRATAMA (Sungai Rungau Estate, Terawan Estate, Sungai Seruyan Estate, Tangar Estate and Bukit Tiga Estate)

Location :

Rungau Raya Village, Danau Seluluk Sub

District, Seruyan District, Kalimantan Tengah

Province

Certificate Code : MUTU-RSPO/029

Date of certificate issue : August 26th, 2013

Date of expiry of certificate : August 25th, 2018

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

by

ST2 17 - 22 December 2012 Oktovianus Rusmin, Taufik Margani,

Muardi Marwas, Moh. Arif Yusni, Naila Karima

Octo HPN Nainggolan

Tony Arifiarachman

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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Submitted to RSPO on:

Approved by RSPO on:

Approved by Certification Body on:

May 30th 2013 August 20th 2013 August 26th 2013

http://www.mutucertification.com/

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a. 5 2

Prepared by Mutuagung Lestari for Sungai Rungau POM, Sumber Indah Perkasa and Binasawit Abadipratama

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Sumber Indah Perkasa – PT Binasawit Abadipratama Figure 2. Location Map of PT Sumber Indah Perkasa – PT Binasawit Abadipratama

3 4

1.0 ASSESMENT SCOPE 5

1.1 National Interpretation Used 5

1.2 Organization Information 5

1.3 Type of Assessment 5

1.4 Location of Plantations, Mill and Area Statement 5

1.5 Description of Supply Base 6

1.6 Dates of Plantings and Cycles 7

1.7 Approximated Tonnage Certified 7

1.8 Other Certifications 8

1.9 Time-Bound Plan for Other Management Units 8

2.0 ASSESSMENT PROCESS 10

2.1 Certification Body 10

2.2 Assessment Team 10

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 10

2.4 Stakeholder Consultation and List of Stakeholders Contacted 13

2.5 Determining next visiting 13

3.0 ASSESSMENT RESULTS

3.1 3.2

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

14 46

3.3 Conformity Checklist of Certificate and Logo Use 50

3.4 Summary of RSPO Partial Certification 51

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

53

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 59

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 63

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 64

2. Assessment Program 65

3. Glossary 67


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Figure 1. Location Map of PT Sumber Indah Perkasa

Sungai Rungau POM


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Figure 2 Location Map of PT Binasawit Abadipratama

PT. MUTUAGUNG LESTARI

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1.0 ASSESSMENT SCOPE

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 Golden Agri Resources Ltd.

1.2.2 Contact person Ismu Zulfikar

1.2.3 Company address and site address Company Address : Sinar Mas Land Plaza, Tower II, 30th Floor Jl. MH Thamrin No. 51, Jakarta 10350, Indonesia Phone: +62-21-5033 8899. Fax: +62-21-5038 9999 Site Address: Rungau Raya Village, Danau Seluluk Sub District, Seruyan District, Kalimantan Tengah Province

1.2.4 Telephone (+62-21) 318 1388

1.2.5 Fax (+62-21) 318 1389

1.2.6 E-mail [email protected]

1.2.7 Web page address www.smart-tbk.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

Ismu Zulfikar (Head of Environmental Department)

1.2.10 Registered as RSPO member 17 June 2008 (1-0096-11-000-00)

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm Oil Mill and supply base

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT Sumber Indah Perkasa – PT Binasawit Abadipratama

1.3.4 Number of management unit 1 (one) Palm Oil Mill unit PT Sumber Indah Perkasa and 5 (five) supply bases (PT Binasawit Abadipratama)

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS Latitude Longitude

Sungai Rungau Mill Rungau Jaya Village, Danau Seluluk Sub district, Seruyan District, Kalimantan Tengah Province

20 19‟ 14.2” 1120 20‟ 2”

1.4.2 Location of Supply Base

Name of Supply Base Location GPS

mailto:[email protected]

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


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Latitude Longitude

Sungai Rungau Estate Rungau Raya Village, Danau Seluluk Sub district, Seruyan District, Kalimantan Tengah Province

20 19‟ 44” 1120 18‟ 57”

Sungai Seruyan Estate Rungau Raya Village, Danau Seluluk Sub district, Seruyan District, Kalimantan Tengah Province

20 18‟ 32” 1120 15‟ 28”

Terawan Estate Selunuk Village, Seruyan Raya, Seruyan Sub district, Kalimantan Tengah Province

20 20‟ 43” 1120 22‟ 43”

Tangar Estate Rungau Raya Village, Danau Seluluk Sub district, Seruyan District, Kalimantan Tengah Province

20 13‟ 45” 1120 17‟ 34”

Bukit Tiga Estate Rungau Raya Village, Danau Seluluk Sub district, Seruyan District, Kalimantan Tengah Province

20 11‟ 1” 1120 19‟ 20”

1.4.3 Tenure

Private -

State 20,152.79 Ha

Community -

1.4.7 Area Statement

Total area 20,152.79 Ha

Mature area 18,062.09 Ha

Immature area - Ha

Mill & Emplacement 180.00 Ha

Road & Bridge 679.53 Ha

Swamp & Drain 515.97 Ha

Nursery - Ha

Air Strip 9.18 Ha

Others area 706.02 Ha

HCV 1,503 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 (%)

Sungai Rungau Mill

80 539,494 129,290.41 23.96 29,142.95 5.39 - -

*Source Production December 2011 - November 2012

1.5.2 Description of Estates

Name of Estates Total Area Planted Area FFB Yield Supplied to Mill


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(Ha) (Ha) (tonnes/year) (tonnes/ha/year) FFB (tonnes/year)

%

Sungai Rungau Estate 3,073.15 2,881.28 97,336.36 33.78 96,993.47 99

Sungai Seruyan Estate 4,870.84 4,209.65 131,945.57 31.34 96,545.58 73

Terawan Estate 4,481.87 4,327.91 143,727.89 33.20 56,131.93 39

Tangar Estate 4,445.15 4,014.84 131,361.46 32.71 128,364.61 97

Bukit Tiga Estate 3,281.78 2,628.41 85,371.52 32.48 83,270.20 97

TOTAL 20,152.79 18,062.09 589,742.80 32.70 461,305.79 78

*Source : Production Data December 2011 - November 2012 *35,400.02 tonnes FFB was processed in Hanau Mill - PT Tapian Nadenggan and 93,037.08 tons of FFB was processed in Perdana Mill - PT Binasawit Abadipratama.

1.5.3 Smallholders and other source

Name of sources Member(\s) Location

Total Area (Ha)

FFB (tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

PT Tapian Nadenggan-PT Buana Artha Sejahtera

_ Kalimantan Tengah

15,064 _ 12,588.53 _

PT Mitra Karya Agroindo

_ Kalimantan Tengah

14,212 _ 65,599.92 _

TOTAL 29,276 78,188.45

* Source : Production Data December 2011 - November 2012 * The company does not receive FFB from other sources such as independent smallholders * PT Tapian Nadenggan - PT Buana Artha Sejahtera and PT Mitra Karya Agroindo are under manage of Golden Agri Resource (GAR) .

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 years

Hectarage

Sungai Rungau Estate

(Ha)

Sungai Seruyan Estate

(Ha)

Terawan Estate (Ha)

Tangar Estate (Ha)

Bukit Tiga Estate (Ha)

Total (Ha)

1996 - 249.51 852.98 - - 1,102.49

1997 490.48 1,667.79 883.41 333.02 - 3,374.7

1998 621.20 1,061.53 1,270.43 1,411.72 444.54 4,809.42

1999 582.05 1,230.82 360.73 764.61 575.77 3,513.98

2000 933.20 - 960.36 1,046.99 84.72 3,025.27

2001 183.30 - - 85.34 311.26 579.9

2004 - - - 148.34 415.32 563.66

2005 71.05 - - 224.82 796.80 1,092.67

Total (Ha) 2,881.28 4,209.65 4,327.91 4,014.84 2,628.41 18,062.09

1.6.2 New Planting area after November 2007 - Ha

1.6.3 Planting Cycle 1st Cycle 25 Years


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1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production - Tonnes/year

CPO Production - Tonnes/year

Palm Kernel (PK) Production - Tonnes/year

Palm Kernel Oil (PKO) Production -

Tonnes/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estates Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Sungai Rungau Estate 3,073.15 2,881.28 78,301 27.17

Sungai Seruyan Estate 4,870.84 4,209.65 111,684 26.53

Terawan Estate 4,481.87 4,327.91 112,602 26.02

Tangar Estate 4,445.15 4,014.84 107,892 26.87

Bukit Tiga Estate 3,281.78 2,628.41 69,985 26.62

TOTAL 20,152.79 18,062.09 480,464 26.60

1.7.3 Claim Certified Tonnage of Palm Product

Name of

Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Sungai Rungau Mill

80 480,464 119,155.07 24.8 24,023.20 5 - -

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 ISCC (International Sustainability Carbon Certification)

1.9 Time Bound Plan for Other Management Units

Management Unit

Location Hectarage (Ha) *) Time Bound Plan Status

PT Sawit Mas Sejahtera Sumatera Selatan 4,782 2013 2013

PT Bumi Sawit Permai Sumatera Selatan 5,009 2013 2013

PT Djuanda Sawit lestari Sumatera Selatan 10,172 2013 2013

PT Sumber indah Perkasa Kalimantan Tengah 18,873 2013 2013

PT Bumi Permai Lestari Bangka Belitung 5,489 2013 2013

PT Forestalestari Dwikarya Bangka Belitung 9,432 2013 2013

PT Sinar kencana Inti Pekasa Kalimantan Selatan 8,084 2014 2014

PT Sumber Indah perkasa Lampung 14,994 2014 2014

PT Sumber Indah perkasa Lampung 8,451 2014 2014


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PT Sinar Kencana inti Perkasa

Papua 13,328 2014 2014

PT Purimas Sasmita Kalimantan Selatan 5,394 2014 2014

PT Agro Lestari Mandiri Kalimantan Barat 8,213 2014 2014

PT Kencana Graha Permai Kalimantan Barat 10,464 2014 2014

PT Mitra Karya Agroindo Kalimantan Tengah 19,876 2015 2015

PT Binasawit Abadi Pratama Kalimantan Tengah 14,001 2015 2015

PT Agrokarya prima Lestari Kalimantan Tengah 16,784 2015 2015

PT Paramita Internusa Pratama

Kalimantan Tengah 10,789 2015 2015


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2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

Jl. Raya Bogor Km 33,5 No. 19, Cimanggis - Depok 16953

Telp. +62-21-8740202; Fax +62-21-87740745/46

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

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

ST-2 1) Oktovianus Rusmin (Lead Auditor Witnessed). Bachelor‟s Degree in Social & Political Sciences Department of Anthropology. Specialists in the field of Social and Cultural (Social Impact & Conflict Resolution) and HCVF. Already participated in Forest Management Auditor Training (FSC Standard), ISO 14001 Environmental Management System Training, SVLK (wood legality) Auditor, Indonesian Sustainable Palm Oil (ISPO) and RSPO Lead Auditor Training. He was several times involved in the assessment of Sustainable Forest Management Certification (Standard LEI) and Gap Analysis Audit (FSC Standard). Had worked at the Center for study of Anthropology University of Indonesia and Social Advisor at Tropical Forest Trust (TFT) Indonesia. He was numerously involved in Social Impact Assessment and HCV Identification in Palm Oil Plantations and Natural Forest concessions and was approved as HCV assessor by RSPO for Social Discipline Specialist. Have been

involved in several palm oil certification as Auditor and Lead Auditor.

2) Muardi Marwas (Auditor). Bachelor of Agriculture Bogor Agriculture Institute. Attended RSPO and ISPO

Assessment in Indonesia. Right now he works as auditor in independent Certification Body. In this assessment he focused in Best Management Practices and Environmental Aspect.

3) Naila Karima (Trainee Auditor) Bachelor of Public Health, Department of Occupational Health and Safety.

Faculty of Public Health, University of Indonesia. She has experience working in private oil palm plantation companies in Indonesia. Who had attended the training including training understanding the RSPO certification system, ISPO Lead Auditor, and certified Integrated Management System (Occupational Health and Safety Management System OHSAS 18001:2007, Environmental ISO 14001:2004, Quality ISO 9001:2008) In this Assessment activities this time she did on the field assessment Occupational Health and Safety Management System and aspects of employment.

4) Moh Arif Yusni (Trainee Auditor) A bachelor of Agriculture, majoring of Plant Pest and Diseases (Plant Protection). He has a working experience for 2 (two) years in oil palm Plantation Company in Indonesia. Trainings attended namely: Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course. Now he worked at Professional Certification Body. He has been several times following audit related to sustainable palm oil certification system as an observer and auditor. In this assessment, he assessed on best practices, environment aspect, and workers welfare.

2.3 Methodology, Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

ST-2 Number of auditors : 4 auditor Number of days for stage 2 : 5 days Number of working days for stage 2: 20 Working days

2.3.2 Detail process of assessment

ST-2 The assessment was conducted by measuring the performance of implementation with the consistency done by the PT Sumber Indah Perkasa (SIP) and PT. Binasawit Abadipratama (BAP) 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

http://www.mutucertification.com/



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The assessment was conducted in three methods: (1) document review, aiming to observe the volume performance of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field observation, aiming to observe directly the compliance of implementation on site. Some opportunities for improvement of the results ST-2 were delivered by the auditor Mutuagung Lestari (MUTU) to the management unit, and the action taken by management will be verified at the next assessment phase (S-1). Improvement on findings from main assesment findings were observed by auditors at this S-1 assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of ST-2. The assessment program is shown in Appendix 2

2.3.3 Locations of Assessment

ST-2 Location of assessment is determined according to result of public consultation and document review. The audit team

used the formula (x= 0,8 √y). Based on this formula, the team of auditors determined that the sampling locations are

1 POM (Sungai Rungau Mill), 3 estates (Sungai Rungau Estate, Tangar Estate and Bukit Tiga Estate) and 2 villages

(Sebabi and Rungau Raya village).

Location 1 – Emplacement 2 of Sungai Rungau Estate (SRGE). Observations and interviews with the residents of emplacement 2 related to the facilities provided by the company such as housing of types G1 and G2 for workers, mosque, Child Care Centre, Water Facilities and handling of household waste. Location 2- Sungai Rungau Mill (SRGM). Interviews with Mill workers (sterilizer and boiler operators) related to the socialization of the company policy, implementation of Occupational Health and Safety, trainings, PPE usage, medical check-up, and employment. Location 3 Central Policlinic Sungai Rungau Estate (SRGE). Observations of the polyclinic (check-up room, the

doctors‟ room, the patient room). Interviews with the company‟s doctors and paramedics related to periodical medical

check-up, work accidents, health program and medical waste handling.

Location 4 –SRGE Diesel fuel tank. Observations of Occupational Health and Safety, such as: Symbol of

Hazardous Substances, fuels storage capacity, diesel fuel loading/unloading work instruction, spills handling facility

(cloth rags), PPE and Fire Extinguisher.

Location 5 – Oil, Agrochemical, and fertilizer warehouses at SRGE. Observation of Occupational Health and

Safety includes: the availability of hazardous substance symbol, MSDS, work instructions for agrochemical, oil and

fertilizer handling, PPE and manual for Fire Extinguisher.

Location 6 – Agrochemical Mixing Location at SRGE. Observations of Occupational Health and Safety, including

eyewash, emergency wash, Toxic Hazardous symbol, MSDS, PPE, emergency call numbers, work instruction for

agrochemical mixing, cloth rags and Fire Extinguishers.

Location 7 – Fire station at SRGE. Observations of fire fighting Facilities and Infrastructure, such as; fire fighting

tank and tractors equipped with motor pump, hose and nozzle.

Location 8 – Workshop at SRGE. Observations of Occupational Health and Safety conditions, on behalf of Triyanto;

has owned the certificate as skilled welder, work instructions for checking and repair of trucks and heavy equipment.

Location 9 – Hazardous waste storage at SRGE. Observation of Occupational Health and Safety conditions

includes: the availability of Hazardous waste symbol, flowchart of spill handling, PPE and Fire Extinguisher.

Location 10 – Sebabi and Rungau Raya village. Interviews with the Head of the village, community leaders and

villagers regarding the presence of oil palm plantation, CD/CSR Program and other important issues (for example


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about conflict or conflict potential).

Location 11 – HCV 4.1. Observation of riparian zones of Rungau river at Block P 35 – 39 Sungai Seruyan Estate and

interviews with staff assigned to monitor HCV area.

Location 12 – HCV 4.1. Observation of Tangar‟s springs at Block N 63 Tangar Estate

Location 13 – HCV 1.1. Observation of remaining forest area at Block M 75 Bukit Tiga Estate

Location 14 – Boundary Poles. Observation of BPN‟s boundary poles No 29, 25, 23, in PT. BAP area, adjacent to

PT. Mitra Abadi Makmur.

Location 15 – Boundary Poles. Observation BPN‟s boundary poles No. 114 and 117 in PT. BAP area, bordering on

the community estate.

Location 16 – Hazardous Waste Storage at Sungai Rungau Mill. Observation of the hazardous waste storage facilities. This warehouse has limited access, an could only be accessed by the warehouse clerk. Closed water flow and oil trap wereset up around this warehouse to prevent contamination of hazardous waste to the environment. Hazardous waste symbol has been installed in compliance with rules (KEPKABAPEDAL number 5 of 1995). Location 17 – Fire Fighting Equipment and Facility. Observation of the fire hydrant, fire extinguishers and readiness of emergency response team in anticipation of fire. There were 7 hydrants and 27 fire extinguishers at Mill in proper condition. Officers check their condition every month. Location 18 – Sungai Rungau Mill. Observation of water management, re-use of water that had been used to wash the floor, as condensate aimed to reduce water usage in Mill. Location 19 – Block J24. Observation in land application area. Location 20 – Waste Ponds. Observation of effluent management before it is applied to the land.

Location 21 – Emplacement 2 Bukit Tiga Estate (BTGE). Observations and interview with the residents in the

emplacements 2 related to facilities provided by the company such as G1 and G2 employees‟ housing, mosque,

Child Care, water facilities and household waste management

Location 22 – Bukit Tiga Estate Polyclinic. Observations of the clinic‟s condition (check-up room, doctors‟ room,

patient room). Interview with the company‟s doctor and paramedics regarding routine medical check-up, and medical

waste handling.

Location 23 – Location of Oil Warehouse, Agrochemical, and Fertilizer of Bukit Tiga Estate. Observation of

OHS (Occupational Health and Safety), The availability of Toxic and Flammable Hazardous waste symbols, MSDS,

and Work Instruction for handling of agrochemicals, Oil and Fertilizer, PPE and Fire Extinguisher.

Location25 –SRGE Fire Fighting Post. Observation of fire fighting facilities, including: fire fighting tank and tractor

equipped with motor pump, hose and nozzle.

Location 26 – Blok P 58 Bukit Tiga Estate: Observations and interview with the spraying Foreman and Spraying

Team regarding the company‟s policy on the application of chemicals in the riparian area, routine medical check-up,

PPE usage and adequacy, OHS training, First Aid training, mechanisms of complaints on gender issues, employees‟

welfare and wages.

Location 27 – Block P 61 Bukit Tiga Estate. Observations and interviews with the harvesting workers regarding


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the criteria‟ of ripe-harvest, harvesting techniques, PPE usage and housing facilities.

Location 28 – Block M 28 Sungai Rungau Estate. Observation of empty bunch area.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Consultation of stakeholders for PT Sumber Indah Perkasa – PT Binasawit Abadipratama was held by public consultation meeting with internal stakeholders, by interviewing local stakeholders through visits to villages and interviews with local people. Input from stakeholders were clarified by PT Sumber Indah Perkasa – PT Binasawit Abadipratama

2.4.2 List of stakeholders contacted

Please find in appendix 1

2.5 Determining Next Visiting

The next visit (first Surveillance) will be conducted one year after the certificate is issued


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

MUTUAGUNG LESTARI has conducted an assessment of PT Sumber Indah Perkasa (PT SIP) and PT Binasawit Abadi Pratama (PT BAP). – Sungai Rungau POM, Golden Agri-Resources Ltd operation consisting of 1 (one) mill and 5 (five) oil palm estates.

During the assessment, there were three (3) Nonconformities recorded as Minor Compliance against Indicators 4.4.2;

5.1.1; 6.1.2 and four (4) 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 prepared and implemented corrective action that was reviewed and accepted by MUTU in the form of

document evidence. Those corrective actions shall be verified during next assessment (surveillance).

MUTUAGUNG LESTARI found that PT Sumber Indah Perkasa and PT Binasawit Abadi Pratama. – Sungai Rungau POM complies with the requirements of RSPO Principles & Criteria and National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008. Therefore MUTUAGUNG LESTARI recommends a certificate of compliance is Issued.

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.

Information Book from stakeholder is available in each estate (Sungai Rungau, Tangar and Bukit Tiga). The documents describe information thtat has been requested, and response given. Company‟s response is provided not later than 5 weeks. Examples follow

Request records Response records

Sungai Rungau:

Letter from Hanau, Seruyan Police Resor, No B/73/XI/2012 a 30 November 2012 concerning Request of the Employee‟s Data

Response to Hanau, on 5 December 2012 by providing the estate‟s employee‟s data.

Tangar Estate Letter from Hanau, Seruyan Police Resor, No B/73/XI/2012 on 30 November 2012 concerning Request of the Employee‟s Data

Response to Hanau, on 5 December 2012 by providing the estate‟s employee‟s data.

Bukit Tiga Estate Letter from Labor Agency in October 2012 about The obligation to submit the Report of The Guiding Committee of Occupational Health and Safety

The Report has been submitted to the Labor Agency of Sampit District on 8 October 2012 and the Receipt of acceptance is available.

PT BAP have SOP of Document storage time limit and control No. SOP/SPO/SMART/LH-02 dated 01 July 2010 that describes the duration of document storage, the document storage location, and the document holder. Company decides that the documents, such as legal documents, are stored for 5 years in accordance with the procedure.

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.


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Based on SOP of Information Request Response No: SOP/SPO/SMART/LH-01, effective date 1 July 2010, documents that are

accessible for the public are: 1. List of Employee‟s Basic Wages. 2. List of Employees and Taxpayer Identification Number for the calculation of Land and Building Tax (PBB) 3. Payment of Local Taxes 4. The number of Employees 5. EIA Study, Environmental management plan, Environmental monitoring plan and Land Application Permit 6. Deed of Establishment 7. Land Ownership document (e.g. Certificate of Land Use Title) 8. HCV Identification Report 9. Social Impact Assessment Report 10. Documentation of social activities 11. Occupational Accident Reports & Guiding Committee of OHS.

For other documents not included in the categories above, document‟s release must be approved by top management. SOP of Document storage time limit No. SOP/SPO/SMART/LH-02 dated 1 July 2010, explains that the the records/documents should be mantained for 5 years. If the document cannot be stored in the secretariat of SPO, the document is stored in the company‟s storage archive (outside the secretariat of SPO) and Staff will document this proccess.


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

Company has shown compliance with applicable regulations both locally and nationally, namely: 1. Document of Land Use Title in accordance with Statute No. 5 year 1990. 2. Plantation Business Permit in compliance with Regulation of Labor Ministry No. 26 year 2007. 3. Company assigns Occupational Health and Safety expert as the secretary of the Guiding Committee of Occupational

Health and Safety in each estate and submits reports of The Guiding Committee of Occupational Health and Safety every 3 month, as required by Regulation of Labor Ministry No. 4 year 1987.

4. Permit of effluent management and utilization for PT. Sumber Indah Perkasa (Sungai Rungau Mill), and reporting of operational activities to relevant institution.

5. Company has included transporting and forklift operators to obtain Operator License that refers to Regulation of Labor Ministry No.9 year 2012.

6. Company submits reports on the plantation business development every 6 month, for example the report submitted of the plantation business development for the 2nd Quarter (June 2012), which was accepted on 10 July 2012, in accordance with Statute No. 18 year 2004 article 17 in Regulation of Labor Ministry No. 26 year 2007.

7. Plant protection is conducted with Integrated Pest Management, according to Statute No. 12 year 1992. 8. Company equips the Hazardous Waste warehouse with the Hazardous Waste material symbols in accordance with Decree

of Head of Environment Impact Control Agency No. 5 year 1995. 9. Company has joined with hazardous waste collector (PT. Nazar) which has obtained permission from Ministry of

Environment in accordance with The Decree No. 122 Year 2010. 10. The vehicle that is used for transporting the hazardous waste has obtained operating license for special freight transport of

dangerous goods from the Ministry of Transportation.

There is evidence of the company updating to the plantations regulations, such as:

Handover document of notification request letter on the updating of regulations to the relevant institution, for example on 6 November 2012, the company submitted a request letter to Forestry and Plantation Agency.

Evaluation list document of regulation compliance which is updated every 6 months. For example, in TRWE estate, evaluation of regulation compliance was conducted on 27 June 2012 and 1 November 2012.

There are several updated and evaluated regulations such as:

Government Regulation No. 50 year 2012 on the implementation of Occupational Health and Safety Management


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System (OHSAS) regarding the implementation of OHSAS in the estate, setting of the OHS policy, dissemination on the OHS policy, the setting of hazard sources and hazard control, compliance of OHS facilities and infrastructures, compliance of OHS license, the monitoring and evaluation of OHS by The Guiding Committee of Occupational Health and Safety.

Government Regulation No. 27 year 2012 for environmental permit, regulatory compliance with the availability of EIA documents, the company consulted with the Environmental Bodies on 5 November 2012 regarding the EIA Follow up of PT. BAP.

Governor Regulation No. 38 year 2011 on the Minimum Wage of Seruyan District (2012) has been complied with. The sources of effluent to be applied on ladnd are Semilar mill (PT Tapian Nadenggan) and Rungau mill (PT Sumber Indah Perkasa). PT SIP has obtained an effluent management permit for land aplication. The effluent from Semilar Mill (PT Tapian Nadenggan) had been applied in Block P45 – P53, P55, and O46 – O53, O56 and O57 covering 268 hectare, but it is not in accordance with recommendation issued by the relevant authorities, because Permit for PT. Tapian Nadenggan, referring to Decree of Head of Seruyan District No. 295 Year 2012, only covered 47.05 hectares in Block O46, O47 and O48. So it is recommended to comunicate this problem with PT Tapian Nadenggan regarding effluent application in Tanggar estate (PT BAP).


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

Land Tenure and Land Use of PT. BAP are based on: a. Legal Documents

1. Location Permit based on the Decree of Head of National Land Agency of Kotawaringin Timur District No. 754.460.42 dated 20 July 1994 on the Granting of Location Permit for the Purposes of Oil Palm Plantation on behalf of PT. Binasawit Abadi Pratama in Terawan Village, Danau Sembuluh Sub district, Asam Baru Village in Hanau Sub district and in Sandul Village, Kalang, Sebabi in Seruyan Tengah Sub district, Kotawaringin Timur District covering 25,000 hectares.

2. Decree of Ministry of Forestry No. 39/Kpts-III/1996 dated 29 January 1996 on the Acquisition of Parts of Forest Located in the Group of Sungai Seruyan – Sungai Mentaya Forest, Kotawaringin Timur District, Central Kalimantan Province covering 17,780 hectares For Oil Palm Cultivation and Plantation on behalf of PT. Binasawit Abadi Pratama. Based on the map of TGHK, it is known that the converted area was Production Forest area covering 15,230 hectares and Permanent Production Forest Area covering 2,550 hectares.

3. PT. Binasawit Abadi Pratama Business Permit is Plantation Business Registration Certificate No. 089/Menhutbun-VII/2000 dated 23 February 2000 issued by Department of Forestry and Plantation covering 20,180 hectares with Mill capacities 60 tons FFB/hour.

4. Recommendation Letter of Mill development from Plantation Agency of Kotawaringin Timur District to PT. Sumber Indah Perkasa with the capacity of 80 tons FFB/hour dated 13 September 2002.

5. Building Construction Permit No. 642/91/UPT/CK-PU/2002 in the Decree of Head of Kotawaringin Timur District, for the construction of PT. Sumber Indah Perkasa Mill and all supporting buildings covering 20,968.81 hectares.

6. There are several documents of land tenure in PT. Binasawit Abadi Pratama:

Decree of the State Minister of Agrarian/Head of National Land Agency No. 16/HGU/BPN/1997 dated 26 February 1997 on Land Use Title in Kotawaringin Timur District, Central Kalimantan Province covering 20,180 hectares.

Certificate of Land Use Title No. 4 dated 8 June 1998 covering 20,180 hectares in Asam Baru Village and Terawan Village, Hanau Sub district and Danau Sembuluh Sub district, Kotawaringin Timur District, Central Kalimantan Province. The Land Use Title has been updated (no longer applied) with;

Certificate of Land Use Title No. 17 dated 18 March 2008 covering 20,152.79 hectares in Asam Baru and Terawan Village, Hanau and Danau Sembuluh Sub district, Seruyan District of Central Kalimantan (currently applicable Land Use Title) that is valid until 8 June 2033 and has been extended for the next 25 years.

7. There are several documents of land tenure in PT. Sumber Indah Perkasa:

Decree of the Head of Regional Office of National Land Agency of Central Kalimantan Province No. 07.550/HGB/BPN.42/2003 dated 23 July 2003 on the provision of Building Use Title for the location of Staff Housing Building on behalf of PT. Binasawit Abadi Pratama Seruyan District covering 20,700 m² and Certificate of Building Use Title No. 3 dated 28 July 2003 from National Land Agency covering 20,700 m² in Asam Baru


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Village, Hanau Sub district, Seruyan District of Central Kalimantan.

Decree of Head of regional Office of national Land Agency of Central Kalimantan Province No. 08.550/HGB/BPN.42/2003 dated 23 July 2003 on the provision of Building Use Title for the location of Employees‟ Housing Building on behalf of PT. Binasawit Abadi Pratama Seruyan District covering 53,900 M² and Certificate of Building Use Title No. 4 dated 28 July 2003 from National Land Agency covering 53,900 M² in Asam Baru Village, Hanau Sub district, Seruyan District of Central Kalimantan.

Decree of Head of Regional Office of National Land Agency of Central Kalimantan Province No. 09.550/HGB/BPN.42/2003 dated 23 July 2003 on the provision of Building Use Title for the location of Reservoirs on behalf of PT. Binasawit Abadi Pratama Seruyan District covering 72,200 M² and Certificate of Building Use Title No. 5 dated 28 July 2003 from National Land Agency covering 72,200 M² in Asam Baru Village, Hanau Sub district, Seruyan District of Central Kalimantan.

Decree of Head of Regional Office of National Land Agency of Central Kalimantan Province No. 10.550/HGB/BPN.42/2003 dated 23 July 2003 on the provision of Building Use Title for the location of Palm Oil Mill on behalf of PT. Binasawit Abadi Pratama Seruyan District covering 72,100 M² and Certificate of Building Use Title No. 5 dated 28 July 2003 from National Land Agency covering 72,100 M² in Asam Baru Village, Hanau Sub district, Seruyan District of Central Kalimantan.

Decree of Head of Regional Office of National Land Agency of Central Kalimantan Province No. 11.550/HGB/BPN.42/2003 dated 23 July 2003 on the provision of Building Use Title for the location of Employees Housing Building on behalf of PT. Binasawit Abadi Pratama Seruyan District covering 53,200 M² and Certificate of Building Use Title No. 5 dated 28 July 2003 from National Land Agency covering 53,200 M² in Asam Baru Village, Hanau Sub district, Seruyan District of Central Kalimantan.

There is Certificate of Sales and Purchase dated 30 July 2003 No. 65/2003 between PT. Binasawit Abadi Pratama and PT. Sumber Indah Perkasa.

b. Maps & Boundaries Poles Based on the Cadastral Map dated 8 June 1998, it was found there were 183 poles in the operational area of PT BAP. There was a report on identification of the legal boundaries and the poles are available. The management has confirmed the maintenance of HGU Boundaries Poles (BPN poles) by re-painting once a year, and weeding the plants/grass area around the poles every 4 years. The evidence of monitoring and maintenance of the boundary poles for year 2012 is available in each estate. Based on field visit, the boundary poles in Bukit Tiga Estate (Poles numbers 29, 35, and 23), and at Sungai Rungau Estate (Poles numbers 114, 117, and 121) are in well-maintained condition. Based on documents verification, information from PT BAP management, head of Sebabi Village and their community leaders and Head of Rungau Raya Village, it was noted that there has never been conflict between the company and the surrounding community. The land tenure and land cultivation of PT Binasawit Abadi Pratama were based on the Decree of Forestry Ministry No. 33/Kpts 11/96 regarding the Partial Waiver of Forest Area in the forest area group of Seruyan river, Mentaya river, Kotawaringin Timur District, South Kalimantan Province. There wasn‟t any compensation being paid during the land acquisition, because the entire land was actually converted from the forest area that had been previously released.


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 information from the management, villagers, and also High Conservation Value (HCV) report in the area of PT BAP, there is no customary land. The land tenure and land cultivation of PT Binasawit Abadi Pratama were based on the Decree of Forestry Minister N\o. 33/Kpts 11/96 regarding the Partial Waiver of Forest Area in the forest area group of Sungai Seruyan, Sungai Mentaya, Kotawaringin Timur District, South Kalimantan Province. There wasn‟t any compensation being paid during the land acquisition, because the entire land was actually converted from the forest area that had been previously released. Based on consultation with National Land Agency (BPN) of Kuala Pembuang, Seruyan, there was neither customary land nor supporting evidence.



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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.

PT Sumber Indah Perkasa (PT SIP) and PT Binasawit Abadipratama (PT BAP) have a management plan as an annual reference until the initial replanting period (2013 – 2020). The oldest palm plantation is from 1995 and it will be replanted in 2020. The estimated profitability period 2013 – 2020 for SIP Mill is presented with the FFB production being included into calculation as detailed below:

1. FFB production in Sungai Rungau, Tangar, Bukit Tiga, Seruyan, Terawan Estates. 2. Mill Production (CPO and PK) Ton with 24.5 % of OER and 5.25% of KER. 3. Revenue 4. Mil processing cost (processing, repair& maintenance, overhead) 5. Net profit

All of the above items were calculated to estimade profitability for period 2013 until 2020. The calculation also considers probability if TBS production had decreased. Total Budget in 2013 is IDR 8,189,000,000 (2013 Budget Overhead) and the budget allocated for CSR is IDR 576,400,000 or 7.0% of the total budget, while the budget allocated for environment is IDR 251,074,080 or 3% of the total budget. The budget in 2012 is IDR 236,837,000, budget allocated for CSR program is IDR 29,139,500, and for environmental is IDR 41,000,000. Jakarta Head Office was confirmed that company spent more than IDR 10 million for social and environment. The Budget in 2011 and 2012 are able presented. Each estate keeps a long-term plan in form of profitability document (2013 – 2020) with estimates of FFB production for each estate; CPO/PK production, Revenue, Production Cost of the estate, and net profit. PT BAP will not make replanting plans for the next 5 years. Based on the Area Statement, the oldest planting is from 1996. The replanting activity will be conducted in accordance with the Technical Guidelines for Oil Palm Cultivation (SMA/MCAR/01/05-07) in the scope of Sinar Mas Group, The replanting conditions are:

- Over 25-year aged plants. - Over 13-meter high plants. - Below 14 tons/Ha annual production. - Less than 100 main plants/Ha.


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

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

Company have SOP of estate compiled by MCAR (Management Committee Agronomy and Research) team with document number SMA/MCAR/00/05-07 about technical guidelines of cultivation, valid from 1 May 2007.

Document SMA/MCAR/01/05-07 on planting plan.

Document SMA/MCAR/02/05-07 on seedling

Document SMA/MCAR/03/05-07 on preparation before planting

Document SMA/MCAR/05/05-07 on land clearing and planting

Document SMA/MCAR/06/05-07 on diseases and weeds

Document SMA/MCAR/07/05-07 on fertilization

Document SMA/MCAR/08/05-07 on immature plants maintenance

Document SMA/MCAR/09/05-07 on activities ahead of the harvest

Document SMA/MCAR/10/05-07 on mature plants maintenance


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Document SMA/MCAR/11/05-07 on harvesting and transporting. Company also have SOP for palm oil mill processing of PT. SMART Tbk No. 04-09/MCMD-SOP/438 4threvision approved by Edwin Ng (Chairman of MCMD) and valid from 1 September 2010. The SOP includes the standard operating procedures at the Palm Oil Mill such as FFB reception station, Sterilization activities, slamming station, press station, clarification station (purification), clarification station; sub-station of oil recovery tank, nut and kernel station, boiler and engine rooms, water treatment, final effluent and storage tank cleaning. There is an SOP No. PT. SIP-SRGM/SOP/20 approved on 1 May 2012 about input of FFB including weighing activities, grading and loading ramp. Company carried out an examination on the operational activities of mill and estate conducted by an internal team of Jakarta. Internal estate audit, that is regularly conducted and includes:

The last Agronomy Audit and Advisory Division were conducted on 18 January to 1 February 2012. The scope of the inspection included: production and harvest, harvest administration and production quality, security of the estate and FFB transporting, harvest, mechanical preparation (MAIC), plant care, diseases and weeds, rainfall data, road and hardening, manuring, manpower and occupational health and safety, preventive care, workshop and warehouse along with the polyclinic facility, housing and environment, and RSPO.

The latest internal audit was held at Sungai Seruyan Estate on 7 to 14 March 2012 and at Terawan Estate on 15 to 21 March 2012. It inspected bank cash administration, administration of debts, accounts and bill account, non-plant fixed assets, plant and mill area maintenance, plant production, wages and personnel.

For the mill, there is an inspection mechanism of mill advisory audit twice a year. In 2012 there had been 2 inspections by an internal team from the Head Office Jakarta, as follow:

a. On 23 to 26 July 2012, the team inspected production, planning and processing consumable and power usage, control process (oil loses and kernel loses), quality control, care (maintenance, safety equipment, grading, laboratory). Company has followed-up the result of audit, where 3 parts of it are still in the process of waiting the next year budget.

b. On 9 to 12 January 2012 the company has taken a follow-up action against the result of the audit, where 1 part of it is still on the process of waiting the next January 2013 budget.

Company had been able to show the record of CPO quality monitoring such as measurement of FFA, moist, dirt and DOBI (in %). The measurement is taken at a regular interval to control the quality of CPO.


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

Company has shown record of soil analysis conducted by SMARTRI (SMART Research Institute) every 5 years to get information of soil nutrient status such as pH, C organic, C/N ration, and soil cation exchange capacity. Company also conducted leaf analysis every year to get information of N, P, K, Mg, Ca B, and Cl. %. Soil and leaf analysis are conducted on a regular basis by Research Team of SMARTRI. The result of soil analysis (including types of soil), leaf analysis, age of the plant and climate (rainfall) become a guideline in determining recommendation for fertilizing, types of fertilizer to be used (organic and inorganic) and the dose of the fertilizer. Based on the verification of Document of fertilizing Recommendation and Implementation, it is shown that soil and leaf analysis from the research team of SMARTRI have been consistently conducted by the plantation management unit of PT. BAP. There is evidence of fertilization in form of document of inorganic fertilizing recapitulation for Semester 1 and Semester 2 at Tangar Estate. All fertilizing programs have been accomplished, for example Dolomite fertilizing program plan in 2012 as much 136,850 kg has been completely implemented.

There is a record of supplement application of empty bunches in 2012 at Tangar Estate where until November, 534.05 hectares have been implemented with the tonnage of 10,681 tons and dose of 20 tons/ha.

There is a record of empty bunches application in 2012 at Tangar Estate, where until November, 128 hectares have been implemented with the tonnage of 7,680 tons and dose of 60 tons/ha.

There is a record of Land Application in the year 2012 at Tangar Sungai Rungau. Until October 2012 30,605.00 m3


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have been implemented covering 338.38 Ha.


4.3 Practices minimize and control erosion and degradation of soils.

A semi-detailed land ma, issued by Plantation Monitoring and Planning Division (PMNP) in the scale of 1: 50,000 with registration No. 472/202/PMNP/VIII/2009, contains information on type of soil, land topography, soil texture, condition of the drainage, level of land suitability, and limiting factors. Condition of land topography is flat and undulating with the slope of 0 – 24%. Based on the semi-detailed land map, there is a peat area covering 40.14 hectares at Tangar Estate with the depth of 60 – 150 cm. There is also a semi-detailed map/LSC for Sungai Rungau Estate with the scale of 1: 50,000, which includes the description of soil types, slope, soil texture, level of land suitability and limiting factors. The topography is flat to undulating 0 – 16%. Based on the soil survey, the slope of the working area of PT. Binasawit Abadi Pratama is in the category of flat to undulating (0 – 24%). The result of soil survey at Sungai Rungau Estate shows flat to undulating (0 – 16%). PT. Binasawit Abadi Pratama already has procedures on management of planting in the areas with particular slope. The strategies to manage the areas with particular slope is in accordance with SOP document No. SMA/MCAR/05/05-07 about land clearing and planting. Management strategies are contour terracing, conservation terraces, terracing with silt-pit (conservation of soil and water), a combination of terracing and holes that aim to trap water and soil, and planting of cover crops.. The result of soil analysis at Sungai Rungau Estate shows that the level of land suitability is dominated by class S2, S3 and N with limiting factors of natural fertility, drainage and soil texture. The land with N-class covers an area of 95,32 ha (3.1%) whose limiting factor is argillaceous sand soil texture. Class N scatters in Block N26, N28, N29, M26, M27, M28. Marginal areas management use empty bunches application to increase the nutrient elements. Empty bunches need to be applied to improve physical, chemical and biological characteristic of the soil, primarily to increase the cation exchange capacity. Fertilizing with empty bunches was conducted in Division 1, 2, 3 and 5 at Sungai Rungau Estate where the areas were identified as sandy areas. Total of empty bunches application throughout the year of 2012 is 13,436 tons. The result of soil analysis show a peat area covering 40.14 hectares at Tangar Estate with a depth of 60 – 150 cm. Company have SOP of water management in the peat area with document No. SOP/BAP/LKL-13, approved on 1 March 2012. The objective from water management are to keep the peat areas from over draining that can lead to rapid shrinking of peat layer and avoid the top layer from excessive drying which is irreversible. Types of water management in the peat areas are:

Preparation and installation of piezometer.

Construction of dams.

Maintenance and leaching the trenches mechanically.

Company has evaluated the efforts. There is a record of plan and implementation of water gate and piezometer available from

2009 up to 2012. There is a record of the result of water level monitoring and measurement of peat reduction along with the

note. Based on the document observation, since January 2009 until September 2012 there has never been drought in the peat

areas.

Planting strategies in peat land is in accordance with SOP No. SMA/MCAR/03/05-07 on preparation before planting, valid since 1 May 2007. The preparation includes soil compaction, constructing field drain trenches with the number of 1;16, 1;8, 1;4 or 1;2 according to the needs, maintaining the trenches and low-lying in peat area that is conducted once a year. Before planting, the first step is water management that includes the construction of dams, piezometer and water level monitoring.


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

Company has shown SOP for riparian protection with document number SOP/SPO/SMART/LH-06 approved on 1 July 2010. The activities include:


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Prohibiting planting within the riparian zone as wide as 50 m on the left and right side of the river.

Prohibiting land cultivation in the riparian area by announcements.

Making buffer road in the the protected area.

In addition, the company also showed SOP of riparian management with document number SOP/SPO/SMART/LH-07 approved on 1 July 2010. The activities include:

When doing plant maintenance, 5 oil palm trees existing in the protected riparian area as wide as 50 meters to the left and right side of the river, use of chemicals is not allowed unless it is done manually.

When fertilization, 5 oil palm trees existing on the protected riparian area as wide as 50 meters to the left and right side of the river, mechanical fertilization (using plane or spreader) is not allowed, it must be done manually.

Erosion-preventing plants should be planted on the slide-prone riverbanks.

Water management program had been conducted for all areas for example a maintenance program in the management of HCV for water catchment and riparian areas. Plan and realization of catchment area and riparian management were recorded and controlled in a 3 month evaluation record. Related to operational management of mill and estate, company conducts a periodic monitoring of water management for the rivers, springs and wells including the waste water treatment plan. For management of river water, the monitoring and measurement are conducted per semester; monitoring wells are also monitored and measured every semester and WWTP pond every month. BOD and COD records of mill effluent, monitoring wells and river water quality.

a. Measurement of land application of mill effluent (tested by Sucofindo Lab in Pontianak):

Month November October LA Report per semester

Standard pH 6-9 6.94 8.3 In LA standard

Standard BOD 2978.70 mg/lt 2731.45 mg/lt January, February> 5,000

COD 17812.48 mg/lt 15022.08 mg/lt NA for LA standard

b. Result of monitoring of wells (the last 6 months in June 2012)

There are a total of 4 well points and one point in the settlement.

Month June 2012 (Health Minister Regulation 416/1990)

Point close to LA Only pH under standard 6-9, Cd, Cr, Nitrate, Nitrite, Zinc, Sulfate, Pb, BOD, DO, Cu.

Control (settlement) Only pH 5.82 under standard, and Cd, Cr, Nitrate, Nitrite, Zinc, Sulfate, Pb, BOD, DO, Cu.

c. Result of river water measurement (the last 6 months in June 2012) – Unilab Jakarta

There are a total of 4 well points and one point in the settlement.

Month June 2012 (Government Regulation 82/2001)

Upstream of Rungau River Block K-29 (Rungau estate) TSS, pH, DO, cd, Cl2, Fat oil, Nitrate, Zn, Cu, Pb, BOD, COD, Nitrogen, Free Ammoniac, SO4 included in standard

Downstream of Rungau River Blok A 13 (Estate Terawan) TSS, pH (under standard 6), DO, Cd, Cl2, fat oil, Nitrate, Zn, Cu, Pb, BOD, COD, Nitrogen, Free Ammoniac, SO4 included in standard

Note: At Block K-29 the water quality upstream has been measured, while the downstream has not been measured yet. At Block A-13 the water quality downstream (block side) has been measured, while that of the upstream has not been measured yet Non-conformance status CAR 2012.05


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Monitoring record of BOD and water river quality parameters that are related to the mill effluent have not been fully measured and monitored for the setting of the inlet (upstream) and outlet (downstream, namely Block K-29 (upstream the river) and Block A-13 (downstream the river) (CAR 2012.05). Notes:

- In EIA 1997 approved on 7 August 1997 the area listed was 17,780 hectares but the implementation in Land Use Title is different namely 20,152.79 hectares. The last revision submission was in December 2012 but there has been no response from Ministry of Environment Jakarta. The revision was also submitted to Regional Environmental Bodies of Seruyan in February 2012 but also there no response, as well as the submission to the Province Environmental Bodies in November 2012.

- Sampling point in Rungau River was specified only as upstream and the downstream.

Status: NC. See CAR 2012. 05 with Minor category

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

Pests, diseases, weeds and introduced fast-growing species are effectively controlled by applying the technique of Integrated Pest Management (IPM) which provides early detection of Palm Leaf Eater caterpillars and other pests (rats, Oryctes and Ganoderma). The IPM was conducted every 3-month. There is evidence of the census conducted in January, April, July and October 2012. There is a maintenance program for host plants in 2012 at each estate. For example at BTGE, the maintenance of host plants (Turnera subulata, Antigonon leptosus, and Cassia cobanensis) is regulated. Until November 2012, 26,284.10 ha have been maintained out of the plan in 2012 of 31,540.92 hectares. There is monitoring program for owl‟s nest in 2012. For example in November 2012, at Sungai Rungau Estate there were 19 active nests of 38 nests (owl‟s population found); at Tangar Estate there were 15 active nests of 34 nests (owl‟s population found); at Bukit Tiga Estate there were 18 active nests of 76 nests (owl‟s population found) Company has shown a recording of the extent of IPM monitoring:

1. There is a document of rats control monitoring which describes the location of the census, the area coverage, date of census, main plants attacked, the percentage of the attacks, chemical control when the attacks exceed the economic threshold ( 5%). Based on the document study, the level of the attacks is still below the threshold so there is no need for controlling.

2. Document for Palm Leaf Eater Caterpillars Detection recapitulation are available that describes the sampling location, land area, number of trees affected, number of sample trees and type of palm leaf eater caterpillars.

3. Maps for Nest Location are available at Sungai Rungau Estate, Tangar Estate and Batu Tiga Estate. 4. Document form for Nest Monitoring are available that describes observation result of the existence of the owl. A nest is

considered active when: there is vomit, owl, dead rat, and there is a mother bird. For example in Bukit Tiga Estate, the nest location is in Block Q76, found vomit, a mother bird, dead rat, feathers and the droppings.

5. There is a document of host plants maintenance (Turnera, Antigonon and Cassia). For example in SSRE Division I Block T11 covering 56.06 M².

There is also IPM-training record such as: record of Integrated Pest Management training on 23 may 2012 at Sports Hall of Sungai Rungau Estate, attended by 80 employees (there are materials, attendance list, and documentation photographs of the event). There is a record of pesticide toxicity monitoring as outlined in the data document of pesticide toxicity that describes Name of products, Registration Number, Active ingredients, the content of active ingredient, the amount of applications, total amount of active ingredients, FFB production and amount of active ingredient per kilogram of FFB.

1. Roll Up 480 SL; Registration No. R.I 2133/4-2009/T; active ingredient Isopropyl amine Glyphosate 41%; amount of application 8,937.96 liters; total of active ingredients 336.56 liters; production of fresh fruit bunches 555,698.490 tons; active ingredient per ton FFB is 0.0065 liter/ton FFB.

2. Rolixone 276 SL; Registration No. R.I 0101301120062467; active ingredient Paraquat Dichloride 42%; amount applicated 4,100.06 liters, total of active ingredient 1,722.03 liters; production of fresh fruit bunches 555,698.490 tons; active ingredient per ton FFB is 0.0030 liter/ton FFB.


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3. Starane 290 EC; Registration No. R.I 857/7-2009/T; active ingredient Fluroxypyr 30% with amount of application 107.90 L; total active ingredient 32.37 liters; the production of fresh fruit bunches 555,698.490 tons; active ingredient/ton FFB is 0.00058/ton FFB.

4. Erkafuron 20 WG; Registration No. R.I 01030120062405 active ingredient metsulfuron-methyl 20% with total application of 590.35 kg; total of active ingredient 118.07 kilograms; the production of fresh fruit bunches 555,698.490 tons; active ingredient per ton FFB is 0.00021 kg/ton FFB.

5. Klerat; Registration No. R.I 669/9-2008/T; active ingredient Brodifacum 0.005%, total application 152 kilograms; total active ingredients 0.0076 kg; FFB 555,698.490 tons; active ingredient per ton of FFB is 0.0000097kg/ton FFB.

6. Garlon; Registration No R.I 695/9-2008/T; active ingredient Triclopyr 44%; amount of application 12.32 kilograms; total of active ingredient 5.42 L; FFB production 555,698.490 tons; active ingredient per ton is 0.000000014/ton FFB.


4.6 Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are 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 a list of pesticide usage (registered and allowed by related institution) i.e : Bukit Tiga Estate

1. Roll Up 480 SL; Registration No. R.I 2133/4-2009/T active ingredient Glyphosate Isopropylane 480g/L. 2. Rolixone 276 SL; Registration No. R.I 0101301120062467 active ingredient Paraquat Dichloride 276 g/L. 3. Starane 290EC Registration No. RI 854/7-2009/T active ingredient Fluroxyphyr 295 g/L 4. Erkafuron 20 WG; Registration No. R.I 01030120062405 active ingredient Metsulfuron-methyl 20% 5. Klerat; Registration No. R.I 669/9-2008/T active ingredient Brodifacum 0.005%

Tangar Estate

1. Roll Up 480 SL; Registration No. R.I 2133/4-2009/T active ingredient Glyphosate Isopropylane 480g/L 2. Rolixone 276 SL; Registration No. R.I 0101301120062467 active ingredient Paraquat Dichloride 276 g/L 3. Starane 290EC Registration No. RI 854/7-2009/T active ingredient Fluroxyphyr 295 g/L 4. Erkafuron 20 WG; Registration No. R.I 01030120062405 active ingredients Metsulfuron-methyl 20%. 5. Garlon; Registration No. R.I 695/9-2008/T active ingredient Triclopyr 670 g/ltr

Sungai Rungau Estate

1. Roll Up 480 SL; Registration No. R.I 2133/4-2009/T active ingredient Glyphosate Isopropylane 480g/L 2. Rolixone 276 SL; Registration No. R.I 0101301120062467 active ingredient Paraquat Dichloride 276 g/L 3. Starane 290EC; Registration No. RI 854/7-2009/T active ingredient Fluroxyphyr 295 g/L 4. Erkafuron 20 WG; Registration No. R.I 01030120062405 active ingredient Metsulfuron-methyl 20% 5. Garlon; Registration No. R.I 695/9-2008/T active ingredient Triclopyr 670 g/ltr 6. Klerat; Registration No. R.I 669/9-2008/T active ingredient Brodifacum 0.005%

There is a document of Pesticide Usage Recapitulation that describes the use of pesticide, types of pesticide, active ingredients, target weeds, application areas, dose, blocks application, and rotation.

For example Bukit Tiga Estate Circle spraying for the period of November 2012 with Metsulfuron-methyl (Erkafuron 20 WG) and Glyphosate (Roll Up 480 SL), target weed: broadleaf weeds (Borreria sp, Clidemia hirta, Micania micrantha, Diodia sarmentosa), application area covering 458.14 hectares, the dose of Metsulfuron-Methyl used 0.012 kg/ha, Glyphosate 0.235 L/ha, total use of metsulfuron-methyl 4.40, Glyphosate 107.7 L; active ingredient used of Metsulfuron Methyl is 1.08 kg, Glyphosate 51.7 L. Block R65, O65, N73-N81; M68, M69, L66, L67, 1st rotation.

Tangar Estate Circle spraying activity, harvesting path and IPM for the period of November 2012. Circle spraying using Metsulfuron-methyl (Erkafuron 20 WG) and paraquat dichloride (Rolixone), targeted weeds were broadleaf (Calopogonium, Pteridophyta, Ottochloanodosa grass); application area 383.07 hectares, dose of metsulfuron-methyl 0.0106 kg/ha, paraquat dichloride 0.25


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L/ha, total use of metsulfuron methyl was 4.19 kilograms, paraquat dichloride 81.57 L, active ingredient of metsulfuron methyl used 0.838 kg, paraquat dichloride 22.51 L, Block S53; R54-R55, 3rd rotation.

Sungai Rungau Estate Circle spraying activity for the period of November 2012; harvesting path, and IPM for circle spraying using Metsulfuron Methyl (Erkafuron 20 WG) and Glyphosate (Roll Up 480 SL); targeted weeds were broadleaf (Borreria sp, Clidemia hirta, Micaniamicrantha, Diodiasarrmentosa), application area covering 36.24 hectares, dose of metsulfuron methyl was 0.012 kg/ha, glyphosate 0.248 L/ha, total use of metsulfuron methyl was 0.45 kg, glyphosate 8.98L, active ingredient of metsulfuron methyl used was 0.09 kg, glyphosate4.31 L; Block N31-32; M31-32, 3rd rotation. There is also a Material Safety Data Sheet (MSDS) for each type of pesticide that describes instruction of storage and material handling, accidental handling (First Aid Emergency effort), hazard identification, action against spills and leaks, personal protective equipment, physical and chemical characteristics, reactivity and stability, information of technology, information of ecology, waste disposal and transport. A record of pesticide operators training has been available that conducted by pesticide commission on 25 May 2012 at the Sport Hall. The event was attended by 127 participants. There is an Instruction for the washing and cleaning of packaging of pesticide and fertilizers. Used packaged of pesticide are washed 3 times (according to MSDS), re-using the former washing water for spraying. Washing sacks by soaking them for 30 minutes and spray the former washing water to oil palm trees or to the plants in the yard. Based on the SOP of Waste Management No. SOP/SPO/SMART/LH-09 on 1 July 2010, at point 6.3.b, it is described that the used packaged of pesticide that have been washed are returned to the supplier.

Pesticide Group 1A and 1B of WHO used by the company are Klerat (Brodifacum as the active ingredient) and Rollixone (paraquat as the active ingredient). There is a document of paraquat use recapitulation as follows:

Year BTGE TNGE SRGE

2010 0.30 L/Ha 0.31 L/Ha 0.32 L/Ha

2011 0.28 L/Ha 0.29 L/Ha 0.30 L/Ha

2012 (until November

0.25 L/Ha 0.27 L/Ha 0.27 L/Ha

Based on the data above, it can be seen that paraquat usage tends to decrease from 2010 to 2012. The Budget 2012 analysis, shows that the company had implemented the policy of reducing the use of paraquat compared with Glyphosate is 1:2 (1 time rotation of weed control application using paraquat and 2 times rotation using Glyphosate). In addition, company also implemented weed control as much as 5% of the total area manually, especially for riparian areas.

There is a recapitulation document of the use of Brodifacum as follows:

Year BTGE TNGE SRGE

2010 - - 67.03

2011 - - -

2012 (until November) - - -

Regular check-ups are performed every year including physical examination (weight, height and blood pressure) and special check-ups conducted every 6 months for those who work at high-risk stations by the Company‟s Doctor (Certificate of Company Hygiene and Occupational Health No. 23.355/DH-XV/10.) Assignment of the occupational health examiner physician is based on No. Kep. 114/PPK-PNK3/KK/IX/2010). For example: 1. Bukit Tiga Estate There is a record of Cholinesterase regular check-up to 27 spray workers on 6 June 2012. Based on the examination, there were 8 workers exposed to toxic with mild level of toxification. 2. Tangar Estate There is a record of cholinesterase regular check-up to 46 spray workers on 6 June 2012. Based on the examination, there were 23 workers exposed to toxic with mild level of toxification and 1 worker with medium level of intoxication.


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3. Sungai Rungau Estate There is a record of Cholinesterase regular check-up to 32 spray workers on 6 June 2012. Based on the examination, there were 15 workers exposed to toxic with mild level of toxification. Company conducts regular check-ups every month to ensure that workers who work with chemicals (spray worker) are not in pregnancy (there is a checklist available on the workers who are not pregnant/breastfeeding) as examples on the list of check-ups held in December, November, September and August examined by estate doctor or nurse.


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

There is an SOP of Establishment, Maintenance, and Communication of the OHS Policy (Document No. SOP/SMK3/SMART/LH-01) valid since 1 July 2010 and the first revision was on 1 October 2011 approved by Head of Environment and Sustainability. SOP explains the policy of Occupational Health and Safety (OHS). Policy of OHS at PT. SIP and PT. BAP among others:

1. Terawan Estate, validated in February 2012 by Estate Manager (Sukiyo) and Chairman of the SPM Unit of TRWE (Ivensius).

2. Sungai Seruyan Estate, validated in February 2012 by Estate Manager (Albert Yotam Makanuai) and Chairman of the SPM Unit of SSRE (Harjono).

3. Sungai Rungau Mill, validated on 18 October 2011 by Mill Manager (Halomoan Siahaan) and Chairman of the SPM Unit of SRGM (Wawan Hermanto).

4. Sungai Rungau Estate, validated in September 2011 by Manager of SRGE and the Chairman of SPM Unit of SRGE. 5. Tangar Estate, validated on 24 February 2012 by UH TNGE and the Chairman of SPM Unit of TNGE-BTGE. 6. Bukit Tiga Estate, validated on February 2012 by UH BTGE and the Chairman of SPM Unit of BTGE.

The content of the OHS policy includes responsibilities of the leaders and workers to give the same priority related to the implementation of OHS and keep performing efforts to reduce hazards that may cause occupational accidents and other damages to rise. Reviews are conducted if there are changes for new regulation in the management structure. Implementation of OHS policy are:

1. There is an operational instruction available for all activities in the field (estate) approved by the Manager on 1 July 2012, describes the Operational Stages in each type of activity, result standard, operational equipments, Environmental aspects and controlled OHS. For example: Activities in Pesticide Warehouse, Operational Stages (arranging pesticide), result standards (rapid and clean), environmental aspects and controlled OHS is inhalation of pesticide, PPE used are Mask, Gloves and Boots.

2. There is an operational instruction available for all activities in the Mill approved by the Manager of SRGM (Sungai Rungau Mill) on 23 April 2012. The instruction describes Operational Details in each type of activity, equipments and materials, PPE, Emergency Lines, Emergency actions and records of the things need to be noted.

3. Socialization for OHS Policy and Environmental Hygiene in TRWE on 9 February 2012 at Pondok 1 and Pondok 3 Soccer Field (attendance list, invitation and photographs of the event available).

4. Socialization of OHS Policy and Environmental Hygiene in TRWE on 5 June 2012 at SSRE Ceremonial square (attendance list, invitation and photographs of the event available).

5. Socialization of OHS Policy and Environmental Hygiene in SRGM on 20 March 2012 at SRGM Meeting Room (attendance list, invitation and photographs of the event available)

6. Socialization of Operational Instruction on 6 October 2012 at TRWE Soccer Field (attendance list, invitation and photographs of the event available).

7. Socialization of Operational Instruction on 4 June 2012 at Pondok 2 SSRE Field (attendance list, invitation and photographs of the event available).

8. Socialization of Operational Instruction in each station at SRGM POM on 5 June 2012 at the Sterilizer Station (attendance list, invitation and photographs of the event available).

9. Socialization of OHS Policy conducted on 22 May 2012 at Pondok II SRGE which was attended by workers (harvesters, spray, maintenance, etc.) and 27 July 2012 at SRGE Workshop.

10. Socialization of OHS Policy in TNGE on 5 March 2012 attended by the employees of Division I, III, and V, on 6 March


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attended by employees of Division IV, on 13 March 2012 attended by employees of Division II and VI and on 17 March 2012 attended by employees from the head office, workshops and security officers.

11. Socialization of OHS Policy on 11 April 2012 at Employee Hall of Pondok 2 BTGE which was attended by 72 persons of spray workers, maintenance, harvesters, etc.

There is a Guiding Committee of Occupational Health and Safety approved by Manpower Service and Secretary of Guiding Committee of Occupational Health and Safety that has obtained OHS Expert License. For example:

1. The Guiding Committee of Occupational Health and Safety of Sungai Rungau Mill by the approval of Labour agency No. 560/1483/KEP/DISNAKERTRANSPAR/X/2012 on 18 October 2012 with Frischando as the secretary (OHS License Certificate No. 2237/AK3/U/X/2011 and assignment from Ministry of Manpower No. KEP. 2273/M/DJPPK/X/2011 as a General OHS expert until October 2014).

2. The Guiding Committee of Occupational Health and Safety of Sungai Seruyan Estate by the approval of Labour agency No. 560/1063/KEP/DISNAKERTRANSPAR/VII/2012 on 9 July 2012 with Anto Nirwoko as the secretary (Certificate No. 1111/AK3/U/V/2011 and assignment from Ministry of Manpower No. KEP. 1145/M/DJPPK/V/2011 as a General OHS expert until May 2014).

3. The Guiding Committee of Occupational Health and Safety of Terawan Estate by the approval of Labour agency No. 560/1064/KEP/DISNAKERTRANSPAR/VII/2012 on 9 July 2012 with Rizki Hendra as the secretary (License Certificate No. 10.4844/AK3-U/DJPPK/VI/2010 and assignment from Ministry of Manpower No.1365/DJPPK/AK3-U/VI/2010 as a General OHS expert until July 2013).

4. The Guiding Committee of Occupational Health and Safety of Sungai Rungau Estate by the approval of Labour agency No. 560/916/KEP/DISNAKERTRANSPAR/VI/2012 on 1 June 2012 with Suriono as the secretary (License Certificate No. 10.4823/AK3/U/DJPPK-P2K/VI/2010 and assignment from Ministry of Manpower No. SKP. 1344/DJPPK/AK3-U/VI/2010 as a General OHS expert until 29 June 2013).

5. The Guiding Committee of Occupational Health and Safety of Tangar Estate by the approval of Labour agency No. 560/1004/KEP/DISNAKERTRANSPAR/VI/2012 on 25 June 2012 with Aryo Handono as the secretary (License Certificate No. 1037/AK3/U/III/2011 and assignment from Ministry of Manpower No. KEP. 994/M/DJPPK/III/2011 as a General OHS expert until 22 March 2015)

6. The Guiding Committee of Occupational Health and Safety of Bukit Tiga Estate by the approval of Labour agency No. 560/1485/KEP/DISNAKERTRANSPAR/X/2012 on 18 October 2012 with Edyson Nazara as the secretary (License Certificate No. 1108/AK3/U/V/2011 and assignment from Ministry of Manpower No. KEP 1142/M/DJPPK/V/2011 as a General OHS expert valid until 23 May 2014).

Reports of the Guiding Committee of Occupational Health and Safety are: 1. Report of the Guiding Committee of Occupational Health and Safety of SRGM for the period of 3rd Quarter (No.

01/SRGM-P2K3/Disnaker/10/2012) and Report of the Guiding Committee of Occupational Health and Safety for the period of 2nd Quarter (No. 01/SRGM-P2K3/Disnaker/10/2012) submitted on 3 October 2012 and 3 July 2012 (handover evidence from Labour agency is available)

2. Report of the Guiding Committee of Occupational Health and Safety of SSRE for the period of 3 rd Quarter (No. 003/SSRE-P2K3/Disnaker/10/2012 submitted on 8 October 2012 (Delivery report from Representative Office in Sampit is available, but there had been no evidence of handover from Manpower Service) and report of the Guiding Committee of Occupational Health and Safety for the period of 2nd Quarter (No.003/SSRE-P2K3/Disnaker/10/2012) on 14 July 2012 (evidence of handover from Labour agency is available).

3. Report of the Guiding Committee of Occupational Health and Safety of TRWE for the period of 3 rd Quarter (No. 119/TRWE-10/2012) submitted on 3 October 2012 (evidence of handover from Manpower Service is available) and report of the Guiding Committee of Occupational Health and Safety for the period of 2nd Quarter (No. 160/TRWE-07/2012 on 5 July 2012 (evidence of handover from Labour agency is available).

4. Report of the Guiding Committee of Occupational Health and Safety of SRGE for the period of 3 rd Quarter (No. 016/SRGE-P2K3/Disnaker/09/2012) submitted on 10 October 2012. The evidence of handover accepted by Jariyah from Manpower, Transmigration and Tourism Service of Seruyan District is available.

5. Report of the Guiding Committee of Occupational Health and Safety of TNGE for the period of 3 rd Quarter (No. 03/TNGE-P2K3/Disnaker/10/2012) submitted on 25 October 2012. The evidence of introduction letter No. 047/TNGE-SPB/X/2012 accepted by Jariyah from Labour agency, Transmigration and Tourism Service of Seruyan District is available.

6. Report of the Guiding Committee of Occupational Health and Safety of BTGE for the period of 3 rd Quarter (No.


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010/EM/EXT/BTGEX/2012) submitted on 8 October 2012. The evidence of introduction letter No. 012/BTGE/SPB/P2K3/10/2012 accepted by Jariyah from Labour agency, Transmigration and Tourism Service of Seruyan District is available.

Based on the Decree of Assignment as Secretary of Guiding Committee of Occupational Health and Safety, the principal duties of the secretary include:

1. Leading and coordination secretarial duties. 2. Scheduling monthly meeting of Guiding Committee of Occupational Health and Safety. 3. Preparing everything related to the activities of Guiding Committee of Occupational Health and Safety. 4. Delivering meeting invitations and meeting materials to the Guiding Committee of Occupational Health and Safety. 5. Writing monthly reports. 6. Giving suggestions and recommendations to the management. 7. Organizing documentation and administration. 8. Identifying rules and regulations and requirements of Guiding Committee of Occupational Health and Safety and

coordinating with relevant institutions. 9. Acting as a daily executor of chairman‟s duties.

Interviews with OHS Expert at Sungai Rungau Estate (Mr. Suriono), Tangar Estate (Mr. Aryo Handono) and Bukit Tiga Estate (Mr. Edison) showed that they have understood all duties and responsibilities as secretaries of Guiding Committee of occupational Health and Safety. Company has included all workers in Labor Social Assurance (JAMSOSTEK) cover for permanent employees (SKU-B and SKU-H) with the programs of Retirement Security (JHT), Death Security (JKM) and Work Accident Security (JKK); as for BHL workers are programs of Work Accident Security (JKK) and Death Security (JKM). There is evidence of JAMSOSTEK contribution paid by the company, for example:

1. In Terawan Estate, there is a Recapitulation of pay cut for Labor Social Assurance payment of 513 permanent employees in August (NPP No. RR0102110000). There are also evidence of Labor Social Assurance payment and document of contribution fulfillment for 232 BHL employees in September (paid on 10 October 2012).

2. In Sungai Seruyan Estate, there is a Recapitulation of pay cut for Labor Social Assurance payment of 422 permanent workers in September. There are also evidence of Labor Social Assurance payment and document of contribution fulfillment for 499 BHL workers in October (paid on 2 November 2012).

3. In Sungai Rungau, there is a payment detail of Labor Social Assurance for the period of November 2012 proven by document No. 1105210. The payment by cheque No. BR 660915 was accepted by the party of Labor Social Assurance on 13 December 2012 covering payments for 413 SKU workers and 125 BHL workers.

4. In Tangar Estate, there is a payment detail of Labor Social Assurance for the period of November 2012 proven by document No. 1101795. The payment by cheque No. BR 660906 was accepted by the party of Labor Social Assurance on 11 December 2012 covering payments for 434 SKU workers and 174 BHL workers.

5. In Bukit Tiga Estate, there is a payment detail of Labor Social Assurance for the period of November 2012 proven by document No. 19002847. The payment by cheque No. BR 660909 was accepted by the party of Labor Social Assurance on 13 December 2012 covering payments for 305 SKU workers and 184 BHL workers.

Regular medical screening for all workers (high risk and non-high risk) is performed every year by the Company‟s Doctor (Certificate of Company Hygiene and Occupational Health No. 23.355/DH-XV/10. Assignment of the occupational health examiner physician is based on No. 114/PPK-PNK3/KK/IX/2010). The screening includes physical screening (weight, height and blood pressure). Special check-ups for workers at high-risk are conducted every 6 months (June and December). The company cooperates with the third party i.e Company hygiene and occupational health, labour agency, and Transmigration Service of Pontianak, with the type of examinations of cholinesterase for those who work with chemicals, audiometric for the workers who work in the area of noise, and spirometry for workers with dust hazards.

a. Physical screening Physical screening is performed in respective work unit: at Terawan Estate on 2 - 10 April 2012, at Sungai Seruyan Estate on 15 February and 16 April 2012, at Sungai Rungau Mill on 16 – 19 July 2012, at Sungai Rungau Estate on 7 – 11 April 2012, at Tangar Estate on 17 – 19 April 2012, and at Bukit Tiga Estate on 20 – 23 April 2012, followed by all employees of head office, and employees of Division I to Division VI.

b. Cholinesterase


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The screening was conducted on 6 June 2012 for spraying workers, warehouse clerks, warehouse chief, spraying foremen, operators and mill laboratory workers. The numbers of workers examined in respective unit are 34 workers from Terawan Estate, 29 workers from Sungai Seruyan, 14 workers from Sungai Rungau Mill and 32 workers from Sungai Rungau Estate, 46 workers from Tangar Estate, and 27 workers from Bukit Tiga Estate. The test result shows normal, mild intoxication and moderate. For mild intoxication the company‟s doctor recommended that the workers can work with chemicals under monitoring of PPE use. For moderate results the doctor recommended a mutation to the station unrelated to chemicals. For example, Mutation Letters on behalf of Mainudin (Sungai Rungau Estate) on 25 June 2012 who was transferred from chemical spraying‟s car operator to water pump operator at Pondok 2 SRGE and on behalf of Susanto (Tangar Estate) who was transferred from spraying work to maintenance work started from 7 June 2012 based on the Decree No. 002/TNGE/SK/VI/2012.

c. Audiometric Audiometric screening was conducted on 5 June 2012. There is a recapitulation of periodical audiometric test for manpower in Region Kalimantan Tengah 2 available for generator operators, grass cutters, and WTP amounted to 23 workers from Rungau Estate, Bukit Tiga Estate, Seruyan Estate, Terawan Estate and Tangar Estate. The result of the test showed that 4 workers were impacted and the company‟s doctor recommended the using of PPE and mutation.

d. Spirometry Spirometry test was conducted on 5 June 2012. There is a recapitulation of periodical spirometry test for manpower in Region Kalimantan Tengah 2 for graders and grader helpers amounted to 8 workers. The result showed that 4 workers‟ health were normal and 4 others had mixed obstructive restrictions. The company‟s doctor recommendation is the use of PPE.

There is a document of the Review of Hazard Identification and Risk Control for the period of July 2012-June 2013 for all activities at the estate and mill including source/incidents, impacts, existing control, rules of OHS requirements and initial risk analysis (levels of possibility, severity and risks). At the estate, activities identified are commuting to and from work, Mature Plants treatment (boundary poles maintenance, loading abnormal main plants, ditch washing, maintaining path manual, path spraying, maintaining collection road and harvesting path, fertilization, eliminating weeds, rats, maintaining Tyto alba, maintaining APH, maintaining roads, empty fruit bunches application, fertilization by aircraft, harvest, warehouse (solar warehouse, fertilizer warehouse, spare parts warehouse, agrochemical warehouse, oil warehouse, hazardous waste warehouse, drug warehouse), emplacement maintenance, workshops (welding, generator/water engine, heavy equipment operations, grinding machine operations, electric drill operations, vehicle repair, compressors). For the infrastructure: the maintenance and construction of buildings, polyclinic, warehouse and workshop, and washing place for caps and used sacks of fertilization. There is training program of OHS in the year of 2012 in respective estate and mill compiled by the Head of Education and approved by the Chairman of Guiding Committee of Occupational Health and Safety.

1. Training of Electrical Operators Certification was planned in January 2012 and implemented on 25-28 January 2012 by Sotter TAA (Certificate No. 0174/TK3-LIST/II/2012).

2. Training for Welders Certification on 29 November – 4 December 2010 for Zuli Agus Prasetya No. Reg. LOG 004 011687 2010 in the work field of Factory.

3. Training of Boiler Operator License, on 23 March 2011 for Ali Muhtar Boiler Operator Class I (Certificate No. 09.804/PNK3-PUBT/OB-I/X/09 and License of OHS No. 09.804/PNK3-PUBT/B-I/X/09)

Program/Implementation of OHS training at the Estate among others: 1. Training for Electric Operator Certification on 25-28 January 2012 attended by Qenox Ngatoan (Generator Operator)

with Certificate No. 469-OPK3-PUBT-B.I /II/2011 and from TRWE on behalf of Edy Mulyana with Certificate No. 0203/TK3-LIST/II/2012.

2. Training for Welder Certification on 11 September 2012 for mechanics in SSRE and TRWE at Sungai Rungau Training Center (attendance list and photos of the event available).

SIO training for forklift and conveying was conducted on 9-11 April 2011 and 12-14 April 2012 at Sungai Rungau Training Center to 51 operators. Emergency Response Procedures :

1. SOP for Waste Management are available, Document No. SOP/SPO/SMART/LH-18 available. Point B explains Emergency Response for Waste Temporary Storage.


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2. SOP for Emergency Handling are available, Document No. SOP/SMK3/SMART/LH-09 dated 1 July 2012 include hazard identification, system to prevent and to deal with effects due to an emergency, response action in the event of emergency, a state of recovery and documentation.

3. Flowcharts for emergency handling are available, such as: flowchart of fire handling, flowchart of earthquake emergency handling, flowchart of waste spills handling, flowchart of pesticide intoxication handling, and flowchart of occupational accidents handling.

There is an emergency response team in every estate and team with a structure that consists of Chairman of Emergency Response with 5 groups, security group with several members, cleaning group with several members, evacuation group with several members, and health and Connector Team. There are simulations/training of emergency response available, such as:

1. Fire fighting simulation in SSRE on 7 September 2012 attended by 23 participants and on 1 May 2012 attended by 37 participants (attendance list, training materials and photos of the event available).

2. Simulation and socialization of emergency actions in Sungai Rungau POM on 14 June 2012 attended by 32 participants (attendance list, training materials and photos of the event available).

3. Simulation of Fire Extinguisher on 1 May 2012 in TRWE housing attended by 26 participants (attendance list, training materials and photos of the event available).

Implementation of emergency response procedures, for example:

- Related to awareness of emergency response procedures of fire in the area of housing, based on the interview with Ms. Eva Desanti in Pondok 2 Sungai Rungau Estate, it was explained that if there is a fire there will be a bell ringing continously and people must immediately gather at the rallying point in the field area of Pondok 2 Sungai Rungau Estate. The simulation of fire emergency response at Pondok 2 Sungai Rungau Estate was held on 13 April 2012.

- For occupational accident emergency, a mill worker, Mr. Fazar (sterilizer operator) explained in an interview that in case of occupational accident, first aid should be given if the victim is not immediately taken to the central polyclinic of Sungai Rungau Estate. The accident is reported to the supervisor/assistant and the assistant then reports it to SPO Officer. The SPO Officer investigates the accident and makes a report of the investigation result.

Implementation of the compliance of Occupational Health and Safety Program and First Aid Emergency, among others:

1. Personal Protective Equipment (PPE) Company provides PPE such as helmets, aprons, masks, gloves, safety goggles, earplugs, earmuffs and boots. There is evidence of PPE handover in Pondok I SSRE to 7 spray workers on 19 April 2012, in Pondok I TRWE to 30 harvest workers on 14 May 2012, and in Sungai Rungau POM to 3 mill workers on 3 November 2012. PPE monitoring is conducted every month in each estate that includes the inspection of each type of PPE, Condition (good or damaged, the number of PPE) and remarks. For example, PPE inspection in Terawan Estate on 8 October 2012 and 18 October 2012 at Division I with boots type of PPE, the condition showed 32 pairs were in good condition and 3 pairs are damaged, the remarks that they would be replaced as soon as possible. As a follow-up of the inspection result, there was a request for new boots on 24 October 2012 (PR No. 10786035).

2. Fire fighting Facilities and Infrastructure Company provides facilities and infrastructure for fire fighting. In Sungai Rungau Estate, there are 55 powder-type tubes, 3 types of foam, sands, burlap sacks, hooks, fire beater, knap sacks, hoes, shovels, fire water tanks, pumping machines, hoses, nozzles and tractors..

3. First Aid Emergency Company provides First Aid Emergency box that contains 21 items according to Regulation of Labor Ministry No. 15 year 2008 in each work unit of the estate and mill. In Sungai Rungau Estate, inspection is performed twice a month. The First Aid Emergency boxes are placed in RC Office, Head Office, Workshop, Central Warehouse, and Division Office of Pondok 1 to 3, and Daycare (BPA) Pondok 1 to 3, Kindergarten, Elementary School, Junior High School, and Mess 1 to 4. Based on the field observation, the spray foreman in Block Q66 and harvest foreman in Block Q69 of Bukit Tiga Estate, and empty bunches foreman in Block M31 of Sungai Rungau Estate carry a bag full of First Aid Emergency supplies in complete condition and ready to use. In Sungai Rungau Mill, at the processing office there is a First Aid Emergency box type B also in complete condition and ready to use, along with the recording when in use. In addition, at the daycare of Pondok 2 Sungai Rungau estate, there is also a First Aid Emergency box type A in complete condition according to the list of the content.


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Company has conducted First Aid Emergency Training for workers in the mills and estates. The training was conducted internally with the company‟s doctor as the instructor.

1. In Terawan Estate, the training was on 8 May 2012 and attended by 83 workers. It took place at Pondok 2 TRWE Elementary School.

2. In Sungai Seruyan Estate, the training was on 23 April 2012 and attended by 79 workers. It took place at SSRE Tennis Court.

3. In Sungai Rungau Mill, the training was on 10 April 2012 and attended by 39 workers. It took place at SRGM Employee Hall.

4. In Sungai Rungau Estate, the training was on 7 May 2012 and attended by 100 workers. It took place at SRGE Sports Hall.

5. In Tangar Estate, the training was on 4 May 2012 and attended by 60 workers. It took place at SDS Hall. 6. In Bukit Tiga Estate, the training was on 3 May 2012 and attended by 69 workers. It took place at Kebun Bukit Tiga

Elementary School. There is a document of occupational accident recapitulation per month in every estate and mill that describes time of the incident, name of victim, data of the victim (sex and the consequences), estimated loss and the cause of the accident. There is an analysis of occupational accident contained in the document of Annual Recapitulation include FR (Frequency Rate/average level of frequency) and SR (Severity Rate/average level of severity) in the Mill and Estate which is conducted every month, along with the analysis performed by the Guiding Committee of Occupational Health and Safety in their report every 3 month. Based on the report of the Guiding Committee of Occupational Health and Safety of Tangar Estate for the period of 3 rd quarter, there is a recap of occupational accident on 10 September 2012 on behalf of Sarojo, harvester whose eyes exposed by oil palm pollen. There is a report of accident investigation performed by Tangar Estate assistant that explains the chronological incident that when harvesting, the victim‟s eyes were exposed by oil palm pollen. From the chronology, the follow-up recommendations are the positions should be safe during harvesting, workers must wear PPE provided by the company, and the ergonomics of harvesters‟ goggles that are currently often dewy will be reviewed. There is also a claim for Labor Social Assurance available in the form of KK2.


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

There is a Matrix Document of Training Needs Identification and socialization of the year 2012 available updated on 3 January 2012 and approved by the Unit Head (Manager), which describes the name of the department/field and type of training/ socialization. There are also training programs and workers dissemination in the year of 2012 made by SPO officers and approved by the Unit Head (Manager). Workers training programs in 2012 in the work unit of the Estate and Mill, among others: First Aid Emergency training, using the fire extinguisher, land and housing fire simulation, heavy equipment operator training, electoral operator training, IPM Training, hazard identification risk assessment and risk control training, company hygiene and occupational health, spray worker training, welders, the use of limited pesticide training, MSDS, ISCC, leaf sampling unit, workshop programs for teachers and principals, SIA and FPIC training, comprehension and prevention of HIV/AIDS, erosion measurement, RSPO dissemination, and SOP and IK dissemination. Records of the training are stored in the personal file of each worker. For example:

1. According to the personal file of Suripto, NIK 10011 Division II TRWE has received 4 types of training from 2011 to 2012.

2. According to the personal file of Muh. Arief, NIK 27000 SSRE Head Office has receivd 1 training from 2012. 3. According to the personal file of Waluyo Sutrisno, NIK 11009 Process II (W. Loader Operator) has received 3 types of

training from 2012. 4. There is a record of ISCC Comprehension training in Region „Kalimantan Tengah‟ 2 on 23 July 2012 took place in

SRTZ with the trainer from Environment Department of PT. SMART, Tbk. The training was attended by participants from RC, PC, and Unit Head of each Estate, Assistant and SPO Officers.

Evidence that the company has hired trained contractors is available in document of SPK. For example, in SPK No. 017/SSRE/VII/2012 – ATBS and SPK No. 010/SGRE/IX/2012 – ATBS, article 7 paragraph 3 states that the second party hires trained and experiences labors and paragraph 5 states that drivers must have Driving License. In addition, based on the SPK


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document review with the contractor CV. Samaco No. SRGM/LKL/09/2011/010 – for the replacement of Vortex Fiber Cyclone of Sungai Rungau POM, the company required evidence of contractor competency as the construction expert. CV. Samaco showed evidence of competency in the form of certificate of construction service entity No. 1244/GAPEKSINDO/13/12/08.


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 mitigate negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

1. There are environmental impact assessment documents owned by PT. Sumber Indah Perkasa: a. The Environmental Impact Assessment Document (EIA) and the Environmental Management Plan/Environmental

Monitoring Plan for the Construction of a Palm Oil Mill (80 Ton/hour) covering an area of 27.21 Ha situated in Asam Baru Village, Hanau Sub-district, Seruyan District, Central Kalimantan, which had been authorized on 8 July 2004 and approved by the Head of the „Kotawaringin Timur‟ Regional Environment Impact Control Agency, the Head of the „Kotawaringin Timur‟ Environmental Impact Assessment Monitoring Commission Number 42/komisi-Kotim/VII/2004.

2. There are environmental impact assessment documents owned by PT. Binasawit Abadi Pratama: a. Environmental Impact Assessment Document and the Environmental Management Plan/Environmental Monitoring

Plan for the Construction of a Oil Palm Estate and a Palm Oil Mill owned by PT. BAP situated in Danau Sembuluh, Seruyan Tengah and Hanau Sub-district, KotawaringinTimur District, Central Kalimantan Province. The documents had been approved based on the Republic of Indonesia‟s Minister of Agriculture‟s letter Number 015/ANDAL/RKL-RPL/BA/VIII/1997 dated 7 August 1997 encompassing the Environmental Impact Assessment, Environmental Management Plan/Environmental Monitoring Plan for an area of 17,780 Ha and the construction of a POM with a 60 Ton FFB/hour capacity.

The companies report the results of environmental management and monitoring to the Environment Bodies of Seruyan District regularly. There are Environmental Management Plan/Environmental Monitoring Plan report submission receipts belonging to SIP and BAP. The companies have sent the reports of Environmental Management Plans and Environmental Monitoring Plans done by PT Sumber Indah Perkasa and PT Binasawit Abadi Pratama to the regional and provincial Environmental Bodies. The reports were submitted on 5 November 2012 and 10 December 2012. Non-conformance status CAR 2012.01 is closed BAP has not yet been able to produce revisions of the environmental management and monitoring documents encompassing an area of 20,152.79 Ha. Non-conformance status CAR 2012.02 Based on the observations of the environmental documents (EIA, Environmental Management Plan/Environmental Monitoring Plan), it was found that the area covered by the environmental impact assessment in PT. Binasawit Abadi Pratama (BAP) was only 17,780 Ha, whereas its operational area covers 20,152.79 Ha. There are still 2,373 Ha of BAP‟s operational area that is not included in the environmental assessment studies (EIA, Environmental Management Plan/Environmental Monitoring Plan) owned by BAP. The process of document-requesting are

a. Requesting guidance from Seruyan District Environmental Bodies in accordance to the letter 020/EL-ENVD/BAP-BLH/II/2012 pertaining to the difference between the EIA and the Land Use Title documents obtained by PT Binasawit Abadi Pratama.

b. Requesting similar guidance from the provincial Environmental Bodies in Palangkaraya in accordance to the letter 053/EL-TA/ENVD-BAP-BLH/XI/2012.

c. Requesting similar guidance to point (a) above from the Ministry of Environment in accordance to the letter 063/EL-EHS/BAP-KLH/XI/12.

BAP has sent letters to Seruyan District and Palangkaraya Environmental Agency, and the Ministry of Environment, but there is no response yet for the revision of the environmental management and monitoring documents. On the other hand, the company already has action plans for fulfillment of these document revisions.


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Status: NC. See CAR 2012.02 with Minor category

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 has been identification of High Conservation Value areas and species by PT. SMART, Tbk‟s Department of Environment which is registered at RSPO. The protected or endangered species and HCV habitats are: 1. In BAP Plantation, 52 kinds of flora or plant were identified, and 4 of them are protected (Dipterocarpus grandiflorus,

Mangifera pajang, Eusideroxylon zwageri, Diospyros sp.) 2. The wildlife identified through direct observation for HCV identification is: 12 kinds of birds, 7 kinds of mammals, and 4

kinds of reptiles. The identification of endangered wildlife results were: a. Birds: Honey bird (Endangered), Cekakak belukar (Endangered), eagle (Endangered/App II), Kerangkeng Hitam

(Endangered/App II), pijantung kecil (Endangered),king shrimp (Endangered), rangkong (Endangered/App II), tiong emas (App II), black eagle (Endangered/App II), pekaka emas (Endangered).

b. Mammals: Bear (Endangered/App II), Macan akar, the Long-tailed Macaque, Orang-utan, the Silvery Gibbon, Deer c. Reptiles: Lizard, Cobra, Python, Gharial.

The HCV Identification Results Summary:

HCV Identification

Bukit Tiga

Estate (Ha)

Tangar Estate (Ha)

Sungai Seruyan Estate (Ha)

Sungai Rungau Estate (Ha)

Terawan Estate (Ha)

TOTAL (Ha)

1.1 Rungau River, BTGE1 River, BTGE2 River, BTGE Water Catchment Area, Merah River, Seruyan River, Serindu River, Terawan River

126.84 357.76 574.46 174.49 155.2 -

1.3 Riparian areas 235.07 357.76 574.46 174.49 155.2 -

1.4 126.9 154.83 338.95 -

2.3 Riparian areas conservation areas

154.83 338.95 -

4.1 Riparian and Water Catchment areas

235.07 361.1 574.46 174.49 155.2 -

4.2 BTGE forested valley 108.23 -

6 TNGE Grave and Cemetery (P-62), SSRE S-27), SRGE (N-23, N-24)

2.68 -

TOTAL 235.07 363.78 574.46 174.49 155.2 1,503

The reports of the identification results have been reviewed by a Peer Reviewer which is also registered as an HCV Assessor by RSPO. The steps were taken by the management of PT. BAP to protect rare and endangered species are:

1. Routine patrolling in HCV areas in each of PT BAP‟s estates 2. The installation of HCV sign such as endangered species posters, HCV location boundary poles, warning signs, and

riparian HCV warnings 3. Rehabilitation of HCV areas, for example hard-wood tree nurseries and buffer plant plantings 4. Endangered species monitoring in HCV areas

There are several steps taken to protect rare and endangered species, i.e.:

1. Patrolling the HCV areas in each of BAP‟s estates regularly 2. The installation of HCV sign such as endangered species posters, HCV location boundary poles, warning signs, and

riparian HCV warnings. 3. Rehabilitation of HCV areas, for example forest plant nurseries and the planting of erosion-buffering plants


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4. The monitoring of protected species. There are posters and warning signs about protected species available. Dissemination of the presence of HCV areas and protected species has been done to the employees and the people living in the vicinity. The evidence of the dissemination process is available, i.e.:

1. HCV socialization on 5 July 2012 at Pondok 3 Terawan Estate which was attended by 39 people (employees). 2. Sign Board (Prohibition/Warning) construction such as at the Sungai Seruyan Estate:

a. Block Q-40, the installation of Wildlife Habitat and Merah River Riparian Area HCV 1.1; 1.2; 1.3; 4.1 warning signs b. Block O-22, Q-24, Q-29, Q-33, Q-35, R-14, S-24, S-36, U-23, U-30, U-36, U-38, the installation of Wildlife Habitat

and Riparian Area HCV 1.1; 1.2; 1.3; 4.1 warning signs c. Block S-27, the installation of Graveyard/Cemetery warning sign HCV 6 d. Block P-38, the installation of a Protected Wildlife pictorial warning sign e. There has been a dissemination activity aimed at the communities around BAP‟s estate on 7 March 2012 which

was attended by 27 people from the adjacent communities (Asam Baru, Rungau Raya, and Sebabi Villages), explaining that within BAP‟s area there are protected areas, wildlife, and plants.

The company has appointed and trained special officers at each estate to monitor plans and execution of HCV-related activities.

Tangar: P. Arief Kurniawan,TangarEstate Manager decree Number 10/TNGE/INT/03/02/2010, dated 6 March 2010

Seruyan: Kristi Wibowo, Seruyan Estate Manager decree Number 003/EM-SS/VI/2012, dated 1 June 2012

Sungai Rungau: Jonathan Panjaitan, Sungai Rungau Estate Manager decree Number 06/SPO/SRGE/XII/2012, dated 1 December 2012

Terawan: Tri Pramono , Terawan Estate Manager decree Number 002/TRWE/03/2012, dated 1 March 2012

Bukit Tiga: Jeremia Stefanus Radja, Bukit Tiga Estate Manager decree Number 01/BTGE/IV/2012, dated 1 March 2012.


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

Identification of waste and pollution source is stated in the Estate Environmental Aspect List document, describing the types of activities that cause pollution, the environmental aspect (pollutants and waste) and potential impacts. For example, the type of pollution-causing activity (spraying), the environmental aspect (pollutants and waste) is drops/spillage of the herbicide and the packaging, the potential impact is water and soil pollution. Solid Waste Management Shell and fiber solid waste is managed as boiler fuel, while sludge is managed as effluent for plantation application. The procedure related to this is MCMD (Management Committee for Mill Development) SOP Revision 4. Hazardous Material Management There is the Head of Seruyan District‟s Decree Number 313 2012 concerning to Permit for Storing Hazardous Material to PT. Binasawit Abadipratama for 5 places (Sungai Rungau Estate, Terawan Estate, Bukit Tiga Estate, Tangar Estate, and Sungai Seruyan Estate) and the Letter Number 298 2011 dated 23 September 2011 concerning the Permit for Storing Hazardous Material to PT Sumber Indah Perkasa (SGRM). The hazardous materials are sent to a licensed hazardous material collector. The companies monitor the volume of hazardous materials resulting from mill activities, including the input and output periods. The hazardous materials monitored are used motor oil, used rags, used filters, and used batteries. The hazardous materials are then sent to a licensed collector. Based on the document perusal, the companies send the hazardous materials to the collector in less than three months time, before the regulation time limit. PT Nazar is the hazardous material collecting company which has received a permit from the Minister of Environment based on the decree Number 122 Year 2012. The auditor visited the hazardous material storage location in the Rungau Mill. The warehouse has been equipped with hazardous material symbols and the access is limited to special officers. There is a trap to collect any spillage, the officers are equipped with personal protection equipment, and the ventilation is adequate. The special officers monitor the movements of waste materials to and from the warehouse and make sure that the hazardous materials are sent to the licensed collector in 90


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days. The minutes of waste material shipment to PT Nazar:

a. The shipment on 6 September 2012, 400 liters of used lubricant, 80 kg of used rags and filters, a 70-Ampere used battery.

b. The shipment on 28 November 2012, 700 liters of used lubricant, 40 kg of used rags and filters, a 70-Ampere used battery.

c. The shipment in June 2012, 400 liters of used lubricant, 200 kg of used rags and filters, a 370-Ampere used battery. The management of used chemical packaging There is a pesticide and fertilizer packaging washing and cleaning instruction. Used fertilizer packaging is washed 3 times (in accordance to MSDS) and the water is re-used for spraying. Sacks are soaked for 30 minutes and the water is used to water the oil palm plants or any plants in the yard. Based on the Waste Material Management SOP document number SOP/SPO/SMART/LH-09 dated 1 July 2010, point 6.3.b explains that waste pesticide packaging which has been washed is returned to the supplier. An agreement with PT Rolimex Kimia Nusamas exists, number 002/RKN-FER/PER/II/2012 pertaining to the Transportation of Herbicide Packaging within the Area of PT BAP. There is a handover report for used herbicide packaging dated 5 November 2012 for 5 empty Rolixone jerry-cans, 10 empty Roll Up jerry-cans, and 742 empty Ekafuron bottles. There are empty packaging of other pesticides such as starene which are managed by washing the empty packaging 3 times (as prescribed on the label/MSDS) and collected at a licensed Temporary Storage Area. There was an agreement with PT Kastraco Engineer on 4 November 2012 about the collection of used chemical packaging from the mill. PT Kastraco has collected 9 units of chemical packaging on 22 November 2012. Based on the information obtained from the coordinator of SPO PSM 6, the company is currently working on a proposal to the supplier (PT Dow AgroScientes Indonesia) so that the empty starane packaging at the unit could be collected soon. Effluent Management Effluent is managed by constructing waste water treatment ponds. The waste water is treated and then applied to the plantation. The company assesses the quality of the effluent and the debit/volume of treated waste water applied to the plantation. Rungau Mill‟s effluent is applied to Block L23 – L26, Block K23 – K26, Block J23 – J27, Block I23 – I27 covering an area of 338.38 ha. This is in compliance to PT Binasawit Abadi Pratama‟s oil palm processing waste water usage permit which was issued by the Head of Seruyan District (Decree 112 Year 2011). There is waste monitoring/analysis: 1. Hazardous Material

There are Hazardous Material Balance documents available at both PT. Binasawit Pratama and PT. Sumber Indah Perkasa. For example, the mill documents at Sungai Rungau Estate and Tangar Estate. The matrix for the incoming of hazardous material to the temporary storage area explains the type of waste, the date of entry, the source of hazardous material, and it also states maximum storing period is 90 days. The outgoing of hazardous materials from the temporary storage area contains: the hazardous material exit date, the volume or amount of hazardous material exiting, the destination, the document number evidence, and the amount of hazardous material left in the warehouse.

2. The analysis of effluent in the pond before land application:

Monthly results of analysis of the effluent in the pond before land application were conducted by Sucofindo‟s laboratory are available, for example, on 17 October 2012 showing COD: 15,022.08 Mg/l, BOD5: 2371.45 Mg/l; pH: 8.3; Oil and Grease 1,368 mg/l; Total Suspended Soil 21456 Mg/l and Total Solids 45,306 Mg/L which are below the environmental threshold (the Regulation of the Ministry of Environment Number 29 Year 2003). The results of the analysis have been accepted by the Environmental Bodies.

The results of an analysis of the effluent in the pond before land application were conducted by Sucofindo‟s laboratory in November 2012 are available. The results are pH 6.94, BOD5 2,978.70 mg/l, and Total suspended solids 16,583 mg/l.


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There are results of an analysis of the effluent in the final pond before land application. For example, in the Environmental Management Plan/Environmental Monitoring Plan documents semester I Year 2012, there was a result of a effluent analysis that was over the threshold (8,598.1 Mg/l/May 2012). Based on an analysis, the result was due to the tardiness in delivering the sample to the Testing Laboratory. The result of the next analysis showed that waste water quality analysis results were below the environmental threshold.

The results of the February 2012 effluent analysis by the Smartri Testing Laboratory were: BOD5 2,932 mg/l, and Total solids 26,516 mg/l.Smartri Testing Laboratory has received accreditation from the National Accreditation Committee.

The February 2012 effluent analysis by PT Sucofindo‟s Testing Laboratory showed that the BOD5 was 16.


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

Monitoring records are up-dated every month for the use of renewable energy sources in the form of shell and fiber from fresh fruit bunches. Based on calculations, the potential energy produced from 1 kg shell is 4,150 Kcal and 1 kg fiber is 2,637 Kcal. Up to November 2012, the potential energy produced from shell and fiber was 282,201,502,163 Kcal, and the total energy needed for processing CPO was 173,584,528,924 Kcal while the CPO produced was 118,629.911 Tons. Therefore the renewable energy used (from shell and fiber) was 1,463,244 Kcal per ton CPO. The leftover renewable energy produced was enough to run the turbine so the need for fossil fuel or diesel fuel was relatively low. The records for the monthly monitoring show an average of 1.91 Kcal per Ton CPO, whereas the amount of FFB processed in November 2012 was 496,615,050 kg and the diesel fuel that should have been needed was 2,177,778 liters(1 liters diesel fuel = 1053 Kcal). Based on the calculations, there has been 1,956,896 liters of diesel fuel saved and the average amount of diesel fuel used was 1.92 Kcal per ton CPO. Based on the calculations, renewable energy from shell and fiber have a great potential for running the turbine and reducing the use of diesel fuel; the use of diesel fuel is relatively low, 89.86 % less the normal need. Based on the calculations, up to November 2012, 496,615,050 kg of FFB has been processed and the need of diesel fuel for processing and non-processing was 2,177,778 liters, but the actual use was only 220,882 liters or saving 89.86 %. The saving is caused by excess renewable energy from shell and fiber in the Boiler.


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.

In compliance to the Sinar Mas Oil Palm Cultivation Technical Guidebook (Agronomy and Research Management Committee) Point 5 pertaining to land clearing and planting, document number SMA/MCAR/05/05-07, land clearing is conducted with the Zero Burning principle. Operational waste (pesticide and fertilizer packaging) is not destroyed through incineration. These packaging are managed according to the Pesticide Packaging and Fertilizer Sack Washing and Cleansing Working Procedure in compliance to the pesticide packaging and fertilizer sack washing and cleansing working instructions, document number IK/SPO/SMART/LH-09/01 which was authorized on 1 July 2010.The washing is done at a designated area; the packaging are washed until clean (3 times for pesticide packaging and once for fertilizer packaging). The waste water does not spill over and pollute the soil. Pesticide packaging that have been washed are marked with a check mark and are stored separately. Sacks which have been washed are immediately dried and stored in the warehouse. The company has produced a brush fire control procedure document numbered SOP/ NP/SMART/XI/LH002 authorized on 1 July 2010. In the SOP, there was an explanation of the process how a fire emerges, the parts of fire in a brush fire, the shapes of brush fire, the duty and responsibilities of the fire fighting team, the steps in overcoming a fire, i.e.: identification of fire hazards, the brush fire extinguishing process, firefighting equipment, and post-fire activities. There is a fire-prone area site map for Tangar Estate at blocks S55, R54, and R55 which was made by the Occupational Health and Safety Assistant and approved by the Estate Manager on 3 March 2012. There is a fire-prone area site map at Bukit Tiga Estate along the buffer of block O79, O80, and O81


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There is a fire-prone area site map at Rungau Estate along the buffer that borders the community area and also in the housing area. There are records of fire extinguishing simulations: Tangar Estate:

There is a documentation of a brush fire on 20 March 2012 which was attended by 23 people

There is a documentation of a brush fire on 23 April 2012 which was attended by 15 people

There is a documentation of a brush fire on 18 July 2012 which was attended by 48 people

Bukit Tiga Estate

There is a documentation of a brush fire on 14 January 2012 which was attended by 53 people Sungai Rungau Estate

There is a documentation of a brush fire on 13 April 2012 which was attended by 37 people

During the fire simulation, there were brush fire scenarios and evaluations of the simulation. In the fire emergency procedures, there is information about brush fire control facilities and equipment. Based on the document, PT BAP has undergone a facility and equipment evaluation, for example: Sungai Rungau Estate: 1 unit water tank, 2 units hose, 1 unit nozzle, 1 unit Alcon,14 units fire blanket, 14 units hoe, 12 units machete,2 units axe, 8 units fire beater,14 units buckets, 15 units hook-pole, 11 units shovel, and 4 units knap sack sprayer Tangar Estate: 1 unit tractor, 1 unit water tank, 1 unit hose, 1 unit nozzle, 1 unit Alcon, 25 units fire blanket, 6 units hoe, 4 units fire beater,6 units bucket, 26 units hook-pole, 11 units shovel, and 6 units knap sack sprayer Bukit Tiga Estate: 1 unit water tank, 1 unit hose, 1 unit nozzle, 1 unit Alcon, 6 units water blanket, 3 units hoe, 7 units f ire beater, 11 units hook-pole, 6 unit shovel, and 7 units knap sack sprayer Aside from those, there are also an organizational structure of the emergency response team and an evaluation of the adequacy of the fire control facilities and equipment. Based on an evaluation by Occupational Health and Safety experts, the amount of equipment is deemed adequate for control of the simulated brush fire.


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

An identification of environmental aspects (the environmental aspect list) is conducted every year for pollution and emission sources at the mill. The last one was conducted in January 2012. Environmental aspects are identified in all palm oil mill activities, i.e.: the entrance gate, the weigh bridge, the parking lot, the grading area, the loading ramp, the sterilizer, the thresher, the press, the nut and kernel area, the clarification area, the storage tank, the CPO dispatch area, the engine room, the boiler, the Water Treatment Plant, the chemical warehouse, the hazardous material temporary storage area, the diesel fuel storage, the vehicle wash office, the housing area, and the lubricant or fossil fuel warehouse. The results of the environmental aspects identification are managed and controlled through procedures and direct actions in the field in order to minimize pollution and emission. For example, the boiler emission is managed through procedures and chimney assessment activities and regular engine maintenance; pollution due to splatters of motor oil at the vehicle washing area are managed through oil traps and the used rags that are then collected at the hazardous material temporary storage area. The emission quality monitoring of pollution sources and emissions was last done in June 2012 (a six month period) for 2 units generator, 3 units boiler, and all vehicles. Based on the emission quality assessment, the results:

a. For generator units (the Regulation of the Ministry of Environment number 21/2008 Appendix A, Emission Threshold for Non-Mobile Units) was below the predetermined threshold.

b. For the boiler unit, the emission quality assessment result (the Regulation of the Ministry of Environment number 7/2007 Appendix B. Emission Threshold for Boilers using Biomass Fuel) was below the predetermined threshold.


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c. For operational vehicle units (the Decree of the Ministry of Environment number 5/2008 Appendix I B, Emission Threshold for Motorized Vehicles), the result was below the predetermined threshold.

d. Noise from the mill‟s operational activities (the Decree of the Ministry of Environment number 48/MENLH/11/1996, the Noise Threshold) was still below the predetermined threshold and is still manageable with the use of earplugs.

e. Noise at workplaces (Regulation number 13/Men/X/2011, the physical and chemical threshold for workplaces) is manageable with a compulsory use of earplugs.

Air ambiance (PPRI number 41/1999 pertaining to the National Air Ambiance BM) is still within the regulations and is manageable. Emission reduction is conducted through regular maintenance of the machinery (boiler, generator and vehicles). The program consists of a schedule and realization of production process machinery, an emission reduction program and realization by replacing all machinery spare parts, including those for the boiler and the vehicles, a special emission reduction program for the machines of 2 units of generator. Besides that, the company planted rain trees which are planted in order absorb carbon dioxide (CO2) in and around the mill. The planting was planned to span the year 2012 and the actual planting was evaluated for the percentage of growth. BAP has received a permit for using effluent from the palm oil industry on the soil of PT.Binasawit Abadi Pratama‟s estates based on the Head of Seruyan District‟s Decree number 112 Year 2011 which is valid for 2 years, starting from 3 January 2011 to 31 December 2012. The permitted area covers 338.38 Ha (18 blocks, blocks L23 - L26, K23 - K26, J23 - J27, and I23 – I27). BAP must report the effluent application activities to the Head of Seruyan District. The parameters observed are: 1. Monthly: Debit (daily), BOD (daily), COD (daily), pH (daily), oil and grease (monthly), Pb (monthly), Cu (monthly), Cd

(monthly), Zn (monthly). 2. Every 6 months: BOD, COD, pH, NO3as N, NH3-N, Cd, Cu, Pb, Zn, Cl, SO4. 3. Annually: soil quality monitoring in the application area (the silt-pits) and on control areas at the depths of 0-20 cm, 20-40

cm, 60-80 cm, 80-100 cm, and 100-120 cm. The water pH, organic C, total N, available P, exchangeable cation/Ka Na Ca Mg, KTK, alkali saturation, heavy metals (Pb, Cu, Zn, Cd), texture (sand, dust, clay)oil and grease.

There are 9 ponds at Sungai Rungau-SIP‟s POM Waste Water Treatment Installation. Each pond has a capacity of 10,000 m3 with a total of 90,000 m3. There are Land Application monitoring documents at Sungai Rungau Estate which explain the location (block), acreage (ha), waste debit (m3), plans, and plan realization. Since the period of January – October 2012, 26,368 units of effluent totaling 504,802 m3 have been applied to the flat beds with a 3 times a year application rotation.


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 social impact analysis of PT. Binasawit Abadi Pratama‟s Palm Oil Mill and Plantation Study Report (Danau Seluluk Sub district, Seruyan District, Central Kalimantan) in March 2012 by the Environmental Department team of PT SMART Tbk.. The documents include the positive and negative aspects and the involvement of the community being affected. A social management and monitoring plan was designed by involving the community being affected by BAP‟s plantation. There is evidence of community involvement in the field data collection, i.e.:

- The Attendance List for Information Gathering through Questionnaire Distribution to the people of Sebabi Village at Sebabi Mosque on 2 March 2012

- The Questionnaire Appendixes which have been filled in by the village inhabitants (respondents) - Photographs of the information gathering process


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There is also evidence of the dissemination of the Social Impact Assessment results, i.e.: - The attendance list for the Social Impact Assessment result dissemination to the surrounding community on 7 March

2012. - The minutes of the Social Impact Assessment Public Consultation on 7 March 2012. - The report of the Social Impact Assessment Public Consultation on 7 March 2012.

The appendix forms of PT. Binasawit Abadi Pratama‟s Social Impact Assessment Plan and Social Impact Management Plan are available in the final result report of PT. Binasawit Abadi Pratama‟s Social Impact Assessment. The company has submitted the reports on regular basis and has made necessary revision to the RKL/RPL report by including

the social impacts in a form of employment opportunity for the people living in nearby villages. Non-conformance status CAR

2012.04 is closed.

But PT BAP is not yet able to shown a revision for the environment management and monitoring documents for an area of 20,152 Ha. Non-conformance status CAR 2012.03

Status: NC, See CAR 2012.03 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.

There is a Communication and Consultation SOP for the Estate and POM available; the document number is SOP/NP/SMART/XIV/MCAR003 dated 01 July 2010 whose purpose is to ensure that all communication and consultation activities with both internal and external parties in all oil palm estate and management activities runs smoothly and effectively. There is a mechanism to guide internal and external communication and consultations. Internal communication and consultations include special and regular meetings, the training handbook, videos, notice boards, monthly and weekly reports, including the environmental performance report, telephones/cell phones, handy-talkies, SSBs, and suggestion boxes. External communication includes complaints, demands, claims, and dissatisfactions pertaining to estate and POM management. The period of response is three weeks from the time the information is received by the management. There is a record of the list of Terawan Estate stakeholders and contact people, i.e. the head of the villages adjacent to the estate, government officials, government institutions, NGOs, and companies around PT SIP and BAP. There are records of requests from the communities adjacent to the estate, for example: Sungai Rungau Estate:

There is a record of a request for heavy equipment for clearing the access roads from Jl. Jend. Sudirman Km. 107, Rungau Village to Sungai Rungau Estate on 19 November 2012

There is a record of a request for financial assistance from the Hero Day, PGRI Anniversary, and KORPRI Anniversary committees on 17 October 2012 which was responded by the company on 01 November 2012 by giving IDR 500,000.

Tangar Estate

There is a record of a request for financial assistance for accommodation and transport funds from Rungau Raya Village on 1 October 2012 which was responded by the company on 02 October 2012 by giving IDR 500,000.

For handling communication and consultations with the community, the company has appointed a PIC (person in charge) whose responsibilities are:

1. Answering to the top management of the organization for the communication and consultation process with stakeholders and acting as a spokesperson for the top management in communication, consultation and conflict resolution with stakeholders

2. Ensuring the conduct of a communication and consultation process which is done according to the stakeholder communication and consultation SOP

3. Coordinating with supporting units if deemed necessary according to the type of problem faced in order to receive input


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The company has appointed PIC as follows:

Decree Number 001/RC-RSPO/03/2012 dated 1 March 2012 appointing the BTGE unit head as the community communication and consultation PIC for Bukit Tiga Estate

Decree Number 002/RC-RSPO/03/2012 dated 1 March 2012 appointing the TNGE unit head as the community communication and consultation PIC forTangar Estate

Decree Number 004/RC-RSPO/03/2012 dated 1 March 2012 appointing the SRGE unit head as the community communication and consultation PIC for Sungai Rungau Estate


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 an SOP for Complaint and Dissatisfaction Handling. The document number is SOP/NP/SMART/XII/MCAR001 dated 01 July 2010 aimed to ensure a harmonious communication with both internal and external parties related to the company in compliance to the Regulations and Laws which apply. The internal mechanism is the Unit Head receives incoming letters/aspirations, the Assistant Head verifies it, and the employee‟s complaints and dissatisfaction are responded directly. The period for response is one week after the complaint is received for internal communication and one month for external communication. The external mechanism is the Unit receives complaints and expressions of dissatisfaction from external parties in writing/orally, the Unit Head verifies it, the Head of the Sub Division gives suggestions, the Unit Head searches for data and information sources, the response is given through the Head of the Sub Division in maximum a month after the complaint is received. There are suggestion boxes available in every estate. There is also Land Dispute Resolution SOP available, number SMART/LH-04 dated 01 July 2010 whose purpose is:

1. ensure a harmonious communication between with the company and the communities adjacent to the estate, especially pertaining to land ownership according to the Regulations and Laws that apply

2. smoothen the monitoring of field activities, especially those related to land dispute to resolve them as per the company‟s aim

There is a Suggestion Box Incoming Letter Log Book in every estate. The suggestion boxes are a channel for receiving complaints/objections from other parties. There are examples of Suggestion Box Incoming Letter Log Books in Rungau, Tangar and Bukit Tiga Estates. Based on these books, it can be seen that there have been no complaints/objections from other parties.


6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

There is a Land Compensation Procedure. No. SOP/NP/SMART/VII/D&L002, effective 1 July 2010. The SOP‟s scope is any activity related to the land compensation process and procedures for land/productive plants within the Location Permit/Land Rights managed by the company.

Based on Environmental Impact Statement Guideline Frame (KA- ANDAL) 1996 of PT. Binasawit Abadi Pratama‟s document page II-6, explained the entire area was obtained from the Department of Forestry, was a forested area with no community-cultivated areas. Therefore, there had been no need for land acquisition activities. There were only 25 households around the Trans South Kalimantan Road (Km 37 – Km 112) and the people had been put in an enclave so there were no land acquisition problems.

PT. Binasawit Abadi Pratama‟s land acquisition and cultivation are based on the Minister of Forestry‟s Decree Number 33/Kpts 11/96 pertaining to the Release of Part of the Forest in the forest group of Seruyan River and Mentaya River, Kotawaringin Timur District, South Kalimantan Province. In the land acquisition process there was no land compensation process because the entire area from a released forest area.

Based on the Area Statement, information from management and the Head of Village and community leaders in surrounding villages (Sebabi and Rungau Raya Villages), it was discovered that there are no claims or land disputes in the area managed by PT. Binasawit Abadi Pratama, so there has never been any land compensation process.



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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.

There is PT. SIP and PT. BAP employee salary for year 2012, which is based on the Governor‟s decree number 38year 2011 about the UMSK is IDR 1,464,000,-/month. The salaries are determined based on the Board of Directors‟ Decree number 388/HR Ops/12/2011 about the determination of SKU employees‟ salary of IDR 1,464,000,-/ month. There is a PT. SIP-BAP Company Regulation Period 2012-2014, which was approved through the Seruyan District Labor, Transmigration, and Tourism Agency Decree number 560/897/DISNAKERTRANSPAR/V/2012 and also an appendix, the attendance list of the meeting about Suggestions and Considerations for the Company Regulation Draft 2012-2014 in the SGRM meeting room on 07 February 2012. The meeting was attended by 14 employees. Based on the field observation in Pondok 2 Sungai Rungau Estate, there are facilities provided by the company, for example Type G1 and G2 houses, a mosque, child care center, clean water from a well, and electricity supplied by the Mill. According to the interview with Ms. Eva Desanti, the houses provided are in good repair, the clean water is potable, the electricity is adequate, the health facilities in the form of a polyclinic is adequate and provides good service, and the company school is free. The results of the interview with Ms. Rosdiana, the caretaker at the Sungai Rungau Child Care Center, show that the Child Care Center is clean and secure, equipped with a first aid kit, a fire extinguisher, and an Emergency Response Flow Chart. For health care facilities, the company provides a central polyclinic and estate/branch polyclinics staffed by 1 doctor and company paramedics (midwives and nurses). It was observed during the field observation to the Central Polyclinic that there is an examination room, hospitalization rooms for men, women, and children, a minor surgery room, a labor room, and an apothecary. The polyclinic is clean and well-organized and there is a treatment flow chart pamphlet and some health promotion posters. There is SOP number SOP/SMK3/SMART/LH-26 about the Contractor Control Standard Operation Procedure which is aimed to assure that all contractor activities in the Company observes the social, economic, and occupational safety and health aspects. For example, the statement in the FFB Transportation Job Contract between the Company and Ilyas Ataleb (contractor) Number 010/TRWE/LKL/10/12-ATBS, Article IV: The contractor must sign up all its employees in the Labor Social Assurance program. Article VI: The contractor must pay its employees‟ wages based on the effective laws and must not employ minors (children below 18). Article VII: The contractor assures the Safety and Health of its employees and it must employ experienced and trained employees.


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.

The freedom to join a union is regulated in the Memo Number 020/HR PSM6/01/11 authorized on 03 January2011 which states that the company gives complete freedom to the employees to form unions and gather. The company has labor organizations; the Independent Labor Union (Serikat Pekerja Mandiri (SPM)) and the Bipartite Cooperative Institution (LKS Bipartit), i.e.:

The Seruyan District Head of the Labor, Transmigration, and Tourism Agency‟s Decree Number 560/838/KEP/NAKERTRAN/XII/2009 pertaining to the Documentation of the Tangar – Bukit Tiga Estate Independent Labor Union dated 11 December 2009 is available. The organizational structure is: Mujahidin as chairman, the vice chairman, the secretary, and the 1st and 2nd treasurers, Sub divisions I to VI, sub BTGE, BPK, BKO. The secretariat is located at Jl. Sampit Pangkalan Bun KM 107 Block P 47 Pondok I Tangar.

The Seruyan District Head of the Labor, Transmigration, and Tourism Agency‟s Decree Number 560/528/DISNAKERTRANSPAR/III/2012 about the legalization of PT. Binasawit Abadi Pratama‟s Bipartite Cooperative Institution Tangar Estate and Bukit Tiga Estate units authorized on 21 March 2012 is available. The organizational structure: Mujahidin as the chairman, the vice chairman, the secretary, the members from businesspeople and

employees. The Seruyan District Head of the Labor, Transmigration, and Tourism Agency‟s Decree Number

560/529/DISNAKERTRANSPAR/III/2012 about the legalization of PT. Binasawit Abadi Pratama‟s Bipartite Cooperative


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Institution Sungai Rungau Estate unit authorized on 21 March 2012 is available. The organizational structure: Pariama

Sinaga as the chairman, the vice chairman, the secretary, the members from businesspeople and employees. The Bipartite Cooperative Institution holds a meeting every month. There is a meeting minutes for the Sungai Rungau Estate‟s Bipartite Cooperative Institution on 28 September 2012. The agenda was a discussion of the follow up for fulfilling the need for clean water at Pondok 3 Sungai Rungau Estate. The meeting was attended by the SRGE unit Head, the Assistant Head, the Head of the Administration Office, and foremen. The construction of a well was proven by an acceptance document for the wells for Pondok 2 and 3 dated 10 December 2012. The recipient was Budijanto (the chairman of SRGE‟s Independent Labor Union) and there were also photographs of the constructed wells. The Independent Labor Union held a meeting on 6 March 2012, proven by TNGE-BTGE‟s Independent Labor Union minutes of meeting whose results were the discussion of the formulation and the formation of the Bipartite Cooperative Institution based on the Minister‟s Decree Number 32 year 2008 and the reports to the Seruyan Labor Agency. The meeting was attended by the chairman and the members of each division.


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.

The company has policies pertaining to the minimum age of the employees. The minimum age is 18 years old. This is stated in the Job Contract (SGRM) Number 013/SRGM/SIPL/06/2012 dated 11 June 2012article 5 verse5, and Memo Number 002/SE-HRDV/03/09dated 31 March 2009. During stage-2, the implementation of the minimum age policy was proven by the Sungai Rungau Estate, Tangar Estate, and Bukit Tiga Estate‟s employee data recapitulation, period November 2012. The data for permanent employees (SKU-B and SKU-H) and temporary employees (PKWT) were based on their birth dates and employment dates. None of the employees were below 18 when they were employed by PT. BAP. Based on the field observations at several locations such as the head office, the division offices, and the hazardous material and fertilizer warehouse at Sungai Rungau Estate, there are notices about the prohibition for employing children and in the recruitment process there is an 18 year minimum age requirement in compliance to the Statute number 13 Year 2003 about labor.


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

There are several documents available: Memo number 034/HR OPS/01/11 dated 03 January 2011 about the Execution of Industrial Relations in PT. BAP‟s Units, Memo Number 042/HR OPS/01/11 dated 03 January 2011 about the Execution of Industrial Relations in PT. SIP‟s Units, and the 2012-2014 period Company Regulations Chapter II Article 5 verse 4. The memos and Company Regulations explained that every operational unit must conduct industrial relations free from tribal, racial, and gender prejudice in all kinds of jobs. There is a recapitulation of the employee data period November 2012 from Sungai Rungau Estate, Tangar Estate and Bukit Tiga Estate for permanent employees (SKU-B and SKU-H) and temporary employees (PKWT). The company gives equal opportunity without the consideration of gender, religion, or tribe. In Tangar Estate, the employees come from various tribes such as the Banjar, Batak, Bugis, Dayak, Flores, Java, Lio, Lombok, Madura, Nias, Sasa, Sunda, Toraja, Aceh, and various religions such as Islam and Catholic. The number of female workers is 103 and male 329.


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.

There is a memo reference number 118/HR PSM 6/08/2011 issued by the director (Edy Saputra Suradja and Jimmy Pramono) on 1 August 2011 about the sexual harassment prohibition and the penalty given to the offenders; from in disciplinary conduct to dismissal.


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The policy for the protection of reproductive rights is stated in:

a. The Company Regulation period 2012-2014, was approved by Seruyan‟s Head of the Labor, Transmigration, and Tourism Agency on 24 May 2012, which contain:

Article 7 point 6about the regulations pertaining to female employees

The company gives leave for female employees, both field workers and office workers, who are feeling pain during the first and second days of their menstrual periods, causing them to be unable to work. The leave is given based on the company doctor or paramedic‟s letter of recommendation.

Female employees who are still breastfeeding are given a chance to breastfeed their children. If done during office hours, it has to be done with the approval of their immediate superior and lasts for a maximum duration of 2 hours. The breastfeeding leave can be used until the child is 2 years old.

Article 21 about pregnancy/miscarriage/maternity leave

Pregnant female employees or those about to give birth can have a paid 1.5 month leave before giving birth and another 1.5 month leave after giving birth based on the doctor or midwife‟s calculations.

Female employees who have undergone a miscarriage have a right to have a leave of up to 1.5 months long based on the assessment of a doctor or midwife.

Those who are proposing a maternity leave must submit their proposal to the company with a letter of recommendation from the treating doctor or midwife.

b. The memo reference number 045/HR OPS/01/11 dated 3 January 2011 about giving a leave during the menstrual period. The menstrual period leave is given based on a letter of recommendation from the company doctor or paramedic.

c. The memo reference number 067/HR OPS/01/11 on 3 January 2011 about the sprayer workers‟ occupational health and safety. There is a company policy prohibiting pregnant or breastfeeding female workers from working as a sprayer worker.

The company has constructed a gender committee structure which receives complaints about sexual harassment that happens within the company.

There is decree number 005/EM-SSRE/VI/2010 from the Sungai Seruyan Estate Manager about the appointment of Ms. Irawati as the chairwoman of the SSRE unit gender committee on 1 June 2010

There is decree number 004/EM-TR/VI/2010 from Terawan Estate Manager about the appointment of Ms. Sri Maryati as the chairwoman of the TRWE unit gender committee

There is decree number 14/SPO-INT/SK/X/2012 from the SGRM Mill Unit Head about the appointment of Ms. Ranestuti as the chairwoman of the Sungai Rungau POM gender committee

Sungai Rungau Estate‟s Gender Committee which was legalized on 30 March 2011 is headed by Ms. Lina Marlina (Decree Number. 02/UH-SRGE/III/2011, her appointment as the Women‟s Commission Board Chairwoman)

Tangar Estate‟s Gender Committee which was legalized on 30 March 2010 is headed by Ms. Hartini (Decree Number. 01/UH-TNGE/III/2011, her appointment as the Women‟s Commission Board Chairwoman).

Bukit Tiga Estate‟s Female Protection Commission is headed by Ms. Sumarni (Decree Number. 030/EM-BTGE/III/2010, her appointment as the head of BTGE unit Gender Committee).

Dissemination of information about sexual harassment was conducted on 3 December 2012 at Pondok 1, 2,and 3 Sungai Rungau Estate. The dissemination was delivered to sprayer workers, maintenance workers, pickers, and harvesters. They were briefly informed that if sexual harassment occurs, they should report it to the Women‟s Commission. The person who filed the complaint, together with a member of the Women‟s Commission must report it to the unit head. All sexual harassment reports are recorded in the complaint log book and are followed up until the case is resolved. There is a Female Employee Union Complaint and Dissatisfaction handling flow chart available.

Based on the field observation and interview with Ms. Eva Desanti (Pondok 2 Sungai Rungau Estate), they have received dissemination on sexual harassment delivered by the Sungai Rungau Estate Gender Committee. In the dissemination, it was explained that house hold abuse is also considered as sexual harassment. In it was also explained the procedure for filing a complaint of sexual harassment.

The company implements policies pertaining to the protection reproductive rights, H1 (menstrual period leave) and H2 (pregnancy and maternity leave), i.e.:

There is an actual list of the 2012 H1 and H2 leaves for the TNGE Employees. There is a letter of reference from the Tangar Clinic dated 24 October 2012 for Isa Fitria; it states that she needed an H1 leave from 24-25 October 2012,


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and in the Main Salary List of October 2012, it was stated that she had received her full pay without having the H1 leave cut.

There is a Statement of Pregnancy number 03/PLKL.TNGE/X/2012 for Anisah. The H2 leave was given from 16 October 2012 to 8 January 2013, and in the Main Salary List of October 2012, it was stated that she had received her pay.

Based on the field observation at Q66 Bukit Tiga Estate, there were no pregnant or breastfeeding women. The company also conducts regular check-ups to make sure that none of the employees working with chemicals (sprayer workers) are pregnant (a list of non-pregnant/breastfeeding employees check-up list) as seen in the document examples of the November, September, and August check-up list conducted by the estate doctor or midwife. Based on the SOP about the Gender Committee, number SOP/SPO/SMART/LH-15 authorized on 1 July 2010, there is a mechanism for handling special complaints, i.e.:

The Gender Committee receives and documents reports from employees who believe that they are victims of sexual harassment or from witnesses;

The Gender Committee then informs the counselor to give counsel and to coordinate with the Gender Committee in order to respond to the complaint. The Gender Committee witnessed by the counselor makes the official report of the complaint and the chronological report;

The Gender Committee with the counselor reports to the Unit Head to resolve the problem;

If the unit head is unable to resolve it, the Gender Committee and the counselor will assist the unit head in resolving the case. The Gender Committee, counselor, and Unit Head assist the regional controller/ processing controller in resolving the case;

If the regional controller/ processing controller is unable to resolve the problem, the Gender Committee, counselor, and Unit Head assist the Vice president of agronomy/ Vice president of mill in resolving the problem;

If it still cannot be resolved, the Gender Committee, counselor, and Unit Head assist the person who filed the report to give relevant statement if the case is to be brought to court.

During Stage-2, based on the interview with the secretary of the Sungai Rungau, Tangar, And Bukit Tiga Estates Guiding Committee of Occupational Safety and Health, there have been no reports of sexual harassments.


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

The document of FFB receipt at Rungau Mill showed that FFB is not supply from Smallholders/independent smallholders but all FFB is supply from core plantation of PT BAP The field visit and interviews with the operators at the mill also suggested that the mill did not receive FFB from another company, plasma or from the community. The company was hiring local contractors for some particular works, such as construction of infrastructure, and FFB transportation service. There is a specific agreement prepared for every work, which was agreed by both the company and the contractor. Sample of Mutual Working Agreement is available in SPKL/SRGE/IX/12/006, for a contract work of 20 x 40 m of warehouse floor molding. The payment system was agreed to be settled after the works have completed and payable on the same period as employees‟ payroll. The payment was done in 3 stages, the first was for the amount of IDR 5,400,000; the second stage was for IDR 6,750,000; and the last was for IDR 1,350,000. Another sample is available in Mutual Working Agreement SPKL/SRGE/II/12/2004 for a contract work of trench system construction. The payment system for this type of work was agreed to be based on the work progress in the field. It was done in 6 stages; the first stage was for the amount of IDR 7,780,000; the second and the third stages were for IDR 5,900,000 respectively; the fourth stage was for IDR 7,080,000; the fifth was IDR 8,900,000; and the last stage was for the amount of IDR 6,077,000. The payment was done in stages to comply with the initial agreement prior to the start of the works.



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

There are evidence of records to validate the company‟s efforts in making contributions towards local development. Such as: 1. Recap of Regional Levies Year 2010 for five Estates and one Mill. The levies paid by each estate are in the form of

vehicle tax, while those paid by the Mill are of Vehicle Tax and Surface Water Levy, in accordance with the Circular No. 973/112/III/UPTD/SRY/2012.

2. Evidence of Payment for Land and Building Taxes (PBB) of PT. Bina Sawit Abadipratama for the year of 2012 (IDR 2,013,052,460).

3. Diploma scholarships granted to 12 students in 2012. 4. Recap of Plans and Realizations of PT BAP‟s CSR programs in 2012. The total allocated budget per November 2012

was IDR 24,617,861,665.


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.

The company did not carry out any new development after November 2005.

Status Not Applicable

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.



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.



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



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.



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.




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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.



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.

An action plan is available for every environmental aspect resulted from the operational activities in the Oil Palm Plantation and Palm Oil Mill.

The use of chemicals was complying with the regulation and was regularly monitored and evaluated. The monitoring was conducted in order to control and to reduce the use of chemicals to minimize the contamination caused during the process. Such monitoring was in accordance with the applicable regulations.

The control of environmental impacts i.e water, soil and air emission contaminations, conducted through action plans and procedures. These action plans were evaluated on a regular basis to monitor their development or the progress of the actions taken, e.g.; when the monitoring and the measurement done show the results that exceed the specified quality standard, a corrective action shall be taken on field, such as the regular maintenance of processing and boiler machines, as well as the action of planting trees that was taken to reduce other emissions.

As for the social impacts, the company has prepared a controlling action plan with its procedure (e.g.: the mechanism for handling complaints and discontents, and the mechanism for land dispute settlements) and the on-site social program actions such as Corporate Social Responsibility (CSR) and other assistance were given to the community, job openings and job opportunities.

The result of stage-1 visit has revealed that there were 4 non-conformance potentials and 2 opportunities for improvements (OFI). The four non-conformances found were then followed up with several quite significant actions to meet the RSPO standards. A stage-2 visit has confirmed that such corrective actions were considerably effective, even though there were still two non-conformances that haven‟t been able to be dealt with. The follow up actions towards such non-conformances were recorded, documented, and controlled by the company.



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3.2. Summary of Assessment Report of Supply Chain

Clause (Module E) CPO Mills - Mass Balance Requirements

1 Documented Procedures

1.1

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

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

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

a. SOP for identification and traceability (PT SIP-SRGM/SOP/01 dated 1 May 2012). Scope of area; the process of FFB received as the raw materials until the delivery of processed finished products. The supply chain system was applied based on the principles of “Mass Balance”, where the FFB received from different origins were processed together. The Mass Balance system is specifically stipulated in the procedure of PT SIP-SRGM/SOP/17.

b. The personnel in charge of the application of the said requirements were as follow:

An assistant, to monitor that the FFB received were to meet the specified standard and criteria, also to supervise the FFB processing and the process of quality analysis of the processed products.

Head of Administration, to handle the recording and reporting of both the quantity and the quality of processed products on a regular basis, to supervise the administrative process of FFB receipt and processed products delivery, to supervise that the important equipments used in the supply chain system were in good condition, and to calculate the mass balance based on the number of the products claimed as certified products. Head of Administration appointed by Production Controller is responsible for the implementation of Supply Chain. Letter of appointment was issued by the management representatives on 15 May 2012 as PIC RSPO - SCC Officer.

Mill Unit Head (Management‟s Representative), to be in charge of the entire process of supply chain and to ensure that such process is well implemented, to ensure the mass balance calculation was correctly done in order to be able to determine the number of certified products and to provide certified-product-related information for the people who need it.

Production Controller, to ensure and guarantee that the resulted products were traceable to their sources, and that the products delivered were meeting the required quantity and quality.


1.2

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

SOP for identification and traceability (PT SIP-SRGM/SOP/01 dated 1 May 2012). Scope of area; the process of FFB

received as the raw materials until the delivery of processed finished products.

The supply chain system applied based on the principles of “Mass Balance”, where the FFB received from different origins are processed together.

At the receiving process, the certified fruits are separated from those non-certified by using the MASS BALANCE stamps and by inputting them using a computerized system, which confirmed that the certified FFB only come from 5 estates of PT Binasawit Abadi Pratama (BAP).


2 Purchasing and goods in

2.1

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


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Even though SIP and BAP have not been RSPO certified, the organization has already been using the document to determine the certified and non-certified FFB, by recording the fruits receipt in the Fruit Receipt Memo (SPB) form. This also includes the weighing tickets using MASS BALANCE stamps and then it is inputted on computerized system as certified fruit during weighing.


2.2

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

It was specified in the procedure of PT SIP-SRGM/SOP/01 dated 1 May 2012, section 6.2.2 (1) regarding Quantity Monitoring, that (in the event) when the production claimed is higher than those previously projected, it is mandatory that such issue be informed to MUTUAGUNG.


3 Record keeping

3.1

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

The step of process are recoreded and up date, as follows :

1. Weighbridge (sale/purchase of Contract/PO, Fruit Dispatch Memo--SPB, weighing ticket)

2. EOR and KER Process (CPO and Palm Kernel production reports)

3. Storage tanks (CPO production tanks and Kernel Storage Bin)

4. Dispatch Oil (CPO is stored and distributed to the trucks)

5. Truck Tanks

6. Weighbridge (Product Delivery Memo, Weighing Ticket, Entry Permit, and Weighing and Installation of Seal

Inspection).

Example:

- Reports of monthly production of SRGM (Sungai Rungau Mill) for year 2012, e.g. August 2012.

- Information Purchase Order (P/O), which includes the information on quantity estimates and origin of estate that

accepted at the beginning of month. The SAP system (system application production and data processing) and

origin estate have suggested that there were five estates (of PT BAP) that delivering certified fruits.

- Fruit Dispatch Memo (SPB) from relevant estates, such as from Seruyan Estate on 22 August 2012 No. 076148

and weighing ticket no. A046094. Both forms were “MASS BALANCE” stamped, indicating that the fruits were

delivered from certified estates, while those not from certified estates were not Mass Balance stamped.

- The KER and OER processes were recorded daily, separated into certified and non-certified CPO (Crude Palm Oil)

and PK (Palm Kernel), as well as the records of supply stocks in the Oil Storage tank and Kernel Storage Bin.

- Oil Dispatch – using weighing tickets which are MASS BALANCE stamped, and equipped with Delivery Dispatch

Memo from SRGM to Bulking Station (PT SMART Tbk in Jakarta).


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

Section 6.4 in SOP of identification and traceability (PT SIP-SRGM/SOP/01 dated 1 May 2012) stipulates the minimum 5-year retention period for the records being kept that are related to supply chain. The daily records and summary are also kept to show the results of certified and non-certified FFB processing, including the CPO.


3.3 (a) The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and

palm kernel meal on a three-monthly basis. (b) All volumes of palm oil and palm kernel oil that are delivered are deducted from the material accounting system

according to conversion ratios stated by RSPO. (c) The facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short.


ASSESSMENT REPORT

SPO – 4006a. 5 48


Despite the fact that it has not been RSPO certified yet, the organization has been using a MASS BALANCE mechanism for certified FFB receipt and the delivery of RSPO Certified Palm Oil, by using the volume credit option, which is determined by the sources of certified raw materials on a 3-month basis. However, the actual practice on the field allows it to be determined on daily, weekly, and monthly basis. The daily Oil Extraction Rate (OER) and Kernel Extraction Rate (KER) that are being processed will also be able to indicate the MASS BALANCE of certified and non-certified products. Both CPO and Palm Kernel resulted – certified and non-certified – are recorded and calculated by comparing the certified FFB and non-certified FFB that are received, and by using the OER and KER calculations. The current stocks of CPO products were able to be separated into certified and non-certified products by comparing the compositions of the fruits that were received; certified fruits and non-certified fruits. For example: in August 2012, the FFB received were composed of 42,012 tons of certified fruits and 1,227 tons of non-certified fruits, which resulted into 9,797 tons of certified CPO stocks and 1,256 tons of non-certified CPO stocks.


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

Despite the fact that it has not been RSPO certified yet, the organization is referring to the P/O from certified estate (PT BAP) in using MASS BALANCE stamps in the delivery form for RSPO certified products. As for the sales of CPO or Palm Kernel, the products delivered were still from the same group (SMART Tbk), for which the classification arrangement for MASS BALANCE identification has been specified in the sales contract form. Declaration 4 of the SALES and GOOD OUT has also specified that the invoice issued for RSPO palm oil and its derivations shall include the following information; name and address of the buyers, date of invoice issued, number of invoice, number of product type (MB), amount of products delivered, references to the RSPO‟s IT, and references of documents related to transportation. These documents were signed by the CEO of PSM 6, PT Sumber Indah Perkasa, on 12 March 2012.


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

Sungai Rungau POM, SIP was only having sales transaction of Palm Kernel with the third party, and was not having any arrangements with the management of Kernel Crushing Plant.


4 Sales and goods out

4.1

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

(a) The name and address of the buyer

(b) The date on which the invoice was issued

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

(d) The quantity of the product delivered

(e) Reference to related transport documentation

Despite the fact that it has not been RSPO certified yet, the company has arranged that the delivery of CPO shall be done with the following information to be listed in the Product Delivery Memo; buyer‟s address, type of CPO, ordering contract number, weighing ticket number, CPO quality (FFA, oil rate, moisture), temperature, vehicle‟s seal number, vehicle‟s license


ASSESSMENT REPORT

SPO – 4006a. 5 49


number. The weighing ticket shall also include the following information; CPO‟s origin or MILL, ticket number, CPO‟s weight data, contract number, delivery memo‟s number, and vehicle‟s number. Both forms were marked with MASS BALANCE stamp. Declaration 4 of the SALES and GOOD OUT has also specified that the invoice issued by SMART Tbk Jakarta for RSPO certified palm oil and its derivations shall include the following information; name and address of the buyers, date of invoice issued, number of invoice, number of product type (MB), amount of products delivered, references to the RSPO‟s IT, and references of documents related to transportation. These documents were signed by the CEO of PSM 6, PT Sumber Indah Perkasa, on 12 March 2012.


5 Training

5.1

The facility shell specifies and provides the training for all staff as required to implement the requirements of the Supply Chain Certification Systems.

SIP and BAP have collectively conducted the training for all staff, in compliance with the implementation of SCCS (Supply Chain Certification System), the events of which are as listed below: 1. 8 March 2012, held in the meeting room of SRGM, and was focusing on the Supply Chain System for dedicated CPO.

The event was attended by 18 participants and the record of such training result is available at SIP office. 2. 11 October 2012, focusing on the dissemination of SCCS. The event was attended by 31 participants, and the record of

such training result is available at SIP office.


6 Claims

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

No arrangements have been made on the usage or the support on the RSPO certified palm oil that complies with the RSPO Guidelines for Communication and Claims (OFI).

It is recommended that the organization make arrangements for the usage or the support on the RSPO certified palm oil that complies with the RSPO Guidelines for Communication and Claims.OFI 2012.04.



ASSESSMENT REPORT

SPO – 4006a. 5 50


3.3. Conformity Checklist of Certificate and Logo Use (for surveillance)

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

S-1 -

Status:

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

S-1 -

Status:

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

S-1 -

Status:

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

S-1 -

Status:


ASSESSMENT REPORT

SPO – 4006a. 5 51


3.4. Summary of RSPO Partial Certification.

There are 17 management units are included in Golden Agri Resources Group, 1 unit has been audited by PT Mutuagung Lestari, and 16 others are still in the preparatory stage of certification. Management units belonging to the Golden Agri Resources Groups are:

1. PT. Bumi Sawit Permai 2. PT. Djuanda Sawit lestari 3. PT. Sawit Mas Sejahtera 4. PT. Bumi Permai Lestari 5. PT. Forestalestari Dwikarya 6. PT. Sinar Kencana Inti Pekasa 7. PT. Sumber Indah Perkasa (Lampung) 8. PT. Sumber Indah Perkasa (Lampung) 9. PT. Sinar Kencana inti Perkasa 10. PT. Purimas Sasmita 11. PT. Agro Lestari Mandiri 12. PT. Kencana Graha Permai 13. PT. Mitra Karya Agroindo 14. PT. Binasawit Abadi Pratama 15. PT. Agrokarya prima Lestari 16. PT. Paramita Internusa Pratama 17. PT. Sawit Mas Sejahtera

Total number of companies that are elected as samples are (0.5 √ Y) where Y is the number of companies incorporated into the same holding. Location of samples for assessment are: PT Binasawit Abadi Pratama (Perdana Mill, Kalimantan Tengah), PT Sumber Indah Perkasa (Sungai Buaya Mill, Lampung) dan PT Forestalestari Dwikarya (Tanjung Kembang Mill, Bangka Belitung). Verification date: February 21, 2013.

2.1

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

Companies comply with the law and regulations related to the environment and prevailing land tenure. No complaints from stakeholders to the company. Based on the results of verification on 3 units as an example of the assessment, there was no non-compliance with regulations. PT Foresta Dwikarya Lestari. PT Foresta Dwikarya Lestari had estates and smallholders. Environmental impact assessment has been conducted by company. ANDAL, RKL and RPL covers an area of 15,000 ha estates and 60 tons FFB / hour mill capacity, while the environmental analysis for the plasma development has been approved by local Environment bodies. PT Sumber Indah Perkasa, Tulang Bawang, and Mesuji Permits related to land tenure are available i.e.:

building construction permit for Mill No. 642/245/650/600/1993 dated March 13, 1993

Location permit G/202/DA/HK/1989 ± 9522 ha dated 29 August 1990 from the Governor of Lampung.

Environmental document in Sungai Buaya Estate and Sungai Merah Estate in 2008. The document has been approved by Lampung Environment bodies.


2.2

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

PT. Binasawit Abadi Pratama (Perdana Mill, Central Kalimantan) Location permit from Seruyan Regent :

1. No. 87/2003, dated 29 Desember 2003 (Second revision No. 22/2004 dated 14 Februari for 15 Ha.

2. Third revision, No. 153/2004, dated 21 Desember 2004 for 15.000 Ha


ASSESSMENT REPORT

SPO – 4006a. 5 52


3. Last revision, No. 03/2006, dated 07 Januari 2006 for 17.600 Ha 4. Land use title on progress

PT Foresta Dwikarya Lestari Estates can show land use title of 11,337.582 ha. Land use title no 1 for 1,082.2 ha concession dated December 16, 2004, land use title no 13 for 923.5 ha and 3,744.93 ha dated December 6, 2001, and land use title no 14 for 5,586.952 ha dated July 30, 1992. PT Sumber Indah Perkasa, Tulang Bawang and Mesuji Estates shown land use title for 9,046.63 ha.


6.3

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

SOP for grievance and complain are available (SOP/NP/SMART/XII/MCAR001), Revised July 1, 2010, and have been socialized on September 28, 2011 in Sumber Makmur Village, Telawang, attended by 30 peoples.

Status: Full compliance

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.

SOP/NP/SMART/VII/D&L002 SOP Land Compensation, revised July 1, 2010 is available. Some land restitution process has been done and recorded. The process of land acquisition was done by mapping, landowners identifying, negotiations between landowner and companies involving villager representatives for land compensation.


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.

There are no new planted in primary forest area since November 2005 or every areal which required for maintain or improve the one or more HCV). Plantation of PT. Foresta Lestari Dwikarya planted in period 1995-1998. No more new plantings after that period. Plantation of PT Sumber Indah Perkasa planted in period 1999-2000. No more new plantings after that period.


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.

Plantation of PT. Foresta Lestari Dwikarya planted in period 1995-1998. No more new plantings after that period. Plantation of PT Sumber Indah Perkasa planted in period 1999-2000. No more new plantings after that period.


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.

Plantation of PT. Foresta Lestari Dwikarya planted in period 1995-1998. No more new plantings after that period. Plantation of PT Sumber Indah Perkasa planted in period 1999-2000. No more new plantings after that period.



ASSESSMENT REPORT

SPO – 4006a. 5 53 Prepared by Mutuagung Lestari for Sumber Indah Perkasa and Binasawit Abadipratama

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

3.5.1 Identification of Findings, Corrective Actions and Observations at Stage 1

During the Stage 1, there was 1 (one) Nonconformity assigned against Major Compliance Indicators. 3 (three) Nonconformity were assigned against Minor Compliance Indicators, 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.

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2012.

01

Major

5.1.2

Environmental Management and Monitoring. SIP and BAP have submitted their reports of environmental management and monitoring on a regular basis, although not all of their supporting evidence‟s were reported in accordance with the RKL/RPL document. BAP: a. The density of vegetation, the

disappearance of certain types of

vegetation, the species diversity of

vegetation.

b. An employment opportunity resulting

from the labor recruitment using a

parameter that manages and

monitors the numbers of local

recruits as well as the total number

of labors hired

There were 12 villages that were

chosen to be the locations of the

SIP

&

BAP

Potential

NC

ST-2 The company must keep

the records of

environmental

management and

monitoring reports on

regular basis to comply with

the current regulation.

The report of RKL/RPL Implementation that

has been revised for PT BAP and PT SIP

has been submitted to the Environment

bodies of Seruyan District and Central

Kalimantan Province.

The evidance of handover of the reports is

available.

Closed 21/12/20

12


ASSESSMENT REPORT


CAR No



Closing Date

monitoring and the managing

process, i.e. Tanjung Hara, Tanjung

Rangas, Asam Baru, Sebabi,

Sandul, Kalang, Durian Kait,

Sahabu, Batu Managis, Derewa, and

Gantung Pengayuh.

SIP: a. The changes occurred in the

physical and chemical properties of

the soil.

b. Nekton resulting from the

management of POM‟s

contaminating waste.

c. The increased transmission and

spread of disease.

d. The increased potentials of traffic

accidents.

e. The increased potentials of

occupational accidents.

2012.

02

Minor

5.1.1

The revised version of environmental management and monitoring document. BAP has not been able to present the revision made to the management and monitoring document which covers an area of 20,152 Ha.

BAP Minor S1 The company must revise

the document of

environmental

management for any

changes in operational

matters or company‟s

activities.

MA: BAP has initiated communication

through correspondence with relevant

institutions, such as Environment bodies of

Seruyan District, Palangkaraya, and

Ministry of Environment. However, no

response has been received to the changes

made to the document of environmental

management and monitoring.

Open


ASSESSMENT REPORT


CAR No



Closing Date

Moreover, the company has already

prepared some action plans in compliance

with the said document revision.

2012.

03

Minor

6.1.2

Revision of the Document of Social Management and Monitoring. BAP has not been able to present the revision on the document of social management and monitoring which covers an area of 20,152 Ha in accordance with the regulation.

BAP Minor S1 The company must revise

the document of

environmental

management and

monitoring, which covers

the social impact

assessment and its relation

to the area changes.

MA: similar to the progress in 2012.02; in

relation to the status of document revision.

Open

2012.

04

Minor

6.1.3

Social management and monitoring.

SIP and BAP has submitted the reports

of the social management and monitoring

in a regular basis, although not all of their

supporting evidence‟s are reported in

accordance with the RKL/RPL document.

BAP:

a. An employment opportunity resulting

from the labor recruitment using a

parameter that manages and

monitors the numbers of local

recruits as well as the total number

of labors hired.

There were 12 villages that were

chosen to be the locations of the

monitoring and the managing

SIP

&

BAP

Potential

NC

ST2 The company must submit

the reports of

environmental

management and

monitoring on a regular

basis and regular schedule,

of which the format is

referring to that of RKL/RPL

that includes the

employment opportunity.

The company has submitted the reports on

regular basis and has made necessary

revision to the RKL/RPL report by including

the social impacts in a form of employment

opportunity for the people living in nearby

villages.

Closed 21/12/20

12


ASSESSMENT REPORT


CAR No



Closing Date

process, i.e. Tanjung Hara, Tanjung

Rangas, Asam Baru, Sebabi,

Sandul, Kalang, Durian Kait,

Sahabu, Batu Managis, Derewa, and

Gantung Pengayuh.

SIP:

a. The increased transmission and

spread of disease.

b. The increased potentials of traffic

accidents.

c. The increased potentials of

occupational accidents.

3.5.2 Identification of Findings, Corrective Actions and Observations at ST2 Assessment During the Stage 2 assessment, there was 1 (one) Nonconformity assigned against Minor Compliance Indicators, 4 (Four.) 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.

CAR No



Closing Date

2012.

05

Minor

4.4.2

Records of the Observation of BOD (Biological Oxygen Demand) The records of BOD observations and the parameters used have revealed that the river water quality, in its relation to the mill effluent, has not entirely been measured and observed by

Estates

and Mills

Minor S1 The company must keep

BOD monitoring records of

mill effluent for river water

quality, by determining the

inlet (upstream) and the

outlet (downstream).

Open


ASSESSMENT REPORT


CAR No



Closing Date

considering the specified inlet (upstream) and outlet (downstream), which is Block K29 (river upstream) and Block A13 (river downstream).

3.5.3 Opportunity for Improvement

No Ref Std Descriptions

OFI 2012.

01

Major 2.1.1

It is strongly recommended that the company build an effective communication with PT Tapian Nadenggan in relation to the compliance with the regulation on the utilization of effluent coming from PT Tapian Nadenggan in the area of Tangar Estate (PT. BAP) which exceeded the specified Land Application permit that covers an area of 45.6 Ha, even though they said LA permit was not owned by PT BAP/PT SIP.

OFI 2012.

02

Minor 4.4.1

It is recommended that the company perform the measurement of water resources management that complies with the specified period and stipulation stated in Permenkes No 416/1990 regarding clean water quality to observe the impact of plantation activities.

OFI 2012.

03

Minor 6.2.1

Is it recommended that the company include Local NGOs, such as Betang Membangun, and Save Our Borneo, into the list of stakeholders.

OFI 2012.

04

SC 6

It is recommended that the company make arrangements or show supports to the use of RSPO certified palm oil, in compliance with the RSPO guidelines for communication and claim.


ASSESSMENT REPORT


3.5.4 Noteworthy Positive Components

No Ref Std Descriptions

1 - Company‟s commitment in implementing the principles of a sustainable oil palm management.

2 - Improvement efforts that have been done and that are taking progress as parts of the sustainable improvements.

3 - Personal competences in each area.

4 - The adequate supporting infrastructure and facilities


ASSESSMENT REPORT


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

Issues from Public (Institutions / NGOs / Community)

Management’s Response Auditor’s Response

Environmental Agency, Kuala Pembuang, Seruyan, Central Kalimantan (Head of Sub-section of EIA and Personnel of Environmental Management)

- A 6-monthly report regularly submitted by Bina Sawit Abadi Pratama (BAP) and Sumber Indah Perkasa (SIP) Plantations.

- Well-maintained communication between the company and the Environment Bodies.

- The commitment shown in compliance with the environmental regulation, such as: Hazardous Waste Management, and land application disposal permit.

- No social or environmental issues arising, such as waste contamination to the surrounding neighborhood.

- Limited personnel in environmental management causing several communication issues with the BLHD personnel; such as delays in submission of the reports and difficulties faced by BLH in conducting field observation visit.

The consultation and communication are to be better maintained. The company has appointed two personnel to have a direct consultation with the Environment Bodies, specifically on the issues related to RKL/RPL

All reports related to the environmental management and monitoring are best to be submitted in accordance with the current regulations and to be communicated with relevant parties.

Plantation and Forestry Agency, Kuala Pembuang, Seruyan (Head of Section of Plantation Business)

- Compliance of legal matters of palm plantation and palm oil mill of PT BAP for an area of + 20,000 Ha, and of PT SIP.

CD/CSR programs initiated by the company are best to be suited with the basic needs of the surrounding community.


ASSESSMENT REPORT


- No conflicts on lands and among the workers. - Committed to complying with the regulations and

implementing the plantation business, despite the constraints coming from local authorities regarding the unsettled determination of land status (RTRWP).

- A 3-monthly report submitted regarding the activities of the plantation business.

- During the Assessment on Plantation Business (PUP) conducted

by Plantation Agency, BAP was not yet able to demonstrate the following subject matters: - No partnership format or plasma estate has been

established.

- There has been no evidence available for the community to indicate the presence of health facility, sports facility, community arts & culture facility (local wisdom of Dayak people).

The estate was established before 2007 (IUP was issued before 2007), therefore it is free from the obligation to develop the smallholder for the surrounding community, as specified in Permentan year 2007. The management is ready to build a partnership with community. The company has requested for land to the community for establishing smallholder. The company has provided health facility and its supporting infrastructure for the people of Rungau Raya Village. Company‟s concerns shown for the people living in disadvantaged villages in the forms of training, education and empowerment, which resulted in a good relationship between the community and the company. The company has provided free schools (elementary levels) for the employees and the people living nearby. Harvesters are highly in demand; unfortunately the people living nearby are not interested in working on Harvesters are highly in demand; unfortunately the


ASSESSMENT REPORT


- The lack of local workforce employment.

people living nearby are not interested in working on such field.

National Land Agency, Kuala Pembuang, Seruyan (PIC staff the Head of BPN)

- No issues arising about land and social matters in PT Bina Sawit Abadi Pratama (BAP), which includes Sumber Indah Perkasa (SIP) POM.

- It is confirmed that there was neither customary nor its supporting evidence found in Seruyan District.

- Complete and comprehensive legal matters are available concerning the status of land (HGU).

Labor Agency (Head of Labor Monitoring Section) - The complete paperwork for the working equipment license,

such as annual to biennial license renewal and regular maintenance check for boiler, for generator, for conveying machine or forklift.

- The implementation of Occupational Health and Safety (OHS) and Personal Protecting Equipment (PPE).

- The implementation of minimum wage (UMK) of Seruyan District.

- No minors were recruited. - No conflict among workers and social conflict with the

surrounding community.

Non-Governmental Organization “Orang-utan Foundation International (OFI)” (OFI staff) Sinarmas has made a number of collaborative conservation activities, such as training. This collaboration was initiated by the company as a form of support given to the habitat conservations, especially that of orang-utan. There was neither environmental issue nor impact arising against the


ASSESSMENT REPORT


plantation activities of PT Binasawit Abadi Pratama (BAP), nor were there any conflicts happened between the local people and the orangutans.

The “Save Our Borneo” NGO (Non-Government Organization). There is issues arising concerning Sinarmas Group with an assumption that the same conducts of management and organizational are applied (SMART). Several important issues in Seruyan District are listed below: - There was reportedly a land conflict happened between PT

Agromandiri Perdana and the surrounding community, which resulted in a strike.

- Land clearing for oil palm that was done on forest land has not been equipped with the license for forest area waiver.

- The disposal of mill effluent to nearby the main river needs careful attention.

Regarding the issue on the conflict of land between PT Agromandiri Perdana with the surrounding community, over which a strike also took place; because the land clearing process for oil palm done on forestland has not gained a waiver license for forest area, the scope of assessment was only covering PT SIP-BAP. In addition, the company did not clear the land for oil palm on the forestland that has not been licensed for forest area waiver. The company does not dispose of the effluent into the main water, but uses it for land application.

- For any conflict arising between the company and the surrounding community, it would be best that the settlement be done through prior consent which shall be accepted by both parties without any coercion (free, prior, and informed consent).

- Land clearing for oil palm which is done on forest land must comply with the applicable regulations (area waiver).

- The disposal of effluent shall be done in accordance with the applicable regulations set by license issuer (relevant institution).


ASSESSMENT REPORT

SPO – 4006a. 5 63 Prepared by Mutuagung Lestari for Sungai Rungau POM, Sumber Indah Perkasa and Binasawit Abadipratama

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:

Smart Plantation Mutuagung Lestari

Head of Environmental Department Lead Auditor Witnessed


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 Environmental Agency , Seruyan District

Jl. A Yani, Kuala Pembuang, 74212

Phone. 0538-2707456, Phone: 0811520611 (Primermen) Email: [email protected]

Mail and Focus discussion group

December 18, 2012

2 Forestry and Plantation Agency, Seruyan District

Jl. Rimba Raya No. 55, Kuala Pembuang 74212

Phone. 0538- 21011, Phone: 081352722049 (Maryoso) Email: [email protected]


December 18, 2012

3 National Land Agency, Seruyan District

Kuala Pembuang, Kab Seruyan

Phone: 081348087670 (Mr. Bambang) Phone 081349047225 (Mr. Poly)


December 18, 2012

4 Labor Agency, Seruyan District Kuala Pembuang, Kab Seruyan

Phone . 081251562456 (Mrs Jariyah)


December 18, 2012

5

Orangutan Foundation International (OFI), Pangkalan Bun, Kalimantan Tengah

Pangkalan Bun, Kalimantan Tengah

Phone. 081349749208 (Mr. Fajar) Email: [email protected]

By phone December 18, 2012

6 Save Our Borneo Palangkaraya, Kalimantan Tengah

Phone: 081352752775 (Mr. Noerdin) Email: [email protected], [email protected]

By phone December 19, 2012

7 Sebabi Village (Head of Village, informal leader & villagers )

Sebabi Village Interview December 19, 2012

8 Rungau Raya Village (Head of village & villagers)

Rungau Raya Village

Interview December 19, 2012





ASSESSMENT REPORT


Appendix 2. Assessment Program

DATE 17 - 21 December 2012

ACTUAL PROGRAM PROCESSES / CLAUSES TO BE AUDITED AUDITOR

Monday, 17/December/2012 06.00 - 08.30 09.00 – 13.00 14.00 – 14.30 14.30 – 17.30

Jakarta – Pangkalan Bun Pangkalan Bun – PT.SIP and PT BAP Opening Meeting at PT SIP Document Observation:

Commitment to transparency (1.1;1.2)

Compliance with applicable laws and regulations (2.1;2.2;2.3)

Commitment to long-term economic and financial viability (3.1)

OR / MM / NK / ARF

Tuesday, 18/December/2012

06.30 - 14.00

08.00 – 12.00

14.00 – 15.00

15.00 – 17.00

Public Consultation:

Seruyan District (Labour Agency, Environmental Agency, National Land Agency, NGO)

Villages

Public Consultation clarification Document observation:

Use of appropriate best practices by growers and millers (4.1; 4.2; 4.3; 4.4; 8.1; 8.2)

Responsible consideration of employees and of individuals and communities affected by growers and mills (6.1; 6.2; 6.3; 6.4; 6.5)

OR / ARF

MM / NK

OR / MM / NK / ARF

OR / MM / NK / ARF

Wednesday, 19/December/2012

08.00 - 12.00

14.00 – 17.00

16.00 – 17.00

Field Observation: a. Sungai Rungau P.O.M

Documentation, workers interview (payment, training, facilities, racial harassment), safe working practices, safety and health equipments, fuel, water usage, process station, waste water treatment plant, workshop, hazardous waste storage and handling,

b. Sungai Rungau Estate

Legal boundaries, housing complex and facilities (clean water, electric, worship buildings, health clinic, school, landfill and emergency response), harvesting activity, spraying activity, conservation area, IPM implementation, chemical storage (mixing and handling mechanism), workshop and interviews (payments, sexual and racial harassment, child labour, religious, complaints procedures)

Document Observation:

Environmental responsibility and conservation of natural resources and biodiversity (5.1; 5.2; 5.3; 5.4; 5.5; 5.6)

Responsible consideration of employees and of individuals and communities affected by growers and mills (6.1; 6.2; 6.3; 6.4; 6.5; 6.6; 6.7; 6.8; 6.9; 6.10; 6.11)

Interview: Labour Union secretary and Gender Committee

MM

OR / ARF / NK

OR / MM / NK / ARF

NK


ASSESSMENT REPORT


Thursday, 20/December/2012

08.00 - 12.00

14.00 – 17.00

Field Observation: a. Bukit Tiga Estate

Legal boundaries, housing complex and facilities (clean water, electric, worship buildings, health clinic, school, landfill and emergency response), harvesting activity, spraying activity, IPM implementation, chemical storage (mixing and handling mechanism), workshop and interviews (payments, sexual and racial harassment, child labour, religious, complaints procedures)

b. Conservation, erosion and lowland area

Implemetation, riparian zone, water management, run off Interview: a. BAP Gender committee Field Observation Clarification Document Observation: a. Responsible development of new plantings ( Principal 7) b. Continuous improvement (Principal 8)

OR / MM / NK

ARF

NK

OR / MM / NK / ARF

Friday, 21/December/2012 08.00 - 10.00 10.00 – 12.00

14.00 – 15.30

16.00 – 19.00

Field Observation Clarification Audit finding and conclusion preparation Closing Meeting at PT Binasawit Abadi Pratama Office PT BAP – Pangkalan Bun

OR / MM / NK / ARF


ASSESSMENT REPORT


Appendix 3. Glossary

APH : Agen Pengendali Hayati (Beneficial Plants)

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

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

B3 : Bahan Beracun dan Berbahaya (Hazardous Material Waste)

BHL : Buruh Harian Lepas (Daily Worker)

BOD : Biological Oxygen Demand

BPN : Badan Pertanahan Nasional (National Land Agency)

BTGE : Bukit Tiga Estate

COD : Chemical Oxygen Demand

CPO : Crude Palm Oil

CSR : Corporate Social Responsibility

EIA : Enviromental Impact Assessment

FPIC : Free, Prior and Informed Consent

HCV : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Hak Guna Usaha. (Land Use Permit)

IK : Intruksi kerja (Work Instruction)

ISCC ; International Suistanable Carbon Certification

IUP : Izin Usaha Perkebunan (Plantation Operation Licence)

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

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

Jankos / EFB : Janjangan Kosong / Empty Fruit Bunch

KK2 : Bentuk Laporan Kecelakaan Tahap 1 (work Accident report)

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

KER : Kernel Extraction Rate

LA : Land Application

LSC : Land and Soil Capabilty

LC : Land Clearing

MSDS : Material Safety Data Sheet

OER : Oil Extraction Rate

P2K3 :

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

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

PK : Palm Kernel

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

POME : Palm Oil Mill Effluent

PT BAP : PT Binasawit Abadipratama

PT SIP : PT Sumber Indah Perkasa

RKL/RPL : Rencana Kelola Lingkungan/ Rencana Pemantauan Lingkungan.


ASSESSMENT REPORT


(Environmental Management Plan/ Environment Monitoring Plan)

RSPO : Roundtable on Sustainable Palm Oil

SEL : Studi Evaluasi Lingkungan (Environment Evaluation Study document)

SIA : Social Impact Assessment

SIO : Surat Ijin Operator (Operator License)

SKU : Syarat Karyawan Umum (Monthly Worker)

SMARTRI : SMART Research Institute

SOP : Standard Operating Procedure

SRGE : Sungai Rungau Estate

SSRE : Sungai Seruyan Estate

ST-1 : Stage 1

ST-2 : Stage 2

S1 : Surveillance 1

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

TRWE : Terawan Estate

TNGE : Tangar Estate

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