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

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management/Owner : SIME DARBY Plantation Sdn Bhd

Plantation Name : Teluk Bakau POM – PT Bhumireksa Nusasejati

Location :

Rotan Semelur Village, Kateman Sub district,

Indragiri Hilir District, Province of Riau, Indonesia

Certificate Code : MUTU-RSPO/008

Date of certificate issue : 11 October 2011

Date of expiry of certificate : 10 October 2016

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Review

by Approved

by

ST-2 07-11 February 2011 Aryo Gustomo; Nanang Mualib; Faruk

Ahmad Nasir; Marsudi Eko Santoso; Desi Ariyadi Suyamto

Tony Arifiarachman

Tony Arifiarachman

S-1 3–8 September 2012 Octo H. P.N. Nainggolan; Marsudi Eko

Santoso; Ibnu Satria Prabudi; Ardiansyah Taufik Margani Tony Arifiarachman

S-2 30 September 2013 –

3 October 2013

Octo H. P.N. Nainggolan; Naila Karima; Panggading Hariara; Ardiansyah; Sofyan

Lubis Taufik Margani 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

Assessment Submitted

to RSPO on: Approved

by RSPO on: Approved

by Certification Body on:

S-2 2 November 2013 - 18 October 2013

http://www.mutucertification.com/

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Teluk Bakau POM, PT Bhumireksa Nusasejati – Sime Darby

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Bhumireksa Nusasejati Figure 2. Operational Map of PT Bhumireksa Nusasejati

3 4

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 5

1.2 Organization Information 5

1.3 Type of Assessment 5

1.4 Location of Plantations, Mill and Area Statement 5

1.5 Description of Supply Base 6

1.6 Dates of Plantings and Cycles 7

1.7 Tonnage Certified 7

1.8 Other Certifications 8

1.9 Time-Bound Plan for Other Management Units 8

2.0 ASSESSMENT PROCESS

2.1 Certification Body 10

2.2 Assessment Team 10

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 10

2.4 Stakeholder Consultation and List of Stakeholders Contacted 13

2.5 Date of Next Surveillance Visit 13

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

14 38

3.3 Conformity Checklist of Certificate and Logo Use 42

3.4 Summary of RSPO Partial Certification 43

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

44

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 49

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 50

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 51

2. Assessment Program 52

3. Glossary 53

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 3 Prepared by Mutuagung Lestari for Teluk Bakau POM, PT Bhumireksa Nusasejati – Sime Darby

Figure 1. Location Map of PT of PT Bhumireksa Nusasejati

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 4 Prepared by Mutuagung Lestari for Teluk Bakau POM, PT Bhumireksa Nusasejati – Sime Darby

Figure 2. Operational Map of PT Bhumireksa Nusasejati

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 5 Prepared by Mutuagung Lestari for Teluk Bakau POM, PT Bhumireksa Nusasejati – Sime Darby

1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

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

and RSPO Supply Chain Certification Standard November 2011.

1.2 Organization Information

1.2.1 Company name SIME DARBY Plantation Sdn Bhd – Teluk Siak POM (PT Aneka Inti Persada)

1.2.2 Contact person Mohamad Pirabaharan

1.2.3 Company address Organization address: 21, Jalan Gelenggang 50490 Bukit Damansara, Kuala Lumpur

Company adreess (Indonesia) : The Plaza Office Tower Lantai 36 Jl MH Thamrin Kav. 28-30 Jakarta 10350

1.2.4 Telephone +62-21-29926000

1.2.5 Fax +62-21-29922686

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

Mohamad Pirabaharan (Head of PSQM Minamas Plantation, Sime Darby)

1.2.10 Registered as RSPO member 8 September 2004 Registration number: 1-0008-04-000-00

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm Oil Mill and supply base

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT Bhumireksa Nusasejati

1.3.4 Number of management unit 1 (one) Palm Oil Mill and 3 (three) Estates: Teluk Bakau POM, Teluk Bakau Estate (TBE), Nusa Lestari (NLE) and Nusa Perkasa Estate (NPE).

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Teluk Bakau POM Village of Rotan Semelur, Sub-district of Kateman, District of Indragiri Hilir, Riau Province, Indonesia

0° 15' 23.4" N

103° 35' 19.8" E

1.4.2 Location of Supply Base

Name of Supply Base Location GPS

mailto:[email protected]

http://www.simedarby.com/


ASSESSMENT REPORT


Latitude Longitude

Teluk Bakau Estate Sub-district of Kateman, District of Indragiri Hilir, Riau Province, Indonesia

0° 03' 50" - 0° 15' 36" N

103° 28' 28" - 103° 40' 56" E

Nusa Lestari Estate Sub-district of Kateman, District of Indragiri Hilir, Riau Province, Indonesia

Nusa Perkasa Estate Sub-district of Kateman, District of Indragiri Hilir, Riau Province, Indonesia

1.4.3 Tenure

Private

State a. HGU (land title) certificate Number 01 dated 23 May 1996 for 13,900 Ha

b. HGU (land title) certificate Number 02 dated 23 May 1996 for 11,762 Ha

Community

1.4.7 Area Statement

Total area 13.318 Ha

Mature area 8.686 Ha

Immature area 424 Ha

Mill 9 Ha

Infrastructure (Road and Bridges) 807 Ha

Housing 107 Ha

Nursery 52 Ha

Occupation 1.523 Ha

HCV 401 Ha

Others area (Replanting) 1.310 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 (%)

PKS Teluk Bakau 60 180,805.6 40,790.9 22.56 7,963.2 4.4 - -

* Production data on October 2012 – September 2013

1.5.2 Description of Estate(s)

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

Teluk Bakau 4,025 2,956 49,233 19.04 49,233 100

Nusa Perkasa 5,836 3,408 58,837 17.54 58,682 100

Nusa Lestari 3,457 2,746 44,719 16.29 44,681 100

TOTAL 13,318 9,110 152,789 17.62 152,596 100


ASSESSMENT REPORT


* Production data on October 2012 – September 2013

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)

%

- - - - - - -

* Teluk Bakau POM does not received FFB from other source

1.5.4 Product categories FFB/CPO/PK/PKO

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year

Luas (Ha) Total

Teluk Siak (ha) Pinang Sebatang (ha) Aneka Persada (ha) Total (ha)

1994 2,038 - 567 2,605

1995 306 979 1,527 2,812

1996 242 404 420 1,066

1997 - 280 411 691

1998 - 708 - 708

1999 - 375 - 375

2009 - - 429 429

2011 - - 54 54

2013 370 - - 370

Total 2,956 2,746 3,408 9,110

1.6.2 New Planting area after November 2007 853 Ha

1.6.3 Planting Cycle 1st 25 Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production 296,298.00 Tonnes/year

CPO Production 66,815.20 Tonnes/year

Palm Kernel (PK) Production 9,866.72 Tonnes/year

Palm Kernel Oil (PKO) Production - 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)

Teluk Bakau 4,025 2,956 56,164 19.0

Nusa Perkasa 5,836 3,408 59,640 17.5

Nusa Lestari 3,457 2,746 45,309 16.5

TOTAL 13,318 9,110 161,113 17.69

1.7.3 Claim Certified Tonnage of Palm Product


ASSESSMENT REPORT


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 (%)

PKTeluk Bakau 60 161,113 37,055 23 7,250 4.5 - -

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others -

1.9 Time Bound Plan for Other Management Units

Management Unit Location

Hectarage (Ha)

Time Bound Plan

Status

Mills Estates

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

7,734.60 2009 Certified 2010

Manggala PT. Tunggal Mitra Plantations

District of Rokan Hilir – Province of Riau

13,836.00 2009 Certified 2010

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

11,652.00 2009 Certified 2010

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

11,134.00 2010 Certified 2011

Sungai Pinang PT. Bina Sains Cemerlang District of Musi Rawas – Province of South Sumatera

6,513.00 2010 Certified 2012

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

14,779.92 2010 Certified 2011

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

16,601.66 2010 Certified 2011

Alur Dumai PT. Lahan Tani Sakti District of Rokan Hilir – Province of Riau

3,759.02 2010 Certified 2012

Teluk Bakau PT. Bhumireksa Nusasejati

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

2010 Certifed 2011

Mandah 2013 Audited 2013

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

7,794 2012 Certified 2011

Angsana Mini 2010 Certified 2011

Full Manage Plasma (KKPA)

16,000 2013 Certified 2013

Angsana PT. Ladangrumpun Suburabadi

District of Tanah Bumbu – Province of South Kalimantan

6,077.00 2010 Certified 2011

Gunung Aru PT. Bersama Sejahtera Sakti

District of Kotabaru – Province of South Kalimantan

12,704.54 2010 Certified 2011

Ladang Panjang

PT. Bahari Gembira Ria District of Muaro Jambi – Province of Jambi

1,202.04 2010 Certified 2012

Bebunga PT. Langgeng Muaramakmur

District of Kotabaru – Province of South Kalimantan

16,361.77 2011 Certified 2012

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

14,892.00 2011 Certified 2012

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

10,361.18 2011 Certified 2012

Rantau PT. Laguna Mandiri District of Kotabaru – Province of 15,299.80 2011 Certified 2011


ASSESSMENT REPORT


Betung South Kalimantan 2013 Audited 2013

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

4,145.00 2011 Certified 2012

Rantau Panjang

PT. Guthrie Pecconina Indonesia

District of Musi Banyuasin – Province of South Sumatera

10,139.91 2011 Certified 2012

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

8,406.21 2011 Audited 2011

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

2011 Audited 2011

MAS PT. Mitra Austral Sejahtera District of Sanggau – Province of West Kalimantan

8,741.29 2011 Audited 2011

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

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

6,451.99 1,128.90

2011 Certified 2013

Sime Darby has achieved 39 managament units in Malaysia and 21 Management Units in Indonesia RSPO certified. There was change of the Time Bound Plan under Sime Darby cause the Sime Darby postpone the others certification process. Change of the Time Bound Plan explaination: PT Mitra Austral Sejahtera. There are social issue still unresolved from the Serikat Petani Kelapa Sawit (SPKS) Sanggau, however the improvement are in progress. Sime Darby has informed the Time Bound Plan progress, MUTUAGUNG has consider that Sime Darby still comply with the RSPO requirement for partial certification.


ASSESSMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

S-2 1. Octo Nainggolan (Lead Auditor). Indonesian citizen, Bachelor of Agriculture, majoring of Social Economics of Agriculture (Agribusiness). Seven years working experience since 2004 at oil palm Plantation Company in Indonesia and followed several trainings namely: Training of Conservation of Natural and Biological Resources in supporting HCV, Basic Plantation Management Program, Plantation Integrated Pest Management training, Management System Certification (ISO 9001-2008/SNI 19011-9001:2008), Environment Management System (ISO 14001:2004), SMK3 based on OHSAS, RSPO Lead Auditors Training Course endorsed by Proforest and Wildasia, Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course, supply chain certification system training and RSPO Renewable Energy Directive Lead Auditor training. Currently he worked as an auditor at Certification Body. In the assessment activity, he assessed on legal aspect, best practices, environment aspect, social aspect, workers welfare, FFB Processing and supply chain requirement.

2. Ardiansyah (Auditor). Indonesian citizen, Bachelor of Forest Resources Conservation, Department of Forestry, Bogor Agricultural University. He has followed the Management System Certification (ISO 9001-2008), followed several activities such as preparing EIA document for plantation and plantation forest; contribute on several HCV identification and several times following audit activities related to sustainable palm oil certification system as an auditor. In this Assessment he assessed the environmental aspects, HCV, soil and water conservation.

3. Naila Karima (Auditor). Bachelor of Public Health, Department of Occupational Health and Safety. Faculty of Public Health, University of Indonesia. She has experience working in private oil palm plantation companies in Indonesia. Who had attended the training including training understanding the RSPO certification system, ISPO Lead Auditor, and certified Integrated Management System (Occupational Health and Safety Management System OHSAS 18001:2007, Environmental ISO 14001:2004, Quality ISO 9001:2008).

4. Panggading Hariara (Auditor). Bachelor of Social and Political Science. Experience as a social activist in Indonesia and the Commonwealth Commission on Child Protection. Attended training including ISO 9001:2008 Auditor, Social Accountability 8000, Indonesian Sustainable Palm Oil (ISPO) Auditor and has attended five (5) times the related audit system of sustainable palm oil certification as an auditor. At this time his activities in ISPO certification are to assess the worker welfarea and social aspects.

5. Sofyan Hadi Lubis (Trainee Auditor). Master of Science in Natural Resources Management and Environment, Institutut Pertanian Bogor (IPB). Participated in several environmental management workshops, climate change mitigation training and adaptation for agricultural productivity in Southeast Asia, Carbon Forum Asia Update and EIA lecture. He has also been involved as a research team at the Centre for Research, Development, and Climate Change Policy (Puspijak) Ministry of Forestry of Indonesia - Bogor and Research Team in cooperation program IPB - ETH Zurich Switzerland - NUS Singapore. Furthermore, he also worked as a staff environmental / agricultural consulting firm. In this assessment he assessed the environmental aspects and conservation.

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

S-2 Number of auditors : 4 (four) auditors Number of days for S-2 on site : 4 (four) days Number of working days for S-2 on site: 16 (sixteen) working days

2.3.2 Detail process of assessment

S-2 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the

http://www.mutucertification.com/



ASSESSMENT REPORT


Teluk Bakau POM and its supply base (PT Bhumireksa Nusasejati) to the requirements of National Interpretation of the Republic of Indonesia from RSPO Principles and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008 and Supply Chain Requirement for CPO Mill. The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site. Several opportunities for improvement of the results S-2 delivered by the auditors to the management unit and the results are the subject will be verified at the next assessment. Improvement of findings from first surveillance assesment findings were observed by auditors at this ASA-02 assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of ASA-02. Please find Appendix 2 for the assessment program

2.3.3 Locations of Assessment

S-2 PT Bhumireksa Nusasejati has 2 (two) mills (Teluk Bakau POM and Mandah POM) however the scope of certification

in Teluk Bakau mill and supplied from 3 (three) estates, such as: Teluk Bakau Estate (TBE); Nusa Lestari Estate

(NLE); Nusa Perkasa Estate (NPE).

Audit team used 0,8√y formulation to determine estate sampling which became the main focus of the assessment. Based on this formulation, the chosen estate samples for second audit surveillance are Teluk Bakau Estate and Nusa Perkasa Estate and 1 (one) mill (Teluk Bakau POM). Teluk Siak POM:

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

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

Water Treatment Plant. Observation on clean water provision.

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

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

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

Teluk Bakau Estate

Division II, Block E-08. Observation on harvesting activity and personnel understanding on harvesting procedure and criteria for ripe fruit. Interview with harvesting personnel and foremen related to occupational health & safety, implementation of PPE (helmet and boots), working tools and safety, first aid box completeness, social security, wages, company-provided facilities, freedom to establish association and grievance mechanisms

Division II, Block E-06. Observation on nursery as seed-supply for replanting area which implemented in 2 stages: pre-nursery and main-nursery.


ASSESSMENT REPORT


Division I, Block D-03. Observation on replanting area and application of best practices by planting legumes (Moccuna).

Block Spraying System (BSS) House. Observation on pesticide management, from spray equipment, personal protective equipment, rinse place, pesticide used-container wash, and water reservoirs for former laundry that will be reused for application in estate.

Division II Housing. Observation on personnel’s residential building whether it’s permanent or non-permanent, clean water from boreholes well and collected rainfall in water reservoirs, electricity that comes from generators with a capacity of 100 KVA, worship places such as mosques, educational facilities such as kindergartens and elementary schools, healthy facility such as first aid station.

Hazardous waste landfill. Observation on licensed permanent landfill which completed with coordinate points, fire extinguisher, and first aid box.

Emergency Response Station. Observation on fire extinguisher equipment such as "TOHATSU" and "ROBIN" pumps, hose, nozzle, machete, hoe, flashlight, PPE for fire extinguisher personnel are in a good condition and ready to use.

Chemical warehouse. Observation on pesticide management activities which completed with MSDS and warehouse stock card, PPE are available such as masks, gloves, goggles, hazardous material symbol installation.

Central Clinic. Observation and interview with chief of paramedic on health care services, health programs, regular medical examination, first aid, and infectious waste management.

Land Used Tittle (HGU) point 05 in Block D001, Division 1. HGU point is in a good condition and well maintained, thus barrier between company’s estate and community’s estate is clearly visible in the field (bounded by canal).

HGU point 10 in Block D003, Division 1 HGU point is in a good condition and well maintained, thus barrier between company’s estate and community’s estate is clearly visible in the field (bounded by canal).

HGU point 16 in Block D009, Division 3. HGU point is in a good condition and well maintained, thus barrier between company’s estate and community’s estate is clearly visible in the field (bounded by canal).

Nusa Perkasa Estate

Division III, Block D-012. Observation on harvesting activity and personnel understanding on harvesting procedure and criteria for ripe fruit. Interview with harvesting personnel and foremen related to occupational health & safety, implementation of PPE (helmet and boots), working tools and safety, first aid box completeness, social security, wages, company-provided facilities, freedom to establish association and grievance mechanisms

Division I, Block E-002. Replanting activities are done mechanically using heavy equipment with overthrow and chipping without burning

Division IV, Block E-011. Observation on conservation area (HCV-1 and HCV-3) that has been well managed by trained officer whom appointed by company. Information board on HCV location and pulai crop cultivation is available.

Division III, Block D-010. Observation and interview with spray personnel and foreman regarding working procedure, PPE implementation, first aid in accidents, occupational risk, periodic checks, the implementation of reproduction right (pregnancy leave, menstruation leave and other special treatment), the availability of information board on being sprayed area, spray ban for pregnant and lactating women, wages, spray ban on riparian areas, housing facilities, grievance mechanism on gender issues.

Emplacement Kemuning Division III. Observation on personnel’s residential building whether it’s permanent or non-permanent, clean water from boreholes well and collected rainfall in water reservoirs, electricity that comes from generators with a capacity of 100 KVA, worship places such as mosques, educational facilities such as kindergartens and elementary schools, healthy facility such as first aid station.

BSS House (Block Spraying System). Observation on pesticide management, from spray equipment, personal protective equipment, rinse place, pesticide used-container wash, and water reservoir for former laundry that will be reused for application in estate.


ASSESSMENT REPORT


Institution and Village: 1. Interview with government institution in Indragiri Hilir district to get an information about PT BNS operations, such

as: BPN, Department of Forestry and Agriculture, Environment Agency, Department of Social Welfare Manpower and Transmigration

2. Interview with community leaders in Penjuru and Hidayat Village to get information on PT BNS operation.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Public consultation process was carried out Consultation of PT Bhumireksa Nusasejati stakeholders was held by public consultation with internal (workers and labour union), external (villagers, local peoples, non government organization and district agencies) by interviews, electronic mail and visiting. Numbers of input from stakeholders were clarified by PT BNS management. Numbers of inputs from stakeholders both positive and negative were received by the audit team as a material of consideration and observations in the second surveillance assessment. The consultation result present on 3.6 (Summary of Arising Issues from Public, Management and Auditor Response)

2.4.2 List of stakeholder contacted

Please find appendix 3

2.5 Determining Next Visiting

The next visit (third surveillance) will be determined twelve months after the second surveillance (July 2014).


ASSESSMENT REPORT


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

MUTUAGUNG LESTARI has conducted an assessment of PT Bhumireksa Nusasejati – Teluk Bakau POM, SIME DARBY Plantation Sdn Bhd operation consisting of 1 (one) mill and 3 (three) oil palm estates.

During the second assessment, there was no non conformance identified or raised, however there were ten (10)

opportunities for improvement were identified. The certificate holder is wel prepare and to maintaining the consistency of

RSPO standar and requirement implementation.

Further explanation of the assessment finding is showed on section 3.5. The previous non conformances were also

reviewed by the auditor team. The consistency of RSPO standard implementation shall be verified during next

assessment.

MUTUAGUNG LESTARI found that PT Bhumireksa Nusasejati – Teluk Bakau POM 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 Supply Chain Certification Standard, November

2011. Therefore MUTUAGUNG LESTARI recommends a certificate of compliance is maintained.

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.

Company has been implementing policy related to SOP on the provision of information and response, for instance: information request letter on PT Bhumireksa Nusa Sejati CSR/ CD No. 660.1/BLH/XI/2012/708 implementation from the Environment Agency of Indragiri Hilir district dated November 5th, 2012, then the response was done by replying the letter on PT Bhumireksa Nusa Sejati CSR/ CD report period No. 03/SK-TM/BNS/VI/2013 submitted to the Environment Agency of Indragiri Hilir district dated June 10th, 2013. All incoming and outgoing mail is stored and well documented in log book.

Status: Full Compliance

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

PT. BNS has a list of rules and documents which accessible for public, such as:

1. Legal documents: Location Permmit for estate; forest release license issued by the Ministry of Forestry; Permit Area; Plantation Business Permit (IUP); Land Used Title (HGU); Building Permit (IMB); Disturbance Permit (Hinder Ordinance) .

2. Environmental Document: EIA, Final Report on HCV Assessment; Wastewater Disposal Permit; Temporary Storage Permit for hazardous waste; Pesticide Use and Storage Permit.

3. Social Document: final report on Social Impact analysis; Management Plan and Social Impact Monitoring. 4. Document on Occupational Health and Safety Program and guiding committee of occupational safety & health reports. 5. Other documents: Tax Document (NPWP); Trade Permit document (SIUP); permanent business permit document; machines

Permit Document; Equipment permit Document

BNS has set a shelf life for information requests and responses storage for 2 years. Shelf life determination of these documents stated in the SOP of Notes Control (No. Policy 01/PC-BNS/VIII/12 Policy) dated August 1st, 2012.


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS


ASSESSMENT REPORT


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

Company has a compliance proof for applicable statue/law for estate, such as: 1. PT Bhumireksa Nusa Sejati has received some part of Forest release which covers 93,021.37 ha in accordance with decision

of Minister of Forestry Number.98/Kpts-II/1993 dated February 20th, 1993, this had been in accordance with Minister of Forestry Regulation (Permenhut) No. 44 in 2011.

2. Plantation Business Permit Letter Nomor. HK.350/184/Bun.5/III/2001 on behalf of PT Bhumireksa Nusa Sejati dated March 16th, 2001 for an area of 25,662 hectares and 1 unit of Harvesting Processing with a capacity permit of 30 Tons FFB / Hours and Installed Capacity of 30 tons FFB / hour.

3. Company has land used title for estate and mill building used title in accordance with Law No. 05 in 1960 Jo. Law. No.40 in 1996 on land used title, building used title and Right to Use.

4. PT BNS already has the assessment of the plantation business with class I criteria (good) dated December 7th, 2012 in accordance with Ministry of forestry regulation No.7 in 2009 regarding the assessment of the plantation business.

Occupational health & safety regulatory compliance:

Boiler operator has had occupational health & safety license /SIO in accordance with Permenaker No. 01 in 1988 regarding the steam craft operator.

Overhead Crane Operator has had occupational health & safety license /SIO in accordance with Permenaker No. 09 in 2010 regarding Operator and Lift and transport craft Officer.

Operator has had welder licensed Class II in accordance with Permenakertrans No. 02 in 1982 on welder qualifications.

Company physician has had Hyperkes certificate in accordance with Permenakertrans No. 01 in 1976 regarding Hiperkes of company’s physician.

First aid emergency personnel has had first aid emergency certificate from the Ministry of Manpower in accordance with Permenakertrans No. 15 in 2008 regarding the first aid emergency in workplace.

Regulatory compliance toward environmental management:

Hazardous waste has been managed and reported in accordance with the government regulation No. 18 in 1999 regarding the hazardous waste management.

Has an environmental impact assessment document in accordance with government regulation No. 27 in 2012.

Submitted report on RKL and RPL implementation in accordance with government regulation No. 27 in 2012.

Have a liquid waste discharge permit in accordance with government regulation No. 82 in 2001.

Submitted report on liquid waste assessment in accordance with government regulation No. 82 of 2001. Teluk Bakau mill of PT Bhumireksa Nusa Sejati already have plantation business license which stated in: Plantation Business Registration letter Nomor.HK.350/184/Bun.5/III/2001 on behalf of PT Bhumireksa Nusa Sejati dated March 16th, 2001 for an area of 25,662 hectares and 1 (one) harvesting Processing Unit with a capacity of 30 Tons FFB / Hour and Installed Capacity of 30 tons FFB / hour. But in the Plantation Business Registration letter owned by Teluk Bakau mill - PT BNS stated that allowable capacity for Palm Oil Processing mill is 30 tons FFB / hour. This is not comply the recent realized capacity installed in mill which is 60 tons FFB / hour permitted installed capacity based on Business Licensing Plantation (SPUP) owned by Teluk Bakau mill - PT BNS (which is 30 tonnes FFB / hour) and PT BNS is currently under the process to gain legality on licensing to comply with the recent Teluk Bakau mill capacity which is 60 tons TBS / hour. This will become auditor's observation material to adjust capacity and appropriate policy. Observation.OFI.2013.01 BNS has shown an effort to make an adjustment on regulation change, for instance:

Every year, minimum wage is changed in order to comply Riau Governor Regulation No. 16 in 2013 on Minimum Wage for Agricultural Sub Sector / Oil Palm and Palm Oil and Rubber Plant in Riau Province, 2013 which explains that minimum wage is Idr. 1,509,000,- in Indragiri Hilir district which endorsed at April 1st, 2013.

Conducting training for welders, in accordance with Permenaker No. 2 in 1982.

Starting ISPO certification activities in accordance with the Minister of Agriculture regulation No.19 in 2011 regarding the sustainable palm oil plantations in Indonesia.


ASSESSMENT REPORT


Interview with stakeholders especially government agencies in Indragiri Hilir district, we found that there is no violation of law committed by PT BNS. There is no change in the mechanism of evaluating applicable and related law’s compliance. Evaluation on regulation compliance for PT BNS is available (updated on 08.23.2012 which has been documented and been evaluated according to the status of compliance

Status: Compliance with observation

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

Legality on land tenure covering an area of 25,662 hectares by BNS has been proofed by: 1. HGU No. 01 , Riau province , Indragiri Hilir District, Kateman sub district , Rotan Semelur village, Entry List 208 No. 5761

1996, Entry List 307 No. 698 1996, 05.04.08.02.2.00001 Covering an area of 13,900 ha with a validity period May 23rd, 1996 until May 23rd, 2031.

2. HGU No. 02, Riau province, Indragiri Hilir District , Kateman sub district, Tagaraja Village, Entry List 208 No. 5762 1996, Entry List 307 No. 699 1996 , 05.04.08.03.2.00002 Covering an area of 11,762 ha, with a validity period May 23rd, 1996 until May 23rd, 2031.

3. Decree of the State Minister of Agrarian Affairs / Head of BPN Nomor.70/HGU/BPN/95 on awarding land used title on behalf of PT.Bhumireksa Nusasejati, over land in Indragiri Hilir district dated November 7th, 1995 which describes the land used tittle award for 35 years to PT.BNS over state covering area of 25,662 ha, which located in mandah and Kateman sub district, Indragiri Hilir District, Riau Province.

4. Image Map for Special Situations dated June 10th, 1994 Nomor.15/1994 and Nomor.16/1994 covering and area of 25,662 hectares which located in Belaras / Rotan Semelur / Taga Raja village, Mandah / Kateman sub district, Indragiri Hilir District, Riau Province .

Teluk Bakau Palm Oil Mill which covering an area of 131,790 M2 and 88.125 M2 in 2 HGB documents 1. Decision from Head of BPN in Riau province region Nomor.SK.104/550/24.04/2001 regarding the building used title on behalf

of PT Bhumireksa Nusa Sejati dated August 23rd, 2001 covering an area of 131,790 m2 which located in Rotan Semelur Village, Pelangeran sub district, Indragiri Hilir District, Riau Province. Supported with:

2. Area Map dated June 18th, 2001 No.01/2001 3. Building used title (HGB) document No. 2 dated September 13rd, 2001 covering an area of 131,790 M2 which valid until

September 12nd, 2031. 4. Building used title (HGB) document No. 1 dated October 10th, 2000 covering an area of 88,125 M2 which validity is not stated

in the document. Based on the map of Special Situations Images of PT BNS, there are 118 boundary point (HGU point), but company only has 25 HGU points left, such as: Teluk Bakau Estate (1,5,10,16,118), Nusa Perkasa Estate (20,25,31), Teluk Bakau Estate Estate (36,42,45,50,55,60,65,67,70), Mandah Estate (77,84,88,95), Nusa Lestari Estate (100,105,107,112). Based on field visits to TBE HGU point number 5, 10, 16, HGU point’s condition are well maintained and clearly readable. Since the first surveillance until second surveillance, there is no compensation for Land Tenure within PT BNS area. Interview result with related parties shows that there are no unresolved land conflicts; this finding is supported by the agreement showed by the company as evidence on settlement of land occupied by community. All these documents are available and stored properly.


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 social impact analysis, stated that there were no traditional rights within the work area of PT BNS. Based on field visits, interviews with community in Penjuru and Hidayat village stated that there are no traditional rights within the


ASSESSMENT REPORT


work area of PT BNS.


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.

BNS has drafting a long-term replanting plan in a form of Long Range Replanting Program (LRRP) documents and Map of replanting plan for 2013-2030. This plan aims to redesign previous block, especially for plants which planted in 1993, 1994, 1995 and 1996. Policies established by BNS include cultivation age over 25 years, yield less than 18 tones/ ha, plant height over 15 meters and systematically (centralize) done and following the operational pattern such as BHS (Block Harvesting Systems), BMS (Block Management System), BSS (Block Spraying System), the implementation has been started from 2012 in Teluk Bakau Estate. Replanting plan in every estate will be completed, such as in Teluk Bakau Estate until the 2023 and Nusa Perkasa Estate until 2026

Estate Year 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Teluk Bakau

Broad 467.11 Ha 274.18 Ha 143.37 Ha 142.27 Ha 142.06 Ha

Planting Year 1993, 1994 1994 1994 1994 1994

Seeds

Certificated

seed

113.500

Certificated

seed

66.600

Certificated

seed

34.800

Certificated

seed

34.600

Certificated

seed

34.600

Nusa Perkasa

Broad 419 Ha 424 Ha 286 Ha 271 Ha 277 Ha

Planting Year 1994 1994 1994, 1995 1995 1995

Seeds

Certificated

seed

101.800

Certificated

seed

103.300

Certificated

seed

69.500

Certificated

seed

65.850

Certificated

seed

67.300

Nusa Lestari

Broad 275 Ha 275 Ha 109 Ha 232,84 Ha 175.9

Planting Year 1994 1994 1994 1994, 1995 1996

Seeds

Certificated

seed

66.800

Certificated

seed

66.800

Certificated

seed

26.500

Certificated

seed

56.600

Certificated

seed

42.750


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

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

Figure 1. Company Nursery Figure 2. Company replanting area and monitoring


ASSESSMENT REPORT


Agricultural Reference Manual) 110/EST-ARM/08, Minamas Plantation, endorsed on August 19th, 2008 by the CEO (Franky Anthony). No Copy: 20:11:12, dated December 22nd, 2008. Consist of: plantation Material, nursery, replanting, land preparation, plantation maintenance, Fertilization, Fertilization on immature plants, TBM fertilization with empty bunch, Plantation Protection, standard of maturity, harvesting rotation, fruit collection. There is an SOP on PT Bhumireksa Nusa Sejati for Water Management No. Policy 01/BNS/III/09, which endorsed on March 25th, 2009 by the GM of Estate RSS (Ahmad Sahfengi) and SOU Chairman (Syahril.AS). SOP for mill is available, consist of:

1. Operational administrative Procedure for palm oil mill, Minamas Plantation, No. Policy 130/POD-FAC/07. 2. Technical Guidelines for Palm Oil mill Volume I, Minamas Plantation, No. Policy 110/POD-FAC/07. 3. Technical Guidelines for Palm Oil mill Volume II, Minamas Plantation, No. Policy 120/POD-FAC/07.

Based on the Memorandum from Head of Plantation Operations No. POD-UM-154/VII/2010 which endorsed on July 26th, 2010 stated that the third SOP set as technical guidelines for palm oil mill. Evaluation on estate and mill operations has been conducted every 6 months, through Plantation Advisor activity and mill Advisor, for instance: 1. Plantation Advisor report No.MINAMAS/TBE/01/2012-13. Date of Visit is December 20th to December 23rd, 2012 for Teluk Bakau Estate. 2. Plantation Advisor conducted on May 30th to June 3rd, 2013 for Nusa Perkasa Estate. 3. Department Mill Plantation Advisor Visit Report No. Minamas/TBF/02/2012-13. Date of Visit April 2nd to April 4th, 2013 in Teluk Bakau mill. Monthly report on operational activities in mill and estate are available, for instance estate unit report for period August 2013 NLE and RSE and Teluk Bakau mill Monthly Report for Period August 2013.


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

Leaf analysis Activity has been carried out every year, for instance: Leaf Analysis Report in TBE Block D007, LSU No.TBE-0202-A and Leaf Analysis Report on NPE Block E006, LSU No. NPE-0101-A. There is a record on soil analysis conducted by the MRC on November 23rd, 2011 until December 4th, 2011 in each estate which describes the analysis of soil fertility. Data on Fertilization is available (Actual fertilization in accordance with the recommendation from MRC), for instance, ferti lization data in 2012/2013 for Nusa Perkasa Estate, Division I, block E006 and Teluk Bakau Estate, Division 2, Block D007 which has been realized in accordance with recommendation.


4.3 Practices minimize and control erosion and degradation of soils.

Company has a report regarding the study of the depth of peat land which conducted by the MRC. Information stated on this study such as the depth of peat land distribution, extensive distribution of peat land maturity level, location of sampling point, mill

location, emplacement location for each estate and the whole estate belong to PT. BNS. Based on soil survey result and field visits, there is no area with a particular sloping within PT BNS area. There is a road maintenance program such as main drain maintenance, drain and field drain collection. Based on field visit in the canal between Division 5 and 2, there are canal maintenance activities such as moss, water hyacinth and weeds cleaning.

Figure 3. Canal maintenance


ASSESSMENT REPORT


Management of marginal soil (peat) has been done in accordance with semi-detailed soil study results. Based on recommendation, the management of marginal soil (peat) in PT BNS conducted with surface water level management. Monitoring on water surface level in the canal was done every day (morning and afternoon). Water surface level monitoring was also carried out in the block using phizometer. Company also has evaluated the water surface level and decreasing the level in peat land.


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

There is an SOP for Sustainable Plantation Management Guidelines which contain the protection of riparian. There is also policy which restrict the use of chemical in accordance with the memorandum from the Chief of SOU 19 Teluk Bakau 016/RSPO/BNS/X/2012 dated October 15th, 2012 regarding the prohibition of spraying in staple dish, road barrier and roads that are on the edge of the main channel (KUT), canal branch (KCB), middle and tertiary ditches. Based on field visit and interview with personnel, we found that company is controlling the ground cover crops around canal lip such as cultivated rumput buaya, not using chemicals. Company also planting crops such as bamboo and timber plant like pulai on the edge of the KUT. PT BNS has been evaluating the quality of surface water (rivers) and groundwater (borehole). Parameters tested for ground water in accordance with the Minister of Health regulation 416 in 1990 and parameters tested for water surface is in accordance with government regulation 82 in 2001, class II. Based on the previous visit (Surveillance-1), Teluk Bakau mill is repairing WWTP with 70% of completion progress. This was done in order to make sure that liquid waste discharged into water body met appropriate quality standards in accordance with Kep-51/MenLH/10/1995. Based on the field visit, we found that Teluk Bakau POM WWTP ponds have been repaired-11 ponds (Teluk Bakau POM WWTP layout is available). Some Improvements are by dredging or cleaning ponds, bacteria activation and pond circulation. Company has conducted regular monitoring on liquid waste quality once every month. Evaluation carried out by the Technical evaluation unit, Public Works Department, Riau Province. Liquid waste quality result meets the quality standards, such as BOD evaluation results in June 2013 was 51.25 mg/l (BM: 100 mg/l). Company has had liquid waste discharge permit to the river in accordance with Indragiri Hilir District Decree number: 503/BP2MPD-IPAL/VIII/2012 dated August 31st, 2013. Teluk Bakau mill was able to show data of water usage for daily operations which well recorded. The data explain the monitoring date, processed FFB, water usage for processing, boiler and domestic, usage volume per ton of processed FFB (m3/ton FFB). There is also the evaluation of water usage such as in August 2013 that the water usage 1,375 m3/ton FFB is over company limitation (budget) which is 1.20 m3/ton FFB, due to the reduced processing FFB. Some efforts taken by the management unit were: 1. Fixing leaky water installation in mill and housing. 2. Reducing domestic water usage by shorten water flow time into personnel housing Teluk Bakau mill, on behalf of PT Bhumireksa Nusa Sejati has document for Water Surface Intake Permit which located in Rotan Semelur Village, Pelangiran sub district, Indragiri Hilir district based on Regent Indragiri Hilir Permit Number. 503/BP2MPD-SIPAP/VI/2012/3 dated June 26th, 2012 which is valid for 2 (two) years from the date of enactment.


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


ASSESSMENT REPORT


PT BNS consistently has been documented the PHT program and updated every year, such as PHT Annual Program and Realization for period of June 2012 to July 2013. For instance: beneficial plant cultivation, nest boxes installation, nest box maintenance, nest box observation, H & T census, and Tyto Alba’s observation. Officer in charge to control pests and diseases in PT BNS has been trained consistently, for instance, based on training minutes on January 16th, 2013, termite pest control training in Block D003 Division II Nusa Perkasa Estate with Senior Assistant, Assistant, foremen I and PHT personnel as participants and January 7th, 2013 training on main census (detail) in Division I Nusa Perkasa Estate Block E001 Pesticide Toxicity Monitoring was done consistently by PT BNS, for instance for the year 2012/2013 Monitoring on Pesticide Toxicity and Chemical Materials type (Basta 200 U.S.) Material usage: 1,974 liters, wide application 9,510, material / ha: 0,068 liters / ha, 20% active ingredients and active ingredient / ha: 0,144 liters.


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.

Based on Commission Pesticide Books observation issued by the Ministry of Agriculture in 2011 and field visit to the Agrochemical Warehouse, PT BNS has been using agrochemicals such as herbicides and insecticides which were registered and authorized by Pesticides Commission of the Ministry of Agriculture. Company has been recorded all maintenance activities that using chemicals (pesticides). Record stated in Program and maintenance Realization in 2012/2013 and describes the application location (division, block), wide applications, application rotation/interval, number of personnel, used materials, cost, for instance pesticide usage record AUDIT in Teluk Baku Estate; with Glyphosate Active Ingredient, applied on area of 236.97 ha, with 2 times year rotation Chemical usage record is available and gives information about target species and the usage dose. For instance: usage in June 2013, with Metsulfuron methyl herbicide active ingredient and usage dose use of the target species of broadleaf weeds. Company had shown attendance sheet and some photos taken from spray personnel training. The entire training records are available and stored properly in PT BNS. Based on observations in Agrochemical Warehouse, company has shown that the entire MSDS are available in Indonesian language that can be understood by all personnel; however certificatae holder need need to ensure the availability of MSDS for all chemicals usage in mill and estate. OFI.2013.02.Observation Based on observations to BSS (Block Spraying System) House, Company consistently managed pesticide containers in accordance with applicable regulation/Working Instructions, such as: pesticide containers delivered to washing station, rinsed thoroughly (minimum 3x) , further to be sent to the hazardous waste licensed polling station located in each estate, and handed to licensed third party (PT Logam Jaya Abadi), however need to ensure that all pesticide packaging waste were disposed in accordance with applicable regulation. OFI.2013.03.Observation PT BNS has not been using paraquat since 2008. This is based on Head Plantation Operations policy No. POD-UM-128/X/2008 regarding the recommendation on Paraquat Active Ingredients substitutes applications in Minamas Plantation area. BNS has been regularly conducting periodic medical examinations for personnel which were exposed to chemicals such as spray personnel, fertilizer personnel and agrochemical warehouse personnel. Medical examination conducted every 6 months by Company Hiperkes-certified physician. For instance, examination for period January to June 2013, examination result shows there is no chemical sprayer personnel, fertilization personnel and agrochemical warehouse personnel who experience health

Figure 4. Beneficial plant implementation


ASSESSMENT REPORT


problems, and is in pregnancy or lactating period. Company has consistently applied policy regarding the protection on female workers rights and reproductive health which is based on the results of field observations and interviews with spray personnel in Block D010 Estate Division III Nusa Perkasa, there were no female workers and pregnant or lactating personnel, thus personnel have understood the prohibition policy for pregnant personnel or lactating personnel working on activities related to the use of chemicals, such as spraying and fertilizing activity.

Status: Observation

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

Company's commitment on occupational health & safety implementation proved by policy on occupational health & safety in sustainable Plantation Management Guidelines document (Policy No. 724/TQEM-SPMS/09) which endorsed at April 1st, 2010 by Chief Executive Officer. PT BNS has consistently implemented this policy in accordance with the applicable policy and procedure. Based on field observations, occupational health & safety Policy has been communicated by installed information board, installation of safety signs, and the provision of PPE for personnel. Certificate holder hall ensures all contractors are working with a complete PPE in accordance with work hazard risk. OFI.2013.04.Observation

Person in charge for occupational health & safety program has been pointed by company in a form of Guiding Committee of Occupational Safety & Health (GCOSH). Guiding commitee of occupational health & safety organizational structure also available for each unit in estate and mill which has been approved by the Department of Manpower and Transmigration Indragiri Hilir district, Riau Province; GCOSH probate letters are available, such as: • Decision letter from Dept. of Manpower and Transmigration of Indragiri Hilir District No. 28/NAKERTRANS-PHKI/P2K3/560 which endorsed at April 16th, 2013 for the GCOSH Teluk Bakau mill. GCOSH's secretary is Achmad Sugianto who has been certified as occupational health & safety expert with SKP No. KEP.1246/M/DJPPK/V/2013 dated May 27 th, 2013 which valid for 3 years. • Decision letter from Dept. of Manpower and Transmigration Indragiri Hilir District No. 03/03.III/SK-P2K3/2010 which endorsed at February 18th, 2013 for the GCOSH Teluk Bakau mill. GCOSH's secretary is Achmad Suyatno who has been certified as occupational health & safety expert with SKP No. KEP.1427/M/DJPPK/V/2012 dated May 04th, 2012 which valid for 3 years • Decision letter from Dept. of Manpower and Transmigration Indragiri Hilir District No. 05/03.III/SK-P2K3/2010 which endorsed at March 18th, 2010 for the GCOSH Teluk Bakau mill. GCOSH's secretary is Achmad Suryadi who has been certified as occupational health & safety expert with SKP No. KEP.1374/M/DJPPK/VI/2011 dated June 20th, 2011 which valid for 3 years Periodic medical examination for high risk personnel conducted every 6 months by company’s hyperkes certificate-physician in collaboration with Pelangiran health center with type of examination such as: physical examination, sputum, urine, blood test, respiration and audiometric. For instance, examination for period January to June 2013, which is conducted in each unit, medical examination result for audiometric shows that there is hearing problem or reducing personnel’s hearing ability, and for spirometry examination, there is no impaired lung function. Company has an identification procedures and Risk Assessment (HIRAC) (Policy No. 7301/TQEM-ESH/10) set on August 2nd, 2010 which described the diagram flow of risk assessment process, such as describing the job and identified the danger, assess the effect and possible dangers to determine the risk, determine the risk control action by reducing the possibility, effects and identification on danger monitoring and work plans, and assessing the end of each task. As the implementation of such procedures, record on risk analysis for all types of work based on unit/work location is available. Occupational health & safety training program for all employees has been conducted in a regular basis, there is a schedule for OHS training on each mill and estate units. For instance: awareness and preparedness training for fire extinguisher squad on

Figure 5. Worker provide with PPE

implementation

Figure 6. Worker provide with PPE

implementation


ASSESSMENT REPORT


estate fire at June 21st, 2013 which attended by security guards, foreman, and members of the emergency response. Minutes of this training is available in mill and estate office. PT BNS Preparedness and Emergency Response is consistently implemented through the establishment of the Emergency Response Team in each working unit and the provision of facilities and infrastructure such as for fire-fighting are in good condition and ready to use. for instance in Teluk Bakau Estate there are 2 units of Pump Machine brand Tohatsu, 1 unit of Robin pumps, 10 units of hose with a length of 20 feet, nozzle stick, 2 sockets, flashlights, machetes, hoes, jute sacks, buckets, HT radio, firefighters PPE (uniforms, helmets, masks, gloves, boots). In addition training and simulation for the Emergency Response Team has been conducted for instance in July 28th, 2013 emergency response simulation for drawning, the safety procedures has been described in conducting rescue and first aid with CPR. Certificate holder a chance to increase the preparedness of emergency response equipment in order to be always in a ready to use condition. OFI.2013.05.Observation Based on field observations, company has provided first aid emergency equipment in each working units and other public facilities, such as in Teluk Bakau mill, first aid emergency box is available in power supply station and hazardous waste warehouse, in Nusa Perkasa Estate, Foreman I carried first aid emergency tools into estate area. First aid emergency personnel have been trained by PT Arpindo Pratama (first aid emergency Services Company) on May31st until June 1st, 2013 based on letter No. 582/SK-P3K/VI/13. Certificate holder need to improve the monitoring of first aid emergency equipment in accordance with company’s physician recommendation. OFI.2013.06.Observation Company has consistently documented occupational injuries record in accident analysis which stated in Safety Performance Report documents that are stored in each mill and estate units and being monthly reviewed by the Secretary of the guiding committee of occupational health & safety.

Status: Observation

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

Training programs for personnel are consistently prepared every year based on Minamas Plantation training calendar. For instance for periode 2012 - 2013, general competency development and type of training, such as: • Leadership competencies: Core Executive Programme 1 until 4 for staff level B to H • Management behavior competencies (POD) - Financial resources management: Financial Statement Analysis for decision making, finance for non-finance, cost control and financial reporting. For staff level D to F. - Relationship management & network: business relationship management, for staff in level D to F. • Regulatory compliance training - Certification on occupational health & safety experts, for the SKU. - Certification on heavy equipment operators, for operators. - Certification for welders, for the SKU. As an evidence to the implementation of the training, company has recorded training event both training for personnel and contractor which have been well documented, for instance, welder training by PT Delta Indonesia Pranenggar in Pekanbaru on October 17th, 2012, training for secretary of GCOHS, training for first aid expert by PT Delta Indonesia Pranenggar in Pekanbaru on April 15th, 2013, for physician and paramedics there is a Cardio Respiratory Emergencies training in Medan at April 27 th,2013.


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.

Company has had an Environmental Impact Assessment document (EIA) which set by the Ministry of Agriculture, Agribusiness Agency number: 07/BA.5.3/V/1996 dated May 17th, 1996. Company also has documents for Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL), which were approved by the Ministry of Agriculture number: 093/RKL - RPL, dated May 14th, 1996. In addition, Company also has a revised RKL/RPL document which approved by the Department of


ASSESSMENT REPORT


Environment, Mining and Energy Indragiri Hilir district numbers: 11/IH/RKL-RPL/V/2006 dated May 3rd, 2006. Company has carried out the implementation and reporting on regular environmental management, for instance: RKL/RPL first half reports (January-June 2013) which has been reported to BLH Indragiri Hilir district, Riau province through Pos Indonesia number: 12944594652, dated September 2nd, 2013. The managed and monitored Environmental aspects such as: soil changes, air and noise quality, river’s water quality and canals, liquid and solid waste, fire potency, disturbance on flora/fauna, hazardous waste, and social unrest.


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.

PT BNS have conducted the identification on High Conservation Value (HCV) which carried out by Indonesian Sustainable Palm Oil Foundation (Yasbi) in 2010. Based on identification, there are potential HCV-1 covering an area of 1.047,80 ha, potential HCV-3 covering an area of 1,038,37 ha, potential HCV-4 covering an area of 525,91 ha, and potential HCV-6 covering an area of 0,55 ha. Efforts undertaken by company to protect endangered or threatened species, or habitats with a high conservation value including: • SPO to protect Flora and Fauna: Revision. 00, dated October 18th, 2012. • HCV sign boards installation including contains a prohibition on hunting protected animals and electrocute fish. • Regular monitoring on flora and fauna every month, for instance: monitoring results on Sept 11th, 2013 in NPE, Division IV, Block E001 (HCV 4 area), there are 19 species of animals and 11 species of flora. • Plantation monitoring on HCV 1 areas, for instance: from monitoring in August 2013 there were 17 Pulai tree. Documentation of the tree is available. • Conducted HCV area’s patrol every week, for instance, patrol on Sept 28th, 2013 in HCV 1 area, there is no trace of felled trees, no cutting equipment (manual and mechanical), none of the perpetrators of illegal loggers, no poaching/ wild hunter. • Conducted periodic HCV socialization for personnel, for instance: HCV 1 socialization dated September 7th, 2013 in Division 4, NPE which followed by 15 personnel. Based on a field visit in the NPE and TBE, there are some posters related to the types of protected animals and HCV sign board. PT BNS has had an environment team which contain of officers and HCV observations. Company has also conducted HCV training which was followed by managers, assistants and foreman.


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

Company has been managed waste and agrochemical packaging in accordance with applicable regulations so there is no potential for environmental contamination. Activities were carried out and documented, such as:

Work Instructions for hazardous waste is available according to the type of waste generated in SOP appendix for hazardous waste management (RSPO/P&C/PLB3), such as: - Pesticides Used-container IK Handling pesticide used-containers shipped to wash station, rinse until clean (minimum 3x) , used-water flowed into a tank and reused for spraying, container waste sent to licensed hazardous waste landfill , then processed/ dispose/ destroy pesticide used-container which comply the regulation.

- Hazardous waste IK Management (Solid and Liquid) Figure 8. Hazardous waste storage


ASSESSMENT REPORT


Disposed waste in identified container, symbols and labels, send to licensed hazardous waste landfill for 90 days storage, if the storage duration is exceeded 90 days, company need to ask permission to extend it to related agencies, further sold to hazardous waste licensed collector institutions/ parties (PT. Metal Jaya Abadi) completed with delivery note (NPBB) and Manifest.

- Clinic/medical waste IK Handling Disposed waste in identified container, symbols and labels, send to licensed hazardous waste landfill, destroy solid clinic/medical hazardous waste by burning in incinerator management/ hospital.

Company has documented the implementation of waste management such as waste monitoring record and hazardous waste transportation minutes

- Daily monitoring record on hazardous waste in Teluk Bakau estate such as central warehouse card (recording of waste in and out). - Hazardous waste monthly scale in mill and estate has been reported to BLHD Indragiri Hilir district every 3 months, for instance quarter waste scale in April to June 2013 has been reported on July 17th, 2013. - Handover note on hazardous waste transportation by PT Logam Jaya Abadi at No. September 20th, 2013, No.01/TBF/LB3/IX/2013 completed with hazardous waste documents (waste manifest).


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

Company has a monitoring records on the use of renewable energy, such as fiber and shell that were used as boiler fuel to support mill’s operation, for instance: in January - August 2013: Fiber usage is 1.411.613 and Shell usage is 268.879 kg which produce renewable energy amount 12,75 Kwh/Ton CPO. Company also has a monitoring record on the use of fossil fuels for mill’s operation (recorded at diesel used monitoring, period January-August 2013). Based on monitoring data, diesel usage for processing is amount 32.836 liters and for domestic is amount 13.182 liters.


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.

Company has consistently applied policy which stated in the Palm oil Agronomy Manual Reference Section 4: zero-burning approach for land clearing and replanting. Replanting conducted by contractors, for instance: PT Mitra Karya Perdana (BAPP is available dated April 30th, 2013 on behalf of PT Mitra Karya Jaya Perdana Number SPK 005/Replanting/BNS - TBE/IX/2012-Add II, the IX examination. type of work consists of: (1) collapsed, chopped & minced (from root to prone), (2) chopped tubers and roots, (3) explore and cover the hole of ex-hump with soil. Furthermore, based on field observations in Block E002 Division I Nusa Perkasa Estate, replanting activities done mechanically using heavy equipment such as excavators, it shows that company does not undertake burning in replanting activity. Company already has SOP for fire management (RSPO/B.5.2/BNS) which endorsed

by Manager on May 1st, 2013. The procedure described from the preparation; establish fire extinguisher squad, maintaining water sources and mapped an inventory of fire-spot location, making fire hazard warnings, and fire tower. Furthermore fire control with extinguisher techniques as well as administrative and reporting. On the implementation of fire prevention and control procedures, company establishes a Hot Spot Monitoring Management, such as: • Installation of Fire danger index Signboard • Map fire prone location in conservation forest and pringgan. • Fire tower with a height of 15 meters and a maximum capacity of 4 people. • Fire extinguisher team and emergency response station thus fire extinguisher • fire-fighting facilities and infrastructures, such as, 2 units of Engine Pumps brand Tohatsu, 1 unit of Robin Pump, 10 units Hose with a length of 20 meters, stick the nozzle, 2 units of socket, flashlights, machetes, hoes, jute sacks, buckets, HT radio, fire

Figure 7. Fire monitoring tower


ASSESSMENT REPORT


extinguisher PPE (uniforms, helmets, masks, gloves, boots). • Training and simulation of fire prevention, for instance, on May 22nd, 2013 fire extinguisher simulation by the Emergency Response Team located at Km 11.5Emplacement hut


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

Company has identified sources of pollution and mill emissions. PT BNS has a document of Pollution and Emissions Identification in Teluk Bakau mill, which covering category or pollution type, explanation of the origin of the source, and control plan. Company also monitoring the emission quality by conducting air quality measurement, for instance: measurement of ambient air quality and noise with particulates: SO2, NO2, HCL, Cl2, NH3, and Opacity as parameters. While the measured parameters in air emissions quality are NO2, SO2, CO, particulates, Opacity, Temperature, and Wind Speed. Measurements were taken at BINALAB, Bandung Air Quality Testing Laboratory with certificate number 526-4/UE1/BINA/V/2013 (generator-4), 526-4/UA2/BINA/V/2013 (Boiler-1) and 526-4 / UA3/BINA/V/2013 dated April 16th, 2013.Based on test result, parameters are still below the standards (refer to Kep-48/MenLH/VI/1996 about noise and Government Regulation 41 of 1999 about ambient). Air quality testing has been reported to BLHD. Based on field observations, company had been monitoring the thickness of the smoke using smoke density meter. Company also has records on pollution and emission reduction efforts (recorded on program and realization of efforts to reduce pollution and emissions for period January - December 2013 Teluk Bakau POM), for instance: - Minimize shell usage - Fuel Equipment Maintenance in combustion room - Chimney ash clearance - Cleaning the ash from water pipes in the boiler - Take measurements / analysis of ambient air quality and noise, air quality from boiler emissions, air quality from generator emissions, and air quality from incinerator emissions. - Establish EFB press station - Making incinerator sampling hole No. 1 and 3 - Operational Empty Bunch Press during the FFB process - Provide ear protection facility for mill personnel dated March 18th, 2013 with total 8 pieces (4 boiler personnel and 4 personnel in machines room) Company has management for POME mechanism with sedimentation cycle method. Liquid waste generated from the production process is managed in IPAL pond which consist of: (1) cooling pond 8,100 M3, (2) An-Aerobic Primary pond 9,100 M3, (3) An-Aerobic Primary pond 9,100 M3, (4) An-Aerobic Primary pond 9,100M3, (5) An-Aerobic Primary pond 9,100-M3, (6) An-Aerobic secondary pond 100 M3, (7) An-Aerobic secondary pond 9,100 M3, (8) Transfer pond 3000 M3, (9 ) Aerobic Primary pond 9,000 M3, (10) Aerobic secondary pond 6,300 M3, (11) Sedimentation pond 7,000 M3. Company also has conducted monitoring on POME management, for instance (1) measuring water debit, but during the surveillance, water debit tools is broken, (2) carry out regular monitoring on liquid waste quality once a month and report the liquid waste result to BLH Indragiri Hilir District. Certificate holder should ensure that the water level tools should be in a good condition in order to be able to record water level as part of POME management monitoring. OFI.2013.07.Observation

Status: Observation

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.

Company has environmental management documents which content both positive/negative social and environment aspect analysis with involving community participation, for instance: - RKL / RPL Revision Document which has been approved by the Head of Environment, Mining and Energy Department of Indragiri Hilir District Number: 11/IH/RKL-RPL/V/2006 dated May 3rd, 2006. The managed Social impacts are social unrest and conflicts resulting from land conversion, dust, and mill’s smoke.


ASSESSMENT REPORT


- Social impact assessment report (social impact assessment) in period 2013-2015 by Aksenta, dated January 2013. SIA report has impact identification toward social community and work force as well as mitigation and social impact management comes from replanting activities. - Brief assessment on replanting impact toward environment has been done by Aksenta at September 6 th, 2013. On the draft outlined few things related to environment such as the loss of carbon stocks, greenhouse gas emissions (attendance sheet for opening and SEIA closing in2013, dated September 2nd, 2013 is available). The Environmental and social impact assessment on Nusa Perkasa Estate (September 2nd until September 6th, 2013) has been confirmed by documentation which is report or management plan and monitoring by involving local communities. Observation.OFI.2013.08 Company has a periodic social impact management and monitoring records, for instance: improvement of social welfare programs (CSR program plan and realization for 2013/2014 is available). Incentive award to fire concern community groups (MPA) in August 2013. Company provides an opportunity for local people to become an employee (Personnel data from surrounding villages is documented up to September 2013). Company’s personnel from surrounding village reach 8.15%. Based on document’s review and interview, until the second surveillance, there is no plasma smallholders scheme.

Status:Observation

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

Company has an SOP for Communications/Consultations with community No.005/BNS/MDF-KKM/IX/12, with the objective to provide guidelines in performing communication and consultation with the community. For instance, assistance letter for paralon pipe to support football field (for water absorption and drainage) in Rokan Semelur village dated July 17 th, 2013 ahas been responded with letter No. 17/SK-TGP/BNS/VII/2013 which granting the request of paralone pipe amount 4 units with 10 cm size at August 27th, 2013, accompanied with hand over note and photos. Company has appointed a special officer whom in charge on communication and consultation with community - Hanafi Effendi with a memorandum from general manager of Riau Selatan Estate and South Sumatra, dated September 3rd, 2012, letter number 123/RSS-pod/IX/2012 regarding the assignment as PT BNSPR officer/Plantation services.


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

SOP for community complaint mechanism, to provide guidelines on community complaint has been addressed to each operational. Some sample of complaint records are: • Teluk Bakau Mill - On behalf of Kristianto, requests for used-roof which has been addressed at March 15th, 2013, thus have been responded by granting the used-roof amount 6 units at March 17th, 2013. • Teluk Bakau Estate - On behalf of Suparmin, request for housing repair which has been addressed at May 27th, 2013, thus have been responded by granting the house repair request at June 26th, 2013. • Nusa Perkasa Estate - On behalf of Ari Suheri, request for house improvement (floors, roofs, water closet) which has been addressed on May 5th, 2013, thus has been responded by granting the request at May 20th, 2013. Since the first surveillance in September 2012 until second surveillance there is no compensation process for land tenure.


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.

Since the first surveillance in September 2012 until second surveillance there is no compensation process for land Tenure for loss of legal right or traditional rights within PT BNS’s operational area.



ASSESSMENT REPORT


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.

Company has comply all related regulations on estate operation, including personnel benefits such as the implementation of minimum wage. Sectoral minimum wages was set by Riau Province Governor regulation No. 16 in 2013 regarding the Minimum Wage for agriculture subsector/Plantation, dated March 16th, 2013 Idr.1.509.000 + Idr. 117.000,-. Company has been implemented this regulation based on interviews with personnel.

Employment terms and conditions are stated in Collective Working Agreement which prepared by company and applicable for all personnel (staff and non-staff) who works in PT. BNS. PKB2012 -2014 document was approved by department of Social Welfare and Labor. PT. BNS also involved workers union for consideration, suggestions and feedback related to the representation of the rights and obligations of employees within the regulation. This is done in order to avoid conflicts between company and personnel

PT. BNS provide facility for personnel such as housing facility, clean water, health care, educational and religious facilities. Based on field observations and interviews with residents and personnel in Emplacement Kemuning Nusa Perkasa Estate and Division II hut Teluk Bakau Estate, company has been providing permanent and non-permanent housing for personnel, clean water supply from boreholes and collected rainfall, electricity from generator with a capacity of 100 KVA, worship place such as mosques, educational facilities such as kindergartens and elementary schools, health care like first aid emergency station and Central Clinic. Certificate holder is encouraged to implement the housing improvement program for employees. OFI.2013.09.Observation. Contractors who has a cooperation with company is obligated to

follow applicable regulation, for instance working agreement No. 018/SPK/BNS-NPE/V/2013 between NPE with H. Hasnan located in Parit Sabar Menunggu, Rotan Semelur with ditch cleaning job (Div IV), working period from May 21st to June 30th, 2013, the work volume for 3 blocks is 34,080 m/@ Idr. 1,200, payment receipt through bank transfer is Idr. 39,960,480/ 33,980 m (Pph 2% discount) is available as related to compliance with government regulations (APD, Social Security, occupational health & safety etc.) contained in article 1

Status: Observation

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

Company has a regulation regarding the freedom to establish association which stated in Sustainable Plantation Management Guidelines SOP No. Policy 724/TQEM-SPMS/09 dated August 27th, 2010, chapter Policies and Objectives and sub chapter on Indonesia Plantation Upstream on Social Policy Point 5 page 13 which explain that company is expected to respect personnel right to establish and join worker union based on personnel freewill. Teluk Bakau mill needs to ensure that the the existing union board is recorded/ communicated to Manpower and transmigration department. OFI.2013.10.Observation In practice, BNS provides the opportunity for personnel to establish a union. This can be clarifying with the existence of PUK worker unions in each estate, for instance: • PUK-SPSI SPPP TBF 2012-2017No.63/Was-Nakertrans/560 Chairman; Munji, Deputy; Febriadi, Secretary; Masyuri Imam, Deputy Secretary: Harpriadi, Treasurer; Indra Gunawan, members of worker unionsare 33 people. (September 2013) • Proof of registration and legalization of PUK-SPSI SPPP Teluk Bakau estate board No.39/Was-Nakertrans/560 NPE. Chairman: Syahril, Secretary I: Mulaynto, Secretary II: Ilham Treasurer; Syamsul. May 10th, 2012. Members of worker unions are 613 (September 2013) • Proof of registration and legalization PUK-SPSI SPPP Teluk Bakau estata Board No. 61/NAKERTRANS-PKHI/560 dated March 18th, 2013 Chairman; Ilham, Deputy; Ismadi, Secretary; Kamarusaman, Treasurer; Sarlan. Members of worker unions are 611 (October 2013).

Figure 9. School transport facility for worker children


ASSESSMENT REPORT


From PT BNS PUK SPPP SPSI meeting record, we knew that the meeting took place at TBE manager room on September26 th, 2013 with attendance sheet (9 participants) as well as photo documentation with subject: Wage deficiency, increasing on SKU premium, overtime, Treatment against PKWT, THR BHL, and description of the pension fund.

Status: Observation

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.

Policies regarding the banning to hired and exploiting workers under the age (children) are described in Sustainable Management Plantation Guidelines No. Policy 724/TQEM-SPMS/09 dated August 27th, 2010. Chapter Policies and Objectives and sub chapter on Indonesia Plantation Upstream on Social Policy Point 6.Observation during the operational activity, there is no worker under the age (children), this is already in line with company’s policy.


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.

Sustainable Plantation Management Guidelines SPO.No. Policy 724/TQEM-SPMS/09 dated August 27th, 2010. Chapter Policies and Objectives and sub chapter Indonesia Plantation Upstream on Social Policy Point.1 states that all staff/employees should be treated fairly relating to recruitment, promotion, conditions and job description, with no discrimination based on race, degree, race, gender, skin color, disability, sexual orientation, membership organizations, political views, religion and age. Interview with employees and PT BNS workers union representatives, there is no discrimination executed by company, it can be shown in career path for potential personnel to be promoted as assistant.


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.

Company has a policy on sexual harassment and violence which is stated on Sustainable Plantation Management SOP, No. Policy 724/TQEM-SPMS/09 dated August 27th, 2010 Chapter Policies and Objectives and sub chapter Indonesia Plantation Upstream on Social Policy Point 4which develop and implement policies to protect female workers from sexual harassment and crime and to protect their rights related to reproduction. Interviews with representatives of female organizations committee (committee gender) and female workers on operations activity such as spraying, until now has never happened sexual harassment or violence toward female workers in company workplace, female workers also explain that they get period leave and lactating right for female worker who has an under 2 years old children.


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

PT. Bhumireksa Nusa Sejati manage main estate and has no cooperation with independent and plasma smallholders. Based on document review, Company has transfered all payment to contractor. Working agreements between company and contractor has made legally and transparent.


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

Company contributions toward local development, such as: • PT BNS Tax Payment, Land and Building Tax (PBB) in 2012 to Rengat Office of Land and Building Tax at November 06th, 2012. • CSR award such as, establishing Concerned Fire community (MPA) and provide training / socialization as well as providing incentives to members of the Concerned Fire community (MPA). • Providing assistance for community, such as providing assistance for Musabaqoh Mawlid Al-Habsi Pelangiran District of amount


ASSESSMENT REPORT


Idr. 1.000.000, - in July 1st, 2013. Interview with local community shown that company is routinely provides assistance or donations for some activities undertaken by the local community.


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.

Company has performed social and environmental impact analysis, as shown in environmental management document, such as:

- RKL / RPL Revision which has been approved by the Head of Department of Environment, Mining and Energy Indragiri Hilir

District Number: 11/IH/RKL-RPL/V/2006 dated May 3rd, 2006.

- Social impact assessment report for period 2013-2015 by Aksenta, January 2013. Based on SIA report, we make identification

on social community and workforce impact.

- There is a brief review on environmental impact caused from Aksenta activity at September 6 th, 2013. On the draft outlined few

things related to the environment such as the loss of carbon stocks, greenhouse gas emissions (available list of present opening

and SEIA closing in 2013, dated September 2nd, 2013).

Based on document review and interviews, until the second surveillance there is no plasma smallholder’s pattern in PT BNS.

PT. Bhumireksa Nusa Sejati managed main plantations and has no cooperation with independent or plasma smallholders.


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.

New estate development is following the peat land depth survey result. Based on the survey results are known: 1) the maturity of the peat land is Saprik and hemik, peat land with this maturity is suitable for palm oil cultivation; 2) substratum layer below peat is clay, and dusty, substratum layer below the peat land is suitable for palm oil cultivation because it is not a group of sand, and 3) peat land analysis result shows that peat land has a low fertility thus need fertilizer recommendations to increase the fertility level.


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.

New development area since November 2005 cover an area of 449,59 hectares, and based on document review and observations, there is no new development (since November 2005) on the HCV identified areas. Land clearing plan and realization is available and refers to the HCV identification. Based on field visits in Teluk Bakau Estate and Nusa Perkasa estate, there is no replanting activity in HCV area.


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

Based on soil survey results and field visits there is no area with certain sloping in PT BNS area


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


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their views through their own representative institutions.

PT BNS has social and environmental impact analysis document which stated in Revised RKL/RPL 2006, contain affected environmental and social aspects, impact source, benchmarks, environmental management objective, environmental management efforts, environmental management location, environmental management period, and environmental management budget in each stage of activity. This document explains the significant social impacts are social unrest and social conflicts resulting from land conversion, dust and mill’s smoke. There is no new cultivation on public land which is outside company’s concession, so company does not have to do an environmental and social impact assessment. PT BNS only conducting replanting activities in the operational area of Teluk Bakau Estate, Nusa Perkasa Estate and Nusa Lestari Estate, but not conducting area expansion or control the occupation area. Since the first Surveillance (September 2012) until second Surveillance (October 2013) there is no compensation for new land acquisition (Land Tenure) for legal or traditional rights loss within PT BNS operation area.


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.

Since the first Surveillance September 2012 until second Surveillance there is no compensation for new land acquisition (Land Tenure) for legal or traditional rights loss within PT BNS operation area. PT BNS undertake replanting activities in the operational area of Teluk Bakau Estate, Nusa Perkasa estate and Nusa Lestari Estate, but not conducting area expansion or acquisition in the occupational area.


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.

Company has consistently applied policies contained in the Manual Reference of Palm oil Agronomy Chapter 4, which is not using burning approach for new land clearing and replanting. Replanting conducted by contractor, for instance: PT Mitra Karya Perdana (BAPP is available dated April 30th, 2013 on behalf of PT Mitra Karya Jaya Perdana Number SPK 005/Replanting/BNS - TBE/IX/2012-Add II, the IX examination. type of work consists of: (1 ) collapsed, chopped & minced (from root to prone), (2) chopped tubers and roots, (3) explore and cover the hole of ex-hump with soil. Furthermore, based on field observations in Block E002 Division I Nusa Perkasa Estate, replanting activities done mechanically using heavy equipment such as excavators, it shows that company does not undertake burning in replanting activity. Company already has SOP for fire management (RSPO/B.5.2/BNS) which endorsed by Manager on May 1st, 2013. The procedure described from the preparation; establish fire extinguisher squad, maintaining water sources and mapped an inventory of fire-spot location, making fire hazard warnings, and fire tower. Furthermore fire control with extinguisher techniques as well as administrative and reporting. On the implementation of fire prevention and control procedures, company establisha Hot Spot Monitoring Management, such as: • Installation of Fire danger index Signboard

Figure 10. Zero burning land clearing


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• Map fire prone location in conservation forest and pringgan. • Fire tower with a height of 15 meters and a maximum capacity of 4 people. • Fire extinguisher team and emergency response station thus fire extinguisher • fire-fighting facilities and infrastructure, such as, 2 units of Engine Pumps brand Tohatsu, 1 unit of Robin Pump, 10 units Hose with a length of 20 meters, stick the nozzle, 2 units of socket, flashlights, machetes, hoes, jute sacks, buckets, HT radio, fire extinguisher PPE (uniforms, helmets, masks, gloves, boots). • Training and simulation of fire prevention, for instance, on May 22nd, 2013 fire extinguisher simulation by the Emergency Response Team located at Km 11.5Emplacement hut


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.

BNS has a monitoring and implementation action plan in estate and mill, which is stated in the RKL / RPL second half of July to December 2012 document and there is also a continuous improvement plan stated in Plantation Advisor and Mill Advisor visits which describes a plan to reduce or mitigate the identified negative impacts, such as : - Not using fire on replanting activities. - Not using chemical material along riparian canal in accordance with memorandum from chief of SOU. - Maintaining health in workplace by conducting regular medical examination for all personnel every year. - Provide opportunity for local community to provide transportation service in order to increase community’s economy. - Continuous air and noise quality management and monitoring every 6 months in collaboration with related agencies. - Cultivating special crop which able to save land water along riparian area and canal and perform a surveillance in HCV area of PT. BNS BNS has shown evidence of improvement on the findings during first surveillance, such as: • Company has shown letter from HCV assessor regarding the implementation of peer review. • Company has shown environmental documents for mill’s mandah which has been legalized by the management. • Company has shown installed SIO for boiler operators. • Company already has certified welders.



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3.2. Summary of Assessment Report of Supply Chain

Clause (Module D) CPO Mills - Segregation Requirements

1 Documented Procedures

1.1

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

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

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

a. Teluk Bakau Mill’s SOP is refer to Palm oil mill’s Technical Guidelines 1, 2 and administration which accordance with Memorandum from Head of Plantation operation No.POD-UM-154/VII/2010 on July 26th, 2010, such as contains: • Fruit acceptance No. 110/POD-FAC/07, boiling (sterilization) No. 110/POD-FAC/07, Striping No. 110/POD-FAC/07, Stirring (digesting) No. 110/POD-FAC/07, compression (pressing) No. 110/POD-FAC/07, Purification (clarification) No. 110/POD-FAC/07, fiber and shell separation No. 110/POD-FAC/07, Kernel stationNo. 110/POD-FAC/07, Palm Oil Hoarding No. 110/POD-FAC/07. • Teluk Bakau mill able to shows written procedures or work instructions for Supply Chain Certification Systems implementing (RSPO / P & C / SC - SOP-027/BNS/13) which set on January 30th, 2013. Requirements related to the implementation of the supply chain is set in this procedure from identification of raw materials, the palm oil manufacturing process and CPO shipment from mill to bulking station, CPO storage and shipment . for supply chain system with segregation model is regulated in section 7.3. SOP-027/BNS/13 where the RSPO certified FFB weight ticket is separated, in the daily production, it is stated the CPO and kernel production number, recapitulation report or 3 months balance report of the CPO and kernel production as well as the franco sale delivery. In SOP SCCS, listed an annex on standard requirements for supply chain Segregation model (Module D)

b. Responsible Personnel for the application of these requirements include:

- Factory Manager

Keep and maintain all documents and records of all raw materials and additional materials used in the production process and the quality of the final product.

Conducting verification on delivered products to buyers to make sure that product is in accordance with the invoice, delivery order, signed sales contract and product delivery note.

Provide adequate training for supply chain certification requirements to all staff that involved in the stages of the supply chain from raw materials acceptance, production processes, and storage and product delivery to buyers.

- Assistant Plantation Sustainable Quality Management (PSQM)

Checking the quality of FFB in mill and prepared the daily recapitulation. Supervise palm products delivery and unloading Conduct analysis on quality of raw materials and products in all stages of the production process Storing, maintaining and distributing the analysis results and raw materials quality testing and products to

related stakeholder

Assistant / Senior Assistant / Bulking Manager is responsible on CPO and PKO products transportation from mill to bulking station.i


1.2

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


ASSESSMENT REPORT


Documented procedures for the receipt and processing of certified and non-certified FFB are set forth in SOP SCCS product Segregation; in section 7.3. SOP-027/BNS/13 where the RSPO certified FFB weight ticket is separated, in the daily production, it is stated the CPO and kernel production number, recapitulation report or 3 months balance report of the CPO and kernel production as well as the franco sale delivery.

Teluk Bakau Mill, BNS did not receive FFB from outsiders or community, the whole processed FFB is derived from the certified main estate whichi comes from Teluk Bakau estate, Nusa Perkasa estate and Nusa Lestari Estate.


2 Purchasing and goods in

2.1

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

Teluk Bakau Mill, BNS did not receive FFB from outsiders or community, the whole processed FFB is derived from the certified main estate which comes from Teluk Bakau estate, Nusa Perkasa estate and Nusa Lestari Estate

FFB received by using FFB basket at the reception station and use a crane to weigh. The received FFB for weight has delivery note which completed with “RSPO Certified” stamp further to be inputted in SAP program with parameters: estate name, estate block, planting year, Transporter, arrival time, net weight. In the SAP system, during the acceptance, the FFB is not inputted if the estate is not registered as a certified estate (rejecting system) including if receive the fruit from outside estates.

The SAP program usage and FFB recording is part of verification and documentation in received certified and non-certified FFB.

Teluk Bakau mill, BNS has a computerized document and program for FFB acceptance, such as: 1. SPB Fruit delivery note and weigh ticket which explain the serial number of SPB , FFB origin , date of harvest, centrifuge of fruit, planting year, block, number bunches, tonnage, number of PC (pontoon container), number of lorry and date of the delivery. 2. SIME-weight program to determine the FFB acceptance information, CPO, Kernel, and other products. 3. Mill Acceptance reports which describe the received product, date of receipt, estate origin, PC number (pontoon container), operator (tug boat), SPB numbers, weigh ticket number, delivery date, time of weigh in and out, brutto weigh, weigh out, net weight. Estate code (such as Teluk Bakau estate/ E454, Nusa Lestari estate / E458 and Rotan Semelur estate / E455) 4. FFBGS program (Fresh Fruit Bunch Grading System) which describes the quality of FFB based on FFB grading results and able to inform (FFB quality, determination of CPO and kernel production from each estate suppliers).


2.2

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

When there is an excessive production from what has been projected, Company will inform the certification body. This is in accordance with regulation which is memorandum from Head of PSQM dated February 27th, 2013 regarding the RSPO Supply Chain Systems which directed to Estates GM / Mill/ Head Zone, Estates Manager, Plant, Head of Marketing. In memorandum Section 2.3 stated that mill should inform the certification body if there is a change between actual production and production stated on the RSPO certificate.

Teluk Bakau mill, BNS can claim their products are certified during one year for CPO production amount 66.815 tons and palm kernel amount 9.867 tones fro period October 11th, 2012 to October 10th, 2013.

During the second surveillance audit, number of generating CPO and kernel from Teluk Bakau mill since October 11 th, 2012


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until September 30th, 2013 is 39,118.062 tones of CPO and 7,736.703 tones for Palm Kernel

Until the audit surveillance, CPO and Kernel production that can be claimed as a certified product was not exceeding the projected production, but Teluk bakau mill’s management committed to provide information for mu tuagung lestari if the CPO and kernel production is exceeded the projected amount.

POM-BNS Teluk Bakau, Minamas Plantation sold their RSPO certified product such as CSPO and CSPK through UTZ with the e-trace system.


3 Record keeping

3.1

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

FFB acceptance, FFB processing until producing of CPO and kernel is documented and recorded. The record is like a daily note of the palm oil and kernel production process as well as preliminary storage for oil palm. The record can be shown and access easily and very well, for instance during the observation in the Teluk Bakau mill, the daily record and summary of FBB acceptance, daily report on production and monthly performance report is easily shown to the audit team.

The entire record and report has been created and stored by company. Storage system is in the form of soft copy in System Application Program (SAP), Sime-Weight Programme for weighing FFB, CPO and Palm Kernel, FFBGS (Fresh Fruit Bunch Grading System) to determine the quality of FFB to be processed, while the documents in hard copy (print out) stored in the administration room of Teluk Bakau mill.

Teluk Bakau mill has a Daily Production Report which explain all aspects such as recording on incoming and processed FFB, CPO Capacity and Quality, Kernel Quality and Capacity, CPO and Kernel deliverance, Stock Production of CPO and Kernel.


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

The shelf life of the document and report which associated with supply chain systems (SCCS) is 5 years old and is set in the record control procedure (SPO/010/BNS/MDF-PC/IX/12) that established on September 1st, 2012. In the procedure, section 6 points E.1 has been described the expiration and destruction time for the examination needs/ audit assessment is 5 years old.


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.

Teluk Bakau mill has a record in a format of balance all RSPO certified FFB receipts and CPO delivery every month. The format is describing in SOP-027/BNS/13 which describe the processed FFB (Ton), CPO Production (Ton) and Kernel Production (Ton) this description also stated on monthly production report, for instance monthly summary for certified FBB, CPO and kernel. During the second surveillance, total production for period October 11 th, 2012 until September 30th, 2013 is 39,118.062 tons of CPO and 7,736,703 tones of Palm Kernel.


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


ASSESSMENT REPORT


Teluk Bakau mill, BNS has shown Sales Contract documents:

a) CPO Product with Sales Contract No. 00141/BNS/KTR-MKS/LOK/VII/2013 on July 26th, 2013 which explains trading name of CPO (Crude Palm Oil) with the quality of Free Fatty Acid (As Palmitic) maximum 5%, Moisture and Impurities of maximum 0.5%, Quantity 4,000,000 kg

b) Kernel product with Sales Contract No. 00089/BNS/KTR-IKS/LOK/VIII/2013 on August 15th, 2013 which explains trading name of the Palm Kernel, product quantity amount 750,000 kg of, Moisture, Impurities, Shell, dirt of maximum of 16%.

Based on documents review, Sales Contract describes the segregation supply chain model and describe the product being sold is RSPO certified products, it has been in accordance with SOP of teluk bakau mill.


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

Teluk Bakau mill, BNS has ensured all invoices for palm oil delivery already contains the necessary information such as invoice No. 00270/BNS/VII/2013 for CPO products which explain: a) Buyer name, for instance PT. Synergy Oil Nusantara which located at Jalan Raya Pelabuhan Kabil KM.12,5 Kabil, Batam, Riau-29400. b) Invoice issued on July 26th, 2013 c) Description of the Crude Palm Oil products, explain the types of certified RSPO products is Segregation. d) Number of delivered products amount 4,000,000 Kg e) Agreed Delivery and transportation is CPO Bulk, where buyer takes the product from bulking station.


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.

Production stage for certified FFB into CPO and kernel are documented on daily record including stock of product and delivery. For Teluk Bakau mill, all incoming FFB is certified (100%) but still receive non-certificate FFB. If there is a mixing or contamination in the procedure, it should not exceed 5% and this is set out in section 7.3.1 SOP SCCS (SOP-027/BNS/13).

Teluk Bakau Mill, BNS did not receive FFB from outsiders or community, the whole processed FFB is derived from the certified main estate which comes from Teluk Bakau estate, Nusa Perkasa estate and nusa Lestari Estate. Company ensure that all generated product is 100% RSPO certified.


5.2

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


ASSESSMENT REPORT


Teluk Bakau mill shown a systematic documentation which provide traceability of product up to the source of raw materials, through Weight Bridge System

Teluk Bakau Mill only processed FFB from main estate (certified estate) and not received FFB from other source.

Every RSPO certified product has D / O document which contain CPO product to be delivered and attached the Minutes, for instance D / O: Delivery Order, No Contracts, Supply Chain Model (stamped SG), Quantity, reference documents such as loading minutes and Segregation RSPO Certified stamps. Further based on the existing stock, we found that the status of stock in storage tank is certified.


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

Teluk Bakau mill not perform kernel or palm kernel processing into Palm Oil Kernel or there is no out sourcing activity for palm kernel crushers.


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

Teluk Bakau mill, BNS has conducted RSPO Supply Chain Certification Systems training on July 30 th, 2012 in Nusa Lestari Estate office, which delivered by department of Plantation Sustainability Quality Management (ESH Manager) and attended by 18 personnel from Estate and mill. To ensure that SCCS system runs well, company is encouraged to create training program related to Supply Chain also to ensure the competence of personnel whom involved in the supply chain process of segregation model.


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.

PT BNS with Teluk Bakau mill had arranged the usage of certified oil to support the RSPO certified product in accordance with RSPO Guidelines for Communication and Claims, all re listed in the Sales Contract, Delivery Order and Invoice.

Management of certified oil usage has been explained in SPO supply chain systems procedure (supply chain); SOP-027/BNS/13 revision 1, dated June 4th, 2013, with attached the RSPO regulation on Communication and Claims (RSPO Guidelines for Communication and Claims) in part 3.8 (reference) and point 8.3 (special conditions).



ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use

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

X or√

S-2 Teluk Bakau POM, BNS has logo and certificate approval/permit number MUTU-RSPO/008


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

X or√

S-2 The Certificate Holder is using the logo on the uniform according size and type (shape) against Guideline of Logo Use


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

X or√

S-2 The Company does not use the logo on-product within the scope of PT.Bhumireksa Nusasejati.


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

X or√

S-2 Controlling and use of certificate or logo has been accordance with RSPO Guidelines Communication and Claims.



ASSESSMENT REPORT


3.4. Summary of RSPO Partial Certification.

The Management Unit name, under subsidiaries:

2.1

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

X or√

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

√

2.2

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

X or√


√

6.3

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

X or√


√

6.4

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

X or√


√

7.3

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

X or√


√

7.5

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

X or√


√

7.6

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


√


ASSESSMENT REPORT


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

3.5.1 Identification of Findings, Corrective Actions and Observations at Surveillance-1 Assessment

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2012.

01

Major

2.1.1

Regulatory Compliance.

BNS has not yet fully complied with the

applicable regulation, such as:

1. Boiler operators in Teluk Bakau POM

has expired Operator Licenses (SIO),

which was not in accordance with

Regulation of Labour Ministry No. 1 year

1988 regarding the qualification of boiler

operator.

2. Welders in Teluk Bakau POM do not

meet the requirements as welders in

accordance with Regulation of Labour

Ministry No. 2 Year 1982 regarding

qualifications of welder at work.

3. There is a sterilizer certificate that had

been expired, for example Sterilizer

Certificate No. 1 with a validity period of

29 March 2012 but there is no result of

re-examination from relevant institution

found.

POM Major 7

Novem

ber

2012

4 November 2012.

1. BNS has shown a certificate of Boiler

Operator License Renewal of Teluk Bakau

POM on 4 October No. 296/AP/K3/X/12 to

the relevant institution.

4 November 2012.

2. BNS has conducted Certification training

for Welders on 17-20 October 2012 for all

workers. Records evidence of the training

(attendance of the participants, training

materials) is available.

18 September 2012.

3. BNS has performed inspectionand

extended the license for sterilizer No.1 in

Teluk Bakau POM.

Based on the evidence

given, BNS has shown

improvement on the

regulatory compliance.

Closed 5

November

2012


ASSESSMENT REPORT


3.5.2 Identification of Findings, Corrective Actions and Observations at Surveillance-2 Assessment

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

During the assesment, there were Nonconformities assigned against Major Compliance Indicator, Minor Compliance Indicators and supply

chain requirement. But there were 10 opportunity for improvement were

identified.

- - - - - - -

3.5.3 Opportunity for Improvement

No Ref Std Descriptions

2013. 01

Major 2.1.1 Plantation Business License (Teluk Bakau POM). Allowed capacity based on Plantation Business License (SPUP) owned by teluk bakau mill is 30 tonnes FFB/ hour which legally not adjusted to the actual capacity installed in Teluk Bakau mill which is 60 tons FFB / hour.

2013. 02

Major 4.6.3 Documentation on Chemicals usage instruction Company need to ensure the availability of MSDS for all chemicals usage in mill and estate

2013. 03

Major 4.6.4 Agrochemicals waste were disposed in accordance with applicable regulation Companies need to ensure that all pesticide packaging waste were disposed in accordance with applicable regulation.

2013. 04

Major 4.7.1 Occupational health & safety Implementation Company ensures all contractors are working with a complete PPE in accordance with work hazard risk.

2013. 05

Minor 4.7.5 Emergency Response Preparedness Company has a chance to increase the preparedness of emergency response equipment in order to be always in a ready to use condition.


ASSESSMENT REPORT



2013. 06

Minor 4.7.6 First aid Equipment Fulfillment Company need to improve the monitoring of first aid emergency equipment in accordance with company’s physician recommendation.

2013. 07

Minor 5.6.2 Methodology of identification record, monitoring, and POME management. Teluk Bakau mill should ensure that the water level tools should be in a good condition in order to be able to record water level as part of POME management monitoring.

2013. 08

Major 6.1.1 Environmental and social impact assessment Environmental and social impact assessment that has been done for Nusa Perkasa Estate area (2-6 September 2013) need to be completed with documentations such as reports or management plans and monitoring which involving local community.

2013. 09

Minor 6.5.1 Infrastructures for Personnel’s Welfare. Company is encouraged to implement the housing improvement program for employees.

2013. 10

Major 6.6.1 Registration for SSPP-SPSI (worker union) Board. Teluk Bakau mill needs to ensure that the SP and the existing union board is recorded/ communicated to Manpower and transmigration department.

3.5.4 Noteworthy Positive Components


1 1.1 BNS was present data and information fairly well.

2 Major 5.5.1

Replanting activities are done quite well with the implementation of land clearing without burning.

3 Minor 5.5.1

Company has an adequate fire extinguishers facilities (fire monitor tower, water pump machine, hose, nozzle) and supported by the Concerned Fire community (MPA) as part of fire prevention tools within company and surrounding village area

4 Minor 6.5.1 BNS has been providing educational facilities from kindergarten to high school.

5 6.11 BNS provides an opportunity like scholarship program through Minamas Plantation to high school students (children of company personnel and surrounding villagers)


ASSESSMENT REPORT


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

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

Department of manpower and transmigration of Indragiri Hilir

district.

a. workers union has been established and registered in department b. Report on SMK3 Implementation has been accepted by department c. Minimum wage for Indragiri Hilir district is Idr 1.492 million

a. is in accordance with field condition b. is in accordance with field condition c. is in accordance with Riau Governor decision letter

a. Explanation on Criteria 6.6 b. Explanation on Criteria 4.7 c. Explanation on Criteria 6.5

Department of plantation of Indragiri Hilir district

a. Plantation business development reports for the last 2 years have not received by department yet.

b. BNS is building a new mill, but the plantation business license is not issued yet.

a. Progress report of Plantation Business Semester II, 2012 has been delivered to PSD Jakarta.

b. IUP-P registration is under process.

Plantation Business Permit–management for mandah mill is under registration process. This will become observation material for upcoming audit.

Department of forestry of Indragiri Hilir district.

Forest release permit for area under BNS management has been issued by Department.

Is in accordance with field conditon

described in Criteria 2.1

Department of environment of Indragiri Hilir district

a. There is note on smoke pollution within teluk bakau Mills b. PT. BNS hazardous waste has not been handled and emissions

monitoring facility still need some improvements

a. This incident has been communicated with surrounding community and corrective action for air emissions had been undertaken and ambient air quality standard is already in accordance with standar.

b. Licensed collector is not willing to take the hazardous waste due to unavailable of water transportation permit. This has been communicated with BLHD Indragiri Hilir district.

c. Stairway for Boiler chimney in TBF already constructed.

Company shows an evidence of hazardous waste management efforts; however, there is still difficulty to distribute the hazardous waste due to un present capable and licensed third party. Company was encouraged to obtain a decision from local BLH related to this issue.

National Land Agency of Indragiri Hilir district

a. Area of land tenure was marked with a land used title from government institution. There are 2 land used title in Rotan Semelur Village which covering an area of 13,900 ha (HGU No. 70/HGU/BPN/1994) and Tegaraja Village covering an area of 11,726 ha (HGU70/HGU/BPN/1995). Total area is 25,626 ha.

b. From the field Survey results, there is no indigenous land in Indragiri Hilir district

a. is in accordance with field conditon b. is in accordance with field conditon

Explanation on Criteria 2.2


ASSESSMENT REPORT


Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

Hidayat village.

Head of Medan Baru sub village (Hasbullah), head of neighborhood Parit

Terap III, community representative from Medan Baru sub village,

community representative from Parit terap II, and community’s

representative from Parit terap III.

a. In general, company relationship with Hidayat village goes well b. There is a coconut theft within community estate and there is a trace

of coconut found within company’s area. c. Road in the terap II sub village is damaged, because it is often used

and plantation personnel also use this road as an access road. d. Company had provided meat assistance in 2009 e. Company has been offer educational facilities for community, but due

to the location of the school and the difficult access, community choose to study in madrasah.

a. Company will strive to maintain good relations. b. Company will take decisive action when it is proven that BNS

workers stealing coconut from community estate, company also expected community’s cooperation to report the coconut steal

c. Company is conducting socialization and negotiations related to canal and roads construction that pass through the Terap III sub village, Hidayat Village. Company will conduct socialization to personnel to used the road that passes through Terap III sub village

d. Company provision of assistance is alternately implemented every year, because the number of managed village is quite a lot.

e. Company continues to provide opportunities for people who want to go to company’s school.

Penjuru Village, Parit sub village Parit V community (Darwis, Imail, Ismail O, Ahmad, Muksin)

a. In general, social interaction between Parit V community with company running well.

b. Community being helped by social assistance from company such as groceries and meat assistance.

c. Community expects to receive training and empowerment related to community welfare improvement.

d. Community not yet aware of company's commitment not to undertake the land management related to new plantation in land used title area occupied by community.

a. Company will strive to maintain good relations. b. Company will provide assistance in accordance with company

policy. c. Company will consider the matter. d. Company will communicate this issue with relevant parties.


ASSESSMENT REPORT


4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

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

Signed on behalf of:

PT Bhumireksa Nusasejati, Sime Darby

Mutuagung Lestari

Head of PSQM

Lead Auditor

Mohamad Pirabaharan

Octo HPN Nainggolan

Friday,18 October 2013

Friday,18 October 2013


ASSESSMENT REPORT


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

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

Date of Contact

1 Rural Community Leaders Penjuru

Village - Interview 30/09/2013

2 Village head and Village of

Community Leaders

Hidayat

Village - Interview 30/09/2013

3 JIKALAHARI (Jaringan Kerja

Penyelamat Hutan Riau) Pekanbaru

Telp. (0761) 27875

Fax. (0761) 27875

[email protected]

Questionnaire

via email 01/06/2013

4 “JARAINGAN MASYARAKAT

GAMBUT RIAU” Pekanbaru

a/n. Halim,

Hp.0813.6594.2590, email:

[email protected]

Questionnaire


5 WWF Pekanbaru

a/n Suhandri

Hp.0812.7522.745,

[email protected]

Questionnaire


6 Social, Labor and

Transmigration Agency

Keritang Road, No. 47, Tembilahan Hilir – Riau

Telp ( 0768) 23762

Fax. (0768) 21678 Interview 27/05/2013

7 Plantation Agency

Pendidikan Road, No. 06, Tembilahan – Riau

Telp. (0768) 211138 / 2130 Interview 27/05/2013

8 Forestry Agency


Tlp. (0768) 21138, 22103

Fax.( 0768) 21301 Interview 27/05/2013

9 Environment Agency Tembilahan –

Riau Interview 27/05/2013

10 Head of National Land Agency


Tep. (0768) 21060 Interview 27/05/2013




ASSESSMENT REPORT


DATE 29-30 September 1, 2, 4 October 2013

ACTUAL DURATION

PROCESSES / CLAUSES TO BE AUDITED

AUDITOR

Sunday, 29 September 2013

06.30 - 08.10

10.00 – 12.30

Jakarta – Batam Batam – BNS (Teluk Bakau)

ON / SHL / ARD / NK / PN

Monday, 30 September 2013

08.00 - 08.30

08.30 - 12.00

Opening Meeting Document Review

Teluk Bakau POM and Supply Base (Teluk Bakau & Nusa Perkasa) Legal aspect, environmental aspect, best management practices and social aspect

Review of Previous Visit Non-conformance (surveillance-1)



12.00 – 14.00 BREAK

14.00 – 17.00 Field Observation Teluk Bakau Mill:

WWTP (IPAL), Operational, K3 (OHS), Supply Chain Public Consultation

Stakeholders & community (Penjuru, Simbar, Belaras, Hidayah

ON / SHL / NK

ARD / PN

Tuesday, 1 October 2013

08.00 - 12.00 Field Observation Nusa Perkasa Estate: a. Operational (Legal Boundary) & HCV Area b. Best Practice: Manuring, Spraying, Harvesting, best agricultural practices c. Worker facilities: housing, health clinic, clean water, etc), Land Fire facilities,

Storage, et.

a. ARD b. ON / SHL c. NK / PN

12.00 – 14.00 BREAK

– 17.00 Continue of Checklist Review and Follow up from Field Observation

Public Consultation (related community, villagers, contractors, Worker Union, Gender Committee, etc..)

a. ON / SHL / ARD b. NK / PN

Wednesday, 2 October 2013

08.00 - 12.00

Field Observation Teluk Bakau Estate: a. Operational (Legal Boundary) & HCV Area b. Best Practice: Manuring, Spraying, Harvesting, best agricultural practices c. Worker facilities: housing, health clinic, clean water, etc), Land Fire facilities,

Storage, et..

a. ARD / PN b. ON / SHL c. NK

12.00 – 14.00 BREAK

14.00 – 17.00 Continue of Checklist Review and Follow up from Field Observation

Review of Previous Visit Non-conformance (surveillance-1)


Friday, 4 October 2013

09.00 - 11.00 Closing Meeting ON / SHL / ARD / NK / PN

12.00 – 15.00 BNS (Teluk Bakau) – BATAM ON / SHL / ARD / NK / PN

ON:Octo HPN Nainggolan ARD: Ardiansyah NK: Naila Karima SHL: Sofyan Hadi Lubis PN: Panggading

Appendix 2. Assessment Program


ASSESSMENT REPORT


Appendix 3. Glossary

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

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

B3 : Bahan Beracun and Berbahaya (Hazardous Material Waste)

BKSDA : Balai Konservasi Sumberdaya Alam (Natural Resources Conservation Agency)

BOD : Biological Oxygen Demand

BPN : Badan Pertanahan Nasional (National Land Agency)

BNS : Bhumireksa Nusasejati

BTG : Batas Tingkat Getaran (Vibration Level Standard)

CPO : Crude Palm Oil

EFB : Empty Fruit Bunch

ESH / K3 : Environment, Safety and Health

HCV : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Hak Guna Usaha. (Land Use Permit)

HIRARC : Hazard Identification Risk Assessment and Risk Control

IUP : Izin Usaha Perkebunan. (Plantation Business License)

IPAL / WWTP : Instalasi Penyaluran Air Limbah (Wastewater Treatment Plant)

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

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

MNE : Mandah Estate

MRC : Minamas Research Centre

NAB : Nilai Ambang Batas (Noise Intensity)

NLE : Nusa Lestari Estate

NPE : Nusa Perkasa Estate

OER : Oil Extraction Rate

P2K3 : Panitia Pelaksana Keselamatan and Kesehatan Kerja (Occupational Safety and Health Committee)

P&C : Principle and Criteria

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

PK : Palm Kernel

PKO : Palm Kernel Oil

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

PSD : Plantation Services Departement

PSQM : Plantation Sustainability and Quality Management

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

RSE : Rotan Semelur Estate

RSPO : Roundtable on Sustainable Palm Oil

SOP : Standart Operating Procedure

SOU : Strategic Operation Unit

TBE : Teluk Bakau Estate

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

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

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