[ ]Stage 1 Stage2 [ ] - RSPO...Prepared by Mutuagung Lestari for Sarana Titian Permata 2.0...

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

[ ]Stage 1 [√]Stage2 [ ]Surveillance

Plantation Management/Owner : WILMAR INTERNATIONAL LIMITED

Plantation Name : PT SARANA TITIAN PERMATA

Location : DISTRICT OF SERUYAN, : KALIMANTAN TENGAH PROVINCE

Certificate Code : MUTU-RSPO/XXX

Date of certificate issue : -

Date of expiry of certificate : -

Assessment Assessment

Date

Report Finalization

Date

PT. Mutuagung Lestari Auditor

Checked by

Approved by

ST1 23 March 2012 –

30 March 2012

10 April 2012 Deni A. Novendi (Lead Auditor), Heri Antoni, Muardi Marwas, Marsudi

Eko Santoso

Taufik Margani

Tony Arifiarachman

ST2 7 May 2012 – 11 May 2012

1 June 2012 Nanang Mualib (Lead Auditor), Heri Antoni, Muardi Marwas, Marsudi

Eko Santoso

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

Submitted to RSPO on:

Approved by RSPO on:

Approved by Certification Body on:

14/08/2012 - -

http://www.mutucertification.com/

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.4 i Prepared by Mutuagung Lestari for Sarana Titian Permata

TABLE OF CONTENTS

FIGURES

Figure 1. Location Map of PT Sarana Titian Permata Figure 2. Operational Map of PT Sarana Titian Permata

1 2

1.0 SCOPE of the CERTIFICATION ASSESSMENT

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Plantations, Mill and Area Statement 3

1.5 Description of Supply Base 4

1.6 Dates of Plantings and Cycles 5

1.7 Tonnage claimed for Certification 5

1.8 Other Certifications 6

1.9 Time-Bound Plan for Other Management Units 6

2.0 ASSESSMENT PROCESS

2.1 Certification Body 8

2.2 Lead Assessor and Assessment Team 8

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 8

2.4 Stakeholder Consultation and List of Stakeholders Contacted 11

2.5 Determine Next Visit 12

3.0 ASSESSMENT RESULT

3.1 3.2

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

13 40

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

42

3.4 Summary of Arising Issues from Public, Management and Auditor Responses 48

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings 50

APPENDICES

1. Peer Review Report 51

2. Result of RSPO Committee - RSPO Certification 52

3. List of Stakeholders Contacted in the RSPO Certification Process 53

4. Assessment Plan 54

5 Glossary 58


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SPO – 4006a.4 Page 1 Prepared by Mutuagung Lestari for Sarana Titian Permata

Figure 1. Location Map of PT Sarana Titian Permata


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Figure 2. Operational Map of PT Sarana Titian Permata


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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 Supply Chain Requirement for CPO Mill, November 2011.

1.2 Organization Information

1.2.1 Company name WILMAR INTERNATIONAL LIMITED

1.2.2 Contact person SIMON SIBURAT

1.2.3 Company address 56 Neil Road, Singapore 088830

1.2.4 Telephone (65) 6216-0244

1.2.5 Fax (65) 6836-1709

1.2.6 E-mail [email protected]

1.2.7 Web page address www.wilmar-international.com

1.2.8 Company status Foreign Capital Investment

1.2.9 Management Representative who completed the application for certification

SIMON SIBURAT

1.2.10 Registered as RSPO member 2 September 2005

1.2.11 Number of employees 3,579

1.2.12 Contractors 7

1.3 Type of Assessment

1.3.1 Scope of Assessment Mill and Estates

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT SARANA TITIAN PERMATA

1.3.4

Number of management unit

1 (one) palm oil mill unit (Sarana Titian Permata POM)

supplied FFB from 3 (three) estates, i.e. STP 1, STP 2

and STP 3.

1.4 Locations of Plantations, Mill and Area Statement

1.4.1 Location of estate

http://www.wilmar-international.com/


ASSESSMENT REPORT


Name of Estate(s) Location

GPS

Latitude Longitude

STP1 Sub district of Seruyan Hilir, District of Seruyan, Kalimantan Tengah Province

2˚ 52' 3" S 112˚ 30' 54" E


2˚ 53' 1" S 112˚ 32' 55" E


2˚ 54' 28" S 112˚ 36' 49" E

1.4.2 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Sarana Titian Permata POM

Sub district of Seruyan Hilir, District of Seruyan, Kalimantan Tengah Province

2° 53' 40 S 112° 32' 37" E

1.4.3 Maps ( Figure 1 & Figure 2 )

1.4.4 Country Indonesia

1.4.5 Region South East Asia

1.4.6 Tenure

Private -

State 19,979 Ha

Community -

1.4.7 Area Statement

Total area 19,979 Ha

Mature area 14,757.84 Ha

Immature area 1,983.90 Ha

Mill 11.40 Ha

Unplanted area (lowland) 963.28 Ha

Occupation 358.68 Ha

Not Planted 74.00 Ha

Road and emplacement 471.14 Ha

HCV 1,358.76 Ha

1.5 Description of Supply Base

1.5.1 Estates


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Name of Estate(s) Total planted

To Area (Ha)

Mature Planted

Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

STP 1 5,277.22 4,529.29 41,081 9.07 41,081 20.47

STP 2 6,207.57 5,625.78 64,539 11.47 64,539 32.15

STP 3 5,256.95 4,602.77 43,739 9.53 43,739 21.79

Total STP 16,741.74 14,757.84 149,360 10.12 149,360 74.42

Others Sources (see 1.5.2) - - - - 51,331 25.58

Total - - - - 200,691 100

*Source: Data of FFB receiving for Mill in March 2011 - February 2012

1.5.2 Smallholders and others

Other Sources Members Location

Total Area (Ha)

FFB (tonnes/year)

Supplied to STP POM

FFB (tones/year)

%

Kerry Sawit Indonesia 1

Wilmar Group District of Seruyan 7,466 129,097 1,011 0.50





Bumi Sawit Kencana 1

Wilmar Group District of Seruyan 5,412 85,532 144 0.07

Mustika Sembuluh 1


Mustika Sembuluh 2


Rimba Harapan Sakti


Total 50,893 684,500 51,331 25.58

*Source: Data of FFB receiving for Mill in March 2011 - February 2012

1.5.3 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 (%)

STP POM 45 200,692 44,747 22.12 8,470 4.41 - -

*Source: Data of production in the Mill, March 2011 - February 2012

1.5.4 Product categories FFB, Crude Palm Oil and Palm Kernel

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*


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Planting Year Hectare (Ha)

Age (year)

2006 2,571.04 6

2007 6,137.42 5

2008 6,616.18 4

2009 1,260.12 3

2010 156.95 2

Total 16,741.74

1.6.2 New Development area after November 2005 - Ha

1.6.3 Planting Cycle 25 Years

1.7 Tonnage claim for certification

1.7.1 Past Annual Claim Certified Product (Not been Certified)

FFB Production - Tonnes/year

CPO Production - Tonnes/year

Palm Kernel (PK) Production - Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

*will be verified after the company certified

1.7.2 Claim Certified Tonnages of FFB

Name of Estate Total Area

(Ha) Planted Area

(Ha) FFB

(tones/year) Yield

(tones/ha/year)

STP 1 5,277.22 4,529.29 55,000 12.14

STP 2 6,207.57 5,625.78 85,500 15.19

STP 3 5,256.95 4,602.77 59,500 12.92

Total 16,741.74 14,757.84 200,000 13.55

*Source: Budget Production in 2012.

1.7.3 Claim Certified Tonnages of Palm Product

Name of Mill Capacity

(tones/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tones)

Extraction (%)

Out put (tones)

Extraction (%)

Out put (tones)

Extraction (%)

Sarana Titian Permata

45 198,000 45,544 23 7,921 4 - -

*Source: Milling Projection 2012

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others Plantation get certificate by plantation agency kalimantan tengah province as catagorized C “”

1.9 Time-Bound Plan for Certifying Other Management Units

Management Address (Province) Hectare (Ha) Certification In Complete


ASSESSMENT REPORT


Unit Audit

Milano Sumatera Utara 4,947 - certified

Mustika Sembuluh Kalimantan Tengah 16,424 - certified

Kencana Sawit Indonesia Sumatera Barat 7,728 - certified

Kerry Sawit Indonesia Kalimantan Tengah 15,754 - certified

Tania Selatan Sumatera Utara 3,644 - certified

AMP Plantation Sumatera Barat 7,561 - Audited

ANI (Sambas) Kalimantan barat 7,780 - audited

PT Buluh Cawang Plantations Sumatra Selatan 5,134 2012 2012

PT Tania (Bamboo Kuning) Sumatra Selatan 2,307 2012 2012

PT Bumi Sawit Kencana Kalimantan Tengah 7,269 2012 2012

PT Gersindo Minang Plantations

Sumatera Barat 3,228 2012 2012

PT Permata Hijau Pasaman West Sumatera 2,044 2012 2012

PT Agro Palindo Sakti Sumatra Selatan 1,048 2013 2013

PT Citra Riau Sarana Riau Province 2,459 2013 2013

PT Daya Labuhan Indah Sumatera Utara 4,988 2013 2013

PT Milano (CDE) Sumatera Utara 618 2013 2013

PT Mentaya Sawit Mas Kalimantan Tengah 7,384 2013 2013

PT Asiatic Persada Jambi 14,864 2013 2013

PT ANI (Landak) Kalimantan Barat 3,307 2013 2013

PT Pratama Prosentindo Kalimantan Barat 1,242 2013 2013

PT Putra Indotropical Kalimantan Barat 2,400 2013 2013

PT Agro Palindo Sakti Kalimantan Barat 2,284 2014 2014

PT Daya Landak Plantation Kalimantan Barat 1,320 2014 2014

PT Indoresin Putra Mandiri Kalimantan Barat 2,558 2014 2014

PT Murini Sam Sam Riau 1,288 2014 2014

PT Sinarsiak Dianpermai Riau 1,114 2014 2014

PT Karunia Kencana Permaisejati

Kalimantan Tengah 12,354 2014 2014

PT Rimba Harapan Sakti Kalimantan Tengah 8,300 2015 2015

PT Buluh Cawang Plantations Kalimantan Tengah 1,607 2015 2015


ASSESSMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

Jl. Raya Bogor Km 33.5 No. 19, Cimanggis - Depok 16953

Phone +62-21-8740202; Fax +62-21-87740745/46

Website: www.mutucertification.com

Email : [email protected]

2.2 Lead Assessor and Assessment Team

2.2.1 Assessment Team

The assessment team comprised: a. Deni A. Novendi (Lead Auditor at ST1). Bachelor of Forest. Natural Resources conservation department

special in ecology and social. He involved in study of social economy of Citanduy-Cisanggarung watershed, Ciamis district, and East java. And also have experience within 13 years in forest planning and conservation on forest concession at Indonesia. Since 2003, he worked for independent certification body as auditor for forest sustainable certification (FSC and LEI scheme); Chain of study, ISO 9001 and RSPO. He audited for several companies. In assessment, he focused on environmental aspects, Commitments to transparency, legality and the social Aspect.

a. Nanang Mualib (Lead Auditor at ST2). Bachelor of Forestry at Department of Forestry Technology, Faculty of Forestry, Bogor Agricultural University. He had a working experience in a forest company (HPH) from year 2000 to 2004 as technical assistance in the implementation of Sustainable Forest Management program, collaboration between the Faculty of Forestry and WWF-Indonesia since December 2006 to 2011. Professional experiences include: social studies of HCV in monitoring of the implementation of Sustainable Forest Management, involved in the HCV identification in three oil palm plantation companies in Indonesia. Currently he works as a professional consultant and HCV assessor. In the Stage-2, he conducted the assessment on the aspects of environment, social, legal, management of HCV.

b. Muardi Marwas (Auditor). Bachelor of Agriculture. Followed the Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor training, ISPO Lead auditor training and distribution quality management process - APMEA. He had involved several time in RSPO certification assessment as an auditor. In stage 2, he focused to verify best management practices and environmental.

c. Marsudi Eko Santoso (Auditor). Bachelor of Science in Agriculture, majoring in Agro technology. Followed the Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor training, ISPO Lead auditor training and distribution quality management process - APMEA. He had involved several time in RSPO certification assessment activities as an auditor. Currently he works for Independent Certification Body. In this assessment, he assess on Best Practices, Soil and water conservation, Integrated Pest Management and workers welfare.

d. Heri Antoni (Auditor). A bachelor of Fisheries, Department of Fisheries Social Economics. A specialist in the study of Social Economics Science. He experienced in the study of EIA (Environmental Impact Analysis), community empowerment and performance appraisal of management unit of Forestry companies. In the main-assessment, he conducted an assessment on social aspects.

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Assessment Dates

ST1 March 19-22, 2012

ST2 May 7-11, 2012

2.3.2 Estimate of person-days to implement assessment

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT


ST1

Number of auditors : 4 persons Number of days for assessment at site : 4 days Number of working person-days for assessment at site : 16 person days

ST2 Number of auditors : 4 persons Number of days for assessment at site : 5 days Number of working person-days for assessment at site : 16 person days

2.3.3 Details of assessment process

ST1

Stage 1 aims to assess the readiness of PT Sarana Titian Permata (STP) in applying the principles and standards

that refer to national interpretation: Principles and criteria for sustainable palm oil production, dated May 2008. The

Assessment is carried out by the method of a) document review, assessment of the completeness of the

documentation related to STP land tenure, social and environmental management, integrated pest management and

agrochemicals treatment; b) field visits in order to see the fulfillment of the field implementation on the ground c)

interviews, re-verification to get more information concerning the sustainable management of the company.

Outcome of the assessment will serve as a reference for the Stage 2.

ST2 Stage 2 is carried out to assess the management of PT Sarana Titian Permata in applying standards of plantation

sustainability. The implementation refers to the national interpretation: Principles and criteria for sustainable

production of palm oil (RSPO-NIWG INA), of the Republic of Indonesia, dated May 2008. Auditors shall assess the

efforts of the company to comply with such standards. The assessment is done by the method of a). Public

consultations, hearings involving the community and relevant agencies b) review of documents, assessment of the

validity of company documents related to land tenure, and social and environmental management c) Site visits,

verification of the issues that arise during public consultation and also the implementation of the field management. d)

Interview. Auditors shall also assess the corrective action taken by STP to correct the discrepancies that occur at

Stage 1.

Public stakeholder consultation held simultaneously in two ways on May 8, 2012 at:

a. Auditor visited relevant institution i.e Environmental Agency, Labor Agency, National Land Agency, Forestry

and Plantation Agency.

b. Meeting with local community in Rumah panjang Kuala Pembuang, District of Seruyan. The hearing is

attended by Local Non Government Organizations, representative of the Tanjung Rangas and Pematang

Limau Village, Head of Sub district and Head of Village.

The results of review document and field visit have included n the summary report. These results have been submitted to the management unit. STP demonstrated high commitment in the implementation of standards of sustainable palm oil; therefore the auditor team recommended that STP is granted with RSPO certificate.

2.3.4 Locations of Assessment

The sampling locations which selected by Audit Team based on:

1. Number of sites visited, which is determined by the formula 0.8 √ y.

2. The sites selected represent each of operational working area.

3. The consideration of issues arising from the results of public consultations and document review those are

fundamental and crucial.

The sites visited are completely presented as follows:

ST1

Location 1 – Boundary pole on STP-001 (Boundaries pole between STP and the community land of Sembuluh

and Tanjung Rangas Villages). Observation on the outcome of boundaries mark and interview with EHS

(Environmental & Health Safety) officers related to the security against land appropriation and fire.

Location 2 - Block STP 06 (former burnt land on June 2011). Observation on land condition and interview with

EHS officers related to rehabilitation efforts and future management plan.


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Location 3 - Boundaries pole on STP 134 (Boundaries pole of block 004 with people’s land). Observation on

boundary maintenance and interview with EHS and GIS officials related to claim on boundaries by the people

opening their field in the adjacent location.

Location 4 - Block A 26 (former area of land fire on March 2012). Observation on area condition and rehabilitation

efforts made by the company.

Location 5 - Block 078 sub Block B-34 (Rehabilitation of Riparian) – Observation on the conservation for the

maintenance of river quality.

Location 6 - Ubar River (Location of water sampling). Observation on outlet water condition (turbidity level and

debit).

Location 7 - HCV 1, 3, 4 (Specific ecosystem and rehabilitation). Observation on the management and

rehabilitation of the area according to the HCV type and efforts to prevent illegal activities.

Location 8 - Block W35 STP3 (HCV 3). Observation on conservation of rare habitats and protection of orangutan

(Pongo pygmaeus). Monitoring on the presence of orangutan will be done by transect system.

Location 9 - Hazardous Warehouse of STP 3. Hazardous warehouse is located at Sarana Titian Permata

Complex with limited access. STP has placed hazardous symbols around the area. Material Safety Data Sheet

(MSDS) is available for chemicals stored in the warehouse. Result of interview with officials mixing the pesticide

shows that no first aid emergency procedures are established in case of chemicals toxicity.

Location 10 - Hazardous Waste Warehouse STP 3. Access to hazardous warehouse is limited. STP has placed

hazardous symbols around the area. The collected hazardous waste among others are, used lubricants, used cloth

and filters. There are hazardous wastes which were stored beyond the retaining period specified by the regulations.

Location 11 - Water treatment STP 3. The Company has a program of safe water and portable water for employee

consumption. Drinking water quality is maintained and monitored so that it will be in accordance with the

requirements of the regional health agency. Drinking water is provided from water treatment. The results of

interviews with the warehouse workers show that employees are rarely affected skin rash diseases.

Location 12 - Clinics. Interview with company’s doctors related to the treatment mechanism of spraying workers

which being pregnant / breastfeeding and periodical medical checkup.

Location 13 - Block 047 STP3. Observation and interview with supervisor and spraying workers related to the

techniques of spraying, the types and dose of pesticides being used, implementation of environmental policy related

to the application of Agrochemical, the use of APD, implementation of acknowledgement of reproduction right,

periodical examination.

Location 14 – Block N37 and N38 STP3. Observation and interview with harvesters concerning the technical

aspects of harvesting, use of PPE, First Aid in Emergency, remuneration and welfare of the workers.

Location 15 – Employee Housing of STP 3 Block O28. Observation and interview with workers concerning the

adequacy of the facilities and infrastructures provided by the company which includes fresh water, housing,

electricity and household facilities.

Location 16 – Block M45 STP 3. Observation and interview on the management of peat land which include the

management of the level of peat water, monitoring on the declination of the peat land level and water management.

Location 17 – Base camp STP 2. Observation and interview on used fertilizer sacks and treatment of waste from

the washing.

Location 18 – Clinic of STP 2. Observation and interview concerning health care and dominant types of illness.

Location 19 – Tanjung Rengas Village. Observation and interview concerning CD program implementation,

Observation on activities of the people, discussion with the people concerning the impact arising from the operation

of STP.

ST2 Location visited is set based on the consideration on formula 0.8 √ y, where y is the number of estates (3 estates),

and visited in STP 1 and STP 2. Important issues that arise during public consultation and review of documents were

verified during the visit. The complete lists of the location being visited are

Location 1 Block I.33. Waste ponds 13, 14 and 15. On December 2012, the POM Waste Pond was overflowed


ASSESSMENT REPORT


and indicated polluted the surrounding environment. At that time heavy rainfall caused the waste ponds capacity to

be exceeded. Now POM has constructed new waste ponds (ponds 14 and 15) to prevent liquid waste from

overflowing during heavy rainfall. STP on a regular basis improves the waste ponds to ensure its maximum

capacity. Auditors deemed the improvement efforts can prevent similar things.

Location 2 Block H30. Land Application. STP is not disposing of POM liquid waste to the river, instead is applied

to land regarding to national law (Kepmen LH 28 of 2003) as organic fertilizer. STP keep the area of 10 meters

(buffer) from the edge of the block by avoiding making a flatbed

Location 3 Block D 16/17. Observation and interview with fertilizing workers and foremen work procedures, use of

PPE, First Aid in Accidents, occupational risk, periodical checks, the implementation of appreciation of the right of

reproduction (pregnancy leave, menstruation leave and other special treatment), remuneration, housing facilities

provided

Location 4 Block E 4/5. Observation and interviews with sprayer and foremen on work procedures, use of PPE,

First Aid in Accidents, occupational risk, periodical checks, the implementation of appreciation of the right of

reproduction (pregnancy leave, menstruation leave and other special treatment), prohibition from spraying for

pregnant and lactating women, remuneration, housing facilities provided, workers from the local peoples, grievance

mechanisms on gender issues

Location 5 Block C 10/11. Observation and interviews with foremen and harvesters concerning work procedures,

PPE using, First Aid in Accidents, occupational risks, remuneration, and housing facilities provided, the school bus

facility, grievance mechanisms.

Location 6 Block O90/80. Observation and interview regarding lowland area are not yet planted by the company.

However the area has been managed by the construction of drainages.

Location 7 Block A37/38. Observation and interview on the realization of Turnera subulata planting.

Location 8 Block I 19/18. Observation and interview on the realization and implementation of the planting of

Cassia cobanensis.

Location 9 Block B 33. Observation of fire tower III.

Location 10 Block C67, C68, D67. Observation of boundary pole of HGU No. 110, 109, 108.

Location 11 Block A50/51, A52/53. Management of HCV 1, 3 and 4.

Location 12 Block A50. Observation on orangutan monitoring route and HCV area rehabilitation.

Location 13 Block 076. Observation on orangutan monitoring route.

Location 14 Block I13. Nursery of natural vegetation used in the rehabilitation of HCV area

Location 15 Block D39/E39. Management of riparian area.

Location 16 Block 0 76 STP III. Management of HCV 3 Area (Heath ecosystem).

Location 17 Block Q57. Observation on Boundary Pole of HGU No. STP 079, STP 080 and HCV 4 Area

Management.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

ST1 Stage-1 audit not through the public consultation

Public consultation conducted by two ways, as follows: 1. Public Announcement in RSPO website.

2. Public consultation with stakeholders was conducted on May 08, 2012. Consultation with government and

local NGOs, local communities, head of sub district, head of villages and other relevant stakeholders. The information obtained would be verified by the company.

Please see 3.6 Summary of arising issues from public, Management and auditor response.

2.4.2 List of stakeholders contacted

ST1 Stage-1 audit not through the public consultation


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ST2 Please see Appendix 3. List of Stakeholders Contacted in the RSPO Certification Process

2.5 Determining Next Visit

The next visit (Surveillance 1) will be determined later, before passing one year RSPO certified.


ASSESSMENT REPORT


3.0. ASSESSMENT RESULT

3.1. Summary of Assessment Findings for RSPO Certification

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

STP (Sarana Titian Permata) has a system (SOP 47/PR/ (0)/0709) which was passed in July 2009 and is undergoing second

revision on March 15, 2012; SOP NO. 47/PR/ (2)/0212) SOP of Provision of Information to Third Parties (Transparency). At this

SOP the followings have been:decided

1. Documents accessible to the public, for example; Environmental impact assessment Document, the Company's Annual

Report, Corporate Policy, Permit HGU and other related Permits, Monthly Report of estate and Mill Production, estate and

Mill Operational Area Size, along with The map including the soil map, Natural Drainage and Village Boundary, and the

Estate Land use Map, Map of rivers in the area of work, procedures/operational procedures of estates and mill, the

company's organizational structure, HCV report and management plan, Social Impact Assessment Report,

Implementation of the CDP and CSR, Report of Activities of estates etc.

2. Documents which may be accessed with the approval of General Manager, for example; Deed of Establishment and its

amendment, the balance sheet of the company, staff/ employees payroll, list of assets, payment of land acquisition data,

complaints and grievances, map of the distribution of rare animals in the area of conservation, data of the use the plasma

fund.

Response on information request is set to be not later than 14 calendar days upon the receipt of the request.

For publicly accessible documents, the company also provides documentation room at Regional Office at KM 62 Jalan Sampit –

Pangkalan Bun.

STP has documents of requests in the Records of Incoming Letter of STP that contains the letter of request and responses to

information requests, for example; Letter No. 451.1/03/PAN-MTQ-SHR/II/2011 MTQ sent by the community in February 18 2011

Seruyan Hilir on demand of funds for MTQ, which was responded by STP on February 18, 2011 through Inter Office Memorandum

No. 011/BM.PR/II/2011 and realized on March 28, 2011 (Proof of funds disbursement/ receipt).

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.

The type of documents provided by the company among others are;

a. Legal Documents, which consists of;

1. Location Permit No. 55 of 2004 concerning the Granting of Location Permit for the Oil Palm Plantation in the

name of PT Sarana Titian Permata in Seruyan Hilir Sub-District, Seruyan District. Size of Location is 19,202 Ha

and issued by Head of Seruyan on April 10, 2004.

2. Additional Location Permit No 285 of 2007 concerning Amendment to Decree of Head of Seruyan No. 268 of

2006 dated November 6, 2006 on Location Permit for oil palm plantation in the name of PT Sarana Titian

Permata on an area with the initial size of 709 Ha to 790 Ha in Pematang Limau Village, Seruyan Hilir Sub

District, Seruyan District, issued by Head of Seruyan on September 17, 2007.

3. Plantation Business Permit No. 525/109/EK/2007 concerning Plantation Business Permit issued by Head of

Seruyan on March 13, 2007, for an area with the size of 19,911 Ha.

4. Building Construction Permit (IMB);


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- IMB PKS, No. 640/131/IMB/CK.PU/2009 dated December 13, 2009 issued by Head of Seruyan.

- Employees Housings, No. 640/79/IMB/CKPU/2008 dated December 13, 2008 issued by Head of

Seruyan.

- Employee Housings, No. 640/80/IMB/CKPU/2008 dated December 13, 2008 issued by Head of Seruyan

5. Transportation Permit, for example; Permit No 566/931.2/NAKTRAN/VI/2011 dated June 22, 2011 issued by

Head of Labor Agency of Seruyan District for Tractor.

6. Crane Operator Licenses, for example SIO No. 10.3477/OPF/KK/V/2010 for Nahli Na’am (STP II Operator) dated

July 12, 2010 and valid until July 12, 2015.

b. Environment Documents, which consists of;

1. Environmental Impact Assessment Documents, as authorized by Governor of Kalimantan Tengah by Decree No.

188.44/363/2007 dated August 31, 2007 concerning Environmental Feasibility of the Palm Oil Plantation and Mill

Activities of PT Sarana Titian Permata, Seruyan District. Study Area Size of 19,202 Ha with POM Capacity of 120

tonnes FFB/Hour.

2. Environmental Management and Monitoring Plan; as authorized by Governor of Kalimantan Tengah by Decree

No. 188.44/363/2007 dated August 31, 2007 concerning Environmental Feasibility of the Oil Palm Plantation and

Mill Activities of PT Sarana Titian Permata, Seruyan District.

3. Environmental Management/Monitoring Plan Implementation Report which is submitted every 6 months to the

Environmental Agency of Seruyan District, for example Semester II Report of 2011 is reported on May 4, 2012 via

letter No. 127/STP/ADM/BM/V/2012 concerning Revision of Environmental Management/Monitoring Plan

Implementation Report for semester II (July – December 2011 period).

4. Documents of Identification of HCV which is prepared by Malaysian Environmental Consultants Sdn Bhd on

February 2009 in which there is no adequate evidence of Peer Review on the said documents.

5. HCV Management and Monitoring Plan.

6. Monthly Report of HCV Monitoring which was followed by Management Plan Realization Program of HCV on

annual basis.

7. HCV 1.2 management implementation report in this case for the Orang Utan (Pongo pygmaeus wurmbii) per

semester.

c. Social Documents, which consists of:

Social Impact Assessment (SIA) Documents which is prepared by The Indonesian Resource Institute (Indri) in August,

2010.

d. P2K3 Documents, for example;

P2K3 report for Quarter III of 2011 which is reported to Labor and Transmigration Agency of Seruyan District through

Letter No. 039/CKP-EHS/X/2011 which was received on November 9, 2011 concerning Quarter IIII for STP P2K3 report

period of July – September 2011.

The Company has prepared register of regulations and statutes which consists of;

1. Law Register related to the Company’s plantation which consists of 13 STATUTE, 5 PP, 1 Presidential Regulation, 4

Minister regulations, 2 Decree of Ministers, 2 Regional Regulation/Regional Regulation of Central Kalimantan, 1 Governor

Regulation/Central Kalimantan Governor Regulation.

2. Law Register related to Manpower, which consists of; 15 STATUTE, 3 PP, 1 Presidential Decrees, 12 Minister Regulations,

7 Ministerial Decrees.

3. Law Register related to Occupational Safety and Health, which consists of; 5 statutes, 1 PP, 1 Presidential Decrees, 21

Minister Regulations, 6 Minister Decrees, 1 Decree of Directorate General.

4. Law Register related to Environment which consists of; 9 statutes, 15 PP, 14 Presidential Regulations, 12 Minister

Decrees, 4 Decrees of Bapedal (environmental impact management agency), 4 Regional Regulations of Kalimantan

Tengah.



ASSESSMENT REPORT


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

The Company has shown evidence on compliance to the laws;

1. STP has obtained Plantation Business Permits such as;

a. Location Permit No. 55 of 2004 concerning Granting of Location Permit for the Palm Oil Plantation in the Name of

PT Sarana Titian Permata in Seruyan Hilir Sub-District, Seruyan District. With the size of area subject to the

permit is 19,202 Ha issued by Head of Seruyan on April 10, 2004.

b. Additional Location Permit No 285 of 2007 concerning Amendment to Decree of Head of Seruyan No. 268 of

2006 dated November 6, 2006 concerning Location for Palm Oil Plantation purpose on behalf of PT Sarana Titian

Permata with the size of 709 Ha to 790 Ha in Pematang Limau Village, Seruyan Hilir Sub-District, Seruyan

District as issued by Head of Seruyan on September 17, 2007.

c. Plantation Business Permit No. 525/109/EK/2007 concerning Plantation Business Permit issued by Head of

Seruyan, on March 13, 2007, with the size of 19,911 Ha.

2. STP has obtained Building Construction Permit (IMB), for example;

- IMB PKS, No. 640/131/IMB/CK.PU/2009 dated December 13, 2009 issued by Head of Seruyan.

- Employees Housing, No. 640/79/IMB/CKPU/2008 dated December 13, 2008 issued by Head of Seruyan.

- Employees Housing, No. 640/80/IMB/CKPU/2008 dated December 13, 2008 issued by Head of Seruyan.

3. The Company has prepared Documents of Environmental impact assessment and RKL/RPL Implementation Report,

which includes;

- Environmental Impact Assessment Documents, approved by the Governor of Central Kalimantan Decision by

mail. 188.44/363/2007 dated August 31, 2007 on the Feasibility and Environmental Activities Estates and Palm

Oil Mill Processing at PT Sarana Titian Permata, Seruyan District. Extensive study the 19,202 Ha and capacity of

mill was 120 tonnes FFB / Hr.

- Environmental Management and Monitoring Plan; approved by the Governor of Central Kalimantan Decision by

mail. 188.44/363/2007 dated August 31, 2007 on the Feasibility and Environmental Activities Estates Palm Oil

Mill Processing at PT Sarana Titian Permata, Seruyan District, and Central Kalimantan Province.

- Report of Implementation of RKL / RPL which is reported periodically every six months to the Environment

Agency of Seruyan District, for example, Report of the second half of 2011 reported on May 4, 2012 by letter No.

127/STP/ADM/BM/V/2012 on Revised RKL and RPL implementation report of the second semester (Period of

July-December 2011).

4. The Company has obtained OHS Licenses for Operator of Crane, for example OHS License for Agus (License No:

10.3951/OPF/KK/VII/2010); Rusdi (License No: 10.3952/OPF/ KK/VII/2010 and Nahli Na’am (Operator of STP II) dated

July 12, 2010 which is valid until July 12, 2015 appropriate to regulation of Labor Ministry No 9 of 2010 concerning

Operator of crane

5. The Company has completed Permit for the Use of Crane Equipments for example; Permit No

566/931.2/NAKTRAN/VI/2011 dated June 22, 2011 which was issued by head of Labor Agency of Seruyan District for

Tractor.

6. Internal Memorandum of Head of HRD NO. 038/WIP-HRD/Int-XII/2011 dated December 27 2011 – adjustment of minimum

regional wage for Seruyan District – appropriate to Decree of Governor of Central Kalimantan No 38 of 2011 dated

November 25, 2011 – Daily Minimum Wage– IDR 1, 464, 000,-/month.

7. The Company has appointed OHS experts as P2K3 secretary according to Regulation of Labor Ministry No. 4 of 1987

concerning P2K3.

8. The Company has provided PPE for the employees according to the Regulation of Labor Ministry No. 8 of 2010

concerning Personal Protective Equipment.


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9. The Company has performed zero burning land clearing according to Statute No. 18 of 2004 on Plantation

10. The Company has measure peat land subsidence in order to control land deterioration according to Government

Regulation No.150 of 2000.

11. The Company has prepared Road Map for the development of Plasma plantation on May 1, 2012 and it has been known

to Head of Pematang Limau and Tanjung Rengas Villages (Adriani and Rudiansyah). The Company has also begun the

socialization of development of plasma plantation to the people, for example on May 3, 2012 in Pematang Limau and

Tanjung Rengas village.

There are several relevant regulations which has yet to be meet by the company, among others are:

a. The Company has not been able to show evidence that it has already obtained the basic permit (Land Clearing) in the

construction of palm oil plantation of STP.

b. There was found diesel fuel spillage contaminated to soil directly at POM diesel fuel tanks in-accordance with Government Regulation (PP) No. 18 of 1999 in conjunction with Government Regulation (PP) No.85 of 1999.

Verification:

a. 11 May 2012. Basic of land clearing (LC) can be showed from IUP (Izin Usaha Perkebunan or Plantation Business Permit)

No. 525/109/EK/2007 the first Point issued by Head of Seruyan on March 13 2007 is stated PT Sarana Titian Permata to be

permitted to establish (construction) the oil palm Plantations.

b. May 19, 2012. The Company has installed nozzle stopper and made a concrete floor on secondary containment to avoid

direct soil contamination.


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

Principle permit;

1. Head of Seruyan No. 500/136.Ek/2004 dated – 10/4/2004 – size 19,202 ha – valid until 10/4/2005.

2. Head of Seruyan No. 500/421/EK/XI/2006 dated 01/11/2009 – size 709 ha.

Location Permit:

1. Head of Seruyan No. 55 of 2004 – dated 10/4/2004 – size: 19,202 ha. – Fourth dictum: shall submit application for the

release of forest area to Minister of Forestry in Jakarta.

2. Head of Seruyan No. 268 of 2006 – dated 06/11/2006 – size: 709 ha (amendment to Decree of Head of Seruyan No. 255

of 2007 dated 17/9/2007 – size 790 ha).

Recomendation of governor of kalimantan tengah no 525/945/Ek dated 18/8/2010 – with size of 19,911 ha

production forest 3, 082 ha.

limited production 226 ha.

production development area 16, 603 ha.

Application for the forest release No. 39/STP/Adm/BM/VIII/2010 dated 31/8/2010 – submitted on 15/9/2010.

Proceedings of the Examination Committee of the Land "B" No. 92/PPTB/IX/2006 dated 09.12.2006 (Office of the National Land

Agency, Head of Seruyan, Forestry and Plantation Agency, etc.) – based on Local Regulations No. 8 of 2003 on RTRWP which

stated that the land of 19,266 ha is within an area of Production Development (KPP).

There is an introductory list Number 1675.540.42.2006 from Head of Regional Office of the National Land Agency of Kalimantan

Tengah Province dated September 26, 2006 which was addressed to the head of National Land Agency in Jakarta, the substance

was the application for leasehold on behalf of PT Sarana Titian Permata which has been considered for approval on an area of

19,226 ha with a term of 35 years because the business has met the juridical and physical requirements.

There is a map of the cadastral survey results (land case maps):

1. Number 22-15.11-2007 map dated December 14, 2007 - 776.63 ha area.

2. Number 001-15.08-2005 map dated February 23, 2005 – 19,266 ha area.

The Company has conducted monitoring and installation of boundary poles in the month of June to October 2011

(020/GIS/Survey/CKP/2011).


ASSESSMENT REPORT


Demarcation as shown in the form of poles – the visited examples is pole nos. STP 110 (STP I, Block C67), STP 109 (STP I, Block

C67) and STP 108 (STP I, Block D 67) which is bordering area of the village of Tanjung Rengas were found in good

condition and the HGU poles nos. 079 (STP III, Block Q 57) and Pole No HGU. 080 (STP III, Block Q 57) which is in the

outer limit of the HCV area 4 (area 790) is found in a preserved condition.

The company showed land compensation document which is stated the name, address, work , Case No., Block, Size, amount of

money, date of payment, period and estate. The documents describe 664 cases with the size of 4,301.31 ha in Pematang Limau

and 723 cases in Tanjung Rangas Village with the size of 3,209.10 ha. This makes up to the Total of 1,387 cases with area size of

7,610.41 ha.

Land acquisition is done by virtue of decree of Head of kotawaringin timur No. 316 of 2007 concerning Basic Price of Land and

Crops in Kotawaringin Timur District.

There is a list of social conflict of social of PT Sarana Titian Permata (No. File 002/BM.PR/SC/2012) which include 7 cases with

pending settlement.

STP shows evidence of resolution process of land dispute which involves regional government by referring to SOP No.

30/BM/0/0409 concerning Dispute resolution of occupation in boundary of STP3. The meetings were conducted on (1) November

23, 2011 (attended by the representative of the company, National Land Agency, Head of Seruyan Hilir District, and the people); (2)

on November 14, 2011 which was attended by Regional Office, National Land Agency, Head of Pemantang Limau Village and the

community); (3) dated October 27, 2011 in the presence of General Estate Manager, Estate Manager STP3, GIS, HCV, PR, CD,

Security, Land owner and the related people.

The Company had several documents which have been submitted to the parties on June 20 – July 07, 2011, among others:

1. Documents of technical guidance for land acquisition/purchase for oil palm plantation.

2. SOP-LAND PERMIT & OPS-006/ (1)-1008, dated October 15, 2008 concerning Land Acquisition.

3. SOP 29/BM/ (0)/0409 concerning technical guidance for land acquisition.

4. SOP 30/BM/ (0)/0409 concerning land dispute settlement.

5. Memorandum of Understanding on traditional right.

6. SOP 46/PR/ (0)-0709 concerning disclosure of information to any third party.

7. SOP 43/PR/ (2)-0510 concerning acknowledgement and commitment of the Company to indigenous rights of the people.


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.

The Company has a memorandum of understanding with the community with regard to management of the land in STP plantation

on January 20, 2012. Both sides agreed to implement the 9-point agreements which include:

1. The Company and the community together to maintain and preserve the area that can be used to locate food sources by

the community, such as rivers for fishing, springs, where suitable land and others.

2. The Company allows for the community to hunt on surrounding of the Company unless if the animals are legally protected.

Map of the traditional right area is contained in the documents of Traditional Rights agreement.


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.

Documents of work plan of the company for a minimum period of three years are available, namely:


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Documents of 5 year forecast (2011-2016) explains about:

Immature (2011 - 4,473 ha and 2012 - 139 Ha), Mature Area (it is assumed that all plants are producing 2013 in an area

with the size of 16,745 ha),

FFB Production Annual (2011 – 5.8 tonnes/Ha), 2012 (8.1 tonnes/Ha), 2013 (11.2 tonnes/ha), 2014 (14.5 tonnes/Ha),

2015 (17.8 tonnes/ha), 2016 (21 tonnes/ha).

Milling: Installed Capacity (270,000 tones/year), Own FFB Processed (2011 was 70,000 mt), 2012 (135,000 mt), 2013

(188,100 mt), 2014 (242,100 mt), 2015 (298,200 mt), 2016 (351,200 mt); Mill utilizing 2011 38.6%, 2012 50.5%, 2013

75%, 2014 was 102.2%, 2015 110.4%, 2016 130.1%, according to Environmental Impact Assessment the planned

capacity of POM is 120 tones/hour and the installed capacity at present is 45 tones/Hour.

Total Capital & Revenue; Cash Flow; Profit and Loss (FFB price estimation, CPO, Kernel and Revenue from CPO, PK and

FFB, Mature Up Keep, manuring costs, Harvesting, FFB Dispatch, estate overheads, FFB purchase – out side, Variable

cost, Fixed Cost (there is an increase in the amount of profit based on the budget of 2012 – 2016).

Replanting program not identified because the oldest age of the plant is 6 years. In Agriculture replanting and SOP for oil palm

chapter 9, Wilmar 2011 stated that replanting criterion is 25 years or the highest plant more than 13 meters, and also production

less than 20 tones/year within 3 years..


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

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

There is Agriculture & Standards Manual for Oil Palm Operating Procedure which has been authorized by the Executive Director

(2007) which shall serve as Standard from Land Clearing up to harvest.

STP has standard operation procedures for mill operations. The following procedure has been implemented for sustainable palm oil

production:

a. SOP for the POM (Sorting, Loading ramp, Sterilizer, Thresher, Digester, Press, vibrating screen, sludge desender sludge

pump, rotary strainer, rotary strainers, sludge centrifuge, dryer vacuum, transfer pump, depericaper, Nut Silo, Ripple Mill ,

Clay bath, Kernel Silo, Boiler, Generator, Turbine, WTP.

b. There are also standard operation procedures and work instructions related to the environment, such as hazardous

waste management and land application. All the standard and related documents operational activities under the

supervision of the Document control department.

There is evidence that the Company has conducted the assessment with the availability of the report of Field Quality Audits

(Quantitative Agro-management system / QAMS) Fruit Losses, FFB Grading, manuring Census, Monitoring of Planted in Sandy

Areas, Land Application of Palm Oil Effluent, and Progress of the RSPO P & C System Implementation Plan by the ECO-CKP

Wilmar Management Unit. Yearly, monthly and weekly.

STP has developed internal guidance for audit of production processes, quality standards and adherence to POM safety and health

protection (Doc. Manual STP-001). Audits shall be conducted at least once a year. Internal audits are conducted on December 8,

2011 in order to monitor the activities of the production process and ensure the safety of employees. The Company has conducted

an evaluation of the internal audit activities previously completed.

STP POM will also be evaluated regularly by Wilmar Sustainable Company (WSC). The assessment was conducted on January 7,

2012.

There are records of results of operations in the estates Monthly Report documents package which is prepared by the Admin

Officer, Account Officer, reviewed by the estate manager, and reviewed by the Group, such as STP 2 STP Estate Report Package

for two months in February 2012.

There are records of results of operations of the mill, for example:


ASSESSMENT REPORT


a. Records of incoming FFB was sorted and later processed at the mill.

b. Sterilization station journal, the sterilizer performance monitoring and measurement of pressure, temperature/temperature

sterilizer, cooker 1 and cooker 2. Sterilizer temperature is maintained at a temperature of 90-120 ° C. some time the

temperature drop to ± 80 ° C, Sterilizer temperature drops while beginning the operation or maintenance.

c. Records of the use of water for the needs of the production process at the mill.

FFB Grading Monthly Report. STP will grading each incoming FFB at the mill, if the FFB against the standard it will be returned to

the management unit (estate) and within one day the estate is not take the FFB then it will be inserted into the loading ramp and

continue for processing.


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

Leaf analysis was conducted once a year. In 2011 it was performed between 7 to 16 April 2011 where a total sample of 242 were collected in STP 2. The field sample location, year of planting was recorded. Major elements (N, P, K MG and CA) and minor elements such as B, CU, Zn and Fe were analyzed. For example: Major element in Block 001: N = 2.57%, P = 0.14%, K = 0.93%, Mg = 0.39%, Ca = 0.66 % and B 19 ppm (furnished with a description of the resulting increase / decrease from previous year leaves of the test results. There are results of detailed analysis of STP soil (Soil of Sarana Titian Permata in May 2007 made by PARAM Agricultural Soil

Surveys (M) SDN. BHD. Soil analysis is carried out once every five years. The analysis includes several aspects, among others:

Soil of the study area

Soil Description: 18 soil mapping has been identified in the plantation.

Erosion

Nutrition status

Soil fertility evaluation

Soil Management Group

There are in the Agronomic Field Audit Quality, Leaf Nutrient, Palm Status, Corp. production, which inform about the

Recommendation of fertilization in Block 99 of STP 2, fertilizing by using fertilizer B-48: 100 g/ palm/Year; CuSO4: 100 g/palm/year;

RP: 0.75 kg/palm/Year, NPK (Ratio: 10:8:30) : 11 kg/palm/year (Feb 4 Kg, Jun 4Kg , Nov 3 Kg); Urea: 0.5 Kg/palm/Year or SOA:

1 kg/palm/year.

There is an annual fertilizer program recommended for the estate. There is also a monitoring program to check the fertilizer

application in the field against the recommendation. For example: STP 2 for the total number of 5086 palm for the application of B-

48 = 510 kg, Rock Phosphate = 3.81 tones, 2.54 tons of Urea, NPK = 55.946tones. There are also studies of soil fertility and

increasing production output and outcome based on soil analysis in the documents of Agronomic Field Annual Audit Quality (table

9.2: Individual Field Performance Yield (t/ha) STP). For example, in the Block G100 (37.40Ha) production in 2010: 8.0 t/ha to be

17.3 (t/ha) in 2011.

Land application over the 684 ha was available. For instance record for November 2011 shows the application rate of 1,000 m3/year/ha which is within the legal requirement.

Records of EFB application is available, for example, the applications of EFB in Block G40 (102) Division III STP 2 (19.67 Ha) which is identified as sandy soil was applied. EFB Volume 680 mt (34.570 tones/ha). There is Records of LCC (Legume Cover crop) planting, for example, in March 2009 in STP 1 block 125, a total of 258 cuttings of Mucuna was planted over 1.74 ha of immature area. Three cuttings of Mucuna were planted among 3 palms in accordance to the agronomic manual Chapter 4.


4.3 Practices minimize and control erosion and degradation of soils.


ASSESSMENT REPORT


There is Table of Soil Management Group survey of land and soil map detail of STP in May 2007 which was made available by

PARAM Agricultural Soil Surveys (M) SDN. BHD which shows group which is classified as marginal land Soil Management is group

C (Busro/Typic Haplohumod and Miri/Typic Haplohumod), group D (Serai/Albic Quartzipsamment), Group E (Gali/Typic

Haplohemist, Gondang/Typic Haplohemist, Salleh/Typic Haplofibrist, OCM/Organic Clay and Muck). With the map scale of 1:

20,000

There is plans and realization of road maintenance program in 2011 for estate 2, which describes the realization of plans and road

improvements in 2011, for example, Block 36 and 35 covering an area of 56.1 ha and 56.1 ha realized. There is evidence of

payment to PT Sabindo (contractor repair and hardening of road) No. payment on 14/10/2011; Driver named Beddu. Budget for

road maintenance 2011 included in Detailed expenditure for year 2011(Phase NP 2006 TM )

Water level management program is in accordance with SOP of peat 03/EMU SA/(3)/0811 which was approved by General

Manager and checked by the Senior Research Manager and which stated that:

1. Preparation of the main drain along main road.

2. Natural flow is maintained, for example, in Block 107 and STP 2 collection drain.

3. Number of palms were 148 palms/ha.

4. New development to areas peat depth> 3 meters does not more than 30% of the total area.

5. Monitoring of water level in the primary and secondary ditch, with water level 75 cm (in the dry season) and 50 cm (at the

time of normal weather conditions).

Monitoring of subsidence in peat land with a selected block of at least one block for every 500 ha if all area is peat. Monitoring record of peat land subsidence in STP 3 on Block N24, O41, and M55 (pole 1.2 and 3) observations for the first year is done every 6 months. Installation on 07/04/2011 is monitored on January 4, 2011 with the results of measurements (2 cm, 1 cm and 1 cm) was in accordance with Government Regulation No.150 of 2000. Strategy for the management of marginal soil :

1. Sandy soil management (Soil Group C and D) according to the recommendations and memo of General Manager No.

072/EMU/VII/2009.

2. Reducing clearing land in sandy area.

3. Mulching with EFB.

4. Planting of LCC.

5. Appropriate fertilizing.

Records of management of sandy area:

There are records of fertilization in sandy areas, such as applications EFB. There is cover crop with Mucuna bracteata.

There is record of result of monitoring of rain fall in the soil analysis result.

There is construction of water gate on one of the channel to slow down the flow of water on the surface to prevent severe

erosion.

Record of realization of peat land:

Management of peat land (Soil group E) according to the recommendation of result of detail soil survey and SOP of

management of peat land area SOP No. SA 03/EMU/(3)/0811:

Water management.

Appropriate Fertilizing (trace elements Cu, An, B)

Water management on STP2 Block 107, there is construction of dams, water level monitoring. Water monitoring data in

the peat land of STP for instance in Block 107 pole level 1 monitoring on March 21, 2012 show a water that leaves a free

board of 60 cm.


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


ASSESSMENT REPORT


Water for the production process is monitored and managed in order to keep the quality. Protection of water quality from reservoir

is done by water treatment plant. Water quality is maintained and enhanced so that it conforms to water quality of standard boiler.

Quality monitoring is done internally and externally every day of each month (Nalco Indonesia). Recordings available for water

analysis are available at the laboratories and Nalco Indonesia.

STP also tests the quality of drinking water and domestic housing and factories. Available results of measurements of drinking

water (STP 3, water treatment), water (STP 3, Block O28) and water (STP3, Block Q39) on 17 September 2011.drinking water for

employees is processed using the method of water treatment. Responding to the recommendation from the health department,

STP added 'alum' to purify water in the reservoir Q29 and Q40. Available alum stock in the hazardous store STP3. The minutes of

request by staff Martin (Supervisor in STP 3) with regard to alum are available.

BOD monitoring has been conducted by the environmental Laboratory. BOD levels for the implementation of utilization review must

comply with the regulations of Decree of Minister of Environment No. LH. 28 of 2003. The result of measurements in January 2012

on the last discharged ponds of BOD is 1,001 mg/l (the standard should not exceed 5,000) and COD 2,781 mg/liter. Phase I of

study of BOD data has been submitted to the Environment Agency.

STP also monitors the use of water for processing and consumption of employees. Monitoring is reported each month in the

monthly production reports. The use of water for production processes is affected by the number of FFB. The latest data of water

consumption in January 2012 was 2.09 m3/tonnes FFB and February was 1.84 m3/tonnes FFB.


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

The company has procedure in the management of leaf eating caterpillars:

1. Economic Threshold Level every frond

Nettle Caterpillars: Setora nitens 5 larva; Sethosea asigna 5; Darma Trima 10 larva, Bagworms: Mahasena corbetti: 5

larva, Pteroma pendula 10 larva; Metisa Plana 10 larva.

2. Biological control by using Granulosis Virus, Occluded RNA Virus, Cordyceps militaris.

3. Physical control by hand picking or trapping of individual pest (pupae picking and Light trap).

4. Control cultivation with conservation of Natural occurring Beneficial Plants (Nephrolepis, Ageratum conzoides, Cetrosema

pubescens and Euphorbia heterophylla); augmentation of Beneficial Plants. Cassia cobanensis (every 38 rows of plants),

Antigonon (every 35 rows of palms), Turnera subulata (every 11 rows of palms) and Euphorbia heterophylla (every 35

rows of palms).

Control of rat in accordance to agriculture manual and SOP No. SA 02/EMU/(01)/0710: 1. The threshold is 5 % for rat attack in palm and 20% in the FFB collection point area.

2. Rotation of baiting is 8-10 days.

3. The bait placed randomly in block.

4. The use of bait should be considered if the attack exceeds the threshold.

Repair of estates sanitation is the priority

Procedure of control of Rhinoceros beetle:

1. Cultural control (by applying EFB in a single layer).

2. Biological control by Metharizium anisopliae

3. Physical control by Hand Picking larvae, manual picking of beetles.

4. Chemical control by applying carbofuran

5. Pheromone trapping

Control of the Ganoderma by cultivation techniques.


ASSESSMENT REPORT


IPM programs are available which include:

1. Program to use the owl as the biological controller of pest. The program was started in February 2011; the development of

owl to date is still in the process of being studied by departments of R & D with respect to the feasibility of operating the

STP as owl habitat. The targets of the programs to use of trial Owls in 2011-2012 has yet to carried out in 2011-2012 due

to a breeding program (Owls being introduced from Java (3) and 2 from the PT CTF (Seruyan area) but cannot be breed

yet. However, chemical pest control of rats can still be minimized.

2. The beneficial planting program plan of 2012 (Progress of Beneficial planting) for example in Block 058 which covers an

area of 27.25 ha has been realized for as many 154 plants of Turnera in 15.24 ha area

3. Monitoring of pests and plant diseases is done every month. records of pests and diseases attaking (STP February 1,

2012) includes monitoring of Senthosea (number/midrib), Nettle caterpillars (number/stem), , flame moth/bags, a new rat

attack (%), number of termite soil per ha, Ganoderma, Rhinoceros attack (%), other pest attacks. Based on the results of

the evaluation it is showed that there was no attack which exceeds the threshold.

4. Minutes of Best Practices of IPM training events is available in the 2012 training program.

There are records of analysis of usage of active ingredient per year, the active ingredient analysis of STP 3 informed about

pesticide name, active ingredient, the active ingredient content, use in hectare, use of materials and calculation Active

ingredient/ha. Based on Active Ingredients Usage Analysis documents in 2011 in STP 3:

1. Trap 20 WP, Methyl Metsulfuron as active ingredient, 20% of the active ingredient content, area: 14,485.19 ha; usage:

274,371.10 grams, active ingredient is 54 874 g; active ingredient per ha = 3.788 g/ha.

2. Inteam 150 SL, glufosinate ammonium as active ingredient, the active ingredient is 150g/Liter, The area of usage:

2,321.22 ha; 2,225.78 liters of consumption, active ingredient is 333, 861 g; active ingredient per hectare = 143.83 g/ha.

3. Glisat, Isopropilamina Glyphosate as the active ingredient, the active ingredient content is 480 g/l, The area of usage:

18,671.52 ha, 14,957.30 liters of usage, active ingredient is 7,179 Kg; active ingredient per hectare = 384.52 g/ha.


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

There is a list of documents that listed the registration of pesticide in 2011, for example:

1. Ally 20 WDG the active ingredient is methyl metsulfuron 20%, the target broadleaf weeds, Registration No. Ri.837/4-

2009/T.

2. Basta 150 WSC, the active ingredient Ammonium Glufosinate 150 g/l, the target weed leaf width and narrow-leaved

weeds, no. Reg. RI. 1113/12-2008/T,

3. Benlox 50 WP, Benomil 5% as the active ingredient to control fungus, RI 2237/1-2010/T.

4. Matador 25 EC, active ingredient is Lambda cyhalotrin 25 g/l, for leaf-eating caterpillars and trips, RI 7.1.6/4-2009/T.

Available records of pesticide usage that informs the total of pesticide used, for example in STP 1 in 2012 for 609 liter Basta.

There are Plan and Realization of Work of each Division, for example, division 2 in 2011 was scheduled praying circle program

every four months, for example, in Block 5 is scheduled in January, April, July and October and realized in March and August.

Material Safety Data Sheet is available which among others inform about first aid, hazard identification, toxicology, handling and

storage for example, MSDS for Sanvit 120 SL and MSDS for NPK fertilizer Mahkota.

To ensure the availability of trained application personnel, the Company provides training of First Aid in Emergency which was

given by doctors and EHS staff. For example first aid training on March 24, 2011 in the meeting room of STP 1 should be attended


ASSESSMENT REPORT


by 54 participants (Foreman) and OHS training on 30 November 2011 (training on Safety Standards Procedures, procedure of

emergency response, procedures of OHS in agronomy). Each foreman is also equipped with an OHS manual for each type of

hazardous material which is the summary of the MSDS which should always be carried by the foreman at the time of activity.

SOP 22/EHS/ (2)/0711 on hazardous management and hazardous waste management procedure – figure 6.2.2 reused (e.g. as

fertilizer containers, bins and other after washed according to the caption label and figure 6.2.3 the management by others (sold).

Prior to being sold, hazardous waste is stored in a recommended temporary storage warehouse by referring to the Decree of the

Head of Seruyan. No.395 of 2011 dated December 9, 2011 – the permit valid for 5 years. Generated waste is monitored each

month and posted to the Data of Incoming and Outgoing hazardous waste which details the type, size, hazardous waste collected,

utilization, and balance.

Example: In January 2012 - Former herbicide packaging - 0.25 kg Trap- Stocks of this month (january) are 1468 pcs.

Under the SOP for Integrated pest management, Paraquat is no longer use. The use of paraquat was replaced Glufosinat (Basta).

Efforts to reduce pesticide use - Brodifacum:

1. According to SOP. 02/EMU SA/ (01)/0710 In July 2010, the SOP 02/EMU/SA/(01)/)710 on rat baiting was Revised from preventive and control to use bait for control only

2. Based on the data and diagrams of Petrocum (active ingredient Brodifacum) in 2010 and 2011 STP 1 shows the date of reduction in the use of pesticide. In 2010 the use of is as many as 1374 kg in 2011 to 210 kg).

3. The Company considers the use of barn owls to prevent and control rats. 4. IPM Training on March 14, 2011 was attended by 20 participants.

There are documents of periodic inspection of application on spraying division, Minutes of sampling and testing of Cholinesterase

(CHE)

the results of inspection being 75-100% is included in the normal category,

If there are four samples showed 50-74 CHE that include categories mild poison ing so need recommendations given,

Based on the analysis result, CHE of the workers is shown as normal). Test results of sprayer Titin Lasmini are available on

October 11, 2011 which shows 87.5 CHE (Cholinstrase) which is otherwise normal. Inspection is done 2x a year. The Company

plans periodic medical examinations for operators for the period 1st Semester 2012 on 14 - May 17, 2012 by filing documents

Periodic Inspection (FRM 03/SOP 07/ESH/(0)/0409 Period May 2012) prepared by the administration, known to the Manager and

Medical Representative (The Doctors).

There are available records of medical checkup. ( records of pregnant workers being transferred to other less hazardous work) (Certificate of Employment Because of Pregnancy mutations) show the state of pregnant workers and recommendations for resigned work to another part with lighter work for 6 months. For example, a sprayer Nurjanah was examined and confirmed to be pregnant on 10/9/2011. The following day, the record shows that she was reassigned to look after Beneficial plant establishment which is a less hazardous work.


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

STP has a documented OHS policy. STP has set the following policy:

1. Applying the principle of safety, among other things: to repair hazardous conditions or actions to prevent accidents and

occupational hazard.

2. Applying the concept of healthy and conducive working environment

3. Applying safe workplace management

4. Proper compliance in terms of prevention of environmental pollution.

5. Create a culture LK3 (safety behavior) in the work environment The Company.


ASSESSMENT REPORT


Organization responsible for occupational safety and health program of STP POM is P2K3. P2K3 (Committee for the development of Safety and Health) of STP POM has received approval from the Labor and Transmigration and Tourism Agency of Seruyan. The staff responsible for the OHS program is Alfi Syahri (mill manager), as the chairman and A. Fathoni (mill staff) as the secretary.

Regular monthly meetings are conducted to discuss the health, safety and environmental well-being of workers. Minutes of the

meeting are available. STP has reported the P2K3L activities to the relevant agencies. The minutes of meeting submission to the

Labor and transmigration Agency of Seruyan District is available. For example, evidence of submission of activity reporting to the

Labor Agency has not been consistently carried out, reporting that has been conducted on July 18, 2011 (Report P2K3 months from

April to June) 9 November 2011 (P2K3-month report July to September) and the reporting of evidence P2K3 October-December

period was conducted on March 29, 2012.

STP used Workmen Compensation Insurance as its insurance which covers the Social Security work accident insurance, old age

and death. Meanwhile, health insurance is paid by the Company in which the number of claims is allowed base on to the class of

employees. Employees can claim directly to the Company. Records of claims payment to employees are available and

reimbursement from the Company for the cost of the claim. The health facility given by the Company covers the cost of inpatient

care, outpatient care, delivery, purchase of glasses, artificial eye and prosthetic limbs. There is evidence of payment of Social

Security Contributions April 2012 STP showing Social Security payment of labor dues for 3765 workers in March.

Inspection of employees working in high-risk stations is done periodically every 6 months. The examination in 2011 was held in July

2011 and January 2012. Examinations for employees exposed to noise at the POM are conducted by physicians of The Company

by using audiometric test. Hearing examinations for workers exposed to noise at a particular station is also carried out in February

2012. Investigation report is available. Doctors recommended that surveillance of PPE needs to be improved. The Company plans

periodic medical examinations for operators in the Garden for the first half of 2012 on 14 - May 17, 2012 by filing documents of

Periodical Inspection (FRM 03/SOP 07/ESH /(0)/0409 period May 2012a) prepared by the administration, and acknowledged

known to the Manager and Medical Representative (The Doctors Company). OFI # 2012-04

During the audit in STP 1 clinic, it was noted that the medical staff has implemented the monthly medical checkup program.

For mill employes the routine medical check-up is done every 6 months. For example for Rejo, Syafrianto and Wiwid Setyono.

Doctors recommend that employees can work with attention the nutrition intake and PPE Using

STP POM has conducted a risk assessment on the occupational health and safety program and it was well documented. STP can

show documents of identification of impact and Environment rehabilitation program, Occupational Health and Safety in 2011.

The outcome of the risk assessment has resulted in continuous improvement in safety and health practices. STP has revised

documents identifying and analyzing risks of mill EHS in 2011. Risk Assessment Documents No.FRM 01/SOP 11/ESH (1)/0909 for

all activities in the plantation (work activities, hazards, risks and impacts, risk analysis (exposure, severity, risk, control risk), Control

Risks (Recommendations and PIC)) are available.

Risk analysis is based on activity at the station, danger, hazard, impacts and risks that may arise and the controls which

may be exercised. STP POM has a training program for employees in 2011 which consisted of 18 trainings. Some of the

training that has been implemented include: Fire safety management in November 2011 involving employees in the mill

employee housing.

Training of POM layout and evacuation routes in case of an emergency in December 2011.

Training of forklift certification OHS steam (boiler and sterilizer) involving OHS experts District Labor Agency. Kotawaringin

Timur in November 2012. Participants who participated are Wiwit Setiyono, Yulianto, Lucky muryanto, Ari susanto.

Training first aid held on july 8, 2011

STP also has developed a training program for employee like first aid training, Integrated Pest Management by 2012.


ASSESSMENT REPORT


STP has emergency response procedures - emergency response team PROS / STP POM - EHS - 016. STP forms an emergency

response team which is responsible for the coordination of emergency situation. Team is chaired by Alfi Syahri (mill manager) and

with Ahmad Fathoni (mill staff) as the secretary. The Company should evaluate readiness for preparedness and response

procedures related to the provision of emergency evacuation routes (OFI # 2012.06).

OHS Equipment placed on the Location, shall be easily accessible by employees in the event of an emergency. There are 9 first aid

kits in mil l. First aid kit consist of that contains revanol, betadine, cotton, gauze and other first aid kit purposes.

STP has trained and socialized first aid to employees in the processing station (boiler operator, security, maintenance, mechanics

and clarification). Receipts are available for PPE of employees and minutes of handover of the Boots for as many as 10 harvesters

18/04/2012 is also available. Data monitoring of content of First Aid Kit box, for example for the Tohirin at Housing Division G05, the

refilling is done in October and November 2011. The minutes of First Aid on Emergency at the plantation are available which

include all supervisors involved in the operation, for example, Minutes of the training of First Aid Kit by the physician of the

Company. For example, First Aid on Emergency training on March 24, 2011 in meeting room 1 at STP was followed by 54 foremen.

STP should review the post-training evaluation system of first aid to ensure that all participants can demonstrate an understanding

of materials related to his work. Interview with Supri (staff of chemicals mixing in the warehouse SPT3) shows that he was not

aware of what to do when there is direct contact of chemicals in the body or poisoning as he claims (OFI # 2012.05)

STP POM is monitoring the number of occupational accidents in the work area and is evaluating the root cause of an accident.

Since April 2011, there was one case of occupational accidents resulting in disability and loss of working hours. There is a work

accident report: Report of occupational accidents in STP 2 in February shows 7 incidents, for example: On February 20, 2012 at

8:45 Saripudin, Employee No TS/STP2/1011/3733, chronology: He slipped while loading/unloading fertilizer bags in Block 152. In

the act his hand was caught by the fertilizer bag and hit the trailer resulting in an injury categorized as Accident Class V. Advice

and recommendations to prevent recurrence of similar events: the provision of safety training on induction and Safety Standards

procedures, so that workers know and understand about the dangers of factors that exist in his work. Standard Safety Procedures

Training and emergency response procedures in the Division 2 no date 08/02/2012.


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

Training program in 2011 explains about the types of training, planning and realization of the schedule. It consists of 18 trainings,

hazardous waste management and training for contractors. For example, training programs in STP 2 No. Doc. FRM 2/SOP 38/

(0)/0409 describes the types of training, planning and schedule realization. It consists of 20 training techniques including Working

(SOP), FFB Grading Standard, OHS (the use of APAR, first aid Simulation, Fire Simulation, Oil Spill) and contractors training.

Training SOP is available (SOP 38/HRD/(0)/0409):

Appendix A of the competency requirements for internal and external parties (vendors and contractors)

Appendix B provides procedures of training for: assessing the competency requirements of staff, identification of training needs,

implementation, evaluation of the effectiveness and level of competence and training.

Training records of employees are kept in the Training file in Each Sub-Division and each FC (Field Conductor), which contains

records of results of training activities conducted in each division, for example, STP 2 Division 1 Field supervisor is Jefri (FS

Maintenance), the minutes of training. ( Training has been carry out are:

1. Training of first aid dated February 9, 2012 attended by 46 people.

2. FFB Grading dated February 11, 2012 attended by 46 people.

3. SOP of Reentry interval on February 10, 2012 attended by 46 people.

4. IPM on February 9, 2012 attended by 46 employees.

5. Safety Standards and Emergency Procedures on January 5, 2012 attended by 46 people.

6. RSPO promotion on January 5, 2012 attended by 46 people.


ASSESSMENT REPORT


Staff training reports are available, for example in STP 2:

1. Agrochemical mixing Training on 21/04/2012 attended by four staff

2. Fire fighting simulation on May 1, 2012 which was attended by 32 staff.

3. Training of OHS (risk s due to the negligence of workers and completeness based on the type of work) on 13 November 2011

which was attended by 28 participants.

4. Training for welders in Sampit Wilmar Training Centre as given BLKI Semarang and Assessor of the National Professional

Certification followed by nine participants (Welder and Mechanical) on December 18 to 26 July 2011.

5. Familiarization of SOPS for spraying equipment calibration, standard dose and concentration of the herbicide on the date of

October 25, 2011 was attended by 20 participants.

6. IPM Training on March 14, 2011 was attended by 20 participants.

The mechanism for selecting a contractor via a tender shall take into consideration of the expertise of the contractor. The evidence

showing that the Company has appointed contractors which are trained for example: Based on the company profile of Tanjung

Borneo as a building contractor which contains the article of association of the company, the construction services business license

(No. 0064/ASPEKNAS/15/07/10), Certificate of job skills for technical personnel (No certificates. 037017/PATI-SKTK/TA022/2010

for implementing the type of building work skills; certificate No. 032378/ASTTI/SKT/IV/2007 for this type of housing construction job

skills executor) and the Appendix of work experience in the field of building construction.


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.

Documents of Environmental Impact Analysis in 2007 – for an area of 19,202 ha (Location Permit from the Head of Seruyan No. 55

in 2004) and mill capacity of 120 tonnes FFB/ hour, includes prediction of the impacts during pre-construction, construction, and

operations period.

The impact prediction of operations consists of: micro-climate, gas and dust, noise, physical and chemical properties of soil, water

quality, groundwater quality, flow of river water, water biota, public attitudes and perceptions, social unrest, and the quality of public

health.

There is a result of identification and evaluation of environmental aspects and impacts for 22 activities which include the spraying of

herbicides, watershed management, medical activities, etc. Detailing the types of activities, operating situations (normal, abnormal,

emergency), input, volume/month, the results (including the current or future events), volume/month, the impact (including the

current or future events) criteria (legal, scale, severity, interested parties, score, record/relevant legislation)

Documents of the Environmental Impact Assessment in the area of STP does not include an area of 790 ha that is managed based

on Location Permit from the Head of Seruyan No. 255 of 2007, facts on the field indicate that the additional acreage is fully

manageable as areas of HCV 1.3 – there is no operational changes that the Company needs to coordinate with related parties

(Plantation Agency and Environment agency) of the additional area in the Environmental Assessment documents and IUP.

Implementation Report of RKL / RPL are reported periodically every six months to the Environment Agency of Seruyan District, for example, Report of the second half of 2011 was reported on May 4, 2012 by letter No. 127/STP/ADM/BM/V/2012 about Revised Reporting implementation RKL and RPL for second semester (Period of July-December 2011). This report contains the results of measurements which are still above the threshold of environmental quality standards (NO2). The Company has evaluated and will

determine the corrective actions taken by management. (Ambient Air Measurement results in the employee housing and the front of the mill) on December 1, 2011. Lab Report No. 13/AL/I/2012, dated January 3, 2012. # OFI.2012.03.

Status: Compliance with Observation.


ASSESSMENT REPORT


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.

STP has conducted identification of HCV in 2007 - 2008 which was done by the Malaysian Environmental Consultant Sdn. Bhd.

and a final report was completed in 2009. Identification of HCV had not used the Toolkit yet in June 2008 because the HCV field

assessment was conducted in 2007-2008. Based on these documents, there are attributes HCV 1.3, 2.2, 3, 4.2, 4.3, 5.in the

working area of STP.

Rare and threatened species identified in HCV study is Orangutan (Pongo pygmaeus sp).

Based on information of the management, the Company has conducted a survey of the re-identification of HCV and it was set out

into the management plan in 2009. The survey results are re-revision of HCV which were found, namely: HCV 2.2 in which the

presence is not indicated since the opening has been made in the year 2005 to 2007. Animal species that are endangered or

protected are identified; namely Orang Utan, bear, deer, long-tailed monkey, proboscis monkey. Flora types; Nepenthes, Shorea

belangiran, Calophylum Sp, Shorea parvifolia etc.

Peer review on the HCV identification documents has not been conducted, since the last peer review was made in the period of

2007-2008 in which HCV was still a draft Toolkit. OFI # 2012.07.

STP has compiled HCV Management Plan 2009 which includes management action plans and monitoring of HCV on STP I, STP II

and STP III and consist of HCV Area, Classification and Status, Action to be performed, PIC, Target time / date of completion and

the date of compliance.

STP has a SOP 60/CKP / (0) / 0111 on Protection of habitat of orangutans and action on orangutans found in HGU, which among

others, explains:

- The habitat of orangutan is defined as HCV should not be disturbed by anyone (5.2.1);

- It is mandatory to stop land clearing if orangutan is found in the Location until the Conservation Team complete the study

(5.2.2);

- Report to the Estate Manager and BKSDA when you find sick or injured orangutans (5.6);

- Seize and report when you find orangutan as a pet to the KSDA (5.7)

The Company has put up sign board indicating Riparian Area, Wildlife and Orangutan, Water Intake in some point in the field, for

example; at STP I Block 138, 499, 072, 270. STP conducted training in cooperation with BKSDA of Kalimantan Tengah, SKW II of

Pangkalan Bun and Orangutan Foundation Indonesia (YAYORIN) for orangutans Education Programmed on 21 to 25 February

2011. The training was followed by employees of different levels ranging from managers, staff and employees.

The Company has socialized Orangutans management through the creation of stickers, t-shirts, calendars, pins and posters of

orangutans which are distributed to the employees and the communities surrounding the company.

Enrichment planting for Locations identified as damaged in the area of HCV by using local tree species such as mentibuk

(Dactylocladus stenostachys), ubar (Eugenia sp), bintangor (Callophyllum sp), sindur (Sindora sp), etc. For example, at STP I Block

B 50/51, Block A 50, Block A 53/52 and Block 076. Seeding was updated on December 31, 2011 – with the total of 3,569 stems.

The Company has appointed personnel in charge for the management of HCV in both the company and the Group level in each of

the Company. There are special personnel responsible in managing HCV in PT STP with the position of HCV Conductor (Moh.

Dasrial) who supervises coordinator in charge of regulatory HCV formed in each Estate.



ASSESSMENT REPORT


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

The Company has identified sources of pollution and emissions in mill. STP determine the source of pollution and emissions based

on the management station in the mill, including Office, sorting stations, Loading ramp Station, Sterilizer Station, Thresher Station,

Boiler Station, press station, Clarification Station, Kernel Station, Engine Station, Workshop and Store.

STP has developed mechanisms for the management of hazardous waste produced in the estate and mill. Hazardous waste is

classified as wastewater and solid waste. Waste water is in form of effluent from the mill production process, water waste from the

washing of bag/packaging of pesticides and used oil. Solid waste is in form of used batteries, cotton waste cloth, neon and oil

filters. Hazardous solid waste stored on licensed site before being submitted to a licensed collector.

STP has revised the mechanism of hazardous waste produced in the estate and mill since April 2012. The effluent from the process

is used for land application in the estate. Currently, STP POM is in the review process of land application of waste water in oil palm

plantations. The Company has obtained the permission for the review process, namely by Decree 270 of 2011. Areas of application

recommendations are in Block G32 - G35, H29 - H35 as 137 ha and also in block G36 and G37 as 34 ha

STP mill produces several types of hazardous waste including liquid and solid wastes. They are used oil, used batteries, cotton

waste cloth, gloves, oil filters, bags and packaging of Nalco Chemical is managed by sending to hazardous warehouse licensed

STP 2 which will be further delivered to a licensed collector.

There are monitoring of hazardous waste each month, based on the data for the mill in April 2012, there are 100 liters of used oil.

Mechanism of hazardous waste shipment from the mill to the STP hazardous waste warehouse should be done every 1 week.

However, hazardous waste was found stored over 1 week in hazardous waste warehouse.

During the public consultation, the community informed that the fish they kept are dying in the trenches of Block M56 which is

indicated as the result of overflow of waste from the waste pond. The results of interviews with management, shows that overflow

from the pond 13 were on December 26, 2011; the company has visited and reviewed the indicated contaminated area and also

met with the community. Block M56 monitoring results showed that no fish was found dead in the area. Block M56 is far away from

the waste pond of POM waste (Block I33). However the company has gave the compensation to community and dealt by given the

money and with regard to the foregoing the Company took action to build embankments around the pond. And also made two

additional ponds (pond 14 and 15) to anticipate the overflow of water so as to minimize environmental pollution.

The Company has managed medical waste by cooperating with Dr. Murjani Hospital, by storing medical waste in a plastic bag in

the clinic. The Company needs to store medical waste in an isolated place. OFI # 2012-08.

Minor 5.3.1 See CAR No. 2012.05 with the categories of Minor

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

STP uses fiber and shell as renewable energy. Meanwhile, empty bunch used as organic fertilizer in the estate. The Company

documented the use of fiber and shell as well. Records of monitoring of the use of fossil fuel for the generator set are available at

the mill. Monitoring for the period January-April 2012, shall be as follows:

Period Power resulting from

(Generator) kWh

Fuel for generator

(liter) kWh/liter

January – April 2012 14,880 46,087 0.32



ASSESSMENT REPORT


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.

There is SOP for land clearing No. SOP 31/BM/0/0409 as approved by General Manager of Central Kalimantan Project.

Manual land clearing consist of:

1. Cutting small logs, collapsing, pruning and stacking.

2. Construction of road and drainage.

3. Construction of nursery, land preparation for office complex, housing area and so on.

The Manual set out in Chapter 3 explained about the operation of Land Clearing and Preparation. Point 4.0 explained about Green

Stacking (Zero Burning).

STP has procedure No. PTD 03/CKP/ (03)/0409 - Emergency Response Procedures for land fires, which includes preparedness

and contacts (clause 5.1), fire control (clause 5.2), firefighting teams (clause 5.3) and evacuation (clause 5.4).

Each potential and actual case of fire is monitored on a regular basis (weekly) concurrently with weekly monitoring of HCV, and in

case of fire, patrol officers will report to the Estate Manager and perform firefighting actions by deploying Fire Fighting Teams. Each

case of fire is made into Minutes and submitted to the police for the purpose of the investigation.

Disaster relief organizations consist of the Chairman, Secretary, and members, while the Fire Department organization consists of

the Chairman, Vice Chairman, and assisted by Rescue Team, Fire Team, and the Investigation Team.

There are record of number of fires:

2011 - Recorded 6 (six) cases of fires in and around the work area STP1.

2012 - Recorded 1 (one) case of a fire in adjacent areas, the exact date is March 5, 2012; Block A 26 (007), +1.5 hectare at 11:30

to 12:30; to the police report number STPL/07/III/2012.

The facilities available are portable water pump-1 unit, farm tractor with water bowser-1 unit, ABC fire extinguisher-1 unit, Beaters,

hose-50 m, chainsaws, shovels, tractors with 7 pieces tank(in STP 1 – 2 unit, STP 2- 2 unit and, STP3 – 2 unit).

The facilities are intended as means of land fire preventive efforts, including (1) Insulation of fuel and road ditches of 2-3 meters

wide - along the area bordering the land, (2) Sign board ban on burning land - put in some Location which is considered have high

accessibility, for example on the main road.

There is a map that provides information about fire-prone areas and fire potential areas. Fire Contact No (Sampit Fire Fighters) is

available: 0531-21001.


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

The company has identified sources of pollution and emissions from mill. STP determine the source of pollution and emissions

based on the management station in the mill, including Office, sorting stations, Loading ramp Station, Sterilizer Station, Thresher

Station, Boiler Station, press station, Clarification Station, Kernel Station, Machinery Station, Workshop and Store.

STP shall monitor and measure the quality of waste water emissions from the mill. The tested Parameters include BOD5, COD, pH,

oil and grease, lead, copper, cadmium and zinc. The results of measurements in January 2012 at the last pond showed BOD of

1,001 mg/l (the standard according to PP 82 is 5000 of maximum BOD) and COD 2,781 mg/liter. In addition, STP also measures

river water quality, monitoring and residential wells around the mill operations.

STP also monitored air quality, noise, odor, vibration caused by transportation, operations of estates and mill. Monitoring of the


ASSESSMENT REPORT


quality of emissions from sources of pollution have been conducted periodically by the laboratory testing - independent testing -

every 6 months for boiler, generator and motor vehicles. The measurement results are part of the governance report on the

environmental management and monitoring plan (RKL/RPL). The parameters tested are NO2, SO2, CO, TSP, Lead, HC, and O3 per

the requirements of the PP. 41 of 1999. Checking of the report indicates that all parameters are in accordance with the standard.

STP has a record of identification and monitoring of the management of liquid waste from the mill. Recapitulation of wastewater

produced by STP on the period of November 2011 - January 2912 are:

November 2011 11,564.281 m3 of liquid waste; debit application 16,759 m3

December 2011 13,930.617 m3 of liquid waste; debit application 15,971 m3

January 2012 10,972.379 m3 of liquid waste. Debit application of 17,770 m3

February 2012 that applied liquid waste 18,432 m3

March 2012 that applied liquid waste 23,182 m3

April 2012 applied liquid waste 19,429 m3

Monitoring of the liquid waste is contained in the report of the Phase III study of waste utilization. The report has been reported to

the Environment Agency on 8 April 2012.


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

6.1 Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate the continuous improvement.

The Company has prepared Environmental Impact Analysis, which are approved by the Governor of Kalimantan Tengah Decree

No. 188.44/363/2007 dated August 31, 2007 on the Feasibility of Environmental Activities of estate and POM in PT Sarana Titian

Permata of Seruyan District. The size of area being studied is 19,202 Ha and the capacity of 120 tones FFB/hour. The documents

containined the predicted large and significant during pre-construction, construction and operational stages. In the operational

stage, there will be social impacts of the operation of palm oil plantations, among others;

1. Noise,

2. River water quality,

3. Air Quality,

4. Social Restlessness,

5. Health quality of the people,

6. Attitude and perception of the people.

STP has prepared Documents of Social Impact Assessment which was prepared by The Indonesian Resource Institute (IndRI) in

2010 which explains;

1. Clause 4.1 The affected groups are the employees, people, partner of the Company, and regional government.

2. Clause 4.2 Social impacts that consist of: employment opportunity, occupational health and safety, employee facilities and

benefits, consulting and communications, labor stability, business opportunities, regional income, household earning,

institutionalization, perception on the Company, social and cultural changes, public health, and tenure.

3. Clause 4.3 Response of the affected parties

Social Impact Assessment Documents are prepared based on the aspirations of the people which are collected from in-depth

interviews and Focus Discussion Group.

There is matrix of ' Draft Management Plan of Social Impact of 2010-2015' and the 'Draft 2010-2015 on Social Impact Monitoring

Plan' which details the types of impacts, resource impacts, the parameters measured, methods of data collection and analysis,


ASSESSMENT REPORT


Location of monitoring, the monitoring period, implementing, and supervisor. Draft Management Plan and Monitoring the Social

Impact of the above have been prepared through a series of consultations with the parties affected.

Social impact management is done through Community Development program which is prepared with the participation of people on

annual basis, for example by accommodating Development Plan Discussion results and the results of consultation with the

community.

The planning of Community Development program has yet to involve the participation of affected communities; it remains a

unilateral policy of the Company. The Company accommodates the aspirations of the people, through a proposal submitted by the

public. The people have great expectations and reliance on the presence of company, however STP attempts to manage the social

environment is still not fixed and participative. Although the Company attempts to manage the social environment is quite serious

and significant.

Social impact management is done through a program organized by disseminated to the public. In addition. CD program is

implemented to accommodate the results of village development plan forum that is conducted each year by local governments, and

the activity proposal submitted by the people of Tanjung Rangas Village and Pematang Limau Village. In 2012, the CD program of

STP includes the fields of community development, education, arts, culture and sports, buildings and infrastructure, the economy

and training as well as incidental. The fund allocated for the CD program in 2012 for each village was IDR 114,000,000, -.

Realization of the CD program until the end of April 2012 amounted to IDR 37,600,000 for Pematang Village Limes, and IDR

22,600,000, - for Tanjung Rangas Village

STP has shown its seriousness to realize plasma development. It is shown from the roadmap documents of the activities carried

out by STP related to plasma development acknowledged by Head of Pematang Limau and Tanjung Rengas villages. Things that

have been carried out by STP in Pematang Limau Village among others are communication and appointment of candidate plasma

members, inventory of public lands (on February 10, 2010), and inspection of Location and determination of the coordinates.

Stages of development plasma are: a) Socialization; b) Determination of Plasma Potential, Inventory of public land, inspection of

Location, and retrieval of coordinate points; c) Coordinating with local government of Seruyan and licensing process (planned for

June 2012); d) Preparation of the agreement with the Village (planned for August 2012), and e) Realization of Plasma (planned for

October 2012). STP has also made the material on the introduction of plasma development program. The socialization material

covers legal basis of plasma, development procedures, rights and obligations of plasma, plasma area and institutionalization of

plasma operators.

Minor 6.1.1 Status: See CAR.2012-03 with the categories of Minor

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

There are communication and consultation procedures with the community, among others:

1. SOP No. 12/ESH/ (0)-0409, April 2009 concerning Internal Communication.

2. SOP No. 13/ESH/ (0)-0409, April 2009 concerning External Communication.

3. SOP No. 34/PR/ (0)-0409, April 2009 concerning Procedures of Complaint.

4. SOP No. 44/PR/(0)-0411, April 2011 concerning appointment of public consultation and communication officers

STP always makes the minutes of each consultation and communication with the community, whether conducted by the Community

Development unit. This matter is addressed by the above documents. Documents of the minutes are signed by the STP and the

community.

Open Systems Documents on receipt of complaint procedures and dispute resolution particularly out of court settlement have been

specifically agreed by the community. Documents have communicated to the parties. The Documents are signed by the Public

Relation manager and General Manager.


ASSESSMENT REPORT


STP always responds to any proposal submitted in writing by the community. Oral submission of the proposal is not served. Some

documents above, shows the response/follow-up by STP to the aspirations of the community.

The follow up of community proposal by STP:

a. Provisions of generator set of SMP PGRI 1 SERUYAN HILIR for the academic year of 2010/2011. It was proposed by the

head of SMP PGRI 1 Seruyan Hilir. It was acknowledged by the Head of Village and BPD of Tanjung Rangas Village. The

proposal has been approved and 1 unit of generator has been delivered to unit in form of a proposal, the acceptance of

aid certificate, the giving of the minutes of CD-CSR, the attendance list, and photographs are available.

b. Financial aid for the 66th independence day in the village of Pematang Limau. The proposal was approved and a sum of

IDR 3,000,000 is granted, - supporting documents in form of a proposal, the acceptance of aid certificate, the giving of the

minutes of CD-CSR, the attendance list, and photographs are available.

STP has a list of stakeholders. The number of registered stakeholders is 9 stakeholders in the province of Kalimantan Tengah; 10

stakeholders at the District Seruyan; 2 sub district stakeholders; 4 stakeholders being the village heads, 20 stakeholders of local

community, 12 stakeholders of police and military, 6 stakeholders in PBS; 1 stakeholder of university, 20 NGO, 4 hospitals, 2 banks

and 1 assurance.


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

The Company already has an open system has been accepted by all affected parties which will receive complaints and resolve

disputes in an effective, timely and correct manner. -Documents governing that matters has been disseminated to all appropriate

parties according to receipt of a letter concerning the transparency of information documents of the Company to stakeholders on 20

June to 7 July 2011, which include:

1. Documents of technical guidance for land acquisition/purchase for palm oil plantation

2. SOP OF LAND PERMIT & OPS-006/ (1)-1008, dated October 15, 2008 concerning land acquisition.

3. SOP 29/BM/(0)/0409 concerning technical guidelines for Land Use Title for Business Purpose acquisition

The Company has grievance/complaint handling records, for example:

1. File Documents of Road Map of Dispute Settlement

2. File Documents of Settlement of Claims

3. File Documents of Case Handling.

4. Minutes of complaints and grievance of the employees.


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

The Company has documents which has been delivered to the stakeholders on June 20 June – July 07, 2011, among others:

1 Documents of technical guidance for land acquisition/purchase for palm oil plantation

2 SOP OF LAND PERMIT & OPS-006/ (1)-1008, dated October 15, 2008 concerning land acquisition.

3 SOP 29/BM/(0)/0409 concerning technical guidelines for land acquisition

4 SOP 30/BM/ (0)/0409 concerning settlement of land dispute.

5 Memorandum of Understanding traditional title

6 SOP 46/PR/ (0)-0709 concerning provision of information to any third party (transparency).

7 SOP 43/PR/ (2)-0510 concerning acknowledgment and commitment of the Company to indigenous rights of the

people.


ASSESSMENT REPORT


There are documents of recapitulation of land acquisition compensation for the period of June 2006 - June 2010. Documents shall

contain the name, address, occupation, No. Cases, Block, area, amount, payment date, the period and the Estate. And they shall

elaborate about 664 cases with an area of 4,301.31 ha of Tanjung Rangas and Pematang Limau villages of 723 cases covering

3,209.10 ha. Total 1,387 case covered 7,610.41 ha of land. Land acquisition is based on Head of Kotawaringin Timur decree No.

316 of 2007 on the basis of the price of land and crops in Kota Waringin Timur district.

The compensation is accompanied by the release of the minutes of the deal and land rights, photos of activities and receipts.

Example: the official report of land acquisition agreement between the brothers signed with STP agreed on October 3, 2007.


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

There is a copy of salary slip for each employee

The Company has payroll according to SKD 005/ED-WIP/SK-II/2005 concerning range of salary issued on February 27, 2009, the

salary range shall include:

1. Permanent employees (Level 2B-8)

2. Full time daily workers (Level 2A) = IDR 1,464,000.

3. Part time daily workers (Level 1) = IDR 58,560/day.

The salary given is in accordance with the Minimum Regional Wage of Seruyan of IDR 1,464,000 based on the minutes and

attendance list of socialization of minimum regional wage of Seruyan District dated December 30, 2011.

The Company has regulation which has been agreed upon by the Company and employees which were sign on February 17, 2012

by head of Labor and Transmigration and Tourism Agency of Seruyan District. No. 560/280/LABOUR

AGENCYTRANSPAR/II/2011.

The Company shall provide public facilities for the employees, among others:

1. Housing Facilities

2. Educational facilities in form of in-site Kindergarten and Primary School, whereas for Junior and Senior High School

students, school bus will be provided.

3. Water treatment facilities in each housing area.

4. Health facilities such as clinics in each estate.

5. Sport facilities (football field, volley ball and badminton court).

6. Religious facilities such as mosque and church.

There are contracts with contractors that require contractors to comply with regulations in terms of employment such as the use of

PPE and liabilities of social security provision. For example, SPK. No. 61 C and A/608/STP (I) -011, dated February 8, 2011.


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.

There is memorandum of revisions of provisions on employment No. 026/WIP-HRD/Int-VIII/2009 dated August 12, 2009, which

among others, include a statement about freedom to associate.

To date the union labor in STP has not been established. Stages of formation of new unions are merely on the introduction stage

as of April 25, 2011, with the target being of full time employ and the half time employ, which was attended by 25 people.


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.


ASSESSMENT REPORT


There are memorandums of revised labor provisions No. 026/WIP-HRD/Int-VIII/2009 dated August 12, 2009, which among others,

include a statement regarding the prohibition on employing minors. Socialization of the policy has been carried out on 25 April 2011

as evidenced by the minutes and attendance list.

The Company has recorded the implementation of the rules on child labor in the SOP No. 32/HRD / (0) -0409 in clause 4.1.1 which

states that it is prohibited to employ children under the age of 18. Documents of the admission of workers / labors are available.

There is signboard in the open air that reads " No child labour


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

There is memorandum on revision of provisions on manpower 026/WIP-HRD/Int-VIII/2009 dated August 12, 2009, which among

others, include a statement on equal employment opportunities for employees. Socialization of the policy has been carried out on

April 25m 2011 as evidenced by the minutes and attendance list.

SOP HRD Head: PD-01. June 1, 2008 on the promotion status.

018/HRD-WGP/Int-IV/2008 memorandum on the promotion and periodic salary increases.

Based on a Directors decree SKD 020/ED-WIP/SK-VII/2009 about the competence positions within the organization and has been

delivered to employees through career socialization planning on December 30, 2011.

The Company has a system of merit-based career paths include employees daily. Daily Part Time may worker be appointed as

Permanent Daily Worker if he has met 21 uninterrupted working days for if it meets every month for 3 consecutive months.


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

There is memorandum of revision of labor provisions No. 026/WIP-HRD/Int-VIII/2009 dated August 12, 2009, which among others,

include a statement on the prevention of violence and sexual abuse to women.

Socialization of the policy has been carried out on April 25, 2011 as evidenced by the minutes and attendance list.

There is women committee which accommodates the prevention of sexual harassment. There is no new policy on handling

complaints in particular. No cases of sexual harassment found. Based on the field visit and interviews with Sprayers in Blok E4/5,

there is no evidence that the employees are aware of policy on the protection of rights of reproduction.

Minor 6.9.2 Status: See CAR-2012.04 with the categories of Minor

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

The Company does not buy palm FFB from other parties. There are examples of contract agreed upon by the Company and the

contractor, for example: contractor Sukardi (SPK No. STP-2/CCP/2007/0258).

Certificate of SPD 2 in H01 and H02 block 029 payment is available for contractor Sukardi, The No. of Contract is STP-

2/CCP/2007/0258 for Cutting stump type of work on December 6, 2007 Claim 1. Other activities to the contractor are cutting of

small logs, Collapsing, Pruning and stacking. SPK No. STP-2/CCP/2007/0258 is IDR 50,000/Ha. the contractor based on payments

receipts is IDR 1,792,535 on 23 February, 2008.


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


ASSESSMENT REPORT


The implementation of the Community Development program in 2010 and 2011 has been documented, in which it includes areas of

activity, the amount of funds and the place of the activities. The amount of funds that have been used to implement the CD program

CD in Tanjung Rangas Village and Pematang Limau Village in 2010 and 2011 was IDR 130,000,000 and IDR 197,092,550

STP together with the community built a public road to replace the old road in 2012. The Road width is 6 meters and the length is

1.5 km and was built on the land granted by the people of Tanjung Rangas Village. The total fund that spent by Company for the

construction of this road was not communicated.

In 2007, the Company built a school building in the Tanjung Rangas Village with the cost of IDR 600 million. The Company helped

to pay 4 teachers' salaries in Tanjung Rangas and 1 person in Pematang Limau.


PRINCIPLE #7 Responsible development of new plantings

7.1 A comprehensive and participatory independent social and environmental assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations.

The Company has prepared Environmental Impact Assessment Documents, which has been approved by the Governor of

Kalimantan Tengah, by Decree No. 188.44/363/2007 dated August 31, 2007 on the Environmental Feasibility of Estates Palm Oil

Plantation and POM of PT Sarana Titian Permata, Seruyan District, and Kalimantan Tengah Province. With study area of

19,202 Ha and capacity of 120 tones FFB/ hour, in which the document contains the predicted large and important impact of the

current Preconstruction, construction and operational Phase. Prediction of the impact operations consist of: micro-climate, gas and

ash, noise, physical and chemical properties of soil, river water quality, groundwater quality, debit flow of river water, water biota,

public attitudes and perceptions, social unrest, and the quality of public health.

Documents of Environmental Impact Assessment of STP area does not include an area of 790 ha that are managed by based on

Location Permit No. 255 of 2007from Head of Seruyan, facts on the field shows that the additional acreage is fully manageable as

areas of HCV 1.3 – rare ecosystem or endangered species, so that no operational change is necessary to require company to

coordinate with related parties (Plantation Agency and Environment agency) with regard to the additional area in the Environmental

Assessment documents and IUP.

In the operational stage, there will be social impacts of the operation of palm oil plantations, among others;

1. Noise,

2. River water quality,

3. Air Quality,

4. Social Restlessness,

5. Health quality of the people,

6. Attitude and perception of the people.

STP has also prepared Documents of Social Impact Assessment which was prepared by The Indonesian Resource Institute (IndRI)

in 2010 which explains;

1. 4.1 The affected groups are the employees, community, partner of the Company, and regional government.

2. 4.2 Social impacts that occur include: employment opportunity, occupational health and safety, employee facilities and

benefits, consulting and communications, labor stability, business opportunities, regional income, household earning,

institutionalization, perception on the Company, social and cultural changes, public health, and tenure.

3. 4.3 Response of the affected parties.


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.


ASSESSMENT REPORT


There is report of detail soil analysis of STP (Soil of Field of Sarana Titian Permata May 2007 which was made available by PARAM

Agricultural Soil Surveys (M) SDN. BHD. Soil analysis is done once every 5 years. The result of analysis includes several aspects,

among others:

1. Environmental Aspects

Topography and Drainage

Geology and Geomorphology

Climate

Rainfall and rain days (Monthly Data is available).

2. Soil of the study area

Description of the soils: A total of 18 soil mapping units have been identified in the estate.

Topography

Flooding

Soil Erosion

Soil nutrient status

Evaluation of soil fertility status

Soil Management Group

Based on the results of soil survey and soil map detail of STP show that the topography is considered into slope area which is

classified into class level and undulating (0-12%) so there is no terracing and management of sloping area.

Table of Soil Management Group, result of survey of land detail soil map of STP in May 2007 available by PARAM Agricultural Soil

Surveys (M) SDN. BHD which indicates the class of marginal land Soil Management group C/sandy soil (BSO and MRI), group D

(Sri), Group E/peat (Gli, GDG, Slh, OCM). With the map scale 1: 20,000

The soil survey report also contains strategy development for marginal lands, including:

Marginal land management strategies:

1. Sandy soil management (Soil Group C and D) according to the recommendation of result of detail land survey and Memo

from GM No. 072/EMU/VII/2009:

Mulching with FFB

LCC Planting

Appropriate fertilizing

2. Management of peat land (Soil group E) according to the recommendation of result of detail land survey and SOP for the

management of peat land, SOP No. SA 03/EMU/(3)/0811:

Water management

Good fertilizer (trace elements Cu, An, B)


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.

STP has conducted studies on the identification of HCV from 2007 to 2008 which was carried out by the Malaysian Environmental

Consultant Sdn. Bhd. And the final report was completed in 2009. The Identification of HCV has not been done by using the

Toolkit in June 2008 since field assessment was conducted in 2007-2008. Based on these documents, there are attributes of HCV

1.3, 2.2, 3, 4.2, 4.3, 5.in the working area of STP

The Company has provided a map of land-clearing plan and has considered the delineation of a HCV map as a reference in land

clearing. Based on field visits to STP 1 (Block A 50, 076) and STP III (Block 076) which is the HCV area, the Company has carried

out demarcation on the field by using HCV pole.



ASSESSMENT REPORT


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

Based on the results of soil survey and detail soil map of STP (Soil of Field of Sarana Titian Permata on May 2007 by PARAM

Agricultural Soil Surveys (M) SDN. BHD. Show that the topography of the land is slope which is classified into class level and

undulating (0-12%) so there is no steep land which is prone to landslide.


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.

Land Acquisition Chronology:

STP establishes a Village Team consisting of 7 peoples to inventory the land belonging to the community.

The result of inventorying does not show any land/ plantation/field of the people of Tanjung Rangas Village.

People and STP agree to enter into MOU concerning provision of compensation to all people of Tanjung Rangas who are

represented by Head of Household (KK).

The compensation is given in 2 stages.

a. Tanjung Rangas Village

1. MOU was signed on March 7, 2006. MOU is known to and signed by the Head of Seruyan and Head of Regional

Legislative Council, with the signatory witnesses such as: Regional Secretary, Head of Governance Division, and

Head of Representative Office of National Land Agency, Head of Legal Department, Head of Economic

Development Department, and Head of Seruyan Hilir Sub District.

The MOU shall contain among others: a) compensation for the loss of land function from STP to the community;

b) The party representing the community is Ardiansyah (Head of Tanjung Rangas Village); c) Each family is

given a compensation for 10 Ha in which the amount of compensation per hectare is IDR 450, 000,-; d) The

number of households receiving the compensation is 268 Households.

Complete documents which consist of: a) MOU between STP and the village of Tanjung Rangas Team (Head of

Village); b) Evidence of Benefit Provision: The name on the chest (the identity of the recipient); Photograph of

the beneficiary; Household record; A written statement (of not having arable land; not to file any subsequent

claims, and STP will construct junior high school building consisting of three classrooms and the support

facilities); To support the activities of STP; and Ready to be prosecuted according to the law); and Receipt; c)

Documents of Recapitulation of Land Compensation of STP.

2. Article 6 of the MOU sets out the compensation for “PALANTAN " farmers group; with the details of the number of

members of 166; area of 336 hectares; all members receive compensation of IDR 900,000 / members, or

equivalent to 2 ha. Documents of compensation are: a) MOU between STP and PALANTAN farmers group "(for

example on behalf of Johani); b) Evidence of Benefit Provision: The name on the chest (the identity of the

recipient); Photograph of the beneficiary; Household record; A written statement (of not having occupation land;

not to file any subsequent claims, and STP will construct junior high school building consisting of three

classrooms and the support facilities); To support the activities of STP; and Ready to be prosecuted according to

the law); and Receipt; c) Documents of Recapitulation of Land Compensation of STP.

3. Complete documents for each recipient of compensation which consists of: a) Statement releasing the rights and

interests over land and crops growing on forest land as well as the receipt of compensation payments. Each file

will be witnessed by a Village that consists of 7 persons; b) Land release Statement signed by the owner of the

land and the known to the National Land Agency of Seruyan District; c) Delivery of Land Certificate signed by the

landowner and the Company, as acknowledged by the Head of village and sub-district, and all legalizations


ASSESSMENT REPORT


documents; c) a statement signed by the owner of the land, and witnesses, the village and sub district head;

drawing of the land, and receipts.

b. Pematang Limau Village

MOU between STP and Pematang Limau Village team which was represented by the head of the village (Adriani) contains

among others: the value of compensation of IDR 450,000/hectare; communities receive compensation according to land.

Supporting documents required: identity (name on the chest); photos; waiver of rights and interests over land and forest

land to grow crops; and receipt of payment of compensation; waiver on the title of the ground (e.g. on behalf DARLAN.A);

land transfer certificate (e.g. on behalf of DARLAN. A); a statement (on behalf DARLAN A); drawing of land, and receipts.


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.

STP formed the village team consisting of 7 people to inventory people’s land. The result of inventorying does not show the

presence of plantation/farm/ arable land of the people of Tanjung Rangas village. The people and STP agreed to enter into an MOU

on the granting of compensation to all people of Tanjung Rangas and Pematang Limau village who are represented by the Head of

Household (KK). The compensation is awarded in two stages. MOU between STP and Pematang Limau and Tanjung Rangas

Village Teams, as represented by the Head of Pematang Limau and Tanjung Rangas Villages, namely Adriani and Ardiansyah. The

MOU contains, among others: the value of compensation of IDR 450.000/ha; communities receive compensation according to

arable land. There are supporting documents such as: Identity; photograph; a statement releasing the rights and interests over land

and forest land to grow crops; and receipt of payment of compensation; statement of waiver on right of the land); certificate of land

transfer; a statement; drawing of the land; and receipt.

STP is committed to building plasma. There are documents of the roadmap of development of plasma in Pematang Limau and

Tanjung Rangas villages.


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.

There is SOP for land clearing No. SOP 31/BM/0/0409 as approved by General Manager of Central Kalimantan Project.

Manual land clearing consist of:

1. Cutting small logs, collapsing, pruning and stacking.

2. Construction of road and drainage.

3. Construction of nursery, land preparation for office complex, housing area and so on.

The Manual set out in Chapter 3 explained about the operation of Land Clearing and Preparation. Point 4.0 explained about Green

Stacking (Zero Burning).

There is evidence on zero burning land clearing in the form of a Certificate of payment of STP Field No. 2. H01 and H02 to the

contractor Sukardi Block 029, No. Contract STP-2/CCP/2007/0258 stump cutting type of work on December 6, 2007 Claim No. 1.

Other activities of the contractor are Cutting small logs, Collapsing, Pruning and stacking.

STP has had procedure NO. PTD 03/CKP/ (03)/0409 - Emergency Response Procedures for land fires, which includes

preparedness and contacts (clause 5.1), fire control (clause 5.2), firefighting teams (clause 5.3) and evacuation (clause 5.4).

Each potential and actual case of fire is monitored on a regular basis (weekly) concurrently with weekly monitoring of HCV, and in

case of fire, patrol officers will report to the Estate Manager and perform firefighting actions by deploying Fire Fighting Teams. Each

case of fire is made into Minutes and submitted to the police for the purpose of the investigation.


PRINCIPLE #8 Commitment to continuous improvement in key areas of activity


ASSESSMENT REPORT


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.

The Company is committed to continuous improvement to every aspect of cultivation and plantation management. For example,

Records of reduction in the use of certain chemicals:

- According with SOP pest control, it is stated that paraquat was not used. The use of paraquat was replaced Ammonium

Glufosinate (e.g. pesticides Basta).

- Based on the data and diagrams Petrocum (active ingredient Brodifacum), in 2010 and 2011 STP 1 shows the reduction in

the use of data. In 2010 the use of as much as 1,374 kg in 2011 to 210 kg).

There is evidence of improvement over the current findings during Stage 1, for example:

1. Meeting Minutes of the findings of Stage 1 RSPO meeting on March 24, 2012 was attended by 28 staff. Discusses the

findings of the corrective actions Stage 1 RSPO

2. Meeting minute of follow-up audit findings ST 1 RSPO on April 8, 2012 attended by 21 participants. Discusses the results

of the improvements made (available record improvements).


3.2. Summary of Assessment Report of Supply Chain

Clause CPO Mills Mass Balance Model Requirements

1 Documented Procedures

1.1


ASSESSMENT REPORT


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.

Company has procedures to ensure the traceability of FFB and product which produce from STP palm oil mill on SOP Number SOP-ISCC-01 dated April 1, 2012. The document contained explanation for responsible personnel on product traceability process flowchart, for example:

a. Security officer b. Weight bride officer, grading and logistic c. Administration Head d. Mill manager


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

STP has not been RSPO certified.

Status : Not Applicable

2 Purchasing and goods in

2.1 The facility shall verify the received volumes document of certified and non-certified FFBs is available

STP palm oil mill has set the Mass Balance type for RSPO product traceability process


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

STP palm oil mill committed to inform the CB immediately if there is a projected overproduction after receive the RSPO certificate.


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.

STP palm oil mill has prepare the document related to ISCC (International Sustainable Carbon Certification) implementation such as CPO shipment letter, delivery order document and invoice


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

STP palm oil mill has set the retention times of all record and report related to supply chain certification system for 5 years and it was contained in record control document (SOP-ISCC-02 dated May 10, 2012)


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

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

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

Not Verified. STP has not been RSPO certified.

Status: Not Applicable

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


ASSESSMENT REPORT


*product name*/MB or Mass Balance. The supply chain model used should be clearly indicated.

Not Verified. STP has not been RSPO certified. STP palm oil mill has prepared the document related to ISCC (International Sustainable Carbon Certification) implementation such as CPO shipment letter, delivery order document and invoice

Status: Not applicable

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

Will be verified at next assessment. STP has not been RSPO Certified


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 (d) The quantity of the product delivered (e) Reference to related transport documentation

Not Verified. STP has not been RSPO certified. STP has prepare the mechanism and supply chain certification system document


5 Training

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

STP has conduct the supply chain training to related staff on supply chain certification system. STP has showed the training document which contained names of participant.

a. Alfi Syahri, POM Manager b. Ardianta, Head of laboratory

STP has conducted the supply chain socialization to all staff which responsible related to the system.


6 Claims

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

Not Verified. STP has not been RSPO certified.



ASSESSMENT REPORT


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

During the stage 1 assessment, nonconformity was assigned against Major Compliance indicator. Further explanation of the non-conformity raised and corrective actions taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to close non-conformity shall be verified during stage-2 assessment.

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

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2012.01. Major 2.1.1

Management of hazardous waste-

Based on waste monitoring data, there

are hazardous waste (used lubricants,

used cloth, used lamp, filter) which has

been kept for more than 90 days in the

POM Temporary Warehouse which is

against the recommendation of Head of

seruyan Decree No. 395 of 2011.

Plasma requirements- STP has

obtained IUP No. 525/109/EK/2007

about plantation bussiness permit dated

March 13, 2007, however it is not an

adequate evidence for the construction

of land for the people which should take

the size of at least 20% of the total area

of the plantation being operated by

referring to Regulation of Agricultural

Ministry No. 26 of 2007.

POM Major Stage 2 STP shall review

the applying

regulation related

to the storage of

hazardous waste

and development

of plasma for the

people.

10 May 2012. Hazardous waste (used

lubricants, used cloth, used lamp, filter) has

been sent to the STP 2 hazardous Waste

Storage Warehouse which is the warehouse

for hazardous waste under the Decree of

Head of Seruyan NO. 395 of 2011.

The Company has shown road map

documents acknowledged by Head of

Pematang Limau and Tanjung Rengas

villages. The plasma development efforts

include dissemination activities to the

surrounding villages (January 27, 2010), the

determination of candidates for the plasma,

an inventory of public lands (on February

10, 2010), coordinating with local

government of Seruyan and licensing

process (planned for June 2012),

preparation of Memorandum of

Understanding (MoU) and village (planned

for August 2012), Realization of Plasma

development (planned for October 2012).

Closed 10 May

2012


ASSESSMENT REPORT


3.3.2 Identification of Findings, Corrective Actions and Observations at Stage 2

During the stage 2, 3 nonconformities were assigned against Minor Compliance Indicators, 9 (nine) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to close all non-conformities shall be verified during next assessment.

CAR No



Closing Date

2012.02 Major

2.1.1

Compliance with the Regulation –

There are several regulations which

are applying and has yet to be

observed by the Company, such as:

1. The Company has not been able

to show evidence that it has

already obtained the basic permit

(Land Clearing) in the

construction of palm oil plantation

of STP.

2. There was found diesel fuel

spillage contaminated to soil

directly at POM diesel fuel tanks

in-accordance with Government

Regulation (PP) No. 18 of 1999

in conjunction with Government

Regulation (PP) No.85 of 1999.

estate

and Mill

Major STP should review the applicable

regulatory requirements related to

permit Land Clearing and

management of hazardous waste.

May 11, 2012

Basic of land clearing (LC) can

be showed from IUP (Izin Usaha

Perkebunan or Plantation

Business Permit) No.

525/109/EK/2007 the first Point

issued by Head of Seruyan on

March 13 2007 is stated PT

Sarana Titian Permata to be

permitted to establish

(construction) the oil palm

Plantations.

May 19, 2012

The Company has installed

nozzle stopper and made a

concrete floor on secondary

containment to avoid direct soil

contamination

Closed May 19

2012

2012.03 Minor

6.1.1

Management of Social Impacts - In

social management plan The

Company has a CD program, but

there is not enough evidence that the

estate

and Mill

Minor S1 The Company must prepare CD

program by involving the

aspiration of the people


ASSESSMENT REPORT


CAR No



Closing Date

Company has involved the

participation of the affected

communities in the preparation of the

plan.

2012.04 Minor

6.9.2

Preservation of Rights of

Reproduction – Based on the field

visit and interviews with Sprayers in

Blok E4/5, there is no evidence that

the employees are aware of policy on

the protection of rights of reproduction

estate

and Mill

Minor S1 The Company shall communicate

the rights of reproduction to all

female employees.

2012.05 Minor

5.3.1

Treatment of hazardous Waste- The

Company has had mechanism of

transportation of hazardous waste,

however, there is inconsistency in the

implementation.

Mill Minor S1 The Company shall conform the

implementation of hazardous

waste transportation with the

mechanism being prepared


ASSESSMENT REPORT


3.3.3 Opportunity for Improvement

No Ref Std Descriptions

1 Document Legalities - The Company shall obtain /approval for the documents particularly related to the planning.

2 Major 2.2.1

Minor 5.1.1

Minor 6.1.1

The Company must coordinate with the relevant agencies e.g. Dinas perkebunan dan Badan Lingkungan Hidup (Plantation Agency and Environment Bodies)

concerning the addition of area in Environmental Review documents and IUP.

3 Major 5.1.2 The Company need to add the results of corrective action on the evaluation in the report of RKL / RPL performance, such corrective action on the results is

measured by using parameters which are still above the threshold of environmental quality standards.

4 Minor 4.7.2 The Company should complete the medical checkup that has been planned for STP 1 operator.

5 Minor 4.7.4 STP should review the post-training evaluation system of first aid to ensure that all participants can demonstrate an understanding of materials related to his

work. Interview with Supri (staff mixing chemicals in the STP3 warehouse) claimed not to know what to do when there is direct contact of chemicals in the body

or poisoning.

6 4.7.7 The Company is preferably evaluates the procedures of awareness and emergency response related to the establishment of evacuation route.

7 Major 5.2.1 The Company is preferably preparing Peer Review documents from the Outcome of HCV Identification.

8 Minor 5.3.1 The Company has conducted a medical waste management in collaboration with the Hospital Dr Murjani, temporary storage of medical waste in plastic bags in

the media in the clinic. To increase the security of medical waste storage, the Company should keep plastic bags containing medical waste into a waterproof

case and put it in an isolated place.

9 Major 6.11.1 The Company has realized the CD program; however there is no sufficient evidence in form of proper documentation and communication of the activities.


ASSESSMENT REPORT


3.3.4 Positive Components

No Ref Std Descriptions

1 The Company has established organization that is responsible for the proper implementation of P&C RSPO.

2 3 The company has prepared sustainable financial plan.

3 4 The Company has properly implemented Cultivation and Management Techniques.

4 5.2 The Company has good commitments in managing the High Conservation Value.


ASSESSMENT REPORT


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

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

Chairman of Dayak Tribe Council

Based on the observation of the head of dayak tribe

council, there is no plantation of oil palm plants on the

riparian.

Local community of Tanjung Rengas Village:

1. The Company has never communicated with the

people in determining the CD/CSR program

2. The Company has never given compensation for the

land of the people. The agreement is only for the

provision of allowance in which each head of the

household is given IDR 4,500,000,-

3. There has been pollution which results in the death of

the fish in the river due to the run-off and leakage of

waste from the POM during the rainy season.

4. The people have proposed the construction of road to

Keluak River.

1. The Company has implemented a CD program that has

been established, but the determination of program CD /

CSR is set without involving the community. Meetings

with the public are only for the socialization of HCV, the

existence of traditional rights and other agreements.

2. The Company only gives allowance since no land of the

people is located within the work area of the Company.

3. The Company has had the mechanism to overcome the

leakage of waste and has resolved such problems.

4. The Company has constructed road to Keluak River.

1. The Company shall prepare the CD/CSR

program buy involving the people.

2. The Company has shown land loss

compensation documents under Decree of

Head of Kotawaringin Timur No. 316 of 2007

concerning the Basic Price of Land and

Plantation in Kotawaringin Timur District. See

Criteria 2.2

3. The problem has been settled by the Company

and the people. See Criteria 5.3

4. Based on the field visits and documents, the

Company has constructed such road, bit at

present the condition of the road is not

maintained.

Local community of Pematang Limau Village

1. The people had proposed the construction of religious

facilities (mosques) however it has not yet to be

responded by the Company.

2. The people question the policy of the Company on

plasma development.

1. The Company has not yet to receive request from the

people of Pematang Limau Village for the construction of

mosques, however company will follow up after the

proposal had been received.

2. The Company is committed to implement the plasma

program and several steps related to the plasma

development have been taken.

1. STP always responds to any proposal

submitted in writing by the community. See

Criteria 6.2

2. Implementation of the plasma program and

several steps related to the plasma

development progress will be observed. See

Criteria 6.1


ASSESSMENT REPORT


3. The people had proposed the construction of road

from the Company to Pukun River.

4. The Company opens more job opportunities for the

people.

3. The Company has constructed road to Pukun River.

4. There are peoples from the surrounding area work at

STP.

3. Based on field visits and documents the

Company has constructed the road to Pukun

river but currently it is not well maintained.

4. Based on field visits and interviews such as

sprayers employees and mill operators known

that the workers were from the local peoples.

Head of Tanjung Rengas Village.

1. The Company had carried out the CD/CSR program in

the village of Tanjung Rengas which includes:

provision of educational facilities (building junior high

school, providing school tables and chairs, library and

textbooks), providing salary for part time teacher,

renovation of mosque, purchasing livestock for the

people and providing fund for youth organization.

2. The Company gives inadequate remuneration to the

people.

3. The Company does not give severance pay for the

resigning employees.

1. The Company has already conducted such CD/CSR

program.

2. The Company has given the remuneration for the

people by referring to minimum wage specified and by

cooperation with Labor Agency in communicating such

issues.

3. The Company has specific requirements for the

resigning workers in order to get severance pay by

referring to the prevailing regulations (Statute No 13 of

2003) for example concerning the requirement of the

workers to give 1 month notification prior to resigning,

however, the Company shall provide the remaining

salary.

1. The Company has shown evidence of

realization of CD/CSR program to the villages.

2. The Company has shown evidence that the

minimum wage provided has met the minimum

wage specified for Minimum Regional Payment,

Seruyan District in 2012 namely IDR 1.464.000

3. This case arises due to the lack of

understanding of the people to manpower

regulations and The Company must

communicate the said regulations to the people

by involving the relevant institutions (Labor and

Transmigration Agency)

Head of Pematang Limau Village

1. The Company had carried out the CD/CSR program in

the village of Tanjung Rengas which includes:

provision of educational facilities (school tables and

chairs, library and textbooks), agricultural support

(covering expenses for the rat control).

2. The company is highly committed in developing

plasma. The company has held several meeting with

the community with regard to plasma program

development.

1. The Company has already conducted such CD/CSR

program.

2. The company has taken several steps to realize the

plasma program.

1. The Company has shown evidence of realization

of performance of CD/CSR program in the nearby

villages.

2. The Company must coordinate with the relevant

institution for the plasma development program

particularly in terms of plasma area provisions


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:

Group Sustainability Controller Mutuagung Lestari

Wilmar Plantation International Lead Auditor

Simon Siburat Nanang Mualib

Date : 11/05/2012 Date : 11/05/2012


ASSESSMENT REPORT


Appendix 1. Peer Review Report

Name of Reviewer:

I. General comments on the evaluation

No Issues and Comments Clarification/explanation

TO BE FILLED IN BY MUTU

II. General comments on the inspection report


III. Specific comments on the proposed certification decision, including any reconditions, conditions or recommendations



ASSESSMENT REPORT


Appendix 2. Result of RSPO Committee - RSPO Certification

No Input and Responses


ASSESSMENT REPORT


Appendix 3. List of Stakeholders Contacted in the RSPO Certification Process

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

1. Seruyan Environment Agency Kuala pembuang - Consultation Meeting May 08, 2012

2. Seruyan National Land Agency Kuala pembuang - Consultation Meeting May 08, 2012

3. Seruyan Forest and Plantation Agency

Kuala pembuang - Consultation Meeting May 08, 2012

4. Didi Darmadi S.STP Seruyan Hilir - Letter April 24, 2012

5. Adriani Pematang Limau Village - Consultation Meeting May 08, 2012

6. Abdul Syukur Tanjung Rangas Village - Consultation Meeting May 08, 2012

7. Guntur Tanjung Rangas Village - Consultation Meeting May 08, 2012

8. H. Darham Local Community - Consultation Meeting May 08, 2012

9. Subli Hayati Teacher - Consultation Meeting May 08, 2012

10. Rudiansyah Tanjung Rangas Village - Consultation Meeting May 08, 2012

11. Arni Tanjung Rangas Village - Consultation Meeting May 08, 2012

12. Abdul Sidik Local Community - Consultation Meeting May 08, 2012

13. Asmuni Local Community - Consultation Meeting May 08, 2012

14. Riduansyah Local Community - Consultation Meeting May 08, 2012

15. H. Yusni Local Community - Consultation Meeting May 08, 2012

16. H. Muhrom Local Community - Consultation Meeting May 08, 2012

17. Norbek Pematang Limau Village - Letter April 24, 2012

18. Aliansyah Pematang Limau Village - Consultation Meeting May 08, 2012

19. Jailani Pematang Limau Village - Consultation Meeting May 08, 2012

20. Surianso Pematang Limau Village - Consultation Meeting May 08, 2012

21. Ramli Local Community - Letter April 24, 2012

22. Asmuni Local Community - Consultation Meeting May 08, 2012

23. Markoni Local Community - Consultation Meeting May 08, 2012

24. Nurmuhammad Local Community - Consultation Meeting May 08, 2012

25. Syahminin Pematang Limau - Letter April 24, 2012

26. Izul Pematang Limau - Letter April 24, 2012

27. AKP Indras Purwoko Seruyan Hilir - Letter April 24, 2012

28. Laribara Pematang Limau - Consultation Meeting May 08, 2012

29. Aliansyah Pematang Limau - Consultation Meeting May 08, 2012

30. Pamusni D Pematang Limau - Consultation Meeting May 08, 2012

31. Supian Tanjung Rengas - Consultation Meeting May 08, 2012

32. Muslih Maulana Tanjung Rengas - Consultation Meeting May 08, 2012

33. H. Mulyadi. R Kuala Pembuang - Consultation Meeting May 08, 2012

34. Djoko Tony Kuala Pembuang - Consultation Meeting May 08, 2012

35. Ardiansyah Kuala Pembuang - Consultation Meeting May 08, 2012

36. Muhamad Yuni Tanjung Rengas - Consultation Meeting May 08, 2012

37. Masdan Pematang Limau - Consultation Meeting May 08, 2012

38. Anang Muhrani (Local NGo) Betang Membangun - Consultation Meeting May 08, 2012

39. Palangkaraya University Kompleks Unpar, Palangka Raya, 73111

- Letter May 1,2012


ASSESSMENT REPORT


40. Kalimantan Tengah Tribe Organization

- - Letter May 1,2012

41. Yayasan Petak Danum Kalimantan Tengah (NGO)

Jl. Karuing I No.19 RT. II RW. 02/III Kel. Selat Tengah, Kuala Kapuas

- Letter May 1,2012

42. Yayasan Betang Borneo (NGO) Jl. Aries No. 38 Palangkaraya, Kalimantan Tengah 73111

- Letter May 1,2012

43. Yayasan Borneo Lestari (NGO) Jalan Masjid No.381, Kumai 74181, Kalimantan Tengah

- Letter May 1,2012

44. Walhi Kalimantan Tengah (NGO)

Jl. Virgo IV No.126 Komplek Palangkaraya, 73112 Kalimantan Tengah – Indonesia.

Phone 0536-3229202

Fax: +62[536]-3238382

Letter May 1,2012


ASSESSMENT REPORT


Appendix 4. Assessment Plan

DATE 06 – 12 May 2012

PLANNED TIME

ACTUAL DURATION

PROCESSES / CLAUSES TO BE AUDITED AUDITOR

06.05.2012 14.30-16.30

16.30-21.00

06.05.2012 14.30-16.30

16.30-21.00

Travelling Travelling from Jakarta to Sampit Travelling from Sampit to PT Sarana Titian Permata

ALL TEAM

07.05.2012 08.00-09.00

09.00-12.00

12.00 – 14.00

14.00 – 18.00

07.05.2012 08.00-09.00

09.00-12.00

12.00 – 14.00

14.00 – 18.00

Opening Meeting at estate office Documentation Review e.g. Commitment to long-term economic and financial viability (3.1) Basic Information, Use of appropriate best practices by growers and millers (4.1; 4.2) In Mill. Compliance with applicable laws and regulations (2.1) Commitment to long-term economic and financial viability (3.1) Basic Information, Use of appropriate best practices by growers and millers (4.1; 4.2) In Estate Compliance with applicable laws and regulations (2.2; 2.3) Lunch/Pray Travelling from PT Sarana Titian Permata to Kuala Pembuang

MM

NM

MES

HRI

All Team

All Team

08.05.2012 08.00-11.00

11.00-14.00

14.00-18.00

08.05.2012 08.00-11.00

11.00-14.00

14.00-18.00

1. Public consultations with governments and NGOs

2. Public consultation with local goverment and local communities

around estate. Travelling From Kuala Pembuang to PT Sarana Titian Permata

All Team

All Team

All Team


ASSESSMENT REPORT


09.05.2012 08.00-12.00

12.00-14.00

09.05.2012 08.00-12.00

12.00-14.00

Documentation Review e.g. Responsible consideration of employees and of individuals and communities affected by growers and mills (6.2;6.3); Responsible development of new plantings (7.5;7.6) Use of appropriate best practices by growers and millers (4.3; 4.4) in Estate Commitment to transparency (1.1;1.2) Compliance with applicable laws and regulations (2.4) Responsible consideration of employees and of individuals and communities affected by growers and mills (6.1) Use of appropriate best practices by growers and millers (4.7; 4.8) in Mill and Estate Environmental responsibility and conservation of natural resources and biodiversity (5.1), Responsible development of new plantings (7.1) Responsible consideration of employees and of individuals and communities affected by growers and mills (6.4; 6.5) Lunch/Pray

NM

MM/MES

HRI

MES/MM

NM

HRI

14.00-17.00

14.00-17.00

Documentation Review e.g. Environmental responsibility and conservation of natural resources and biodiversity (5.2), Responsible development of new plantings (7.3) Use of appropriate best practices by growers and millers (4.5; 4.6) Environmental responsibility and conservation of natural resources and biodiversity (5.3; 5.5) Responsible development of new plantings (7.7) Responsible consideration of employees and of individuals and communities affected by growers and mills (6.6; 6.7) Lunch/Pray Responsible consideration of employees and of individuals and communities affected by growers and mills (6.10; 6.11) Commitment to continuous improvement in key areas of activity (8.1) Environmental responsibility and conservation of natural resources and biodiversity (5.4;5.6) Use of appropriate best practices by growers and millers (4.5; 4.6)

NM

MES

MM

HRI

NM

MM

MES

HRI


ASSESSMENT REPORT


Responsible consideration of employees and of individuals and communities affected by growers and mills (6.8; 6.9)

10.05.2012

08.00-12.00

12.00-13.30

13.30-17.00

10.05.2012

08.00-12.00

12.00-13.30

13.30-17.00

Site Tour Operational control of PT Sarana Titian Permata (4.1; 4.2; 4.3; 4.4; 4.6; 4.7; 4.8; 5.2; 5.5; 6.1; 6.2; 6.3; 6.4; 6.5; 6.6; 6.7; 6.8; 6.9; 6.9; 6.10; 6.11): Estate workshop, warehouse, safety (EPR), manuring, spraying, harvesting, nursery, Land Preparation, land application, Water and Land Conservation etc. HCV area, Stakeholder meeting/interview at village A, B, C, etc. Estate workshop, warehouse, safety (EPR) etc. Lunch/Pray Mill of PT Sarana Titian Permata (4.1;4.4;4.7; 5.3; 5.4;5.6): weighting of fresh fruit bunch (FFB), grading areas, loading ramp, sterilizer, clarifier, pressing areas, boilers, CPO storage, drainages, safety (EPR), liquid waste pond, workshop, and warehouse.

MES

NM/HRI

MM

11.05.2012

08.00-12.00

12.00-14.00

14.00-17.00

11.05.2012

08.00-12.00

12.00-14.00

14.00-17.00

Preparing CAR Lunch/Pray Closing Meeting at Estate Office

ALL TEAM

12.05.2012

08.00-11.00

12.05.2012

08.00-11.00

Travelling to Jakarta

ALL TEAM


ASSESSMENT REPORT


Annex 5. Glossary

EIA : Environmental Impact Analysis

PPE : Personal Protective Equipment

B3 : Hazardous Waste

BAPEDALDA : Regional Environmental Impact Management Agency

BLH : Environmental Affairs Agency

BOD : Biological Oxygen Demand

BPN : National Land Agency

BSS : Block Spraying System

CITES : Convention On International Trade Endanger Species

COD : Chemical Oxygen Demand

CPO : Crude Palm Oil

CSR/CD : Corporate Social Responsibility/ Community Development

FFB : Fresh Fruit Bunches

FIRST AID : First Aid

HCV/HCV : High Conservation Value

HGU : Land Use Rights

HIRAC : Hazard Identification Risk Assessment Control

IPM : Integrated Pest Management

JAMSOSTEK : Social Security insurance for Workers

OHS : Occupational Health & Safety

LC : Land Clearing

NGO : Non-Governmental Organization

P2K3 : Committee for Occupational Health and Safety

PK : Palm Kernel

POM : Palm Oil Mill

POME : Palm Oil Mill Effluent

RKL : Environmental Management Plan

RPL : Environmental Monitoring Plan

RSPO P&C : Roundtable on Sustainable Palm Oil Principle and Criterion

S1 : Surveillance 1

SOP : Standard Operating Procedures

STP : Sarana Titian Permata

ST1 : Stage 1

ST2 : Stage 2 (Main Assessment)


ASSESSMENT REPORT


UMR : Regional Minimum Wage

UU : Laws

WWTP : Waste Water Treatment Point

[ ]Stage 1 Stage2 [ ] - RSPO...Prepared by Mutuagung Lestari for Sarana Titian Permata 2.0...

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