Roundtable on Sustainable Palm Oil Public Summary Report Report No. : ASA2-14024 Surveillance Assessment against the RSPO Principles & Criteria Generic Standard 2013 and RSPO SCCS November 2014 PT PERKEBUNAN NUSANTARA III Aek Nabara Selatan Palm Oil Mill Head Office : Jl. Sei Batang Hari No. 2 Medan, North Sumatera Province - Indonesia Site Office : Bilah Hulu Sub District, Labuhan Batu District, North Sumatera Province - Indonesia Date of 2nd surveillance audit : March 28 – April 1, 2016 Report prepared by: Mhd Fundy Cholis Kurniawan (RSPO Lead Auditor) Certification decision by: I Nyoman Susila (Managing Director of TÜV Rheinland Indonesia) Certification Body: PT TÜV Rheinland Indonesia. Menara Karya, 10 th floor, Jl.HR Rasuna Said Block X-5 Kav. 1-2 Jakarta 12950, Indonesia. Tel: +62 21 579 44 579 Fax: +62 21 579 44 575 www.tuv.com
Transcript
Roundtable on Sustainable Palm Oil
Public Summary Report Report No. : ASA2-14024
Surveillance Assessment against the
RSPO Principles & Criteria Generic Standard 2013 and RSPO SCCS November 2014
PT PERKEBUNAN NUSANTARA III
Aek Nabara Selatan Palm Oil Mill
Head Office : Jl. Sei Batang Hari No. 2 Medan, North Sumatera Province - Indonesia
Site Office : Bilah Hulu Sub District, Labuhan Batu District, North Sumatera Province - Indonesia
Date of 2nd surveillance audit : March 28 – April 1, 2016
1.0 SCOPE OF FIRST SURVEILLANCE AUDIT .............................................................................................. 3
1.1 National Interpretation Used ........................................................................................................................ 3 1.2 Type of Assessment .................................................................................................................................... 3 1.3 Certification Details ...................................................................................................................................... 3 1.4 Location and Maps....................................................................................................................................... 4 1.5. Organizational Information/Contact Person ................................................................................................ 5 1.6 Description of Supply Base .......................................................................................................................... 6 1.7 Actual production volumes and project outputs ........................................................................................... 7 1.8 Dates of Plantings and Replanting Cycles ................................................................................................... 7 1.9 Area of Plantation (Total, Planted and Mature)............................................................................................ 8 1.10 Progress against Time Bound Plan ........................................................................................................... 8 1.11 Compliance to rules for Partial Certification ............................................................................................... 9 1.12 Progress of associated smallholder or outgrowers towards RSPO compliance ...................................... 10 1.13 Approximate Tonnages Certified ............................................................................................................. 10 1.14 Other Achievements and Certifications Held ........................................................................................... 10
2.0 ASSESSMENT PROCESS .................................................................................................................. 11
2.1 Certification Body ....................................................................................................................................... 11 2.2 Qualifications of Lead Assessor and Assessment Team ........................................................................... 11 2.3 Assessment Methodology & Agenda ......................................................................................................... 12 2.4 Surveillance Audit Agenda ......................................................................................................................... 13 2.5 Date of Next Surveillance Visit................................................................................................................... 14
3.1 Summary of Findings ................................................................................................................................. 15 3.2 Status of Previously Identified Non-conformities ...................................................................................... 32 3.3 Identified non-compliances, corrective actions taken and auditors conclusions ........................................ 34 3.4 Description of Supply Chain Management System.................................................................................... 41 3.5 Status of previously identified non-conformities......................................................................................... 44 3.6. Identified Non-Compliance against RSPO SCCS Requirement, Corrective Actions Taken and Auditors Conclusions ..................................................................................................................................................... 44 3.7.Noteworthy Positive Components .............................................................................................................. 45 3.8 Conclusions and Recommendation for RSPO P & C and Supply Chain Certification ............................... 45 3.9 Issues Raised by Stakeholders and Findings Pertaining to Issues ........................................................... 45
4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY .............. 48
4.1 Date of Next Surveillance Visit................................................................................................................... 48 4.2 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client ........................................... 48
Appendix 1: Details of Certificate ..................................................................................................................... 49 Appendix 2: List of Abbreviations..................................................................................................................... 51 Appendix 3: List of Stakeholders Interviewed and Contacted ......................................................................... 51 Appendix 4: Observations and Opportunities for Improvement ....................................................................... 52
RSPO Certification Assessment Report PT Perkebunan Nusantara III – Aek Nabara Selatan
Palm Oil Mill – North Sumatera
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1.0 SCOPE OF FIRST SURVEILLANCE AUDIT
1.1 National Interpretation Used The operations of the mill(s) and its supply base of FFB were assessed against the RSPO Generic Principles & Criteria 2013 and the RSPO Supply Chain Certification Systems (SCCS) document 2014.
1.2 Type of Assessment
The 2nd surveillance assessment was carried out on 1 (one) mill (Aek Nabara Selatan Mill) and 6 (six) estates (Aek Nabara Selatan Estate, Rantau Prapat Estate, Merbau Selatan Estate, Mambang Muda Estate, Labuhan Haji Estate, and Bandar Selamat Estate, under Aek Nabara Selatan Mill owned by PT Perkebunan Nusantara III (hereinafter referred to as “PTPN III” or “the company”). There is one estate ie. Sei Dadap estate has been excluded from Aek Nabara Selatan supply base, and RSPO certification scope.
1.3 Certification Details
The details of RSPO certification of Aek Nabara Selatan Palm Oil Mill are as per the table below
Table 1: RSPO Certification details of PT Perkebunan Nusantara III, Aek Nabara Selatan Palm Oil Mill
RSPO Membership No. 1-0030-06-000-00
RSPO Certificate No. 824 502 14024
Date of first RSPO certificate & validity May 23, 2014 to May 22, 2019
Date of certification audit December 12 to 21, 2011 Re Audit on September 09 to 12, 2013
Date of previous surveillance audit April 6 – 13, 2015
Date of revised RSPO certificate & validity (if applicable)
June 18, 2014
Certified FFB processed in 2015 246,591.99 tonnes
CPO tonnages claimed 60,574 tonnes
PK tonnages claimed 11,592 tonnes
Mil Capacity 60 mt/hour
RSPO Certification Assessment Report PT Perkebunan Nusantara III – Aek Nabara Selatan
Palm Oil Mill – North Sumatera
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1.4 Location and Maps Figure 1. PTPN III’s Location in North Sumatera-Indonesia
Figure 2. Location of PTPN III’s 7 estates in North Sumatera
PTPN III
Location of 7 certified’s estate and Aek Nabara Selatan Mill in Labuhan Batu III Districk
RSPO Certification Assessment Report PT Perkebunan Nusantara III – Aek Nabara Selatan
Palm Oil Mill – North Sumatera
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Table 1: GPS locations for all estates and mills included in 2nd surveillance assessment
Name of mill / estate
Location GPS locations
Latitude Longitude
Aek Nabara Selatan Mill Aek Nabara Village, Bilah Hulu Sub District, Labuhan Batu District
02º03’42” 99º57’20”
Aek Nabara Selatan Aek Nabara Village, Bilah Hulu Sub District, Labuhan Batu District
02º03’29” 99º57’19”
Mambang Muda Perkebunan Mambang Muda Village, Kualuh Hulu Sub District, North Labuhan Batu District
02º33’02” 99º49’20”
Rantau Prapat Jl. Lintas Sumatera Utara Rantau Prapat, Bilah Barat Sub-District, Labuhan Batu District
02º03’32” 99º48’04”
Merbau Selatan Merbau Selatan Estate Village, Merbau Sub-District, North Labuhan Batu District
02º12’30” 99º49’54”
Labuhan Haji Labuhan Haji Village, Kualuh Hulu Sub District, North Labuhan Batu District.
02º32’10” 99º42’20”
Bandar Selamat Perkebunan Bandar Selamat Village, Aek Songsongan Sub District, Asahan District
02º12’00” 99º33’00”
1.5 Organizational Information/Contact Person
PTPN III is one of the fourteen state owned enterprises which operate in the plantation industry. Its business comprises cultivation of oil palm and rubber, and the production and sale of oil palm and rubber products. The company's main products are Crude Palm Oil (CPO), Palm Kernel, dry rubber and downstream, rubber product. The enterprise was established through a takeover of the Dutch plantation companies in 1958 by the Republic of Indonesia, through the process of nationalisation of foreign plantation companies, to form Perseroan Perkebunan Negara (PPN). In 1968, Perseroan Perkebunan Nusantara (PPN) was restructured by the Government to form a number of Perusahaan Negara Perkebunan (PNP). Thereafter, in 1974, the legal status of PNP was changed to that of a limited company and given the name PT Perkebunan (Persero). In order to improve the efficiency and effectiveness of state owned companies/enterprises the Government of Indonesia restructured the state owned companies/enterprises in the plantation sector, through the process of merging companies on the basis of geographical locations. Concurrently, the organisation structures of the companies were also streamlined. In 1994, through a process of merger of managements, the managements of three state owned plantations, namely PTPN III (Persero), PT Perkebunan IV (Persero) and PT Perkebunan V (Persero), were unified under the management of PTPN III (Persero). Thereafter, through Government Regulation No. 8 of 1996 dated 14 February 1996, the three companies, whose businesses were located in North Sumatera, were merged into one company and given the name of PT Perkebunan Nusantara III (Persero) was located in Medan, North Sumatera. PTPN III was incorporated through By Laws of the company notarised by Harun Kamil, S.H., carrying Number 36 dated 11 March 1996, and legalised by the Minister of Justice of the Government of Indonesia through Decree No. C2 8331.HT.01.01.TH.96 dated 8 August 1996, and published in the Gazette of the Republic of Indonesia No. 81 of 1996, and Annexure to the Gazette No. 8674 of 1996. Along 2004, PTPN III has been actualising fundamental and comprehensive changes to achieve company’s vision. PT Nusantara Plantation estates and mills management divide into parts management area called a district. Currently there are eight district which are manage estate and mills throughout the work area in Sumatera PTPN III i.e.: - Deli Serdang 1 District - Deli Serdang II District - Simalungun District - Asahan District - Labuhan Batu I District - Labuhan Batu II District - Labuhan Batu III District - Tapanuli Selatan District
RSPO Certification Assessment Report PT Perkebunan Nusantara III – Aek Nabara Selatan
Palm Oil Mill – North Sumatera
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Aek Nabara Selatan Mill is one of mills owned by PTPN III, that is located in Aek Nabara Selatan Village, Bilah Hulu sub district, Labuhan Batu District, North Sumatera. The mill managed under Labuhan Batu I district, Aek Nabara Selatan Mill has Plantation business registration letter (No. HK.350/522/Dj.Bun.5/VII/2001) from Ministry of Agriculture on 5 July 2001 with the production capacity is 60 tonne/hour. The supply base is the 7 estates and out growers supplying to Aek Nabara Mill. The estates are Aek Nabara Selatan, Mambang Muda, Rantau Prapat, Merbau Selatan, Labuhan Haji, Bandar Selamat, and Sei Dadap Estates. Aek Nabara Mill also supplied other PTPN III owned estate which is not included in certification scope as well as supply from independent small holder.
Company Name PT Perkebunan Nusantara III ( Aek Nabara Selatan Mill)
RSPO Membership No. 1 -0030-06-000-00
Address
Jl. Sei Batang Hari No. 2, Medan, Indonesia
Aek Nabara Selatan Village, Bilah Hulu Sub District, Labuhan Batu District.
Note: *) FFB received in 2016 until February **) Since September 2014, KBDSL estate not delivered FFB to Aek Nabara POM
RSPO Certification Assessment Report PT Perkebunan Nusantara III – Aek Nabara Selatan
Palm Oil Mill – North Sumatera
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1.7 Actual production volumes and project outputs To date, the mill has not sold any CPO as RSPO certified material, as viewed from the table below. Table 3. Total and projected CPO and PK production from Aek Nabara Selatan Mill (PTPN III)
Remarks Amount
CPO (mt) PK (mt)
Certified tonnage claimed 60,573.59 11,592.00
Total product tonnage sold claimed under RSPO e-Trace - -
Certified tonnage sold claimed under Green palm * - -
Certified tonnage purchased - -
Actual OER and KER for 2015 23.12 4.36
Total production for 2015 60,302.85 11,371.99
Total Certified production for 2015 57,012.068 10,751.41
OER and KER projection for 2016** 23.89 4.56
Total FFB process projection for 2016 (mt)** 299,160.750
Total FFB certified projection for 2016 (mt)** 284,160.750
CPO certified projection production for 2016 (mt)** 67,886.00
PK certified projection production for 2016 (mt)** 12,957.73
CPO total (mt)projection for year 2016 71,455.925
PK total (mt) projection for year 2016 13,652.665
Note: *) There is no certified product sold by management accordance to management letter number 3.16/X/40/2016 dated on August 26, 2016 signed by Management.
**) budget PTPN 3 year 2016
1.8 Dates of Plantings and Replanting Cycles The company follows a replanting cycle of 25 years. Information on the dates of plantings is as per the table below.
Table 4. Age and year of plantings of company estate supplying to Aek Nabara Selatan Mill
Total 24.401,25 7.603,48 15,840.93 975.44 635,24 7,93 233,97 41,21
Note: Areal HCV include in planted area
1.10 Progress against Time Bound Plan The company has revised their time bound plan for RSPO certification of other management units as per the schedule below. The plan was revised as the company was awaiting the readiness to comply RSPO certification requirement.
Table 10. Time Bound Plan of PTPN III
Name of Holding Location
Time bound plan for
certification
Status
RSPO Certification Assessment Report PT Perkebunan Nusantara III – Aek Nabara Selatan
Palm Oil Mill – North Sumatera
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PKSMK Sei Mangke / Simalungun
August 2010 Certified
PRBTN Tebing Tinggi May 2015 In-process
PSSIL Sei Silau / Asahan May 2015 In-process
PANAS Aek Nabara / Labuhan Batu
May 2014 Certified
PSSUT Sisumut /
Labuhan Batu May 2015 Certified
PSBAR Sei Baruhur/
Labuhan Batu November
2014 Certified
PPARO Aek Raso/
Labuhan Batu June 2014 Certified
PTORA Torgamba/
Labuhan Batu June 2015 In-process
PATOR Aek Torop/
Labuhan Batu June 2014 Certified
PSDAN Sei Daun/
Labuhan Batu June 2015 Certified
PSMTI Sei Meranti/
Labuhan Batu June 2015 In-process
Hapesong Mill Tapanuli Selatan November
2016 Planned
1.11 Compliance to rules for Partial Certification
PTPN III’s compliance with partial certification rules under Clause 4.2.4 of 2007 RSPO certification system has been assessed through document check and interview in the head office and through findings of concurrent ISO: 9001 checks conducted at other management units of PTPN III. Below is summary of the findings:
Partial Certification Requirements Audit Findings
1.a The organisation is an RSPO member.
Yes, PTPN III is an RSPO member with ID No. 1-0030-06-000-00 (membership since 14 December 2006). RSPO Certification system section 4.2.4 PTPN III did not provide result of the self-assessment for all units entering estate and mill at the time bound, except those in Silau Dunia, Gunung Monako and Pulau Mandi Estates. This is raised as non conformity
1.b A time-bound plan for achieving certification of all relevant entities;
PTPN III has a time-bound plan to achieve RSPO certification for all relevant entities. However, one of the company’s development areas (Muara Upu site) located at South Tapanuli is still not included by the time-bound plan. NPP assessment for this area was carried out by Certification Body (Sucofindo) in 2012 years.
1.c. i. There are no significant land conflicts.
There are some land conflicts/ potential land conflicts ongoing in other PTPN III’s management units, such as Silau Dunia, and Si Sumut Estates. While the company has already made a conflict resolution mechanism, these conflicts remain unresolved as the mechanism is still not agreed by the land claimants.
1.c. ii. No replacement of primary forest or any area containing HCV since November 2005.
PTPN III’s development of a new planting area (Muara Upu at South Tapanuli) had been raised before as a major noncompliance by TUV Rheinland audit team, which is now closed as the company has carried out applying NPP in accordance with this clause and the progress under reviewing of Compensation Task Force. . Based on communication with PT PN III, the company still waiting for Head of District decision response, for land exchanged process since the land was included on peat moratorium area
RSPO Certification Assessment Report PT Perkebunan Nusantara III – Aek Nabara Selatan
Palm Oil Mill – North Sumatera
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Partial Certification Requirements Audit Findings
according to President of Republic Indonesia decree letter no. 6 year 2013.
1c. iii. No labour dispute that are not being resolved through an agreed process.
No labour issues were found during this surveillance audit.
1c.iv. No evidence of non-compliance with law in any of the non-certified holdings.
Some of PTPN III’s other management units have not complied with certain legal requirements. For example, in Silau Dunia Estate under another PTPN III management unit, an issue has been found with the area stated under the Right of Cultivation certificate (HGU). However, the company is taking action by inviting National Land Agency (BPN) to re-measure the land and resolve the issue. The process is still ongoing. Some legal non compliance found, it has been reported on surveillance audit report for each PTPN 3 unit.
1.12 Progress of associated smallholder or outgrowers towards RSPO compliance There is no scheme and or associated smallholder in Aek Nabara Selatan Palm Oil Mill its supply based estate. The requirement is not applied for this certification management unit.
1.13 Approximate Tonnages Certified
The approximate tonnages certified, based on projection year 2016 for company owned estates only (refer to the table above as follows: Crude Palm Oil (CPO) : 67,886.00 Palm Kernel (PK) : 12,957.73
1.14 Other Achievements and Certifications Held
Table 6: Details of other certifications or awards held by PTPN III
Name of mill / estate
Certification Standard / Award
achieved
Certification Body / Awarder
Date Achieved
Pabrik Kelapa Sawit Rambutan
ISO 9000/14000/SMK3 TÜV/Sucofindo 1998/2000/1999
Pabrik Kelapa Sawit Sei Mangke
ISO 9000/14000/SMK3 TÜV/Sucofindo 1998/2000/1999
Pabrik Kelapa Sawit Sei Silau
ISO 9000/14000/SMK3 TÜV/Sucofindo 1998/2000/1999
Pabrik Kelapa Sawit Aek Nabara Selatan
ISO 9000/14000/SMK3 TÜV/Sucofindo 1998/2000/1999
Pabrik Kelapa Sawit Sei Sumut
ISO 9000/14000/SMK3 TÜV/Sucofindo 1998/2000/1999
Pabrik Kelapa Sawit Sei Baruhur
ISO 9000/14000/SMK3 TÜV/Sucofindo 1998/2000/1999
Pabrik Kelapa Sawit Aek Torop
ISO 9000/14000/SMK3 TÜV/Sucofindo 1998/2000/1999
Pabrik Kelapa Sawit Torgamba
ISO 9000/14000/SMK3 TÜV/Sucofindo 1998/2000/1999
Pabrik Kelapa Sawit Aek Roso
ISO 9000/14000/SMK3 TÜV/Sucofindo 1998/2000/1999
Pabrik Kelapa Sawit Sei Daun
ISO 9000/14000/SMK3 TÜV/Sucofindo 1998/2000/1999
RSPO Certification Assessment Report PT Perkebunan Nusantara III – Aek Nabara Selatan
Palm Oil Mill – North Sumatera
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2.0 ASSESSMENT PROCESS 2.1 Certification Body
PT TUV Rheinland Indonesia is member of Group TÜV Rheinland Group, a global leader in independent testing and assessment services. The TÜV Rheinland Group was established in 1872 with offices located in over 490 locations in 62 countries on all five continents. PT TUV Rheinland Indonesia offers certification for a wide range of management systems according to established international standards including ISO 9001, ISO 14001, OHSAS 18001, SA 8000, as well as CDM Validations and Verifications. PT TUV Rheinland Indonesia’s office is located in Jakarta.
2.2 Qualifications of Lead Assessor and Assessment Team
The assessment team members of this surveillance audit that were part of the same assessment team for the certification audit are as follows: 1. Mhd Fundy Cholis Kurniawan 2. Mochamad Anwar 3. Ade Sudiana New assessment team members that were not part of the previous assessment team are as per the table below:
Name Position Qualifications / Experience
Mhd Fundy Cholis Kurniawan
Lead Auditor
Education: Master Degree in Natural Reseource and Environmental Management, Bogor Agriculture University Trainings attended: Environmental Impact Assessment (EIA), Ecological Risk Assessment (ERA), Internal Quality Audit Training for Quality Management System, IRQA-QMS ISO 9001:2000, IRQA-EMS 14001, High Conservation Value (HCV), RSPO Lead Auditor Course, ISPO Auditor Course, SCCS Auditor and ISCC plantation audit. Working experience: Experienced in Environmental Impact Assessment (EIA Assessment), Environmental Health Safety Senior Officer (EHS-Officer) in Wilmar International Plantation, Internal Auditor for Wilmar International Plantation, Auditor for Rountable on Sustainable Palm Oil (RSPO), Indonesian Sustainable Palm Oil (ISPO), Certification for Timber Legality Verification (SVLK) in PT TUV Rheinland Indonesia since June 2012 – present.
Aswan Hasibuan Auditor
Education: Bachelor of Industrial Engineering, University of North Sumatera. Trainings attended: ISO 9000:2000 Series Auditor / Lead Auditor Training - PE International (Jakarta), IEMA Advanced EMS Auditor (IEMA/EARA ISO 14001) Auditor / Lead Auditor Training Course - PE International (Jakarta), OHSAS 18001 Lead Auditor Training Course - PE International (Jakarta). Working experience: Experienced in Quality Control from 1994-2004. Auditor for Quality Management System since 2004 – present. Auditor for Environmental Management System since 2005 – present. Auditor for OHSAS 18001 since 2007 - present. Conducted over 100 Quality Management System audits since 2004, over 50 Environmental Management System audits since 2006 , and over 25 OHSAS audits since 2007.
Panggading Nainggolan
Auditor
Education: Bachelor of Social, Social Science and Political Institute, Jakarta. Trainings attended: RSPO in house training by Mutu Agung Lestari, ISPO training by ISPO Comission and QHSE Awareness QHSE (management system review dan integrated management system concept ISO 9001, 14001, OHSAS. Working experience: National Comission for Children Protection (Komisi Nasional Perlindungan Anak) – Public Relation and Staff Education program – Common Ground Indonesia, Reporter
RSPO Certification Assessment Report PT Perkebunan Nusantara III – Aek Nabara Selatan
Palm Oil Mill – North Sumatera
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Name Position Qualifications / Experience
on “Global Informasi Bermutu”, Producer on Netwave Multimedia, Producer on “Satu Visi Perkasa Produksi”, Project Supervisor on Surya Solusi Informasi and Auditor for ISPO & RSPO.
Mochamad Anwar
Auditor
Education: Bachelor of Agriculture, Bogor Agricultural Institute Trainings attended: Indonesian Sustainable Palm Oil (ISPO) Auditor Training, Sustainable Forest Management (Bogor, 2013). Working Experience: Trainer for community development and entrepreneurship projects and motivator for micro business entrepreneurship program since 1999, experience as expert of micro business development (1995-2006), team leader of community development program (2006-2012), program manager of corporate social rensponsibility in PT Aneka Tambang (2012) and PT Timah (2013), ISPO Auditor since 2014, SFM Auditor since 2013, Agriculture Expert for ANDAL and AMDAL since 2008.
Ade Sudiana Auditor
Education: Bachelor of Forestry, Faculty of Forestry, Bogor Agricultural University Trainings attended: Awarness training of ISO 9001, 14001 and 18001, inhouse training of ISO 19011 and ISPO, Training of Assesor for Sustainabiity Natural Forest Management (SFM) by The Indonesian Ecolabelling Institute (2008), Training of Auditor for Sustainability Forest Management By center for Educational and Training of Forestry, Department of Forestry (2010), Examination of competency for auditor of Sustainability Forest Management by Personal Certification Body-Rhino (2014), Training of Auditor For ISPO (2016) by ISPO Comission Working experience: Consultant and Trainer of : Quality Management System (ISO 9001), Environment Management System (ISO 14001), Safety Management System (SMK3/ OHSAS 18001), ISPO (Indonesian Sustainable Palm Oil), Consultant and trainer in PT FOCUS (2008-2016) ; Auditor of : Sustainability Forest Management (SFM) for Plantation and Natural Forest (2010-now), RSPO (2016-now), Auditor in PT Forestcitra Sejahtera (2008-2016), Auditor in PT TUV Rheinland Indonesia (2016-now)
2.3 Assessment Methodology & Agenda The surveillance assessment was conducted on March 28 until April 1, 2016 as per the assessment program below. The assessment was carried out in accordance with PT TUV Rheinland RSPO audit procedure as well as the RSPO Certification Systems document. During assessment, the qualified TUV Rheinland assessors used the RSPO standard as endorsed for the country in which the assessment took place and recorded their findings. Due to the location and proximity of the estates, combined with common management systems, it was possible to carry out both field and document assessments of all estates and the mill within the time frame without compromising the integrity of the assessment in anyway. All 6 estates and 1 mill are visited and the assessment team carried out field and document assessments of compliance to all the RSPO principles and criteria and RSPO Supply Chain Certification System. Common systems were identified and specific evidence was recorded for individual estates. Interviews were conducted at all estates and the mill. The company proposed the correction and corrective action for all identified non conformities raised to the certification body 15 days after the closing meeting. Verification of closure of major non-conformances was conducted 1 month after the closing meeting surveillance audit and implementation of corrective actions for minor non-conformities will be verified during the next surveillance audit. The certification assessment agenda is as explained below.
RSPO Certification Assessment Report PT Perkebunan Nusantara III – Aek Nabara Selatan
Palm Oil Mill – North Sumatera
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2.4 Surveillance Audit Agenda
March 28, 2016 Traveling to plantation site
March 29, 2016 Aek Nabara Selatan Mill
Opening Meeting Verification previous audit findings Subcontractor interview Best Manufacture Practice Environmental Issue Wage/salary Housing RSPO SCCS implementation Plant tour:
Process mill area Mill compound and perimeter Mill workshop Sedimentation pond Palm Oil Mill Effluent Treatment Ponds Chemical store Hazardous waste store
March 30, 2016 Rantau Prapat Estate
Best Practice Management, Gender Issue, wage Issue Onsite verification for previous audit findings OSH issues Waste Management Water management Emplacement facility Agrochemical storage Site visit:
Division I
Housing/emplacement
IPM
HCV area
Fertilizer acticity
March 30, 2016 Aek Nabara Selatan Estate
Document review and on site visit : Hectarage statement Boundary pillars condition IPM Fertilizing and harvesting activity Housing Chemical storage and hazardous storage Waste management HCV area Water management OHS implementation SIA implementation EIA implementation
March 31, 2016
Membang Muda Estate
Document review and on site visit : Hectarage statement Boundary pillars condition IPM Fertilizing and harvesting activity Housing Chemical storage and hazardous storage Waste management HCV area Water management OHS implementation SIA implementation EIA implementation
March 31, 2016 Merbau Selatan Estate
Social impact assessment External communication
RSPO Certification Assessment Report PT Perkebunan Nusantara III – Aek Nabara Selatan
Palm Oil Mill – North Sumatera
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Waste Management Water management Emplacement facility EIA implementation Agrochemical storage Site visit:
Chemical store
Spraying activity
Hazardous store
HCV area
Riparian buffer zone
Housing
OHS
IPM
April 1, 2016 Labuhan Haji Estate
Social impact assessment External communication Waste Management Water management Emplacement facility EIA implementation Agrochemical storage Site visit:
Chemical store
Spraying activity
Hazardous store
HCV area
Riparian buffer zone
Housing
OHS
IPM
April 1, 2016 Bandar Selamat Estate
Document review and on site visit :
Hectarage statement
Boundary pillars condition
IPM
Fertilizing and harvesting activity
Housing
Chemical storage and hazardous storage
Waste management
HCV area
Water management
OHS implementation
SIA implementation
EIA implementation
Traveling to Head Office
Preparation for Closing Meeting Closing Meeting
2.5 Date of Next Surveillance Visit The next surveillance visit is planned for 2017
RSPO Certification Assessment Report PT Perkebunan Nusantara III – Aek Nabara Selatan
Palm Oil Mill – North Sumatera
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3.0 ASSESSMENT FINDINGS 3.1 Summary of Findings
The following is a summary of findings made for the criteria listed in the Generic RSPO Principles & Criteria, presented below:
Principle 1. Commitment to transparency
Criteria assessed: CR1.1, CR1.2, CR1.3 Criteria not assessed: - Findings: CR1.1 Based on the verification of documents found that there is a list of stakeholders, consisting of: shareholders, employees, customers, suppliers, investors, creditors and banks, competitors, auditor, local communities, the partners and the environment, the media, NGOs and community organizations, unions, legislators, business partners strategic, universities and research institutions, and its subsidiaries. There is a circular from the Board of Directors of the Company Data Publication No. 3.00/SE/DI/2015,isued on April 8, 2015, mentions a company's data can and can’t be published, area follow:
a. Documents can be published to the public are: - Documents related to the environmental and social impact assessment (EIA / UKL-UPL
and environmental management and monitoring reports (RKL-RPL). - Documentation of social activities and community programs. - Certificates HGU (HGU). - Occupational health and safety plan - Documentation of HCV - Details of complaints and grievances - Document labor - Negotiation Procedure
- Plan for continuous improvement - A public summary certification assessment report; - Human Rights Policy
b. Documents which can not be released publicly, among others: - Document marketing strategies - Document business strategy
c. Mechanisms for incoming requests of information and how respon of requested has been described in:
- The procedures for communication and consultation with stakeholders No. PK-3.00-03 Revision 01 dated 23.09.2013
- Work Instruction Provision of Data for External No.IK-3.00-16/01. Requests for information made by stakeholders in factories and plantations are recorded in a single document together with other requests or letters received from stakeholders, as required by company procedures.
The recordings as seen from the log book company with a holding period of 5 years. Aek Nabara Selatan Estate has record of logbook for record every incoming and response letter for 2015 and 2016. The logbook showed the date of incoming letter, letter number, letter origin, and other information related. In 2015, majority incoming letter related the bantuan dana, izin perlintasan. All of letter was responsed properly by related person. Estate has update their stakeholders for 2016, has been identified 47 stakeholders. Membang Muda Estate has procedure document number PK-3.00-03 Rev02 revised 01/12/2015 aout stakeholders communication and consultation. Procedures has established the mechanism for information request response from email, letter, memo, news paper and others request information from all stakeholders. But the procedure not sett about time limit for updating stakeholders list. This is raised as a nonconformity (NCR-RSPO00176). Based on logbook record for 2015, majority incoming letter related for pengajuan bantuan dan dana bantuan kredit, and company has followed the letter to meneruskan surat permohonan tersebut ke District Office, then next to Kantor Direksi to decission. Estate has carried out the new update list stakeholders for 2015, and there area 28 stakholders identified.
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Palm Oil Mill – North Sumatera
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CR1.2 Aek Nabara Selatan Estate and Membang Muda Estate has record of document letter (Surat Edaran) number 3.00/SE/01/2015 dated on April 8, 2015, this letter mentioned 28 document will available for public, but for public summary assessment report and continual improvement plans. This raised as a nonconformity (NCR-RSPO00177). CR1.3 Aek Nabara Selatan Estate has record of code of ethical conduct brief and communicate to all workers level carried out in March 28, 2015. For Membag Muda Estate carried out on April 24, 2015. Code of ethical conduct book edision III also available on the estate. Especially for contractor workers, estate also has been ensure the subcontractor workers understood and knowed the code of ethical conduct based on brief letter ivitation number KANAS/X/70/2016 carried out on March 31, 2016. For Membang Muda Estate, code of ethical conduct has been brief to subcontractor workers evidenced by attendant list dated on April 1, 2016 attendant by 79 person from all of contractors workers. While in Labuhan Haji Estate, there is no evidence that the code of ethical conduct has been communicate to the third party (contractor). This raised as a nonconformity (NCR-RSPO00178). Compliance status: Non Compliance NCR-RSPO00176 Procedure number PK-3.00-03 Rev 02 about stakeholder communication and consultation not set about time limit to updating stakeholder list. NCR-RSPO00177 Letter number SE 3.00/SE/01/2015 issued on April 08, 2015 mentioned about publically available document in PANAS Palm Oil Mill and supply based, but this letter still not covered minimum publically available document as required by RSPO P&C. NCR-RSPO00178 There is no evidence that the code of ethical conduct document has been communicate to the third party.
Principle 2. Compliance with applicable laws and regulations
Criteria assessed: CR2.1, CR2.2, CR2.3, Criteria not assessed: Findings: CR2.1 Aek Nabara Selatan Estate has evidenced of law and legal requirement compliance, example: - Aek Nabara Selatan Estate has record of soil analysis for land application, based on record of soil
analysis result number 015-1/T/BINA/IV/2015 certificate date April 27, 2015, sampled from land application area, land between land application and land control for land application. Environmental Ministry decree number 28/2003.
- Water analysis for weel controlled for land application with certificate result number 309/VI/2015; 316/VI/2015; 317/VI/2015, accordance to Environmental Ministry decree number 28/2003.
On the other hand, company has adjusted the minimum wage payment for employees in 2016 in in accordance with Directors Decree No. 3.08/SKPTS/R/20/2015 dated 19/01/2016 on Employee Salary Increase PTPN III in accordance with the North Sumatera Governor's Decree No. 188.44 / 544 / KPTS / 2015 dated November 7, 2015 on Minimum Wage North Sumatra 2016, IDR 1,811,875. Staff and workers receive salary payment receipts (monthly pay slips) in a timely manner. Management staffs are paid through bank transfer, while workers are paid in cash, Example: Joko Suprianto (harvester KRPPT), category 1A/0, basic salary and allowances (IDR 1.811.875). Company has several reporting periodically records, addreesed to related official government, such as:
1. For Aek Nabara Selatan Palm Oil Mill: - Manpower report year 2015 to Manpower and Transmigration Office of South Labuhan Batu
District dated 28 March 2016. - OHS Committee reports 4st period No. PANAS/DISNAKER/SP/04/2015 to Manpower and
Transmigration Office of South Labuhan Batu District dated 22/12/ 2015 2. Rantau Prapat Estate:
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- Plantation Business Development report No.KRPPT/Disbun/01/2016 Estate Official Government of Labuhan Batu dated 10/03/2016.
- OHS Committee reports 1st period to Manpower and Transmigration Office of Labuhan Batu District dated 29/02/2016.
- Manpower report year 2015 to Manpower and Transmigration Office of Labuhan Batu District dated 31/03/2016.
3. Merbau Selatan Estate: - Manpower report year 2015 to Manpower and Transmigration Office of North Labuhan Batu
District dated 19/05/2015. - Plantation/ Business Development No. KMSTN/X/03/2016 to Estate Official Government of
North Labuhan Batu District dated 13/01/2016. - OHS Committee report to Manpower and Transmigration Office of North Labuhan Batu
District No. KMSTN/X/03/2016 dated 15/01/2016. 4. Labuhan Haji Estate:
- Manpower report 4th period year 2015 No. KLAJI/X/SP.14/2016 to Manpower and Transmigration Office of North Labuhan Batu District dated 26/03/2016.
- OHS Committee reports 4st period No. KLAJI/X/SP.14/2016 to Manpower and Transmigration Office of North Labuhan Batu District date 29/03/2015.
CR2.2 Aek Nabara Selatan Estate has showed they land use rights based on land use rights certificate number No.13/N.3 Aek Nabara, with total area 11,026.99 Ha based on land use rights decree number 116/HGU/BPN/2005, this land use rights valid until 22/12/2040 issued on January 22, 2008 by Head of Regional Land Agency of Labuhan Batu District. This estate consist of 9 division (afdeling), total planted area was 7201.88 Ha, with year of planting from the oldest planting was in 1999, then the youngest planting was 2011. This youngest planting was from re-planting process, not new planting. Based on hectarage statement 2016, planted area + others land used by estate still compliance with land use rights, when total areal used was 7312.68 Ha. Based in hectarage statement and on-site visit verification, planted area was comply with the legal land use rights. Aek Nabara Selatan Estate has record map of boundary pillars and record of boundary pillar maintenance, i.e.: boundary pillars monitoring report carried out in June 2015, and December 2015. Based on monitoring report identified 156 unit, with 155 unit in good condition and 1 unit missed. For this condition (boundary pillars missed) estate was follow up by reported to the estate manager then to District Manager. Estate has procedure for monitoring and maintaining boundary pillars document number PK-3.11-10 Rev 00, monitoring and maintaining will carry out in every six month and reported to the estate manager. Membang Muda Estate has showed they land use rights based on land use rights certificate number No.12/PERKEBUNAN MEMBANG MUDA with total area was 2,624.19 Ha based on land use rights decree number 119/HGU/BPN/2005, this land use rights valid until 22/12/2040 issued on January 22, 2008 by Head of Regional Land Agency of Labuhan Batu District. This estate consist of 5 division (afdeling), with palm oil and rubber combined commoditie. Total palm oil planted was 1,298.81 Ha with year of planting from the oldest was in 1990, and the youngest planting was in 2004, and rubber planted was 1,394.60 Ha. Membang Muda Estate has record map of boundary pillars and record of boundary pillar maintenance, i.e.: boundary pillars monitoring report carried out in December 2015. Based on monitoring record was identified 150 unit with 2 found was broken, and the others in good condition. Bandar Selamat Estate, during 2nd surveillance audit, this estate was not delivered FFB to the Aek Nabara Palm Oil Mill since 2015 until this year 2016, this is becuase distance and economic reason. This estate has showed they land use rights based on land use rights certificate number No.17/BANDAR SELAMAT with total area was 3,651.40 Ha based on land use rights decree number 21/HGU/BPN/2006, valid until 28/08/2043 issued on August 29, 2008 by Head of Regional Land Agency of Labuhan Batu District. This estate consist of 6 division (afdeling), with palm oil commodite planted was 3,570.34 Ha, when the oldest year of planting in 2000 and the youngest planting was in 2015. Total land used by Bandar Selamat estate based on hectaraga statement for 2016 was 3,651.40 Ha. CR2.3 No specific traditional tenure rights have been found in all PTPN III estates as the plantation has already existed before the surrounding community’s settlement. According to information stated in Social Impact Assessment (SIA) conducted with the local community’s participation, following two types of non-tenure traditional activities has been identified as relevant to the local community’s in the seven estates:
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Palm Oil Mill – North Sumatera
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- Traditional logging for subsistence purposes; and - Cattle grazing.
In addition to these activities, there are also sites sacred to local community such as cemeteries and water sources. These cemeteries hold remains of those whose families no longer inhabit the estate area. The community uses the water sources during dry season when wells or rivers run dry. The estate management is aware of the presence of such areas/sites, thus supports their maintenance and activities using them, despite the areas’ land status belonging to PT PN III. Available situation map of Marbau Selatan Estate according to land use rights decree number SK HGU No. 118 / HGU / BPN / 2005 December 23, 2005. Land Use Right (HGU) No. 09 covering an area of 1613.02 Ha January 22, 2008 (valid until 12/22/2040), Land Use Right (HGU) No. 10 covering an area of 1580.65 ha January 22, 2008 (valid until 12/22/2040). However map the area 99.88 hectares (the addition of expansion), which is still in the process of publishing in the Land Agency Office. Constatering Report (Panitia B) on 19 November 2014. The land owners and affected parties know that there is a land dispute resolution mechanisms through deliberation (musyawarah). There is available copies of negotiated agreements detailing the process of free, prior and informed consent (FPIC): a. Minutes of meeting between claim areas Resolution Team (PTPN III) by Farmers Group Suka Damai
June 14, 2009 with the conclusion that the board of Farmers Group Suka Damai ready to surrender the claim area of 99.88 hectares in AFD I with an agreement to receive compensation money.
b. Minutes of compensation dated March 11, 2010 and on behalf (SP) Group including 55 members and on behalf Suwandi Bin Paimin including 23 members.
c. Examples of individual compensation payments on behalf (SP) Several records have been found on agreements negotiated between the traditional landowners and estate management supplemented with appropriately scaled maps. For example, (i) negotiation on grazing location map in Mambang Muda Estate being agreement made by and between the villagers and the estate manager on 4 October 2011; and (ii) agreement between Bandar Selamat Estate Manager and heads of village surrounding the company’s location, Songsongan, Police Officer, and youth leader made on 10 January 2011. There is a map of traditional activities in each agreement, informing location of the cattle grazing area agreed by the community inhabiting the concession. Copies of negotiated agreements detailing process of making such consent are available in the estate offices, such as Aek Nabara Selatan, Bandar Selamat and Mambang Muda estate offices. Copy of specific situation map and land area (Peta Bidang Tanah atau Situasi Khusus) for area 158.22 should available in Merbau Selatan estate. Compliance status: Full Compliance
Principle 3. Commitment to long-term economic and financial viability
Criteria assessed: CR3.1 Criteria not assessed: - Findings: Aek Nabara Selatan Mill has record of long term economic and production projection for 5 years from 2015 until 2020. The document showed the FFB, CPO and PK projection, also OER and KER. Then, budget also showed the cost production process estimation, forcast prices and financial indicators. Total FFB will recieved until 2020 from certified estate (scope audit) about 289,418.360 mt, with CPO certified projection about 69,650.290 mt and PK about 13,227.943 mt. Total FFB will received until 2020 from certified and uncertified about 304,418.360 mt, with CPO projection about 72,725.290 mt and PK about 13,902.943 mt. OER from 2015 until 2020 about 23.89% and KER about 4.57%. this rendement apply for certified and uncertified process. Aek Nabara Selatan Estate has document of budget record/long term economic financial viability for production projection and production cost. Based on budget for 5 years (2015 – 2019), this estate was estimated the FFB projection, i.e.:
- For 2016, FFB projection about 192,028.850 mt - For 2017, FFB projection about 192,341.690 mt - For 2018, FFB projection about 196,059.220 mt
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Palm Oil Mill – North Sumatera
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- For 2019, FFB projection about 194,969.730 mt Budget also showed the projected the replanting plan about 13.80 Ha, when the replanting plan will carry out in 2016, becuase the management still considered the economic value from the oldest planted, plan for replanting was delayed until top management issued the new memo for replanting process. Membang Muda Estate has document of budget record/long term economic financial viability for production projection and production cost. Based on budget for 5 years (2015 – 2019), this estate was estimated the FFB projection, i.e.:
- For 2016, FFB projection about 25,580.540 mt - For 2017, FFB projection about 22,210.100 mt - For 2018, FFB projection about 21,070.380 mt - For 2019, FFB projection about 18,756.970 mt
Budget also showed the projected the replanting plan about 411.85 Ha, when the replanting plan will carry out in 2016, becuase the management still considered the economic value from the oldest planted, plan for replanting was delayed until top management issued the new memo for replanting process. Merbau Selatan Estate has document of budget record/long term economic financial viability for production projection and production cost. Based on budget for 5 years (2015 – 2019), this estate was estimated the FFB projection, i.e.:
- For 2016, FFB projection about 3,205.980 mt - For 2017, FFB projection about 3,217.002 mt - For 2018, FFB projection about 3,228.067 mt - For 2019, FFB projection about 3,239.174 mt
Budget also showed the projected the replanting plan about, when the replanting plan will carry out in 2016, becuase the management still considered the economic value from the oldest planted, plan for replanting was delayed until top management issued the new memo for replanting process. Rantau Prapat Estate has document of budget record/long term economic financial viability for production projection and production cost. Based on budget for 5 years (2015 – 2019), this estate was estimated the FFB projection, i.e.:
- For 2016, FFB projection about 18,767.172 mt - For 2017, FFB projection about 18,962.283 mt - For 2018, FFB projection about 18,431.536 mt - For 2019, FFB projection about 18,893.254 mt
Budget also showed the projected the replanting plan about 864.37 Ha, when the replanting plan will carry out in 2016, becuase the management still considered the economic value from the oldest planted, plan for replanting was delayed until top management issued the new memo for replanting process. Bandar Selamat Estate has document of budget record/long term economic financial viability for production projection and production cost. Based on budget for 5 years (2016 – 2019), this estate was estimated the FFB projection, i.e.:
- For 2016, FFB projection about 96,685.000 mt - For 2017, FFB projection about 98,135.275 mt - For 2018, FFB projection about 99,607.304 mt - For 2019, FFB projection about 101,113.414 mt - For 2020, FFB projection about 102,630.115 mt
Budget also showed the projected the replanting plan, but for this estate there is no replanting program for 5 years because the YoP still in productive. Compliance status: Full Compliance
Principle 4. Use of appropriate best practices by growers and millers
Criteria assessed: CR4.1, CR4.2, CR4.3, CR4.4, CR4.5, CR4.6, CR4.7, CR4.8 Criteria not assessed: - Findings: CR4.1 All estate and Aek Nabara Mill provided the SOP’s with work instructions for all estate activities including land clearing, replanting, manuring, spraying, harvesting, chemical handling, waste management, OHS
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Palm Oil Mill – North Sumatera
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procedure, pest management system, soil conservation, incoming FFB receiving process, grading process in loading ramp, third party identification process, FFB process in sterilizer, kernel station, boiler operation, product quality standard, storage process, dispatch and others. All copy of procedure’s and work instruction are documented and available in place in an local language. Evidence has found as to procedure and work instructions implementation, example in Labuhan Haji estate, where the tissue sampling is implemented. They are done based on the company’s work instruction for tissue sampling number IK-3.01-01/04. Also the harvester in division I, understood the harvest requirement and process according to the work instruction number IK-3-05/10. Estate and mill has master list of their procedure and work instruction in document business process, work procedure and work instructions document. To ensure the procedure and work instruction evaluation implementation, company carried out internal audit to evaluate that. Last evaluation carried out on February 2016. While the internal audit report covered about FFB production record, productivity, fertilizer realization and program, payment salary, amount of foreman, inventory records, chemical used record, finance, and others. Aek Nabara Selatan Mill has procedure for coaching and management out grower supplyer with document number PK-3.03-09 Rev 00. This procedure has explained about who responsible for out grower identification, monitoring process, outgrowers coaching, carry out the outgrowers verification every year. Procedure also mentioned, all mechanism above should be compliance with RSPO principle and criteria and National Regulation. Mill has record of name list of outgrowers, for 2015 until April 2016, i.e.:
- CV. Abang Adik; total area was 490 Ha, consist of 32 person
- UD. Naga Tutur; total area was 1,038 Ha, consist of 6 person
- UD. Gue; total area was 840 Ha, consist of 7 person plus 1 person for ramp area
- UD. Usaha Bersama; total area was 5,200 Ha, consist of 8 person
- CV. Sayang; total area was 795 Ha, consist of 6 person
- UD. Ula Tersia; total area was 2,333 Ha, consist of 10 person plus 1 cooperative
- UD. Mekar; total area was 1,263 Ha, consist of 8 person, in 2016 was not delivered again
- UD. Beny Siregar; total area was 949 Ha, consist of 7 person, in 2016 was not delivered again
- UD. Mas Yin; total area was 895 Ha, consist of 6 person, in 2016 was not delivered again Based on interview with mill manager, they have been the outgrowers verification, example for UD. Usaha Bersama. This outgrowers has total area was 5,200 Ha, with 3 person have a big area, on behalf Makmur Siregar (1000 Ha), Amat Siregar (1000 Ha), and Gani (1,500 Ha). Procedure number PK-3.03-09 Rev 00 page 1 sub number 7.1.1 mentioned mill manager will carry out the outgrowers identification based on FFB amount will supply and sustainable FFB, then page 3 sub number 7.4.3 mentioned verification carry out by sampling based on the biggest FFB supplyer. But, based on verification record number 04/2015 dated on March 27, 2015, sampling not carried out accordance to the SPO and Mill also can’t showed the land legality of out growers supplyed to the mill. This is raised as a nonconformance (NCR-RSPO00180). Mill has record of daily summary and recapitulation in to montlhy summary of FFB incoming from outgrowers for 2015 in production record. Based on production record fro 2015, the largest outgrowers supplyed to the mill presented below:
No. Supplyer name FFB delivery to the mill (mt)
1. May’Sin 1,595.780
2. UD. Naga Tutur 2,567.170
3. CV. Abang Adik 408.810
4. UD. Usaha Bersama 3,495.410
5. UD. Mekar 1,524.380
6. UD. Gue 3,947.180
7. UD. Beny Siregar 16.230
CR4.2 During the 2nd surveillance audit, company has work instruction for soil fertility, example fertilizing with document number IK-3.01-03/16 Rev00 about palm oil fertilizing activity. Work instruction has sett that the fertilizing activity will carry out in every six month. Then estate alos has work instruction for EFB application with document number IK-3.01-03/19 Rev00, this work instruction has sett the EFB dosage and application technique, with application dosage was 40 – 50 tonnage for mature tree and 10 – 15 tonnage for immature tree with 1 layer application. Then for fertilizing dosage assigned by foliar sampling (soil and leaf analysis).
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Palm Oil Mill – North Sumatera
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Based on fertilizing record activity in December 2015 for Aek Nabara Selatan Estate, fertilizer applied was compliance with fertilizer recommendation, example in fertilizing activity in Semester I and II, realization for all fertilizer type was compliance with fertilizer recommendation, and the dosage per tree also compliance with percentage realization about 99.98% from the plan. Record of foliar sampling (leaf analysis) also available on the estate carried out September – October 2015, with certificate number 1340/0.1/Sert/X/2015, with 286 sampled. Issued by Indonesian Oil Palm Research Institute. Estate has procedure for soil and leaf analysis document number IK-3.01-01/04 Rev00, mentioned the leaf analysis will carry out in every one year, and soil analysis carry out in every 5 year. The latest soil analysis carried out in 2014 Indonesian Oil Palm Research Institute with certificate number 376/0.1/Sert/IV/2014 with 11 sampled. Estate also has record of fertilizer usage per tonnage FFB production for 2015 per fertilizer type, i.e.:
- NPK fertilizer 918 kg/Ha or 0.04 kg/tonnage FFB
- Dolomite fertilizer 333 kg/Ha or 0.01 kg/tonnage FFB Record of EFB application also available for 2015, total EFB application was 38,117.120 kg. Land application record for this estate also available, example in January 2016, total POME was applied about 11,140 m3 in field number Q14,-15, R15, R14, S14, S13, S15, O17, O16, P16, P17 and Q17. Membang Muda Estate has record of soil fertility maintainance for 2015. Fertilizer record application for 2015 showed total fertilizer application was compliance with fertilizer plan and dosage recommendation for 2015. Fertilizer application carried out in every 6 month (two periode in one year). Periode II, total tree plan for fertilizer application was 102,762, then total tree was applied fertilizer about 100,722, with total fertilizer application NPK.15.12.22+05TE was 287,604 kg with Ha application was 749.95 Ha, Dolomite fertilizer was applied to 756.45 Ha with dolomite application about 113,949 kg. Record fertilizer usage per tonnage FFB production for 2015 per fertilizer type, i.e.:
- NPK fertilizer total application was 650,702 kg or 21.19 kg/tonnage FFB
- Dolomite fertilzer total application was 256,309 kg or 8.35 kg/tonnage FFB There is no land application and EFB application or other organic fertilizer has been applied in Membang Muda Estate, because the distance of this estate from mill not possible for that. Record of foliar sampling (leaf and soil analysis) available on the estate. Record of leaf analysis carried out in 2014 for fertilizer recommendation in 2015, based on leaf analysis certificate result number 1191/0.1/Sert/IX/2015, sampled from August 14 – 03 September 2015, issed by Indonesian Oil Palm Research Institute. Then, soil analysis carried out in February 2014 issued by Indonesian Palm Oil Research Isntitute, with certificate result number 383/0.1/Sert/IV/2014. Bandar Selamat Estate has record foliar sampling (soil and analysis) for 2015, issued by Indonesian Oil Palm Research Institute, based on certificate result for soil sampling number 385/0.1/Sert/IX/2015 and certificate result for leaf analysis number 1224/0.1/Sert/IX/2015. Record of fertilizer used for 2015 available on the estate for every type of fertilizer, example in periode II, from July – December, total area was applied for NPK was 3,570.34 Ha with 542,015 kg NPK. Accordance to the fertilizer recommendation for 2015, dosage application was meet with realization. Record fertilizer usege per tonnage FFB also available on the estate example for NPK fertilizer was 0.03 per tonnage FFB in once year, and 0.01 per tonnage FFB for Dolomite fertilzer in once year. There is no land application and EFB application or other organic fertilizer has been applied in Bandar Selamat Estate, because the distance of this estate from Aek Nabara Selatan Palm Oil mill not possible for that. CR4.3 During 2nd surveillance audit, there is no marginal soil in Aek Nabara Selatan Estate. This estate located in 41 asl, with slope area between 0 – 45o. Total area the highes slope was about 320.90 Ha (4.38%) from total land use rights. This location located in division 8, example in field number FF25. Terracing methode was applied for this location by estate. Based on soil map, there is no peat soil in Aek Nabara Selatan Estate. Road maintainance for Aek Nabara Selatan Estate also available for 2015, example in division 3, total plan for road maintainance carried out was 3000 meters in February 2016. Road maintenance map also available. Then for division 8, road mainatainance prorgam and realization also available for January 2016, based on road maintainance map, was carried out 2500 meter. Based on HCV assessment report, there is no marginal soil in Membang Muda Estate. Estate slope was between 0 – 25%, with majority slope between 0 – 8%. Membang Muda Estate has record of road maintenanced for 2015, example for division IV in December 2015, total road maintenance was 3,600 meter from field number G16; G15; H14; I14; I13; G14; G13; I10. I11. Roard maintenance record for others division also available.
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Based on HCV assessment report, there is no marginal soil in Bandar Selamat Estate. Estate slope was between 0 – 8% majority, and for hilly area was conserved by estate. Record of road maintenanced for all division also available, example in February 2016, has been realized 3,625 meter for production road in division I and 4,850 meter for main road in division II. CR4.4 Mill and estate has record of water quality management for surface water and ground water. Each estate has water source from river. Such as Merbau, Labuhan Haji and Rantau Prapat estate also Aek Nabar Mill they has record of water used and water management protection. In Labuhan Haji estate, total water used in 2015 about 4,233 m3 for domestic water usage; while in Merbau estate was 1,757 m3 in December 2015. Record of water quality analysis also available in the estate, such as record of water quality analysis dated on January 18, 2016, carried out by Bogor Agriculture University Laboratory, certificate number 2402/LL-PPLH-IPB/12/2015. All of water quality parameter was compliance with regulation. CR4.5
Aek Nabara Selatan Estate, has record for IPM implementation and program for 2015. Based on monthly reporting in December 2015, there is no medium – high identification attacked from catterpilar, bag worm and rat for all divisions. Only low attakced identified in division 7, with attacked percentage was 0.07%. Estate has appointed person in charge for IPM accordance to Estate Manager decree number KANAS/SKPTS/05/2016, based on decree, person in charge responsible for IPM adalah sebanyak 1 orang setiap division. Training record for IPM person in charge has provided and carried out by the estate on February 8, 2016 based on intern memo number KANAS/INT/33/2016. Training record evidenced was attendandlist and training material, training was attendand by 31 person from all division. Procedure for IPM available in the estate, i.e. work instruction number IK-3.01-03/12 Rev 00 about IPM control for palm oil. There is no revised this work instruction from the last surveillance audit. Membang Muda Estate, has record for IPM implementation oand program for 2015. Based on monthly reporting in December 2015, there is no low - medium – high identtification attacked from catterpilars, bagworms, and rat for all devisions. But, found low attecked level from Ganoderma in division III with level attacked was 0.04 percentage. Estate has appointed person in charge for IPM implementation thorugh letter number KMMDA/SKPTS/03/2015, adalah sebanyak 1 orang setiap division. Traning record for IPM person in charge has carried out on March 14, 2015 attendad by 31 person from all division include IPM person in charge. Bandar Selamat Estate, has record of IPM management plan for 2015 and 2016. Record IPM program realization for 2015 also available. IPM realization census record for periode II, 2015, showed the level attacked condition, when the level attacked condition was medium level in division I, II, V. For this condition estate still not use the chemical handling, they still used beneficial plant for handling and carried out intensive census routine to ensure the attacked level. Record of beneficial plant application for this estate also available for 2015 example. Based on record beneficial plant for April – June 2015, has maintained 300 tree or 1.58 Ha of Antigonon leptopus. CR 4.6 The company has record of pesticide used and registered pesticide accordance to local regulation. In Merbau estate, all of pesticides area registered and permitted used by recommendation letter number 560/304/DSTK/2016, issued by Labour Official Government of Labuhan Batu district, accordance to the letter there are 19 kind of pesticides are registered and permitted to usage in Merbau estate. While in Labuhan Haji estate they also has recommendation letter for chemical usage issued by Labour Official Government of Labuhan Batu district number 430/04/DSTKT-4/2016, then for Rantau Prapat estate recommendation letter of chemical used with letter number 560/08/DSTKT-4/2016 also issued by Labour Official Government of Labuhan Batu district. This licensed mentioned that the company should carry out the periodically medical check every six month, then during sampling verification in Membang Muda estate, there is no record of medical check already done by company. This is raised as non-conformance (NCR-RSPO00182).
The company have a pesticide application program. Rantau Parapat estate keep and maintain records of pesticides use (including active ingredients used and their LD50, area treated, amount of active ingredients applied per ha and number of applications). Data of usage pesticides balance year of 2015:
- Sida Up 490 SL, amount 1684,42 kg (active ingredient: Isopropil amina glifosat, 685 gr/liter). LD 50 Oral Rate: 5,6 Mg/ha and LD 50 Human: 392 gram/person
- Ally 20 WDG 6,64 Kg, (active ingredient, Metil metsulfuron, active ingredient, 4.50, g/liter). Based on the record of the use of pesticides in 2015, Labuhan Haji, Merbau and Rantau Prapat estate no longer uses type of pesticides paraquat, and based on physical verification of
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inventory in pesticide store, there is evidence that pesticide container back to pesticide store before sent to temporary hazardous waste store. Rantau Prapat, Merbau and Labuhan Haji estate has SOP for chemicals/pestisida handling, i.e.: IK. 03-01-02/01 for Pesticides handling. There is evidence trianing record for workers who apply for handle pesticides: Socialization handling of chemicals of Rantau prapat estate carried out in date February 17, 2016, 15 participants. During audit, no spraying activity in Rantau Prapat estate. While in Merbau chemical handling training carried out in February 27, 2016 and attendant by 15 participants, but there is no record chemical handling in Labuhan Haji estate was carried out. This is raised as non-conformance (NCR-RSPO00181). All estate has work instruction for pesticides storage with document number IK.301-03/14. Accordance to the document, all chemical container should keep in hazardous temporary storage, the deliver to authorized collector.
CR4.7 The company has defined Health and Safety policy as include in corporate policy to prevent and to avoid working accident and work illness. This policy sign by corporate president director. OHS plan defined in company integrated management system manual. This document integrated in document manual management system of PT PN III. The mill already certified in safety and occupational health management system by certification body, while the certificate valid until April 22, 2016, and the last OHS audit conducted on April 18, 2016. But during the field audit, there is no safety induction carried out by OHS person in charge also, there is no safety signboard in work station such as clarification process, powerhouse and others. This is raised as non-conformance (NCR-RSPO00183). Then, also found some workers on duty in loading ramp and boiler area didn’t used PPE as a mentioned in PPE matrix. This is raised as non-conformance (NCR-RSPO00184). Risk assessment document available for all activities for all operation in mill area. Since FFB receiving process in loading ramp area, sterilizer, threshing, pressing, clarification, storage, shipment, maintenance and technical, security, and others. There are caution for any dangerous in mill area are available. Responsible person for health safety assigned to Mr. Rizky Waludin Kaban, as secretary of OHS committee. However need to proof that he has certified as General Safety Expert regular meeting regarding Health, Safety and Welfare. The last safety meeting carried out in January 27, 2016 while agenda covered about safety and management system. First aid training and certification of first aider conducted on September 16, 2015. All estate also has OHS committee. This OHS committee has meeting on February 02, 2016. Record of risk assessment document also available in this place. Risk assessment covered all activities in estate such as replanting, palm oil planting, spraying, fertilizer, maintenance, road maintenance, housing, office, heavy equipment use, and others activity. CR4.8 Aek Nabara Selatan Estate has training program plan for 2016, example for harvesters training, production clark, harvester foreman, IPM officer, and others based on training needs identification for 2016 number KANAS/MO/371/2015, dated on June 15, 2015. Training record implementation for 2015 also available in the estate. Example record of training evaluation for harvesters, carried out in June 18, 2015. Bandar Selamat Estate has training program plan for 2016, example for harvesting, internal quality audit, emergency response, waste management, IPM training, HCV training, PPE training and others. For 2015, estate has record of training realization, example emergency response carried out in division III dated on May 22, 2015, attendand by 30 person, this training complete by training material, attendand list and training photograph. Fertilizing training carried out in June 10, 2015 attendant by 36 person, complete by training evaluated result and training material. HCV training carried out on June 09, 2015 attendand by 24 person in charge for HCV monitoring, complete with training material and photograph. IPM training record for person incharge for IPM implementation carried out in May 19, 2015 in division II attendand by 25 person and complete with training evaluated result and training material. Compliance status: Non Compliance NCR-RSPO00180 Based on document verification for FFB supplied from third party on March 27, 2015, sampling method carried out was not compliance with company procedure. NCR-RSPO00181 There is no record of chemical handling training has been carried out in Labuhan Haji estate.
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Palm Oil Mill – North Sumatera
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NCR-RSPO00182 There is no periodically medical check record for Membang Muda estate already done by company as a mentioned in decree letter of chemical license for company. NCR-RSPO00183 During the field assessment in mill, there is no safety induction for visitor (auditor) before field assessment started, and also there is no safety signboard in clarification and powerhouse work area. NCR-RSPO00184 Found some workers in work area in mill they didn’t used PPE during on duty.
Principle 5. Environmental responsibility and conservation of natural resources and biodiversity
Criteria assessed: CR5.1, CR5.2, CR5.3, CR5.4, CR5.5, CR5.6 Criteria not assessed: - Findings: CR5.1 Aek Nabara Selatan Estate has environmental permit based on decree of Head of Labuhan Batu District number 503.660/268/BLH-LB/2015, issued on 19/08/2015. Estate has carried out the environmental periodically report to the Environmental Head Agency of Labuhan Batu Distict. Based on environmetal monitoring record for 2015 semester II, there is no evidenced that the erossion control monitoring not yet carried out by the estate. This is raised as a nonconformity (NCR....). move to 2.1 Rocord of environmental measurement was available, such as:
- Air ambient based on certificate result number 131-1/UA/BINA/XI/2015, accordance to Governement Regulation number 41/1999, all the paramters was complie to the regulation. Sampled was carried out on October 26 – 31, 2015.
- Monitoring weel number 1, based on ceritifcate result number 226/XII/2015, sampled carried out on November 25 – December 21, 2015. Accordance to Decree of Ministry of Environmental number 28/2003. All the paramaters result was compliance and under than standard.
- Monitoring weel number 2, based on ceritifcate result number 227/XII/2015, sampled carried out on November 25 – December 21, 2015. Accordance to Decree of Ministry of Environmental number 28/2003. All the paramaters result was compliance and under than standard.
- Public weel, based on certificate result number 202/XII/2015 sampled carried out on November 25 – December 21, 2015. Accordance to Decree of Ministry of Health number 416/Menkes/Per/IX/1990. All the paramaters result was compliance and under than standard.
Because the environmental permit is a new revised in 2015, so estate will have prepare the monitoring protocol related to evaluate and mitigate the environmental impact for next surveillance. Membang Muda Estate has Environmental Management and Monitoring document (UKL-UPL) and has been approved by Head of Environmental Agency of Labuhan Batu by decree letter number 660/383/BLH-03/2011 dated on December 15, 2011. Estate has carried out periodically reporting in every six month to the Environmental Agency of Labuhan Batu in 2015 for periode I and II based on letter number DLAB3/X/2016 on February 2016, and was accepted by Environmental Agency Office on February 29, 2016. In the periode II, report has complete by all measurement of environmental paramaters as a required by matrix of management and monitoring document. Example:
- Certificate of air ambient measurement number 147-1/UA/BINA/XI/2015 sampled on November 2-6, 2015 accordance to Government Regulation number 41/1999, and all environmental parameters was compliance with regulation.
- Quisionare for social aspect measurement carried out in December 5, 2015 by interview stakeholders method.
- And others. Bandar Selamat Estate has Environmental Evaluated Study carried out in 1993, and Management and Monitoring plan document revised in 2009 because there was conversion commoditie from rubber to palm oil. This document has been approved by Environmental Head Agency of Asahan District number 660.1/285/LH/2009 dated on April 29, 2009 covered for total land use rights (HGU). Estate has carried periodically monitoring in two periode. Example for periode II (July – December) 2015, estate has reported the periodically monitoring to Environmental Head Agency based on letter number DASAH/X/36/2016 dated on March 14, 2016 and has been acceptanced by related officer through the
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officer stamp of environmental agency. Environmental monitoring report has been complete with environmental measurement as required in environmental management and monitoring matrix, example:
- Air ambient and noised, based on certificate result analysis number 137-1/UA/BINA/XI/2015, carried out on November 2 – 6, 2015, accordanced to Government Regulation number 41/1999. All of parematers measured was compliance with the regultion standard.
- Air emission, based on certificate result analysis number 898-7/UA/BINA/XI/2015, carried out on November 2 – 6, 2015, sampled in genset room, accordanced to decree of Ministry of Environmental number 21/2008. All paremeters measured result was compliance with the regulation.
- Water analysis, based on certificate result analysis number 2403/LL-PPLH-IPB/12/2015, sampled from office weel, estate weel and community weel, accordance to Government regulation number 81/2001 and decree Ministry of Health number 416/MENKES/PER/IX/1990. All water quality parameters measured result was compliance with the regulation standard.
But, there is no record that the protocol monitoring plan has been reviewed by company as a required in RSPO principle and criteria. This is raised as a non-conformity (NCR-RSPO00185). CR5.2 During the 2nd surveillance, there is no revised for HCV assessment document carried out in 2011. Based on HCV executive summary report, HCV area in Aek Nabara Selatan was 98.70 Ha, consist of river bank in division 3, river bank of river 1 until river 7, dam “O”, erossion controlled (slope area), oldest flora (Ficus sp and Alstonia scholaris), with HCV type was HCV 1.1; HCV 1.3; HCV 1.4; HCV 2.3, HCV 4.1 and HCV 4.2. HCV map identification also available on the estate. Aek Nabara Selatan Estate has record of HCV management monitoring plan implementation for 2015. Based on HCV monitoring records, monitoring result showed the HCV maintainanced was carried out properly. HCV monitoring covered for species flora and fauna monitoring, reforestation river bank, erossion monitoring, water quality sampling and others. Based HCV monitoring signboard condition also in good condition. Field visit in division 5 field number Q31 HCV 6 and division 8 field number FF25 showed the HCV area was in good condition, HCV pillars available and in good condition. But, during the surveillance audit, river in drought condition. Estate has carried out the river bank protection throgh the HCV brief example in division III, about not allowed for chemical actvity in river bank dated on January 22, 2015, attendandt by 18 person sprayers and sparyer foreman. There is no revised on HCV assessment report for Membang Muda Estate. HCV assessment carried out in 2011. Based on HCV executive summary report, HCV area in Membang Muda Estate was 541.06 Ha consist of HCV 1.1; HCV 1.3; HCV 1.4; HCV 2.3; HCV 4.1 located in river bank of Membang river, Kualuh river and low land area for water reservoar. Map of HCV identification also available on the estate. Estate has appointed the person in charge for HCV monitoring implementation based on letter number KMMDA/SKPTS/03/2016. The letter mentioned the person in charge for every division. Person in charge responsible for HCV monitoring has been trained by estate carried out on April 1, 2016, attended by 26 person from all division. The evidenced complete by training material attendant list and training photograph. It was found discrepency ot HCV total area between HCV assessment report 541.06 Ha with document letter signed by Estate manager with total HCV was 160.15 Ha. Based on field verification there is no indication of planting in HCV area and/or HCV area opened by estate, because last planted was in 2004, the the HCV assessment carried out in 2011, and also based on field verification HCV condition was in good condition with HCV pillars available in the field. Need verification and re-measurement again should carry out to verify that case. Based on HCV assessment report, appendix 4.6 (Wildlife identification on Membang Muda Estate) was identified RTE species, i.e.: Lutra sumatrana with endangered status by IUCN. But based on monitoring record there is no speciefied monitoring for RTE species above. This is raised as a nonconformity (NCR-RSPO00186). Estate has carried out the HCV brief to stakeholders carried on January 5, 2016, attendant by 27 person from local government, and other formal and informal bodies, evidenced by attendand list. Also there is no found record of monitoring HCV become a feedback to managemment plan evaluation. This is raised as a nonconformity (NCR-RSPO00187).
There is no revised of HCV assessment report for Bandar Selamat Estate. HCV assessment carried out in 2011. Based on HCV monitoring plan, total HCV area was 179.83 Ha, consist of HCV 1.1; HCV1.3; HCV 1.4; HCV 2.3; HCV 4.1; HCV 4.2 and HCV 6. HCV area consist of river bank of Sampainiat river, Mandian river, old spring well Batu Babi and Air Lombu and Hilly area. Based on fauna and wildlife identification on HCV assessment report, there is no RTE species has been identified. Estate has been carried out HCV management monitoring plan for 2015 in periode II (July – December). Based on HCV monitoring record, there is no gangguan teridentifikasi dari hasil monitoring, but has been
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identified some HCV pillar marked and HCV sign board has been broken, example in division IV for HCV 4.2. then, estate has been followed by letter number KBDSL/Int/07/2016 dated on January 12, 2016 and was repaired on April 2016. Estate manager has appointed person incharge for HCV monitoring implementation, based on decree letter number KBDSL/SKPTS/02/2016, the letter mentioned who person in charge for HCV monitoring implementation for every division, in each division consist of 4 person, and person in charge has been trained by estate. CR5.3 All estate and mill has identified all source of waste from estate and mill activities in document of environmental impact assessment for 2015. There is no different environmental impact assessment between last surveillance. This document updated every once year, and there is no new activity in estate and mill, so all activity in mill and estate included in this document. Replanting activity, spraying, fertilizing, FFB receiving, FFB process in mill, housing, office, maintenance, storage and others activity covered in environmental impact assessment. Especially for hazardous waste the company has license based on Head of Labuhan Batu District letter number 503.660/205/BLH-LB/WAS/2011 dated on August 26, 2011 for hazardous temporary storage with time limit about 180 days. The company has record of hazardous waste handling through the disposed the hazardous waste to authorized hazardous collector, whereas the evidence was hazardous manifest on August 12, 2015 with the hazardous waste covered all hazardous waste type as mentioned in hazardous license for the company. CR5.4 An established program to reducing fossil fuel use and renewable energy has well implemented and evaluated as were found during the audit such as in Aek Nabara Selatan Mill uses oil palm shell and fibre as a source of renewable energy to fuel its boiler. The mill maintains records of calculations of renewable energy produced from shell and fibre. Monitoring report mentions that total energy used from shell and fibre in 2015 and achieving 90.00%. Based on energy used record for 2015, renewable energy used by mill from shell was about 6,781,462 kg and fiber about 31,295,058 kg, and based on calculated of the efficiency of fossil fuel used in 2015, mill was saving of diesel about 300,165 litter. CR5.5 There is no revised the zero burning policy of the company. One of document was mentioned the zero burning activity stated in Work Instruction No. IK-3.01-14.01 on Land Preparation for Planting that fire is not to be used during replanting. Evidence is found indicating implementation of this work instruction. Based on field observation in field and housing, there is no indication that the company breaking the company rules or carried out the burning activity include in waste domestic from housing and office. In work agreement for 2015, also mentioned that the land clearing and/or replanting should carry out with no burning activity. CR5.6 Estate and mill has identified the pollution, emission and greenhouse gases identification source from all activities, such as replanting, FFB transport, spraying, fertilizing activity, transportation in estate and mill, mill processing, product delivery and others. Mill also has calculated the greenhouse gases to identification and was submitted to the RSPO. Estate and mill also has work program to reduce and minimize the significant pollutant and emission from they all activity, through the environmental management and monitoring plan carried out in every six month. On this report showed the result of air quality analysis, ambient analysis, POME analysis and also implementation of enrichment or planting on riparian buffer zone in river banks area. Based on analysis record there is no air quality parameter above the standard. But, during document verification in Labuhan Haji estate, plan of greenhouse gases mitigation plan was not complete with target, objective and responsible person, so this plan couldn’t measurable. This is raised as a nonconformity (NCR-RSPO00188). Compliance status: Non Compliance NCR-RSPO00185 There is no record that the protocol monitoring plan has been reviewed by company as a required in RSPO principle and criteria. NCR-RSPO00186
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There is no record of RTE monitoring species already done by company. NCR-RSPO00187 There is no found record of monitoring HCV become a feedback to managemment plan evaluation. NCR-RSPO00188 During document verification in Labuhan Haji estate, plan of greenhouse gases mitigation plan was not complete with target, objective and responsible person, so this plan couldn’t measurable.
Principle 6. Responsible consideration of employees and of individuals and communities affected by growers and mills
Criteria assessed: CR6.1, CR6.2, CR6.3, CR6.4, CR6.5, CR6.6, CR6.7, CR6.8, CR6.9, CR6.10, CR6.11, CR6.12, CR6.13 Criteria not assessed: - Findings: CR6.1 Aek Nabara Selatan Estate has documented the SIA assessment report carried out in December 2010 by North Sumatera University Reasearch Centre. SIA assessment has identified the positive and negative impact by the estate activity. The positive impact has identified the community acces, economic livelihoods through the open reqruitment for harvester from local community, religion and cultural enchancment throgh the religion and cultural support, health and education through the provide the clinic, trasport for education, schoolarship, and others. But this SIA report until 2nd surveillance there have never done review by the estate in once every two years. This is raised as a nonconformity (NCR-RSPO00189). The SIA report has involve the consultation with affected parties. The affected parties in surrounding Aek Nabara Selatan Estate was local government (village and subdistrict), local NGO’s, local Cooperative, third partys, and others. The SIA report has identified the affected parties and carried out the consultation with them to formulated the impact will appear during the estate activity. SIA also has identified and involved all of village i.e. (Gunung Selamat, N-3, N-8, N-5, N-7, Pematang Seleng, S-6, S-5, Suka Dame, Meranti, S-4 and Pondok Batu) complete by all formal and informal institutional. Aek Nabara Selatan Estate has record for SIA management plan based on SIA assessment report. Management plan showed the target, monitoring plan, time and PIC also action will carried out by estate. But, there is no record of SIA management plan has done reviewed by estate. This is raised as a nonconformity (NCR-RSPO00190). CR6.2 The company has open and transparent methods for communication and consultation between growers and/or millers, the local community and other affected or relevant stakeholders. The company has a documented SOP No. PK-3.00-13/01 for Communication and Consultation with Stakeholders, issued on 23 September 2014. Based on interviews with village heads, already conduct socialization of procedure to the public In each unit there is a Head Estate/Mill Administration and Personnel (APK) which is responsible for managing and facilitating the communication and harmonious relationships with stakeholders. Available Directors Decrees : 1. No. 3:08 / SKPTS /R/188/2015 concerning the appointment of Rizky Awaluddin Kaban at South Aek
Nabara Mill. 2. No. 3.08/SKPTS/R/61/2016 concerning the appointment of Thomas Nanda Dahana at Rantau Prapat
estate. 3. SK No. 3.08/SKPTS/R/85/2013 concerning the appointment of Julipar at South Merbau Estate. 4. SK No. 3.08/SKPTS/R/00/2014 concerning the appointment of Indra Kelana at Labuhan Haji Estate. All estates and Mill have lists of relevant stakeholders which are divided into 2 categories, i.e. internal and external stakeholders. The former consists of employees, management, board of directors and shareholders, while the latter of suppliers, customers, competitors, local community, government, journalist, investors, NGO and other relevant parties. (Code of Conduct 3rd edition, December 2012). CR6.3 The Company has a mechanism to receive and classify information required from and for stakeholders to know and understand the policy, situation, development of the company and anticipate negative issues. The company has Working Procedures Publication No. PK.3.00-06 Rev. 01 dated 15-09-2014 (one of
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them using online sms 9600). Its also explained company would to ensure the compalinants and whistleblower. The company has an open system for communication and consultation with local community as represented by Work Instruction No. IK-3.09-03/0 (6th revision) dated 15 February 2010. This SOP development process was initiated by the company, but it remains non-published to stakeholders. PT PN III corporate also has call centre 9600 as an open system to receive complaints and grievances from its stakeholders, which is openly announced in the front of estate or mill offices. The call centre is centralised in Medan head office and checked daily by corporate public relationship. Any incoming complaint or request of information from stakeholders through call centre will be forwarded to relevant sections for follow-up. During 2nd surveillance audit this call centre was still newly established; no incoming request of information received yet. This makes it difficult to ensure effectiveness of the mechanism. There currently have been no incoming complaints regarding the company’s operation. CR6.4 The company has a mechanism to identify and calculate the compensation, Working Procedure Conflict Resolution No. PK.3-11.11.12 Rev. 0 dated 02/25/2015. Any risk / conflict can be resolved properly and avoid minimize losses. In the procedure described above regarding the calculation of the parties who are entitled to receive compensation All estates have established mechanism for identification, calculation and compensation of loss of legal or traditional rights of land, which is acceptable to all parties. However, the company has initiated establishing procedure for land release through Work Instruction No. IK-3.09-03/01 (4th revision), issued on 15 February 2010. Copies of negotiated agreements detailing the process of free, prior and informed consent (FPIC) a. Minutes of meeting between claim areas Resolution Team (PTPN III) by Farmers Group Suka Damai
June 14, 2009 with the conclusion that the board of Farmers Group Suka Damai ready to surrender the claim area of 99.88 hectares in AFD I with an agreement to receive compensation money.
b. Minutes of compensation dated March 11, 2010 and on behalf (SP) Group including 55 members and on behalf Suwandi Bin Paimin including 23 members.
c. Examples of individual compensation payments on behalf (SP) During 2nd surveillance there have been no cases of dispute with any parties that require compensation from each estate manager. CR6.5 Directors Decree No. 3:08 / SKPTS / R / 08/2015 on Employee Salary Increase PTPN III in accordance with the North Sumatra Governor's Decree No. 188.44 /544/KPTS/2015 dated November 7, 2015 on Minimum Wage North Sumatra 2015 IDR 1,811,875. Staff and workers receive salary payment receipts (monthly pay slips) in a timely manner. Management staffs are paid through bank transfer, while workers paid in cash, Example: Joko Suprianto (harvester), category 1A/0, basic salary and allowances (IDR 1,811,875). The company has documented working agreements called Joint Employment Contract (‘Perjanjian Kerja Bersama’ or PKB) 2016-2018 that regulate the rights and obligations of employees/workers and still not approved by Labour Offical Government. This is raised as a nonconformity (NCR-RSPO00191). The Company already provide proper facilities to all workers, i.e workers housing, sports facilities etc. Water supply for worker obtained from wellbore/electric water pump in each worker house (include in electricity allowance). Sample: South Aek Nabara Estate
Facilities Unit
Permanent Housing type G1 2
Permanent Housing type G2 2
Permanent Housing type G4 2
Permanent Housing type G6 2
Permanent Housing type G10 4
Temporary Permanent Housing type G6 1
Temporary Permanent Longhouse type G2 5
First Aid Room 1
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Musholla 1
Foot Ball Field 1
Volley Ball Field 1
School Bus 1
Company has worker Cooperative it’s provide household goods for workers and their families, and company allow the workers to sell household goods at worker housing. (Field Observation at workers housing South Aek Nabara Estate and Mill, Merbau Estate, Membang Muda Estate, Bandar Selamat Estate). For health services PTPN III provide company`s hospital at South Aek Nabara and Membang Muda. The Company has worker Cooperative its provide household goods for workers and their families, and company allow the workers to sell household goods at worker housing. (Field Observation at workers housing South Aek Nabara Estate and Mill, Merbau Estate, Membang Muda Estate, Bandar Selamat Estate). CR6.6 The company has a documented policy on freedom of association for workers that is available in several locations signed by PTPN III Director. Statement of freedom of association for workers is also made in Article 5 of the company’s Joint Employment Contract (PKB). The policy was informed to all employees and workers through internal memorandum. There is a worker union in PTPN III, i.e. Plantation Labour Union (SPBUN). Documented minutes of meeting Meetings between management and representatives of SP BUN (Mill) dated 22-06-2015 on the mill meeting room discussing about for early retirement Paiman Jaswira (Krani Production) by personal request. SP BUN help Mr. Paiman Jaswira with that company immediately process for early retirement. The results of the meeting that the submission of early retirement was approved by Management Directors' Decree No. 3:08 / SKPTS / P-71/2015 regarding the determination of Mr. Paiman accelerated pension since July 1, 2015 date set August 18, 2015. CR6.7 There are no workers under 18 years old in Mill and Esate especially permanent workers, all of them mostly are adult person and had been working for 5 to 25 years (field Observation). Mill worker – contract based (SP) age 23 at years old at present, and working from January to March 2016 (interview with worker). And implementation in job vacancy information one of requirement is candidate must be minimum age 18 years old. CR6.8 The companies reward employees as assets of the company with dignity regardless of race, color, religion, origin, physical barriers, gender, and age are continuously improved capacity through education and training consistently. This statement contained in the Code of Conduct PTPN III, Business Ethics and commitment to Stakeholders. The company has implemented a policy of equal employment opportunities to gain employment and minimum age requirements worker policy For example: Jobs Information (workers) that require candidates are domiciled / living the operational area (Estate),senior high school graduate, physically healthy. However for the staff, recruitment information and promotion held in the central office Medan. Proof of implementation at present. Manager of Membang Muda Estate (Junaidi Wongso) is from low level worker and high school graduate becoming managerial position. However his career path is obtained based on the personal performance appraisal. CR6.9 The Company has policy to protect the reproductive rights of all, especially for female worker in the company’s Joint Employment Contract (PKB) Article 26 , permission for 1,5 month before child birth and 1,5 after child birth and article 27 permission absent from work due to menstruation period. Evidence of implementation Policy such as permission form absence from work (menstruation period), on behalf of (SP) dated 06-07 September 2014. Evidence of policy socialization by worker ownership of Joint Employment Contract (buku saku PKB) Concerning the Handling Whistle-blower mechanism, stated in the Code of Conduct PTPN III, Chapter IV Work Ethics.
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1. Presented in writing and can be reported by email, stating the complaint box complete personal identity.
2. The identity of the complainant is guaranteed confidentiality by the company. 3. The information reported must be supported by evidence sufficient and reliable as the initial evidence
for further investigation. All workers should sign the Statement of Obedience to implement Code Of Conduct in every year (Evidence of policy Socialization). CR6.10 The company allows public access to current and past FFB prices. They are clearly made public through notification boards in front of Aek Nabara Selatan Mill’s security office and near weight bridge which display current FFB price. The company has procedures to purchasing of Fresh Fruit bunches fromThird Party No. PK-3.03-12 Rev 0, as technical guidance pricing on quality classification results of sorting and extraction of palm oil and palm kernel. There is a document pricing TBS South Aek Nabara Mill on 28 March 2016 IDR 1,720 and on 29 March 2016 , IDR 1,740, which is installed at the front entrance of the Mill. Estate has contract No. 3:01 / SPJ / 207/2015, December 15, 2015 with CV Prima Jaya, to work on trasnporting FFB from estate to Mill, working period on 01 Jan-31 December 2016 . Several evidences have been found indicating that all parties understand contracts they have entered into and that the contracts are fair, legal and transparent Example of payment date in February 25, 2016/ IDR. 30,048,683. CR6.11
The company actively contributes to local community development programmes where each estate has allocation for such activities and there are a number of documented CSR programme activities, such as road maintenance, donations to local community (upon request), participation in construction in Ranatau Prapat Estate Mambang Muda Estate. For example, the company makes contributions to local development under following evidences:
- Construction of village roads at hamlet VIII Sidosari dated October 20, 2015 . - Rehabilitation of the poor house for 10 units in the village of South Merbau, Hamlet Tanah Seribu
on March 18, 2016 - Project Construction Mosque Baitul Mukshinin Hamlet Sidodadi dated November 30, 2015 - Material aidto rebuild the mosque Al Ikhlas Village Damuli Labura dated March 11.2015
- Rehabilitation of the poor house for 3 units in the neighborhood Kampung Dusun Banjaran, dated January 15, 2016. According to discussion with Village leaders and community elder all units provides other services such as water supply, contribution to mosques, church, school etc. The estates also contribute in kind (e.g. transport etc.) to the local community’s activities.
CR6.12 Based on employee data in estate and mill, there is no migrant workers/temporary migrant workers in Aek Nabara mill and estate, so this requirement not applicable. CR6.13 PT PN III has a Code of Conduct stated that employees have a policy related to the rights of Human Rights, However at the Mill unit has not been disseminated to all employees dated February 10, 2016, there are still some who do not get the socialization Dissemination code of conduct March 30 to all employees and the compliance statement signed by all employees of the plant. South Merbau Estate Dissemination code of conduct held April 11, 2016 to all employees through a written statement of compliance. Compliance status: Non Compliance NCR-RSPO00191 The document of work agreement period 2016 – 2018 (Perjanjian Kerja Bersama) still not approved by Labour Official Government.
Principle 7. Responsible development of new plantings
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Criteria assessed: CR7.1; CR7.2; CR7.3; CR7.4; CR 7.5; CR7.6; CR7.7; CR7.8 Criteria not assessed: Findings: CR7.1 The SEIA document of PT PN III Aek Nabara Selatan Mill and Estate covered all area mill and estate. EIA document as mentioned above in principle 5.1, and was approved by environmental permit based on decree of Head of Labuhan Batu District number 503.660/268/BLH-LB/2015, issued on 19/08/2015. This EIA document was complete by document of management and monitoring plan matrix. In matrix document showed that environmental parameters such as biology, physic and socio-cultural aspect already assessed by independent consultant. All of environmental parameters complete by monitoring method, time table report, report addressed, and person in charge. While in SIA document also complete by company and also complete with aspect identification (negative and positive impact) then the SIA management plan covered all impact. CR7.2 Because the PT PN III Aek Nabara Selatan Mill and Estate not carried out the new planting since November 2005, the new soil surveys and topographic information not available, the soil and topographic information source came from HCV, and EIA document. Based on EIA document soil type in company consist of podzolic soils, i.e. Typic Paleudult (yellowish brown podzolic), and while the topographic condition was 53,40% categorized flat (0-8%) and 29,15% categorized undulating (8-15%). And there is no marginal and fragile soil in place. CR7.3 Based on hectarage statement Aek Nabara Selatan Estate, there any palm oil mill planted since November 2005. The planting activity not replace any primary forest and secondary forest. Because this estate was old estate under Dutch colonial. Before palm oil mill planted, this estate planted by rubber, then in 1984 was converted to palm oil mill, this is first palm oil generation in this estate until during the 2nd surveillance all of this estate was converted to palm oil mill and no rubber planting any more. Found planting activity since November 2005 in Bandar Selamat estate, consist of 636.31 Ha with year of planting from 2006 – 2011. Based on land history record, all of the area was from replanting activity conversion from rubber to palm oil tree. And specially YoP 2015 its from ex foreman housing was about 0.65 Ha and YoP 2011 about 1.10 Ha was from rubber. So, total planted since 2010 January was 1.75 Ha. CR7.4 Based on information above in principle 7.2, about soil type and slope condition, there is no fragile and marginal soil in the company, this information based on EIA document. CR7.5 As a mentioned in principle 7.3 above, the new planting location was came from ex-housing area about 0.65 Ha and from rubber conversion about 1.10 Ha. All of this area was include in land use rights company, not new land use rights. CR7.6
As a mentioned in principle 7.3 and 7.5 above, the new planting location was came from ex-housing area about 0.65 Ha and from rubber conversion about 1.10 Ha. All of this area was include in land use rights company, not new land use rights, and there is no new compensation process already done by company. CR7.7 Based on field observation and document verification, the new planting location already done by company not use fire in the preparation. CR7.8 Based on information above in 7.3, total new planting since November 2005 about 1.75 Ha, it consist of came from housing area about 0.65 Ha and rubber conversion about 1.10 Ha. Then based on 1st surveillance report, the company no need to carry out the carbon stock assessment. Because all of new planting area above was covered in HCV, EIA and SIA document assessment. Compliance status: Full Compliance
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Palm Oil Mill – North Sumatera
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Principle 8. Commitment to continuous improvement in key areas of activity
Criteria assessed: CR8.1 Criteria not assessed: - Findings: Based on field and document verification, PT PN III Aek Nabara Selatan Mill and Estate showed the commitment to continuous improvement in all their activity, example:
1. Water quality management, mill and estate has carried out the periodically water quality monitoring to ensure the water condition, and based on certificate analysis for surface water all the parameters meet the standard.
2. In OHS implementation, the company could showed their commitment to ensure all workers during on duty and in work area use PPE, even still found some workers still not used PPE during on duty, but the company has effort to remind all workers level should use PPE during on duty through in morning briefing, OHS inspection and punishment to workers if they not compliance with company regulation, because PPE and OHS was in company regulation.
3. Rehabilitation and river bank enrichment area. The company already done carried out the forest vegetation in river bank area.
4. Based on field observation in the HCV area, the company could showed their commitment to manage the HCV area, through the condition of HCV area in field was good, riparian buffer zone maintain very well, and others.
5. In socio-cultural, and CSR, the company also has effort to maintain relationship. All CSR program made by company, approximately 90% was realization and there is no conflict was identified during the 2nd surveillance audit.
Compliance status: Compliance
3.2 Status of Previously Identified Non-conformities
The total of 5 non-conformances were identified during the 1st surveillance assessment. These consist of 2 major and 1 minor non-compliances and 1 non conformities regarding RSPO SCCS categorized as Major. For the major non-conformances, the company has taken the necessary corrective action to close these non-conformances within 60 days of completion of the assessment, and this was verified by the audit team through checks of documents submitted by the company. For the minor non-conformances, the company has taken corrective action against these as well, and for those which could not be verified as closed through document checks, the closure of these minor non-conformities will be assessed during the next surveillance audit. A summary of all identified non-conformances, corrective actions taken and auditor conclusions is as below:
RSPO Certification System 4.2.4
NCR No. 2015- 01 of 04 (Major) PT Perkebunan Nusantara III (Persero) as holding company and RSPO membership holder has no submit evidence of partial certification year 2015. Corrections: To make RSPO requirements internal audit report for all uncertified unit according to time bond plan to certification year 2015 and submit the report to certification body. Corrective Action: To keep maintain and records every year all internal audit records according RSPO requirement. Auditor Conclusions: closed Date of closure: 24 April 2015 Company provide self-assessment report for all uncertified companies and revised the time bond plan
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according to the readiness to comply with RSPO requirements.
Criteria 4.6.11. Specific annual medical surveillance for pesticide operators, and documented action to treat related health conditions, shall be demonstrated.
NCR No. 2015-02 of 04 (Major) No evidence of medical examination for fertilizer warehouse officer who has been working almost five years in Rantau Prapat estate. Corrections: To conduct medical surveillance for fertilizer warehouse officer especially for cholinesterase parameter to complete and records all medical check result accordingly. . Corrective Action: To make shcedule of medical surveillace for all chemical warehouse officer annualy. Company make cooperation with company’s assigend hospital. Date of closure: 24 April 2015 Verification Audit Result: Company provide evidence i.e. medical surveillance result for chemical warehouse officer from external Laboratory (Prodia) dated April 2015, the result stated in good condition. Auditor Conclusions: Closed.
Criteria 5.2.4. Where a management plan has been created there shall be ongoing monitoring: The status of HCV and RTE species that are affected by plantation or mill operations shallbe documented and reported; Outcomes of monitoring shall be fed back into the management plan
NCR No. 2015-03 of 04 (Minor) There was no evidence found of socialization regarding no pruning and burning is done in the HCV area such as buffer dam "O" Aek Nabara Selatan estate.. Corrections: To make socialization and communication to all worker regarding restriction of working on HCV area such as pruning and burning on HCV area especially in Waduk O River. Corrective Action: To ensure there is no land burning and land clearing in HCV area through HCV program. Date of closure: 24 April 2015 Auditor Verification Result: During the 2nd surveillance audit, the company already done carried out the brief/socialization for all workers to keep and maintain the “Waduk O” especially for riparian and buffer zone the HCV area, evidenced by record of attendant list of brief and based on field assessment spraying workers understood that they are should keep and protect the riparian buffer zone of “Waduk O”. Auditor Conclusions: Closed
Criteria 5.6.2. Significant pollutants and greenhouse gas (GHG) emissions shall be identified, and plans to reduce or minimise them implemented
NCR No. 2015-04 of 04 (Major) No evidence of testing exhaust emissions from vehicles owned by the company has been conducted because it was not informed of the test results in periodic testing card. Corrections:
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Palm Oil Mill – North Sumatera
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To conduct monitoring of emission and put the result into regular monitoring card especially for company’s operational vehicles. Corrective Action: To maintain all monitoring records properly as required. Date of closure: 24 April 2015 Verification Audit Result: Company provide emission monitoring result from several vehicle local Transportation authority e.g. Vehicle no. BK9692 dated April 23, 2015; including photograph during emission testing. Auditor Conclusions: Closed
3.3 Identified non-compliances, corrective actions taken and auditors conclusions
During this 2nd surveillance assessment, a total of 17 non-conformances were identified. These consisted of 11 Major and 6 Minor (RSPO P&C and RSPO SCCS). For the major non-conformances, the company has taken the necessary corrective action to close these non-conformances within 60 days of completion of the assessment, and this was verified by the audit team through checks of documents submitted by the company. For the minor non-conformances, the company has taken corrective action against these as well, and for those which could not be verified as closed through document checks, the closure of these minor non-conformities will be assessed during the next surveillance audit. A summary of all identified non-conformances, corrective actions taken and auditor conclusions is as below:
Criteria 1.1.1 There shall be evidence that growers and millers provide adequate information on (environmental, social and/or legal) issues relevant to RSPO Criteria to relevant stakeholders for effective participation in decision making.
NCR-RSPO00176 (Minor) The company procedure number PK-3.00-03 Rev02 about stakeholder communication and consultation not set about time table for stakeholder list update, and Labuhan Haji estate couldn’t showed evidenced of progress report of plantation business to the related official government for semester II. Correction: 1. Revised the related company procedure with added new information about time table for updating of
list stakeholders. 2. Make the report of progress plantation business for semester II, 2015 and reported to the related
official government. Corrective action:
1. Ensure the new company procedure was complete with time table for updating. 2. Ensure the stakeholder list update periodically as a required in company procedure 3. Ensure the report of plantation business progress reported periodically as a required in IUP
document, per semester. Verification Result: Evidence of immediate action taken was accepted. Effectiveness of implementation to verified at next audit. Auditor Conclusions: Closed
Criteria 1.2.1 Publicly available documents shall include, but are not necessarily limited to as a mention in RSPO Principle and Criteria requirement.
NCR-RSPO00177 (Major) Found in Aek Nabara Selatan dan Membang Muda estate document SE No. 3.00/SE/01/2015 dated on 08/04/2015 about public transparency still not complete as a required in RSPO principle and criteria. Correction:
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Revised document SE No. 3.00/SE/01/2015 dated on 08/04/2015 about public transparency, and added the new information will allowed to public access as a required in RSPO principle and criteria. Corrective action: Ensure the document about public transparency was distributed to all estate under PT PN III.
Date of Closure : May 31, 2016 Verification Result: The company has submit the evidence of new letter document about public transparency with document number 3.00/SE/02/2016 dated on April 2016. This letter addressed to all estate district under PT PN III. This letter complete with attachment of document type will allowed to publically access, there are 36 type document can access by public/stakeholders responsibly and was compliance with RSPO principle and criteria requirement. Auditor Conclusions: Closed
Criteria 1.3.1 There shall be a written policy committing to a code of ethical conduct and integrity in all operations and transactions, which shall be documented and communicated to all levels of the workforce and operations.
NCR-RSPO00178 (Minor) Found in Labuhan Haji estate, document Code of Ethical Conduct not yet communicate to the third party/outsource. Correction: 1. Carry out the brief/socialization of Code of Ethical Conduct document to all third party
workers/outsource, complete with attendant list, invitation letter and brief material. 2. The company has submitted the evidenced of Code of Ethical Conduct brief to all third
party/outsource on Marct 28, 2016, evidenced with attendant list, with total third party invited the brief about 12 third party/outsource; attendant list of third party workers, there area 15 third party workers was invited the Code of Ethical Conduct brief in division V, II, while for third party workers carried out on April 01, 2016.
Corrective action: Ensure the Code of Ethical Conduct was communicate to all third party workers/outsource and complete with evidence of attendant list, photograph, and brief material. Verification Result: Evidence of immediate action taken was accepted. Effectiveness of implementation to verified at next audit. Auditor Conclusions: Closed
Criteria 2.1.1 Evidence of compliance with relevant legal requirements shall be available.
NCR-RSPO00179 (Major) 1. There is no evidence that the soil erosion already done measured by company as a required in
management and monitoring report (RKL-RPL) document, example in Aek Nabara Selatan estate. 2. Medical clinic in the company during the audit was not valid. And there is no record of company effort
to renew the clinic licence, example in Labuhan Haji estate. 3. Licensed for hazardous collector of PT Putra Tunas Sejati (Hazardous Authorized Collector) was not
valid during the audit. 4. The company not carried out the medical check (cholinesterase test) for all chemical workers,
example in Membang Muda estate. Correction: 1. Carried out the erosion measurement as a required in RKL-RPL document. 2. Submit letter to the Health Official Government about the renewal request for medical clinic in the
company.
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Palm Oil Mill – North Sumatera
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3. Communicated to the PT Putra Tunas Sejati to request the new license for hazardous collection 4. Carried out the medical check (cholinesterase test) for all chemical workers. Corrective action: 1. Ensure the all of requirement in the RKL-RPL document will implementation and reported to the
related official government. 2. Ensure all of license of medical clinic under PT PN III in valid condition. 3. Ensure the all license related hazardous management in PT PN III and Third Party (authorized
collector) always valid. 4. Ensure the cholinesterase test will carry out for all chemical workers.
Date of Closure : May 31, 2016 Verification Result: 1. The company has submitted the result of erosion measurement for field with slope 40% as required in
RKL-RPL document and was submitted to the Environmental Official Government for Semester II. 2. The company has submitted the renewal license of medical clinic for Labuhan Haji estate. 3. The company has submitted the new license for hazardous collection of PT Puttra Tunas Sejati with
license number B-11924/Dep.IV/LH/PDAL/10/2014 dated on October 22, 2014 issued by Ministry of Environmental.
4. The company has submitted the result of cholinesterase test for all chemical workers in Membang Muda estate, and the result showed that the all of chemical workers passed the test.
Auditor Conclusions: Closed
Criteria 4.1.4 The mill shall record the origins of all third-party sourced Fresh Fruit Bunches (FFB).
NCR-RSPO00180 (Major) Based on verification record of FFB supplier third party/outsource carried out on March 27, 2015 was not compliance with company procedure. Correction: 1. Carried out the FFB supplier/third party verification guided by company procedure, and recorded all of
the process and result. 2. Complete the legal information for all FFB third party suppliers as a required in company procedure. Corrective action: Ensure the all FFB third party suppliers was verification and compliance with company procedure and documented the result.
Date of Closure : May 31, 2016 Verification Result: The company has submit the result of FFB third party/suppliers verification, evidenced by attendant list of FFB third party verification dated on April 23, 2016, attendant by 14 person from UD. Usaha Bersama, complete with identification of land owned area (ha), and also complete with legal land use rights (SHM). Auditor Conclusions: Closed
Criteria 4.6.9 Maintenance of employee and associated smallholder knowledge and skills on pesticide handling shall be demonstrated, including provision of appropriate information materials.
NCR-RSPO00181 (Minor) There is no record of chemical handling training already done for sprayer workers in Labuhan Haji estate. Correction: Provided the chemical handling training for sprayer workers in 2016 and complete with attendant list, training material and socialization/brief to the related workers.
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Palm Oil Mill – North Sumatera
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The company already done carried out the chemical training for sprayer workers evidenced by invitation letter number KLAJI/INT/173/2016 dated on April 6, 2016 about chemical handling training invitation will carry out on Thursday 07 April, 2016 in Division IV. Then chemical handling training already done carried out by company in the same date as a mentioned in training invitation letter, attendant by 13 chemical workers complete by training material, photograph and training certificate. Corrective action: Ensure all chemical workers has been training by company and complete the chemical training with evidence. Verification Result: Evidence of immediate action taken was accepted. Effectiveness of implementation to verified at next audit. Auditor Conclusions: Closed
Criteria 4.6.11 Specific annual medical surveillance for pesticide operators, and documented action to treat related health conditions, shall be demonstrated.
NCR-RSPO00182 (Major) There is no record of medical check (cholinesterase test) carried out in every six month as a mentioned in chemical recommendation letter number 560/205/DSTK/2014 for Membang Muda estate. Correction: Prepared the medical check program for all chemical workers as a required in chemical recommendation letter. Carried out the medical test (cholinesterase test) for all chemical workers. Corrective action: Ensure the all of chemical workers in all estate provide medical check (cholinesterase test) every six month and/or as a required in chemical recommendation letter of each estate.
Date of Closure : May 31, 2016 Verification Result: The company has submitted the medical check program, while the medical check for cholinesterase test will carry out on June 2016. During the company submit the CARs the medical test not yet implemented. Auditor Conclusions: Opened
Criteria 4.7.1 A health and safety policy shall be in place. A health and safety plan covering all activities shall be documented and implemented, and its effectiveness monitored.
NCR-RSPO00183 (Major) There is no safety induction to visitors during the audit, when the auditor carried out the plant tour in mill, the also found in powerhouse area and clarification process not complete with signboard for high noisy area. Correction: Carried out the safety briefing to all visitors, and install the signboard in powerhouse and clarification area to remind that the area was high noisy area. Corrective action: Ensure that all visitors before plant tour has been provide safety briefing/safety induction, and ensure all of work area was complete with signboard to remind all workers about safety condition.
Date of Closure : May 31, 2016 Verification Result: The company has submit the evidence that all security was commit about safety induction for all visitors
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Palm Oil Mill – North Sumatera
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before they go to plant tour, and photograph the signboard for all works area already installed. Auditor Conclusions: Closed
Criteria 4.7.3 All workers involved in the operation shall be adequately trained in safe working practices (see Criterion 4.8). Adequate and appropriate protective equipment shall be available to all workers at the place of work to cover all potentially hazardous operations, such as pesticide application, machine operations, and land preparation, harvesting and, if it is used, burning.
NCR-RSPO00184 (Major) Found during the plant tour in mill, some workers not used PPE on duty, example in loading ramp area, boiler area. Correction: Complete all workers with PPE during on duty especially in loading ramp area and boiler area. Corrective action: Ensure all workers during on duty using PPE, and carried out the safety briefing to all workers to remind the workers for using PPE during on duty.
Date of Closure : May 31, 2016 Verification Result: The company has submit the evidence of boiler workers and loading ramp area workers used PPE during on duty through the photograph, and commitment letter from workers in mill, mentioned that they will using PPE during on duty. Auditor Conclusions: Closed
Criteria 5.1.3 This plan shall incorporate a monitoring protocol, adaptive to operational changes, which shall be implemented to monitor the effectiveness of the mitigation measures. The plan shall be reviewed as a minimum every two years to reflect the results of monitoring and where there are operational changes that may have positive and negative environmental impacts.
NCR-RSPO00185 (Minor) There is no evidence that the protocol monitoring record already done reviewed by company in two years. Correction: Carry out the RKL-RPL document review minimum in two years, then the review result will recorded. The company has submit the program for RKL-RPL (protocol monitoring program) through the letter number 3.03/3.12/MO/18/2016 dated on May 2, 2016, when based on plan the review will carry out in the end of 2016. Corrective action: Ensure the RKL-RPL review will carry out in every two years by the company and record the result and also ensure the result will implementation by the company. Verification Result: Evidence of immediate action taken was accepted. Effectiveness of implementation to verified at next audit. Auditor Conclusions: Closed
Criteria 5.2.2 Where rare, threatened or endangered (RTE) species, or HCVs, are present or are affected by plantation or mill operations, appropriate measures that are expected to maintain and/or enhance them shall be implemented through a management plan.
NCR-RSPO00186 (Major) Couldn’t showed monitoring record of RTE species i.e.: Lutra sumatrana in the company HCV area. Correction: Carried out the RTE species monitoring and documented the monitoring result.
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Palm Oil Mill – North Sumatera
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Corrective action: Ensure the monitoring RTE species will carry out based on company procedure and develop the monitoring program and also follow up activity based on monitoring result.
Date of Closure : May 31, 2016 Verification Result: The company has submit the RTE monitoring result for Lutra sumatrana, carried out on April 11, 2016 in Rawa Jeper HCV area, division V. Auditor Conclusions: Closed
Criteria 5.2.4 Where a management plan has been created there shall be ongoing monitoring: The status of HCV and RTE species that are affected by plantation or mill operations shall be documented and reported; Outcomes of monitoring shall be fed back into the management plan.
NCR-RSPO00187 (Minor) The company couldn’t showed evidenced that RTE species monitoring result became feedback for HCV management plan evaluation. Correction: Carried out the RTE species monitoring and develop the management plan program based on RTE species monitoring result. The company has submit the HCV management plan based on RTE species monitoring result, especially in Rawa Bakung, Rawa Jeper, as location for RTE species Lutra sumatrana. The HCV management plan was complete with management plan, method, action plan, time table and PIC for implementation. Corrective action: Carry out periodically monitoring consistently to the RTE species and develop the management plan program for HCV. Verification Result: Evidence of immediate action taken was accepted. Effectiveness of implementation to verified at next audit. Auditor Conclusions: Closed
Criteria 5.6.2 Significant pollutants and greenhouse gas (GHG) emissions shall be identified, and plans to reduce or minimise them implemented.
NCR-RSPO00188 (Major) The mitigation program to reduce and minimize the greenhouse gases in Labuhan Haji estate was not complete with time table and person in charge. Correction: Develop and establish the greenhouse gases mitigation program complete with time table and person in charge. Corrective action: Carry out the identification and greenhouse gases calculation and identified the significant pollutant and emission to reduce through the mitigation plan.
Date of Closure : May 31, 2016 Verification Result: The company has submit the mitigation program to reduce the significant pollutant and emission complete with time table, action plan, and person in charge for 2016. Auditor Conclusions: Closed
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Palm Oil Mill – North Sumatera
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Criteria 6.1.1 A social impact assessment (SIA) including records of meetings shall be documented.
NCR-RSPO00189 (Major) There is no evidence that the SIA management plan has been evaluated by the company. Correction: Carried out the evaluation of SIA management plan for all aspect impact has been identified in SIA report, and develop the follow up action, time table and person in charge for all aspect impact. Corrective action: Ensure the evaluation SIA management plan carry out periodically for all aspect impact has been identified in SIA assessment report, and ensure the all aspect impact was monitored and record the result.
Date of Closure : May 31, 2016 Verification Result: The company has submit the result of SIA management plan evaluation. The result showed the proposed of the SIA management plan, action plan will implemented, person in charge, time table for all aspect impact (positive and negative) has been identified in SIA assessment report. Auditor Conclusions: Closed
Criteria 6.1.4 The plans shall be reviewed as a minimum once every two years and updated as necessary, in those cases where the review has concluded that changes should be made to current practices. There shall be evidence that the review includes the participation of affected parties.
NCR-RSPO00190 (Minor) There is no evidence that the SIA management plan has been evaluated and estate couldn’t showed that the SIA management plan has been developed was involved the affected parties. Correction: Carry out the SIA management plan evaluation for all aspect impact has been identified in SIA assessment report, and complete with time table, action plan, person in charge. The company has submit the evidence of SIA management plan evaluation carried out on April 14, 2016, attendant by 32 person from company and community affected parties, and also result of evaluation, while the result showed the each village affected, follow up activity, time table, person in charge, expcted condition, type of activity and others, for 2016. Corrective action: Ensure the SIA management plan evaluation will implemented periodically for all aspect impact has been identified in SIA assessment report and the SIA management plan shouls develop by involve the affected parties. Verification Result: Evidence of immediate action taken was accepted. Effectiveness of implementation to verified at next audit. Auditor Conclusions: Closed
Criteria 6.5.2 Labour laws, union agreements or direct contracts of employment detailing payments and conditions of employment (e.g. working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal, period of notice, etc.) shall be available in the languages understood by the workers or explained carefully to them by a management official.
NCR-RSPO00191 (Major) Mill and estate couldn’t showed the Work Agreement (PKB) has been approve by the related official government and evidence of work agreement socialization to all workers level. Correction:
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Palm Oil Mill – North Sumatera
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Documented the Work Agreement (PKB) for period 2016- 2018 has been approve by related official government, and communicate to all workers level. Corrective action: Ensure the work agreement period 2016 – 2018 has been approve by related official government and communicate to all level workers, then complete with evidence such as invitation letter, attendant list and others.
Date of Closure : May 31, 2016 Verification Result: The company has submit the cover letter of work agreement has been approved by related official government, invitation letter for work agreement socialization, and attendant list of socialization example for estate i.e.: Membang mmuda, Aek Nabara selatan dan Aek Nabara Selatan Palm Oil mill, example for Aek Nabara Selatan, was attended by 100 person (all level workers in that estate). Auditor Conclusions: Closed
3.4 Description of Supply Chain Management System
The company implements SCC-RSPO with ‘Mass Balance’ model according to nature of mill’s FFB supply condition. Following is description of the company’s supply chain management system according to RSPO SCCS requirements, including compliance status of the company and their outsourced third parties with RSPO SCCS requirements. At the audit time the company had an SCC system, but only several NCs have been identified complying with RSPO SCCS 2014 standard. This has been raised as several non-compliances as describe below.
E.1. Definition
Findings: Aek Nabara Selatan Mill is one of mills owned by PTPN III, located in Aek Nabara Selatan Village of Bilah Hulu Sub District, Labuhan Batu District, North Sumatera. PTPN III is already an RSPO member (Reg. No. 1-0030-06-000-00). Aek Nabara Selatan Mill was implemented RSPO SCCS MB for their supply chain model. This model allowed the Aek Nabara Selatan mixed the certified and uncertified raw material and product, but should be controlled by mass balance report to ensure the amount of certified and uncertified will allowed claimed as a certified. During the 2nd surveillance audit, Aek Nabara Selatan Mill has verify the volume certified and uncertified FFB an entering the mill. In 2015, based on production records there are five (5) estate was delivered FFB certified into mill, i.e.: KANAS (Aek Nabara Selatan Estate); KRPPT (Rantau Parapat Estate); KMSTN (Merbau Selatan Estate); KLAJI (Labuhan Haji Estate); KMMDA (Mambang Muda Estate). Especially KBDSL (Bandar Selamat Estate) in 2015 and 2016 not delivered they FFB to Aek Nabara Selatan Mill. This is because management was consider the distance of the KBDSL estate most closed to PT PN IV (Pulo Raja Mill). Then uncertified supplyer was from KANAU (Aek Nabara Utara Estate) under PT PN III management, and outgrowers. Based on mass balance record 2015, total certified FFB entering to the mill was 246,591.990 mt (94.54%), and uncertified was 14,233.490 mt (5.46%). Total production of CPO certified was 57,015.788 mt and PK certified was 10,750.782 mt. For uncertified CPO production was 3,051.138 mt and PK was 660.514 mt. Compliance status : Full Compliance
E.2. Explanation
Findings: Estimated of tonnage CPO and PK products has been recorded in to the public summary of the P&C certification report and also presented below:
Remarks Amount
CPO (mt) PK (mt)
Certified tonnage claimed 60,573.59 11,592.00
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Total product tonnage sold claimed under RSPO e-Trace - -
Certified tonnage sold claimed under Green palm - -
Certified tonnage purchased - -
Actual OER and KER for 2015 22.53 4.68
Total production for 2015 60,066.926 11,411.296
Total Certified production for 2015 57,015.788 10,750.782
OER and KER projection for 2016 23.89 4.56
Total FFB process projection for 2016 (mt) 299,160.750
Total FFB certified projection for 2016 (mt) 284,160.750
CPO certified projection production for 2016 (mt) 68,380.925
PK certified projection production for 2016 (mt) 12,977.665
CPO total (mt) 71,455.925
PK total (mt) 13,652.665
Note: all of 2016 data projection based on budget for 5 years. Aek Nabara Selatan Palm Oil Mill registered in RSPO IT Platform (e-Trace) with the RSPO e-Trace member ID RSPO_P1000001564. During the surveillance audit, there is no any record showed that Aek Nabara Selatan Palm Oil Mill already sold certified product, also there is no any certified claimed sold by company via green palm and e-Trace. Compliance status: Full Compliance
E.3. Documented procedures
Findings: During the 2nd surveillance, there is revised mill procedures and work instructions especially for RSPO SCCS MB implementation, such as:
- Work Instruction No. IK-3.03-12/01 on FFB Purchase and Processing from External Parties; February 2012
- Work Instruction No. IK-3.03-01/16 on FFB Reception at Mill (3rd revision) dated 6 May 2011; - Work Instruction No. IK-3.03-01/19 on Palm Oil Process (3rd revision) dated 6 May 2011; revised
into Work Instruction number IK-3.03-03/08 Rev 00 about FFB processing, this procedure has mentioned the certifed and uncertifed FFB process. Especially for certifed FFB process started from receiving process through the form FFB delivery slip PB-25 should be stamp with RSPO Certified in delivery slip, then should be separate with uncertified delivery slip, and FFB certified should be deliver to certified mill and uncertified FFB should be deliver to uncertified mill to prevent the uncontrol mixing if any.
- Work Instruction No. IK-3.03-01/20 on Control of Palm Oil Quality and Process (2nd revision) dated 15 February 2010;
- Work Instruction No. IK-3.03-01/22 on CPO and PK Analyst dated 15 February 2010; - Work Instruction No. IK-3.03-01/24 on Palm Oil Product Storage (3rd revision) dated 6 May 2011); - Work Instruction No. IK-3.03-07/02 on Sales of Certified Palm Oil to Belawan Installation, PT Sarana
Agro Nusantara, PT IKN and other parties; - Work Instruction No. IK-3.01-18/01 on Planning and Controlling of Production Process and
Replanting; - Work Instruction No. IK-3.03-04/01 on FFB Grading (6th revision) dated 6 May 2011; revised into
Work Instruction number IK-3.03-03/11 Rev 00, this work instruction has sett the mechanism for handling certified and certified FFB, in page 3, sub number 5.2.2, mentioned FFB certified after grading separate placed with uncertified FFB.
- Work Instruction on Weighbridge; and - Work Instruction No. IK-3.03-15/01 on Supply Chain Certification System (rev.01) dated February
2012.
Following are forms to record SCCS system implementation : - FM-3.03-01/16-01 (FFB Receipt/PB-28); - FM-3.03-01/16-02 (Weighbridge Recapitulation); - FM-3.03-04/01-01 (Weekly Report for FFB Grading); - FM-3.03-04/01-02 (Monthly Report for Grading Report); - FM-3.03-04/01-03 (Weekly Report for Receipt of FFB Pending Yesterday’s Process);
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- FM-3.03-04/01-04 (Monthly Report for Receipt of FFB Pending Yesterday’s Process); - FM-3.03-05/01-03 (Check Sheet of Monitoring during Processing); - FM-3.03-05/01-01 (Check Sheet of FFB Quality and Grading in Mill); - FM-3.03-05/01-02 (Check Sheet of before starting operational in Mill; - FM-3.03-05/01-06 (Daily Production Report); - FM-3.03-05/01-04 (E-mail/Facsimile for Daily Production Report); - FM-3.03-05/01-07 (Result of the CPO Quality Analyst, and Oil losses - FM-3.03-05/01-08 Result of the PK Quality Analyst, and Kernel Losses - FM-3.03-05/01-10 (Calculation of Oil Storage Tank Volume); and - FM-3.03-07/02-01 (FFB Receipt Slip).
Aek Nabara Selatan Mill has menunjuk person in charge will responsible for RSPO SCCS MB implementation, i.e.: Mill manager and Asst Mill manager. The RSPO SCCS training carried out on June 18 – 19, 2014, evidenced with attendand list and training photograph. Then in 08 April 2015, mill caried out the RSPO SCCS training for laboratory officer, process asst, foreman grading officer, production, weighing and grading clark, evidenced with attendand list and training photograph, attendant by 16 person. Mill also has procedure for receiving and processing certified and uncertified FFB with document number IK-3.03-12/01 Rev01 dated on 30/05/2014, procedure has mentioned and explanation about certified and uncertified FFB. Compliance Status: Full Compliance
E.4. Purchasing and good in
Findings: Aek Nabara Mill has verify the certified and uncertified volume of raw material and product for 2015. Based on production and record and mass balance record, FFB certified receiving came from six (6) estate under Aek Nabara Selatan Mill audit scope. Based on procedure number number IK-3.03-12/01 Rev01 dated on 30/05/2014, mentioned, receiving certified and uncertified raw material basically same used delivery slip (PB-25), only stamp will different between certified and uncertified, when the certified raw material use RSPO stamp in delivery slip. There is no purchased activity carried out by Aek Nabara Selatan Mill in 2015. Aek Nabara Selatan Mill has mechanism to inform the CB if there is a projected overproduction of certified tonnage by procedure number PK-3.03-11 Rev01 dated on 01/07/2014, page 3 sub number 7.11 mentioned “if there is any overproduction certified tonnage projection. Compliance status: Full Compliance
E.5. Record keeping
Findings: Aek Nabara Selatan Mill has record of mass balance and receiving, processing, delivery and stock report for CPO and PK certified and uncertified for 2015. This document showed clearly total certified and uncertified FFB received, certified and uncertified product, delivery process and stock in the end of 2015 for certified and uncertified. During 2nd surveillance, Aek Nabara Selatan Mill in 2015, has delivered 42,084.130 mt CPO certified, and 7,666.950 mt PK certified. The CPO certified delivered to SAN (Sarana Agro Nusantara) under PT PN III management (PT PN III trading), and PK certified delivered to PKSMK (Kernel Crushing Plant Sei Mangkei). Then, for uncertified CPO delivered was 18,229.950 mt and PK uncertified was 4,100.00 mt. Also found in discrepancy between delivery record with delivery realization recapitulation of certified and uncertified sold. In 2015, based on delivery record was 57,262.942 mt for CPO and PK 11,107.332 mt. Then, based on certified recapitulation sold for 2015, CPO delivered was 42,084.130 mt and PK was 7,666.950 mt. All the sold activity was under green palm. This raised as a nonconformity (NCR-RSPO00192). Compliance status: Non Compliance NCR-RSPO00192
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Found discrepancy between delivery record with delivery realization recapitulation of certified and uncertified sold. In 2015, based on delivery record was 57,262.942 mt for CPO and PK 11,107.332 mt. Then, based on certified recapitulation sold for 2015, CPO delivered was 42,084.130 mt and PK was 7,666.950 mt.
3.5 Status of previously identified non-conformities
NCR No. SCCS 2015-01 of 01 (Major) Findings: PT Perkebunan Nusantara III has no mechanism to put certification status for certified product since incoming order in Marketing Office KPB (Kantor Pemasaran Bersama) to marketing Departement in Head Office Office, Production Departement and respective mill to ensure product traceability and recording all relevant document. Corrections: To make rules on product certification status in the sales process since incoming order from KPB to Section Marketing, Issuing delivery order from section 3:03 to the mill and keep records in accordance with the certification status.. Corrective Action: To implement all procedure related to RSPO certification and SCCS requirement consistently since incoming material, production, delivery, stock and sales. Date of Closure : 24 April 2015 Verification result : Company provided revised SOP traceability for certified product. The procedure has been inform about mechanism for incoming order for certified product from KPB and order processing on head office then to the respective mill. Auditor Conclusions: Closed
3.6 Identified Non-Compliance against RSPO SCCS Requirement, Corrective Actions Taken and
Auditors Conclusions
Module E/ E.5
NCR-RSPO00192 (Major) Findings: Found discrepancy between delivery record with delivery realization recapitulation of certified and uncertified sold. In 2015, based on delivery record was 57,262.942 mt for CPO and PK 11,107.332 mt. Then, based on certified recapitulation sold for 2015, CPO delivered was 42,084.130 mt and PK was 7,666.950 mt. Corrections: Complete the record product sold claimed as certified product (CPO and PK) has been sold under green palm system. Corrective Action: Ensure the all sales record document will claimed as certified product (CPO and PK) will sell under green palm. Date of Closure : May 31, 2016 Verification result :
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Aek Nabara Palm Oil Mill submitted the evidence explanation about discrepancy. This discrepancy happened because mistaken during the record in the mass balance report. The real data certified product sold under green palm from Aek Nabara Palm Oil Mill only was 60,473 mt for CPO, this still under the maximum capacity statement in certificate. And there is no certified PK sold under green palm from Aek Nabaran Palm Oil Mill. Auditor Conclusions: Closed
3.7 Noteworthy Positive Components
-
-
3.8 Conclusions and Recommendation for RSPO P & C and Supply Chain Certification
The audit team has confirmed through the audit process that PT Perkebunan Nusantara III Aek Nabara Selatan Palm Oil Mill has established and maintains an effective system to ensure compliance with the RSPO P & C and Supply Chain Certification System requirements year November 2014. It is also confirmed that the company’s annual volume of CPO and PK sold for the period of year 2015 has not exceeded the certified annual tonnages as claimed in the organization’s RSPO certificate no. 824 502 14024 because no CSPO and CSPK claimed product sold as until 2nd surveillance audit. TUV Rheinland recommends that Aek Nabara Selatan Palm Oil Mill and estates be continuing approved for certification of compliance to the RSPO P & C and Supply Chain Certification System requirements
3.9 Issues Raised by Stakeholders and Findings Pertaining to Issues
Land application must be controlled and monitored, especially during rainy season. There was water pollution from land application in Parbaungan River around 1 km from Aek Nabara Mill. CSR programme should be distributed in balance. The local government is not informed of the company’s community development programme. The company must periodically report their hazardous waste management.
No problem in implementation of land application. The company monitors the implementation of and impact from land application as required by the Government. The company conducts water analysis and the result was no pollution found in Parbaungan River. The company observes that Parbaungan River is still used for daily activities. The company provided information regarding waste management to the local communities. Its proposed clean water through meeting on 25 June has been provided. It proposed road maintenance for Bawan Tuo road under Management approval.
During audit, no evidence found of water pollution in Parbaungan River. The company conducts water monitoring every month and reports to the local government, and the result is still below standard applied by Government regulation.
2. Flooding in Aek Paling Village during big rain season, as the company has no maintenance
According to research result from North Sumatera University, such flood was not caused by PTPN III
There are programmes to maintain quality of river riparian area and
RSPO Certification Assessment Report PT Perkebunan Nusantara III – Aek Nabara Selatan
programme for water drainage. We have already complained to the company, but the answer was always ‘waiting decision from director’.
activity, but from poor water drainage in the village.
other watershed areas to prevent flood as included in the HCV management and monitoring plan. However, implementing the recommendations contained in the HCV assessment report alone is considered insufficient.
3.
What is benefit of RSPO certification and what is the company’s effort to comply with RSPO requirement?
No further comment No need for further verification. Further explanation on RSPO requirements.
4.
Suggested to perform reforestation to minimise global warming with hardwood species such as Mango tree, Ficus tree etc. the company should allocate 1,000 ha from every estate.
PTPN III has programme for enrichment planting, especially in river riparian and blank area in line with company’s HCV management programme
The company has programme for planting with hardwood species along the River. Management response can be accepted, Programme implementation will be verified during audit.
5.
The company’s profit should be provided to all workers and employees, community and the local government.
The company will consider this suggestion.
Management response can be accepted, Programme implementation will be verified during audit.
6.
PTPN III provided a lot of donation to the local community, the company is feasible to get RSPO certificate.
No further Comment No need for further verification. Further explanation on RSPO requirements.
7.
The company give donation to communities in Labuhan Haji and Mambang Muda such as Cooperation, Grazing location, bridge construction, water drainage maintenance etc.
No further Comment. The company has policy regarding transparency as already distributed through circular letter.
No need for further verification.
8.
Bandar Selamat Estate management is aware of the local community, especially to provide permission for grazing activities. Estate security is part of village head’s responsibility. The company should provide allowance for head of village.
No further comment No need for further verification.
9.
Village location in Sei Dadap Estate, the company provided donation such as village infrastructure (both physical and non-physical).
No further comment No need for further verification.
10. The company has good relationship with its suppliers. FFB supplier should make
No further comment No need for further verification.
RSPO Certification Assessment Report PT Perkebunan Nusantara III – Aek Nabara Selatan
The company provided wages to their staff and allowance for their families including scholarship for their children, medical and hospital for family.
No further comment No need for further verification.
12.
Transparency for recruitment process should be improved. Minimum wage for daily worker is still low compared to other PTPN III is still below the government regulation.
The company has procedure for recruitment process. For management level, the company open the information in the website, while for workers it announces the vacancy in Head of Village office.
It was already explained in Section 3.1, CR 6.8 regarding findings on job vacancies. Issue related to minimum wage was confirmed and raised as NCR No. 2011-05 of 22
under Section 3.2
13.
We asked for mosque construction but still not provided. The company’s staffs get free land and village got donation from PTPN III.
The company provides donation according to priority of which proposal firstly coming to estate manager. There is a review process from head office that took longer than expectation.
It was already explained in Section 3.1, CR 6.11, on the company’s contribution to the local community, including job vacancies.
B) Issues Raised during Stakeholder Interviews On-site
No. Issues Raised Audit Verification
- - -
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4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY
4.1 Date of Next Surveillance Visit
The next surveillance visit is planned for March 2017.
4.2 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client
It is acknowledged that the assessment visit was carried out as described in this report and we accept the assessment findings and report content.
Signed on behalf of PT Perkebunan Nusantara III …………………………………………. Tio Handoko Head of Management System Date: August 23, 2016
Signed on behalf of TÜV Rheinland Indonesia …………………………………………. Mhd Fundy Cholis Kurniawan Lead Auditor Date: August 23, 2016
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APPENDICES Appendix 1: Details of Certificate
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Appendix 2: List of Abbreviations
AMDAL Analisis Dampak Lingkungan & Sosial (Social & Environmental Impacts Assessment)
ASL APL
Above Sea Level Other land Use (Area penggunaan lain)
BOD CD
Biochemical Oxygen Demand Community Development
CPO Crude Palm Oil CSR Corporate Social Responsibility DAS Daerah Aliran Sungai (Watershed) EIA Environmental Impact Assessment ERTs Endangered, Rare & Threatened species ESH Environmental Safety & Health FFB Fresh Fruit Bunches EFB Empty Fruit Bunches HCV High Conservation Value HCVA HP
High Conservation Value Area Production Forest (Hutan Produksi)
IPM Integrated Pest Management LTA Lost Time Accident MSDS Material Safety Data Sheets NGO Non-Government Organisation NPP New Planting Procedure OSH Occupational Safety & Health PKO Palm Kernel Oil POME Palm Oil Mill Effluent PPE Personal Protective Equipment PPKS PTPN PPN PKB
Pusat Penelitian Kelapa Sawit Indonesia (Indonesian Palm Oil Research Institute - IOPRI) PT Perkebunan Nusantara Value added tax(pajak pertambahan nilai) Working Agreement (Perjanjian Kerja Bersama)
RJP Rencana Jangka Panjang (Long-Term Plan) RKL RKAP
Rencana Pengelolaan Lingkungan (Environmental Management Plan) Rencana Kerja Anggaran dan Pendapatan (Revenue, Budget and Cost Plan)
RPL Rencana Pemantauan Lingkungan (Environmental Monitoring Plan) SCCS Supply Chain Certification System SEL Studi Evaluasi Lingkungan (Environmental Evaluation Assessment) SIA Social Impact Assessment SOP SPBUN
Standard Operating Procedure Estate Union worker (Serikat Pekerja Perkebunan)
UKL Upaya Pengelolaan Lingkungan (Environmental Management Efforts) UPL Upaya Pengelolaan Lingkungan (Environmental Management Efforts)
Appendix 3: List of Stakeholders Interviewed and Contacted
No. Name of Stakeholder Institution / Position
Stakeholders Interviewed during Public Consultation Meeting
1. M. Sitompul Environmental Officer Labuhan Batu
2. Syahril Tambunan Head of Aek Paling Village
3. M. Mukti Tanjung Youth leader North Labuhan Batu
4. Edwin Police Officer Simpang Ampat
5. Village Head Pulau Mandi Village
6. Rianto Aek Songsongan Village
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No. Name of Stakeholder Institution / Position
7. Sudirman Head of Village Tanjung Alam
8. Zuwendi Supplier Aek Nabara Selatan Mill
9. Darif Simangunsong Labor Union Labuhan Haji Estate
10. Aburahman Janji Village
11. A. Pane Industrial Officer Labuhan Batu District
Appendix 4: Observations and Opportunities for Improvement
No. Observations / Opportunities for Improvement Criteria
1 There is measures taken for protecting species and their habitats has been recommended by HCV consultant, however the implementation is not consistent with the recommendation itself
5.2.1
2 Vehicles were not identified as source of GHG emissions
