· PT. MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 Page 3 Prepared by Mutuagung Lestari...

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management/Owner : MINAMAS Plantation – SIME DARBY Group

Plantation Name : Sungai Pinang POM – PT BINA SAINS

CEMERLANG

Location :

Sungai Pinang, Anyar, Semangus Lama,

Semangus Baru dan Muara Lengas/Muara

Lakitan/Musi Rawas/Sumatera Selatan

Certificate Code : MUTU-RSPO/020

Date of certificate issue : 11 – September – 2012

Date of expiry of certificate : 10 – September – 2017

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

by

ST-1 07/03/2010 – 12/03/2010 Deni A. Novendi; Aryo Gustomo

Taufik Margani

Tony Arifiarcahman

ST-2 22/11/2010 – 27/11/2010 Aryo Gustomo; Pudji Mulyono; Muardi Marwas; M. Eko Santoso

Taufik Margani

Tony Arifiarcahman

S-1 15/07/2013 – 19/07/2013 Taufik Margani (Lead Auditor

Witnesser); Y Wisnu Rahmanto

(Lead Auditor Witnessed); Marsudi

Eko Santoso (Auditor); Ardiansyah

(Auditor); Sofyan Hadi Lubis

(Observer)

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

Assessment Submitted

to RSPO on: Approved

by RSPO on: Approved

by MUTUAGUNG LESTARI on:

ST-1/ST-2/S-

1/S-2/S-3/S-

4/RA

Date – Month - Year Date – Month - Year 19 September 2013

http://www.mutucertification.com/


ASSESSMENT REPORT

SPO – 4006a.5 ii Prepared by Mutuagung Lestari for SUNGAI PINANG POM – PT BINA SAINS CEMERLANG

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT BINA SAINS CEMERLANG Figure 2. Operational Map of PT BINA SAINS CEMERLANG

1 2

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Plantations, Mill and Area Statement 3

1.5 Description of Supply Base 4

1.6 Dates of Plantings and Cycles 5

1.7 Tonnage Certified 5

1.8 Other Certifications 6

1.9 Time-Bound Plan for Other Management Units 6

2.0 ASSESSMENT PROCESS

2.1 Certification Body 8

2.2 Assessment Team 8

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 9

2.4 Stakeholder Consultation and List of Stakeholders Contacted 11

2.5 Date of Next Surveillance Visit 12

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

13 30

3.3 Conformity Checklist of Certificate and Logo Use 35

3.4 Summary of RSPO Partial Certification 36

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

37

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 57

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 60

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 61

2. Assessment Program 62

3. Glossary 64

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 2 Prepared by Mutuagung Lestari for SUNGAI PINANG POM – PT BINA SAINS CEMERLANG

Figure 1. Location Map of PT BINA SAINS CEMERLANG

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 2 Prepared by Mutuagung Lestari for SUNGAI PINANG POM – PT BINA SAINS CEMERLANG

Figure 2. Operational Map of PT BINA SAINS CEMERLANG


ASSESSMENT REPORT

SPO – 4006a.5 Page 3

Prepared by Mutuagung Lestari for SUNGAI PINANG POM – PT BINA SAINS CEMERLANG

1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

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

INA-NIWG, May 2008 and RSPO Supply Chain Certification Standard November

2011.

1.2 Organization Information

1.2.1 Company name SIME DARBY Plantation Sdn Bhd – PT Bina Sains Cemerlang

1.2.2 Contact person Mohamad Pirabaharan

1.2.3 Company address and site address Head Office: The Plaza Office Tower, 36th Floor, Jl. M. H. Thamrin Kav. 28-30, Jakarta 10350

Site Location: Desa Sungai Pinang, Anyar, Semangus Lama, Semangus Baru dan Muara Lengas; Kecamatan Muara Lakitan; Kabupaten Musi Rawas; Provinsi Sumatera Selatan

1.2.4 Telephone +62-21-29926000

1.2.5 Fax +62-21-29922686

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Swasta

1.2.9 Management Representative who completed the application for certification

Mohamad Pirabaharan (Head of PSQM Plantation Minamas Indonesia)

1.2.10 Registered as RSPO member 1 – 0008 – 04 – 000 – 00 08 September 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm Oil Mill and supply base

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate

PT Bina Sains Cemerlang – SIME DARBY Plantation Sdn Bhd

1.3.4 Number of management unit 1 unit POM (Sungai Pinang Factory) and 2 supplied estates (Bukit Pinang Estate and Sungai Pinang Estate)

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Sungai Pinang Factory Desa Sungai Pinang Kec. Muara Lakitan, S 02º 59’ 08,6’’ E 103º 24’ 21,7’’

http://www.simedarby.com/


ASSESSMENT REPORT



Kab. Musi Rawas – Sumatera Selatan

1.4.2 Location of Supply Base

Name of Supply Base Location

GPS

Latitude Longitude

Sungai Pinang Estate Sungai Pinang, Anyar, Semangus Lama, Semangus Baru dan Muara Lengas, Kecamatan Muara Lakitan, kab. Musi Rawas, Provinsi Sumatera Selatan

S 02º 59’ 08,6’’ E 103º 24’ 21,7’’

Bukit Pinang Estate Sungai Pinang, Anyar, Semangus Lama, Semangus Baru dan Muara Lengas, Kecamatan Muara Lakitan, kab. Musi Rawas, Provinsi Sumatera Selatan

S 02º 59’ 08,6’’ E 103º 24’ 21,7’’

1.4.3 Tenure

Private -

State 6,513.00 Ha

Community -

1.4.7 Area Statement

Total area 6,513.00 Ha

Mature area 5,722.85 Ha

Immature area 428.11 Ha

Mill 14.78 Ha

Emplashment 161.38 Ha

Infrastructure 87.67 Ha

Nursery 10.00 Ha

Occupation 88.21 Ha

Others area - Ha

HCV 877.9 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 Pinang POM

30 103,167 21,553 20.89 4,315 4.18 - -

* Sumber data produksi PKS Sungai Pinang Juli 2012 - Juni 2013

1.5.2 Description of Estate(s)

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha)

FFB (tonnes/ye

ar)

Yield (tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

Sungai Pinang Estate 3,515.15 3,301.35 57,243 19.00 55,797 97.5

Bukit Pinang Estate 3,306.20 3,163.66 48,405 15.30 47,370 97.9


ASSESSMENT REPORT



TOTAL 6,821.35 6,465.01 105,648 103,167 97.7

* Sumber data produksi Estate Juli 2012-Juni 2013. Supply buah ke PT Pinago dari SPE 1,446 Ton dan BPE 1,035 Ton.

1.5.3 Smallholder(s) and other source

Name of

source(s) Member(s) Location

Total Area (Ha)

FFB (tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

*Source Production Data on 12 months before assessment

1.5.4 Product categories FFB/CPO/PK/PKO

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year

Hectarage

Sungai Pinang Estate (Ha)

Bukit Pinang Estate (Ha)

Total (Ha)

1991 814.29 814.29

1992 737.74 133.32 871.06

1993 88.50 1,095.39 1,183.89

1994 438.78 - 438.78

1995 51.51 - 51.51

1996 146.45 618.79 765.24

1997 102.43 221.84 324.27

1998 380.90 678.55 1,059.45

2000 - 275.689 275.689

2005 194.73 - 194.73

2009 58.00 - 58.00

2010 81.98 - 81.98

2012 206.04 140.09 346.13

TOTAL 3,301.35 3,163.66 6,465.01

1.6.2 New Planting area after November 2007 - Ha

1.6.3 Planting Cycle 1st/2nd Cycle Years

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


ASSESSMENT REPORT



Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Sungai Pinang Estate 3,515.15 3,301.35 57,243 19.00

Bukit Pinang Estate 3,306.20 3,163.66 48,405 15.30

TOTAL 6,821.35 6,465.01 105,648

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 Pinang POM

30 105,648 22,070 20.89 4,416 4.18 - -

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 -

1.9 Time Bound Plan for Other Management Units

Management Unit

Address Hectarage

(Ha) *) Time Bound

Plan Status

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

7,734.60 2009 Certified

PT. Laguna Mandiri Kotabaru District – South Kalimantan Province

15,300 2011 Certified

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

11,134.00 2010

Certified

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

PT. Bina Sains Cemerlang Musi Rawas District – South Sumatera 6,513.00 2010 Certified

PT. Bhumireksa Nusa Sejati Indra Giri Hilir District – Riau Province 25,662.00 2010 Certified

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

14,779.92 2010

Certified

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

Certified

PT. Ladangrumpun Suburabadi

Tanah Bumbu District – South Kalimantan Province

6,077.00 2010 Certified

PT. Sajang Heulang Tanah Bumbu District – South Kalimantan Province

7,794.00 2010

Certified

PT. Bersama Sejahtera Sakti Kotabaru District – South Kalimantan Province

13,925.00 2010 Certified

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

16,601.66 2010

Certified

PT. Budidaya Agro Lestari Ketapang District – West Kalimantan 1,002.00 2011 Audited


ASSESSMENT REPORT



Province

PT. Guthrie Pecconina Indonesia

Musi Banyuasin District – South Sumatera Province

10,139.91 2011

Certified

PT. Langgeng Muaramakmur Kotabaru District – South Kalimantan Province

16,361.77 2011

Certified

PT. Mitra Austral Sejahtera Sanggau District – West Kalimantan Province

8,741.29 2011 Audited

PT. Paripurna Swakarsa Kotabaru District – South Kalimantan Province

14,892.00 2011

Certified

PT. Perkasa Subur Sakti (Blang Simpo POM)

Aceh Timur District – Nanggroe Aceh Darussalam Province.

6 2011 Audited

PT. Perusahaan Sri Kuala Aceh Tamiang District - Nangroe Aceh Darussalam Province

1,128.90 2011

Audited

PT. Sandika Natapalma Ketapang District – West Kalimantan Province

8, 406.21 2011

Audited

PT. Swadaya Andika Kotabaru District – South Kalimantan Province

10,361.18 2011

Certified

PT. Tamaco Graha krida Morowali District – Central Sulawesi Province

4,145.00 2011

Certified

PT Bina Sains Cemerlang Musi Rawas District – South Sumatera 308.35 HGU/Land Title on progress


ASSESSMENT REPORT



2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

ST-2/ 1. Aryo Gustomo (Lead auditor). Bachelor of Agricultural Science majoring in Agronomy. Specialist in Oil Palm Plantation. He worked with an oil palm seed producer in Malaysia as a Plant Breeder / Agronomist, and also as a Field Assistant in an oil palm plantation company in Indonesia. Currently, he works with independent certification bodies as an auditor and has done several audits for RSPO certification - 14 pre-assessments, one trial audit of scheme smalholders and 3 main assessments as Lead Auditor. In the main assessment, he was responsible for best practices, environment and safety practices.

2. Pudji Muljono (Auditor); Bachelor of Agricultural Science, majoring in Pests and Plant Diseases; Masters in Library Science; and Doctorate in Education Technology. He has lectured in Archive Management, Social Research Methods, Social Psychology and Sociology Public in an Indonesian state university; as well as being on the Expert Panel II Social Sector Programme on Sustainable Plantation Forest Management Certification. His training includes: Assessor Training in Social Affairs for Sustainable Production of Forest Certification, Library Management at JIS Jakarta, andTraining of Certification process. He has participated in several assessments in Sustainable Plantation Forest Management Certification, PHPL and PHPT, and has also been involved in the Social Audit System Development of the Ministry of Social Affairs. In the main assessment, he focussed on the social aspects.

3. Muardi Marwas (Auditor); Bachelor of Agricultural Science, majoring in Agronomy and Horticulture sciences. He

has been involved in several RSPO audits as an observer and trainee auditor. Currently, he works with an independent certification body as an auditor responsible for best practices, work safety and workers’ welfare.

4. Marsudi Eko Santoso (Auditor Observer); Bachelor of Agriculture Science, majoring in Agro-technology science.

Currently, he works with an independent certification body as an auditor. S-1/ 1. TAUFIK MARGANI (Lead Auditor Witnesser). Bachelor of Science in Forestry, majoring in Forest Management.

Specialist in Ecology and Environmental. He has led several audits for Sustainable Forest Management in Indonesia (under LEI- Indonesian Ecolabel Institute and FSC- Forest Stewardship Council) and he is a Lead Auditor for FSC chain of custody and Forest Management. Other experience: He is IRCA Lead auditor IRCA registered for Environment Management System and Quality Management System. Since 1999 he has been working for independent certification body and has conducted Environment Management System audits in Indonesia and Malaysia. Currently he is the General Manager of Management System Certification.

2. YUDWI WISNU RAHMANTO (Lead Auditor Witnessed). Bachelor of Forestry with Silviculture background. He

worked at professional independent Certification Body as an Auditor for last 3 years and has involved in auditing activities with various certification schemes. Selected training which have been followed, such as RSPO Endorsed Lead Auditor Training Course, ISPO Auditor/Lead Auditor Course, Quality Management System (QMS) ISO 9001:2008 Auditor/Lead Auditor Course, GIS-Basic Mapping and Spatial Analysis, Timber Legality Assurance System (SVLK), Verification Organization Training C.A.F.E Practices (Starbucks) and others internal training programs. He has involved in auditing activities, such as Sustainable Forest Management by FSC FM/COC Scheme, Sustainable Palm Oil by RSPO and ISPO Scheme, Coffee And Farmer Equity (C.A.F.E Practices) Starbucks, Organic Standard (EU, NOP, JAS) for Coffee Farmers and Organic Exchange for Textile. During this audit, he assigned to verify of Legality and HCV aspect.

3. MARSUDI EKO SANTOSO (Auditor). Bachelor of Agriculture, majoring in Agro technology. Followed Auditor/Lead

auditor Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor, ISPO Lead auditor training, awareness green house gas and OHSAS technical expert. Currently he works for Independent Certification Body.He had involved activities RSPO and ISPO certification

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT



assessment as an auditor. 4. ARDIANSYAH (Auditor). Bachelor of Forest Resources Conservation, Department of Forestry, Bogor

Agricultural University. He has involved activities such as preparation of EIA document and industrial wood plantations (HTI) and training such as awareness RSPO, Lead Auditor ISPO, awareness OHSAS, land cover crop mapping and Auditor/Lead auditor Management System Certification (ISO 9001-2008), He has several times following audit activities related to sustainable palm oil certification system as an auditor.

5. SOFYAN HADI LUBIS (Observer). Master’s Program in Environmental and Natural Resource Management, Institutut Pertanian Bogor (IPB) and Bachelor of Social Economic Agriculture, Gadjah Mada University (UGM). Participated in several environmental management workshops, climate change mitigation training and adaptation for agricultural productivity in Southeast Asia, Carbon Forum Asia Update and EIA lecture. He has also been involved as a research team at the Centre for Research, Development and Climate Change Policy (Puspijak) Ministry of Forestry of Indonesia - Bogor and Research Team in cooperation program IPB - ETH Zurich Switzerland - NUS Singapore. He has followed Auditor training ISPO and Auditor/Lead auditor Management System Certification (ISO 9001-2008). Furthermore, he also worked as a staff environmental/agricultural in consulting firm and done the preparation of EIA (KA-ANDAL).

2.3 Assessment Methodology, Assessment 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 ST-2 at site : 4 days Number of working days for ST-2 at site : 16 Working days

S-1/ Number of auditors : 5 auditor Number of days for S-1 at site : 3 days Number of working days for S-1 at site : 15 Working days

2.3.2 Detail process of assessment

S-1 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PT Bina Sains Cemerlang 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 Scheme Smallholders October 2009) and Supply Chain Requirement for CPO Mill The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site. Some opportunities for improvement of the results ST-2 delivered by the auditor MAL to the management unit and the results are the subject will be verified at the next assessment phase (S-1). Improvement of 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 S-1. The assessment program please find Appendix 2

2.3.3 Locations of Assessment

ST-2 Location 1 - Village of Anyar. Observations regarding the circumstances complained by the community drainage for causing flooding when the rainy season.

Location 2 - Block J. Observation of new planting areas.

Location 3 - Block L. Observations regarding the presence of boundary poles of BSC working area near the Pinang river.

Location 4- Sub District of Muara Lakitan. Interviews head of sub district regarding land conflict settlement process and program CD / CSR for the local community.

Location 5 - The house of former head of Anyar village. Interview about land conflict resolution process that has ever happened in PT BSC area.


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SPO – 4006a.5 Page 10


Location 6 - SPE Housing. Observations regarding housing facilities and clean water facilities for employees and ways of handling complaints from employees about the facilities provided.

Location 7 - Landfill Trash SPE. Observations on the location and circumstances of Final Disposal of household waste that comes from employees of the SPE.

Location 8 - Block F8 SPE. Observation of the existence of land occupation in the PT BSC.

Location 9 - Blok C13. Observation of the presence of slopes area.

Location 10 - SPE / BPE. Observations and interviews with several workers regarding activities of spraying, fertilizing and harvesting.

Location 11 - Sungai Pinang. Observations concerning the existence and management of HCV area (HCV 1.1; HCV 4.1 and HCV 5).

Location 12 - Block D7 and E8. Observations regarding the existence and management HCV areas 1.2; and HCV 1.3

Location 13 - Block F18. Observations regarding the existence and management of HCV 6 areas.

Location 14 - Workshop and Warehouse. Observations regarding the management of hazardous waste (waste oil, used oil filter, used pesticide container, etc.) derived from workshop and estate.

Location 15 - SPE. Observations on Land Application area.

Location 16 - Central Clinic BSC. Observation of the medical checks programs for employees.

Location 17 - Sungai Pinang POM. Observations of the hazardous waste and management, FFB processing, POME methods, and the implementation of occupationally health and safety.

S-1 Estate Area:

Location 1. Poles non-HGU Block C11 Div. I Bukit Pinang: Field observation of land demarcated. Checking and verifying of boundary poles/stones existences outside the land title area. This observation to ensure that no activities was cultivated and managed outside the concession.

Location 2. Poles non-HGU Block C13 Div. I Bukit Pinang: Field observation of land demarcated and visiting an enclave land under name Daka 9.03 Ha. It was clear that area was not managed.

Location 3. Poles HGU Blok C14 Div. I Bukit Pinang: Field observation of land demarcated regarding maintaining of boundary stones/poles.

Location 4. Poles non-HGU Blok J01 Div. 3 Sungai Pinang: Field observation of land demarcated. Checking and verifying of boundary poles/stones existences outside the land title area. This observation to ensure that no activities was cultivated and managed outside the concession.

Location 5. HCV.1 Area Block C14 Div. I Bukit Pinang: Field observation of HCV management area.

Location 6. Block L.46/47 Div. 3 Sungai Pinang: Field observation against land claim on behalf Jamani.

During on location, it was clear that claim area inside the concession of PT BSC.

Location 7. Block F17 – F18. Field observation regarding replanting activity, management on slopes area and

riparian zone. Slope area on replanting is using terracing as an erosion control, meanwhile in the riparian zone will be

retained 1 tree (not replanted). In the riparian area have been covered by natural shrubs and beneficial trees.

Location 8. Block F 18 BPE. Field observation of upkeep and planting of beneficial plants (Turnera subulata).

Location 9. Block G 19 BPE. Field observation of fire/burn signboard.

Location 10. Block G21 BPE. Observation and interviews with 11 workers and 2 supervisors on spraying

procedure, use of PPE , and the provision and substitute of PPE to employees, medical check-up by a doctor and

medical/health care laboratory, additional food (milk), spraying training by assistant, first aid training by doctor,

restriction spraying in riparian areas (marked with yellow painted on trees), health care on clinics , provision of

menstruation and maternity leave, prohibition of pregnant workers and nursing women in the spraying activities,

pregnancy check-up with monthly basis, first aid kits/box availability, foreman has known the potential hazards in their

work zone, gender committee, provision of salary is above the regional minimum wage, no worker complaints was

identified, spraying area have been marked by signboard and notified that no entered within 2 days post spraying


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SPO – 4006a.5 Page 11


activity.

Location 11. Blok E17 BPE. Observation and interviews with 1 foreman and 2 workers regarding harvesting

technique, use of PPE, ripeness standard, and worker are in health condition, workers safety awareness during fruits

loading, salary was given in adequate rules, workers union, workers insurance.

Location 12. Blok G18 BPE. Observation and interview with 1 foreman and 1 worker of circle upkeep, gender

comitee, insurance facility, first aid box, minimum wage, maternity and menstruation leave, grievances procedures.

Location 13. Spraying house Div. II BPE. Observation and interview with assistant of spraying equipment

maintenance, cleaning room, used of wash water management.

Location 14. Workers housing Div. II BPE. Observation on public facilities, i.e: kidegarten, workers hall,

mosque, sport court and baby daycare/creche.

Location 15. Creche of BPE. Observation and interview with 2 nanny regarding minimum wages, insurance

card, how to managed the wastes on crèche, etc.

Location 16. Cinta Damai Housing Div. II BPE. Observation and interview with 4 persons regarding emergency

response procedure, housing facilities were provided, provision of clean water, provision of electricity, waste

management, etc.

Location 17. Generator house Divisi II BPE. Observation and interview with generator operator regarding

hazardous waste management. Use of PPE, maintenance, caution and signboard of jeopardy area.

Location 18. Workshop BPE dan SPE. Observation and interview with 1 supervisor and 3 workers regarding

hazardous waste management, provision and use of PPE, maintenance, first aid box availability, caution and

signboard of jeopardy area.

Location 19. Tangki solar BPE dan SPE. Observation and interview with assistant regarding hazardous waste

management, hazardous symbol used.

Palm Oil Mill:

Location 20. Loading Ramp. Observation and interview of fruits grading procedure, use of PPE, minimum wages is sufficient.

Location 21. Sterilizer. Observation and interview of fruits grading procedure, use of PPE, minimum wages is sufficient.

Location 22. Crane machine. Observation and interview about operator license, suitability of minimum wages.

Location 23. Workshop. Observation and interview with welder operator, facilities completeness, suitability of minimum wages, first aid boxes, fire extinguisher.

Location 24. Temporary waste disposal site (TPS limbah B3). Observation on hazardous waste management and its facilities in case of emergency.

Location 25. Engine room. Observation of PPE to the workers.

Location 26. Boiler. Observation on boiler operating and use of PPE for the workers.

Villages area:

Location 27. Vice of chief of Anyar village house. Interview on social aspects, social issues, company awareness, communication and consultation procedure.

Location 28. Sungai Pinang village. An interview with villagers regarding enclave area and others social issues.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Summary of stakeholder consultation process


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SPO – 4006a.5 Page 12


Consultation of stakeholders for PT Bina Sains Cemerlang was held by public consultation meeting with internal stakeholders by interviews and local stakeholders conducted by visits to villages and interviews with local peoples. Numbers of input from stakeholders were clarified by PT Bina Sains Cemerlang.

2.4.2 List of stakeholder contacted

Please find appendix 3

2.5 Determining Next Visiting

The next visit (S-2) will be determined one year after this S-1 (July- 2013).


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SPO – 4006a.5 Page 13


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

MUTUAGUNG LESTARI has conducted an assessment of Sungai Pinang POM – PT Bina Sains Cemerlang, Simedarby Group/Holding operation consisting of one (1) mill and two (2) oil palm estates.

During the assessment, there were two (2) Nonconformities were assigned against Minor Compliance Indicator(s) and

zero (0) nonconformance(s) against supply chain requirement for CPO mill and ten (10) opportunity(s) for improvement

were identified.

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

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

by Auditor(s) in form of documentation evidence(s) e.g. (document record/photographic/etc.). Those corrective action(s)

taken that consist of two (2) Minor non-conformity(s) had been closed out shall be verified during next assessment.

MUTUAGUNG LESTARI declared that Sungai Pinang POM – PT Bina Sains Cemerlang, Simedarby complied with the

requirements of RSPO Principles & Criteria and National Interpretation, RSPO Principles and Criteria (P&C) for

Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008 and/or Scheme Smallholders,

October 2009*) .

Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is Continued.

Ref Std.

VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

PT BSC has Communication Order Book that describe about incoming information and its response. The procedure of information order is regulated in the SOP Number 008/BSC-PI/III/2009 on 4 March 2009. Based on the verification of communication book, there is no infromation order from the stakeholders. In 2013, there are 3 incoming mails such as invitation letters from the related stakeholders. The record of information order and its response is kept in accordance with the SOP of Record Control number 11/PC-BSC/VIII/10. The storage time of information order and its response is 5 years.

Status: COMPLY

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.

PT BSC has Information List that can be given to the stakeholders (information can be accessed by public), approved by the Head of SOU, such as:

1. Legal (location permit, Plantation Business Permit, Land Use Title, etc) 2. Environmental and Social (EIA, RKL/RPL, HCV, SEIA) 3. Occupational Health & Safety

The recor of information order and its response has been stored in accordance with the SOP of Note Control number 11/PC-BSC/VIII/10. The storage time of information order and its response is 5 years. PT BSC able to show all documents


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in accordance with their allocation and storage time in the period of 2009 – 2013 (5 years).

Status: COMPLY

PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

PT BSC has a Regulation List used as the reference in its operation activity, including with its evidence of regulation implementation. There are several evidences about the effort in adjusting regulatory changes, several regulations have been implemented yet particularly in the field of Labour and Occupational Health & Safety.

The system of documentation related with the information and legal requirement to be complied by the company as well as its evaluation mechanism are available in the assessment location and those are well recorded.

Status: COMPLY

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

The legal evidence of land autorization by PT BSC is a certificate of Land Use Title Number 07/99 on 12 June 1999 for ± 6,513 Ha. Meanwhile, in the document of areal statement periode July 2013 total areal of PT BSC is 6,821.35 Ha, so, there is a gap as many as 308.35 Ha more than wide area as regulated in the Land Use Title. Due to this gap, the company has an official statement from the top management that area 308.35 Ha will be excluded from the current scope of certificate, because it’s going to be long process which needed to be approved by government. In the Map of Situation in the published certificate of Land Use Title, working area of PT BSC has been clearly demarcated by the presence of boudaries pole of Land Use Title and its management. However, the company has sufficient evidence to show that basic reference of boundary poles is based on Measurement Map (Peta Ukur) which was issued by legal authority (BPN) dated on 28 November 2009. In the land of PT BSC, there is a claim by one of the citizen and addressed to Block L.46/47 (J001) Pinang Estate River. The process has been through court phase and final decision. This dispute land is a legal land owned by the company. The evidence related with with court decision published by the Supreme Court (Mahkamah Agung) has been available. The mechanism of conflict resolution (SOP of Conflict Resolution number is 007/BSC-PK/I4/2009) owned by the company has been participatively composed by involving many parties.

Status: COMPLY

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 the study of HCV assesment document, the explanation by the company, and field survey to the related stakeholders, there was no NKT 5 and NKT 6 attributes as the traditional right in the use of palm oil land by PT Bina Sains Cemerlang.

Status: COMPLY

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.

The plan of management economy by PT BSC for palm oil plantation is described in the company’s budget. It is always renewed (period of July to June). All activities, areal statement, cost, and production are described in detail, including replanting program that will be conducted. PT BSC has a document of budget projection in 2015 - 2018 and replanting program in 2013 – 2015.

Status: COMPLY


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

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

The company has a SOP of plantation management from LC to harvesting. This SOP is described in the Manual Agronomic Practices number of Policy is 110/EST-ARM/08. The content of this document cover 16 operation aspects at the plantation area such as land clearing activity, seedling technique, replanting, plant maintenance, plant protection, harvesting, and transportation. This document is used as the reference for the operational activities at the plantation area. Based on the observation, these documents have been distributed to each estate and based on the result of field survey, the SOP of plantation management has been implemented. For example, SOP about plant maintenance, plant protection, harvesting, and transportation have been implemented and all workers have well understood this SOP. PT.BSC has a procedure of FFB receiving, processing, up to dispatch of CPO & PKO for the operational activity of Palm Oil Mill. It has been approved on 26 July 2010 by the Head of Plantation Operations (HPO). This procedure contains several points as presented below:

1. SOP Number 110/POD-FAC/07, CHAPTER I concerning Basics of Palm Oil Processing such as Fruit Receiving (1.1), boiling (sterilization) (1.2), striping (1.3), digesting (1.4), pressing (1.5), clarification (1.6), Separation of Seed and Fiber (1.7), Station of Kernel (1.8), CHAPTER II. Palm Oil and Nucleus Stockpilling (2.1), Management of Laboratory (5.9), Boiler (6.1), Engine Power Plant (6.2), Types of Generating Machine (6.3), Occupational Safety and Security (6.10), etc.

2. SOP Number130/POD-FAC/07. CHAPTER I concerning Basics of Palm Oil Processing such as General Description (I), POM Organization (II), Procedure of POM Operational Administration (III), Procedure of MKS/CPO or IKS/PKO delivery Administration (3.3).

Checking or monitoring activity to operational activities, such as:

1. Monitoring from MA (Mill advisory) is conducted every 6 months. 2. Monitoring from PA (Plantation advisory) is conducted every 6 months. 3. Summary Report ESH Assessment is conducted every month.

The operational activity at the estate and mill is completely recorded in the document of Monthly Report. The company has stored all documet of Manager Report well. Activities in this documet are: the use of workers, reaching of FFB production to the budget, CPO and palm kernel production result, result of plant maintenance activity (fertilization and spraying).

Status: COMPLY

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

The company has shown the result of soil and leaves analysis. Soil Analysis:

1. There is a document of soil analysis by PT Bina Sains Cemerlang (BSC) Plantation, Sungai Pinang and Bukit Pinang Estates. This document covers Soil Series, Slope Classes, Map Symbol, explanation from the soil series, and wide area.

2. Analysis of soil fertility is conducted every 5 years. There is a result of soil nutrient content analysis by PT BSC on 27 March 2009. It explained about the analysis of soil nutrient content, depth (solum), and soil pH.

Leaves Analysis: there is a Leaf Analysis Report of Bukit Pinang and Sungai Pinang Estate, Period of April 2013 by Minamas Research Center. It informs about the number of Block, number of LSU, wide area, year of planting, type of soil, number of plant, % on dry matter, and PPM on dry matter. Leaves analysis activity is conducted every year by taking sample of leaves at each block and visual observation of plant. The result of soil and leaves analysis is used as the base in determining the recommendation of fertilizer doze. The record of soil fertility maintenance:

1. Application of Effluent is conducted by the company in accordace with the permit of Land Application issued by the Regent of Musi Rawas Number 419/KPTS/BLHD/2011.

2. Record of fertilization in the document of fertilization monitoring 2012/2013 in accordance with the recommendation of research team.


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3. Record of FFB application at the Division II Bpe Block F018 on 6 June 2013. 4. Record of legume planting at BPE at July 2012-June 2013, such as Block F007.

Status: COMPLY

4.3 Practices minimize and control erosion and degradation of soils.

The company has conducted a Semi Detail Soil Survey for all BSC area. The available information in the form of map describe about topography, soil texture, depth, marginal land, and class of soil suitability. Based on the result of soil study, there was no marginal land and critical land. However, there was an area with certain slope at the area of PT BSC. The strategy of maintenance for planting in area with certain slope is described in the document of semi detail soil study. The recomendation concerning strategy of land management (land conservation) in area with certain slope, such as: terrace making, silt pit making, use of empty fruit bunches, hooves, legume planting, preparation of U-shaped sheath shape and treatment measures. Based on a field trip to Block F17 and F18, BPE known that planting on slopes have used terrace. There was also silt pit and legume cover crops. , The company has program and realization of road maintenance for the period of 2012/2013 and it has been realized. Based on the field survey at BPE, road was in good condition and well maintained.

Status: COMPLY

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

The protection of water flow and wet land have been conducted by PT BSC such as:

To use liquid waste for land application so liquid waste does not disposed to the water body. PT BSC has a permit to use waste on soil (SK Number 419/KPTS/BLHD/2011 on 26 July 2012).

To test liquid waste quality including BOD parameter every month. Based on the result of test in April 2013, all parameters have met required quality standards.

To test ground water quality (LA monitoring well, non LA monitoring well, community monitoring well) every month. Based on the test result in April 2013, all parameters have met required quality standards..

To test surface water quality (river water) every 6 months. Based on the result of test for March 2013, all parameters have met required quality standards.

To warn chemical material use in the riparian area for 50 meter in the left and right river. Based on the interview with the workers, they have known the forbidden on the use of chemical material in the riparian area.

Based on the field survey to Block F17 and F18, BPE riparian area has been planted with legume cover crop (naturally left) and 1 tree in the left and right of river is not replanted.

PT BSC has routinely recorded (every day) and evaluated the use of water for Palm Oil Mill. Based on the result of evaluation, the use of water in June 2013 was 1,7 M3/ ton FFB while the budget of water use is 1,4 M3/ton FFB. Based on the explanation of the Assistant of SPF Head, it might be caused by broken flow meter. The comapny has ordered a new flow meter to replace the broken one in accordance with the goods order list, the code of material is Code Material 4400003502.

Status: COMPLY

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

BSC has Integrated Pest Management program. It is generally written in the Agricultural Reference Manual Section16.3, this program containts:

a. Planting of Beneficial Plant for the Nettle Caterpillars control biologically. The name of the plant are: Turnera subulata, Cassia cobanensis, and Antigonon leptosus. Based on the Program 2012/2013, planting will be conducted in August – November and maintenance will be conducted every month.

b. Owl (Tyto alba) will be used to control rat. According to the SOP, there will be 1 nest box every 10 ha. The company has evaluated about the suitability of nest box and occupancy level to the effectivity level of rat control. Based on the result of rat monitoring, there was no population level that exceeded its measuring standard/border so owl control program was only limited to the nest box maintenance and keep occupancy level.


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The record of wide area for Integrated Pest Management, monitoring, and training, are listed as follow:

1. The record of Benificial Plant realization to June 2013 2. Monitoring in June 2013, there was no Nettle Caterpillars.attack. 3. The record of Monitoring Survey and Owl Cencus in May 2013 at Field C005 Block I36. It was installed in June

2012 and it was found in good condition, there was 1 mature owl. 4. Monitoring of rat showed that its population level has not exceeded its boundery level. 5. Recapitulation of Ganoderma Attack Cencus up to June 2013 showed that there was no Ganoderma attack. 6. Recapitulation of Termite and Oryctes Attack Cencus up to June 2013 showed that there was no attack. 7. Training of legume nursery training, planting, and maintenance on 16 May 2013. It was attended by 7 workers at

Sungai Pinang Estate. There is a record of pesticide toxicity monitoring, as listed below:

AUDIT 486 SL; active ingredients: Isopropilamina glisofat 486 g/l; volume of its use: 2.371 liter; dose: 0.746 l/Ha; toxicity: 362,59 g/Ha.

KENLON 480EC; active ingredients: triklopir butoksil etil ester 480 g/l; volume of its use: 435 l; dose: 0.136 l/Ha; toxicity: 65,7 g/Ha.

Ally 20 WDG, active ingredients: Metil Metsulfuron 20%, volume of its use: 98 Kg; dose: 0.03 Kg/Ha; toxicity: 0.006 Kg/Ha.

Status: COMPLY

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.

Agrochemical used by BSC has been registered by the related institution, such as:

TRAP 20WP; active ingredients metsulfuron methyl; Number of registration: RI 1797/11-2007/T.

DECIS 2,5EC; active ingredients deltametrin; Number of registration: RI.387/11-2007/T.

AUDIT 486 SL; active ingredients Isopropilamina glisofat; Number of registration: RI. 1863/9 – 2008/T. The record of pesticide using showed about used active ingredients, applied area, and area per hectare (dose), and target of control, such as:

AUDIT 486 SL; active ingredients: Isopropilamina glisofat 486 g/l; volume of its use: 2.371 liter; dose 0.746 l/Ha; toxicity 362,59 g/Ha for weeds control. It is usually used to control weeds chemically, its application frequency is 3x a year

KENLON 480EC; active ingredients triklopir butoksil etil ester 480 g/l; volume of its use: 435 l; dose 0.136 l/Ha; toxicity 65,7 g/Ha for weed control. It is used for selective weeding with the frequency as many as 3x a year.

There is a MSDS for each type of pesticide for the management of storage, use, and First Aid Emergency. There is a record of training for spraying workers on 28 June 2013. It was attended by 10 spraying workers. The training material was proper spraying technique, HIRAC, MSDS and the use of Personal Protective Equipment. The management of used pesticide packaging refer to the SOP of Hazardous and Toxic Waste Management 020/BSC-ESH/10 on 02 August 2010. In this procedure, all Hazardous and Toxic Waste and used pesticide packagings were stored in temporary licensed storage area and it has been implemented. Medical check up for spraying workers has been conducted on 30 October 2011, 22 August 2012, and 22 May 2013 The medical check up was conducted by company’s doctor. It covered physical checkup, blood pressure, and heart beat. The medical checkup on 23 June 2013 was conducted by Clinical Laboratory (Kimia Farma) for the complete checking of blood and Thorax. Based on the medical check up, they were healthy in normal border. Based on the interview result with


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spraying team, there was no disease caused by spraying activity. The company does not use Paraquat. There was a memo from the manager on 11 December 2009 about the stopping in the use of paraquat. Based on the memo of the Head of 22 Number 005/BSC-SOU/V/2013 on 1 May 2013, pregnant woman and breastfeeding mom cannot work in area related with chemical material (spraying and fertilizer). Based on the interview with the workers around the Daycare, pregnant woman worked to handle simple job such as gardening. This worker was moved from the spraying team to garden maintenance.

Status: COMPLY

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

The company has Guiding Committee of Occupational Safety & Health (P2K3), that consit of fire management, Occupational Health & Safety for maintenance; environmental health section,Occupational Health & Safety, Workshop; Occupational Health & Safety, Occupational Health & Safety for Transportation; Occupational Health & Safety for harvesting; Medical worker; Occupational Health & Safety for Chemist; Occupational Health & Safety for Training and Occupational Dicipline. Guiding Committee of Occupational Safety & Health by PT BSC consist of:

1. Guiding Committee of Occupational Safety & Health SPE, Expert of Occupational Health & Safety with the Number of registration is 7022/PK3/AJ/14/2011 valid to 21 March 2014,

2. Guiding Committee of Occupational Safety & Health BPE, Expert of Occupational Health & Safety with the Number of registration is 9929/PK3/AK3/2011 valid to 05 December 2014, validation is based on the Decree of the Head of Labor Agency of Musirawas Number 560/078/NAKERTRANS/IV/2013.

3. Guiding Committee of Occupational Safety & Health SPF, expert of Occupational Health & Safety in accordance with the Decree of Appointmnet from the Ministry of Labor and Transmigration of the Republic of Indonesia Number KEP.155/M/DJPPK/III/2011 on 21 March 2011 valid for 3 years,Validation according to the Decree of the Head of Labor Agency of Musirawas Number 560/29/IV/Nakertrans/2013.

Meeting by Guiding Committee of Occupational Safety & Health is conducted every month to discuss about Occupational Health & Safety at the company and report of Guiding Committee of Occupational Safety & Health activity has been submitted every three months to the Labor and Transmigration Agency. There is insurance for the workers; All workers have been registered in Labor Social Assurance program for the insurance of life insurance, health insurance, work injury and retire. For example, the payment of Labor Social Assurance BPE for 439 workers in May 2013. Number of registration is GG010872. The payment is conducted through Mandiri Bank Number of Transaction 9643101306041203094890 on 04 June 2013. The sample of Labor Social Assurance card:

Labor Social Assurance card on behalf of Edison (Security of BPE) Number 12044271570.

Labor Social Assurance card on behalf of Mardinson Saragih (Manager of BPE) Number 07006082072. The company guarantee the cost of workers medical checkup, provide medical clinic, and in cooperate with the hospital to give medical service to the workers. Routine medical checkup is conducted by the company’s doctor who has a certificate of Occupational Health training and occupational safety for the company doctor on 20-24 December 2008. The number of certificate is 20.275/DH-XVII/08 and the number of Decree of Occupational Medical Check up Doctor Appoinment Number Kep 36/PPK-PNK3/KK/II/2009 and Number of registration is 1184/DP/KLK/2009 from the Directorate General of Manpower Supervision. Medical check up is conducted every year and since 2013, the company’s doctor cooperated with medical laboratory for routine and special medical check up. For example; medical check up for SPF workers was conducted on 19 October 2011, 15 September 2012, and 11 June 2013. The medical check up was conducted by company’s doctor covered physical check up, blood pressure, and heart beat. The check up was conducted on 23 June 2013 by Clinical Laboratory (Kimia Farma) for the complete checking of blood and Thorax. Based on the medical check up, they were healthy in normal border. There is also a document of risk analysis in the form of HIRAC document. Each estate unit has each HIRAC for each


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activity, such as: spraying activity, fertilization, warehouse, outpatient, racking, generators house, including the harvesting of fruit, loading, and transport, workshop, replanting, and general office. PMO has composed this HIRAC document for each activity, such as: Boiling Station; dings Station; Boiler Station, Loading Ramp, Threser Stew, Nut & Kernel, Despatch oil & Kernel, water treatment, machine rooms, laboratories, warehouses, clarification, offices, workshops and others Review to HIRAC document of the estate on 17 June 2013. Review to HIRAC document of the estate on 18 January 2013 Occupational Health & Safety training for the employee, such as:

1. Safety Briefing of HIRAC for the harvester on 06 July 2013, attended by 18 harvesting workers. 2. Training of First Aid Emergency on 10 July 2013 by medical team at the Central Polyclinic, attended by 30 SPE

and BPE Estate workers (there was its minute of meeting, list of attendance, and documentation of activity). 3. Emergency Response Training (Fire and First Aid Emergency) on 28 June 2013 by medical team at the Central

Polyclinic, attended by 37 SPF Estate workers (there was its minute of meeting, list of attendance, and documentation of activity).

4. Training of legume nursery, planting, and maintenance on 16 May 2013, attended by 7 workers of Sungai Pinang Estate.

5. Training of Integrated Pest Control (Cencus of Nest Box; Training and Planting of Beneficial Plant) on 19 November 2012 attended by 7 workers at Sungai Pinang Estate.

6. LOTTO traiing on 28 June 2013 at SPF by the Manager of ESH and attended by 11 workers. 7. Socialization of Occupational Health & Safety Management System on 17 April 2013 and attended by 9 workers.

SOP of Emergency Response:

SOP of Preparedness and Response as well as Recovery (013/BSC-ESH/10) on 2 August 2010.

SOP of Prevention and Control of Fire including fire prevention (Doc. Number 014/BSC-ESH/10) on 2 August 2010; Countermeasures fire with extinguishers and hydrant; Countermeasures fires (preparation, extinguishing the fire by a squad of Fire Department, Fire Prevention and conditions expansion fire).

SOP of Working Accident Handling, the Number of document is 02/BSC KKS/IV/09 on 2 April 2009.

SOP of Earthquake (013/BSC-ESH/10) on 2 August 2010 There is also a structure of emergency response at each estate and POM. There are several signs of evacuation for emergency situation such as arrows at each building that directed to the gathering place / evacuation point.. The fullfillment of Occupational Health & Safety and First Aid Emergency has been provided by the organization according to the result of field observation and study of document, such as:

1. Personnal protective equipment for spraying workers and mill’s worker ( electric operator, crane operator; WTP operator; and threshing operator.

2. Fire extinguisher is provided at each building that potentially has a potency of fire, such as: workshop of PMO; warehouse of material, warehouse of Hazardous and Toxic Waste, and office of POM.

3. Hydrant at the POM as many as 4 units at processing room. 4. First Aid Emergency box has also been availbale at each room such as: workshop, warehouse of material, POM

office, Mess SPE, Main office of BPE. The organization has monitored working accident, record it, and well stored. Monitoring activity has been routinely conducted every mont. If there is an accident, it will be recorded in the form of Working Accident Monitoring. The recapitulazion of working accident monitoring was reported to the Guiding Committee of Occupational Safety & Health, such as at SPE. In April-June 2013, there area 2 accidents. The evaluation of monitoring data is conducted every month. Once a year, monitoring is conducted by ESH Manager, such as analysis in July 2012-June 2013, and report of analysis in June 2013 was presented on 10 June 2013.

Status: COMPLY

4.8


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

There is a Training Program by PT Bina Sains Cemerlang in July 2012-June 2013 for 7 types of training (Safety Briefing; training of Guiding Committee of Occupational Safety & Health / First Aid Emergency; LOTTO; HCV; Emergency Response; and Gender). There are several training records, such as:

1. Socialization of Gender Committee on 27 June 2013 at the Main Office of BPE, attended by 14 workers (there is a list of attendance and picture of activity).

2. HCV training on 27 June 2013 at the meeting room of BPE attended by 6 workers (there is a list of attendance). 3. Supply Chain Training on 26 June 2013 attended by 12 workers (there is a list of attendance).

The company has chosen contractor by determining several criterias. The criteria of contractor is described in the SOP of Biding Number of Policy is 312/PUR. It regulates that contractor must have adequate technical and financial capasity as well as qualification according to the type of job. There is a list of contractor assesment for contractor election to collect Hazardous and Toxic Waste.

Status: COMPLY

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

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

PT BSC has EIA document for Palm Oil Estate and Palm Oil Mill. Its reserve wide area is 24.000 Ha and the capasity of installed production is 30 ton FFB/hour (it can be increased into 45 ton FFB/hour). This document has been approved by Agribusiness Agency, Agricultural Department Number 005/ANDAL/RKL-RPL/BA/X/94 on 18 October 1994. PT BSC has a document of Revision of Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL) for the Palm Estate and Palm Oil Mill in Muara Lakitan Sub District, Musi Rawas Regency, Wide area of reserves 24.000 Ha, Wide area of estate is 6.513 Ha, and the capasity of mill is 30-60 ton FFB/hour. This document has been aproved by the Regent of Musi Rawas number 128B/KPTS/IV/2007 on 30 October 2007. Based on the interview result and field survey, the capasity of mill during the Surveillance 1 was 30 Ton FFB/hour. PT BSC has conducted environmental management and monitoring and it has been routinely reported (every 6 months) to the Environmental Agency of Musi Rawas Regency. There were several evidence of report submission to the Environmental Agency of Musi Rawas Regency, such as:

Receipt of Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL) PT BSC First Semester I of 2012 on 23 October 2012.

Receipt of Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL) PT BSC Second Semester of 2012 on 15 March 2013.

Status: COMPLY

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.

HCV identification activity has been conducted by independent consultant recognized by RSPO and there was also final report in July 2011. In accordance with the guideline of NKT Indonesia 2008, all HCV identification documents composing process must involve many parties in consultation and socialization. Based on the HCV Identification Report in July 2011 by Pollito, for 303 Ha area at Block J (SPE) and Block C (BPE), several rare and protected species (flora and fauna) were idenfied. These identified species were:

No Remark Number of species

Number of Identified Species

IUCN CITES PP Number


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7

1 Bird 10 12 - 4 10

2 Mammals 17 30 5 VU, 2 EN 10 14

3 Reptile 4 6 - 3 4

4 Flora 24 28 - - -

There are several protection actions for the management: determination of protected area; socialization to the related parties; determination of boundary area; Boundary area piling; delineation endorsement of protected areas by the relevant agencies; Installation of information boards about protected areas; to develop environmental management and monitoring long-term plans of protected areas, and so on.. Socialization of HCV on 9 July 2012, place: Sungai Hitam (Boundary Area of SPE Estate) in the form of Anak Dalam Group Ethnic settlement area. List of attendance: 7 people, priests, head of group ethnic and 5 citizens of SAD.

Status: COMPLY

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

PT BSC has document of waste source identification and management plan that describe about the type of activity, name of waste, classification, frequency, unit, number/month, purpose, and management plan, for example:

Produced Hazardous and Toxic Waste was managed by storing it at the licensed Temporary Disposal Site to be delivered to the licensed collector.

Domestic waste was managed by disposing it to the Final Disposal Site (TPA)

PT BSC has documented and implemented waste management according to the identification result, for example:

Documentation of shell and fiber waste use from the mill as boiler fuel (please see criteria 5.4). Based on the result of field survey at the POM, shell and fiber was used as boiler fuel.

Documentation of liquid waste from the mill for land application (please see indicator Minor 4.2.2). Based pm the result of field survey to Block C13, SPE, liquid waste produced by POM was reused and applied in the land.

Documentation of Hazardous and Toxic Waste delivery and log book of Hazardous and Toxic Waste at Temporary Disposal Site. Based on the field survey to the Temporary Disposal Site of Hazardous and Toxic Waste, it was known that Hazardous and Toxic Waste produced by the company such as used oil, contaminated cloth, used chemical packaging, used storage battery, have been stored at the Temporary Disposal Site. Temporary Disposal Site for Hazardous and Toxic Waste and waste packaging have been completed with symbols of Hazardous and Toxic Waste in accordance with the valid regulation.

PT BSC has Hazardous and Toxic Waste management plan including agro chemical waste disposal which described in the procedure of Hazardous and Toxic Waste management (Number: 020/BSC-ESH/10) and identification of waste source. Hazardous and Toxic Waste produced from the management unit was managed by storing it at the licensed Temporary Disposal Site of Hazardous and Toxic Waste. Temporary Disposal Site of Hazardous and Toxic Waste owned by has license according to the Decree of Environmental Minister Number 284 year 2009 on 29 June 2009. This permit valid for 5 years since its establishment. Hazardous and Toxic Waste was then delivered to the final licensed (PT Nirmala Tipar Sesama). There is a Decree of Environmental State Minister Number 128 year 2010 concerning Hazardous and Toxic Waste Collecting Permit by PT Nirmala Tipar Sesama – Plant Cikarang on 17 June 2010. This permit is valid for 5 years since its establisment. However, PT BSC only report balance of Hazardous and Toxic Waste in the form of used oil to the related institution every 3 months. Minor Nonconformities 2013.03. Waste produced by PT BSC has been monitored/analyzed, such as:

Liquid waste quality analysis by Environmental Laboratory, Environmental Agency, South Sumatera Province. The result of waste analysis in April 2013 (certificate of test result Number 660/608/SHU-LAB/V/2013) showed that pH 7,47; BOD 43,3 mg/l; and COD 187 mg/l; etc.

The monitoring to solid waste such as empty fruit bunch to be applied at the land (please see criteria 4.2)

The monitoring to the use of liquid for application in the land (please see criteria 4.2)


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The monitoring to Hazardous and Toxic Waste, such as there is 1,010 liter used oil at the Temporary Disposal Site. The latest delivery was conducted on 15 July 2013 as many as 100 liter come from the usef generator.

Minor Status: Not Comply Open

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

PT BSC has monitored the used of renewable energy fiber and shell as fuel for boiler to produce electricity, such as:

April 2013 : The use of shell: 363.775 kg and the use of fiber: 826.761 kg

May 2013 : The use of shell: 406.380 kg and the use of fiber: 923.592 kg

June 2013 The use of shell: 351.828 kg and the use of fiber: 799.609 kg

PT BSC also has calculated the efficiency of renewable energy per ton of CPO, such as:

April 2013 : 62,65 Kwh/Ton CPO

May 2013 : 77,31 Kwh/Ton CPO

June 2013 : 56,71 Kwh/Ton CPO

PT BSC also has monitored to the use of fuel (diesel), for example in June 2013, the use of diesel for generator is 221.500 liter.

Status: COMPLY

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.

PT BSC has a policy not to burn the area for new area opening and replanting. It is written in the SOP document number 110/EST-ARM/08 Part 4. Based on the field survey, there was no burning activity, both domestic/house hold waste or other wastes. The company has conducted several improvement actions such as socialization about the understanding of zero burning to all workers. For example: workers of SPI and BPE traction (on 18 July 2013); workers at Pondok II (17 July 2013); workers of fertilzation and harvesting at Div. 1 SPE (30 April 2013). The evidences of socialization are: list of attendance (71 workers), picture of safety briefing activity, picture of socialization not to burn waste and smoke around the traction area, and socialization not to burn waste at the housing area of Div. 2. There is a minutes of meeting about the checking of replanting contractor’s job that describe about the record of replanting activity such as cut down, stack of wood, and log chopping, hump chopping, and plant hole closing, as well as new planting hole making. For example, Minutes of Meeting of Work Interrogation by CV. Dewa Sawit Mandiri (N0. 024/Replanting/BSC-BPE/X/2012 on 10 June 2013 located at the Division II BPE, with the result of job: cut down, stack of wood, log chopping (16.555 palms) hump chopping (456 palm), and plant hole closing, as well as new planting hole making (12,849 palnting holes). Facilities and infrastructure provided by the organization to prevent land fire are: one tractor which completed with water tank, hoze, dress vests for firefighters, and a team of firefighters. There are also reports results of Forest and Land Fires Facilities and Infrastructure Inventory Control of PT BSC from Forestry Agency of Musi Rawas Regency in August 2010 by duty virtue of the Head of Forestry Agency of Musirawas Regency Number 090/319/V/Kehut/2010. Based on the assessment, it can be concluded that the prevention and signing of.forest fire conducted by PT BSC has followed Article 23 paragraph 1 Government Regulation number 45 year 2004 concerning Forest Protection and Article 12 of the Regulation of Forestry Minister/PerMenHut Number P.12/Menhut-II/2009 concerning Forest Fire Control. There is a Map of Ignition – BPE, for example at Block E18. Firefighter team of BPE consist of Field Coordinator, Head of Fire Control Department, and 11 members, head of monitoring team and patrol with 3 members. Signboard of fire danger alert, for example at Block A17/A17, Pondok Divisi II BPE. Fire extinguisher at BPE as many as 34 were in good condition, for example 2 fire extinguishers at the traction of BPE. There were 4 fire towers such as at Block


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J18.

Status: COMPLY

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

PT BSC has identified sources of pollution and emmision at the POM, such as:

PT BSC also has conducted regular emission quality monitoring. It can be seen from the Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL) report for the Second Semester of 2012, such as air quality and noise monitoring. Based on the result of test, most of the tested parameter are still below its determined quality standard, except noise parameter. However, PT BSC had controlled parameters that exceeded quality standards such as company provided personnal protective equipment to the workers in the form of ear plug that can muffle noise level and protect workers from noise. PT BSC also conduct other efforts to control pollution and emmission, such as: (1) “U” wall concrete making to avoid dust level increasing in the working area or its surrounding; (2) installation of reducer at the exhaust safety valve Broiler, exhaust safety valve Back Pressure Vessel Turbine, Blowdown Chamber Exhaust Boiling in order to decrease exposed noise intensity in the working area that can cause hearing problem and working pleasure problem..

However, based on the field survey at the diesel refueling station in Bukit Pinang Estate and Sungai Pinang Estate, there was several fuel spill (diesel) that penetrate into the soil. Minor 2013.05

PT BSC has the mechanism and SOP of POME management by using sedimentation cycle method. Liquid waste produced by POM was managed at the Waste Water Treatment Plant before being used at the soil, Waste Water Treatment Plant consist of: Cooling Pond number 1, Cooling Pond number 2, De-oiling Pond number 3, Pond 1, Pond 2, Pond 3, Pond 4, Pond 5, Pond 6, control container, and solid container. Liquid waste monitoring activity was technically conducted, such as: activity before processing and after processing. Monitoring was also conducted by analysing liquid waste quality at the PMO to be applied to the palm tree. Its monitoring frequency is 1 (one) time every month (sample of waste water was taken from the last outlet). The resulr of monitoring was reported to the related institution gradually and according to the valid regulations.

Station Type of Pollution Parameter, Type of Material, Chemical of Pollution

Potency of Pollution Risk

Boiler Air pollution that may come from the exhaust of boiler kitchen.

Particulate, Opacity, SO2, NO2 and Pb

Lung cancer, acute tract infections, Corrosive, chlorosis, necrosis and black spots on the leaves of plant,

Machine chamber

Air pollution that may come from the exhaust of fuel incineration in the generator.

Particulate, Opacity, SO2, NO2 and Pb

Lung cancer, acute tract infections, neurological disorders, heart disorders

Boiling Noise polluition caused by exhaust steam of FFB boiling Srelizer .

Hearing problem

Machine chamber

Noise polluition caused by exhaust steam of BPV Turbin.

Hearing problem

Minor Status: Not Comply Open

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


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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.

PT BSC has EIA document (1994). It contained environmental and social impact study, such as: air quality, working and business opportunity. During this EIA processing, the company has involved local community to see and analyze positive and negative impact which possibly arise during the development of palm plantation. PT BSC has also studied social impact of palm estate management at HCVA activity in July 2011 by CV POLLITO. This report contained community involvement to ask for suggestions related with environmental aspect and community social. The community involved in this activity (can be seen in the list of attendance of public hearing activity) are: Forestry Agency, Environmental Agency, Plantation Agency, Social Agency, Local NGO, community figures, traditional leaders, youth group, etc. The stakeholders were involved through discussion, interview, field cheacking, and contact. PT BSC has environmental management and monitoring document that covers management plan of social impact and it involves the participation of community. One of the participation of community can be seen from its CD/CSR programs that has been implemented such as education program, praying house reconstruction, road construction, capital provision, etc. The company also provide opportunity for the local community and non local community to work around the plantation area. PT BSC has studied social environmental impact of palm tree replanting program in 2013 – 2015 and its wide area is 1.518,45 ha in Sungai Pinang Estate (SPE) and Bukit Pinang Estate (BPE). This study is aimed to review environmental and social impact that might be happened due to replanting activity and provide suggestion and guideline to manage these impacts. PT BSC has Environmental Management Plan (RKL)/Environmental Monitoring Plan (RPL) document which regularly stored for 5 years, such as:

1. In 2009 (Environmental Management Plan (RKL)/Environmental Monitoring Plan (RPL), First Semester and Second Semester)

2. In 2010 (Environmental Management Plan (RKL)/Environmental Monitoring Plan (RPL)First Semester and Second Semester)

3. In 2011 (Environmental Management Plan (RKL)/Environmental Monitoring Plan (RPL) First Semester and Second Semester)

4. In 2012 (Environmental Management Plan (RKL)/Environmental Monitoring Plan (RPL) First Semester and Second Semester)

5. In 2013 (Environmental Management Plan (RKL)/Environmental Monitoring Plan (RPL) still in progress) Based on the data of statement area and interview, PT BSC did not have managed area by using small schemeholder.

Status: COMPLY

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.

PT BSC has SOP concerning communication and consultation with the community with the number of policy is 006/BSC-KKM/IV/10 on 2 April 2009. The procedure of communication and consultation with the community has been presented in the flow chart. The record of communication and consultation with the community has been documented in the list of attendance, such as communication and consultation with farmers, traders, National Land Agency, NGO, and the secretary of village. PT BSC has a list of stakeholder from the government, NGO, community figure, and contractor. This list of stakeholder has also been completed with the address and phone number so it will be easire for any communication and consultation. PT BSC has a record of community aspiration and its response by the company that has been documented in the log book of information order, such as:

On Institution Ordered Data Follow Up (Response) Date of Response


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20/11/ 2012 Local Revenue Agency of Mura Regency

Data of PT BSC’s heavy equipment in 2012

- Recollected data

- Data of PT BSC’s heavy equipment is immediately sent

29/112103

11/01/2013 LLG Tax Service Center

SPO of Property Tax Form Submission for plantation sector in 2013

- The letter was forwarded to Ms. Prumitosari

21/012103

15/02/2013 Head of South Sumateral Police

Socialization and suggestion through Roll up Bonner

- The letter was forwarded to the office of GM Estate

26/022013

PT BSC has a specific officer who has responsibility to conduct consultation and communication with the community (related with social business). His name is Ahmad Yani and the number of his appointment is 011/SP-SOS/BSC/06/2013.

Status: COMPLY

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

There is a mechanism of conflict resolution (the number of SOP of Conflict Resolution 007/BSC-PK/I4/2009) owned by the company including the record of complaint. The evidence of conflict resolution mechamism and its procedure was its implementation to the villages around the company, for example at Sungai Pinang Village

Status: COMPLY

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.

The company has SOP concerning the mechanism and evaluation of effectivity of legal right and traditional right land lossing Number 009/BSC-PK/IV/2009 on 2 April 2009. The person in charge in this procedure implementation is Management Unit Operational, Head Department and related department at Minamas Plantation.

All evidences of land compensation – negosiation records were well documented and kept for 5 years by Legal Department.

Status: COMPLY

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.

PT BSC has a list of employee salary which composed according to the Memorandum of Understanding between BKS-PPS, GAPKI and Worker Union in Agricultural/Plantation Sector. This Memorandum of Understanding contains workers wage based on the Minimum Wage of concerning Agricultural/Plantation Subsector (UMSP) in 2013. PT BSC has two Collective Labour Agreements:

1. Collective Labour Agreement which valid for the employees (monthly and daily employee of SKU) agreed by(Sumatra Plantations Cooperation Agency (BKS-PPS) and the Executive Committee of the Federation of Agriculture and Plantation Workers Union of Indonesia (PP-FSPPP-SPSI) in 2012.

2. Collective Labour Agreement which valid for staff and non staff agreed by business groups of PT Anugrah Sumber Makmur and PT Minamas Gemilang.

Facilities and infrastructure available at PT BSC, June 2013 such as: housing area (staff and workers), main office, warehouse, polyclinic, employee’s hall, praying house, daycare, and foodcourt. PT BSC has an agreement/contract with each contractor worker that meet the terms and standard requirement of employment. This contract agreement is:


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1. Agreement of Local Worker Contract, the Number is BPE/SPK-BGR/III/13/042 on 04 March 2013, on behalf of Afriadi Fahrurrozi for loose fruit collection job.

2. Agreement of Local Worker Contract, the Number is: BPE/SPK-BGR/III/13/033 on 04 March 2013, on behalf of Nuryanto for harvesting job.

Status: COMPLY

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 company has a policy to respect all worker’s right to be a member of workers union. It is described in:

Social Policy Number 724/TQEM-SPM/09.

Workers in unit (SKU and PHL): Collective Labour Agreement between Sumatra Plantations Cooperation Agency (BKS-PPS) and the Executive Committee of the Federation of Agriculture and Plantation Workers Union of Indonesia (PP-FSPPP-SPSI) in 2012 – 2014, paragraph 2 concerning Organization Recognition.

For Staff and Non Staff (workers of representative office): Collective Labour Agreement between Business Group of PT Anugerah Sumber Makmur and PT Minamas Gemilang with the Federation of Workers Union of Minamas Plantation, Staff and Non Staff Business Group of PT Anugerah Sumber Makmur and PT Minamas Plantation in 2012 – 2014, in paragraph 8 related with the Recognition of Employers and Workers Union.

Based on the result of interview with electric workers, there was a meeting between SPSI and PT BSC related with the bonus money given before the day of celebration at end of fasting month.. Based on the result of interview with the Head of SPSI BPE, the newest meeting was conducted between SPSI and PT BSC on 1 June 2013. There is a minutes of meeting on 01 June 2013 that discuss about the Minimum Wage plan of LKS Bipartit establishment, bonus money, and health service. This meeting was attended by 7 representative of company (PT GPI and PT BSC) and 13 representative of workers (PT GPI and PT BSC).

Status: COMPLY

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.

PT BSChas a policy about age requirement for worker that has been adjusted with the Law Number 12 year 2003 concerning Manpower. This policy is written in the Collective Labour Agreement 2012 - 2014 paragraph 16 point 1.2, sub point 1.2.2. It states about the recruitment of workers candidates. They should be more than 18 years old at the time of recruitment.

Status: COMPLY

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.

PT BSC has a policy concerning similar opportunity and treatment in job opportunity, with the Number of Policy: 724/TQEM-SPMS/09, point 1 regulates about no discrimination in race, degree, group ethnic, sex, dissability, sexual orientation, organization membership, political view, religion, and age. PT BSC also has provided similar opportunity to the local and non local community to work as workers. The percentage of local workers at PT BSC is 19.77 % and non local workers is 80.23 %.

Status: COMPLY

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.

PT BSC has a policy, the number of Policy is 724/TQEM-SPM/09 on 27/08/2010 related with the protection of female workers from criminal and sexual harrasment and to protect right related with female reproduction. The company has also conducted socialization about this policy to the workers. PT BSC also has a SOP of policy concerning the protection of female reproduction right, the number of Policy is:


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724/TQEM-SPM/09 on 27/08/2010, and there is also a Memorandum of Understanding related with the attitude to pregnant and breastfeeding workers. The number of policy is 005/BSC-SOU/V/2013 on 01 May 2013 PT BSC has implemented a policy to prevent sexual harrasment by establish Gender Committee, its chairman is Ms. Susilawati. Based on the study of document, Gender Committee has conducted socialization to the related workers by preventing sexual harrassment to spraying team or other division. There is also an evidence about the implementation of policy to protect female reproduction rights.

There is a SOP related with the community’s complaint handling, the number of policy is 005/BSC-PKM/IV/09 on 2 April 2009. The company has accommodated all community complaints and recorded them in complaint log book.

Status: COMPLY

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

PT BSC does not have scheme smallholders and its POM does not receive any fruit from other party so this indicator is not valid. The mechanism of FFB calculation is determined by the central management of Minamas which refer to the valid regulation.

Status: COMPLY

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

PT BSC has contributed to the local development, such as: 1. The company has paid tax obligation, such as: property tax, 21 and 23 income tax, value added tax, street lighting

tax of non PLN (State Electricity Company). For example, on 3 May 2013 Rp 1.009.043,- (Number. 23/PPJ/2013) and payment of PAB on 08/02/2013 Rp 12.048.045,-

2. The company has conducted Community Development (CD) and Corporate Responsibility (CSR) in 2011-2012 in Sidomukti Village, Anyar Village, Sungai Pinang Village, Semanggus Village, Semeteh Village, and Muararengas Village,. In 2012-2013 it was conducted in Anyar Village, Semangus Village, and Sukamaju Village,

3. CSR program in 2011-2012 was documented such as: Mosque reconstruction in Sido Mukti Village, Baitul Izza Praying House, Mosque in Anyar Village, Mosque in Sungai Pinang Village, Mosque in Semangus Village, Mosque in Semeteh Mosque, Islamic School, cemented ditch construction in Anyar Village, school book procurement, capital aid for underpriviliged family, business support for farmer groups, support the role of women, THR for the poor, help making a football field, the help of sacrificial animals, road repair portal l-41 Muara-Lakitan, piled road and bridges in Anyar Village – Muara Rengas , culverts purchasing, basic food aid, etc..

4. CSR program in 2012-2013 was documented such as: Help culvert size 80 cm, road ditch wash, Clean Water Wells, Road Hardening, Staple food assistance for the poor, aid for Sacrificed Cow, Routine Service of Road and Help of Bridge Construction.

Status: COMPLY

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.

PT BSC do not have new area development (new estate), only replanting activity in 2012 – 2013 at SPE and BPE. Environmental management document owned by PT BSC are listed below:

EIA.

Social Impact and Environmental Impact Study of Replanting Activity. Revision of RKL and RPL document owned by PT BSC for 24.000 Ha study area and additional area as many as 308 Ha has been described in this document.


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PT BSC also has studied replanting activity by the third party (Aksenta) in 2012. This replanting activity document described positive and negative impacts of replanting activity to be conducted by PT BSC. PT BSC has conducted environmental management and monitoring including replanting study as recommended in the EIA document and impact study caused by replanting activity. Environmental management and monitoring has been routinely reported (every 6 months) to the Environmental Agency of Musi Rawas Regency. There is no development of scheme smallholder at PT BSC.

Status: COMPLY

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.

PT BSC do not have new area development (new estate), only replanting activity in 2012 – 2013 at SPE and BPE. PT BSC has conducted semi detail soil study for all PT BSC area (please see criteria 4.3). Semi detail soil study describe the type of soil, characteristic of soil, class of slope, land conformity, boundary factor, and management recommendation. Replanting area has been in the semi detail study.

Status: COMPLY

7.3 New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values.

Based on the HCV Identification Report in July 2011 by Pollito in Chapter 3 (page III-1), additional study of HCV identification in area 303 Ha consist of two study sites: Block J Sungai Pinang Estate (83 Ha) and Block C Bukit Pinang Estate (224 Ha). In this report, all area at Block J Sungai Pinang Estate has been planted with palm tree while area at Block C13 and C14 still as secondary forest and rubber trees owned by the community are still exist. These palm trees were planted in 1999, 2000 and 2004. Based on the field study at this area, it can be proved that there was no HCV atribut planted with palm trees.

Status: COMPLY

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

PT BSC do not have new area development (new estate), only replanting activity in 2012 – 2013 at SPE and BPE. PT BSC has conducted semi detail soil study for all PT BSC area and completed with map. Replanting area has been included in the existing semi detail study. Based on the result of semi detail study, there was no fragile land (prone to landslide) and marginal land. The company only planted mineral land (flat and undulating terrain). Based on the result of field study, area with certain slope has been managed with terrace system, empty fruit application, silt pit making, and cover crop planting.

Status: COMPLY

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.

Based on the HCV Identification Report in July 2011 by Pollito, in Chapter 3 (page. III-1), additional study of HCV identification in 303 Ha areas consists of two sites of study, such as: Block J Sungai Pinang Estate (83 Ha) and Block C Bukit Pinang Estate (220 Ha). As described in this report, all area at Block J Sungai Pinang Estate has been planted with palm tree while at Block C13 and C14, C14 still as secondary forest and rubber trees owned by the community are still exist. There is no traditional or local land owned by the community in 303 Ha.

Status: COMPLY


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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.

The company has SOP concerning the mechanism and evaluation of effectivity of legal right and traditional right land lossing Number 009/BSC-PK/IV/2009 on 2 April 2009. The person in charge in this procedure implementation is Management Unit Operational, Head Department and related department at Minamas Plantation.

All evidences of land compensation – negosiation records were well documented and kept for 5 years by Legal Department.

Status: COMPLY

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.

PT BSC has a policy not to burn the area for new area opening and replanting. It is written in the SOP document number 110/EST-ARM/08 Part 4. Based on the field survey in the replanting area in 2010 at Block J001 SPE there was no burning activity. Facilities and infrastructure provided by the organization to prevent land fire are: one tractor which completed with water tank, hoze, dress vests for firefighters, and a team of firefighters. There are also reports results of Forest and Land Fires Facilities and Infrastructure Inventory Control of PT BSC from Forestry Agency of Musi Rawas Regency in August 2010 by duty virtue of the Head of Forestry Agency of Musirawas Regency Number 090/319/V/Kehut/2010. Based on the assessment, it can be concluded that the prevention and signing of.forest fire conducted by PT BSC has followed Article 23 paragraph 1 Government Regulation number 45 year 2004 concerning Forest Protection and Article 12 of the Regulation of Forestry Minister/PerMenHut Number P.12/Menhut-II/2009 concerning Forest Fire Control. There is a Map of Ignition – BPE, for example at Block E18. Firefighter team of BPE consist of Field Coordinator, Head of Fire Control Department, and 11 members, head of monitoring team and patrol with 3 members. Signboard of fire danger alert, for example at Block A17/A17, Pondok Divisi II BPE. Fire extinguisher at BPE as many as 34 were in good condition, for example 2 fire extinguishers at the traction of BPE. There were 4 fire towers such as at Block J18.

Status: COMPLY

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.

PT BSC has conducted Community Development (CD) and Corporate Responsibility (CSR) in 2011-2012 in Sidomukti Village, Anyar Village, Sungai Pinang Village, Semanggus Village, Semeteh Village, and Muararengas Village, In 2012-2013 it was conducted in Anyar Village, Semangus Village, and Sukamaju Village). CSR program in 2012-2013 was documented such as: Help culvert size 80 cm, road ditch wash, Clean Water Wells, Road Hardening, Staple food assistance for the poor, aid for Sacrificed Cow, Routine Service of Road and Help of Bridge Construction. PT BSC also has conducted action plan of “clean Friday” in order to manage household waste.

Status: COMPLY


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3.2. Summary of Assessment Report of Supply Chain

Clause (Module D) CPO Mills - Segregation Requirements

1 Documented Procedures

1.1

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

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

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

Wijaya Wardana (Mill Manager (Sungai Pinang Factory) There is a memorandum issued by Head PSQM (Plantation Sustainable Quality Management) dated 27 February 2013 to all Senior General Manager (SGM) Operation Sumatra Plantation and Manager PSQM and ESH Sumatra about RSPO Supply Chain Systems and Marketing of PT BSC is declared BSC segregation (SG) . It is explained definitions, labeling FFB such as certified FFB was given stamp RSPO certified, uncertified FFB was given stamp non RSPO Certified and RSPO products was given stamp Certified Segregation. There is a procedure (SOP) supply chain No. 027/BSC-SCCS/12 dated 1 September 2012 and endorsed by Estate Manager (SPE / BPE) and Mill Manager on 13 July 2013. Requirements related to implementation of the supply chain is regulated by these procedure start from identification raw materials, the manufacturing process and delivery CPO from mill to bulking, storage and shipment CPO products. In supply chain system model of segregation is provided in section 7.3. 027/BSC-SCCS/12, that separated FFB weigh ticket documents of RSPO certified, in the daily production explain number of crude palm oil and kernel production, made a summary report or balance for 3 months and shipment through sale Franco (delivered). In SOP SCCS is listed the annex of standard requirements of segregation supply chain model (Module D). 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. In procedure 027/BSC-SCCS/12 section 6 explained, the person who responsible for supply chain and implementation is Factory Manager. PSQM assistant responsible for FFB Quality, product quality control, analyse and test of raw material, storage and distribution of raw material and product. Assistant /Mgr Bulking/Logistic responsible for transportation CPO and PK from mill to handling/storage..

Status: COMPLY

1.2

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

FFB that received in Sungai Pinang POM (SPF) comes from 2 estates Bukti Pinang Estates (BPE) and Sungai Pinang Estates (SPE) and not receive from outside

Procedure for the receiving and processing FFB certified and non-certified regulated in SOP SCCS Segregation Products; section 7.3. 027/BSC-SCCS/12, that separated documents that separated FFB weigh ticket documents of RSPO certified, in the daily production explain number of crude palm oil and kernel production, made a summary report or balance for 3 months and shipment through sale Franco (delivered)


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Status: COMPLY

2 Purchasing and goods in

2.1

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

FFB that received in Sungai Pinang POM (SPF) comes from 2 estates Bukti Pinang Estates (BPE) and Sungai Pinang Estates (SPE) and not receive from outside

FFB are received through delivery ticket (SPB) that carried by vehicles (trucks) in the receiving station then it weighed in weight bridge using the form record delivery ticket (FFB) that given stamp "RSPO Certified" and then input in SIME WEIGHT program with Estates, Block, harvest date, Transport (vehicle number), hours of arriving / leave of vehicle , net weight (initial and final).

In the system WEIGHT SIME program, data of FFB that received cannot be inputted if the estates (plantations) is not registered as a certified (system will reject) and also if FFB from outside.

SIME WEIGHT program and recording of FFB received, are verification and documentation volumes of certified and non-certified FFBs received and to date there is no accepted fruit from outside but only from two estates

Status: COMPLY

2.2

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

Mill (SPF) and or company can show provision if if there is a projected overproduction and will inform to certification body that presented in the Memorandum of Head PSQM dated 27 February 2013 regarding the RSPO Supply Chain Systems to all companies e.g all GM Estates / Mill / Head Zone, Estates Manager, Factory, Head Marketing. In Memorandum section 2.3 regulated mills must inform the Certification Body if any change in the actual production data compared with data in RSPO certificate.

Data production period September 2012 - June 2013 produced 17.435 tons CPO and is still under provisions CPO that can be claimed is 32,546 Tons

Status: COMPLY

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.

FFB processing activities TBS, strat from processing up to produce CPO and palm kernel was noted, recorded and controlled (documented). The records are daily production process core Palm Oil and kernel Palm Oil (Kernel) and storage stock of palm oil. The records can be shown and accessed easily and well, for example ased on observation in Sungai Pinang Mill such as daily papers and summaries FFB receipt, daily production report, monthly performance reports of Pinang River Mill (SPF) activities (SPF).

Status: COMPLY

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

Storage period of records and documents associated with supply chain systems (SCCS) is regulated in procedure of record control (SPO/011/BSC-PC/VIII/2010 dated 2 August 2010 Section 6 points. E.1) such as retention time for requirements of audit / assessment are 5 years old.


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Storage period of records and documents is set up in procedures of record control, however, it need to be specifically reviewed to state the type of records and reports related to product supply chain activities specified segregated at least 5 years. (OFI 3.2. SCCS Module-D)

Status: COMPLY

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

Sungai Pinang Mill (SPF) has record in a format that balances all FFB receipt that RSPO ertified and shipment CPO every month. The format is in the form Monthly Summary of Sustainable FFB, CPO and Kernel production data every month. Data in 15 July 2013 shows starting in Sept 2012 to June 2013 produces FFB RSPO Certified as much 82,837 tons, CPO as much 17,435 tons and Kernel as much 3,475 Ton (during this period, there is no products that not certified or from outside). Then SPF have record stock production as outlined in monthly production reports (Monthly Report) that describes production of palm and palm kernel, CPO delivery and stock, such as stock production data in June 2013 FFB processed as much 6,396 tons, CPO production as much 1,353,095 tons, CPO Delivery as much 189,840 tons..

Status: COMPLY

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.

Sungai Pinang Mill (SPF) has been certified by RSPO and has produced or claimed CPO certified that FFB from 2 estates namely Bukit Pinang Estates (BPE) and Sungai Pinang Estates (SPE).

Rules of marking certified palm oil products (RSPO Certified Segregation) in the document is regulated by Memorandum Head PSQM dated 27 February 2013such as on the DO document, Letter of goods (Head of Mill Mandah), Weigh Tickets (Clerk Weigh) and the Sales Contract / Tax Invoice / Invoice (by Marketing Jakarta).

Documents or records of marked product by RSPO Certified / Segregation with stamp such as: FFB Delivery tickets, Weigh ticket on 15 July 2013, then on 13 July 2013 contained Delivery Order (DO) number 225/202/05 / 13, Entry and Exit Permit of truck to factory that marked with RSPO Certified Segregation stamp. Then for any corporate tax invoice that shown palm oil products and kernel certified, is marked RSPO certified segregation include invoice and salses contract issued. For example: tax invoice No. 010.0000 - 13.0000007 dated 11March 2013 for sales of Palm Kernel and invoice number 00295/BSC/III/2013 dated 11 March 2013 with the Sales Contract no.: 0068/BSC/KTR-IKS/LOK.III/2013 and DO No. 0072/00068/03/13/L-BSC-IKS.

Status: COMPLY

4 Sales and goods out

4.1

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

(a) The name and address of the buyer

(b) The date on which the invoice was issued

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

(d) The quantity of the product delivered

(e) Reference to related transport documentation

Invoices and documents of delivered / sold was given RSPO Certified Segregation stamp and contains information about the name / address of the buyer / Date of publication / Description of the product / applicable supply chain model (segregation) and the amount of product.

Invoices is created by Marketing Jakarta for PT Bina Sains Cemerlang (BSC), and based on Delivery Order (D / O) i.e. No, 0205/BSC/KTR-MKS/LOK/XI/2012, example: Contract No 000205/BSC/KTR-MKS/LOK/XI/2013 on 12 November 2012 to


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Buyer (PT Synergy Oil Nusantara), Supply Chain Segregation Model and marked RSPO Certified Segregation, Quantity 2,500 Tons, refer documents such as BA loading and stamp RSPO Certified segregation.

Status: COMPLY

5 Processing

5.1

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

Every FFB certified that processed into palm oil and kernel oil are daily recorded includes stock products and delivery. For Sungai Pinang Mill (SPF, all FFB received is certified (100%) and this data is backed up daily and monthly records that show the origin of FFBs (Sungai Pinang Estate and Bukit Pinang Estates).

If there is mixing or contamination regulated in the procedure section 7.3.1 SOP SCCS (027/BSC-SCCS/12) should not more than 5%.

Status: COMPLY

5.2

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

Every out RSPO certified product have documents D / O describe CPO products for deliver and attached the Minutes based on Delivery Order (D / O) i.e. No, 0205/BSC/KTR-MKS/LOK/XI/2012, example: Contract No 000205/BSC/KTR-MKS/LOK/XI/2013 12 November 2012 to Buyer (PT Synergy Oil Nusantara), Supply Chain Segregation Model and marked RSPO Certified Segregation, Quantity 2,500 Tons, refer documents such as BA loading and stamp RSPO Certified segregation. Then based on the existing stock is known stock taken from Storage Tank and status of stock CPO certified products.

Status: COMPLY

5.3

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

The crush operator conforms to these requirements for segregation

The crush is covered through a signed and enforceable agreement

Not Applicable - Sungai Pinang Mill do not process kernel or palm kernel become Palm Kernel Oil or no outsources activity to crush palm kernel.

Status: COMPLY

6 Training

6.1

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

SCCS training was held on 26 June 2013, located at Room Meeting Bukit Pinang Estate (BPE). Training conducted by PSQM from Pekanbaru in charge of the implementation of RSPO and SCCS system with material related to the Supply Chain Certification System and supply chain models.

There is a list of attendees with a number of key personnel who involved in the implementation of SCCS both Mill and Estatesthat demonstrated in the presence of SCCS participants such as Mill Manager, Sungai Pinang Factory (SPF


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manager ), Sungai Pinang Estate (SPE) manager, BPE Estate Manager, PSQM and Laboratory Assistant, Assistant Mill process.

To improve and ensure the competence of personnel who involved in the implementation of Supply Chain Model Segregation, the company is encouraged to make regular SCCS training program and training schedule. (OFI 6.1. SCCS Module-D)

Status: COMPLY

7 Claims

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

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.

PT Bina Sains cemerlang or Sungai Pinang POM (SPF) have been made 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.

Rule of palm oil certified is described in supply chain systems, document SOP no. 027/BSC-SCCS/12 dated 1 September 2012, with reference lists RSPO regulations about Communication and Claims (RSPO Guidelines for Communication and Claims) in the section 3.8 (reference)

Status: COMPLY


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3.3. Conformity Checklist of Certificate and Logo Use

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

X or√

S-1 The company were not using of both RSPO logo in all related documents, on-product or off-

product. NA

Status: Not Applicable

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

X or√


product. NA


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

X or√


product. NA


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

X or√


product. NA



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3.4. Summary of RSPO Partial Certification.

Total companies observed (0.5 √Y) Where Y is the total of uncertified RSPO registered company The Management Unit name : Mustika POM and PT Sajang Heulang full manage scheme smallholders (KKPA) Date of Observation: 1/05/2012

2.1

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

X or√

Mustika POM and PT Sajang Heulang full manage scheme smallholders are compliance with applicable laws and regulations.

√

Status: Full Compliance

2.2

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

X or√

PT Sajang Heulang scheme smallholders has demonstrated land use and not legitimately contested by local communities.

√


6.3

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

X or√

PT Sajang Heulang scheme smallholders has documented system for dealing with complaints and grievances, which is implemented and accepted by all 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.

X or√

PT Sajang Heulang scheme smallholders has SOP of Land Compensation Standard and Identification No. 001/PSDS-L&AS, describe Land identification, settlement patterns, Consultative Process Claims, Payment and Reporting Procedures.

√


7.3

New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values.

X or√

PT Sajang Heulang scheme smallholders have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values

√


7.5

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

X or√

No land compensation process due the entire smallholders’ scheme plantation land is the property of their respective member smallholders (land tenure is a Certificate of Ownership). PT Sajang Heulang operating the operational activity (full manage scheme smallholders)

√


7.6

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

X or√

No land compensation process due the entire smallholders’ scheme plantation land is the property of their respective member smallholders (land tenure is a Certificate of Ownership). PT Sajang Heulang operating the operational activity (full manage scheme smallholders)

√



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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 ST2 Assessment

CAR No

Ref Std Finding Area Grade Time Limits

Corrective Action Observation Status Closing Date

2010.01

Major 1.1.3

Retention time of Documents The company has determined retention time of documents based on the type, but there is no retention schedule that aims to controlling the document’s storage.

PT BSC

CFA before survaillance

The company should make retention schedule of documents aims to controlling the document’s storage

S-1: 17 July 2013 The company has procedures of document’s retention in accordance with designation in SOP Document’s Control No.11/PC-BSC/VIII/10 Notes.

Closed 17 July 2013

2010.02

Major 1.2.2

Avaibility Environmental Documents Environmental’s documents that can access by public are only in EIA document and Environmental Management Plan / Environmental Monitoring Plan period I year 2010 and period II year 2009; the company cannot show full reports of Environmental Management Plan / Environmental Monitoring Plan in previous period.

PT BSC

Minor before survaillance

The company must provide all documents that can be accessed by the public completely, include environment documents

S-1: 17 July, 2013 PT BSC has provided all the documents that can be accessed by public, such as RKL and RPL Reports Semester 1 and 2 period 2009 - 2012.

Closed 17 July 2013

2010.03

Major 2.1.1

Comply With Regulations It is found evidence of the company's activities did not meet the requirements of applicable regulations and law, for example: report of Environmental Management Plan / Environmental Monitoring Plan submit periodically in accordance with the Environmental

PT BSC

Minor before survaillance

The company must provide evidence of compliance with all legal requirements related to operational activities of the company.

S-1: 17 July, 2013 RKL/RPL has been reported periodically Some heavy equipment operators have license, among others:

1. SIO. No.12.13299-OPK3-PAA/VIII/2012 for tractor operators on behalf of Mr Seneji.

2. SIO No.12.13317-OPK3-

Closed 9 September 2013


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CAR No



Ministerial Decree No. 45 year 2005; OHS license for tractor operators in the estates for example in SPE, it is in accordance with Regulation of Labour Minister (Permenaker) No. 9 year 2010 Articles 3, 4, 5, 11 and 13 regarding the airplane carrier and freight officer; Land Application Permit has expired and not yet extended in accordance with Head of Musi Rawas District Decree No. 128a/KTPS/IV/2007 : hazardous material symbol in hazardous waste storage in accordance with Regulation of Environmental Minister No. 3 year 2008.

PAA/VIII/2012 for Grader operator on behalf of Mr. Tarmini.

However, based on documents review and interviews with workers found some operators do not have SIO (operator license). Corrective Action: 9 September 2013 Company has shown the evidence of Decree of Labor Agency of Musi Rawas, No. 560/481/IV/Nakertrans/2013 dated August 23, 2013 related to the Operator Designated PT BSC as temporarily prior to the official training and get a permanent license. The licenses among others to Br. Sumantri and Amri (Machine Room Operator), Br. Ibrahim and A. Ramdani Nicolas (Hosting Crane Operator), Br. Sangadi and Edi Purwoto (Interpreter Las), Br. Holy Abdiul (Electricity Operator). Compliance status: CLOSED. For Land Application license in 2007 has been extended No, 128.a/KPTS/IV/2007 and no.419/KPTS/BLHD/2011 valid until July 26, 2013, while extension of other Land Application license is in the process of Regents ratification in June 2013. Based on field visits to the diesel tank, chemical warehouse and fertilizer


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CAR No



warehouse is known that symbol hazardous waste has been put in accordance Regulation of Environmental Minister No. LH. 3 year 2008. Based on document review and field observations found some rules have not been met, among others: 1. Endorsement P2K3 (guiding

committee of occupational safety & health) There is not enough evidence that P2K3 SPE has been endorsed by the Department of Manpower and Transmigration District of Musi Rawas. This is not in accordance with Decree 155 Article 4, paragraph 3b. Corrective Action: August 30, 2013 Evidence of structure validation P2K3-RPE (No: 560/542/IV/Nakertrans/2013) dated August 23, 2013. Compliance’s status is CLOSED.

2. Special Medical Chekck up. Based on interviews with WTP Operator (6 months moved WTP), he felt hearing loss due to previous work for ± 5 years as an engine room operator, but special examination has not been carried out. This is not fulfilling with Permenaker. No 2 1980 Article 5,


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CAR No



paragraph 2. Corrective Action: 1 August 2013 WTP operator on behalf Mr Ramilus, has checked audiometery in Palembang Charity Hospital on 22 July 2013 by ENT specialist. The results showed the hearing is normal. Compliance’s status is CLOSED.

3. Welder Certification The company could not show certificate for welders in accordance with Man Power and Transmigration Regulation (Permennaker) No. 2 year 1982.

Corrective Action: 9 September 2013 Company has shown the evidence of Decree of Labor Agency of Musi Rawas, No. 560/481/IV/Nakertrans/2013 dated August 23, 2013 related to the Operator Designated PT BSC as temporarily prior to the official training and get a permanent license. The licenses among others to Br. Sumantri and Amri (Machine Room Operator), Br. Ibrahim and A. Ramdani Nicolas (Hosting Crane Operator), Br. Sangadi and Edi Purwoto (Interpreter Las), Br. Holy Abdiul (Electricity Operator). Compliance status: CLOSED.

2010. Major Legal Documents of Land Tenure PT Major 18 Sept The company must S-1: 17 July 2013 Closed 9 Sep


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CAR No



04 2.2.1 The company have land tenure documents in the form of Land Use Rights (HGU) certificate No. 07 year 1999, which covers 6,513 ha. Based on area statement PT BSC, it was cover 6,821 hectares thus there was 308 hectares area which did not have legal document. Until main assessment, those area were still on applying process of licenses to National Land Agency since 2008; and based on field visits, the audit team found some area of 308 hectares area has been planted with palm oil.

BSC 2013 demonstrate clear legal evidence and follow up the licensing process of the addition 308 Ha area that has been submitted to National Land Agency.

PT Bina Sains Cemerlang have had land concession document such as HGU certificate No 07/99 dated 12 June 1999 in accordance with Decree of Minister of Agrarian Affairs / Head of BPN No. 17/HGU/BPN/99 dated 23 February 1999 cover ± 6,513 Ha. Meanwhile, in the document of area statement period July 2013, total area PT BSC is 6,821.35 ha (Bukit Pinang Estate - 3,306.20 Ha and Sungai Pinang Estate - 3,515.15 Ha), so there is a difference, there are exceeds 308.35 Ha or more than concession area. These area is not planted. Based on the difference, PT BSC cannot show all legality of land tenure according to the rules for the extent area ± 308.35 Ha. Corrective Action: 15 August 2013 PT BSC have evidence of letter from BPN South Sumatera No.1927/6-16/VIII/2009 dated 4 August 2009 about measurements circumference in area PT BSC of ± 308.35 Ha. There are another evidence that the area is properly measured by the assignment letter No: 189/St-16/XI/2009 dated 26 November 2009 for an area of 83.41 ha ± and assignment letter No: 191/St-16/XI / 2009 dated 30 November 2009 for an area of 224.94 ha ±. So that the total area is 308.35 ha ± and has being measured.

2013


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CAR No



But there is not enough evidence that from 2009 to 2013, PT BSC has communicated about status of the land that has been measured. so that information of legal documents was inadequate and insufficient. Corrective Action: 6 September 2013 Evidence of communication between PT BSC with relevant agencies regarding the land status of ± 308.35 Ha can be shown through: 1. Letter No: 133/BSC/UM/PSD/VI/12 tertanggal 28 Juni 2012, regarding PT BSC Response over the Letter of Musi Rawas Regent No. 140/406/I/2012 (18 Juni 2012). Under the responses statement that Location Permit of PT BSC as many 24.000 Ha (SK No.210/SK/I/1989, 11 April 1989), only ± 6.281 Ha may able to be cultivated, consist of 6.513 Ha (HGU/Land Title) and 308 Ha (HGU/Land Title on process). 2. Letter No: 165/BSC/UM/PSD/VIII/12 dated 6 Agustus 2012. This letter concerning of Location Permit Application an area 308 Ha. The letter also forwarded to the Official Land Agendy at Musi Rawas Regency. Compliance’s status: CLOSED.

2010.05

Major 2.2.2

Legal Documents of Boundary Poles The company able to show legal evidence of boundary poles in the form of

PT BSC

Major 18 Sept 2013

The company must show evidence of legal documents for boundaries pole as a clear reference in

S-1: 17 July 2013 The company could not show documents for reference in determining the boundaries pole such as lists coordinates HGU poles

Closed 15 August 2013


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CAR No



Land Use Rights (HGU) poles and also maintenance of the poles, but the company could not provide legal documents concerning the boundaries poles as a clear reference in land tenure.

land tenure.

Corrective Action: 15 August 2013 PT BSC submited a reference in determining boundaries pole of land demarcation in the form of Measure Map made by Officers of BPN South Sumatra (Mr. Supriyadi Djayani) dated 28 November 2009. Status become OFI

2010.06

Major 2.2.3

Occupation Land It is found evidence that in Land Use Rights (HGU) areas PT BSS, have there is occupation land by the community (on behalf of Mr Zakaria and Mr. Kadenan) and the completion or progress of resolution that is received by the parties could not show.

PT BSC

Major 18 Sept 2013

The company must provide evidence of completion or progress of resolution that is received by the parties

Verification on 18 April 2011. PT BSC can show evidence and progress of land completion that received by the parties, on behalf of group Mr. Zakaria and Mr.Kadengan. The completion process as follows:

1. On 3 and 4 December 2010, meeting was held with landowners, government, and company. The meeting concluded land owners willing to give the land with compensation. Meeting attendance list is available.

2. On 9 December 2010, both parties visited the location. The area is productive rubber plantations and old rubber plantation.

3. On 15 to 17 December 2010, the two groups have willing to release land with compensation. The owner made a statement that they were willing to release. Land on



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CAR No



behalf of Nang Ali (54 years) covering an area of 10 ha, Agus Tiwan (30 years) covering an area of 15 ha, Nawi (48 years) covering an area of 10 ha, Dina / Tarigan (62 years) covering an area of 15 ha, Burlian (52 years) covering an area of 25 ha, Erwandi (30 years) covering an area of 4 ha, Ahmad Yani (40 years) covering an area of 14 ha and Nawawi (41 years) covering an area of 7 ha. There is agreement documents between two parties.

S-1: 17 July 2013 Based on Land Map PT BSC in accordance with HGU certificate No. 7 year 1999, the land in the name of Mr. Zacharias and Mr Kadengan are enclave areas and have been excluded from the concession (HGU) area. But the case of Mr. Jamani in Block L.46/47 (J001), the company has not yet showed evidence of an authentic court’s decisions that establish the disputed land belongs to the company. 3 August 2013 Decision of Supreme Court No. 42 K/TUN/2012, stated that the disputed land


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CAR No



is belongs to the company and it was decided on 7 March 2012. Based on the Minutes circumference measurement Area by BPN dated 4 December 2009 covering an area of 83.41 ha of 308.35 Ha, it indicated a land claim (land conflicts) on behalf of Mr.Yazid, Mr. Kopli and Mr. Firdaus. Until now PT BSC cannot show evidence of completion / process of land conflict resolution. 25 September 2013 PT BSC has assigned of RSPO scope certificate based on an official letter by top management No: 008/MP/IX/2013 dated 24 September 2013. It was stated that an area of 308.35 Ha be taken out from areal statement and will be inserted as time bound plan. Hence, an area of 308.35 Ha will be veified during time bound plan audit.

2010.07

Minor 2.2.2 Major 6.3.1

Conflict Resolution Procedures Conflict resolution mechanisms (SOP Conflict Resolution No. 007/BSC-PK/I4/2009) owned by the company has not been prepared in a participatory manner by involving the parties

PT BSC

Major 18 Sept 2013

The company must provide evidence of system and mechanism of conflict resolution could be accepted by the parties who involved.

S-1: 16 July 2013 The company could not show evidence that conflict resolution mechanism (SOP. Conflict Resolution No. 007/BSC-PK/14/09) has been socilalized and accepted by the parties. Corrective Action: 3 August 2013 The company had socialized conflict resolution mechanisms, including the procedures to Sungai Pinang village on 2



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CAR No



August 2013. Evidence submitted in the form of photo documentation, minutes and attendence list.

2010.08

Minor 4.2.1

Record of Soil Analysis Soil analysis records PT BSC did not explained analysis of soil fertility (soil nutrient content).

estate Minor before survailance

The company must provide evidence of soil analysis records that explains the soil fertility analysis.

S-1: 15 July 2013 The company conducetd soil analysis every once in 5 years. Soil analysis includes the analysis of soil fertility (soil nutrient content), the last analysis was conducted on 27 March 2009 by Minamas Research Center.

closed 17 July 2013

2010.09

Minor 4.4.1

Records of Water Quality Test There was evidence of records of water quality monitoring for example quality testing records of wells and river water, It conducted every six months. But there is no enough evidence that parameters tested in accordance with government quality standards

estate & mill

minor before survailance

The company must provide evidence that water quality monitoring results are in accordance with government quality standards

S-1: 17 July 2013 The company showed evidence of water quality monitoring in the test result’s documents dated 8 April 2013. Based on evaluation results, all the parameters have met the required quality standards.

closed 17 July 2013

2010.10

Major 4.6.4 Minor 5.3.1

Hazardous Waste Storage It was found evidence that hazardous waste did not stored in a place licensed in accordance with regulations such as Government Regulation 18 year 1999: Used oil and diesel fuel filter (in SPE workshop) including used pesticide packaging produced by the estate.


The company shall keep the whole hazardous waste generated in the location licensed in accordance with Government Regulation 18 year 1999.

S-1: July 17, 2013. Based on field observations at Genset’s house Division II BPE; BPE Workshop and SPE Workshop; BSS house and observations in estates, have been not found hazardous waste storage. Hazardous waste has been stored in a licensed warehouse in Sungai Pinang POM.

closed 17 July 2013

2010.11

Major 4.7.2

Advisory Committee of Occupational Health and Safety (P2K3) The company has had Advisory

estate & mill

CFA before survailance

The company should report the results of Advisory Committee of Occupational

17 July 2013 The company has submited P2K3’s report every three months to Manpower and

closed 17 July 2013


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CAR No



Committee of Occupational Health and Safety (P2K3) endorsed by Manpower and Transmigration Agency sidtrict of Musi Rawas and also there have been records of Advisory Committee of Occupational Health and Safety (P2K3) activities such as the meetings. But there has not been enough evidence that company has reported Advisory Committee of Occupational Health and Safety (P2K3) activities in accordance with the requirements of Advisory Committee of Occupational Health and Safety (P2K3) endorsement letter by Manpower and Transmigration Agency

Health and Safety (P2K3) activities in accordance with the requirements of Advisory Committee of Occupational Health and Safety (P2K3) endorsement letter by Manpower and Transmigration Agency

Transmigration Agency district of Musi Rawas. For example P2K3’s report period January - March 2013 was submitted in April 2013.

2010.12

Major 5.1.1 Minor 5.1.1 Major 6.1.1 Minor 6.1.2 Major 7.1.1 Minor 7.1.1

Environmental and social impact assessment There is no enough evidence that additional area (308 ha) outside Land Use Rights (HGU) that are still in the process to obtain location permit is supported by the document of the environmental and social impact assessment results.


The company must ensure the additional area outside (308 ha) Land Use Rights (HGU) that are still in the process of location permit is supported by the document of the environmental and social impact assessment results. If possible previously EIA documents is revised.

S-1: 17 July 2013 The company has shown revised RKL and RPL documents that have been approved by Regents of Musi Rawas district No 128B/KPTS/IV/2007 dated 30 October 2007, which limits the study area covers 24,000 ha and additional area outside HGU (308 Ha) have been included in the documents.

closed 17 July 2013

2010.13

Major 5.1.2 Minor

Environmental Management Plan (RKL) / Environmental Monitoring Plan Report (RPL) – There was no evidence

Minor before survailance

The company must provide evidence that Environmental

S-1: July 17, 2013 The company has reported Environmental Management Plan / Environmental

closed 17 July 2013


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CAR No



6.1.3 that Environmental Management Plan / Environmental Monitoring Plan reports have been conducted periodically and scheduled. For example Environmental Management Plan / Environmental Monitoring Plan reports period before semester II year 2009 are not available.

Management Plan / Environmental Monitoring Plan reports have been done periodically and scheduled. For example Environmental Management Plan / Environmental Monitoring Plan reports to the period before semester II year 2009 are not available.

Monitoring Plan regularly every 6 months (e.g.: Report of Environmental Management Plan / Environmental Monitoring Plan Semester II year 2012 has been reported on15 March 2013). In addition, PT BSC also showed Document Implementation Report of Environmental Management Plan / Environmental Monitoring Plan RKL from Semester 1 2009 to Semester 2 2012.

2010.14

Major 5.2.1

HCV Identification There is no enough evidence that the public hearing process in the identification of HCV has conducted and involved NGOs and the University as required in High Conservation Value Areas Identification Guide in Indonesia, published by a consortium of HCV Toolkit revision of Indonesia, in June 2008.

Major 18 Sptember 2013

The company must have documents of HCV identification have been made by consultation with all stakeholders especially NGOs and Universities.

S-1: 16 July 2013 There is statement from Pollito (No. 67/P-DN-PRD-XII/201) dated 9December 2010 that stated the process of HCV identification from begining has been involved stakeholders (including NGOs and universities) in accordance User Identification HCVA in Indonesia (Toolkit version June 2008). Stakeholders involved include: Bogor), Peramu (Bogor), Birdlife (Bogor), Conservation of Nature Resource and Environment (Conture) Bogor, IPB, BKSDA Musi Rawas Regency, BKSDA Banyuasin Regency. Those stakeholders on the role of team as identification, secondary data sources as well as a reviewer of final report. The statement letter also attached list of public hearing (dated 6 January 2010)



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CAR No



which was attended by 15 people. Based on HCV identification report in July 2011 was conducted by Pollito, stated in Chapter I (page I-21) that the public consultation was conducted on 12 May 2011 in Bukit Pinang Estate. However, evidence of consultation with the parties is not available. 27 September 2013 Minutes of Meeting regarding Public Consultation of HCV Identification result on 12 May 2011 by Pollito Consultant (No. 04/BAP/Pollito/05/2011) able to shown by the company. It was attended by 16 persons which consist of consultant, community, student, relevant agencies, NGO, Chief of Villages and company. Compliance’s status: CLOSED

2010.15

Major 5.2.1 Major 7.3.1 Major 7.5.1

HCV Identification There has been no enough evidence that HCV identification of additional area outside Land Use Rights (HGU) (308 ha) which included planting areas after November 2005 have been carried out of HCV Identification. The documents is owned by the company, only studied scope of the Land Use Rights (HGU) area (6,513 Ha).


The company must provide evidence that HCV identification of additional area outside Land Use Rights (HGU) (308 ha) have been carried out.

S-1: 16 July 2013 Based on HCV identification report in July 2011 was conducted by Pollito, described in Chapter 3 (page III-1) that additional study HCV in expansion area of 303 ha consists of 2 study include: Block A Pinang River Estate (83 Ha ) and Block C Bukit Pinang Estate (220 Ha). The report stated Block J Sungai Pinang Estate has been fully planted with palm oil. Whereas, for Blocks C13 and C14 status of land cover are

closed 16 July 2013


ASSESSMENT REPORT

SPO – 4006a.5 Page 50


CAR No



secondary forest where there are rubber trees of people.

2010.16

Minor 5.2.2

HCV Supervisor The company has appointed Mr. Yasirman to monitor HCV activity plan, but there has been no evidence that the assigned officer was trained and well understood the HCV concept.


The company must provide training and understanding about HCV management of to supervisor who has been appointed.

S-1: 16 July 2013 Mr. Yasirman is not working in PT BSC, so the position is replaced by Mr. Mendi Ardian (Sungai Pinang Estate) and Mr. Hartanto (Bukit Pinang Estate). Appointment letter in accordance with the decree HCV officer for Mr.Mendi Ardian (No: SPE/RSPO-HCV/V/2013, dated 1 May 2013) and Mr. Hartanto (No: BPE/RSPO/HCV/2012/01, dated 3 September 2012). Meanwhile, there is evidence that the officer had been trained such as attendence list of HCV training in PT BSC dated 27 June 2013 which was attended by 7 participants (including the officer who had been appointed). Training materials could be showing in hardcopy which explanations HCV Toolkit, HCV Identification report and HCV Monitoring Program. Material is presented by PSQM Department (Mr. Rinno F).

closed 16 July 2013

2010.17

Minor 6.1.1

Social Impacts Monitoring And Management Plans The company has not involved public participation in prepare social impacts monitoring and management plans.


The company must involve community participation in prepare social impacts monitoring and management plans.

S-1: 17 July 2013 PT BSC has involved community participation in planning and monitoring of social impact management. It was proofed by the program and the realization of CD / CSR in 2012/2013 for some villages such as Anyar village, Semagus village and

closed 17 July 2013


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SPO – 4006a.5 Page 51


CAR No



Sukamaju village. The CSR program are street paving, wells for clean water, making bridges, etc.. In addition, public participation in employment aspect can be see through percentage of local people who works in PT BSC is 19.77%.

2010.18

Minor 6.2.3

Consultation and Communication Officer The company has appointed Mr. Ahmad Yani as a special officer to conduct communication and consultation with the community and responsible for villages not only in surrounding of PT BSC but also others under PT Minamas Plantation.

estate OFI before survailance

It is strongly advise to review the scope of the special officer to conduct communication and consultation with the community focus on PT BSC area so that the officer will more effective in carrying out the duties.

S-1: 17 July 2013 PT BSC have special officers that is Mr Ahmad Yani who responsible for consulting and communicating with the public. See OFI No. 4.

closed 17 July 2013

2010.19

Minor 6.9.1

Sexual Harassment Prevention Policies The company has developed a sexual harassment prevention policy, but the dissemination is considered less effective based on interviews with women spray operators who do not understand and know the policy of sexual harassment prevention that was made by the company.

estate CFA before survailance

The company should socialize sexual harassment prevention policy to all workers more effectively.

S-1: 17 July 2013 PT BSC already has had a policy regarding sexual harassment. This policy was socialized by Gender committee 4 times in a month. The last ssocialization held on 27 June 2013.

closed 17 July 2013

2010.20

Minor 6.11.1

CSR Program CSR programming is still charity and not

estate CFA before survailance

The company should made CSR program with consider identification of community

S-1: 17 July 2013 PT BSC already has had CSR program that was developed with considering community

closed 17 July 2013


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SPO – 4006a.5 Page 52


CAR No



considers to identify community need aiming to empower local communities sustainability.

needs aiming to empower local communities.

needs for example make culvert size 80 cm, drain flushing, Clean Water Wells, maintenance Road, food assistance for poor, Cow for Sacrifice, and make Bridge.

2010.21

Major 7.3.2

Map of Land Clearing Plan And The Realization There is no record of map plan and the realization of land clearing for planting year after November 2005 based on the HCV identification.

PT BSC

Major 17 Sept 2013

The company must provide records of map plan and realization of land clearing for planting year after November 2005 based on the HCV identification.

S-1: 17 July 2013 Based on HCV identification reports in July 2011 that was conducted by Pollito with scope of assessment covering an area of ± 308.45 ha and field observation in Block J001, there were no planting after November 2005 are in HCV area. Regarding with replanting activities, the company has had replanting plan map in 2013-2015 (present in SEIA document of replanting, Aksenta January 2013). But the realization map of the activities is not shown. 18 July 2013 PT BSC already has have plan map of replanting activities in Sungai Pinang Estate (2014-2030) and Bukit Pinang Estate (2012-2013) and also realization map of replanting activities until 2013 covering 206.04 hectares (Sungai Pinang Estate) and 140.09 Ha (Bukit Pinang Estate).

closed 18 July 2013

2010.22

Major 8.1.1

Social Impact Management Action Plan The company has had social impact management action plan aiming to reduce impact that may arise against or

PT BSC

CFA before survailance

It is recommended to monitor the achievement of the target of action plans in accordance with the schedule.

S-1: 17 July 2013 The company could show evidence of social impact management action plan in the form of tables and there are tentative implementation schedule. Status become OFI No. 7

closed 18 July 2013


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SPO – 4006a.5 Page 53


CAR No



suffered by the relevant stakeholders in accordance with the specified target date. But monitoring of the achievement of those targets has not been conducted.

3.5.2 Identification of Findings, Corrective Actions and Observations at S1 Assessment

CAR No



2013.01

Major 2.1.2

Compliance To Regulatory Changes. The company could not show evidence of adjustments to regulatory changes including the evaluation mechanism.

estate Major 18 Sept 2013

The company must show evidence of adjustments to regulatory changes including the evaluation mechanism.

Root cause: Records of regulatory changes are not maintained and updated. Problem Solving: 2 August 2013 Completed list and regulatory changes sent to unit management (PT BSC) for maintain records. The documents such as ESH Sumatra Region for RSPO and list of RSPO Regulation (updated June 2013). Preventive action: Every regulatory changes will be updated and informed to headquarters of management unit PT BSC.

Closed August 3, 2013


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SPO – 4006a.5 Page 54


CAR No



2013.02

Major 5.3.2

Implementation of Waste Management The Company have document of identification sources of waste and management plans. The document explained domestic waste (household) is managed by collected and transported to the final disposal (landfill). Based on a field visit in emplacement Division 2 BPE, traction SPE, traction BPE, emplacement traction Mill is known that domestic and plastic waste from households is destroyed by fire, and thrown in the garden area. This is not compliance with waste management plan PT BSC.


the company must demonstrate implementation of waste management in accordance with waste management plan based on identification results aims to avoid and reduce pollution.

Root Cause: Employees awareness of environmental hygiene is deficient. Problem Solving: Creating Program and Waste Management Monthly through activity of clean Friday. Preventive action: 1 August 2013 PT BSC submits evidence such as program and Waste Management year 2013 and 2014. The program are cleanup activities / community service in house every Friday through cleac event, while household waste will collect every Saturday. The evidence such as photo submitted such as garbage collection activities in each houses use sacks and place in the curb then will be carried by truck and dumped into landfill in Division III SPE.


2013.03

Minor 5.3.1

Reporting Balance of Hazardous Waste The Company have balance sheet of hazardous waste that records all types hazardous waste tahet produced. But PT BSC only reported hazardous waste such as used oil to relevant agencies every 3 months.

mill Minor S-2 The company must provide hazardous waste management plan in accordance with applicable regulations, in this case the balance sheet report all types of hazardous waste.

root cause corrective action preventive action

2013.04

Major 5.5.2

Implementation of Zero Burning Policy Based on observation result in


The company must have records implementation

root cause Not all workers understood zero buring

Closed 18 July 2013


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SPO – 4006a.5 Page 55


CAR No



emplacement Division II BPE was found waste removal by burning Based on observation in workshop BPE and SPR was found waste incineration

zero burning to remove waste or do not burn waste

policy that not allowed waste removal by burning Corrective action : Cleaning traces of burning and removing waste to landfills. preventive action Socializing zero burning policy awareness to all workers, for example traction SPE and BPE workers ( on 18 July 2013), workers in emplacement II (17 July 2013), fertilizer and harverst workers Division 1 SPE ( 30 April 2013) Evidence of socialization such as attendence list (71 workers), picture of safety briefing activities, picture of socialization of prohibition zero burning and smoking in traction, socialization prohibition waste burning in empalcement Division 2.

2013.05

Minor 5.6.1

Records of Effort And Plan To Reduce Polution Based on observation result in diesel charging BPE and SPE found droplets of fuel (diesel) directly into ground

estate Minor S-2 The company must show records of effort andplan to reduce polution

root cause corrective action preventive action


ASSESSMENT REPORT

SPO – 4006a.5 Page 56


3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 Major 1.1.3

The company should classify record information requests and its responses in accordance with the retention time of types documents according to SOP Records Control No.11/PC-BSC/VIII/10

2 Major 2.2.2

Legal boundaries The company should conduct redigitized coordinates of HGU poles based on measuring map BPN to facilitate monitoring and maintenance.

3 Major 4.5.1

Integrated Pest Management Program Program Planting Beneficial Plant should be explained in detail such as target and the amount of plant.

4 Major 4.7.2

P2K3 (guiding committee of occupational safety & health) Report The company should ensure submit the P2K3 report routinely every 3 months (example periods April - June 2013 submitted before 31 July, 2013).

5

Minor 5.6.1

Records Efforts and Pollution Reduction Plan The company should consider clear mechanism output settings WWTP effluent from mill pond (POME) to land application area to ensure wastewater does not occurr both in the factory and land application areas.

6 Minor 6.2.3

Officers for consultation and communication The company should consider appoint a special officer for consultation and communication, in accordance with the conflict potential in the workplace PT BSC.

7 Minor 6.3.1

Handling of Complaints The company shall consider more active to responding and following up on complaints.

8 Major 8.1.1

Social impact management plan The company have challenges in achievement of social impact management through a scalable mechanism, such as the system time and plan realization.

9 3.2. SCCS Modul-D

Storage period of records and documents is set up in procedures of record control, however, it need to be specifically reviewed to state the type of records and reports related to product supply chain activities specified segregated at least 5 years

10 6.1. SCCS Modul-D

To improve and ensure the competence of personnel who involved in the implementation of Supply Chain Model Segregation, the company is encouraged to make regular SCCS training program and training schedule.


ASSESSMENT REPORT

SPO – 4006a.5 Page 57


3.5.4 Noteworthy Positive Components

No Ref Std Descriptions

1 The company's commitment to implement the principles of sustainable palm oil (RSPO).

2 Personal’s (PIC) competence according to their aspect.

3 Teamwork in the provision of audit documentation.

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

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

Regional Office of National Land Agency District of Musi Rawas According to information from the Head of Land Concession Musi Rawas, there has never been application for measuring area of 308,35 hectares from PT Bina Sains Cemerlang to BPN District of Musi Rawas. If there are cultivated areas exceed the previous concession (HGU),so that PT BSC should immediately submit measurement to BPN .

Based on statement of PSD (Mr. Ahmad Yani), The company have been submitted application, but when Surveillance-1 RSPO assessment, PSD could not show evidence of proposal to BPN District of Musi rawas

PT BSC should record, keep and maintain all records communication and consultation with stakeholders, especially it related with legal aspect/ land tenure.

Department of Manpower and Transmigration, district of Musi Rawas

a. According to Manpower Supervision section, PT BSC have made structure of guiding committee of occupational safety & health and reported regularly appropriate with aplicable regulations.

b. Manpower Supervision visit conduct every year, aims to assess implementation of work, occupational

Reporting of occupational safety & health will maintain Complaints from SPSI about health care employees at PT. BSC have been submitted to the Management.

PT BSC must obey all regulation of obligations to relevant agencies. In addition, The company should maintain harmony between management and employees to avoid conflicts in the future.


ASSESSMENT REPORT

SPO – 4006a.5 Page 58




health & safety and labour social assurance. So far, the company obey the obligation, it proofs from working hours and nil accidents that have been implemented quite well.

c. c. There have complaints to Board Unit SPSI PT BSC in May 2013 related to health care.

Until now, health services still referred to Hapsari Hospital (Lubuk Linggau) and Charitas Hospital (Palembang)

Environment Agency District.of Musi Rawas. a. Extension of wastewater usage PT BSC has been

submitted to BLH and still awaiting approval by Regent.

b. According to BLH, based on routine monitoring visit in June 2013, PT BSC’s mill have good performance.

c. There happened the results of emission testing

stationary sources (air) semester 1 2013, one parameter exceeds the threshold.

d. PT BSC BLHD did not yet coordinate the environmental activities before replanting, although replanting has been carried out. BLH need to ensure the environmental attributes (such as rivers) are not degraded due to the impact of replanting activities.

Management PT. BSC will monitor the process until permit issue. Based on analysis results from company hygiene & occupational health, Manpower South Sumatra Province, the emission results of stationary sources (air) is below the threshold. (Data attached). PT. BSC will coordinate with BLHD about environmental assessment in replanted areas

PT BSC should record, keep and maintain all records communication and consultation with stakeholders. In addition, the company remains proactive to maintain communication with all stakeholders.

Anyar Village Community Leader And Representative ( 4 People) Relationship between community and PT BSC has been going well, help each other like employment opportunities, roads maintainance and social programs company's contribution are:

1. Employment opportunities (employees and

Employment opportunities for people around run well. The aspiration will be communicated to the management through PSD Department

PT BSC should maintain harmony between management and employees to avoid conflicts in the future. In addition, the company remains proactive to maintain communication with all stakeholders, especially community around.


ASSESSMENT REPORT

SPO – 4006a.5 Page 59




contractors), but it has not been fully felt by the people, especially for labor contractor.

2. Business opportunities. 3. accessibility (road).

Based on interviews, the road is used by company was belong of villagers. The people ( land owner that used for road) often complain and expect compensation from the company. In addition,the others also complain of damaged roads / muddy (when rainny), dusty (when dry season). The society hopes the road can be fix (asphalt). PT BSC did not yet conduct public hearing and socialization related to these problem.

Community’s aspirations have been well received by PT BSC but often not response, such as the proposal

People expect PT BSC aid oil palm seedlings

Sungai Pinang Village Community representatives.

There is no Gap (dispute) about completion of land rights.

PT BSC has not socialize procedures of land dispute resolution to the community

PSD departments will more active in the future

PT BSC should maintain harmony between management and employees to avoid conflicts in the future. In addition, the company remains proactive to maintain communication to all stakeholders. Especially community around.


ASSESSMENT REPORT

SPO – 4006a.5 Page 60 Prepared by Mutuagung Lestari for SUNGAI PINANG POM – PT BINA SAINS CEMERLANG

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:

Company Name

Mutuagung Lestari

Management Representative

Lead Auditor

Mohamad Pirabaharan

Yudwi Wisnu Rahmanto

Friday, 19/July/2013

Friday, 19/July/2013


ASSESSMENT REPORT


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

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

Date of Contact

1 Regional Office of National Land Agency District of Musi Rawas

Musi Rawas

Direct visit

2 Department of Manpower and Transmigration, district of Musi Rawas

Musi Rawas

Direct visit

3 Environment Agency District.of Musi Rawas.

Musi Rawas

Direct visit

4 Anyar Village

Surrounding the company

site Direct visit

5 Sungai Pinang Village

Surrounding the company

site Direct visit


ASSESSMENT REPORT


Appendix 2. Assessment Program

DATE 15 – 19 Juli 2013

ACTUAL PROGRAM PROCESSES / CLAUSES TO BE AUDITED AUDITOR

Monday, 15 July 2013

06.00 - 13.00

13.00 – 14.00

14.00 – 17.00

Traveling Jakarta – Palembang – PT BSC Opening Meeting Verification of previous audit result Document review and completing checklist:

Informasi Umum / General Information

Principle 1 Commitment to Transparency

Principle 2 Compliance with Applicable Laws and Regulations

Principle 3 Commitment to long-term economic and financial viability

Principle 4 Use of appropriate best practices by growers and millers.

Principle 5 Environmental responsibility and conservation of natural resources and biodiversity

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

Principle 7 Responsible development of new plantings

Principle 8 Commitment to continuous improvement in key areas of activity

TFK/YWR/MES/AR/ SHL

TFK/YWR/MES/AR/ SHL

YWR/MES/AR/SHL

Tuesday, 16 July 2013

08.00 – 12.00

08.00 – 12.00

14.00 – 17.00

Stakeholder Consultation Affected Villages Relevant Agencies Document Review, completing checklist and Field Observation at Sungai Pinang POM:

Processing, POME , OHS implementation, Land application

Supply Chain Requirement Document review and completing checklist:









Principle 8 Commitment to continuous improvement in key areas of activity

YWR/MES/AR/SHL

YWR/MES/AR/SHL

Wednesday, 17 July 2013


ASSESSMENT REPORT


Noted : Lunch break 12.00 – 14.00

TFK: Taufik Margani; YWR: Y Wisnu Rahmanto; MES: Marsudi Eko Santoso; AR: Ardiansyah; SHL: Sofyan Hadi Lubis

08.00 - 12.00

14.00 - 17.00

Field Observation at Bukit Pinang Estate:

Harvesting, Maintenance/Upkeeping (Spraying and Manuring)

Housing, Workers facilities, Hazardous waste management, Medical facilities

Boundary stones and management area, Conservation Area Document review and completing checklist:









Principle 8 Commitment to continuous improvement in key areas of activity Verification of Stakeholder Consultation and Interview

Workers Union, Gender Committee

Thursday,18 July 2013

08.00 - 10.00

10.00 – 12.00

13.00 - 17.00

17.00 - .....

Internal meeting team and preparing NCR Closing Meeting Traveling to Palembang Compiling Checklist

TFK/YWR/MES/AR/ SHL

TFK/YWR/MES/AR/ SHL

TFK/YWR/MES/AR/ SHL

YWR/MES/AR/SHL

Friday, 19 July 2013

08.00 - 10.00 Return flight to Jakarta TFKYWR/MES/AR/ SHL


ASSESSMENT REPORT


Appendix 3. Glossary

ANDAL : Analisis mengenai dampak lingkungan

B3 : Bahan berbahaya dan beracun

BOD : Biological oxygen demand

BPE : Bukit Pinang Estate

CD : Community development

CPO : Crude palm oil

CFA : Comment for action

HCV : High conservation value

HGU : Hak Guna Usaha

HPO : Head Plantation Operation

IUP : Izin usaha perkebunan

K3 : Kesehatan dan Keselamatan Kerja

RKL : Rencana kelola lingkungan

RPL : Rencana pemantauan lingkungan

SPE : Sungai Pinang Estate

SPF : Sungai Pinang Factory

SPK : Surat perjanjian kerjasama

PSD : Plantation Service departement

PKB : Perjanjian kerja bersama

PKS : Pabrik kelapa sawit

POME : Palm oil mill effluent

PSQM : Plantation Sustainable Quality Management

P3K : Pertolongan pertama pada kecelakaan

TBS : Tandan buah sawit

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