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PT. MUTUAGUNG LESTARI ASSESSMENT REPORT Roundtable on Sustainable Palm Oil Certification [ ]ST-1 [ ] ST-2 [v] Surv-1 [ ] Re-Assessment Plantation Management/Owner : MINAMAS Plantation - Sime Darby Group Plantation Name : Selabak Factory PT Swadaya Andika Location : Pamukan Utara Sub District, Kotabaru District, South Kalimantan Province Certificate Code : MUTU-RSPO/015 Date of certificate issue : 16 03 - 2012 Date of expiry of certificate : 16 03 - 2017 Assessment Assessment Date PT. Mutuagung Lestari Auditor Checked by Approved by ST1 04/04/2011 08/04/2011 Taufik Margani (Lead Auditor), Nanang Mualib (Lead Auditor Witnessed), Muardi Marwas (Auditor), Junser Naibaho (Auditor) Tony Arifiarachman Tony Arifiarachman ST2 06/05/2011 11/05/2011 Nanang Mualib (Lead Auditor), Muardi Marwas (Auditor), I Wayan Sudi Antara (Auditor) Taufik Margani Tony Arifiarachman S1 21/01/2013 23/01/2013 Taufik Margani (Witnesser), Oktovianus Rusmin (Lead Auditor Witnessed), Yudwi Wisnu Rahmanto (Auditor), Ardiansyah (Auditor), Moh. Arif Yusni (Trainee Auditor) Octo H.P.N. Nainggolan Tony Arifiarachman Mutuagung Lestari • Raya Bogor Km 33,5 Number 19 • Cimanggis • Depok 16953• Indonesia Telephone (+62) (21) 8740202 • Fax (+62) (21) 87740745/6 Email : [email protected]www.mutucertification.com MUTU Certification • Approved by RSPO Secretariat on June 2008 Submitted to RSPO on: Approved by RSPO on: Approved by Certification Body on: 01 April 2013 - 16 March 2013
Transcript
Page 1: ST-1 [ ] ST-2 [v] [ ] · Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika Darussalam Province PT. Sandika Natapalma Ketapang District – West Kalimantan Province

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

[ ]ST-1 [ ] ST-2 [v] Surv-1 [ ] Re-Assessment

Plantation Management/Owner : MINAMAS Plantation - Sime Darby Group

Plantation Name : Selabak Factory – PT Swadaya Andika

Location :

Pamukan Utara Sub District, Kotabaru District, South Kalimantan Province

Certificate Code : MUTU-RSPO/015

Date of certificate issue : 16 – 03 - 2012

Date of expiry of certificate : 16 – 03 - 2017

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

by

ST1 04/04/2011 – 08/04/2011

Taufik Margani (Lead Auditor), Nanang Mualib (Lead Auditor Witnessed), Muardi Marwas

(Auditor), Junser Naibaho (Auditor)

Tony Arifiarachman

Tony Arifiarachman

ST2 06/05/2011 – 11/05/2011 Nanang Mualib (Lead Auditor),

Muardi Marwas (Auditor), I Wayan Sudi Antara (Auditor)

Taufik Margani

Tony Arifiarachman

S1 21/01/2013 – 23/01/2013

Taufik Margani (Witnesser), Oktovianus Rusmin (Lead Auditor

Witnessed), Yudwi Wisnu Rahmanto (Auditor), Ardiansyah (Auditor), Moh. Arif Yusni (Trainee

Auditor)

Octo H.P.N. Nainggolan

Tony Arifiarachman

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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Submitted to RSPO on:

Approved by RSPO on:

Approved by Certification Body on:

01 April 2013 - 16 March 2013

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PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Selabak POM – PT Sawadaya Andika

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Swadaya Andika Figure 2. Operational Map of PT Swadaya Andika

2 3

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 4

1.2 Organization Information 4

1.3 Type of Assessment 4

1.4 Location of Plantations, Mill and Area Statement 4

1.5 Description of Supply Base 5

1.6 Dates of Plantings and Cycles 6

1.7 Tonnage Certified 6

1.8 Other Certifications 7

1.9 Time-Bound Plan for Other Management Units 7

2.0 ASSESSMENT PROCESS

2.1 Certification Body 8

2.2 Assessment Team 9

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 9

2.4 Stakeholder Consultation and List of Stakeholders Contacted 10

2.5 Date of Next Surveillance Visit 10

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

11 29

3.3 Conformity Checklist of Certificate and Logo Use 33

3.4 Summary of RSPO Partial Certification 34

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

35

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 42

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 47

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 48

2. Assessment Program 49

3. Glossary 50

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PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 2 Prepared by Mutuagung Lestari for Selabak POM – PT Sawadaya Andika

Figure 1. Location Map of PT Swadaya Andika

Page 4: ST-1 [ ] ST-2 [v] [ ] · Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika Darussalam Province PT. Sandika Natapalma Ketapang District – West Kalimantan Province

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 3 Prepared by Mutuagung Lestari for Selabak POM – PT Sawadaya Andika

Figure 2. Operational Map of PT Swadaya Andika

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PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 4 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

1.1 National Interpretation Used National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil

Production, Republic of Indonesia - RSPO INA-NIWG, May 2008 and RSPO Supply Chain

Certification Standard November 2011.

1.2 Organization Information

1.2.1 Company name MINAMAS PLANTATION – SIME DARBY Group

1.2.2 Contact person Mohamad Pirabaharan

1.2.3 Company address and site address The Plaza Officer Tower. 36th Floor Jl. M.H Thamrin Kav 28-30 Jakarta Pusat 10350.

1.2.4 Telephone +6221 – 29926000

1.2.5 Fax +6221 – 29922686

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification Mohamad Pirabaharan

1.2.10 Registered as RSPO member September 8, 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment Mill and Estate

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate

PT. Swadaya Andika PT. Langgeng Muara Makmur (Lanting Estate)

1.3.4 Number of management unit 1 (unit) mill namely Selabak Mill which has FFB source from 4 (four) estates namely Selabak Estate, Randi Estate, Sangkoh Estate, and Lanting Estate.

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Selabak Mill Selabak Village / Sungai Durian Sub District / Kotabaru District / South Kalimantan Province

2° 29’ 86” LS 116° 12’ 23” BT

1.4.2 Location of Supply Base

Name of Supply Base Location

GPS

Latitude Longitude

Randi Estate

Manunggal Lama Village/ Sungai Durian Sub District/ Kotabaru District/ South Kalimantan Province

2°31’20” - 2°24’28” 116°09’35” - 116°13’31”

Selabak Estate

Selabak Village / Sungai Durian Sub District / Kotabaru District / South Kalimantan Province

2°30’07” - 2°27’46” 116°08’08” - 116°13’06”

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PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 5 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

Sangkoh Estate

Manunggal Lama Village/ Sungai Durian Sub District/ Kotabaru District/ South Kalimantan Province

2°31’20” - 2°26’17” 116°12’19” - 116°15’58’

Lanting Estate

Harapan Baru Village/ Pamukan Utara Sub District/ Kotabaru District/ South Kalimantan Province

2°29’26” - 2°26’09’ 116°15’09” - 116°20’25”

1.4.3 Tenure

Private -

State 13,680.23 Ha

Community -

1.4.4 Area Statement

PT. Swadaya Andika Lanting Estate

Total area 10,430.97 3,249.26 Ha

Mature area 8,594,09 2,637.06 Ha

Immature area 0 98.00 Ha

Mill 14.21 0 Ha

Infrastructure 531.81 100.92 Ha

Nursery 0 0 Ha

Occupation 498.79 0 Ha

Others area 573.07 413.28 Ha

HCV 219.00 0 Ha

1.5 Description of Supply Base

1.5.1 Description of Mill

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Selabak POM 30 152,467 33,777 22.15 7,000 4.67 0 0

*Source Production Data January – December 2012

1.5.2 Description of Estate(s)

Name of Estate(s) Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

Randi Estate 3,190.72 2,677.01 54,802.82 20.47 21,933.49 40.03

Selabak Estate 3,757.65 3,366.90 63,680.31 18.91 28,678.34 45.04

Sangkoh Estate 3,482.59 2,550.18 56,925.67 22.32 51,174.03 89.90

Lanting Estate 3,249.26 2,637.06 56,624.83 2.47 50,583.68 89.34

Total 13,680.23 11,231.15 232,033.63 20.66 152,369.54 65.67

*Source Production Data January – December 2012

1.5.3 Smallholder(s) and other source

Name of source(s)

Member(s) Location Total Area

(Ha) FFB

(tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

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PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 6 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

KKPA - ASC - Rantau Buda 498.34 1,827.28 378.87 20.73

*Source Production Data January – December 2012

1.5.4 Product categories FFB/CPO/PK

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year Hectar Age (Year)

1994 1,023.29 18

1995 184.22 17

1996 4,243.89 16

1997 2,102.22 15

1998 2,316.58 14

1999 43.12 13

2000 423.07 12

2001 124.04 11

2006 262.10 6

2007 270.15 5

2008 183.98 4

2009 54.49 3

2010 98.00 2

TOTAL 11,329.15

1.6.2 New Planting area after November 2007 - Ha

1.6.3 Planting Cycle 25 Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production 132.389,.51 Tonnes/year

CPO Production 28.590,97 Tonnes/year

Palm Kernel (PK) Production 6.197,21 Tonnes/year

Palm Kernel Oil (PKO) Production 0 Tonnes/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Randi Estate 3,190.72 2,677.01 21,933.49 8.19

Selabak Estate 3,757.65 3,366.90 28,678.34 8.51

Sangkoh Estate 3,482.59 2,550.18 51,174.03 20.06

Lanting Estate 3,249.26 2,637.06 50,583.68 19.18

Total 13,680,23 11,231.15 152,369.54 13.56

*Source Production Data January – December 2012

1.7.3 Claim Certified Tonnage of Palm Product

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PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 7 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Selabak POM 30 152,369.54 35,425.92 23.25 7,313.74 4.80 0 0

*Source Production Data January – December 2012

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others ISPO

1.9 Time Bound Plan for Other Management Units

Management Unit

Address Hectarage

(Ha) *) Time Bound

Plan Status

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

7,734.60 2009 Certified

PT. Laguna Mandiri Kotabaru District – South Kalimantan Province

15,300 2011 Certified

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

11,134.00 2010

Certified

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

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

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

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

14,779.92 2010

Certified

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

Certified

PT. Ladangrumpun Suburabadi

Tanah Bumbu District – South Kalimantan Province

6,077.00 2010 Certified

PT. Sajang Heulang Tanah Bumbu District – South Kalimantan Province

7,794.00 2010

Certified

PT. Bersama Sejahtera Sakti Kotabaru District – South Kalimantan Province

13,925.00 2010 Certified

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

16,601.66 2010

Certified

PT. Budidaya Agro Lestari Ketapang District – West Kalimantan Province

1,002.00 2011 Audited

PT. Guthrie Pecconina Indonesia

Musi Banyuasin District – South Sumatera Province

10,139.91 2011

Certified

PT. Langgeng Muaramakmur Kotabaru District – South Kalimantan Province

16,361.77 2011

Certified

PT. Mitra Austral Sejahtera Sanggau District – West Kalimantan Province

8,741.29 2011 Audited

PT. Paripurna Swakarsa Kotabaru District – South Kalimantan Province

14,892.00 2011

Certified

PT. Perkasa Subur Sakti (Blang Simpo POM)

Aceh Timur District – Nanggroe Aceh Darussalam Province.

6 2011 Audited

PT. Perusahaan Sri Kuala Aceh Tamiang District - Nangroe Aceh 1,128.90 2011 Audited

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PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 8 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

Darussalam Province

PT. Sandika Natapalma Ketapang District – West Kalimantan Province

8, 406.21 2011

Audited

PT. Swadaya Andika Kotabaru District – South Kalimantan Province

10,361.18 2011

Certified

PT. Tamaco Graha krida Morowali District – Central Sulawesi Province

4,145.00 2011

Certified

2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

S1 1) Taufik Margani (Lead Auditor Witnesser). A bachelor of Forestry, Majoring in Forest Management. A specialist in Environment. He had led a number of audits for Sustainable Forest Management in Indonesia (under the scheme of LEI-Lembaga Ekolabel Indonesia/Indonesia Ecolabel Body and FSC-Forest Stewardship Council) and Lead Auditor for FSC Chain of Custody. Other experiences: He was the certified Lead Auditor of IRCA for Environmental Management System and Quality Management System. Since 1999, he had worked for an independent certification body and had conducted a number of Audits of Environmental Management System, Quality Management System and RSPO in Malaysia and Indonesia. Currently, he works as The General Manager of Management System Certification.

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

3) Yudwi Wisnu Rahmanto (Auditor). Bachelor of Forestry with Silviculture background. He has attended in selected

training, such as Auditor/Lead Auditor Course Quality Management System (QMS) ISO 9001:2008, Timber Legality Assurance System (SVLK), Verification Organization Training C.A.F.E Practices (Starbucks), Organic Standard (EU, NOP, JAS), Forest Stewardship Council (FSC), Program Endorsement of Forest Certification (PEFC) and Organic Exchange for Textile. He also has experience as an auditor and involved in certification program auditing, such as Sustainable Forest Management by FSC FM/COC Scheme, Coffee And Farmer Equity (C.A.F.E Practices) Starbucks, Sustainable Palm Oil by RSPO Scheme, Organic Standard (EU, NOP, JAS) for Coffee Farmer and Organic Exchange for Textile. Currently, he worked at Professional Certification Body and assigned to verify in Social aspect during this Assessment.

4) Ardiansyah (Auditor) Bachelor of Forest Resources Conservation, Department of Forestry, Bogor Agricultural

University. He has followed several activities such as preparing EIA document for Palm Oil Plantation and Industrial Plantation Forests, assistance in the GAP analysis, and helped draft the HCV document. It has been several times following audit activities related to sustainable palm oil certification system as an auditor. In this Surveillance-1

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PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 9 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

assessed the environmental aspects, soil and water conservation. 5) Moh. Arif Yusni (Auditor) A bachelor of Agriculture, majoring of Plant Pest and Deseases (Plant Protection). He has a

working experience for 2 (two) years in oil palm Plantation Company in Indonesia. Trainings attended namely: Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course. Now he worked at Professional Certification Body. he has been several times following audit activities related to sustainable palm oil certification system as an obeserver and auditor. In the assessment activity, he assessed on, best practices, environment aspect, and workers welfare

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

S1 Number of auditors : 5 auditor Number of days at site : 3 days Number of working days at site : 15 Working days

2.3.2 Detail process of assessment

S1 Surveillance activity one aims to measure the the implementation of that has been done by the company (PT Swadaya Andika) against the requirements of the Republic of Indonesian National Interpretation of RSPO Principles and Criteria (P & C) RSPO Sustainable Palm Oil (RSPO INA-NIWG, May 2008). Assessment done three ways, ie: (1) assessment company documents, aiming to see the completeness, validity and sufficiency of substance of the required documents, (2) interview, aiming to get a more in-depth information, and (3) observation, aiming see directly adequacy of implementation in the field compared with the result data interview and information contained in the document. Some directions for improvement of the Surveillance 1 assessment results is delivered by an auditor QUALITY to the manager (PSA), and the results are used as material verification of Survaillance stage 2 (S2). All obtained information are recorded in the Checklist (Check List) Mutuagung PT Lestari and being a primary attachment of Assessment Reports. The complete assessment process as follows: January 21, 2013. The auditor team did opening meeting at the RSPO Secretariat of PT Swadaya Andika Kantor Estate RandiAndika, followed by a study of the documents related to the legal aspects, social, production and environmental. January 22, 2013. The auditor team (Oktovianus Rusmin and Taufik Margani) did stakeholder consultation until 12.00 p.m. Other audit team (Yudwi Vishnu Rahmanto, Ardiansyah and Moh. Arif) conducted field visits in accordance with their respective fields (Yudwi Vishnu Rahmanto: visiting the factory, Ardiansyah: visiting the sites related to environmental management such as monitoring of erosion, soil conservation and water, Moh Arif: harvesting site visits, interviews with labor and observation facilities for employees). In the afternoon after the lunch break, Oktovianus & Taufik Margani conducted field visits to observe the locations that have been identified as HCV area, to check the leasehold boundaries and to interview the head of village and the community leaders. Other audit team also continued its visits. Januari 21, 2013. The auditor team is presented the results of audit (closing meeting) at Randy Estate The assessment program please find Appendix 2

2.3.3 Locations of Assessment

S1 Dated January 22, 2013

Location 1 - Selabak Estate, Division III, Block F20: interviews of harvester related to the compliance of Personal

Protective Equipment (PPE) and health and accident insurance. The Company has completed the PPE and harvesting

tools according to the needs of employees.

Location 2 - Selabak Estate, Division III, Block F14: Observations relating to the implementation of monitoring erosion

stakes. Stakes erosion is in good condition and well maintained.

Location 3 - Selabak Estate, Division III, Block F17: Observations related to the implementation of effluent land application and monitoring wells condition. Monitoring wells are in good condition, no spillage of flowing waste into waterways. Location 4 - Selabak Estate, Division III: Observations related to the implementation of storage of hazardous materials and toxic (B3), Hazardous and Toxic (B3), employee housing, condition of fire extinguishers and First Aid Emergency tools, hazardous materials warehouse has been equipped with the Safety Data Sheet, PPE, etc. Hazardous materials warehouse has been given permission and symbols. Location 5 - Selabak Estate, Division III, Block E19: Observations related to the implementation of the protection of areas

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PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 10 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

identified as High Conservation Value (HCV). There have been tagging boundaries in the riparian and reservoirs, and there is prohibition boards related to activities that are not allowed to do in the riparian and reservoirs. Location 6 - Block I 33 Sangkoh Estate: Observation and interview with sprayers team and the supervisor related to the company's policy on the application of chemicals in the riparian, periodic medical examinations, and the adequacy of PPE usage, spraying techniques training, OHS Training, First Aid Emergency training, mechanisms gender-specific complaints, employee benefits and remuneration Location 7 - Block E36 Sangkoh Estate: Observations and interviews with permanent personnel associated with the criteria harvesters ripe harvest, harvesting techniques, the use of PPE and other employee benefits and housing facilities are available Location 8 - Komplek Sangkoh housing Estate: Conducting observations and interviews with residents in cottage 2 related to the facilities provided by the company as employee housing, places of worship (mosques), Child Care Center, clean water and household waste management. Location 9 – Klinik Unit Sangkoh Estate: Conductiong oberservation of environmental clinic (examination room, ward room, and drugstore). Interview with paramedics related to the periodic health checks, accident, health, and medical waste management. Location 10 - Location Warehouse Oli, Agrochemical and Fertilizer Sangkoh Estate: Implementation of OHS, such as: the availability of hazardous and flammable material symbols, MSDS, Work Instructions of taking agrochemical, oil and fertilizer, PPE, Fire Extinguisher and hazardous material landfill of Sangkoh Estate:

Location 11 – Fire Fighting Post of Sangkoh estate: Inspection of fire fighting facilities and infrastructure, including; tank fire engines and tractors furnished with the pumps, hoses, nozzles.

Location 12 – Hazardous material Landfill of Sangkoh Estate. Implementation of OHS; such as availability of OHS symbols, flowcharts of spill, PPE and fire extinguisher. Location 13 - Palm Oil Processing Factory,Selabak Factory. Field observations related to plant operations from receipt fruit (weight bridge), grading FFB in loading ramp, processing mechanisms. Location 14 - Palm Oil Processing Factory, Selabak Factory. Reviewing the implementation of OHSAS at processing stations, such as Sterilizer, Thresher, Digester, Nut Cracker, Engine Room, Boiler. Location 15-Temporary hazardous waste storage in Selabak POM . Reviewing the availability of hazardous waste remaining in storage locations, verifying the balance of waste, availability of oil trap observations, etc Location 16 - Division 3 Block C26 - 27, Rawa Gelam: Observation of processing in HCV area Location 17 – Stakes 4 Sangkoh Estate: Checking the boundaries pole. Location 18 - Division III Block B28 - 29 Sangkoh Estate: Observation of processing in HCV

Location 19 - Manunggal Lama Village: Interview with the village head about the program CD / CSR and the social interaction between the company and the locals.

Location 20 - Bakau Village: Interview with Community Leader about the program of CD / CSR and the social interaction between the company and the locals.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Summary of stakeholder consultation process Consultation of stakeholders for PT Swadaya Andika was held by public consultation meeting with internal stakeholders by interviews and local stakeholders conducted by visits to villages and interviews with local peoples. Numbers of input from stakeholders were clarified by PT Swadaya Andika. See 3.6

2.4.2 List of stakeholder contacted

Please find appendix 3

2.5 Determining Next Visiting

The next visit (S-2) will be determined one year after this S-1 (January 2014).

3.0. ASSESSMENT RESULTS

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MUTUAGUNG LESTARI has conducted a Surveillance-1 assessment of PT Swadaya Andika – Selabak POM, Sime

Darby Operation consisting of 1 (one) mill and 4 (four) oil palm estates. MUTUAGUNG LESTARI found that PT Swadaya

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

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

Scheme Smallholders, October 2009.

Therefore MUTUAGUNG LESTARI recommends a certificate of compliance is maintained.

3.1. Summary of the RSPO Certification

Ref Std.

VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

Log External Communications Year 2012 is available in each estate. The document contains information about all incoming mail from external parties and the following response. Based on the Log External Communications year 2012 there are no information requests from external but it has a support request. Based on SOP of Answering Information Request (056/SAA-JPI/12) dated on June 15, 2012 said that the shelf life of request and response information record is 5 years.

Complied

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

SOP of Answering Information Request (056/SAA-JPI/12) dated June 15, 2012 is available. These procedures have been grouped on the list of documents that can be accessed or provided and the information can not be given to the public. The information can be accessed by the public (stakeholders) are:

1. Broad of Land Clearing 2. Evidence of Labour Social Assurance payments 3. Evidence Employee Treatment payments 4. General Facilities Employees 5. Pests and Diseases Offensive Data 6. Lightweight Vehicle and Heavy Equipment Data 7. Supporting Machines Data 8. Conducted CSR Data 9. Bridge Data 10. Length Of The Road Data 11. Work Building Data 12. General Building Data 13. School Building Data 14. Types of fertilizers used 15. Agrochemical types used 16. SKU Employee Data 17. Students Data

Information / documents that are not accessible to the public are: 1. Budget and finance / Financial 2. Legal and Corporate License 3. Best Paractice Operational Note 4. Medical and Health Screening (Early, Periodic and Special) 5. Tender, Purchasing and Sales

Special information request of the concerned parties should be guided by the Code of Conduct Procedures (440/HRM-

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COC/07) and Sustainable Plantation Management Guidelines Procedures (724/TQEM-SPMS/09) and does not against the laws and regulations

Complied

PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

There is evidence of regulations compliance of the company in the form of updated regulations list (up to date) on December 28, 2012 and the following evaluation. These evaluations illustrate compliance with any referred regulations and comes with proof of compliance. example:

1. The company has fulfilled the Law No. 5 year 1960 with evidence of Certificate No. HGU. 15 In 1999 (9370.6 ha), no. 32 of 2002 (507.579 ha) & No.. 33 in 2002 (4.83 Ha). Total 10361.179 Ha.

2. Reporting Environmental Management Plan and Environmental Monitoring Plan related to PP 27 year 1999 every six months, has been done despite the delay. Company Parties conduct intensive efforts to better internal communication done on time. Evidence of delivery of Environmental Management Plan and Environmental

Monitoring Plan report can be demonstrated by the organization to the Plantation Service Department (PSD) section in Bajarbaru.

3. The Compliance of riparian wide in the field is more than 50 meters in accordance with the regulation No. 41 year 1999.

The Compliance of regulation No. 14 year 2008 concerning with Freedom of Information have been made with the SOP of Code of Conduct, SOP of Answering Request Information & Communications availability.

Complied

2.2 The right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights Tenure and land usage by PT. Swadaya Andika demonstrated through several documents, such as:

1. The release of forest land by decree of the Minister of Forestry No. 583/Kpts-II/1994 about the release of most of the

forest area of the forest and surrounding Manunggal River located in District II Kotabaru, provincial-level regions of

South Kalimantan covered 10 252 (ten thousand two hundred fifty two) hectares for the cultivation of palm oil

plantation in the name of PT. Swadaya Andhika dated on December 20, 1994.

2. Plantation Business Permit Revision in accordance with Decree of Kotabaru Regent No. 357 year 2006 on

Plantation Business Permit Re-registration PT Swadaya Andika in Kotabaru District dated on March 25, 2006.

3. Plantation Business Permit Revision in accordance with Decree of Kotabaru Regent No. 188.45/387/KUM/2009

regarding to the Approval of Re-registration of Plantation Business Permit of PT Swadaya Andika in Kotabaru District

dated on December 7, 2009 "Business License applies to an area of 10424.139 ha and 1 POM unit with a capacity

of 60 tons FFB / hour"

4. Land Use Title there are 3 Land Use Title ie;

• Land Use Title certificates No. 15 year 1997 dated on December 1, 1997 in accordance with the Decree of the

State Minister of Agrarian / Head of National Land Agency (BPN) No.131/HGU/BPN/1997 dated on November 28,

1997 with an area of 93.706 million m2 is valid until 22 November 2032.

• Land Use Title certificates No.32 year 2002 dated March 26, 2002 in accordance with Decree of Head of National

Land Agency of Kotabaru District No. 7/HGU/BPN/2002 dated March 7, 2002 covering an area of 507.579 ha is

valid until September 24, 2037.

• Land Use Title certificates No. 33 Year 2002 dated on March 26, 2002 in accordance with Decree of Head of

National Land Agency of Kotabaru District. No. 7/HGU/BPN/2002 dated on March 7, 2002 covering an area of 483

hectares is valid until September 24, 2037.

5. Land Use Title compensation process, in this case taken from documents sampling of Occupational and Land Plant

Growing Compensation Payment Report in the Area of Oil Palm Plantations of PT Swadaya Andika II (Randi Estate)

Manunggul Lama village / Sungai Durian Sub District of 10 ha and Bakau village, Pamukan Utara Sub Disctrict

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covering area of 123, 25 hectares are equipped with statement letter of Waiver of land known by the village and sub

district officials, the evidence of compensation (receipts) and the indemnity minutes.

There is also a new development in the form of a letter Number 104/SAA/PSD-Bjb/XI/2012 dated on November 13, 2012 on the application of Land Use Title on behalf of PT. Swadaya Andika sent to the National Land Agency as the follow-up of completeness requirements that must be met for the issuance of Land Use Title Certificate covering area of 62.93 ha in Randi Estate is on process of completion in National Land Agency of South Kalimantan Office.

Complied

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

Based on information from management, the area identification report document is High Conservation Value (HCV), based on description locals/ locals leader around the plantation, it is known that there is no areal around plantations are taken by indigenous people and there are no indigenous people as well. There is also a letter from the National Land Agency of Kotabaru District No. 000/02/KP-10 dated on 2 September, 2010 on the Status of Indigenous Rights / Tanah Ulayat states that: 1. Status of land, especially in Kotabaru District, has never have the regulations governing the status of indigenous

rights / Tanah Ulayat until now. All Land Use Title issued by National Land Agency and during its right processing the status of Indigenous Rights Lands / Tanah Ulayat are not found especially for Kotabaru District.

Complied

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

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

The company owns Budget Presentation of year 2013/2014 and Projection of year 2013/2014; 2014/2015 and 2015/2016 which contains the plan (1) Areal Statement (2) New Planting status, (3) Nursery Status, (4) average production projection and production costs in Rp/ kg, and the Size of the harvest. Replanting plans are available as well: over 15 years beginning in the period 2013/2014.

Estate Sangkoh: the period of 2013/2014 = 170.02 Ha

Estate Randi: the period of 2014/2015 = 49.27 Ha

Estate Selabak: the period of 2014/2015 = 113 Ha

Estate Lanting: Period 2015/2016 = 212 Ha

Compled

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

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

Minamas Plantation Indonesia Standard Operation Procedure is available, agronomy Manusl Reference with Policy No.: 110/EST-ARM/08, endorsed by the CEO on August 19, 2008. The procedure consists of: plant material (Planting material), Nursery technique, replanting, Land Preparation, planting density, maturity age, field upkeep, manuring, Canopy management, water management in coastal soil / peat, ablationof Ripeness standard), harvesting interval, Traceability, loose fruit collection, and Plant protection. Inspection or monitoring activities implemented by the operations of the internal audit activity at least 2 times a year (SOP Internal Audit No. 421/HRM-DIQ/08 dated 01.02.2009), which includes oversight of all activities of mills and plants, for example: • There is an internal audit report of the last plantation adviser held on September 20-22, 2012 • Each conclution worksheet of period 1 February to september 2012 is available. • There are reports of the last advisory mill conducted on September 25-26,2012 Record of operations result contained in the Plant Unit Report conducted periodically every 1 month. Plant Unit Report is a compilation of reports of each operational division activities compiled by Estate Manager. The information contained in the report is a unit plant: a brief review; Areal statement; organizational structure, personnel and residents; Housing,

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buildings, facilities and infrastructure; rainfall; FFB Production; Mature Plants; nurseries; Traction / transport; common costs; production cost; Stock; Capital; Socio-Economic and Security of employees; Fare and additional information in the form of maps. As for the activities of mill, monthly report which includes production and delivery, quality analysis include the quality of production, loss of production, FFB quality analysis received, copy of empty fruit bunch (EFB) aplication, losses and applications, and production cost are available.

Complied

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

Available: 1. Record of soil analysis The results of soil analysis in 2012 in selabak estate conducted by the Institution of environmental research center of Lambung Mangkurat University. Based on the research with sample code MM/EF/12/SLE/PK-1 resulting: soil texture (31.76% sand; dust 27, 405; Liat 40, 84% and clay texture classes), elements of C: 1, 84%, N; 0.34%, pH (H2O; KCl 6.19 and 3.51), 2. Record of Leaf Analysis Record of leaf analysis period of August 2011 is used as a material for determining fertilizer recommendations period 2012-2013. The results of the analysis showed the leaf content (%) Ash, N, P, K. Mg, CA and B (ppm). Recording sample of leaves analysis result of Sangkoh Estate is available, for example in Block E015 division 1with planting year 1997, LSU no SNE 101 implies: (%) Ash 9.83, N 2.80, P 0.160, K 0.944. 0.325 Mg, Ca and B 17.8 0.650 ppm. Selabak Estate e.g. D01 block division 1 planting year 1994, LSU no SLE 101 implies: (%) Ash 10.28, N 2.45, P 0.180, K 1.081. 0.290 Mg, Ca and B 14.6 0.583 ppm. Fertilizer recommendations (type and dose of fertilizer, organic and inorganic fertilizers) applied in each Estate, based on the results of soil analysis (including soil type), leaf analysis, age of the plant and the climate (rainfall). There are also the activities records to maintain and improve fertility through fertilization, empty fruit bunch applications and effluent applications. For example: • Records of JJK organic fertilizer result based on the results of document review in Selabak estate until December 2012 has been realized as much as 3, 535 tons from 8080 tons budget for the period of July 2012 to June 2013 and monitoring of JJK fertilization realization result has been available which has been realized for 312,621 kg until December. • Aplication Records of POME Application Monitoring which in December 2012 has been applied to volume 11.375 meter cubic , the blocks of F013, F012, G011 and G012 and based on permits issued by the Kotabaru Regent with the district's decision No: 188.45/373/KUM/2009 • Record of inorganic fertilizer analysis result, based on documents review until December 2012 is as follows (in kg)

Fertilizer Realization Plan

NK Blend 1.906,613 2,286,249

RP - 634,839

Kies - 555243

HGFB 11,539 17403

Total 1108152 3493786

There are also objectives, targets and action plans to ensure that the company's plan of inorganic fertilization is achieved as recommended and Its targets are to be inorganic fertilizer uniformly performed on all palm oil plantations, in time and appropriate dosage.

Complied

4.3 Practices minimize and control erosion and degradation of soils. Soil survey final report is available and land suitability classes evaluation conducted by the Research Department of Minamas

Plantation for:

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• Lanting Plantation (3249 ha), based on the results of a survey conducted on area of 2518 Ha is known that:

- S3 (less fit): an area of 1312 ha (52.1%) potential to S2 with a few treatments.

- N1 (not appropriate): an area of 547 ha (21.7%) potential to S2 with a few treatments.

- N1 (not appropriate): an area of 658 ha (26.2%) potential to S2 with some treatments such as water management.

• Randi Plantation (3090 ha), based on the results of a survey conducted on an area of 2512 Ha is known that:

- S3 (less fit): area of 36 ha (1.4%) potential to S2 with a few treatments.

- N1 (not appropriate): an area of 2416 ha (96.6%) potential to S2 with a few treatments.

- N1 (not appropriate): an area of 51 ha (2.0%) potential to S2 with some treatments such as water management.

• Selabak Plantation (3845 ha), based on the results of a survey conducted on an area of 3212 Ha is known that:

- S3 (less fit): an area of 939 ha (29.2%) potential to S2 with a few treatments.

- N1 (not appropriate): an area of 2273 ha (70.8%) potential to S2 with a few treatments.

• Sangkoh Plantation (3443 ha), based on the results of a survey conducted on an area of 2516 Ha is known that:

- N1 (not appropriate): an area of 451 ha (17.9%) potential to S2 with a few treatments.

- N1 (not appropriate): an area of 2066 ha (82.1%) potential to S2 with some treatments such as water management.

Strategy pursued for planting on particular slope is by making rorak (silpit), u-shape, and the continued terrace. The Company

has also conducted monitoring erosion by making erosion poles. 12 erosion poles have been available in PT SAA.

Monitoring road maintenance is available in each Estate, for example:

• Selabak Estate: in December 2012, Budget: 19 081 m and Actual: 12 370 m

• Selangkoh Estate. in December 2012, Budget: 15 290 m and Actual: 20 930 m

Based on the document of soil survey review and evaluation of suitability of soil classes in PT SAA, there is no peat in the

work area of the company.

PT SAA has made the management of marginal land with some treatments such as:

Low Area by making water management e.g. Lanting Estate

Undulating Areas by making silt pit, terrace, and individual terace, for example in Selabak Estate, Field F013, Block F20 (Undulating Areas) investment strategy using terrace.

Complied

4.4 Practices maintain the quality and availability of surface and ground water. The Company has conducted water flows protection such as:

Tree Planting Activities in the HVC area

Making signboard dan riparian boundaries pole in Yellow.

Not allowing spraying and fertilizing activity in buffer zone.

Socialization regarding the ban on spraying fertilizing in buffer zone.

Based on the field visit in pond E19 (NKT 4,1) there is a signboard regarding to the buffer zone and also forbidden board to

not allowing to fish, influencing water, menyetrum ikan and cutting down the trees in the pond/river bank. There are also

boundaries of the area which may not been aplicated in the form of yellow paint in pokok sawit.

The company has conducted surface water quality monitoring in one river (S. Tandilang) in its upstream and downstream part

and 12 reservoirs (4 in SLE, 2 in LNE, 3 in RDE, 1 in SLF, 2 in SNE). The results of the quality monitoring of surface water

(rivers and reservoirs) have been evaluated by the company.

The company also has monitored every month, for example te result of the monitoring on May 2012 was BOD = 420 mg / l

and pH = 7.28.

The monitoring of water consumption for domestic operations data is available , such as the use of water in December 2012 in Salabak Plant was 22,310 m3 consisting of 11,615.94 m3 and the use for domestic purpose was 10,694.06 m3.

Complied

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

Integrated Pest Management Program (IPM) of the company include: Program budget and the real planting of beneficial plants of Sangkoh Estate for Turnera Subulata, Casia cobanensis

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and Antigonon leptosus planting.

Monitoring Pest Rats attack carried out periodically every month

Monitoring the nettle caterpillars attack is carried out every month.

Monitoring owl monitor

Controling of bag worms and nettle caterpillars by monitoring and supervising attack signs, and the development of beneficial plants for natural leaves pest control to encourage the population of natural enemies (predators and parasites) of caterpillars and nettle caterpillars and bag worms.

IPM program monitoring conducted by the company include:

Monitoring the planting beneficial plants which in Selabak Estate investment has been realized as much as 3988 meters for the period 2012-2013 of all the 11.223 meter plan

Owl developments monitoring is available which are based on observations in December there were 14 olw’s homes in Selabak Estate and 8 of the are active (there are puppies, bird droppings, dead mice, etc.)

The nettle caterpillars attack monitoring record is available where in Sangkoh Estate until the month of December 2012 there were no nettle caterpillars attack, but in the Selabak estate there is nettle caterpillars attack in November October in 2012 in area of 68 hectares with 15 caterpillars /tail sheath and is controlled with Decis with dose / ha 0.25 liters / ha.

Termite attack monitoring is available which does not reveal any signs of termite attack until December 2012

Ganoderma attack monitoring is available which does not reveal any signs of ganoderma attack until December 2012.

Recordings of socialization and training of the pulsfog usage for fogging team on March 22, 2012 has been available (absences and documentation list record is available) The Company regularly monitors the use of pesticides that are reported each month, for example the monthly usage of December 2012:

Glyphosat. Use 500.30 769 liters with broad application and dose per ha ha 0.65 l / ha of active ingredient / ha, 0.195 liters / ha

Methyl metsulfuron, use of 0.98 kg with a wide range of applications 8 ha and 0.1225 ha dose per kg / ha of active ingredient per hectare 0.024 kg / ha

Fluoroxypir. Use of 73.64 liters, 490 ha area of application. Dose per ha 0.150 liters / ha, 0.045 ha of active ingredient per liter / ha

Triclophyr: Use of 219.70 liters, 490 ha area of application. Dose per ha 0.44 ltr / ha, 0.984 ha of active ingredient

Complied

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

Types of pesticides used by the company are:

Trade Mark Active Ingredients

Sifat Target Registration Number

Lentrek Klorpirifos Systemic Gulma daun lebar RI.798/4-99/T

Kenlon Triklopril butoksida, etil ester

Selective Gulma umum RI. 01030120062433

Metafuron Metyl metsulfuron Selective Broad and Narrow Leaf Weeds

RI. 1224/5-2006/T

Decis Deltametrin Contacs Pengendalian hama RI.387/11-2002/T

Prima up Isoprolamina glifosat

Contac Broad and Narrow Leaf Weeds

RI.1779/11.2007/T

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Starane Fluoroxypir systemic Broad Leaf Weeds RI. 854/7-2009/T

Metaprima Metyl metsulfuron Selective Broad and Narrow Leaf Weeds

RI. 1897/8-2008/T

There are material usage monitoring period 2012-2013 are reported each month. For example, the usage of December 2012:

Glyphosat. Use 500.30 769 liters with broad application and dose per ha ha 0.65 l / ha of active ingredient / ha, 0.195 liters / ha

Methyl metsulfuron, use of 0.98 kg with a wide range of applications 8 ha and 0.1225 ha dose per kg / ha of active ingredient per hectare 0.024 kg / ha

Fluoroxypir. Use of 73.64 liters, 490 ha Broad application. Dose per ha 0.150 liters / ha of active ingredient per hectare 0.045 ltr / h

Chemicals MSDS has been available used in each estate explaining Trademarks, active ingredient, active ingredients contains, LD - 50, Nature of pesticides and pest targets (please also reffer to 4.6.1 above). MSDS is also available in Indonesian as a reference for workers related to the use, storage, and first aid emergency when exposed to the body. Based on the results of the documents verification it is known that the use of pesticide contains dose, target is in conformity with usage instruction of the product. Doses used are still below recommended doses for example for the use of Methyl Metsulfuron companies use a dose of 122 grams / ha which is still below the recommended limit of 250 g / ha for the purpose of broad leaf weeds.

Complied

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

No significant changes in policies related occupational health and safety program for PT. SAA. The OHS implementation form of the policy implemented by creating and delivering Guiding Committee Of Occupational Safety & Health (P2K3) reports to the Labour and Transmigration Agency periodically every 3 months. The report presents the data as follows: Number of Labor, Structure of Guiding Committee Of Occupational Safety & Health (P2K3), Guiding Committee Of Occupational Safety & Health (P2K3) Recommendations, Accident Reports, Cleanliness Inspection Report, Inspection Report Information, Work Environment Chemistry, Harvest PPE Inspection, Periodic Health Examination Records.

Person In Charge of OHS programs in each management unit include: Sangkoh Estate (Mr. Firlan Edi), Selabak Estate (Mr. Nice Tri Ferifianto), POM Selabak (Mr. Saut DH Siahaan). The last Guiding Committee Of Occupational Safety & Health (P2K3) meeting held on November 27, 2012 which was attended by 12 participants (Sangkoh Estate), November 22, 2012 which was attended by 16 participants (Selabak Estate), December 3, 2012 was attended by 7 people (POM Selabak). Agenda of the meeting focused on the use of PPE Discipline, Evaluation Accident and dissemination / reminder of the importance of safety for temporary workers, suppliers, contractors and other employees.

Concern and responsibility of all employees by the company related to the OHSAS done by: providing social security for workers who are paid to the relevant institutions and in time, as well as health checks for employees. From the results of a medical examination in December 2012 (Sangkoh Estate, Selabak Estate, MCC Selabak), all employees of PT. SAA did not identified any serious health problems and could still be addressed through therapy and medication / vitamins.

Hazards Identification, Risk Assessment & Risk Control (HIRAC) applicable to plant and mint, no significant change. Risk Analysis Record is int the form Work Accident Monitoring form in each unit of work, including the results of the analysis for each individual case is very well presented. During a visit to the factory, it shows that the signs and boards such as informative and sufficient HIRAC board to control workplace risks that may occur. Meanwhile, obedience every worker in using Personal Protective Equipment has been fairly well implemented.

Records related to the OHS training programs that have been conducted such as: 1) Sangkoh Estate: P2K3 training (November 27, 2012), training materials include: Safety Briefing, Evaluation and First Aid Emergency OHS Training. Speakers: dr. Irwan Kertajaya, attended by: 15 employees. 2) POM Selabak: Operator Loading Ramp Training, Stews & Engine Room (June 12, 2012). Attended by 9 participants, of which five operators and one Process Supervisor. While examples of OHS Training Program 2013 in Sangkoh Estate, such as: Monthly Meeting P2K3 (monthly); Firefighter Training (January & July 2013); Harvest Training (February and August 2013); FFB Transport Training (March & September 2013); fertilizer Training (April & October 2013); Team Spray Training (May & November 2013); Emergency Training (June and December 2013); MSDS Training (July & December 2013).

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Emergency response procedures have not changed in the document, but there are significant development regarding the implementation of training to workers. Evacuation routes and lay-out distribution extinguisher at each work station either in the garden or in the plant looks very adequate.

Completeness of emergency response equipment and safety available is quite good and is maintained, the equipment includes: extinguisher, Hydrant, First Aid Emergency Box, Water Tank and PPE. Example: Evidence of PPE Helmet handover (July 25 2012) to 9 harvest employees; 3 employees of FFB, 1 supervisor. Workers who have been trained OHS program are in suitable work place / location. The results of field observations POM: Mr. Eryadi (Opr. Grading), Mr.. Joseph (Opr. Sterilizer), Mr.. Ambran (Opr. Boiler). The number of occupational accidents in PT. SAA during the period from July to December in 2012 by 2 cases (Sangkoh Estate), 31 cases (Selabak Estate), 1 case (POM Selabak). Recordings are stored either in monthly Safety Officer, while the evaluation of the determination of root cause and corrective actions are listed in the form Accident Investigation Reports every event in the form of recommendations.

Complied

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

Program Training and Human Resources Development OF PT. SAA in 2013 are 16 items and 15 kinds of program participants (positions). This type of training such as: Problem Solving Training (July 2013), Leadership Training (May, November 2013). There are records related training programs that have been implemented OHS example: 1) Sangkoh Estate: Training P2K3 (27 November 2012), training materials include: Safety Briefing, Evaluation and Training First Aid Emergency OHS. Speakers: dr. Irwan Kertajaya, attended by: 15 employees. 2) POM Selabak: Operator Training Loading Ramp, Stews & Engine Room (June 12, 2012), attended by nine participants,such as: five operators and one Process Supervisior

Complied

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

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

Environmental Impact Assessment (EIA) approved as letter No. 008/ANDAL/BA/II/95 dated February 27, 1995 with

an area of 77 290 ha of the study area, consisting of 4 PT (Langgeng Mutiara Makmur, Laguna Mandiri, Paripurna

Swakarsa and Swadaya Andika). Broad of Swadaya Andika in the study was 11 250 ha. The capacity of each plant

in the EIA is 60 tons FFB / hour.

Management Plan and Environmental Monitoring Plan approved in accordance with Letter No. 049/RKL-

RPL/BA/III/95 dated on March 30, 1995.

There are also reports of implementation of the Environmental Management Plan (RKL) and Environmental Monitoring Plan

(RPL) Period of 2012 (January-June 2012) Plantations and Palm Oil Processing Factory of PT. Swadaya Andika which has

run all aspects of the EIA document. Available evidence of RKL and RPL delivery to BLHD South Kalimantan Provincial

Government on 30 - 10 - 2012 (Wet Stamp).

There are no changes in operations or activities of the company's acreage.

Complied

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

The results of the identification of protected species are described in the document Assessment for HCV PT Swadaya Andika for Selabak, Randi Plantation and Sangkoh Plantation. From the analysis made by the identification of HCV conducted by Indonesia Sustainable Palm Oil Foundation, there are areas are still forested and identified as HCV 1.3, located in the Randi Plantation Block L 26, K 17-19, L 20-21, and J 26. Selabak Plantation in block D 17-21, and Sangkoh Plantation in Block I, 28/29, I 30, I 37/37, G 29/30, F 30/31, D 32, E 32 and G 35/36.

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From the results of identification:

- Areas of HCV 1 (region have a high level of biodiversity in the broad location of Block L 26 2.69 ha block with an area of 29.03 K 17-19 ha, block L 20/21 wide 15.97 ha, with a block J26 16.04 ha, block K26 - 27 and L 27-L 28 with an area 89.24 ha. Blok K 27-29, A 28-29, and 29-30 with a Block L 75, K 70 and Block 23, J32 -J34 with a 26, 27 ha.

- HCV Area 2 (the landscape is important for ecological dynamics naturally) on the location of Block K17-19 with an area of 29.03 ha, Block L 20/21 wide 15.97 ha, Block J 26 with an area 16.04 ha, block of K 26-27 and L 27-L 28 with 89.24 ha wide. Block K 27-29, A 28-29, and 29-30 with a Block L 75, 70.

- Areas of HCV 3 (areas that have rare ecosystems) in Block K locations 27-29, A 28-29, L 29-30, K 32, J 32-34 covering 101, 97 ha.

- Areas of HCV 4 (region provide a natural environmental services) at the location block H9, H10, H 11, H 12, H 14, H 16, H 19-H 21, I 10 - I 24, J 23-26 square 92, 51 ha. Block H 06, H 07, I 07, J 08, J 09, K 16-K19, L 20 - L 25 area of 61.41 ha. Block J 21 of 3, 67, L 22 covering 0, 36 ha, H 21 covering 0, 15 and J9 covering 0, 22 ha with a total of 158, 32 ha.

- Area HCV 5 (Region which has an important function to fulfill the basic needs of local communities, the location of Block J 21 of 3, 67 ha, and 22 L of 2, 53 ha.

Protection measures implemented are: 1. Make management plan of HCV Program in PT Swadaya Andika 2. Creating Buffer Zone Management SOP (024/SAA-PBZ/10) and to ensure the application of chemicals in

riparian Inspection Work Instructions of Chemicals Non Application issued in the area of the buffer and also conducting the monitoring of the chemical examination in bufferzone a week after the spraying and 1 day after fertilizing, the event of application of fertilizers is carried out by collecting cleaning then applied on the principal outside the buffer zone. In addition, prior to the application of chemicals do safety briefings.

3. Make signboard and riparian boundaries in yellow paint. 4. Tree planting activities in the area of HCV. 5. Installation of warning signs / restrictions in HCV areas 6. The appointment of a special officer who has been assigned to carry out the monitoring and management of

HCV areas.

Complied

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

PT SAA has made identification of the sources of waste and pollution in POM and Estate. Waste generated is classified into

non hazardous waste and hazardous wastel.Hazardous wastel is managed in collaboration with a third party that has

obtained, while the non- hazardous waste is managed by considering the health and environmental aspects.

Available documentation of waste, such as:

Hazardous waste in landfill, set out in the balance of hazardous waste e.g. hazardous wastein data in October-

December 2012 as: used Accu: 315 Kg, 110 Kg stored in Hazardous Waste Landfill , 205 Kg sent to PT Maju Asri

Jaya Utama ( Manifest No: KQ 0.01283 million).

Application of Effluent (POME) contained in the Manager Report, for example POME application in December 2012

as 5.8000 in Block F013 Block F012 M3 and M3 as 3935.

Available:

The temporary storage of hazardous waste in accordance with the decree of Kotabaru Regent No. 188.45 / 126 /

KUM / 2011 Date on March 8, 2011 regarding to Temporary Storage of Hazardous Waste Permit and of PT Swadaya

Andika in Manunggal Lama Village, Sungai Durian sub District, Kotabaru District of South Kalimantan Province.

Types of waste allowed to be stored is used lubricating oil (used oil), used filter, used bulbs, rags, used batteries /

batteries, and used medical waste / used chemicals / pesticides packaging trace. The deadline for waste storage

can be stored for 180 days in condition of hazardous waste generated is less than 50 Kg / day.

Environment Agency Certificate of Kotabaru District No.660/439 / BLHD dated on November 26, 2012 which

describes the hazardous waste storage permit of Randi Estate, Selabak Estate, Lanting Estate and Sengkoh Estate

is no more than 15 days.

Monitoring of waste is available, such as:

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Monitoring of hazardous waste contained in the hazardous waste Balance Sheet.

Monitoring of POME Application contained in the Monthly Report Manager.

Monitoring the production and use of shell and fiber to fuel boilers at the Daily Production Report and Monthly

Report to GM.

Complied

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

The average of actual fiber use and shell is over budget (141%). This is because the supply of fruit and FFB production is bigger than the planned budget, so boiler operations become longer. While the actual of turbine and generator usage average is efficient enough compared with the budget. This is influenced by the capacity of the turbine diesel power is maximum from 900 to 1.000 KWh, while the total load reaches 700-750 KWh.

Complied

5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice.

The company owns Agronomy Reference Manual. No. 110/EST-ARM/08, where section 4 Land Preparation clause 3.1 point (b) states that clearance shall be guided by the Directorate General of Plantation’s Decree No.. KB.110/SK/DJ BUN/05.95 dated May 30, 1995. Based on the interview with the plantation assistan it is known that if there is replanting activities carried out, the land clearing activities is accordance with applicable of SOP (Agronomy No. Reference Manual. 110/EST-ARM/08). The company has a fire fighting procedures (014/SAA-PKB/10) governing the control in case of fires. Fire Fighting done by making a firefighters team, identification of water sources, an inventory of fire-prone areas, making fire signs, building up a fire tower and monitoring of reporting. There is also a map of potential fire-prone areas such as Sangkoh Estate is identified that there are 8 fire prone area such as in block 136 Pringgan, G31-29 F31-29, Pringgan E32 to E42, D31 and C31, C17 and B22-21, B25-27 and B30-33 where the area is bordered with the community areas. While in Selabak estate identified fire-prone areas are F001, F002, E001, D001 and D012 where the area is bordered with the community areas. The company already has facilities and infrastructure of fire such as 1 unit of TOHATSU machine, 15 meters of input hose, 10 meter of output hose, 2 nozzle, 6 helmets, water tank, 6 hoes, 6 machetes, 2 unit of Robin machine. The company also periodically conducts routine monitoring or inspection of the fire extinguishers availability every month.

Complied

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

Identifing of sources of pollution and emissions of palm oil mills and plantation is documented in Inventory & Estimating GHG Emissions of GRK (No.: 700/PSQM-GRK-01/12) procedures. Sources of pollution and emissions from plantation operations, such as: changes in land cover, application of fertilizer, peat planting, the use of diesel fuel for generators and heavy equipment, FFB transport activity. While the emission sources at the plant include: the use of diesel fuel for the generator, the boiler combustion activity, use of electricity, the separation kernel process, disposal of effluent (POME) and transportation of CPO to bulking / refinery.

Monitoring of pollution and emissions quality done by testing done by the Company Hygiene & Occupational Health Center every 6 months.

Air Testing Results at Work

Report of PT. SAA Work Place Air Testing Result (Report of Company Hygiene & Occupational Health 2012), dated on April 3, 2012 with the following results:

No Location NO2 (µg/Nm3)

SO2 (µg/Nm3)

CO (µg/Nm3)

TSP (µg/Nm3)

Suhu (0C)

1 In Mills 14,65 3,02 51,81 116,93 31,9

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NAB 5.600 5.200 29.000 10.000

2 In Front of Mills 17,44 4,47 146,95 17,08 32,4

3 Housing 15,22 5,40 282,88 154,24 27,7

NAB 200 900 20.000 230

Acuan: PerGub KalSel No. 053 tahun 2007 tentang Baku Mutu Udara Ambien dan Baku Tingkat Kebisingan

Hasil Pengujian Emisi Sumber Tidak Bergerak PT. SAA, 4 April 2012.

No Stasiun NH3(mg/m3) Cl2(mg/m3) HCL (mg/m3)

HF (mg/m3)

NO2(mg/m3) SO2(mg/m3) Opas. (%)

Partikulat (mg/m3)

1 Cerobong Genset 1

0,01 0,01 0,01 0,02 4,43 0,12 20 266,32

2 Cerobong Genset 2

Sampling was not carried out 3 Cerobong Genset

3

NAB 0,5 10 5 10 1000 800 35 350

4 Cerobong Boiler No. 2

0,01 0,01 0,02 0,06 0,27 3,45 27 420,80

NAB 1 5 5 8 800 600 30 300

Acuan: PerGub KalSel No. 070 tahun 2008 tentang Baku Mutu Emisi Sumber Tidak Bergerak dan Ambang Batas Emisi Gas Buang Kendaraan Bermotor.

Report of Testing Intensity Noise PT. SAA (Report HIPERKES 2012), dated 3 April 2012 with the following results:

No Lokasi Intensitas (dBA) NAB (dBA) Keterangan

1 Depan Kantor 62,1 85 < NAB

2 St. Loading Ramp 71,6 85 < NAB

3 St. Press 92,0 85 > NAB

4 St. Engine Room 100,1 85 > NAB

5 St. Boiler 89,1 85 > NAB

Acuan: KepMenaKer No: Kep.51/MEN/1999 tentang Nilai Ambang Batas Faktor Fisika

The entire of parameters test is below the defined threshold quality standard. As for the testing period-2 was conducted on October 31, 2012 by the Hygiene & Occupational Health Center, according to an email dated on October 25, 2012. But until Surveillance audit in progress, test results are not available yet because Hygiene & Occupational Health Center has not sent it yet.

(5.6.3) The efforts made to reduce pollution, for example:

Source of impact: Diesel Genset 1, the efforts made: Monitoring & Measuring regularly; Preventive Maintenance; Training and Application of SOP. It has been implemented.

POM SLF has analysis / evaluation of related the quality standards parameters that is not appropriate, such as:

- Particulate Boiler Parameter No.2 is above the Environmental Quality Standard: 420, 80 mg/m3 (BML 300), thus the corrective actions include: Improvement of plate-plate that has been porous and settings in an efficiency of fuel consumption, Avoid the wet fuel.

- Noise Parameter: corrective action through the use of Ear Plug and Ear Muff in locations with noise levels> 85 dBA. While preventive action done by conducting audiometric testing for employees who work in high noise areas, once every 6 months.

Audiometric test testing plan will be conducted together with the emissions testing from Hygiene & Occupational Health Center in April and October 2013.

In the management of POME, daily monitoring of Effluent Ponds Checking report is available in weekly period, which consists of some monitoring parameters such as: levees leaks, water levelmto the levees, pH of waste pond, scum

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layer, pump applications condition, pump circulation Conditions , lighting, pool fence condition.

Monitoring of daily waste analysis include: pH, TA (Total Alkalinity), VFA (Volatile Fatty Acids), Normality, Volume H2SO4. Recapitulation POME application in 2011 and 2012.

Year 2011: Total number of 108 156 m3 volume applications Year 2012: Total number of 148 524 m3 volume applications

Complied

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

6.1 Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate the continuous improvement. The impacts of the plantation and mill operations have been monitored. There are several documents, among others:

1. Document of Social Impact Assessment Report of PT SAA conducted by Yayasan Kelapa Sawit Berkelanjutan

Indonesia (YASBI) Indonesia Sustainable Palm Oil Foundation in 2010 that resulted in several recommendations include:

a. Placing people / division is responsible for communicating with stakeholders.

b. Creating SOP of external communication as a reference for public relations to communicate with stakeholders.

c. Making Division or special staff that handles CD / CSR.

2. CSR programs are more partifipatif and sustainable.

3. Environmental Impact Assessment (EIA) approved as letter No.008/ANDAL/BA/II/95 dated on February 27, 1995 with

the study area of 77 290 ha of, consisting of 4 PT (Langgeng Muara Makmur, Laguna Mandiri, Paripurna Swakarsa

and Swadaya Andika). The Broad of Swadaya Anndika in the study is 11 250 ha. The capacity of each plant in the

EIA document is 60 tons FFB / hour.

4. Environmental Management Plan / Environmental Monitoring Plan in accordance with Letter No. 049/RKL-RPL/BA/III/95

dated on March 30, 1995.

Collecting Social Impact Study Data conducted by collecting data from people around the plantation through questionnaires related socio-economic data. The results of the Social Impact Study has been followed and also described in the Implementation Environmental Management Plan / Environmental Monitoring Plan Report Period II (July-December 2012) PT. SAA regarding the Management and Monitoring Plan on Social Programs of PT Swadaya Andika.

Complied

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

There are SOP No. 704-TQEM-ESH/10 dated on July 1, 2010 about communication adopted by the Manager of Randi Estate,

Manager of Selabak Estate, Manager of Lanting Estate, Manager of Sangkoh and POM of Selabak. The company had

socialized related to the SOP of communication conducted on January 20, 2013 held at Joglo Housing of Selabak staff.

Socialization was attended by 36 pople, consisting of company representatives of Manunggal Lama Village, Saka Doyan

Village, Lanting Village, Bakau Village, Sei Durian Village, Trombongsari Village, Rantau Buda Village, Harapan Baru Village,

and Kalian Village.

There are stakeholder list containing the names and addresses stakeholder information for the Village and su district level,

district, and Province. The names of the registered stakeholders include community leaders and villagers to the provincial

governments, agencies, and nongovernmental organizations.

Aspirations Record (Register incoming mail) and aspiration response (register mail out) are available both in the estate and in the POM. For example, application of greader heavy equipment and compactor machine from of Village Headof Manuggul Lama with corresponding letter No: 392 / DML / KSD / 9/2012 dated on September 10, 2012 and was taken on September 13, 2012 by Manager Estate of Selabak (Tri Bagus Ferifianto) by sending the heavy quipmemnet on September 16, 2012.

Complied

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

There are SOP of Complaint Handling (010/SAA-MPK/10) dated on July 1, 2010. Time of Answering the complaint is determined 14 days after the letter of complaint received by the operational unit and SOP of Conflict Handling No. 050/SAA-PKF/10 dated July 1, 2010. There are also examples of the recorded evidence in the form of implementation of compensation based on the inventory of land, made by consensus with the involvement of the parties (claimants, Muspika, village officials, Plantation Service Department and manager). Measurements are performed by the research and results in the form of compensation agreements and activity plans. Evidence of the land claims settlement record by the Bakau villagers in Randi Estate Plantation, such as: - Minutes of Muspika Meeting, Cooperative Credit Scheme, the Company Prominent Community Leader, dated on

February 9, 2011. - Meeting Attendance Muspika, Cooperative Credit Scheme, the Company Prominent Community Leader, dated on

February 9, 2011. - The photos Muspika meeting, Cooperative Credit Scheme, the Company Prominent Community Leader, dated on

February 9, 2011.

Complied

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

Now available SOP of Identification and Land Compensation Standards (001/PSD-L & AS) dated on June 3, 2011 which includes information of computation phases and indemnity compensation in accordance with stadar issued by the Government of Kotabaru district. The process of compensation is also set in the procedures for handling conflict (050/SAA-PKF/10) dated on July 1, 2010 which the point 6 (Council) involving Plantation Manager, PSD, land owners, village officials and or Muspika and Research section for measurement . There are recorded evidence in the form of: a. The deal of compensation value b. Implementation payments plan c. Minutes of the Council. Sample the Occupational Land Acquisition Phase V Records included in Licensing of the palm oil area of PT. Sawadaya Andika Plantation, Randi Estate in Bakau Village, Pamukan Sub District. Recordings sample consist of:

- Minutes of the Council between 6 representatives of tenants, 2 representatives of PT. Swadaya Andika dated on January 4, 1998. The Minutes respectively signed; 6 representative of tenants, two representatives from the PT. SAA witnessed by Sub District Head of Pamukan Utara and Head of Bakau Village.

- Evidence of Waiver of land in the name of Gusti Mashud from Bakau Village, Pamukan Sub District for waiver of land area of 7 hectares. The agreement between the land owner and the company held on February 9, 1998.

There are also examples of the compensation payment implementation record to land owners in the Bakau Village. The evidence of payment is a payment receipt for land compensation Persil No. 15 area of 7 hectares in the Bakau Village, payment amount is Rp 1,225,000 dated on February 9, 1998. The footage is part of the Land Acquisition Report of Phase V The Occupational Licensing Included In The Area of Palm Oil Plantation of PT. Sawadaya Andika, Randi Estate in Bakau Village Pamukan Sub District.

Complied

6.5 Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.

Based on the review of documents and interviews with employees obtained information that the employee received a base salary above the province minimum wage of South Kalimantan Rp 1,250,000 (South Kalimantan province minimum wage (UMP) in 2012 was 1,225,000 based on Deccree of South Kalimantan Governor No.188.44/0548/KUM/2011) and add the natura in the form of 15 kg of rice every month.

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The company has had an collective labour agreement between worker union of PT. Swadaya Andika Plantation in the period 2011 - 2013 which has approved based on decree of head of Labour and Transmigration Social Agency with letter No. 568/KEP-973/HIPK/PDF/PKB/VIII/Disosnakertrans/2011 about signing of Collective Labour Agreement between PT. Swadaya Andika with Worker union of the PT.Swadaya Andika on August 25, 2011. Facilities and infrastructures provided by the company to the employees in the Housing Inventory, Buildings, Facilities and Infrastructure Document containing matrix of Mess Group and Housing Type (General Mess, GM House, Manager House, Askep House, Assistant / Section Head / KTU House, G1 House, G2 house, G3 House); General Building Type (GM Office, Large Office, Division Office, Warehouse, Workshop, Meeting Hall, Building for kindergarten, Elementary School,Junior High School, vocational High School, Junior Hostel, clinic, library, Laboratory Building , Employee Center, Mosque, Infants Care, Church, Ration Shops, Post Guard, Tennis Courts. Based on the results of field visits known that most of the housing are still in semi-permanent condition but the company is conducting employee housing renewal program to be permanent housing. In the agreement / contract with the contractor, the company requires that contractors comply with applicable regulations. For example in the Work Agreement Letter between the company and PT. Catur Manunggal Jaya Abadi to lease heavy equipment with no SPK LNE / SPK-LKL / EXC SK40/XI/2012/036, in Article 8 paragraph 3, explained that in order to create and support the policies of Minamas Plantation management of occupational health and safety (OHS ) - zero accidents, labor contractors must comply with the safety standards of OHS, article 8, paragraph 4 stated that the contractor must follow the related and regulated labor laws. Besides that there is also a clause that if the contractor ignored the provisions of 8.3 and 8.4 above, it will be termination. The company has a Collective Labour Agreement between the worker union of the PT. Swadaya Andika the period 2011 - 2013 which was approved by Decree of the Head of Labour and Transmigration Social Agency of Kotabaru District No. 568/KEP-973/HIPK/PDF/PKB/VIII/Disosnakertrans/2011 about signing of Collective Labour Agreement between PT. Swadaya Andika with Worker Union of the PT.Swadaya Andika on August 25, 2011. Facilities and infrastructures provided by the company to the employees in the Inventory of Housing, Buildings, Facilities and Infrastructure group document containing matrix of Mess Group and Housing Type (General Mess, GM House, Manager House, Askep House, Assistant / Section Head / KTU House, G1 House, G2 house, G3 House); General Building Type (GM Office, Large Office, Division Office, Warehouse, Workshop, Meeting Hall, Building for kindergarten, Elementary School,Junior High School, vocational High School, Junior Hostel, clinic, library, Laboratory Building , Employee Center, Mosque, Infants Care, Church, Ration Shops, Post Guard, Tennis Courts Based on the results of field visits known that most of the housing are still in semi-permanent condition but the company is conducting employee housing renewal program to be permanent housing. In the agreement / contract with the contractor, the company requires that contractors comply with applicable regulations. For example in the Work Agreement Letter between the company and PT. Catur Manunggal Jaya Abadi to lease heavy equipment with no SPK LNE / SPK-LKL / EXC SK40/XI/2012/036, in Article 8 paragraph 3, explained that in order to create and support the policies of Minamas Plantation management of occupational health and safety (OHS ) - zero accidents, labor contractors must comply with the safety standards of OHS, article 8, paragraph 4 stated that the contractor must follow the related and regulated labor laws. Besides that there is also a clause that if the contractor ignored the provisions of 8.3 and 8.4 above, it will be termination.

Complied

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

The company provides the freedom to employees to unionize. It is stated in the Collective Labour Agreement between the company and employees on Article 4 concerning the recognition of the rights of employers and unions. In the article explains that employers recognize the unions as legitimate organizations represent and act and on behalf of all workers who have working relationships with employers.

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There are a meeting record between the company and workers, such as:

Meetings between the companies with worker unions on the establishment of cooperative employees on July 11, 2012 at the offices of Randi estate

Meeting on the November 17, 2011 related to the socialization of Collective Labour Agreement and school transport issues.

A meeting on the January 5, 2012 related to the sosisalization of Worker Union and worker unionization procedures.

Complied

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

Company's policy on age requirements listed in the document of Plantation Management Guidelines issued by the Management of Minamas Plantation dated on August 27, 2010, policy number 724/08/2010. Related to Social Policy at point 6 explained tha Indonesia Plantation Upstream did not take advantage of underage labor (children). Associated with the implementation of these policies, the results of documents verification and interviews with some of the employees on the block E36, it is known that one of the requirements to apply as an employee is to be aged over 18 years.

Complied

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

The company already has a SOP Management Guidelines published by the Sustainable Minamas Plantation Indonesia (Policy No.: 724/TQEM-SPMS/09) page 13, dated on August 27, 2010, include the company's policies on equal opportunities and treatment in employment contained at point 1 which states that: All Staff / Employees must be treated in a fair and equitable in matters relating to the hiring, advancement, conditions and job description, regardless of race, degree, ethnicity, gender, skin color, lack of imperfections (defects), sexual orientation, membership organizations, political views, religion and age. In the document of the Collective Labour Agreement described in Article 16 of the admission of workers, such as:

1. Admission prospective workers Selection: conducted by the employers in accordance with spesifcation and qualifications of required position.

2. General Requirements: An Indonesian citizen, 18 Years Minimum Age at the time of admission or married, healthy body and soul, meet the criteria or requirements of the position required, does not engage in illegal Company, is not in criminal proceedings, not related to the employment relationship with the other party , would be placed in any location.

3. Probation: 3 months, conducted appraisals performance of prospective employee during the trial period. Career development of each employee through performance appraisal. Employees, who are considered to have a strong track record, will be proposed to follow career development training to occupy higher positions and have rights according to the standard position. There are also records in order to evaluate the implementation of career advancement for some employees. Assessment form informs the criteria and assessment results (performance) achieved by each employee. Based on the Employee List Document of PT. Swasadaya Andika per December 2012, it is known that the background of the employees come from a variety of ethnic, religious and regional lines. Based on information from the management that the mechanism of workers recruitment is to give equal opportunity to all parties in accordance with the requirements set by the company with reference to the regulated labor laws in Indonesia.

Complied

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

The company's policy on the prevention of sexual harassment and violence described in the policy to establish a gender commission by Gender Policy, signed by the Executive Vice President (April 2008). This policy aims to ensure the rights, preventing sexual harassment and violence against women, workers, and communities. The company's policy on the protection of reproductive rights is available in the document of Collective Labour

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Agreement Article 33 and 34, such as, policies regarding pregnancy and miscarriage rest for 1.5 months before birth and 1.5 months after delivery by an obstetrician or midwife while still getting full payment and have 1.5 months to break after a miscarriage according to a medical certificate or a midwife. For working women who are still breastfeeding her son, the company dispense a reasonable time to breast-feed her child in the office with the approval of superiors. Break time with a wage policy also applies to employees who experience menstrual period . Implementation of the policy preventing sexual harassment and violence carried out by the Commission Gender of PT. Swadaya Andika period of 2013. The organizational structure of the Gender Commission were: Fuji Esti Wahyuni Chairman, Vice Chairman and Secretary Murniati Fitirana Lilis. Now gender committee work program in 2013 is available as well, such as; socialization committee gender, education, extra fooding, use of PPE, health, religious and committee gender socialization and organizational structure document is available on January 7, 2013 There are evidence records of protection of reproductive rights policy implementation, such as:

Letter of mutation Tiwi Rahayu an SNE age 31 on 16 January 2012 due to the pregnancy from spraying to maintenance work activities.

Letter's of leave. Tiwi Rahayu on August 23 until November 23, 2012 because the pregnancy, based on the salary slip can be shown that she got full salary paid during on leave.

Evidence of salary payment on behalf of Yuli Handayani, SLE, on December she was on maternity leave, based on the relevant payment slip she was paid in full for one month.

Evidence of salary payment on behalf of the employee,Kristiana, SLE, on December she was on maternity leave, based on the relevant payment slip paid in full one month.

Procedures for handling special complaints related gender described in the SOP of Gender Policy Implementation Guidelines of Minamas Plantation (Policy No. 700/PD-KG/10). Handling mechanism is; victims fill complaints form from Gender Committee member, then Gender Committee member who receives a complaint delivery it to the Head of Gender Commmittee and related unit manager. Furthermore, Head of Gender Committee will establish an internal investigation team. Implementation of the investigation should not exceed 2 working days after receipt of the complainant or victim. Investigation report reported and forwarded to the local manager, the investigation report should contain the following topics: detailed of event data, background and chronology, fact-finding. If objective evidence of abuse is enough, the unit manager will take disciplinary action to the offender.

Complied

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

PT. Swadaya Andika has not had outgrower schemes yet, supply of raw materials sourced from the Core Plantation and Cooperative Credit Scheme Plantation Sungai Cengal. Cooperative Credit Scheme Plantation management is not under the management of PT. SAA, so the price of FFB per month information directly submitted by the Plantation Agency to Cooperative Credit Scheme Plantation Sungai Cengal.

The contract made between PT. SAA and Bina Swadaya Karya Cooperative (Cooperative Credit Scheme Plantation Sungai Cengal) is based on FFB supply). that goes to POM Selabak. Within the cooperation agreement there are the provisions of the rights and obligations for both parties, such as:

Point 2: During the Immature plants (TBM) has not paid off the loans and Point 3: Mature Plant (TM) loan is paid off b) Rights of First Party: Accepting the sale of production from the Second party every the next 3 months after cost cutting of installment loan and and interest bank, and so on. No payments made for the supply of fruit Cooperative Credit Scheme Plantation Sungai Cengal is very small (<1%) and classified as 4 years of age cropping (planting year 2008.

Complied

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

There are examples of company contributions record to local development, such as: I. Evidence of CD/CSR Program

1. Realization of CD/CSR Program Periode 2012 Sangkoh Estate, total Rp 89,637,200 2. Realization of CD/CSR Program Periode 2012 Randi Estate, total Rp 34,560,622 3. Realization of CD/CSR Program Periode 2012 Selabak Estate, total Rp 461,370,000

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4. Realization of CD/CSR Program Periode 2012 Lanting Estate, total Rp 124,293,492 Evidence of … PT Swadaya Andika aims to paying taxes in Manunggul Lama Village - Kotabaru District, Total R. 1.376.128.180, payable at Bank BNI Kotabaru, 29 September 2011.

Complied

PRINCIPLE #7 Responsible development of new plantings

7.1 A comprehensive and participatory independent social and environmental assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations. Environmental and Social Impact Analysis Document is Available (Year 2010) and the Environmental Impact Assessment (1995) which contains: • The negative impact of the social and environmental as the consequences of the oil palm plantation • The positive impact of the social and environmental as the consequences of the oil palm plantation • Efforts to minimize the negative impacts. Available:

Environmental Management Plan / Environmental Monitoring Plan (1995), which contains about efforts to manage the impact of plantation activities.

Implementation Document of Environmental Management Plan / Environmental Monitoring Plan period I year 2012 (January-June 2012)

Complied

7.2 Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations. Land suitability reports are available for all Plantation (Selangkun Estate, Sangkoh Estate, Randi Estate and Lanting Estate), equipped with a map. The information provided in this document such as soil type, climate, physiography, and results of chemical and physical soil analysis. There has not been recorded by the implementation of the plantation development based on land suitability due to the activities of the audit, there were no land preparation for the development of new areas or replanting. Replanting activities will be implemented in the period 2013/2014 in the Sangkoh Estate.

Complied

7.3 New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values. Based on the audit, no indication that PT Swadaya Andika have planted in primary forest or any area or required area to maintain or enhance one or more High Conservation Value (High Conservation value). This is evidenced by: a. Planting is done by PT SAA from 2005 to 2010 was in the licensed of Land Use Title area that have been previously

owned. b. The company has been granted permission the forest Waiver by Forestry Minister Decree No. 583/Kpts-II/1994 about the

waiver of most of the forest area of the forest group of S.Manunggal and surrounding area located in Level II Kotabaru district, level II province region of South Kalimantan area of 10,252 (ten thousand two hundred fifty two) hectares for the cultivation of palm oil plantations in the name of PT Swadaya Andhika dated on December 20, 1994.

c. According to HCV Assessment Report conducted by the Sustainable of Palm Oil Foundation (YASBI) in 2009 there was no indication that there are new plantings in primary forest or required as HCV areas.

Complied 7.4 Extensive planting on steep terrain, and/or on marginal and fragile soils, is avoided. Land suitability reports are available for all Plantation (Selangkun Estate, Sangkoh Estate, Randi Estate and Lanting Estate), equipped with a map. The information provided in this document including soil classes, slope grade, limiting factors and solutions. In the undulating land management is done by making terace, individual terace and planting cover crops. There is no excessive cultivation and steep land or marginal land due to the activities of the audit, there were no land preparation for the development of new areas or replanting. Replanting activities will be implemented in the period 2013/2014 in Sangkoh Estate.

Complied

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

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Document of social and environmental impact assessment (Year 2010) and environmental impact assessment (Year 1995) is available which contains negative and positive impacts due to the Plantation and efforts that can be done to minimize the negative impact. Not yet available socialization and indemnity agreement / delivery of land for new development areas or replanting record due to during the audit activities there were no land preparation for the development of new areas or replanting. Replanting activities will be implemented in the period 2013/2014 in Sangkoh Estate.

Complied

7.6 Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements. Up to the activities of the audit there were no new developments or replanted until the period 2013/2014. So there is no people who loss their access and rights of the land; there is no identification and assessment of rights under the law and customary rights record; there is no negotiation process and / or the compensation agreement record; there is no calculation and implementation of compensation payments record, and there is no documentation of process and outcome of compensation claims record. There is SOP of Handling Conflict. No. 050/SAA-PKF/10, but until surveillance audits there are not a new development in the area of PT Swadaya Andika.

Complied

7.7 Use of fire in the preparation of new plantings is avoided other than in specific situations, as identified in the ASEAN guidelines or other regional best practice. Until the first Surveillance audit conducted there is no land preparation for the development of new areas or replanting. Replanting activities will be implemented in the period 2013/2014 in the Sangkoh Estate. The company has a fire fighting procedures (014/SAA-PKB/10) governing the preventive action in case of the fires. Control efforts done by making a team of firefighters, identification of water sources, an inventory of fires-prone areas, making fire signs, building up a fire tower and monitoring reporting, there is also a map of potential fire-prone areas such as sangkoh Estated identified has 8 fires-porn areas as the block I36 Pringgan, G31-29 F31-29, Pringgan E32 to E42, D31 and C31, C17-21 and B22, B25-27 and B30-33 where the area is bordered by the community areas. While in Selabak estate fire-prone areas identified are F001, F002, E001, D001 and D012 where the area is bordered by the community areas. The company already has fire facilities and infrastructure such as1 unit of TOHATSU machine,15 meters of input hose, 10 meter output hose, 2 pieces of nozzle, 6 pieces of helmets, water tank, 6 units of hoes, 6 pieces of machetes, 2 units robin machine. The company also periodically conduct routine monitoring or availability examination of fire extinguishers are carried out every month.

Complied

PRINCIPLE #8 Commitment to continuous improvement in key areas of activity 8.1 Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.

Social Impact

Included in the Environmental Management Plan / Environmental Monitoring Plan Implementation Report Period II (July-December 2012) of PT. SAA related to the Management and Monitoring of Company Social Program Plan based on the results of the Social Impact Study 2010 and has been described in detail. There is Monitoring Compliance with RSPO Principles & Criteria based on the results of internal audit: 20 November to 6 December 2012. The document contains the percentage of compliance with the RSPO P & C Standards and corrective action findings of Stage-2. Discussion of Action Plan was held on December 24, 2012 led by the Head of the Strategic Operations Unit (SOU).

Complied

3.2. Summary of Assessment Report of Supply Chain

Clause (Module D) CPO Mills - Segregation Requirements

1 Documented Procedures

1.1

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

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

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

PT Swadaya Andika has the procedure for Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/SAA, Rev. 01, dated 14th January 2013). The document contains: 1) Objectives; 2) Scope; 3) Definition; 4) General Information; 5) Responsible Person; 6) Procedure; 7) Special Condition; 8) Administrative Tools; 9) Annexes; 10) Declaration. This procedure used for handling discrepancies if any documents of raw material received was invalid and also for product traceability.

Responsible person against the procedure applied is clearly mentioned on this document. All the elements specified in the Supply Chain requirements are covered in the procedure. Reference of this procedure:

- Technical Guidelines for Palm Oil Mills – I Minamas Plantation - Procedure of Records Handling - Working Guidelines for Field Assistant TQEM - Supply Chain Certification Requirements - RSPO Supply Chain Certification Standard, Final Document November 25th, 2011

Status: COMPLY

1.2

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

Documented procedure to separate of raw materials products (certified and non-certified) following are:

Procedure of Raw Materials Identification: Raw materials of POM is FFB’s sourced from Core Plantation, Smallholder Plantation or External Plantation, identified through documents: FFB Delivery (RSPO certified/non-certified mark, Seal nr., Estate, Division, Delivery Date, Quantity and Quality FFB) appropriate with No. Policy: 721/TQEM-PKA/08; Inspection of FFB quality.

Product Identification including: Shell; Fiber; Palm Kernel (No. Silo/Label, No. Lot, No. Serial Product, RSPO certified/non-certified Mark); CPO (based on Serial Number or grade specification, RSPO certified/non-certified mark).

Product Traceability started from FFB receiving up to CPO storage process. FFB processing with RSPO certified and non-certified marked must be separated within production line, from entering Sterilizer until Storage Tank and Bulking.

Status: COMPLY

2 Purchasing and goods in

2.1

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

Selabak POM has separated of all receiving material document (FFB and Loss Fruit) between certified and non-certified by stamp/chop “RSPO certified” and “Non-certified”. Receiving documents following: FFB Delivery Slip (SPB), Weight Bridge Slip (Kartu Timbang) and FFB Quality Inspection Report (Laporan Grading).

Sample document of receiving FFB certified and non-certified, dated 16th January 2013.

FFB Delivery Document (SPB) No. Serial: 434.13.100.482, No. Vehicle: KT 8710 EE, Estate: Sangkoh; Harvesting Block: I018; Amount of Bunches: 441 FFB, Division: I, RSPO certified mark/chop is available on document.

Weight Bridge Slip (No. Ticket: 79608) and FFB Quality Inspection Report

FFB Delivery Document (SPB) No. Serial: 484.12.000.001, Date: January 14th, 2013; No. Vehicle: DA 9957 PC, Estate: Sungai Cengal Smallholders Scheme; Harvesting Block: L001; Amount of Bunches: 787 FFB, Division: 02 KKPA ASC, Non-

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certified mark/chop is available on document.

Weight Bridge Slip (No. Ticket: 79617) and FFB Quality Inspection Report (dated January 14th, 2013). Collection point of FFB certified and non-certified are located separately at Loading Ramp Selabak POM

Status: COMPLY

2.2

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

This clause was stated in the procedure for Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/SAA, Rev. 01, dated 14th January 2013). 7.2 If the monthly production of FFB certified or non-certified processed is over projection, POM should be inform to the Certification Body immediately. CPO and Kernel product must be recorded in the report, then it will be known whether tonnage is excess of budget or not.

Status: COMPLY

3 Record keeping

3.1

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

Under the procedure for Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/SAA, Rev. 01, dated 14th January 2013).

DECLARATION-5: PT Swadaya Andika stated will keep an accuracy, completeness, updating record and report access which include of all these Supply Chain Certification requirements able to reported periodically. Retention time of all records and reports should be at least five (5) years.

Based on document verification, all documents covering of these aspects (Supply Chain) are well recorded and updated since 2012 (after certified).

Status: COMPLY

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

Under the procedure for Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/SAA, Rev. 01, dated 14th January 2013).

DECLARATION-5: PT Swadaya Andika stated will keep an accuracy, completeness, updating record and report access which include of all these Supply Chain Certification requirements able to reported periodically. Retention time of all records and reports should be at least five (5) years.

Status: COMPLY

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

Selabak POM has the records and balancing sheet of FFB’s RSPO certified and delivery of certified CPO/Kernel every month (Monthly Summary of Sustainable FFB, CPO & Kernel March - December 2012) and three (3) monthly period (quarterly). All these document specify of material category as Sustainable Products with Segregated.

Status: COMPLY

3.4 The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts, e.g.

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*product name*/SG or Segregation. The supply chain model used should be clearly indicated.

Since PT Swadaya Andika has certified on March 16th, 2012, there is no request/selling of product with RSPO certified claimed. Nonetheless the company has a relevant document for demonstrable (such as: Sales Contract), if in the case of later on they have request for claim certified product, according to this requirement clause.

Sample document:

Sales Contract No. 00205/SAA/KTR-MKS/LOK/XII/2012, dated December 13th, 2012. The code of RSPO Certified Segregation is available on the document.

Status: COMPLY

4 Sales and goods out

4.1

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

(a) The name and address of the buyer

(b) The date on which the invoice was issued

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

(d) The quantity of the product delivered

(e) Reference to related transport documentation

Since PT Swadaya Andika has certified on March 16th, 2012, there is no request/selling of product with RSPO certified claimed. Nonetheless the company has a relevant document for demonstrable (such as: Sales Contract), if in the case of later on they have request for claim certified product, according to this requirement clause.

Sample document:

Sales Contract No. 00205/SAA/KTR-MKS/LOK/XII/2012, dated December 13th, 2012. The code of RSPO Certified Segregation is available on the document. The document contains of:

a. Name and address of buyer: PT. BERKAH EMAS SUMBER TERANG, Jl. Coaster No. 9, Kelurahan Tanjung Emas, Kecamatan Semarang Utara, Semarang 50174.

b. Date of invoice issued: December 13th, 2012.

c. Product: CPO (Crued Palm Oil In Bulk); Quality: FFA (AS Palmitic): 9.00% max, Moisture and Impurities: 0.50% max; RSPO Certified Segregation.

d. Quantity: 4,000,000 Kg.

e. Annexes: Delivery Order (DO) No. 00225/00205/12/12/L-SAA-MKS. Invoice No. 00395/SAA/XII/2012.

Status: COMPLY

5 Processing

5.1

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

Procedure: Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/SAA, Rev. 01, dated 14th January 2013). Declaration-6 stated:

PT Swadaya Andika states able to perform a physical separation of FFB product between RSPO certified and non-certified. Segregation will started from the beginning of process up to storage tank and will not blended it all or make sure that contamination allowed is less than 5%. Thus the buyers know that product purchased is appropriate with Clause 5.1 on this

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SCC requirements, at least 95% of its product is certified. Production data in the Monthly Summary of Sustainable FFB, CPO and Kernel (March 17th 2012 until January 2013), shows that Selabak POM receiving, processing and produced of 99,8% certified and 0,2% non-certified.

Status: COMPLY

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

Production data in the Monthly Summary of Sustainable FFB, CPO and Kernel (March 17th 2012 until February 2013), shows that Selabak POM receiving, processing and produced of 98% certified and 2% non-certified. Production Daily reports can be traced back to source suppliers of certified estates within PT Swadaya Andika. Traceability document includes: Production Daily Report, Report of Analysis Laboratory, FFB Grading Reports, Weight Bridge Slip, FFB Delivery Slip and Division/Afdeling Daily Report.

Status: COMPLY

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

The crush operator conforms to these requirements for segregation

The crush is covered through a signed and enforceable agreement

Installation of processing line at Selabak POM, from CPO until Nut Cracker process are integrated in one line management, there is no palm kernel crush separately managed.

Status: NOT APPLICABLE

6 Training

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

SCC training has been conducted on March 15th, 2013 at POM Office. Training material: Matrix of SCCS training Module D – CPO Mill Segregation, attended by 14 people from Mill and Estates. Minutes of training event is available and well recorded by the organization.

Status: COMPLY

7 Claims

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

On the Procedure: Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/SAA, Rev. 01, dated 14th January 2013). Declaration – 7: CLAIM PT Swadaya Andika states that all products (CPO and PK) with RSPO certified claim is appropriate to the RSPO Guideline for Communications and Claims. Since PT Swadaya Andika has certified on March 16th, 2012, there is no request/selling of product with RSPO certified claimed.

Status: COMPLY

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3.3. Conformity Checklist of Certificate and Logo Use

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

X or√

S1 Since PT Swadaya Andika certified on March 16 2012, there are no logo used in their products

(on and off products)

Status:

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

X or√

S1

Status:

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

X or√

S1

Status:

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

X or√

S1

Status:

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3.4. Summary of RSPO Partial Certification.

Total companies observed (0.8 √Y) Where Y is the total of uncertified RSPO registered company The Management Unit name : Mustika POM and PT Sajang Heulang full manage scheme smallholders (KKPA) Date of Observation: May,01, 2012

2.1

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

X or√

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

Status: Full Compliances

2.2

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

X or√

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

Status: Full Compliances

6.3

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

X or√

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

Status: Full Compliances

6.4

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

X or√

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

Status: Full Compliances

7.3

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

X or√

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

Status: Full Compliances

7.5

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

X or√

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

Status: Full Compliances

7.6

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

X or√

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

Status: Full Compliances

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PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 35 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

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

3.5.1 Identification of Findings, Corrective Actions and Observations at ST2 Assessment

During the ST2 assessment, there were 0 (none) Nonconformity (ies) were assigned against Major Compliance Indicators, 11 (eleven) Nonconformity (ies) were assigned against Minor Compliance Indicators, 0 (none) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to close all non-conformities shall be verified during next assessment.

No Indicator Non conformance Grade Location Requests for Corrective Action

Time Limit Observation and Date Status Closed date

2011.21 2.1.1 5.3.3

Compliance with applicable regulation (PP. 18 Year 1999/PP.85 Year 1999). There is hazardous waste which has been stored exceeding the retention time of 90/180 days. Based on the monitoring data up to May 2011 there are 9,408 litres of used oil, 75 pieces of used batteries, 25 pieces of fabric cotton waste, 302 pieces of used tires, 225 pieces of filters, 1,178 pieces of used needles, 183 pieces of infusion bottles, 1,226 medicine bottles, and 1,024 pieces of used packaging of pesticide. The Minamas Plantation party has appointed CV. Sumber Agung to be the collector of hazardous waste according to the Circular Letter No. GM-SGM/492/SD/V/2011/S – GM Mill/161/GM-M0/V/2011. Responding to the appointment, the SAA-LMI

Minor RSPO Secretariat Office of Selabak Estate

The company must ensure that hazardous waste from the estate and mill is stored properly according to Government Regulation 18 Year 1999/PP.85 Year 1999.

S1 January 21, 2013 PT SAA has had a licensed TPS Hazardous Material with the kind of waste that must be stored, such as used oil (used oil), used filter, used bulbs, rags, used batteries and used medical waste /used chemicals / pesticides. packaging

Closed 01/23/2013

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ASSESSMENT REPORT

SPO – 4006a.5 Page 36 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

No Indicator Non conformance Grade Location Requests for Corrective Action

Time Limit Observation and Date Status Closed date

management has arranged a memo that the hazardous waste must be immediately sent to the collector (CV. Sumber Agung).

2011.22 2.2.1 License for Land Use Rights. At the time of ST-2, an area covering 62.96 hectares is found which has not been granted for the Land Use Right license, located in Randi Estate. The area is in the process of acquiring license in Committee B in the Regional Office of National Land Affairs Agency, South Kalimantan Province (process of completing the requirements of HGU License) in accordance with Letter of Regional Office of National Land Affairs Agency of South Kalimantan No. 0046/9-63/I/2010 dated January 23, 2010 regarding on Application for Land Use Rights in the name of PT Swadaya Andika along with the Letter of Regional Office of National Land Affairs of South Kalimantan Office No. 540.2/46/179/BPN-43 dated March 5, 2009 regarding on Field Research for Land Investigation on B in the name of PT Swadaya Andika covering 62.96 Ha in Kotabaru District.

Minor RSPO Secretariat Office of Selabak Estate

The organization must review the process of Land Use Rights (HGU) license application for the area covering 62.96 hectares in Randi Estate by coordinating with the National Land Affairs Agency.

S1 January 22, 2013 There are new evidence in the form of a letter Number 104/SAA/PSD-Bjb/XI/2012 dated 13 November 2012 on the application of Land Use Title on behalf of PT. Swadaya Andika sent to the National Land Agency as a form of follow-up of required completeness requirements that must be met for the issuance of Land Use Title Certificate .

Closed 01/23/2013

2011.23 4.1.2 Operational Procedure. The Technical Guidelines for Mill I of Minamas Plantation No. Policy 110/POD-FAC/07

CFA Selabak Mill Office

The organization should be able to provide operational activity procedure of the

S1 January 22, 2013 Plant operational procedures have been understood as

Closed 01/23/2013

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PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 37 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

No Indicator Non conformance Grade Location Requests for Corrective Action

Time Limit Observation and Date Status Closed date

is available. However, the SOP has not been ratified by relevant officials.

mill which is ratified by the authorized personnel.

guidance and controlled, but the company is recommended to better ensure the documents control by giving approval mark.

2011.24 4.2.2 Realization of Land Application. Land Application activity covering 90 hectares which are located in Block G14, G15, G16, F16, F17, F18 and F20 are still in the area permitted by the Decree of Head of Kotabaru District No. 188.45/373/KUM/2009 that covers 144 hectares, but there are additional application Blocks in G14 Division II and F18 Division III outside the area permitted. The company made minutes for transferring some locations of Application Land to Block G14 and F18 which were signed by the Chairman of SOU and Manager of Selabak Estate on June 10, 2011, considering topographic condition that causes negative effect on the environment.

CFA Block G14 Division II and F18 Division III

The organization should review the policy of land application additional area in G14 Division II and F18 Division III which are located outside the area permitted by District of Kotabaru Year 2009. Related to this permit, PT SAA needs to coordinate with Regional Environmental Agency.

S1 Januari 22, 2013 Based on the results of documents verification and filed visits of Block F13 previously was G14 (re blocking) and are still in accordance with the permission granted.

Closed 01/23/2013

2011.25 4.3.1 7.2.1 7.4.1

Marginal Land Map. The company does not have a marginal land map that is based on the detailed land survey. The company is in the process of implementing detailed land survey in Randi Estate and Lanting Estate, while the detailed land survey for Selabak

Minor RSPO Secretariat Office of Selabak Estate

The organization must provide marginal land map of Selabak and Sangkoh Estate.

S1 January 22, 2013

Suitability Classes Land For

Palm Oil Survey and Evaluation

Final Report is available in

Sangkoh Plantation, Selabak

Plantation, Randi Plantation,

Closed 01/23/2013

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ASSESSMENT REPORT

SPO – 4006a.5 Page 38 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

No Indicator Non conformance Grade Location Requests for Corrective Action

Time Limit Observation and Date Status Closed date

and Sangkoh Estate will be conducted in 2012.

and Lanting Plantation. This

document is provided with a

map scale of 1:50,000 and

comes with a description of the

block.

2011.26 4.3.2 Erosion Level Measurement. The company has been pursuing a strategy for planting in areas with certain slope and has been monitoring the effectiveness level of management by measuring the erosion, but the erosion measurement application needs to be improved with the addition of sample points to consider representation of condition of the measured areas.

CFA RSPO Secretariat Office of Selabak Estate

The organization is advised to add sample points to the erosion measurement based on the representation of condition of the areas being measured.

S1 January 22, 2013

Erosion poles are avaiable in

all estate, for example, there are

4 erosion poles in Sangkoh

Estate, there are 4 erosion

poles in Lanting Estate, there

are 1 erosion pole in Selabak

Estate, and there are 3 erosion

poles in Randi Estate.

Closed 01/23/2013

2011.27 4.4.2 Monitoring of River Water Quality. The company has conducted the monitoring of river water quality but has not yet described the representation of the river water quality in the Inlet and the outlet, as set out in EIA studies related to the test results of River Tandilang water quality which exceeded the quality standard of environment (BOD and Nitrogen based on Government Regulation No. 82 Year 2001).

Minor RSPO Secretariat Office of Selabak Estate

The organization must conduct the monitoring of water river quality comprehensively according to EIA; this is related to the test results of River Tandilang water quality which exceeded the quality standard of environment based on Government Regulation No. 82 Year 2001.

S1 January 22, 2013

The company has monitored

water quality and has evaluated

and done measurment related

to monitoring results. The

results of water quality

monitoring of Tandilang River

inlet and outlet are available.

Closed 01/23/2013

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PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 39 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

No Indicator Non conformance Grade Location Requests for Corrective Action

Time Limit Observation and Date Status Closed date

2011.28 5.2.2 Management of HCV. Based on the HCV identification result, there are rare species of Hose’s Langur Lutung banggat (Presbytis hosei), in Block K18/19 in forested areas and around Block L26 and J26. The company has not specifically managed the species.

CFA RSPO Secretariat Office of Selabak Estate

The company is advised to specifically manage the species of Hose’s Langur (Presbytis hosei).

S1 January 22, 2013 Document of HCV management plan has been available in PT. SAA and Management of Conservation Areas and Buffer Zone (including HCV Monitoring Program Year 2013 in each of the estate).

Closed 01/23/2013

2011.29 5.5.4 Socialization of APAR Using. There is not enough evidence that the company has conducted overall socialization to the employees on how to use fire extinguishers (APAR). For example, based on interviews to the employees in Selabak Mill housing, the training on how to use APAR has not been conducted.

CFA Employees Housing of Selabak Mill

The company is advised to socialize how to use fire extinguishers (APAR) to the employees.

S1 Januari 22, 2013 The company had socialized the use of Fire Extinguisher to the employee on June 22, 2012, and June 25, 2012.

Closed 01/23/2013

2011.30 6.5.2 Collective Labour Agreement of the Employees. Until the Stage-2, there is not enough evidence that the Collective Labour Agreement (PKB) documents for period 2010-2012 for the level of employee have been ratified, based on the information from management of PT SAA, there are some procedures in Social, Labour, and Transmigration Service (Disosnakertrans) that are needed to be fulfilled before the Collective Labour Agreement is signed and it is still in the process of completion.

CFA RSPO Secretariat Office of Selabak Estate

The company is advised to coordinate with the agencies related to the ratification of Collective Labor Agreement Period 2010-2012 for the level of employees.

S1 January 22, 2013 Collective Labour Agreement has been available for level employees who are authorized by the Head of the Department of Social Welfare and Labor Kotabaru Regency South Kalimantan on August 25, 2011.

Closed 01/23/2013

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ASSESSMENT REPORT

SPO – 4006a.5 Page 40 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

No Indicator Non conformance Grade Location Requests for Corrective Action

Time Limit Observation and Date Status Closed date

2011.31 7.3.1 Conformance with the Legal Spatial Plan. There is not enough evidence that the company has conducted the overlay of the working area map with the Spatial Plan Map (RTRWK) of Kotabaru District and Spatial Plan (RTRWP) of South Kalimantan Province related to the additional of Land Use Rights covering 62.95 Ha.

CFA RSPO Secretariat Office of Selabak Estate

S1 January 22, 2013 Just as ST2 company has not done the work area maps overlaid with the District Spatial Plan Map (RTRWK) of Kotabaru and the Provincial Spatial Plan Map (RTRWP) of South Kalimantan associated with the addition of the concession area of 62.95 Ha.

Open Refer to OFI No. 7 Major 7.3.1

3.5.2 Identification of Findings, Corrective Actions and Observations at S1 Assessment During the S-1 assessment, there were 0 (none) Nonconformity (ies) were assigned against Major Compliance Indicators, 0 (none) Nonconformity (ies) were assigned against Minor Compliance Indicators, 7 (seven) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to close all non-conformities shall be verified during next assessment.

No Indicator Non Conformance Grade Location Request for Corrective

Action Time Limit Observation and Date Status

Closed date

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PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 41 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

3.5.3 Opportunity for Improvement

No Ref.Std Description/Explanation

1 Major 3.1.1

The company has an opportunity to add information in the business plan (budget) according to the recommended by RSPO include: Quality planting materials, crop projections (trend yield FFB), Trends in OER, Production Cost of CPO per Ton, Estimated Price (FFB, CPO, PK, PKO), Financial Indicators, FFB tren average in 3 year for the last 10 years.

2 Major 4.1.2

Recommended to better ensure the documents control by giving approval mark (please reffer to CFA. 2011.23).

3 Major 4.7.2

Recommended to complete the administrative secretary in of OHS in the structure of Guiding Committee Of Occupational Safety & Health, according Permenaker No.. 4 1987.

4 Minor 5.2.3

The company recommended to take measures to control illegal activities in areas of HCV and complement the signs and warnings boards (sign board), for example, around B28 - 29 Sungai Durian

5 Minor 5.3.2

The company recommended analyzing the waste to ensure that the company will manage waste and more efficient use of material.

6 Minor 5.6.1

The company recommended performing audiometric testing for employees / operators working in high noise areas.

7 Major 7.3.1

The company recommended to perform the work area maps overlaid with the District Spatial Plan Map (RTRWK) Kotabaru and the Provincial Spatial Plan (RTRWP) South Kalimantan associated with the addition of the concession area of 62.95 Ha (please reffer to CFA. 2011.31)

3.5.4 Noteworthy Positive Components

No Ref Std Descritption

1

Have achieved RSPO certificate

2

The company's commitment to implementing the principles of sustainable palm oil

3

Personal competence in their respective fields

4

Supporting Facilities and infrastructure are sufficient for employees

5

PKS Selabak have used continuous steriliser system

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PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 42 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

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

No Public Issue Company Response Auditor Response

1. Vice Head Sub District of Pamukan Utara

In general, the positive benefit of the Company’s presence is felt by the community in the form of opening community access, community economic growth as well as aid to villages.

2. The Representative of Sub District Head of Sungai Durian and Pamukan Utara & BPD Desa Bepara

Limit working area of PT LMI / SAA (HGU) is not yet clear to the public.

a. At the time of the measurement

Land Use Title Area by National

Land Agency, the company

involves representatives of the sub

district and one of the document

(copy) one is stored in the local

district. This could happen

probably because of lossing of

information at the turn of the

district officials.

b. Until just before the

implementation of the Public

Consultation unprecedented

demand for information from the

district about the concession.

PT. SAA has limited working areas such as Land Use

Title Poles and made the maintenance program. Among

the efforts that have been done is to identify the land use

title, cleaning and coordinate with relevant agencies

regarding to the missing poles.

3. Representative of Sub Disrict Head of Sungai Durian, North Pamukan & Representative of Bepara Village and Chief of Pamukan Utara

The company transparently giving information, such as employee requirement announcement, shcoolarship and CSR program.

In order to improve the transparency of information, the company has made several attempts such as; a. Announcement of the scholarship to the village office around the company. b. Involving the communities in the implementation of CSR programs, such as CSR program implementation

Socialization of recruitment mechanism and scholarship information are more open to the public.

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agreement between the company and Bakau Village. c. For the fulfillment of labour for certain segments, the company prefers the locals but for positions requiring special skills course will be opened according to the requirements and qualifications match the job.

4. Representative of Sungai Durian and Pamukan Utara Sub District

Compliance with Government regulations related to ID employees from outside the area, TIN, Buiding Construction Permit, HO Permits, EIA and waste management permit.

The Company has met all of the licensing process as intended, and indeed some of the documents issued by the regent level, the district should get a copy of the establishments in the district.

PT SAA expected to coordinate with the district regarding the transparency of the company's legal documents.

5. Community Leaders and Village West Pamukan Bakau

Management of Plasma, for example;

a. Realization of Plasma construction is very slow.

b. Plasma Construction of is at least 300 hectares in a single stretch of

land while Public’s has no that same length in one stretch

(Fragmented) It is delivered by BPD of Bakau Village.

c. Plasma construction requires technical assistance and

infrastructure; it is delivered by the Deputy of Sub District Head of

North Pamukan.

d. Maintenance of plasma is less than optimal from the company for

example a high mortality rate and frequency of fertilization less than

once (once fertizied during the 4 years).

Plasma Company Management done

by a special management with the

same level of manager, and it is

recognized that the development of

plasma had problems that cause

substandard development of plasma

processes, such as;

a. The delay of the land clearing

process related to the plasma

prospective area and legal permits that

must be required beforeby the plastma

prosepective area

, before the clearing it is beyond the

authority of the company, for example,

the determination of land suitability,

Plasma is under the responsibility of Plasma Manager, Plasma is authorized separately from the management of PT. SAA so that all operational activities related to the development of plasma managed by Cooperative Credit Scheme (KKPA) Management. Based on interviews with Manager Plasma (Irawan Adji), recognized that the development of plasma having problems especially land avaibility

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SPO – 4006a.5 Page 44 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

regent permit for Plasma

Development, CP-CL determination.

b. The minimum area of 300 hectares

is the limit of economic calculation for

the company to build plasma however,

for the following time the company will

review the policy if it can be minimized.

c. Technical Issues plasma

development will surely be regulated in

the agreement between the

cooperative in this respect as a place

for Plasma farmers and the Company

regarding to the rights and obligations

of each party.

6. Chairman of the Pamukan Utara People People's demand for the company's obligation to provide 20% plasma of the core area, it is submitted.

Overall Sungai Durian region, the company has realized and built plasma for more than 20% of the core area.

7. BPD of Bakau Village, Batu village community leaders, community leaders of Betung Village and community leaders Sungai Durian Village

Distribution of company management benefit should be done evenly.

Companies implementing CSR based on programs that have been planned related to either the target or the volume of activity. This will limit the equitable distribution because the approach taken is a priority program, however, for certain cases equalization approach remain to be done, for example; distribution of sacrificial animals is for all people regardless of their religion.

Minamas Group Cooperation of Sungai Durian Durian Area (PT SAA and LMI) has allocated the construction of plasma which is managed under the Management of KKPA / Plasma (Irawan Adji). Described in 6.11.1. The company has been trying to get involved in community development with the provision of road improvements, education, improvement of facilities and recruitment of local labor. CSR Program arranged by involving relevant stakeholders.

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SPO – 4006a.5 Page 45 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

8. Sungai Durian Community Leaders

Minimization of environmental impact especially negative impact on the river water as a source of water for the residents.

Against this issue the companies responds as follows; 1. No big rivers located within the working area of PT SAA. 2. The position of the company is the downstream flow of the Durian River 3. There is a gold mining and coal mining in the region upstream of durian River (Banian area) which is a huge potential decline in water quality. 4. Until the public consultation has not been conducted there is no communities’ complaints against the quality of river water they used. 5. Management of the company's commitment to the management of the buffer zone in the area of the river that they are working on maintaining the quality and functions of these rivers

Indicators described in 4.4.2. The Company does not undertake waste plabt disposal to water bodies, but applied on land (land application). Tests have been conducted on the quality of river water by Commodity Testing Laboratory of Environmental Research and Industry Standardization Banjar Baru Regency measurement results indicate the presence of measurement parameters that exceed Environmental Quality Standards (BML). Therefore, the need for more attention to the related issue.

9. Representative of Sungai Durian Sub District

Expects the opportunities for people to sell FFB to Palm Oil Mill of the Company.

The Company recognizes that until the implementation of Stage 2 has not been done receiving fruit from farmers of outside the scheme of plasma (Admission is free) due to the limited capacity of mill (PKS), however, with the construction of a new plant in Betung Estate allows the policy receive the fruit community with fruit quality meets the company standard.

The Company can not accept FFB from the public

because of limited factory capacity. Based on factory

visits, only selabak plant capacity of 30 tons / hour.

Capacity can not accommodate the entire plantation so

FFB sent to PT. LMI.

10. Urban Village Head of Manunggal Lama

The relationship between the company and the villagers are good, the company has provided some relief, such as assistance for routine

Company in providing assistance related to the program or to the public, is in accordance with existing

Company should implement a CD / CSR program in

accordance with the basic need of local communities.

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operations Village Head of Rp. 500,000/month. An aspiration of the community is the company should be less bureaucratic when dealing with the public.

procedures.

11. Bakau Village Community Leaders

The existence of the company has positive impact on the surrounding community, among others; open employment (there are some people working in PT SAA), open access roads to and from the village who used to only be accessible via the river route, available school buses may also be used by students -student from the village school at the school provided by PT SAA.

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4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

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

Signed on behalf of:

Company Name

Mutuagung Lestari

Management Representative

Lead Auditor

Mohamad Pirabaharan

Oktovianus Rusmin

03/28/2013

03/28/2013

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

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

Date of Contact

1 Head of Pamukan Utara Sub

District

Pamukan Utara Sub District

Focus Group

Discussion

2 Head of Sungai Durian Sub

Disrtict

Sungai Durian Sub District

Focus Group Discussion

3 Head of Bepara Village

Bepara Village

Focus Group Discussion

4 Custom Representative of

Pamukan Utara Pamukan Utara Sub District

Focus Group Discussion

5 Informal Leader of Pamukan

Barat

Pamukan Utara Sub District

Focus Group Discussion

6 Head of Bakau Village

Bakau Village

Focus Group Discussion

7 Head of Betung Village

Betung Village

Focus Group Discussion

8 Informal Leader of Betung

Village

Betung Village

Focus Group Discussion

9 Head of Manunggal Lama Manunggal Lama Village

Interview

10 Informal Leader of Bakau

Village

Bakau Village

Interview

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DATE January 21 – 23, 2013

PLANNED TIME

ACTUAL DURATION

PROCESSES / CLAUSES TO BE AUDITED AUDITOR

Monday, 21/01/2013

08.00-09.00 AM

09.00-12.00 AM

12.00 AM-02.00 PM

02.00 -05.00 PM

Opening Meeting

Document verifications, in e.g.

Principal 1 (Information request & Response)

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

Principal 3 (Company Working Plan and Replanting program)

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

Lunch & Pray Document verifications , in e.g.

Principal 5 (Environment report, HCV area)

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

Principal 7 (new planting or replanting implementation)

Principal 8 (Continuous Improvement)

OR/TM/YWR/AR/MAY

Tuesday, 22/01/2013

08.00 AM- 05.00 PM

Public Consultation Field Visit

Harvesting, Spraying, Upkeep, Fertiliser Application, Buffer Zones, Terracing, Stores, Workshop, etc..

Inspect Housing, health facilities, Interview of Residents, Clinic Staff, Office Staff, Interview External Stakeholders, Local Community

Mill processing, Effluent treatment, chemical storage, Safety and health procedure, interview contractors, etc.

OR/TM YWR/AR/MAY

Wednesday, 23/01/2013

08.00- 12.00 AM

12.00 AM-02.00 PM

02.00 -04.00 PM

04.30.11.30 PM

Preparation of Audit Results (Summary) Lunch & Pray Closing Meeting Travel from PT. SSA to Balikpapan

OR/TM/YWR/AR/MAY

Thursday, 24/01/2013

09.40- 11.40 AM

Travel from Balikpapan to Jakarta

OR/TM/YWR/AR/MAY

Appendix 2. Assessment Program

Page 51: ST-1 [ ] ST-2 [v] [ ] · Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika Darussalam Province PT. Sandika Natapalma Ketapang District – West Kalimantan Province

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 50 Prepared by Mutuagung Lestari for Selabak POM – PT Swadaya Andika

Appendix 3. Glossary

ANDAL : Analisis mengenai dampak lingkungan

B3 : Bahan berbahaya dan beracun

BOD : Biological oxygen demand

CD : Community development

CPO : Crude palm oil

CFA : Comment for action

HCV : High conservation value

HGU : Hak Guna Usaha

HPO : Head Plantation Operation

IUP : Izin usaha perkebunan

LNI : Lanting estate

K3 : Kesehatan dan Keselamatan Kerja

RDE : Randi Estate

RKL : Rencana kelola lingkungan

RPL : Rencana pemantauan lingkungan

SLE : Selabak Estate

SLF : Selabak Factory

SNE : Sangkoh Estate

SPK : Surat perjanjian kerjasama

PSD : Plantation Service departement

PKB : Perjanjian kerja bersama

PKS : Pabrik kelapa sawit

POME : Palm oil mill effluent

PSQM : Plantation Sustainable Quality Management

P3K : Pertolongan pertama pada kecelakaan

TBS : Tandan buah sawit


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